Federal Reserve Bulletin, 1979-05
M A Y 1979 F E D E R A L R E S E R V E BULLETIN D o m estic F in an cial D e v e lo p m e n ts in th e F irst Q u a rte r o f 1 9 7 9 S u rv e y o f T im e an d S av in g s D e p o sits, Ja n u a ry 1 9 7 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United Statesj and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 for 12 months. The Bulletin may be obtained from the Division of Support Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
VOLUM E 65 □ NUMBER 5 □ M AY 1979 F E D E R A L R E S E R V E BULLETIN B o a rd o f G o v ern o rs o f th e F ed eral R e serv e S y stem W a sh in g to n , D .C . PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman Michael J. Prell, Staff Director The Federal Reserve Bulletin is issued monthly under the direction of the statt publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Table of Contents 377 Domestic Financial Developments Electronic Fund Transfer (EFT) Act, in in the First Q uarter of 1979 cluding a recommendation against chang ing the effective date of the act to Sep The quarterly report to the Congress states tember 10, 1979, from May 10, 1980; that, although the monetary aggregates Mrs. Teeters also expresses the Board’s were quite weak in the first quarter, the concern about some of the substantive Federal Reserve maintained the firmer provisions of the current EFT Act and the stance in money markets that it had Board’s belief that the EFT and Truth in adopted in the closing months of 1978. Lending Acts should be amended to pro vide a single set of rules to govern credit 387 Survey of Time and Savings and electronic transactions except when Deposits a t Commercial Banks, policy considerations may dictate different January 1979 treatment, before the Subcommittee on Total time and savings deposits at insured Consumer Affairs of the House Committee commercial banks expanded 3 percent on Banking, Finance and Urban Affairs, during the most recent survey period. May 1, 1979. 403 Governor J. Charles Partee discusses the 393 Staff Studies new savings instruments proposed by the “Innovations in Bank Loan Contracting: financial regulatory agencies (including Recent Evidence” examines the relation the bonus savings account plan, which ship between the nominal interest rate would authorize the payment of an extra charged on loans and other elements of 1/2 percentage point in interest on the the loan agreement. minimum balance held in a savings ac count for one year or more; the rising-rate 395 Industrial Production certificate, which would provide deposi tors with an instrument whose yield grad Output declined an estimated 1.0 percent ually increases over time; and the fivein April. year, floating-ceiling certificate, which would provide a market-oriented rate of 396 Statem ents to Congress return to small savers); in light of these Governor Henry C. Wallich discusses the proposals, Governor Partee offers the role of U.S. banks in offshore financial Board’s view that the Congress should centers and describes how the Federal Re reconsider the present ceiling rate structure serve monitors their activities in such cen with a view to its simplification, before ters by using information from examina the Subcommittee on Financial Institutions tion reports and financial statements, be Supervision, Regulation and Insurance of fore the Subcommittee on Oversight of the the House Committee on Banking, Fi House Committee on Ways and Means, nance and Urban Affairs, May 7, 1979. April 25, 1979. 406 Announcements 399 Governor Nancy H. Teeters suggests changes in H.R. 3552, a bill to amend the Amendment to Regulation B to clarify the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
definition of creditor. (See Law Depart appeared to be significantly above or ment.) below the midpoints of the indicated ranges, the objective for the funds rate was Proposed restructuring of reserve require to be raised or lowered in an orderly ments; proposed application of specific fashion within a range of 93A to IOV2 rules of Regulation B to four practices of percent. It was also agreed that in assess creditors using credit-scoring systems; ing the behavior of the aggregates, the proposed changes in Federal Reserve Manager should give approximately equal check processing of checklike payment weight to the behavior of M-l and M-2. instruments at mutual savings banks and savings and loans; proposed completion of 422 Law Departm ent rules needed to carry out provisions of the Electronic Fund Transfer Act. Amendments to Regulations B and O, various rules and bank holding company Revised statement by state and federal and bank merger orders, and pending bank supervisors on classification of bank cases. assets and appraisal of securities in bank examinations. Revision of data for assets and liabilities Al Financial and Business Statistics of large commercial banks. A3 Domestic Financial Statistics Change in Board staff. A46 Domestic Nonfinancial Statistics A54 International Statistics Admission of two state banks to member ship in the Federal Reserve System. A69 Guide to Tabular Presentation and Statistical Releases 409 Record of Policy Actions of the Federal Open M arket Committee A70 Board of Governors and Staff At the meeting on March 20, 1979, the Committee decided that ranges of toler A ll Open Market Committee and Staff; ance for the annual rates of growth in M-l Advisory Councils and M-2 over the March-April period should be 4 to 8 percent and 3 Vi to IV2 A73 Federal Reserve Banks, Branches, percent, respectively. The Manager was and Offices instructed to direct open market operations initially toward maintaining the federal A74 Federal Reserve Board Publications funds rate at about the current level, rep resented by a rate of about 10 percent A76 Index to Statistical Tables or slightly higher. Subsequently, if the two-month growth rates of M-l and M-2 A78 Map of Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Domestic Financial Developments in the First Quarter of 1979 This report, which was sent to the Joint Eco efforts by the public to minimize low-earning nomic Committee of the U.S. Congress, high transactional and precautionary cash balances in lights the important developments in domestic order to take advantage of the historically high financial markets during the winter and early rates of return available on market instruments spring. and on six-month money market certificates. Growth of the major monetary aggregates in The behavior of the monetary aggregates was the first quarter fell below rates consistent with weak in the first quarter, with M-1 (the narrow the long-run ranges set by the Federal Open money supply) contracting and the broader ag Market Committee for the period from the gregates growing only slowly. M-1 fell well fourth quarter of 1978 to the fourth quarter of short of the path suggested by the past relation 1979. Bank credit growth, on the other hand, ship of this measure to changes in income and exceeded the associated FOMC ranges for this interest rates, even after allowance for shifts into measure. In light of the quickening pace of savings accounts accessed by automatic transfer inflation, the strength of final demands in the services (ATS) and into negotiable order of economy in the fourth quarter of 1978, and the withdrawal (NOW) accounts in New York relatively small margin of unutilized labor and State. Meanwhile, outflows of savings deposits capital resources, the Federal Reserve main and small-denomination time deposits subject to tained the firmer stance in money markets that fixed interest rate ceilings accelerated at com it had adopted late last year. The federal funds mercial banks and remained substantial at thrift rate remained virtually unchanged throughout institutions during the first quarter. This overall the first three months of 1979 at just over 10 pattern of weakness appears to reflect unusual percent. Yields on short-dated Treasury bills Interest rates Percent per annum Notes: Monthly averages except for SHORT TERM LONG-TERM Federal Reserve discount rate and Conventional conventional mortgages (based on mortgages quotations for one day each HUD y------ month). Yields: U.S. Treasury Aaa utility bills, market yields on three-month New issue issues; prime commercial paper, dealer offering rates; conventional mortgages, rates on first mortgages Federal ft in primary markets, unweighted and rounded to nearest 5 basis U.S. government points, from Department of Hous ing and Urban Development; Aaa utility bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s In State and local vestors Service and adjusted to Aaa government basis; U.S. government bonds, market yields adjusted to 20-year constant maturity by U.S. Treas ury; state and local government bonds (20 issues, mixed quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
378 Federal Reserve Bulletin □ May 1979 Changes in selected monetary aggregates1 Seasonally adjusted annual rate of change, in percent 1978 1979 Item 1976 1977 1978 Ql Q2 Q3 Q4 Ql Member bank reserves2 Total .......................................................... .6 5.3 6.6 8.9 6.2 8.6 2.3 -2.9 Nonborrowed ............................................ .8 3.0 6.7 14.5 .6 6.6 4.6 -3.3 Concepts of money3 M-l ............................................................ 5.8 7.9 7.3 6.6 9.2 8.1 4.4 -2.4 M-2 ............................................................ 10.9 9.8 8.5 7.0 8.4 9.9 7.7 1.6 M-3 ............................................................ 12.7 11.7 9.4 8.1 8.4 10.4 9.3 4.6 M-4 ............................................................ 7.1 10.1 10.5 10.2 10.6 10.1 9.4 4.4 M-5 ............................................................ 10.2 11.7 10.5 10.0 9.8 10.5 10.2 6.1 Time and savings deposits at commercial banks—Total (excluding large negotiable CDs) .................................................. 15.0 11.2 9.4 7.2 7.9 11.1 10.2 4.4 Savings ....................................................... 25.0 11.1 1.8 2.0 3.8 2.3 -.9 -10.2 Other time ................................................ 7.5 11.4 16.1 11.7 11.4 18.5 19.2 15.9 Small time plus total savings4 ............ 19.2 10.5 5.6. 3.1 6.2 6.3 6.1 2.1 Deposits at thrift institutions5 ............ 15.6 14.5 10.6 9.7 8.5 11.1 11.6 8.8 Memo (change in billions of dollars, seasonally adjusted) Large negotiable CDs at large banks ............................................ -19.0 8.0 23.1 8.4 6.6 2.6 5.5 7.0 All other large time deposits6 ............ -.8 10.8 22.8 5.4 3.7 7.1 6.6 3.6 Small time deposits ................................ 16.4 14.5 17.3 1.8 3.8 5.1 6.6 7.8 Nondeposit sources of funds7 ............ 14.8 12.3 15.9 5.2 .8 3.2 6.7 8.7 1. Changes are calculated from the average amounts outstanding in each quarter. 2. Annual rates of change in reserve measures have been adjusted for changes in reserve requirements. 3. M-l is currency plus private demand deposits adjusted. M-2 is M-l plus bank time and savings deposits other than large negotiable CDs. M-3 is M-2 plus deposits at mutual savings banks and savings and loan associations and credit union shares. M-4 is M-2 plus large negotiable CDs. M-5 is M-3 plus large negotiable CDs. 4. Interest-bearing deposits subject to Regulation Q. 5. Savings and loan associations, mutual savings banks, and credit unions. 6. Total large time deposits less negotiable CDs at weekly reporting banks. 7. Nondeposit sources of funds include borrowings by commercial banks from other than commercial banks in the form of federal funds purchased, securities sold under agreements to repurchase, and other liabilities to own foreign branches (Eurodollar borrowings), loans sold to affiliates, loan repurchase agreements, borrowings from Federal Reserve Banks, and other minor items. continued to move upward in the first quarter— Long-term bond yields edged up approxi although much less sharply than in other recent mately 10 basis points during the first quarter quarters—reflecting in part sales of such securi and rose an additional 25 basis points in April, ties by foreign central banks as the dollar as the worsening performance of the major price strengthened on foreign exchange markets. indexes evidently led to some increase in ex Many private short-term rates, by contrast, de pected inflation rates. An increase in stock clined somewhat as a result of substantial pri prices in the first quarter accompanied corporate vate capital inflows from abroad along with the reports of higher profits and dividends following market’s reaction to the stability of the federal strong growth of earnings in the fourth quarter. funds rate and to information suggesting con Mortgage rates rose somewhat over the quarter, tinued sluggishness of the monetary aggregates apparently reflecting in part greater caution by as well as a slowing in economic growth. In thrift institutions in making mortgage loan late April, however, when the monetary aggre commitments; deposit inflows recently have di gates—particularly M-l—rebounded strongly, minished, in part because of a reduction in the the federal funds rate moved up about an eighth interest rate permitted to be paid on money to a quarter of a percentage point and most other market certificates. short-term market rates showed similar in Funds raised in U.S. credit markets by the creases. nonfinancial sectors declined in the first quarter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Domestic Financial Developments Ql 1979 379 to a rate well below that of the last two years. Changes in income velocity of M-l and M-2 Part of this decline reflected a reduction in borrowing by foreigners as dollar-denominated liabilities became less attractive with the strengthening of the currency’s performance in international markets. In addition, the issuance of federal debt was substantially reduced, and the growth in household mortgage and consumer debt slowed. Net state and local borrowing was about unchanged at the low pace of the previous quarter. Nonfinancial businesses, however, stepped up their borrowing—primarily at com mercial banks—as spending on inventories and plant and equipment increased more rapidly than flows of internal funds. M onetary A ggregates and Bank Credit M-l contracted at an annual rate of 2V* percent in the first quarter, extending a period of flatness Seasonally adjusted annual rates. Money stock data are that began early last fall. The sluggishness of quarterly averages. the narrow money stock reflected in part shifts from demand accounts into ATS savings depos its nationwide and NOW accounts in New York adopt more intensive cash management tech State, which are estimated to have reduced niques. The sharp deceleration of M-l exceeded growth in M-l in the first quarter by about 23A the slowdown in growth of nominal gross na percentage points. First authorized in No tional product; accordingly, growth in the ve vember, such accounts grew $4^ billion in the locity of M-l picked up to an annual rate of first three months of the year (quarterly average 13 percent—the largest quarterly advance of basis), with about 60 percent of the funds esti velocity in more than two and a half decades. mated to have come from demand deposits. The rate of expansion in M-2 also slowed Even if an adjustment were made for the markedly in the first quarter, due to a deceler effects of such shifts, the stock of M-l would ation in its interest-bearing component as well have remained almost unchanged in the first as to the decline in M-1. The pattern of deposit quarter. The performance of M-l partly reflects flows among different types of interest-bearing the normal lagged adjustment of money demand instruments varied considerably, however, to the very rapid rise in short-term market inter owing to large differences between interest rates est rates late last year. However, M-l fell fur fixed by regulation and market rates of return. ther below the path suggested by the historical The spread between yields on short-term Treas relationship among the money stock, income, ury bills and the maximum allowable rate pay and short-term interest rates. This second con able on savings deposits widened another 1/2 secutive quarter of substantial shortfall appears of a percentage point in March to a near-record to have been related to greater-than-usual efforts 5Vz percentage points. Reflecting the size and to economize on non-interest-bearing assets, duration of this spread, savings deposits at especially on the part of smaller businesses and commercial banks declined at an annual rate of of households. It is likely that the high level IOV4 percent in the first quarter, despite the of interest rates and recent regulatory changes substantial inflows to ATS and New York NOW have induced businesses and households to accounts. Similarly, small-denomination time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
380 Federal Reserve Bulletin □ May 1979 Treasury yield curves and deposit rate ceilings of these funds rose almost $7 billion, not sea sonally adjusted, from December to March, well over twice the increase of the previous quarter. At mutual savings banks and savings and loan institutions, deposit expansion slowed some what in the first quarter, even with brisk net issuance of MMCs. At credit unions, where is suance of MMCs has been very limited, de posits were almost flat in the first quarter, the first time in more than 20 years that this financial intermediary has failed to show meaningful de posit growth. With expansion in all its major components slowing, growth in M-3 decelerated in the first quarter to an annual rate of AVi percent, about half its growth last year. Credit at commercial banks expanded more rapidly on average in the first quarter as banks 0 1 2 3 4 5 6 7 8 reversed their recent policy of liquidating U.S. ____________Years to maturity____________________ government securities and increased net acqui ♦Maximum yield on money market time deposits at com sitions of other securities. Loan growth contin mercial banks and thrift institutions for March 28, 1979, ued at a moderate pace, bolstered by a surge compounded semiannually. Data reflect annual effective yields. Ceiling rates are yields in business borrowing at banks as expansion in derived from continuous compounding of the nominal ceiling real estate and consumer loans slowed some rates. Market yield data are on an investment yield basis. what. deposits subject to fixed-rate ceilings declined Components of Major categories of for the third consecutive quarter. However, the bank credit bank loans issuance of six-month money market certificates Change, billions of dollars (MMCs), the ceiling yield on which is deter TREASURY SECURITIES BUSINESS mined weekly by the six-month Treasury bill 4 12 auction rate, continued at a rapid pace in the H--- Q 8 u quarter. 4 a 4 By the end of March, outstanding MMCs had 0 8 grown to $131.5 billion, an increase of $54.9 REAL ESTATE OTHER SECURITIES 12 billion in the first quarter, and accounted for n 4 8 10 percent of small-denomination time and sav n n n .l I 0 4 ings deposits at commercial banks and more TOTAL LOANS : 32 m0 than 15 percent of deposits at thrift institutions. CONSUMER Effective March 15, regulations governing this 12 ;24 instrument were changed, and its attractive 8 ness—particularly to customers of thrift insti 4 16 tutions—was reduced somewhat. The new reg 0 ulations prohibited compounding of interest NONBANK FINANCIAL 4 and, during periods when bill rates exceed 9 + 0 percent, eliminated the differential between the ceiling rates for commercial banks and thrift Ql Q2 Q3 Q4 Ql Ql Q2 Q3 Q4 1 Ql 1978 1979 1978 1979 institutions. The rapid growth in MMCs has been accompanied by a record expansion of Seasonally adjusted. Total loans and business loans adjusted for transfer between banks and their holding companies, affili money market mutual funds. The total assets ates, subsidiaries, or foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Domestic Financial Developments Ql 1979 381 With reduced inflows of deposits subject to Business loans and shortrate ceilings, banks financed a large part of their and intermediate-term business credit credit expansion by acquiring $8% billion in Seasonally adjusted annual rate of change, in percent nondeposit sources of funds, largely through Business loans security repurchase agreements, federal funds at banks1 Total short- and purchased from nonbank sources, and Eurodol Period Excluding intermediate-term lar borrowings. In addition, banks acquired bank holdings business credit2 Total of bankers substantial funds by liquidating claims on their acceptances foreign branches and through increases in 1975—Ql ... -5.2 -7.4 -4.2 Treasury note balances held at banks. These Q2 ... -8.7 -9.0 -9.1 Q3 ... -2.4 -2.9 -.7 balances—acquired under the tax-and-loan ac Q4 ... -2.3 -3.7 count program that began last November 2— 1976—Ql ... -6.9 -6.6 -1.2 rose to an average of $10V2 billion during the 0 Q 2 3 . . . . . . 5 1 . . 3 6 2 2. . 1 8 5 2 . . 7 5 first quarter, compared with an average of just Q4 ... 10.6 9.7 12.8 over $6 billion during November and December 1977—Ql ... 11.2 13.3 14.6 Q2 ... 12.8 12.9 15.9 of last year. As banks increased their use of Q3 ... 11.2 10.4 10.7 these sources of funds, they issued a smaller Q4 ... 11.7 12.6 16.1 volume of large certificates of deposit, likely 1978—Ql ... 15.3 16.8 15.1 Q2 ... 17.4 17.9 16.8 due to an increase in the relative cost of the Q3 ... 11.4 11.4 10.5 latter funds. Q4 ... 9.3 11.3 17.0 1979—Ql ... 21.8 21.0 19.9 1. Based on data for last Wednesday of month, adjusted B usiness Finance for outstanding amounts of loans sold to affiliates. 2. Short- and intermediate-term business credit is business Boosted by a pickup in inventory accumulation, loans at commercial banks excluding bank holdings of bankers capital expenditures expanded more rapidly than acceptances plus nonfinancial company commercial paper and finance company loans to businesses measured from end of did internally generated funds of nonfinancial quarter to end of quarter. corporations in the first quarter. To meet the resulting rise in financing requirements, these firms increased considerably their reliance on short-term financing has been reflected in a short-term credit and continued to make sub steady rise since mid-1976 in the ratio of short stantial use of commercial mortgages as a source term to long-term debt outstanding for nonfi of long-term credit. Their net offerings of bonds nancial corporations. At the end of the first and stocks declined. The increasing use of quarter, this ratio once again stood near its 1974 peak of more than 26 percent. Much of the growth in short-term credit in Nonfinancial corporations the first quarter of 1979 was due to an acceler Ratio of short-term to total debt outstanding ation in the pace of business borrowing from Percent commercial banks; data from large banks indi cate that borrowing by public utilities and trade concerns was particularly heavy. The growth in bank loans to business more than offset the reduced—though still substantial—rate of in crease of commercial paper oustanding. Despite the increased demand for business credit, inter est rates on private short-term credit instruments moved downward in the first quarter, in part due to an increase in the supply of short-term private capital from abroad. Although the prime Based on flow of funds data. 1979 Ql estimated. Seasonally adjusted. rate at the majority of banks remained un- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
382 Federal Reserve Bulletin □ May 1979 changed over this period at 11% percent (after Yields on corporate bonds edged up some a rise of 2 percentage points in the fourth what further during the first quarter, following quarter), the cost of credit at money center substantial increases during the last three banks appears to have been affected by the months of 1978. The index of yields on newly downward movement of short-term market issued, Aaa-rated utility bonds increased about rates. A few banks posted reductions of 1/4 of 5 to 10 basis points to reach 9.6 at the end of a percentage point in their prime rates in early the quarter. In April the utility bond index February; information as of midquarter indicates jumped an additional 1/4 of a percentage point, some easing in nonprice lending terms by large although it still remained below its 1974 high. banks, including less restrictive qualifications Since the first of the year, all major indexes for the prime rate and some reduction in com- of stock prices have risen substantially. By late pensating-balancerequirements. Moreover, con April, the New York Stock Exchange composite sistent with these reports, survey data from index had increased approximately 7 percent. money center banks as of early February showed The composite index of the American Stock a substantial increase in loans made at rates Exchange and the over-the-counter composite below prime. index compiled by the National Association of Nonfinancial corporations, in particular highly Securities Dealers both reached record highs in rated industrial firms, reduced their public of late April, increasing 20 and 14 percent respec ferings of bonds in the first quarter. The high tively. Although stock prices were generally level of long-term rates apparently discouraged higher for firms in most industry classes, much the issuance of call-protected bonds by many of the strength in the indexes was related to the of these firms. Nonetheless, the volume of pri- anticipated effect of rising oil prices on the vate-placement takedowns, which serve pre earnings of energy-related firms. The relatively dominantly as a source of credit for small or larger increase in the American Stock Exchange lower-rated firms, is estimated to have been well composite index, for example, reflects in part above its pace in the fourth quarter. the comparatively high proportion of smaller Public offerings of bonds by financial con domestic and Canadian oil and gas exploration cerns increased in the first quarter, due mainly companies listed on this exchange, as well as to a rise in issues of finance companies. These companies engaged in the extraction of primary companies used much of the proceeds of the metals. offerings to reduce outstanding commercial In spite of the increase in stock prices, stock paper and other short-term indebtedness, which offerings contracted substantially during the had grown sharply in recent quarters as the quarter. Public utilities accounted for most of companies expanded their business- and con the new issues. The reluctance of industrial sumer-lending activities. corporations to issue new shares was related to the relatively high cost of equity capital. Con ventional measures of price-earnings multiples Gross offerings of new security issues have fallen to levels only slightly above those Seasonally adjusted annual rates, in billions of dollars recorded in late 1974, their lowest point in the postwar era. 1978 1979 Type of security Ql Q2 Q3 Q4e Qle Corporate, total ......... 42 48 53 42 42 Government Finance Bonds ....................... 35 37 41 30 35 Publicly offered 18 20 24 18 16 Gross bond sales by state and local governments Privately placed 17 17 17 12 19 Stocks ..................... 7 11 12 12 7 continued to decline significantly during the first Foreign ......................... 5 12 6 5 4 quarter of 1979. As in the fourth quarter of 1978, there were almost no advance refundings State and local government ............ 44 50 53 47 40 of outstanding issues, given the high level of e Estimated. interest rates and the Treasury’s more restrictive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Domestic Financial Developments Ql 1979 383 Federal government borrowing and cash balance Quarterly totals, not seasonally adjusted, in billions of dollars 1977 1978 1979 Item Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Treasury financing Budget surplus, or deficit (—) .................................. 8.6 -12.2 -28.8 -25.8 14.0 -8.1 —23.8 -20.4 Ott-budget deficit1 ......................................................... .1 -4.9 -1.3 -3.7 -2.2 -3.1 -.1 -3.0 Net cash borrowings, or repayments (—) .............. -1.1 19.54 20.7 20.8 2.5 15.1 15.2 10.6 Other means of financing2 ......................................... -.4 .4 2.6 2.8 -3.2 1.0 2.6 4.2 Change in cash balance .............................................. 7.2 2.84 -6.8 -5.9 11.1 4.9 -6.1 -8.6 Federally sponsored credit agencies, net cash borrowings3 .................................................... 3.0 1.8 2.0 4.5 6.5 6.1 5.2 7.4 1. Includes outlays of the Pension Benefit Guaranty Cor 3. Includes debt of the Federal Home Loan Mortgage Cor poration, Postal Service Fund, Rural Electrification and Tele poration, Federal Home Loan Banks, Federal Land Banks, phone Revolving Fund, Rural Telephone Bank, Housing for Federal Intermediate Credit Banks, Banks for Cooperatives, the Elderly or Handicapped Fund, and Federal Financing Bank. and Federal National Mortgage Association (including discount All data have been adjusted to reflect the return of the Export- notes and securities guaranteed by the Government National Import Bank to the unified budget. Mortgage Association). 2. Checks issued less checks paid, accrued items, and other 4. Includes $2.5 billion of borrowing from the Federal transactions. Reserve on September 30, which was repaid October 4 fol lowing enactment of a new debt ceiling bill. rules governing these operations. Gross offer both marketable and nonmarketable. To a lesser ings would have been even smaller without a extent, the decline in nonmarketable debt out substantial increase in sales of mortgage revenue standing was caused by a reduction in holdings bonds, much of the proceeds of which were used of savings notes and bonds—the first quarterly to finance purchases of single-family housing at decline since 1970—and a small paydown in below-market interest rates. securities issued to state and local governments In contrast to the slight increase in long-term for earlier advance refundings. As a result, the corporate bond yields, the Bond Buyer index Treasury’s borrowing in the first quarter was of yields on general obligation bonds declined accomplished through sales of marketable se appreciably over the first quarter. As in 1978, curities combined with the sale of a special the demand for tax-exempt bonds by property- nonmarketable issue to the Federal Reserve. casualty insurance companies was reported to This special issue, necessitated by a congres have been especially strong. Yields on mortgage sional delay in raising the national debt ceiling revenue bonds rose, however, in part because at the end of the quarter, was repaid shortly of the heavy volume of such issues. thereafter. The delay also caused postponements Treasury borrowing during the first quarter of Treasury debt operations after mid-March. totaled about $11 billion (not seasonally ad Some downward pressure on short-term Treas justed), compared with $15 billion in each of ury yields resulted from the cancellation of these the last two quarters of 1978. Even though the Treasury auctions, but the situation was quickly combined federal deficit—which includes the reversed after passage of the new debt ceiling net outlays of off-budget agencies—remained legislation on April 2. large, a substantial portion of the deficit was Net borrowing by federally sponsored credit financed by drawing down Treasury cash bal agencies reached a record $7.4 billion in the ances. first quarter, based on offerings not seasonally In sharp contrast with earlier quarters, lenders adjusted. This increase reflected higher levels generally reduced their holdings of nonmarket of borrowing by both the farm credit and the able Treasury obligations during the first quar housing agencies: $2.8 billion for the Farm ter. As the dollar strengthened in international Credit System and $4.6 billion for the Federal exchange markets, foreign central banks were National Mortgage Association (FNMA) and the substantial net sellers of Treasury securities, Federal Home Loan Banks (FHLBs). Purchases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
384 Federal Reserve Bulletin □ May 1979 of mortgages by FNMA accounted for about savings and loans chose not to draw down their two-thirds of the money raised by the housing liquidity to help sustain their mortgage lending. agencies. The FHLBs increased their borrowing Although their accumulation of liquid assets largely to improve their liquidity. Advances to slowed, average liquidity—measured as the savings and loans in the first quarter decreased ratio of cash and liquid assets to the sum of much less than the normal seasonal decline for short-term borrowings and deposits—remained this period. around the 9 percent level that had prevailed Movements in interest rates on Treasury se during the fourth quarter. Savings and loans curities were mixed over the first quarter. Yields may have been reluctant to commit high-cost, on shorter-dated bills rose sharply relative to short-term funds to long-term mortgages in the those on short-term private securities, largely face of uncertainty about the future course of because of sizable sales of bills by foreign interest rates and deposit flows. At the same central banks. Those on long-term government time, however, some reduction in mortgage bonds edged up slightly over the quarter, in lending in the first quarter may have been due concert with rates paid on long-term corporate to the effects on housing demand of severe bonds and on new commitments for home weather and record-high mortgage interest rates; mortgages in the primary market. In late April, in some states, the restrictive effect of usury interest rates on both short- and long-term ceilings on the supply of conventional home Treasury issues increased along with the rise in mortgage credit may have played a role. More private market rates. over, originations of home mortgages insured by the Federal Housing Administration or guaranteed by the Veterans Administration M ortgage and Consumer Credit reportedly were hindered by the below-market Net mortgage lending dropped substantially interest rate ceiling of 9 Vz percent on such from its record level in the fourth quarter of government-underwritten loans. Toward late 1978. Savings and loan associations and com mercial banks greatly reduced their net lending Net change in mortgage debt outstanding in mortgage markets; most other major sources of mortgage credit continued to lend at roughly Seasonally adjusted annual rates, in billions of dollars the same pace as during the previous quarter. 1978 1979 Also, savings and loans in many areas decreased Mortgage debt substantially their oustanding commitments to Qlr Q2r Q3r Q4r Qlc acquire mortgages. Total ................................ 133 146 154 161 142 The relatively large decline in net mortgage Type of debt Residential ..................... 105 114 116 125 113 lending at savings and loan associations was Other1 .............................. 28 32 38 36 29 partly a response to the reduced pace of deposit Type of holder inflows during the two preceding quarters. De Commercial banks ....... 27 36 39 37 28 Savings and loans ......... 53 52 48 52 43 posit growth has slowed despite comparatively Mutual savings banks .. 7 6 7 6 6 Life insurance high yields on six-month money market certifi companies .................. 6 9 10 12 10 cates, in part because of the competition pro FNMA and GNMA .... 5 12 9 9 11 Other2 .............................. 35 31 41 45 44 vided by alternative short-term investment out lets such as money market mutual funds. In the 1. Includes commercial and other nonresidential as well as farm properties. first quarter, the slowing in deposit growth was 2. Includes mortgage pools backing securities guaranteed offset only partially by the continued high rate by the Government National Mortgage Association, Federal Home Loan Mortgage Corporation, or Farmers Home Admin of borrowing (seasonally adjusted) by savings istration, some of which may have been purchased by the and loans from FHLBs. Moreover, in contrast institutions shown separately. e Partially estimated. with past periods of reduced mortgage activity, r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Domestic Financial Developments Ql 1979 385 April, the Department of Housing and Urban mortgages have moved to relax or abolish the Development and the Veterans Administration ceilings, thereby relieving shortages of mort raised the maximum rate to 10 percent. gage money in some areas. The average of interest rates on new commit The growth of outstanding consumer install ments for 80 percent, 30-year conventional ment credit averaged 15 percent at a seasonally home mortgages at savings and loan associa adjusted annual rate for the first quarter, down tions has risen about 20 basis points since the markedly from 20 percent for 1978. The effect beginning of 1979, to a record 10.6 percent in of unusually harsh weather on consumer spend early May. A number of states with ceiling rates ing early in the quarter may have been partly of 10 percent or less on conventional home responsible for the drop. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
387 Survey of Time and Savings Deposits at Commercial Banks, January 1979 David M. Lefever of the Board’s Division of nomination time deposits, which are not subject Research and Statistics prepared this article. to interest rate ceilings, had been $12V4 billion. The change in the composition of savings and Total time and savings deposits at insured com small-denomination time deposits reflected fur mercial banks, not adjusted for seasonal varia ther increases in market interest rates above tion, expanded 3 percent during the period from fixed regulatory ceilings and continued rapid October 26, 1978, to January 31, 1979, slightly inflows of the six-month money market certifi less than the increase of 3 Va. percent over the cates (MMCs); the variable maximum legal rate preceding survey quarter.1 Net inflows of sav on MMCs, which exceeded the allowable rate ings deposits and interest-bearing, small-de on all deposits subject to fixed-rate ceilings nomination time deposits (less than $100,000) throughout the period, contributed to a net totaled more than $2Vi billion during the Octo- growth of MMCs totaling $18 billion. Savings ber-January period; during the July-October and small-denomination time deposits excluding survey period these deposits grew $6Vi billion. MMCs fell $15% billion, compared with a de To help finance expansion of bank credit when crease of $5 Vi billion during the previous survey flows into savings and small-denomination time quarter. Although MMCs drew substantially deposits were moderating, banks raised $16V2 from other types of bank deposits, they likely billion through the issuance of large-denomi attracted some funds that otherwise would have nation ($100,000 or more) time deposits. In the been invested in market instruments. preceding survey period, net sales of large-de- 1. Surveys of time and savings deposits (STSD) at Savings D eposits all member banks were conducted by the Board of During the October-January period, commercial Governors in late 1965, in early 1966, and quarterly in 1967. In January and July 1967 the surveys also banks experienced the largest quarterly net out included data for all insured nonmember banks collected flow of savings deposits, not seasonally ad by the Federal Deposit Insurance Corporation (FDIC). justed, since the first of these surveys in late Since the beginning of 1968 the Board of Governors and the FDIC have conducted the joint quarterly surveys 1965. The decline in savings accounts of more to provide estimates for all insured commercial banks than $7Va billion followed an increase of $1% based on a probability sample of banks. The results of billion during the July-October period and a all earlier surveys have appeared in previous issues of the Federal Reserve Bulletin from 1966 to 1978, decline of $lVi billion during the April-July most recently February 1979. period. The decrease of savings deposits re The current sample—designed to provide estimates flected continued high rates on alternative in of the composition of deposits—includes about 560 insured commercial banks. For details of the statistical struments, such as Treasury bills, shares of methodology, see “Survey of Time and Savings De money market mutual funds, and MMCs. By posits, July 1976,” in Bulletin, vol. 63 (December the end of January, the maximum allowable 1976), pp. 986-1000. Detailed data for the current survey (formerly con yield on savings deposits was nearly 4Vi per tained in appendix tables) are available on request from centage points below rates on these alternative Publications Services, Division of Support Services, issues. Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Each of the three major ownership sectors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
388 Federal Reserve Bulletin □ May 1979 reduced their holdings of savings deposits. Ac Small -Denomina tion counts held by individuals and nonprofit organi Time Deposits zations declined $5% billion despite the growth of $5 billion in automatic transfer service ac The outstanding level of interest-earning, counts nationwide and in negotiable order of small-denomination time deposits—consisting withdrawal accounts in New York State. The of all maturity categories, including MMCs, net outflow from accounts issued to individuals individual retirement accounts (IRAs), and during the recent survey period and during the Keogh accounts—rose almost $10 billion, not April-July 1978 survey period were the only seasonally adjusted, during the October-January declines recorded since early 1970. Savings period to more than $190 billion, following an deposits of businesses fell more than $800 mil increase of $5 billion in the previous period. lion, after sluggish growth during the previous The outstanding level of MMCs jumped more five survey quarters; savings accounts of do than $18 billion, compared with an increase of mestic governmental units declined for the third $8V2 billion during the July-October period. straight quarter. The average rate of interest on While most other categories of small-denomi seivings deposits was 4.94 percent, essentially nation time deposits decelerated or declined, unchanged from the previous survey. IRAs and Keogh accounts continued to grow 1. Time and savings deposits held by insured commercial banks on recent survey dates Deposits Number of issuing banks Type of deposit, denomination, Millions of dollars Percentage change and original maturity July 26, Oct. 25, Jan. 31, July 26, Oct. 25, Jan. 31. July 26- Oct. 25- 1978 1978 1979 1978 1978 1979 Oct. 25 Jan. 31 Total time and savings deposits............................. 14,338 14,299 14,269 576,366 595,194 613,147 3.3 3.0 Savings........................................................................ 14,338 14,299 14,269 220,583 222,114 214,791 .7 -3.3 Holder Individuals and nonprofit organizations......... 14,338 14,299 14,269 204,847 205,863 200,193 .5 -2.8 Partnerships and corporations operated for profit (other than commercial banks). .. 9,989 9,857 9,735 10,646 11,293 10,475 6.1 -7.2 Domestic governmental units........................... 8,023 8,285 8,050 4,954 4,842 3,991 -2.3 -17.6 All other................................................................. 1,268 1,228 1,244 137 116 133 -15.2 14.7 Interest-bearing time deposits, less than $100,000............................................................. 14,095 14,008 14,179 175,336 180,373 190,314 2.9 5.5 Holder Domestic governmental units1.......................... 10,873 10,646 10,539 4,006 3,725 3,252 -7.0 -12.7 30 up to 90 days............................................... 4,770 4,903 4,636 918 988 662 7.6 -33.1 90 up to 180 days............................................ 7,961 7,544 7,716 1,166 1,095 1,245 -6.1 13.7 5,539 5,438 4,752 666 620 367 -6.9 -40.9 8,867 8,175 8,379 1,256 1,022 979 -18.7 -4.1 Other than domestic governmental units1. . . 14,092 14,008 14,179 163,178 159,766 151,579 -2.1 -5.1 30 up to 90 days............................................... 6,125 5,510 5,104 5,413 4,385 3,758 -19.0 -14.3 11,700 11,439 11,236 29,392 28,929 25,606 -1.6 -11.5 8,458 8,172 8,321 3,156 3,248 3,350 2.9 3.1 1 up to 2 V4 years............................................. 13,769 13,751 13,765 32,857 31,006 28,349 -5.6 -8.6 12,902 12,822 13,002 18,346 17,475 16,420 -4.7 -6.0 13,044 12,920 13,416 50,850 49,571 48,273 -2.5 -2.6 10,765 10,965 11,470 21,738 22,847 23,071 5.1 1.0 8 years and over.............................................. 6,186 7,790 7,909 1,427 2,306 2,753 61.5 19.4 IRA and Keogh Plan time deposits, 3 years or more.......................................................... 9,364 9,329 10,015 2,770 3,005 3,533 8.5 17.6 Money market certificates, $10,000 or more, exactly 6 months.......................................... 9,102 10,428 12,228 5,381 13,877 31,949 157.9 130.2 Interest-bearing time deposits, $100,000 or more................................................................... 11,531 11,789 11,875 174,048 186,328 202,807 7.1 8.8 Non-interest-bearing time deposits...................... 1,447 1,730 1,604 4,272 4,222 4,379 -1.2 3.7 Less than $100,000............................................... 1,177 1,411 1,254 694 722 658 4.0 -8.9 $100,000 or more................................................. 658 680 745 3,578 3,500 3,721 -2.2 6.3 Club accounts (Christmas savings, vacation, and the like)..................................................... 9,550 9,230 9,193 2,128 2,159 857 1.5 -60.3 1. Excludes all money market certificates, IRAs, and Keogh Plan as issuing banks. However, small amounts of deposits held at banks accounts. that had discontinued issuing certain types of deposits are included in the amounts outstanding. Note. All banks that had either discontinued offering or never Details may not add to totals because of rounding, offered certain types of deposits as of the survey date are not counted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Survey of Time and Savings Deposits 389 2. Small-denomination time and savings deposits held by insured commercial banks on January 31, 1979, compared with previous survey, by type of deposit, by most common rate paid on new deposits in each category, and by size of bank Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) Deposit group, original All banks All banks maturity, and distribu tion of deposits by Less than 100 100 and over Less than 100 100 and over most common rate Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, 1979 1978 1979 1978 1979 1978 1979 1978 1979 1978 1979 1978 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Savings deposits Individuals and nonprofit organizations Issuing banks................... 14,269 14,299 13,160 13,226 1,109 1,073 200,193 205,863 76,208 79,535 123,985 126,328 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less................... 4.3 4.0 4.3 4.1 4.0 2.8 3.2 2.9 3.6 3.7 2.9 2.5 4.01-4.50....................... 6.7 8.3 6.9 8.5 4.3 5.8 5.1 7.0 7.0 8.6 3.9 6.0 4.51-5.00....................... 89.0 87.6 88.8 87.3 91.7 91.4 91.7 90.0 89.3 87.7 93.1 91.5 Paying ceiling rate1.. . 89.0 87.6 88.8 87.3 91.7 91.4 91.7 90.0 89.3 87.7 93.1 91.5 Partnerships and corpora tions Issuing banks.................. 9,735 9,857 8,651 8,801 1,084 1,057 10,475 11,293 3,395 3,523 7,080 7,770 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less................... 1.5 1.4 1.6 1.5 .8 .9 .4 .4 1.0 1.0 .1 .2 4.01-4.50....................... 4.5 4.6 4.8 4.7 2.1 3.4 4.0 3.8 3.6 3.4 4.2 4.0 4.51-5.00....................... 94.0 94.0 93.6 93.8 97.1 95.7 95.6 95.8 95.4 95.5 95.7 95.8 Paying ceiling rate1.. . 93.7 93.7 93.3 93.5 97.1 95.7 95.6 95.7 95.2 95.5 95.7 95.8 Domestic governmental units Issuing banks................... 8,024 8,285 7,250 7,553 774 732 3,989 4,842 2,010 2,659 1,980 2,183 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less................... 2.9 2.3 3.2 2.5 .3 .1 2.1 1.1 4.1 1.8 .2 .2 4.01-4.50....................... 6.2 7.5 6.6 8.1 2.3 1.9 4.7 3.7 7.1 6.1 2.3 .8 4.51-5.00....................... 90.9 90.2 90.2 89.4 97.4 97.9 93.2 95.3 88.9 92.1 97.6 99.1 Paying ceiling rate1.. . 90.6 89.9 89.9 89.1 97.4 97.9 93.1 95.2 88.7 91.9 97.6 99.1 All other Issuing banks................... 1,241 1,228 1,081 1,102 160 126 133 116 43 36 90 80 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 4 4. . 0 0 0 1 - o 4 r . 5 l 0 es .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . 1 1 1 6 2 . . 7 8 (2 3 ) .3 1 7 3 . . 5 9 2. . 1 7 (2 2 ) .6 (2) .2 (2 2 ) .3 ( ( 2 2 ) ) (2 5 ) .1 (2) .2 (2 1 ) .0 4.51-5.00....................... 96.8 80.5 96.7 78.6 97.2 97.4 99.8 97.7 100.0 94.9 99.8 99.0 Paying ceiling rate1.. . 96.8 80.5 96.7 78.6 97.2 97.4 99.8 97.7 100.0 94.9 99.8 99.0 Time deposits less than $100,000 Domestic governmental units 30 up to 90 days Issuing banks.................. 4,610 4,903 3,947 4,229 663 674 658 988 457 685 201 303 Distribution, total.......... 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less................... .2 . 1 (2) (2) 1.3 .8 . 1 .3 (2) (2) .3 .8 4.51-5.00....................... 58.9 58.6 58.9 56.6 59.0 70.8 35.4 47.8 32.6 43.4 41.8 57.7 5.01-5.50....................... 7.9 5.6 7.6 5.9 9.6 3.8 5.1 6.4 5.1 7.9 5.0 3.2 5.51-8.00....................... 33.1 35.7 33.5 37.4 30.2 24.6 59.4 45.5 62.3 48.8 52.9 38.2 Paying ceiling rate1.. . 20.2 11.6 20.8 10.8 16.7 16.4 41.4 15.6 40.3 9.3 43.8 30.0 90 up to 180 days Issuing banks................... 7,715 7,544 6,887 6,712 828 832 1,245 1,094 918 736 327 359 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less................... .1 . 1 (2) (2) .6 .7 .2 .1 (2) (2) .8 .2 4.51-5.00....................... 14.3 11.5 14.8 11.8 10.5 9.1 5.5 5.1 6.7 5.3 2.2 4.7 5.01-5.50....................... 66.9 70.7 66.8 70.9 67.6 69.8 58.1 68.9 54.5 69.3 68.2 68.1 5.51-8.00....................... 18.7 17.6 18.4 17.3 21.3 20.4 36.2 26.0 38.9 25.4 28.7 27.0 Paying ceiling rate1.. . 10.0 3.4 9.9 2.5 11.3 10.3 27.7 7.6 32.2 3.2 15.0 16.7 180 days up to 1 year Issuing banks.................. 4,704 5,415 4,063 4,799 640 616 362 620 208 437 154 183 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 4 4. . 5 5 0 1 - o 5 r . 0 l 0 es .. s .. . . . . . .. . . . . . . .. . . . . .. . . . . . . .. . . . . .. . . . (28).4. (26).8o (28.)8o (27).0. (2 5 ) .5 (2 5 ) .0 (2) .5 (2 1 ) .9 ( (2 2) ) (2) .7 (2 1 ) .2 (2 5 ) .0 5.01-5.50....................... 60.1 67.2 60.1 67.2 60.1 66.7 63.5 63.8 66.1 66.0 60.1 58.6 5.51-8.00....................... 31.6 26.1 31.1 25.8 34.4 28.4 36.0 34.2 33.9 33.3 3&7 36.4 Paying ceiling rate1.. . 11.5 8.6 9.8 7.6 22.0 16.8 20.8 14.5 11.4 7.9 33.5 30.5 1 year and over Issuing banks.................. 8,378 8,171 7,552 7,380 826 791 979 1,020 813 861 167 159 Distribution, total.......... 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less................... 1.2 1.3 1.0 1.0 2.7 4.4 2.4 .6 .1 . 1 13.4 3.2 5.01-5.50....................... 2.6 3.9 2.4 4.0 4.6 3.3 .9 2.0 (2) 1.8 4.8 3.5 5.51-6.00....................... 58.8 58.0 58.4 57.9 62.8 59.7 52.6 55.5 53.8 56.8 46.8 48.0 6.01-8.00....................... 37.4 36.7 38.2 37.2 29.9 32.7 44.1 41.9 46.0 41.3 35.0 45.3 Paying ceiling rate1.. . 4.9 3.7 4.4 3.0 9.2 9.8 10.7 10.8 9.0 8.4 19.0 24.1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
390 Federal Reserve Bulletin □ May 1979 TABLE 2—Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) Deposit group, original All banks All banks maturity, and distribu tion of deposits by Less than 100 100 and over Less than 100 100 and over most common rate Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, 1979 1978 1979 1978 1979 1978 1979 1978 1979 1978 1979 1978 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Time deposits less than $100,000 (cont.) Other than domestic gov ernmental units 30 up to 90 days 5,100 5,510 4,188 4 632 912 877 3,745 4,362 778 909 2,967 3,452 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 1.0 .8 .8 .7 1.6 1.3 1.5 1.3 (2) (2) 1.9 1 7 4.51-5.00....................... 99.0 99.2 99.2 99.3 98.4 98.7 98.5 98.7 100.0 100.0 98.1 98! 3 Paying ceiling rate1.. . 99.0 99.2 99.2 99.3 98.4 98.7 98.5 98.7 100.0 100.0 98.1 98.3 90 up to 180 days 11,236 11,439 10,134 10,384 1,102 1,055 25,606 28,929 10,331 11,543 15,274 17,386 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less................... (2) , .6 (2) .7 .3 (2) (2) (2) (2) (2) (2) (2) 4.51-5.00....................... 5.6 4.6 6.0 4.8 2.4 2.3 3.4 4.7 4.5 4.5 2.7 4.7 5.01-5.50....................... 94.3 94.8 94.0 94.5 97.3 97.7 96.6 95.3 95.5 95.4 97.3 95.3 Paying ceiling rate1.. . 93.6 94.2 93.3 93.9 96.3 97.6 95.1 94.9 95.5 95.4 94.8 94.6 180 days up1 to 1 year Issuing banks.................. 8,292 8,172 7,407 7,294 885 878 3,343 3,238 1,720 1,638 1,622 1,600 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 .5 .6 .5 .5 .9 2.1 .1 .2 (2) (2) .3 . 3 4.51-5.00.................... 4.0 3.9 4.1 4.1 3.5 2.3 1.6 1.4 3.0 2.5 . 1 .3 5.01-5.50....................... 95.5 95.5 95.4 95.4 95.6 95.6 98.3 98.4 97.0 97.4 99.6 99.4 Paying ceiling rate1.. . 95.5 95.5 95.4 95.4 95.6 95.6 98.3 98.4 97.0 97.4 99.6 99.4 1 up to 2 Vi years Issuing banks.................. 13,762 13,751 12,659 12,684 1,102 1,066 28,348 31,004 18,198 19,733 10,150 11,271 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less................... .6 .5 .6 .6 .7 .2 . 1 .2 .2 .2 5.01-5.50....................... 1.9 2.0 2.1 2.2 .3 (2).4 .5 .6 .7 .7 .2 (2). 4 5.51-6.00....................... 97.4 97.4 97.3 97.2 99.0 99.6 99.2 99.3 99.1 99.1 99.6 99.6 Paying ceiling rate1.. . 97.3 97.3 97.3 97.2 97.5 98.2 98.8 99.0 99.1 99.1 98.3 98.8 2x/i up to 4 years Issuing banks.................. 12,967 12,822 11,876 11,767 1,091 1,054 16,414 17,443 9,636 10,235 6,778 7,208 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less................... .9 2.1 .8 2.2 2.5 1.3 .7 1.7 . 1 2.2 1.5 1.0 6.01-6.50....................... 99.1 97.9 99.2 97.8 97.5 98.7 99.3 98.3 99.9 97.8 98.5 99.0 Paying ceiling rate1.. . 98.8 97.7 99.0 97.8 96.8 96.8 99.1 98.0 99.8 97.8 98.2 98.2 4 up to 6 years Issuing banks................... 13,337 12,920 12,256 11,877 1,082 1,043 48,194 49,491 26,755 27,408 21,440 22,082 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 6.50 or less................... .4 1.6 .3 1.7 2.1 .3 .7 .8 (2) 1.2 1.7 .4 6.41-7.00....................... 7.7 10.0 8.0 10.4 4.7 5.3 7.4 7.4 9.9 10.1 4.2 4.0 7.01-7.25....................... 91.8 88.4 91.7 87.9 93.1 94.4 91.9 91.8 90.1 88.7 94.1 95.6 Paying ceiling rate1.. . 91.6 88.2 91.5 87.7 92.4 93.8 91.5 91.4 89.6 88.3 94.0 95.3 6 up to 8 years Issuing banks.................. 11,466 10,965 10,427 9,950 1,039 1,014 23,032 22,793 9,919 10,140 13,113 12,652 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 7.00 or less................... .5 1.5 .3 1.6 2.2 .4 1.1 .5 (2) .6 2.0 .4 7.01-7.25....................... 1.9 3.2 1.7 3.2 3.9 3.7 1.3 2.4 1.0 2.0 1.6 2.8 7.26-7.50....................... 97.6 95.3 98.0 95.2 93.9 95.9 97.5 97.1 99.0 97.4 96.4 96.8 Paying ceiling rate1.. . 97.6 95.3 98.0 95.2 93.9 95.3 97.5 96.9 99.0 97.4 96.4 96.5 8 years and over Issuing banks.................. 7,909 7,790 6,995 6,955 914 835 2,753 2,306 932 739 1,821 1,566 Distribution, total......... 100 100 100 100 100 100 100 100 100 100 100 100 7.25 or less................... 1.4 1.7 .9 1.4 5.2 4.1 6.0 5.1 .3 .2 8.9 7.4 7.26-7.50....................... 4.9 6.3 5.0 6.0 4.7 9.0 12.1 14.9 1.2 3.0 17.7 20.5 7.51-7.75....................... 93.7 92.0 94.1 92.7 90.1 86.9 81.9 80.0 98.5 96.8 73.3 72.1 Paying ceiling rate1.. . 93.2 92.0 93.6 92.7 90.1 86.9 81.5 80.0 97.6 96.8 73.3 72.1 IRA and Keogh Plan time deposits, 3 years or more Issuing banks....................... 10,013 9,329 8,986 8,349 1,027 980 3,522 3,005 1,368 1,174 2,155 1,831 Distribution, total. ............ 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less. ..................... 4.7 3.4 5.0 3.5 2.3 1.8 1.6 1.2 1.1 .9 1.8 1.3 6.01-7.00........................... 3.7 7.0 3.7 7.5 3.1 2.8 1.8 2.6 1.3 3.6 2.1 1.9 7.01-7.50........................... 33.0 31.3 34.3 31.9 22.0 26.1 21.4 24.1 31.6 28.6 14.9 21.3 7.51-7.75........................... 58.6 58.4 57.0 57.1 72.6 69.3 75.2 72.1 66.0 66.9 81.1 75.5 Paying ceiling rate1.. . 44.8 34.1 43.4 33.0 56.9 43.8 60.5 46.5 50.3 39.1 67.0 51.3 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Survey of Time and Savings Deposits 391 TABLE 2—Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) Deposit group, original All banks All banks maturity, and distribu tion of deposits by Less than 100 100 and over Less than 100 100 and over most common rate Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, Jan. 31, Oct. 25, 1979 1978 1979 1978 1979 1978 1979 1978 1979 1978 1979 1978 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Time deposits less than $100,000 (cont.) Money market certificates, $10,000 or more, 6 months Issuing banks....................... 12,228 10,183 11,147 9,128 1,081 1,055 31,949 13,844 13,480 5,355 18,469 8,489 Distribution, total.............. 100 100 100 100 100 100 100 100 100 100 100 100 8.00 or less....................... 2.0 13.9 2.1 14.8 1.4 5.9 .8 5.2 1.1 8.6 .5 3.0 8.01-8.74...................... 3.2 86.1 3.4 85.2 .8 94.1 .3 94.8 .6 91.4 .1 97.0 8.75-9.00..................... 5.6 (2) 6.1 (2) 1.1 (2) 2.5 (2) 4.2 (2) 1.3 (2) 9.01-9.49..................... 89.2 (2) 88.4 (2) 96.8 (2) 96.4 (2) 94.1 (2) 98.2 (2) Paying ceiling rate1.. . 87.5 67.2 86.9 65.1 93.7 85.3 95.2 85.0 93.3 75.5 96.7 91.0 Club accounts Issuing banks....................... 9,193 9,230 8,423 8,437 770 794 838 2,127 378 907 460 1,220 Distribution, total............ 100 100 100 100 100 100 100 100 100 100 100 100 0.00................................ 40.4 44.0 42.0 45.6 23.0 27.1 17.8 19.1 23.9 27.0 12.9 13.3 0.01-4.00....................... 18.2 16.2 18.4 16.4 15.9 14.7 21.9 13.4 29.3 21.3 15.8 7.6 4.01-4.50....................... 7.6 6.9 7.6 6.9 7.0 6.5 12.2 8.7 13.0 6.5 11.5 10.3 4.51-5.50....................... 33.8 32.9 31.9 31.1 54.0 51.7 48.1 58.8 33.9 45.2 59.7 68.9 1. See table 1.16, page A10, for the ceiling rates that existed at the in the amounts outstanding. Therefore, the deposit amounts shown time of each survey. in Table 1 may exceed the deposit amounts shown in this table. 2. Less than .05 per cent. The most common interest rate for each instrument refers to the Note. All banks that either had discontinued offering or had stated rate per annum (before compounding) that banks paid on the never offered particular types of deposits as of the survey date are not largest dollar volume of deposit inflows during the 2-week period counted as issuing banks. Moreover, the small amounts of deposits immediately preceding the survey date. held at banks that had discontinued issuing deposits are not included Details may not add to totals because of rounding. steadily over the period; they increased more smallest percentage increase for any survey than $500 million to a level of about $3^ quarter since introduction in 1974 of the six-year billion. certificate with a higher ceiling. With large Reflecting a diversion of deposits to MMCs, outflows from the lower-yielding, short-maturity as well as the further rise in interest rates on accounts and with a slightly higher percentage alternative instruments above the fixed regula of banks in January paying the ceiling rate on tory ceiling rates, the outstanding level of longer-term, small-denomination time deposits small-denomination time deposits subject to issued to nongovernmental units, the weightedfixed ceilings declined sharply. Net outflows average rate paid on all nongovernmental from such accounts totaled more than $8 billion, small-denomination time deposits (excluding almost twice as large as the drop during the MMCs, IRAs, and Keogh accounts) rose previous survey quarter. Issues to depositors slightly to 6.57 percent. other than governmental units declined more Outstanding levels of all maturities of smallthan $8 billion; net withdrawals were registered denomination time deposits issued to govern in all but one of the maturity categories under mental units, except those maturing from 90 up six years, and deposits with maturities of less to 180 days, registered declines. Overall, such than 180 days dropped almost $4 billion. The deposits declined nearly $500 million compared decreases suggest that a large portion of MMC with a decrease of about $300 million during balances represents funds that were shifted from the previous survey period. Although banks may accounts in these deposit categories. pay 8 percent on all time deposits issued to The consistently popular deposits with origi governments without regard to maturity, their nal maturities of six years or more continued offering rates are in general well below the to rise, although at a reduced pace. The net ceiling because of the frequent requirement to inflow to these accounts of $650 million was pledge securities against such accounts. Never about $2 billion less than the increase in the theless, in response to rising market rates of previous survey period and represented the interest, a growing proportion of banks paid the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
392 Federal Reserve Bulletin □ May 1979 3 . Average of most common interest rates paid on various categories of time and savings deposits at insured commercial banks, January 31, 1979 Bank size (total deposits in millions of dollars) Type of deposit, holder, and original maturity All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 to 1,000 and over Savings and small-denomination time deposits......................... 5.94 6.02 6.10 5.99 5.93 5.81 5.82 Savings, total........................................................................................ 4.94 4.94 4.89 4.93 4.95 4.88 4.97 Individuals and nonprofit organizations................................. 4.94 4.94 4.89 4.93 4.95 4.88 4.97 Partnerships and corporations................................................... 4.98 5.00 4.96 4.96 4.99 4.98 4.97 Domestic governmental units..................................................... 4.95 4.93 4.92 4.91 4.98 4.99 4.99 All other............................................................................................ 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Other time deposits in denominations of less than $100,000, total............................................................................................ 6.57 6.48 6.65 6.63 6.58 6.50 6.52 Domestic governmental units, total......................................... 6.40 6.42 6.51 6.38 5.98 6.42 6.73 30 up to 90 days.......................................................................... 6.63 6.98 6.41 6.47 5.98 6.26 6.89 90 up to 180 days....................................................................... 6.27 6.34 6.47 5.80 5.86 6.19 6.78 180 days up to 1 year............................................................... 6.14 5.72 6.06 6.96 5.89 6.62 6.99 1 year and over........................................................................... 6.52 6.39 6.67 6.69 6.44 6.84 6.24 Other than domestic governmental units, total................... 6.57 6.49 6.65 6.63 6.59 6.50 6.52 30 up to 90 days.......................................................................... 4.97 5.00 5.00 5.00 4.86 4.93 5.00 90 up to 180 days....................................................................... 5.48 5.47 5.49 5.46 5.48 5.50 5.47 180 days up to 1 year............................................................... 5.48 5.48 5.49 5.40 5.47 5.50 5.50 1 up to lyi years........................................................................ 5.99 5.99 6.00 6.00 5.99 5.99 6.00 2V£ up to 4 years........................................................................ 6.49 6.49 6.50 6.50 6.49 6.49 6.49 4 up to 6 years............................................................................. 7.22 7.23 7.21 7.24 7.22 7.24 7.22 6 up to 8 years............................................................................ 7.48 7.50 7.50 7.50 7.43 7.50 7.48 Over 8 years................................................................................. 7.66 7.73 7.75 7.73 7.68 7.59 7.60 IRA and Keogh Plan time deposits, 3 years or more............ 7.75 7.68 7.77 7.69 7.80 7.70 7.74 Money market certificates, exactly 6 months............................ 9.44 9.33 9.45 9.45 9.43 9.42 9.47 Club accounts1..................................................................................... 3.74 2.24 3.40 3.78 4.09 3.78 4.25 1. Club accounts are excluded from all of the other categories. amount of that type of deposit outstanding. All banks that had either discontinued offering or never offered particular types of deposit as Note. The average rates were calculated by weighting the most of the survey date were excluded from the calculations for those common rate reported on each type of deposit at each bank by the specific types of deposits. maximum allowable rate on all categories of ceilings, led to an increase of $16V2 billion—to time deposits issued to governmental units. The a level of more than $200 billion—in the out weighted-average rate paid on these accounts standing volume of interest-bearing, large-de jumped 26 basis points to 6.40 percent. nomination time deposits at banks; inflows of The large increase of 98 basis points in the large-denomination time deposits had averaged average rate paid on MMCs, the slight rise in $11 billion per quarter in the six preceding the average rate paid on small-denomination survey periods. Large negotiable certificates of issues to nongovernmental entities, and the deposits at weekly reporting banks (not shown jump in the average rate paid to governmental in the table) accounted for about 65 percent of units combined to produce a rise of 37 basis the total advance. points to 7.07 percent on all small-denomination Non-interest-bearing time deposits, prin time deposits. The weighted-average rate paid cipally escrow accounts and compensating bal by banks on all small-denomination time and ances held in conjunction with loans, increased savings deposits was up 22 basis points to 5.94 $150 million, following a decline of $50 million percent. in the preceding period. Reflecting the normal seasonal pattern of deposit flows, the level of club accounts dropped more than half, to less Other Time Deposits than $1 billion. About 40 percent of the offering Continued growth of bank assets, coupled with banks, holding one-fifth of outstanding deposits, modest growth in deposits subject to interest rate paid no interest on club accounts. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
393 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of wide range of economic and financial subjects, Governors, by the Federal Reserve Banks, or and other staff members prepare papers related by the members of their staffs. to such subjects. In some instances the Federal Single copies of the full text of each of the Reserve System finances similar studies by studies or papers summarized in the Bulletin members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the professions and back of each Bulletin includes a separate to others are summarized—or they may be section entitled 6 ‘Staff Studies99 that lists the printed in full—in this section of the Federal studies for which copies are currently available Reserve Bulletin. in mimeographed form. Study Summary Innovations in Bank Loan Contracting: Recent E vidence Paul W. Boltz—Staff, Board of Governors, and Tim S. Campbell—Assistant Professor of Finance, University of Utah Prepared as a staff paper in late 1978 Business loans made by commercial banks have characteristics of such loans. The major issue many different characteristics. Until recently, examined is the relationship between the nomi little evidence has been available on the various nal interest rate charged on loans and other terms of bank lending other than the nominal elements of the loan agreement, including such interest rates charged at large banks. A new features as fixed or floating interest rates, com survey—the Survey of Terms of Bank Lend mitments and commitment fees, collateral, and ing—first undertaken in 1977 by the Federal the maturity of the loan. The characteristics of Reserve and the Federal Deposit Insurance Cor loans made at less-than-prime interest rates poration substantially closes the gap in infor at money center banks were of particular in mation by collecting detailed data on individual terest. loans made at a stratified sample of about 340 The authors find that commercial and indus banks from reports made during one week each trial loans are not homogeneous products. Large quarter. Many characteristics of business loans banks have developed complex packages of loan can be distinguished by these data. terms that include specific pricing of various In this paper, reports in the quarterly surveys kinds of risks. In addition, it is shown that in 1977 by major regional and money center during 1977 a sizable volume of loans were banks on short-term commercial and industrial made at below-prime rates at a relatively small loans are analyzed to determine the pricing number of money center banks. These loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
394 had, on average, distinctly different packages siderable shifting by large banks to borrowers of nonrate terms than loans at prime lending of the risks of changes in interest rates was also rates, particularly vis-a-vis the maturity of the demonstrated by the short maturity of those loans and whether the interest rates were fixed loans made at fixed rates, almost all of which or floating. Somewhat more than half the dollar had maturities of two months or less. In addi volume of short-term business loans made at tion, the study reviewed commitments use and major regional banks as reported in the quarterly collateral requirements and compared the profile surveys in 1977 and about two-thirds at money of loans made at money center banks with loans center banks were floating-rate contracts. Con at major regional banks. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
395 Industrial Production Released for publication May 16 April, after a rise of 0.9 percent in March. Industrial production declined an estimated 1.0 Output of durable goods materials declined 1.4 percent in April, with the drop primarily the percent as the trucking dispute and the strike result of the strike and lockout in the trucking of the steel haulers disrupted the production of industry. Because of this labor dispute, produc consumer durable goods parts, equipment parts, tion of consumer durable goods—particularly and basic metals, especially motor vehicle parts autos—and of durable goods materials was cur and finished steel. Production of nondurable tailed sharply; but some declines in output oc goods materials continued to increase in April, curred in most market groupings of the index. reflecting gains in the output of chemical mate At 150.5 percent of the 1967 average, the index rials. Output of energy materials declined for April is 5.1 percent higher than that of a slightly in April because of a cutback in extrac year earlier. tion of crude oil. Output of consumer durable goods fell 6.4 Seasonally adjusted, ratio scale, 1967=100 percent in April because of production curtail ments in the auto and appliance industries, largely due to the work stoppage in the trucking industry. Auto assemblies, at an annual rate of 7.9 million units, declined about 16 percent from the March rate; this drop was much sharper than the cutback originally scheduled. Present auto assembly schedules indicate a rate of about 9.4 million units in May and a rate of 9.6 million units in June, and would only partially make up for output lost in April. Output of consumer nondurable goods was about un changed in April. Production of business equip 1969-70=100 Annual rate, millions of units ment fell 0.7 percent as the output of transit equipment, particularly business vehicles, was also affected by the labor dispute in trucking. Output of construction supplies declined for the second consecutive month. 1973 1975 1977 1979 1973 1975 1977 1979 Federal Reserve indexes, seasonally adjusted. Latest figures: Production of materials fell 0.7 percent in April. Auto sales and stocks include imports. 1967 == 100 Percentage change from preceding month to— Percentage change Industrial production 1979 1978 1979 4/78 to Mar.p Apr.e Nov. Dec. Jan. Feb. Mar. Apr. 4/79 Total .................................... 152.0 150.5 .6 .9 .0 .1 .7 -1.0 5.1 Products, total......................... 150.6 148.9 .5 .9 .2 .3 .5 -1.1 4.1 Final products..................... 147.3 145.3 .3 .8 .2 .3 .7 -1.4 3.4 Consumer goods............ 151.7 149.0 .3 .6 .0 .1 .7 -1.8 1.0 Durable ..................... 163.9 153.4 .1 .1 -.6 .2 1.6 -6.4 -5.2 Nondurable ................ 146.9 147.1 .3 1.0 .2 .0 .3 .1 3.7 Business equipment__ 172.0 170.8 .2 .9 .6 .5 .9 -.7 7.2 Intermediate products....... 162.7 162.1 .8 1.6 .5 .3 -.2 -.4 6.6 Construction supplies... 160.7 159.6 1.3 1.1 .2 .1 -.4 -.7 7.5 Materials .................................. 154.1 153.0 .9 .7 -.5 -.3 .9 -.7 6.5 ^Preliminary. ^Estimated. Note. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
396 Statements to Congress Statement by Henry C. Wallich, Member, aspects of these activities. Therefore, in my Board of Governors of the Federal Reserve statement I shall discuss first some general System, before the Subcommittee on Oversight characteristics of offshore financial centers and of the Committee on Ways and Means, U.S. of the operations of U.S. banks in them. I shall House of Representatives, April 25, 1979. then turn to the role of the Federal Reserve in relation to these centers and I shall follow with Mr. Chairman, as requested in your letter in a description of the kinds of information ob viting the Federal Reserve to participate in these tained by the Federal Reserve in the furtherance hearings, I shall discuss the role of U.S. banks of its interests and responsibilities. in offshore centers and will comment on the types and adequacy of the information the Fed Offshore Financial Centers eral Reserve obtains on bank activities in such locations. Offshore financial centers are easier to identify Offshore financial centers, some of which are than to characterize. Broadly speaking, how also tax havens, are nowadays a highly impor ever, an offshore financial center is a location tant part of the international financial system. where funds are borrowed from nonresidents No picture of international financial develop and lent to other nonresidents through the inter ments is complete without taking into account mediation of banks and other financial institu the transactions that are made or booked in these tions. These activities are recognized to have centers. It is for this reason that activities in little effect on the domestic economy of the these centers are of interest to the Federal Re center or on domestic financial conditions. Some serve as a central bank when monitoring inter of these centers are fully operational, in the national flows of money and credit in relation sense of actual dealings being conducted with to domestic monetary conditions. Furthermore, customers with regard to obtaining funds and U.S. banks occupy a prominent place in these negotiating credits. Others are merely booking offshore centers. The Federal Reserve as bank centers where deposits and loans are legally supervisor must therefore be concerned with lodged, but where no transactions are physically monitoring the activities of U.S. banks in these made. The City of London is the preeminent centers to assure itself that they are conducting example of an operational offshore financial their affairs in a safe and sound manner. center. The Bahamas and the Cayman Islands, While tax considerations are frequently an on the other hand, are notable examples of important element in the operations of offshore booking centers. financial centers and the kinds of transactions What are the essential elements of offshore that take place or are booked in them, these financial centers and what has spurred their considerations are not prominent in the concerns growth? As for the former, tax considerations of the Federal Reserve about these centers. can of course have an important influence on Other authorities exercise oversight on tax a country’s growth and appeal as an offshore aspects of transactions in these centers and have financial center. Likewise very important, how the specialized expertise to deal with such mat ever, are factors such as exchange control laws, ters. As I have just indicated, our interests run local reserve requirements, communication fa to the broad economic implications of activities cilities, the country’s time zone, its commercial in these centers and to the bank supervisory laws, and its political and social stability. This Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 397 is illustrated by the fact that London, the largest to U.S. banks. At the end of last year, U.S. “offshore center,” is located in one of the banks had 139 branches in these two locations, world’s most heavily taxed countries. Secrecy with claims on third parties exceeding $70 bil laws are frequently another important consid lion. Details of the distribution of business eration, but, like liberal tax laws, they are among offshore centers and types of customers generally more important to the customers of are shown in the accompanying tables.1 As noted banks than to the banks themselves. earlier, the Bahamas and the Cayman Islands The growth of offshore financial centers has are booking centers for financial transactions been prompted mainly by the needs and de that have been negotiated elsewhere. Virtually mands of multinational business. As business all of the branches of U.S. banks in these centers has become more and more internationalized, are consequently “shell” branches—that is to needs for international financial services have say, they are a set of ledgers managed and kept expanded and become more diverse. Companies by an agent rather than a physical location where operating in a variety of countries have required business is transacted. funding sources in different currencies, outlets The growth of international banking is the for temporarily idle funds, access to different underlying cause for the growth of these centers, kinds of credit facilities, and the means for the but U.S. regulations were the initial catalyst for transfer of monies across international frontiers. the establishment of branches of U.S. banks in Tax laws and foreign exchange restrictions are, these centers. The voluntary foreign credit re of course, among the crucial factors influencing straint (VFCR) program and the interest equali the ways international business is transacted. zation tax (IET), which were implemented in For multinational companies, therefore, loca the mid-1960s to restrict the outflow of capital tions where international financial transactions from the United States, limited the ability of can be effected free of most tax consequences U.S. banks to meet their customers’ foreign and of foreign exchange controls have a great needs and to otherwise engage in international attraction. Since bankers traditionally follow banking. As a way of doing so, banks began their customers and adapt to their needs, banks to establish low-cost “shell” branches in these have been quick to locate in and promote such countries to obtain access to the Eurocurrency offshore centers. markets. Since foreign loans booked and funded in these branches did not affect the U.S. balance of payments, they were exempt from the re U.S. Banks in Offshore Centers strictions on foreign credits that applied to do U.S. banks have long been located in and played mestic banking offices. a prominent role in the major financial centers Although U.S. government programs to re of the world, such as London, where “offshore strict capital outflows were ended in 1974, U.S. banking” is an important part of their business. bank activity in the Bahamas and the Cayman U.S. banks have also played an important part Islands has continued to grow. For those banks in the development and rapid growth of offshore that do not have full-service foreign branches financial centers outside the major financial in, say, London, these locations offer low-cost markets that have occurred in recent years. As access to the Eurocurrency markets and, nota recently as December 1972, for example, mem bly, the ability to raise funds for their interna ber bank branches in six major offshore centers tional business free of domestic reserve require had total claims on third parties of only $14 ments. For many bank customers, these loca billion, or 20 percent of third-party claims at tions provide advantages as tax havens, while all their foreign branches. At the end of last for others secrecy laws are important in their year, those claims totaled more than $95 billion decisions to place funds. and represented 46 percent of third-party claims at all foreign branches of member banks. 1. The attachments to this statement are available on request from Publications Services, Division of Support The Bahamas and the Cayman Islands are by Services, Board of Governors of the Federal Reserve far the most important of these offshore centers System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
398 Federal Reserve Bulletin □ May 1979 For the banks themselves, operations in the foreign offices of U.S. banks in offshore centers Bahamas and the Cayman Islands also have and elsewhere as part of our general surveillance certain tax advantages. U.S. banks operate of international financial markets and interna abroad mainly through branches, and the earn tional flows of funds. The growth of interna ings of branches are not deferrable but are tional lending through the Euromarkets and immediately subject to U.S. income taxes after other markets has had important repercussions allowable credits for foreign income taxes paid. for capital flows throughout the world. Condi Generally, therefore, when a foreign tax rate tions and practices in those markets interact is higher than the U.S. tax rate, there are ad closely with conditions and operations in our vantages to shifting the business from the domestic monetary and credit markets. In ana foreign country to tax-free countries. Another lyzing the condition of the U.S. economy and reason for shifting business into a tax-haven of its external position, as well as in assessing country is to enable banks to avoid double the consequences of various policy alternatives, taxation of foreign branch earnings, as can occur much effort at the Federal Reserve is nowadays when both foreign and U.S. tax authorities tax invested in following developments in interna the same income. It should be noted that in tional banking and financial markets and activi neither of these cases is there an avoidance of ties of U.S. banks in those markets. U.S. federal taxes; in fact, in some instances As a bank supervisor, our interests are the shifting of business to tax-haven countries directed to the soundness of operations in these results in greater tax revenues accruing to the offices and to compliance with relevant banking U.S. government. Income earned in these loca laws and regulations. Most of our detailed tions, as with other income earned abroad, is knowledge of the operations of U.S. banks in not subject to U.S. state and local taxation. offshore centers arises from our role as a bank The tables attached to this statement provide supervisor. Since the branches in the Bahamas a general indication of the types of business and the Cayman Islands are “shell” offices, booked at branches of U.S. banks in the Ba virtually all of their records are maintained at hamas and the Cayman Islands. A large amount the head office in the United States and thus of purely interbank activity is booked in these are available for inspection at the time the bank branches, some of which involves the rechan is examined. Indeed, because of the special neling of funds within a bank’s organization and characteristics of these branches, the Board, some of which involves purely market transac when it authorized them, conditioned its ap tions of buying funds from some banks and proval on full records being maintained at the selling them to others. Loans booked in these head office. Another condition attached to those branches are preponderantly to foreign compa authorizations was that these offices not be used nies, including foreign subsidiaries of U.S. to shift deposits and other business from the companies, and totaled $36 billion at the end United States. of last year. Deposits from nonbank sources The supervisory interest in these operations totaled $25 billion, and were divided almost runs, as I have already indicated, to their safety equally between foreign customers and U.S. and soundness and their possible effects on the addressees. The latter are primarily U.S. cor overall condition of the bank. They are scruti porations. nized by bank examiners in connection with the overall examination of the bank and in the same fashion as other parts of the bank. The emphasis Federal Reserve R ole is accordingly on the quality of assets and the The Federal Reserve is interested in and moni ability of borrowers to repay, in accordance with tors activities of foreign branches of member the terms and conditions of the credits. Virtually banks both in its role as the nation’s central bank no attention is paid to the identity of depositors and in its role as a bank supervisor. Our interests nor to depositor transactions. Thus, customer differ somewhat according to these roles. In our compliance with the tax laws of their various central banking role, we monitor activities of countries is not a consideration in the examina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 399 tion process. That compliance is covered by this report are published regularly in the Fed other authorities in this country and abroad. In eral Reserve Bulletin, including a separate any event, bank examiners are basically credit section covering the Bahamas and the Cayman analysts and are not equipped to conduct tax Islands. A second report is collected quarterly audits. and shows foreign branch assets and liabilities by country. Information on Offshore Center Besides these reports on foreign branches, U.S. banking organizations also submit finan Operations cial statements on their foreign subsidiaries on The Federal Reserve employs several sources an annual basis. Subsidiaries of U.S. banks in of information on the activities of offshore of the Bahamas and the Cayman Islands are much fices that enable it to monitor compliance with less important than their branch operations. At sound banking practices and relevant U.S. reg year-end 1977, total assets of these subsidiaries ulations and that help in evaluating the impact were only $3 billion, about one-third of which of offshore offices on international financial represented intercorporate transactions. Some of flows. The information from these sources has these subsidiaries conduct a wide range of ac been adapted to the Federal Reserve needs and tivities similar to those of branches; others serve interests that I have just discussed and are gen mostly to channel funds among affiliated offices. erally adequate for those purposes. While some conduct trust activities, the volume As I mentioned earlier, our most detailed is relatively small and is directed to foreign information about the activities of U.S. banks parties. in offshore centers is obtained from examination reports. These reports are the primary supervi Conclusion sory document. In addition, statistical reports are collected periodically on individual offices In this statement, I have tried to provide some and are used mainly in our overall evaluation insight into the general workings of offshore of banking activities in these centers. On a centers and into the nature of the Federal Re monthly basis, banks file reports for their major serve’s interest and attention to developments foreign branches showing their assets and lia in these centers, both in general and in particular bilities by type of customer. Data compiled from relation to offices of U.S. banks. □ Statement by Nancy H. Teeters, Member, would make a written notification of the loss Board of Governors of the Federal Reserve or theft of an EFT card effective when mailed System, before the Subcommittee on Consumer by the consumer. The Board’s Regulation E Affairs of the Committee on Banking, Finance currently takes a different position. The regula and Urban Affairs, U.S. House of Repre tion provides that a written notification is effec sentatives, May 1, 1979. tive upon receipt by the financial institution or at the expiration of the time it normally takes It is a pleasure for me to make my first appear for mail delivery, whichever is earlier. This ance before this subcommittee. I have been provision was modeled on an identical section designated to chair the Board committee that in the Truth in Lending Act and in Regulation has responsibility for consumer affairs, and I Z and was designed to encourage telephone look forward to working with you on our com notification. mon problems and objectives. Given the vagaries of the U.S. mail, it is The subject of today’s hearing is H.R. 3552, likely that sending a written notice will create a bill that would amend the Electronic Fund a “risk period” during which losses may con Transfer (EFT) Act. Section 1 of H.R. 3552 tinue to occur. The approach taken by H.R. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
400 Federal Reserve Bulletin □ May 1979 3552 would shift losses that occur during this tion legislation, we believe that a shorter period from the consumer to the financial insti rulewriting timetable would not be in the public tution. Neither the regulation nor the bill as interest. presently drafted would reduce the losses— We could shorten the timetable by allowing losses that ultimately will be passed on to con 30 days instead of 60 days for public comment. sumers as higher costs. A better approach—one We are concerned, however, that a 30-day pe that could effectively reduce potential losses to riod would not allow all interested parties to everyone concerned—might be to allow finan express their views adequately as has happened cial institutions to require oral notice and to in the past. The Board has adopted a policy, provide a 24-hour telephone line for this pur in accordance with the spirit of Executive Order pose. This could be followed by a written no 12044, of allowing at least 60 days for public tice. This would coincide with the way con comment on regulations that implement a new sumers normally act. would speed up notifica law. We feel that adequate time for public tion, and would reduce losses to everyone. comment is especially important in the case of Section 2 of H.R. 3552 would change the a law, such as the EFT Act, that is highly effective date of most of the remaining provi technical and that confers significant consumer sions of the EFT Act from May 10, 1980, to rights. September 10, 1979. The Board recommends Our experience with implementation of other against adoption of this amendment. While we legislation also indicates that 60 days is essential recognize the need for prompt implementation for analysis of public comments, redrafting the of the act on a priority basis, changing the regulations, and bringing them back for the effective date to September 10 would not leave Board’s consideration. In 1976 when the sufficient time to accomplish this task effec amended Equal Credit Opportunity regulations tively. It would require the Board to issue regu were issued, the Board received about 650 lations without the degree of public participation comments on the first proposal and 500 com that is essential for orderly implementation of ments on the second. More recently, the Board this important new law. and the other financial supervisory agencies re The Board’s present schedule for implement ceived almost 1,000 comments on the Commu ing the remainder of the act is as follows: we nity Reinvestment Act regulations. There is have published a proposed regulation this week, great public interest in the EFT Act. I think we with a 60-day comment period ending July 2 can expect to receive at least several hundred and public hearings on June 18 and 19; we are comments on our proposed Regulation E. allowing 60 days for analyzing any complexities The Board’s timetable calls for two public that may be uncovered by the comments and comment periods. I wish I could forecast that for redrafting the regulation; we plan to publish one comment period will suffice, but, again, our a revised regulation for a second 60-day period, experience indicates otherwise. When new reg running from September 1 through October 31; ulations are drafted, the first proposal may analysis of those comments and redrafting will overlook important issues and some of the pro be completed in mid-December. The final regu visions may not be workable. Indeed, that is lation should be published by the end of De the purpose of public comment—to expose reg cember, after which financial institutions will ulations to the critical gaze of the financial have some four months under the current institutions and consumers who must live with schedule in which to gear up for its implemen them. Having two comment periods allows the tation. public to comment on significant changes before We believe this is a realistic schedule that regulations go into effect and thereby reduces demonstrates the Board’s commitment to speedy the possibility that the regulations will have to and responsible implementation of the act. be amended later. As a result of the comments Meeting the schedule will require considerable received, significant changes were made to the effort by the Board and its staff. Based on our regulation implementing sections 909 and 911 experience in implementing consumer protec of the EFT Act earlier this year. One of those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 401 changes, concerning disclosure of consumers’ means. In other words, when something goes liability for unauthorized transfers, was repub wrong, both the consumer and the issuer of the lished for public comment. card will have to figure out what category the If the effective date for the balance of the transaction falls into, in order to know what act were now changed to September 1979, the rules apply and what has to be done. Board’s regular procedures could not be fol The Board believes that, to minimize confu lowed. Even if we were to have only one sion, the EFT and Truth in Lending Acts should comment period, there is a real risk that the be amended to provide a single set of rules to law would take effect before implementing reg govern credit and electronic fund transfer trans ulations could be issued in final form. actions, except when compelling policy consid I would like to point out that the EFT Act erations may dictate different treatment. We imposes major new responsibilities on financial believe the rules should be simple and straight institutions. They will be required to prepare forward, so that both the industry and the con and print new disclosures, establish new error- sumers that use these services can understand resolution and stop-payment procedures, pro them. The Board has a number of specific rec gram computers to generate periodic statements, ommendations: and, of course, train their personnel. Our expe 1. The Truth in Lending Act imposes a flat rience with other laws, including the Equal $50 limit on the liability of a credit-card holder Credit Opportunity Act, suggests that the quality when a card is lost or stolen. The EFT Act has of compliance is enhanced and the cost of com a $50, $500, and unlimited liability structure. pliance reduced by providing a lead time of A majority of the Board believes consumers’ several months between the issuance of regula potential exposure under the EFT Act is too tions in final form and the effective date of a great, although there may be instances in which statute. the consumer should bear some liability for I am also seriously concerned about making carelessness. The structure of the liability pro regulations effective before financial institutions visions is unduly complicated, and the benefit have developed the procedures necessary to to the industry of the escalating liability limits implement them. There is a real risk that con may ultimately be illusory rather than real. The sumers will be misled into thinking they have Board favors the Truth in Lending approach of rights that, for all practical purposes, are not a single liability limit for unauthorized use. We yet available to them. also believe it will make electronic payment I also want to express the Board’s strong systems more acceptable to the public. concern about some of the substantive provi 2. Under the Fair Credit Billing Act, a con sions contained in the current EFT Act. In the sumer must write to the creditor in order to take course of drafting the regulations, it has become advantage of the dispute resolution rules of the clear to us that, unless there are substantive act. The Electronic Fund Transfer Act permits changes, consumers and financial institutions consumers to give oral notice, although an will face rules under the EFT Act different from institution can require written confirmation. It those under Truth in Lending. In the Board’s is estimated that fewer than 1 percent of con view, these differences will create unnecessary sumers with questions about their bills follow confusion. the formal procedures of the Fair Credit Billing As things now stand, for example, rules re Act. Consumers usually telephone, and the lack garding liability and dispute resolution proce of formality should not remove them from the dures will differ depending on whether the plas protections of the act. The Board therefore rec tic card issued to a consumer is a credit card ommends that the Fair Credit Billing Act be or a debit card. Different rules may even apply amended to incorporate an oral notice provision. to the same piece of plastic, in the case of a 3. When an error is alleged under the Elec combined credit-debit card. In some cases, the tronic Fund Transfer Act, the institution has 10 rule will depend on whether a card is used to business days in which to complete its investi obtain credit by electronic or nonelectronic gation. If it needs more time, it must provision Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
402 Federal Reserve Bulletin □ May 1979 ally re-credit the consumer’s account within 10 the industry will benefit from a rational, combusiness days. When an error allegation is re mon-sense framework. The Board and its staff ceived under the Fair Credit Billing Act, the will be glad to work with you in developing creditor must either resolve the dispute or send the statutory language to implement these rec an acknowledgment within 30 days. The Board ommendations. recommends that the acts be amended to provide Finally, there are two other issues on which parallel timing requirements. we would like to consider legislative or other The maximum time limits for resolving remedies after we have had a little more time disputes are 45 days under the Electronic Fund to think them through. These issues arise be Transfer Act and two billing cycles (but not cause the consumer account used for EFT more than 90 days) under the Fair Credit Billing transactions will generally be the same account Act. The Board recommends that the Electronic used for paper-check transactions, and the ac Fund Transfer Act be amended to conform to count statement will cover both. The act covers the Fair Credit Billing Act, to require resolution only transactions that are initiated electroni within 90 calendar days. Lengthening the Elec cally. But it is quite possible not only to have tronic Fund Transfer Act limit will not harm transactions that are wholly paper and others consumers since an institution must have provi that are wholly carried out by means of EFT sionally recredited within 10 business days in in the same account, but also to have transac order to take advantage of the longer time pe tions that involve both paper and electronic riod. transfer elements, or that start as paper and 4. The Board recommends the elimination of finish electronically. the annual notice of rights under the Electronic One issue has to do with how the consumer Fund Transfer Act and the seminannual notice is to be given an adequate disclosure of account of rights under the Fair Credit Billing Act. Since terms and conditions when the account can be it is normally information on periodic statements accessed by both EFT and conventional paper that triggers a dispute, we believe that con means. It is essential for consumers to know sumers are better served by a summary notice the terms and conditions of the entire account. on periodic statements than they are by a lengthy Balance requirements, fees, usage limitations, explanation once or twice a year. and availability of funds are important facts that 5. Finally, the Board’s staff has received a should be provided to consumers so that they number of inquiries asking whether the Fair can make educated decisions on which type of Credit Billing Act permits creditors to impose transfer most suits their needs. Under the charges for providing documentation or for in Board’s proposed regulations (and under most vestigating errors. In some cases, these charges current practices) electronic deposits are imme are quite substantial, and in others they are open diately available to the customer, while the ended—for example, $5 per hour for an inves availability of funds from check deposits may tigation. We anticipate that the same questions be delayed for several days or longer, awaiting will arise regarding investigation of alleged check clearance. errors in EFT transactions. The Board recom While the EFT Act requires disclosure of mends that both the Fair Credit Billing Act and essential terms and conditions of an electronic the Electronic Fund Transfer Act be amended fund transfer, it does not provide the Board with to prohibit such charges. While Regulation Z specific authority to require disclosure of all already prohibits these charges when a cus important terms of any account from which tomer’s allegation of error proves correct, we electronic funds transfers as well as other believe that permitting these charges at all transfers may be made. Although we believe serves to discourage customers from exercising the Board has the authority to require disclosure their right to assert errors. of account terms generally, broadening the dis It is essential that the legal relationship be closure authority under the EFT Act for ac tween electronic funds transfers and credit counts subject to electronic funds transfers may transactions be clarified. Both consumers and be appropriate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 403 The second issue has to do with paper trun developed for consumer payments (except for cation and with how the consumer is to obtain share drafts in which the institution stands be adequate proof of payment on a transaction that tween the customer and the payee). Until we begins with a paper check but is translated into know more about the direction in which con an electronic impulse. This is the case with sumer check truncation is developing, we want many credit union share drafts today—the cus to be cautious about suggesting consumer legis tomer gets back only a printout and not the lation. actual paper itself. The present EFT Act protects In both of these situations, consumers may the consumer only when the transaction is begun need protection. We would like to give some electronically; by law, the statement finally re further study to the technical problems involved, ceived by the consumer is proof of payment. and will report to you when we have been able If the transaction begins with a paper check and to develop recommendations. For now, we the check is not returned to the consumer, there simply want to alert you that these problems is no such protection. Our reluctance to recom are on the horizon. We will be pleased to work mend action at this time is based, in part, on with your staff in giving further consideration the fact that check truncation is not yet widely to these issues. □ Statement by J. Charles Partee, Member, Board objectives were mandated by the Congress when of Governors of the Federal Reserve System, it expanded the scope of deposit rate control before the Subcommittee on Financial Institu authority in 1966, and they have been reaf tions Supervision, Regulation and Insurance of firmed repeatedly in subsequent renewals of that the Committee on Banking, Finance and Urban legislation. The objective of providing equitable Affairs, U.S. House of Representatives, May returns to small savers, while never specifically 7, 1979. incorporated into legislation, has nonetheless emerged as an important factor. In view of the I am happy to appear today on behalf of the sharp increases in market interest rates and in Federal Reserve Board to discuss the new sav the price level that have occurred over the past ings instruments proposed last month by the year or two, it is no wonder that small savers financial regulatory agencies. I have also at have become increasingly vocal about the tached a supplement commenting on the ques disparities between market yields and the maxi tions contained in the chairman’s letter of May mum rates available on deposits at thrift institu 1, but these questions are not covered directly tions and commercial banks. in my statement.1 Despite these developments, fundamental At the outset let me emphasize that the agen conflicts among the three regulatory goals per cies’ recent proposals were constrained by our sist and must be reckoned with in any responsi responsibilities to consider and balance three ble regulatory action. For example, policies conflicting needs: namely, to provide more eq designed to augment mortgage flows during uitable rates of return to depositors, particularly periods of high market interest rates necessarily small savers; to ensure an adequate flow of place pressure on the earnings of thrifts and may funds to the savings institutions and hence to cause severe problems for some of the weaker mortgage markets; and to protect the viability institutions. Similarly, actions intended pri of the thrift industry. The last two of these marily to benefit small savers also squeeze the profitability of thrifts and may not generate any significant additional flow of funds for housing. 1. The supplement to this statement is available on These conflicts and the agencies’ attempts to request from Publications Services, Division of Support resolve them are reflected in the three new Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. account categories proposed for public comment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
404 Federal Reserve Bulletin □ May 1979 last month. Consider, for example, the bonus plans are not sufficiently certain to warrant in savings account plan, which would authorize the vestment in fixed-maturity deposit instruments. payment of an extra 1/2 of a percentage point Of the three new account categories, we think in interest on the minimum balance held in a that the five-year, floating-ceiling certificate savings account for one year or more. This plan probably has the greatest cost potential in the is designed to provide some additional income short run. It is certainly the most likely, in the to savers who prefer to keep their funds in very Board’s view, to augment deposit flows and liquid deposits but nevertheless end up holding mortgage credit availability. Patterned after the these deposits for a substantial period of time. money market certificate, the instrument would Though the proposed bonus increase in yield provide a market-oriented rate of return to is modest, it would raise costs significantly for savers who are willing to commit as little as depositary institutions and, at present rates of $500 for five years; moreover, depositors who interest, produce little or no new funds for withdraw funds prematurely after a year or so investment in mortgages. It would be our hope, would face a penalty less severe than the exist however, that the minimum maturity restriction ing requirement. Maximum rates of interest wFould encourage depositors to maintain funds would be changed once each month and would in their savings accounts for longer periods of be 1 percentage point below the yield on fivetime and, therefore, add stability to deposit year U.S. Treasury securities for thrift institu flows, particularly for thrift institutions. tions and 1% percentage points below that yield Creating an incentive to maintain funds on for commercial banks. deposit was also an important consideration in In advancing this proposal, the agencies have developing the rising-rate certificate proposal. recognized the desirability of permitting a de This plan would provide depositors with an posit instrument offering a market-determined instrument whose yield increases gradually with yield to small savers. We believe that the pro the passage of time. Specifically, commercial posed five-year certificate meets this need with banks could pay interest according to a schedule out endangering the short-run viability of the that starts at 6 percent for the first year and rises thrift industry. The relatively large discount in increments of 1/2 percent, reaching 8 percent from market yields serves to reduce the cost to for the sixth through the eighth year—the maxi depositary institutions and is warranted by the mum specified maturity. Thrift institutions could simplicity and convenience of dealing with local pay 1/4 of a percentage point more throughout. institutions rather than going into the market for Three months’ forfeiture of interest would be the placement of small savings balances. During required for withdrawals during the first year, the interagency deliberations leading to this after which no penalty would apply. proposal, careful consideration was given to the The main attraction of this instrument for much simpler steps of either reducing the mini depositors would not be a higher return, since mum denomination of the existing 6-month the yield for most given holding periods is at money'market certificates or creating a new or somewhat below that available on fixed-term short-term market certificate with a lower rate certificates of the same maturity. But by elimi ceiling and a lower minimum denomination. nating the early withdrawal penalty after one However, these alternatives were rejected be year, the rising-rate certificate offers passbook- cause of their potential for inducing substantial type liquidity and the prospect of increasing transfers of funds from low-cost passbook and returns to those savers who believe that they short-term time deposits and the resultant insti will keep their funds on deposit for at least one tutional cost implications. The relatively long year. Under the proposed rate schedule, this maturity of the proposed instrument, coupled instrument should not affect earnings of thrift with the still significant penalty for premature institutions materially, nor would we expect it withdrawals, should reduce these risks consid to augment mortgage flows significantly. In erably. stead, the proposed instrument would be in Individually the proposed instruments strike tended to serve a particular need for those whose a balance among conflicting objectives in dif Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 405 ferent ways. Taken as a group, we hope that I understand, however, that very few of the 250 they would provide for greater liquidity and or so letters reviewed to date are receptive to moderately higher returns to small savers and the proposals. This is, of course, an inevitable lead to a somewhat larger flow of funds to consequence of the need to compromise be mortgage markets, all at a cost to the depositary tween opposing interests. Depositors would be institutions that is manageable. Although the offered better rates of return, but these rates are considerations motivating each element of the still well below current market yields. The de package seem diverse, at least two features are positary institutions would find their costs to be common to all components. First, the differen appreciably higher, but their savings inflows tial between the maximum rates payable by would likely be somewhat better than without thrift institutions and commercial banks that the new instrument alternatives. Mortgage credit characterizes each new instrument continues the should be a little more plentiful as a result of competitive advantage for thrift institutions that the larger deposit inflows, but those interested has clearly been the intent of the Congress in in obtaining such credit would still be disap its legislative decisions on deposit rate ceilings. pointed by the relatively small impact. And, Second, all of the proposals, including the sug finally, the already complicated regulations on gested reduction of the existing $1,000 mini deposit rate ceilings would become even more mum denominations on fixed-rate certificates to complex, adding to public confusion. Such $500, enlarge the savings opportunities for de complexity, I am afraid, is the heritage of con positors with moderate sums to invest. gressional and regulatory efforts to compromise It is too early to provide this subcommittee among competing objectives. The Board urges and the public with a detailed evaluation of the that this congressional mandate be given prompt comments that have been received on the pro review and reconsideration with a view to facil posals. The 30-day comment period ended just itating simplification and/or decontrol of the last Friday, and we are still receiving letters that ceiling rate structure before it collapses of its were transmitted to our regional Reserve Banks. own weight. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
406 Announcements Regulation B: A mendment changes in Federal Reserve handling in its check collection system of checklike payment instru The Federal Reserve Board has amended its ments drawn on savings accounts at mutual Regulation B (Equal Credit Opportunity) to savings banks and savings and loan associa clarify the definition of creditor. tions, to be part of Regulation J (Collection of The amendment, effective May 21, 1979, Checks and Other Items and Transfers of Funds). makes it clear that the definition of creditor The Board requested comment by June 1, 1979. includes not only those who grant credit but also The Federal Reserve Board on April 30, those who regularly refer customers to creditors. 1979, issued for public comment proposals for Automobile dealers, home improvement con completion of its rules necessary to carry out tractors, and real estate brokers who regularly provisions of the Electronic Fund Transfer Act, direct customers to creditors are examples of which will be part of Regulation E (Electronic those the amendment to Regulation B places Fund Transfers). The Board asked for comment under the definition of creditor. The Board’s by July 2, 1979. action bringing arrangers of credit within the scope of Regulation B was substantially as pro posed in October 1978. The Board did not take action on other proposals made at that time Revision in concerning certain business credit exemptions Bank Examination Procedures in Regulation B. A revised statement on classification of bank assets and appraisal of securities in bank exam Proposed A ctions inations, including amended rules for assessing The Federal Reserve Board on April 13, 1979, bank holdings of municipal general obligations, invited public comment on a proposed restruc was issued on May 7, 1979, by state and federal turing of reserve requirements designed to es bank supervisors. tablish more effective control over growth of The statement is a revision of the “Uniform bank credit. Comment was requested by May Agreement on the Classification of Assets and 18 on a proposal to apply a 3 percent reserve Appraisal of Securities Held by Banks” issued requirement on certain types of borrowings in 1938 and revised in 1949. The statement was through repurchase agreements and federal issued jointly by the Comptroller of the Cur funds that banks have used increasingly to help rency, the Federal Deposit Insurance Corpora finance the expansion of their loans and invest tion, the Federal Reserve Board, and the Con ments. ference of State Bank Supervisors. The Board of Governors on April 19, 1979, The revision clarifies definitions and elimi asked for comment on how the antidiscrimina nates practices duplicated elsewhere. It provides tion rules of Regulation B (Equal Credit Oppor expanded definitions of “substandard,” tunity) should be applied to certain practices of “doubtful,” and “loss” categories used for creditors that use credit-scoring systems. The criticizing bank assets. Board requested comment through June 20, The revised agreement sets forth guidelines 1979. for examiners to follow in distinguishing in- The Federal Reserve Board on April 23, vestment-quality from subinvestment-quality 1979, requested public comment on possible securities in bank portfolios and restates guide Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
407 lines for examiners to use in computing a bank’s uidation of the debt. They are characterized by net sound capital. the distinct possibility that the bank will sustain The revised uniform agreement provides an some loss if the deficiencies are not corrected. exception to the general rules for appraisal and An asset classified doubtful has all the weak classification of municipal general obligation nesses inherent in one classified substandard securities in bank portfolios (obligations of with the added characteristic that the weak states, cities, counties, or other political divi nesses make collection or liquidation in full, on sions that have general taxing authority). The the basis of currently existing facts, conditions, revised agreement establishes these rules: and values, highly questionable and improbable. 1. When municipal general obligations are Assets classified loss are considered uncollecti not in default but are regarded as being of ble and of such little value that their continuance subinvestment quality, they are to be classified as bankable assets is not warranted. This classi as substandard assets of the bank. fication does not mean that the asset has abso 2. In the event of a default of a municipal lutely no recovery or salvage value, but rather general obligation, the book value of the se it is not practical or desirable to defer writing curities in default are to be classified as doubtful off this basically worthless asset even though until the issuer has taken budgetary, tax, or other partial recovery may be effected in the future. actions to cure the default or until the market Fifty percent of the total of “doubtful” and for the defaulted securities has stabilized. The all of “loss” will be deducted in computing the regulators will review the market for the de net sound capital of the bank. Amounts classi faulted securities periodically. Upon determi fied “loss” should be promptly charged off. nation that a functioning market has been rees tablished, the book value of the securities in The Appraisal of Securities in Bank Exami excess of market value will be classified as a nations. Investment quality securities are mar loss to the holder. ketable obligations in which the investment Previously, any excess of book value above characteristics are not distinctly or predomi market value of a defaulted municipal general nantly speculative. This group generally in obligation was recognized as a loss at the time cludes investment securities in the four highest of the default and was eliminated from the rating grades and unrated securities of equiva bank’s reported assets. Experience has shown, lent quality. Neither market appreciation nor however, that general obligation municipal se depreciation in these securities will be taken into curities have generally not been disavowed and account in figuring net sound capital of the bank. principal amounts have ultimately been paid. This policy is intended to apply to recognized The revised uniform agreement is as follows. sound investment practices of banks and not to those situations where the portfolio requires special treatment by a supervisory agency. Uniform Agreement on the Subinvestment quality securities are those in Classification of Assets and Appraisal which the investment characteristics are dis of Securities Held by Banks1 tinctly or predominantly speculative. This group The Classification of Assets in Bank Exami generally includes securities in grades below the nations. Classification units are designated as four highest grades and unrated securities of “substandard,” “doubtful,” and “loss.” A equivalent quality, defaulted securities, and sub substandard asset is inadequately protected by investment quality stocks. the current sound worth and paying capacity of Securities in grades below the four highest the obligor or of the collateral pledged, if any. rating grades and unrated securities of equiva Assets so classified must have a well-defined lent value will be valued at market price and weakness or weaknesses that jeopardize the liq the depreciation will be classified doubtful; re maining book value will be classified substand ard. Depreciation in defaulted securities and 1. Revises examination procedures established in 1938 and revised July 15, 1949. subinvestment quality stocks will generally be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
408 Federal Reserve Bulletin □ May 1979 classified loss; remaining book value will be Division of Research and Statistics, for all items classified substandard. currently published that have comparable defi An exception to the above will be made in nitions before and after January 3, 1979. the case of municipal general obligations that Data on assets and liabilities of all commer are backed by the credit and taxing power of cial banks (table 1.24) have been revised to the issuer. The entire book value of subinvest reflect adjustment to preliminary condition re ment quality municipal general obligations, ports for December 31, 1978, and procedural which are not in default, will be classified sub changes in estimating data for domestic char standard.2 In the event of a default of a munici tered banks and for U.S. branches of foreign pal general obligation, a period of time is usu banks. ally necessary to permit the market for these Data on loans and investments at all com defaulted securities to stabilize or for the issuer mercial banks (table 1.23) for the period since to put in place budgetary, tax, or other actions June 1978 have also been revised. The revisions that may eliminate the default, or otherwise reflect adjustment to preliminary condition re improve the postdefault value of the securities. ports for December 31, 1978, and procedural The market for the defaulted securities will be changes in estimating data for domestic char periodically reviewed by the regulatory authori tered banks and for U.S. branches of foreign ties. Upon a determination that a functioning banks. A new statistical release G.7 (407), market has been reestablished, depreciation on which will make the loans and investments data defaulted municipal general obligations will be available each month prior to publication of the classified loss. During such interim, the book Bulletin, is now available on request from value of all defaulted municipal general obliga Publications Services, Division of Support tion securities will be classified doubtful.2 Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. A vailability of Revised Banking D ata Change in Board Staff Estimated data for January 1972 through De The Board of Governors has announced a cember 1978 are now available for the large change in the Division of Banking Supervision weekly reporting bank series (tables 1.27, 1.28, and Regulation, effective April 23, 1979. and 1.29 of the Federal Reserve Bulletin). William Taylor, Assistant Director, has been Data published since January 1979 have not promoted to Associate Director. been comparable with previously published data because of substantial changes in the reporting System M embership: panel. The currently published and estimated A dmission of State Banks back data represent assets and liabilities of about 170 large commercial banks that had total assets The following banks were admitted to member in domestic offices exceeding $750 million as ship in the Federal Reserve System during the of December 31, 1977. Estimated back data are period April 16 through May 10, 1979: available from the Board’s Banking Section, Colorado 2. The above exceptions will not apply in those Black Hawk .................Gilpin County Bank instances when the supervisory authorities determine West Virginia that there is no likelihood that the municipality will be Green Valley ..........Valley Bank and Trust able ultimately to repay or satisfactorily to restructure its obligations. Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
409 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON MARCH 20, 1979 1. Domestic Policy Directive The information reviewed at this meeting suggested that growth in real output of goods and services had moderated in the current quarter after having accelerated to an annual rate of 6.9 percent in the fourth quarter of 1978. The rise in average prices, as measured by the fixed-weight price index for gross domestic business product, appeared to have been faster than the annual rate of 8.0 percent recorded in the third and fourth quarters of 1978. Staff projections of growth in output over the four quarters of 1979 had been reduced somewhat from those prepared for the February meeting, in large part because of a reduction in the expected rate of expansion in the current quarter. The projections continued to suggest sluggish growth during the second half of the year. The rise in average prices was projected to remain rapid, and the rate of unemployment was expected to increase somewhat from its current level. The dollar value of total retail sales rose slightly further in January and February, following several months of sizable gains, but sales in real terms apparently declined. Unit sales of new automobiles for the two months were just above the pace in the second half of 1978. The index of industrial production was unchanged in January and increased 0.3 percent in February, following advances in the preceding three months that averaged about 0.7 percent. The slowdown appeared to be caused in part by adverse weather. Total nonfarm payroll employment, and also its manufacturing component, expanded appre ciably further in the two months, although the increases were somewhat below the average monthly gains during the fourth quarter. The rate of unemployment was 5.7 percent in February, little changed from other recent months. Total private housing starts fell sharply in January and declined further in February to an annual rate of 1.4 million units. In January total sales of new and existing single-family houses declined substan tially. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
410 Federal Reserve Bulletin □ May 1979 The latest survey by the Department of Commerce of business plans, taken in late January and February, suggested that spending for plant and equipment would expand 11.3 percent in 1979, virtually the same as the gain that had been indicated by the December survey. The increase in 1978 was estimated to have been 13.3 percent. Manufac turers’ new orders for nondefense capital goods advanced sharply in January after having risen considerably on balance during the fourth quarter. The index of average hourly earnings of private nonfarm production workers rose at an annual rate of 4.3 percent in February, following increases averaging about 8.5 percent in the preceding four months. In some industries with relatively low wage rates, hourly earnings had increased sharply in January, when increased minimum wages became effective, and then changed little in February. The trade-weighted value of the dollar against major foreign curren cies had not changed on balance since the February 6 meeting of the Committee. The U.S. merchandise trade deficit rose sharply in January, but revised data suggested a smaller deficit for the fourth quarter of 1978 than had been published earlier. Imports, especially of oil, increased sharply in January, while exports declined slightly. In January and February growth of total credit at U.S. commercial banks accelerated considerably from its reduced pace during late 1978. Expansion in business loans was unusually strong, and banks also added substantially to their holdings of securities. M-l declined in both January and February, M-2 changed little, and M-3 grew at a relatively slow rate. With interest rates remaining high, the behavior of all three monetary aggregates was affected by unusually large shifts of funds from deposits to money market mutual funds and other liquid assets. The weakness in M-l also reflected the effects of continuing movements of funds from demand deposits to savings deposits associated with the recently authorized automatic transfer service (ATS) and negotiable orders of withdrawal (NOW) accounts in New York State. Banks and thrift institutions financed credit expansion mainly through net additions to outstanding six-month money market certifi cates and large-denomination certificates of deposit, which are not subject to fixed ceilings on interest rates. Inflows of time and savings deposits subject to fixed rate ceilings continued to be inhibited by the availability of higher-yielding investment alternatives. Overall, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 411 inflows of interest-bearing deposits included in M-2 and M-3 remained at reduced levels. During the two-month period, banks obtained a sizable volume of funds from nondeposit sources and from repayments by foreign branches of advances from domestic head offices. At its February meeting, the Commitee had decided that open market operations should be directed at maintaining the weekly average federal funds rate at its current level of about 10 percent or slightly higher, provided that over the February-March period the annual rates of growth of M-1 and M-2, given approximately equal weight, appeared to be within ranges of 3 to 7 percent and 5 to 9 percent, respectively. If the two-month growth rates appeared to be outside the indicated limits, the Manager of the System Open Market Account was to notify the Chairman promptly, who would then consult with the Committee to determine whether the situation called for supplementary instruc tions. At the beginning of March, projections suggested that over the February-March period M-1 would grow at a rate moderately below the lower limit of the range established by the Committee and M-2 would grow at a rate just below the lower limit of its range. In a special telephone meeting on March 2, the Committee instructed the Manager to continue aiming for a weekly average federal funds rate of 10 percent or slightly higher. Most market interest rates rose moderately on balance during the intermeeting period, after having declined in January. Yields on corporate bonds and on three-month Treasury bills moved up to their highest levels of the current economic expansion. Yields on most short-term instruments remained below levels reached around the turn of the year, however, and primary market rates on home mortgage loans were little changed from their year-end levels. Effective March 15, 1979, regulations governing ceiling rates on six-month money market certificates issued by financial institutions were changed. The new rules prohibit the use of compounding in calculating allowable returns and eliminate the V* point interest dif ferential between commercial banks and thrift' institutions when the ceiling rate is 9 percent or higher. The full differential will be in effect when the ceiling rate is 8% percent or less. When the six-month bill rate is between 83A and 9 percent, thrift institutions may pay a maximum 9 percent while commercial banks may pay up to the actual discount rate for six-month bills. These changes were designed to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
412 Federal Reserve Bulletin □ May 1979 reduce somewhat the cost of money market certificates and to moderate the flow of funds into thrift institutions while permitting them to remain competitive over the longer run in attracting funds for housing. In the Committee’s discussion of the current economic situation, attention was drawn to the more rapid expansion in output of goods and services in the fourth quarter of 1978 than had been anticipated. The Commerce Department had just released a second upward revision in its estimate of growth in real gross national product in that quarter, and it wras observed that the rate of resource utilization therefore was higher than had been thought earlier, accounting in part for the recent intensification of upward pressures on prices. At the same time, it was noted, developments since the turn of the year were apparently mixed, contributing to increased uncertainty. Specifically, such indicators of business expenditures as new orders for capital goods, inventory investment, and short-term borrowing had been strong, and the demand for labor had remained bouyant. On the other hand, growth in personal income had weakened, retail sales had declined in real terms despite renewed strength in unit sales of new automobiles, and both the drop in housing starts and the sluggish performance of industrial output seemed to be attributable only in part to adverse weather. Many members of the Committee thought that the staff was overly optimistic in projecting continued, if sluggish, growth in real GNP throughout the second half of 1979; they believed that the chances of a recession beginning before the end of the year or in early 1980 were fairly high. The recent increase in the price of oil, the acceleration of the overall rise in prices, and the sluggish growth of the monetary aggregates over the latest five months were cited among the factors that increased the probability of recession. The observation also was made that if a recession developed, it was likely to be moderate and short-lived. Some concern was expressed that, in part because of the uncertain outlook for supplies and prices of some commodities, businesses might now be trying to raise their investment in both inventories and plant and equipment, thereby intensifying inflationary pressures currently and increasing both the chances and the probable severity of recession later. It was observed, however, that the current accumulation of inventories, to the extent that it reflected rebuilding of stocks drawn down in the fourth quarter and hedging against possible strikes, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 413 represented prudent business behavior and not a major shift away from the cautious attitudes that had prevailed for some time. With respect to plant and equipment, expenditures would be spread over a period when overall activity was not expected to be expanding rapidly, and subsequently the expenditures would yield additions to capacity and gains in productivity. The members expressed some differences of opinion concerning prospects for prices. A significant easing from the rapid rise of recent months was suggested, to the extent that recent increases in prices represented temporary factors or were made in anticipation of possible price and wage controls. Moreover, slackening of economic activity later in the year could be expected to slow the rise in prices generally. The view was also expressed, however, that inflation would remain rapid even during a recession. In any case, it was observed, a long lag could be expected in the response of prices to the additional measures of restraint imposed toward the end of 1978. At its meeting on February 6, 1979, the Committee had agreed that from the fourth quarter of 1978 to the fourth quarter of 1979 average rates of growth in the monetary aggregates within the follow ing ranges appeared to be consistent with broad economic aims: M-l, IV2 to AVi percent; M-2, 5 to 8 percent; and M-3, 6 to 9 percent. The associated range for the rate of growth in commercial bank credit was IV2 to IOV2 percent. It had also been agreed that the longer-run ranges, as well as the particular aggregates for which such ranges were specified, would be reconsidered in July or at any time that conditions might warrant. In contemplating policy for the period immediately ahead, the Committee continued to face unusual uncertainties concerning the forces affecting monetary growth. A staff analysis had suggested that M-l was likely to expand in March, contributing to a pickup in growth of M-2. Nevertheless, M-l was expected to register a decline in the first quarter, on a quarterly average basis. It was estimated that shifts of funds from demand deposits to savings accounts with automatic transfer services and to the NOW accounts in New York had depressed growth of M-l by about 3 percentage points in the quarter. Moreover, it appeared that growth of both M-l and M-2 had been affected by a downward shift in the public’s demand for money in relation to income, although the magnitude of that effect was uncertain. In the Committee’s discussion, several members stressed their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
414 Federal Reserve Bulletin □ May 1979 concern about the shortfall in monetary growth relative to the longerrun ranges that the Committee had adopted at its meeting on February 6, 1979, especially in view of the risks that a recession might develop in the period ahead. Supporting the goal of bringing growth of the monetary aggregates up into those ranges over a number of months, particularly because of the uncertainty about the outlook for economic activity, they favored directing operations in the period just after the meeting toward maintaining the money market conditions currently prevailing—as indicated by a federal funds rate of 10 percent or slightly higher—or toward a little less firmness in those conditions. The objective of operations later in the period before the next regular meeting of the Committee would be determined on the basis of the incoming evidence on the behavior of the monetary aggregates, al though it was suggested that the Committee consult again before any change was made in the operational objective for the funds rate. Other members of the Commitee emphasized the recent acceleration of the rise in prices, and they believed that action should be taken to demonstrate that inflation represented the greatest risk to economic stability over a period of time. Accordingly, they advocated directing initial operations in the period ahead toward a slight firming in money market conditions, represented by an increase in the objective for the federal funds rate to about 10% percent. Their prescription for opera tions later in the period called for holding the objective for the funds rate within a relatively narrow range. At the conclusion of the discussion the Committee decided that ranges of tolerance for the annual rates of growth in M-1 and M-2 over the March-April period should be 4 to 8 percent and 3V2 to IVi percent, respectively. The Manager was instructed to direct open market operations initially toward maintaining the federal funds rate at about the current level, represented by a rate of about 10 percent or slightly higher. Subsequently, if the two-month growth rates of M-1 and M-2 appeared to be significantly above or below the midpoints of the indicated ranges, the objective for the funds rate was to be raised or lowered in an orderly fashion within a range of 9% to IOV2 percent. It was also agreed that in assessing the behavior of the aggregates, the Manager should give approximately equal weight to the behavior of M-1 and M-2. As is customary, it was understood that the Chairman might call upon the Committee to consider the need for supplementary instruc Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 415 tions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee’s various objectives. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that in the current quarter growth in real output of goods and services has moderated from the rapid rate in the last quarter of 1978, while the rise in prices has accelerated. In January and February the dollar value of total retail sales rose slightly further. Nonfarm payroll employment continued to expand over the two-month period, but in part because of severe weather, industrial production increased little. The unemployment rate in February, at 5.7 percent, was virtually unchanged from its level in January and in late 1978. Over recent months, on balance, the index of average hourly earnings has continued to rise rapidly. The trade-weighted value of the dollar against major foreign currencies has shown no net change since early February. The U.S. trade deficit in January was larger than the monthly average in the fourth quarter of 1978, to some extent because of a bulge in imports of oil. M-l declined in both January and February, in part because of the continuing effects of the growth of the automatic transfer service. With market interest rates continuing high, inflows of the interest-bearing deposits included in M-2 and M-3 remained at reduced levels, despite substantial flows into money market certificates at both commercial banks and nonbank thrift institutions. Over the two months, consequently, M-2 changed little and M-3 grew at a relatively slow rate. The behavior of all three monetary aggregates was affected by shifts of funds from deposits to money market mutual funds and other liquid assets. Most market interest rates have risen in recent weeks, after having declined in January. Taking account of past and prospective developments in employment, unemployment, production, investment, real income, productivity, inter national trade and payments, and prices, it is the policy of the Federal Open Market Committee to foster monetary and financial conditions that will resist inflationary pressures while encouraging moderate economic expansion and contributing to a sustainable pattern of international trans actions. The Committee agreed that these objectives would be furthered by growth of M-l, M-2, and M-3 from the fourth quarter of 1978 to the fourth quarter of 1979 within ranges of IV2 to AVi percent, 5 to 8 percent, and 6 to 9 percent, respectively. The associated range for bank credit is IV2 to 10V2 percent. These ranges will be reconsidered in July or at any time as conditions warrant. In the short run, the Committee seeks to achieve bank reserve and money market conditions that are broadly consistent with the longer-run ranges for monetary aggregates cited above, while giving due regard to the program for supporting the foreign exchange value of the dollar and to developing conditions in domestic financial markets. Early in the period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
416 Federal Reserve Bulletin □ May 1979 before the next regular meeting, System open market operations are to be directed at maintaining the weekly average federal funds rate at about the current level. Subsequently, operations shall be directed at maintaining the weekly average federal funds rate within the range of 93A to IOV2 percent. In deciding on the specific objective for the federal funds rate the Manager shall be guided mainly by the relationship between the latest estimates of annual rates of growth in the March-April period of M-l and M-2 and the following ranges of tolerance: 4 to 8 percent for M-l and 3Vz to IV2 percent for M-2. If, with approximately equal weight given to M-l and M-2, their rates of growth appear to be significantly above or below the midpoints of the indicated ranges, the objective for the funds rate is to be raised or lowered in an orderly fashion within its range. If the rates of growth in the aggregates appear to be above the upper limit or below the lower limit of the indicated ranges at a time when the objective for the funds rate has already been moved to the corre sponding limit of its range, the Manager will promptly notify the Chair man, who will then decide whether the situation calls for supplementary instructions from the Committee. Votes for this action: Messrs. Miller, Balles, Black, Mayo, Partee, and Mrs. Teeters. Votes against this action: Messrs. Volcker, Coldwell, Kimbrel, and Wallich. Messrs. Volcker, Coldwell, Kimbrel, and Wallich dissented from this action because they favored a somewhat more restrictive policy posture, in view of strong inflationary forces reinforced by pressure on capacity in some industries and in view of the near-term potential for excessive inventory demands. They believed that, despite uncer tainty about prospects for economic activity later this year, some additional firming in money market conditions at this time was appro priate to help in containing inflationary pressures and maintaining renewed confidence in the dollar in foreign exchange markets. 2. Review of Continuing Authorizations This being the first regular meeting of the Federal Open Market Committee following the election of new members from the Federal Reserve Banks to serve for the year beginning March 1, 1979, the Committee followed its customary practice of reviewing all of its continuing authorizations and directives. The Committee reaffirmed the authorization for domestic open market operations, the authori zation for foreign currency operations, and the special authorization Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 417 relating to System obligations in Swiss francs in the forms in which they were then outstanding. Votes for these actions: Messrs. Miller, Volcker, Balles, Black, Coldwell, Kimbrel, Mayo, Partee, Mrs. Teeters, and Mr. Wallich. Votes against these actions: None. In reviewing the authorization for domestic open market operations, the Committee took special note of paragraph 3, which authorizes the Reserve Banks to engage in the lending of U.S. government securities held in the System Open Market Account under such instructions as the Committee might specify from time to time. That paragraph had been added to the authorization on October 7, 1969, on the basis of a judgment by the Committee that in the existing circumstances such lending of securities was reasonably necessary to the effective conduct of open market operations and to the implemen tation of open market policies, and on the understanding that the authorization would be reviewed periodically. At this meeting the Committee concurred in the judgment of the Manager that the lending activity in question remained reasonably necessary and that, accord ingly, the authorization should remain in effect subject to review in six months. 3. Foreign Currency Directive The Committee reaffirmed the foreign currency directive, with a technical modification. In paragraphs 1 and 4(c), the word “proposed” was deleted preceding the references to International Monetary Fund (IMF) Article IV in recognition that Article IV had been put in place since the Committee had last conducted its annual review of all its continuing authorizations and directives. As amended paragraphs 1 and 4(c) read as follows: 1. System operations in foreign currencies shall generally be directed at countering disorderly market conditions, provided that market exchange rates for the U.S. dollar reflect actions and behavior consistent with the IMF Article IV, Section 1. 4. System foreign currency operations shall be conducted: * * * * * C. In a manner consistent with the obligations of the United States in the International Monetary Fund regarding exchange arrangements under the IMF Article IV. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
418 Federal Reserve Bulletin □ May 1979 Votes for this action: Messrs. Miller, Volcker, Balles, Black, Coldwell, Kimbrel, Mayo, Partee, Mrs. Teeters, and Mr. Wallich. Votes against this action: None. 4. Procedural Instructions with Respect to Foreign Currency Operations In December 1976 the Committee agreed upon procedural instructions intended to clarify the respective roles of the Committee, the Foreign Currency Subcommittee, and the Chairman in providing guidance to the Manager of the System Open Market Account with respect to proposed or ongoing foreign currency operations under the authori zation for foreign1 currency operations and the foreign currency direc tive. Under paragraphs IA and IB of the procedural instructions, the Manager is required to obtain clearance from the Foreign Currency Subcommittee (or from the Chairman, if consultation with the Sub committee is not feasible in the time available) for operations in excess of specified daily and intermeeting limits. Under paragraph 2A, the Manager is required to obtain clearance from the Committee (or from the Foreign Currency Subcommittee or from the Chairman, if consul tation with the Committee is not feasible in the time available) for operations in excess of a specified intermeeting limit. In order to facilitate implementation of the broad Government program to strengthen the dollar in foreign markets announced on November 1, 1978, the daily and intermeeting limits were suspended. At this meeting, in light of experience gained in conducting opera tions under procedural instructions, the Committee decided to reinstate limits under the procedural instructions and at the same time to modify them in order to provide more leeway for operations without formal consultations with the Foreign Currency Subcommittee or the Com mittee. In practice, the management of the System Open Market Account consults with members of the Subcommittee on a continuing basis. The limit on daily changes in the System’s overall open position in foreign currencies specified in paragraph IA was raised from $100 million to $300 million, and the intermeeting limit was raised from $300 million to $600 million; the limit on daily changes in the System’s net position in a single foreign currency specified in paragraph IB was raised from $100 million to $150 million, or to $300 million Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 419 when the operation is associated with repayment of swap drawings, and the intermeeting limit was eliminated. The Committee also raised from $500 million to $1.5 billion the intermeeting limit on changes in the System’s overall open position in foreign currencies specified in paragraph 2A. The procedural instructions as amended read as follows: In conducting operations pursuant to the authorization and direction of the Federal Open Market Committee as set forth in the Authorization for Foreign Currency Operations and the Foreign Currency Directive, the Federal Reserve Bank of New York, through the Manager of the System Open Market Account, shall be guided by the following procedural understandings with respect to consultations and clearance with the Com mittee, the Foreign Currency Subcommittee, and the Chairman of the Committee. All operations undertaken pursuant to such clearances shall be reported promptly to the Committee. 1. The Manager shall clear with the Subcommittee (or with the Chair man, if the Chairman believes that consultation with the Subcommittee is not feasible in the time available): A. Any operation that would result in a change in the System’s overall open position in foreign currencies exceeding $300 million on any day or $600 million since the most recent regular meeting of the Committee. B. Any operation that would result in a change on any day in the System’s net position in a single foreign currency exceeding $150 million, or $300 million when the operation is associated with repayment of swap drawings. C. Any operation that might generate a substantial volume of trading in a particular currency by the System, even though the change in the System’s net position in that currency might be less than the limits specified in IB. D. Any swap drawing proposed by a foreign bank not exceeding the larger of (i) $200 million, or (ii) 15 percent of the size of the swap arrangement. 2. The Manager shall clear with the Committee (or with the Subcom mittee, if the Subcommittee believes that consultation with the full Committee is not feasible in the time available, or with the Chairman, if the Chairman believes that consultation with the Subcommittee is not feasible in the time available): A. Any operation that would result in a change in the System’s overall open position in foreign currencies exceeding $1.5 billion since the most recent regular meeting of the Committee. B. Any swap drawing proposed by a foreign bank exceeding the larger of (i) $200 million or (ii) 15 percent of the size of the swap arrangement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
420 Federal Reserve Bulletin □ May 1979 3. The Manager shall also consult with the Subcommittee or the Chairman about proposed swap drawings by the System, and about any operations that are not of a routine character. Votes for this action: Messrs. Miller, Volcker, Balles, Black, Kimbrel, Mayo, Partee, Mrs. Teeters, and Mr.. Wallich. Vote against this action: Mr. Coldwell. Mr. Coldwell dissented from this action because he believed that the new limit of $1.5 billion specified in paragraph 2A was too high. He preferred a limit of $1 billion. 5. Authorization for Domestic Open Market Operations Paragraph 2 of the authorization for domestic open market operations specified a limit of $2 billion on Federal Reserve Bank holdings of special short-term certificates of indebtedness purchased directly from the Treasury. On March 29, 1979, the Committee voted to raise the limit to the statutory ceiling of $5 billion, effective immediately, for the period ending with the close of business on April 17, 1979, the date of the next scheduled meeting. Votes for this action: Messrs. Miller, Volcker, Balles, Black, Coldwell, Mayo, Partee, Mrs. Teeters, Messrs. Wallich, and Roos. Votes against this action: None. Absent: Mr. Kimbrel (Mr. Roos voted as alternate for Mr. Kimbrel). The temporary debt ceiling of $798 billion was scheduled to expire at midnight on March 31, 1979, and the Congress was not expected to act on debt ceiling legislation before April 2, 1979. The Treasury had postponed several auctions of securities designed to raise funds to repay maturing debt and to meet cash outlays in early April. The Committee’s action was taken on recommendation of Chairman Miller to provide maximum operating flexibility for the Treasury. On April 2, 1979, the Committee voted to modify paragraph 1C of the authorization, effective immediately, for the period until the close of business on April 6, 1979, to permit arrangement of one-day repurchase agreements with dealers, in connection with special Treas ury financings, at the rate at which the securities were auctioned. Under paragraph 1C, rates on repurchase agreements with dealers must be determined by competitive bidding, unless otherwise expressly au thorized by the Committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOMC 421 Votes for this action: Messrs. Miller, Volcker, Balles, Black, Coldwell, Kimbrel, Mayo, Partee, Mrs. Teeters, and Mr. Wallich. Votes against this action: None. This action was taken on the recommendation of the management of the System Open Market Account. The management had advised that delay in enactment of a new temporary debt ceiling had created a severe cash problem for the Treasury, which might persist for some days. The Treasury planned to deal with the problem through the sale of sizable amounts of securities for payment on the day of the auction. However, dealers might experience difficulty in bidding in the auction, because awards of the securities might be made too late in the day to allow the dealers to make normal financing arrangements. The Committee’s action provided assistance in marketing such securities by assuring dealers that in the event financing proved to be difficult to obtain for the first day on which the securities were issued, financing could be made available for one day through repurchase agreements at the same rate at which the securities were sold. Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the board’s Annual Report, are released about a month after the meeting and are subsequently published in the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
422 Law Department S tatu tes, re g u la tio n s, in te rp re ta tio n s, an d d ecisio n s Amendment to Equal Credit Opportunity Officers of Member Banks.” Amended Regulation O implements new section 22(h) of the Federal The Board of Governors has amended its Regu Reserve Act, recently enacted by Congress as lation B, Equal Credit Opportunity, to clarify that section 104 of the Financial Institutions Regu it covers persons, such as real estate brokers, home latory and Interest Rate Control Act of 1978 builders, and automobile dealers, who regularly (“FIRA”)(P.L. 95-630). refer applicants or prospective applicants to credi Effective March 10, 1979, Regulation O is tors, or who select or offer to select creditors to amended as set forth below: whom requests for credit may be made. Effective May 21, 1979, section 202.2(1) is Part 215—Loans to Executive Officers, amended to read as follows: Directors, and Principal Shareholders of Member Banks Section 202.2— Definitions and Rules of Construction Contents * * * * * Section 215.1 Authority, Purpose, and Scope (1) Creditor means a person who, in the ordi 215.2 Definitions nary course of business, regularly participates in 215.3 Extension of Credit the decision of whether or not to extend credit. 215.4 General Prohibitions The term includes a creditor’s assignee, transferee, 215.5 Additional Restrictions on Loans to or subrogee who so participates. For purposes of Executive Officers of Member Banks §§ 202.4 and 202.5(a), the term also includes a 215.6 Extensions of Credit Outstanding on person who, in the ordinary course of business, March 10, 1979 regularly refers applicants or prospective appli 215.7 Records of Member Banks cants to creditors, or selects or offers to select 215.8 Reports by Executive Officers creditors to whom requests for credit may be 215.9 Reports by Member Banks made. A person is not a creditor regarding any 215.10 Civil Penalties violation of the Act or this Part committed by another creditor unless the person knew or had Section 215.1—Authority, Purpose, and Scope reasonable notice of the act, policy, or practice that constituted the violation before its involve (a) Authority. This Part is issued pursuant to sections 11 (i), 22(g), and 22(h) of the Federal ment with the credit transaction. The term does Reserve Act (12 U.S.C. 248(i), 375a, and not include a person whose only participation in 375b(7)). a credit transaction involves honoring a credit card. (b) Purpose and Scope. This Part governs any extension of credit by a member bank to an exec * * * * * utive officer, director, or principal shareholder of (1) the member bank, (2) a bank holding company of which the member bank is a subsidiary, and Revision of Loans (3) any other subsidiary of that bank holding company. It also applies to any extension of credit to Executive Officers, Directors, and by a member bank to (1) a company controlled Principal Shareholders of Member Banks by such a person and (2) a political or campaign The Board of Governors has amended its Regu committee that benefits or is controlled by such lation O, formerly entitled “Loans to Executive a person. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
423 Section 215.2—Definitions holding company (as defined in 12 U.S.C. 1841(a)) of which the member bank is a subsidi For the purposes of this Part, the following ary, and (3) any director of any other subsidiary definitions apply: of that bank holding company. An advisory direc (a) “Company” means any corporation, part tor is not considered a director if the advisory nership, trust (business or otherwise), association, director (1) is not elected by the shareholders of joint venture, pool syndicate, sole proprietorship, the company or bank, (2) is not authorized to vote unincorporated organization, or any other form of on matters before the board of directors, and (3) business entity not specifically listed herein. How provides solely general policy advice to the board ever, the term does not include (1) an insured bank of directors. (as defined in 12 U.S.C. 1813(h)) or (2) a cor (d) “Executive officer” of a company or bank poration the majority of the shares of which are means a person who participates or has authority owned by the United States or by any State. to participate (other than in the capacity of a (b)(1) “Control of a company or bank” means director) in major policymaking functions of the that a person directly or indirectly, or acting company or bank, whether or not: (1) the officer through or in concert with one or more persons: has an official title, (2) the title designates the (1) owns, controls, or has the power to vote 25 officer an assistant, or (3) the officer is serving per cent or more of any class of voting securities without salary or other compensation.1 The chair of the company or bank; man of the board, the president, every vice presi (ii) controls in any manner the election of a dent, the cashier, the secretary, and the treasurer majority of the directors of the company or bank; of a company or bank are considered executive or officers, unless (1) the officer is excluded, by (iii) has the power to exercise a controlling resolution of the board of directors or by the influence over the management or policies of the bylaws of the bank or company, from participation company or bank. (other than in the capacity of a director) in major (2) A person is presumed to have control, in policymaking functions of the bank or company, cluding the power to exercise a controlling influ and (2) the officer does not actually participate ence over the management or policies, of a com therein. For the purpose of sections 215.4 and pany or bank if: 215.7 below, an executive officer of a member (i) the person is (A) an executive officer or bank includes an executive officer of (1) a bank director of the company or bank and (B) directly holding company (as defined in 12 U.S.C. or indirectly owns, controls, or has the power to 1841(a)) of which the member bank is a subsidiary vote more than 10 per cent of any class of voting and (2) any other subsidiary of that bank holding securities of the company or bank; or company, unless the executive officer of the sub (ii) (A) the person directly or indirectly owns, sidiary (i) is excluded (by name or by title) from controls, or has the power to vote more than 10 participation in major policymaking functions of per cent of any class of voting securities of the the member bank by resolutions of the boards of company or bank, and (B) no other person owns, directors of both the subsidiary and the member controls, or has the power to vote a greater per bank, and (ii) does not actually participate in such centage of that class of voting securities. major policymaking functions. (3) An individual is not considered to have (e) “Immediate family” means the spouse of control, including the power to exercise a control an individual, the individual’s minor children, and ling influence over the management or policies, any of the individual’s children (including adults) of a company or bank solely by virtue of the residing in the individual’s home. individual’s position as an officer or director of (f) The “lending limit” for a member bank is the company or bank. an amount equal to the limit on loans to a single (4) A person may rebut a presumption estab lished by paragraph (b)(2) of this section by sub 1. The term is not intended to include persons who may have official titles and may exercise a certain measure of mitting to the appropriate Federal banking agency discretion in the performance of their duties, including discre (as defined in 12 U.S.C. 1813 (q)) written materi tion in the making of loans, but who do not participate in the determination of major policies of the bank or company als that, in the agency’s judgment, demonstrate and whose decisions are limited by policy standards fixed by an absence of control. the senior management of the bank or company. For example, (c) “Director of a member bank” includes (1) the term does not include a manager or assistant manager of a branch of a bank unless that individual participates, or is any director of a member bank, whether or not authorized to participate, in major policymaking functions of receiving compensation, (2) any director of a bank the bank or company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
424 Federal Reserve Bulletin □ May 1979 borrower established by section 5200 of the Re U.S.C. 1841(d), but does not include a subsidiary vised Statutes, 12 U.S.C. 84. This amount is 10 of a member bank. per cent of the bank’s capital stock and unimpaired surplus or any higher amount permitted by section Section 215.3—Extension of Credit 5200 of the Revised Statutes for the types of obligations listed therein as exceptions to the 10 (a) An extension of credit is a making or re per cent limit. A member bank’s capital stock and newal of any loan, a granting of a line of credit, unimpaired surplus equals the sum of (1) the “total or an extending of credit in any manner whatso equity capital” of the member bank reported on ever, and includes: its most recent consolidated report of condition (1) a purchase under repurchase agreement of filed under 12 U.S.C. 1817(a)(3), (2) any subor securities, other assets, or obligations; dinated notes and debentures approved as an addi (2) an advance by means of an overdraft, cash tion to the member bank’s capital structure by the item, or otherwise; appropriate Federal banking agency, and (3) any (3) issuance of a standby letter of credit (or other valuation reserves created by charges to the mem similar arrangement regardless of name or descrip ber bahk’s income. tion) or an ineligible acceptance, as those terms are (g) “Member bank” means any banking insti defined in section 208.8(d) of this Chapter; tution that is a member of the Federal Reserve (4) an acquisition by discount, purchase, ex System. The term does not include any foreign change, or otherwise of any note, draft, bill of bank (as defined in 12 U.S.C. 3101(b)(7)) that exchange, or other evidence of indebtedness upon maintains a branch in the United States, whether which a person may be liable as maker, drawer, or not the branch is insured (within the meaning endorser, guarantor, or surety; of 12 U.S.C. 1813(s)) and regardless of the (5) a discount of promissory notes, bills of operation of 12 U.S.C. 1813(h) and 12 U.S.C. exchange, conditional sales contracts, or similar 1828(j)(2). paper, whether with or without recourse; but the (h) “Pay an overdraft on an account” means acquisition of such paper by a member bank from to pay an amount upon the order of an account another bank, without recourse, shall not be con holder in excess of funds on deposit in the account. sidered a discount by the member bank for the (i) “Person” means an individual or a com other bank; pany. (6) an increase of an existing indebtedness, but (j) “Principal shareholder” means an individ not if the additional funds are advanced by the ual or a company (other than an insured bank) bank for its own protection for (i) accrued interest that directly or indirectly, or acting through or in or (ii) taxes, insurance, or other expenses inciden concert with one or more persons, owns, controls, tal to the existing indebtedness; or has the power to vote more than 10 per cent (7) an advance of unearned salary or other of any class of voting securities of a member bank unearned compensation for a period in excess of or company. However, for the purposes of section 30 days; and 215.4(c) below, this percentage shall be “more (8) any other transaction as a result of which than 18 per cent” if the member bank is located a person becomes obligated to pay money (or its in a city, town, or village with a population of equivalent) to a bank, whether the obligation arises less than 30,000. Shares owned or controlled by directly or indirectly, or because of an endorse a member of an individual’s immediate family are ment on an obligation or otherwise, or by any considered to be held by the individual. A means whatsoever. principal shareholder of a member bank includes (b) An extension of credit does not include: (1) a principal shareholder of a bank holding (1) an advance against accrued salary or other company (as defined in 12 U.S.C. 1841(a)) of accrued compensation, or an advance for the pay which the member bank is a subsidiary and (2) ment of authorized travel or other expenses in a principal shareholder of any other subsidiary of curred or to be incurred on behalf of the bank; that bank holding company. (2) a receipt by a bank of a check deposited (k) “Related interest” means (1) a company in or delivered to the bank in the usual course that is controlled by a person or (2) a political of business unless it results in the carrying of a or campaign committee that is controlled by a cash item for or the granting of an overdraft (other person or the funds or services of which will than an inadvertent overdraft in a limited amount benefit a person. that is promptly repaid, as described in section (1) “Subsidiary” has the meaning given in 12 215.4(d) below); Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 425 (3) an acquisition of a note, draft, bill of ex bank may extend credit to any of its executive change, or other evidence of indebtedness through officers, directors, or principal shareholders or to (i) a merger or consolidation of banks or a similar any related interest of that person unless the ex transaction by which a bank acquires assets and tension of credit: (1) is made on substantially the assumes liabilities of another bank or similar or same terms, including interest rates and collateral, ganization or (ii) foreclosure on collateral or simi as those prevailing at the time for comparable lar proceeding for the protection of the bank, transactions by the bank with other persons that provided that such indebtedness is not held for a are not covered by this Part and who are not period of more than three years from the date of employed by the bank, and (2) does not involve the acquisition, subject to extension by the appro more than the normal risk of repayment or present priate Federal banking agency for good cause; other unfavorable features. (4) (i) an endorsement or guarantee for the (b) Prior Approval. (1) No member bank may protection of a bank of any loan or other asset extend credit or grant a line of credit to any of previously acquired by the bank in good faith or its executive officers, directors or principal share (ii) any indebtedness to a bank for the purpose holders or to any related interest of that person of protecting the bank against loss or of giving in an amount that, when aggregated with the financial assistance to it; or amount of all other extensions of credit and lines (5) indebtedness of $5,000 or less arising by of credit by the member bank to that person and reason of any general arrangement by which a to all related interests of that person, exceeds bank (i) acquires charge or time credit accounts $25,000, unless (i) the extension of credit or line or (ii) makes payments to or on behalf of partici of credit has been approved in advance by a pants in a bank credit card plan, check credit plan, majority of the entire board of directors of that interest bearing overdraft credit plan of the type bank and (ii) the interested party has abstained specified in section 215.4(d) below, or similar from participating directly or indirectly in the open-end credit plan, provided: (A) the indebt voting. edness does not involve prior individual clearance (2) Approval by the board of directors under or approval by the bank other than for the purposes paragraph (b)(1) of this section is not required for of determining authority to participate in the ar an extension of credit that is made pursuant to rangement and compliance with any dollar limit a line of credit that was approved under paragraph under the arrangement, and (B) the indebtedness (b)(1) of this section within 14 months of the date is incurred under terms that are not more favorable of the extension of credit. The extension of credit than those offered to the general public. must also be in compliance with the requirements (c) Non-interest-bearing deposits to the credit of section 215.4(a) above. of a bank are not considered loans, advances, or (3) Participation in the discussion, or any at extensions of credit to the bank of deposit; nor tempt to influence the voting, by the board of is the giving of immediate credit to a bank upon directors regarding an extension of credit consti uncollected items received in the ordinary course tutes indirect participation in the voting by the of business considered to be a loan, advance, or board of directors on an extension of credit. extension of credit to the depositing bank. (c) Aggregate Lending Limit. No member bank (d) For purposes of sections 215.4(b) and (c) may extend credit to any of its executive officers below, an extension of credit by a member bank or principal shareholders or to any related interest is considered to have been made at the time the of that person2 in an amount that, when aggregated bank enters into a binding commitment to make with the amount of all other extensions of credit the extension of credit. by the member bank to that person and to all (e) A participation without recourse is consid related interests of that person, exceeds the lending ered to be an extension of credit by the partici limit of the member bank specified in section pating bank, not by the originating bank. 215.2(f) above. This prohibition does not apply (f) An extension of credit is considered made to an extension of credit by a member bank to to a person covered by this Part to the extent that the proceeds of the extension of credit are used for the tangible economic benefit of, or are trans 2. This prohibition does not apply to member bank loans ferred to, such a person. to a director of the member bank or to a related interest of the director, unless the director is also an executive officer or principal shareholder. See also the definition of principal Section 215.4—General Prohibitions shareholder in section 215.2(j) above, in the case of a member bank located in a city, town or village with a population of (a) Terms and Creditworthiness. No member less than 30,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
426 Federal Reserve Bulletin □ May 1979 a bank holding company (as defined in 12 U.S.C. (1) $20,000 outstanding at any one time to 1841(a)) of which the member bank is a subsidiary finance the education of the executive officer’s or to any other subsidiary of that bank holding children; company. (2) $60,000 outstanding at any one time to (d) Overdrafts. No member bank may pay an finance the purchase, construction, maintenance, overdraft of an executive officer or director of the or improvement of a residence of the executive bank3 on an account at the bank, unless the pay officer, if the extension of credit is secured by a ment of funds is made in accordance with (1) a first lien on the residence and the residence is written, preauthorized, interest-bearing extension owned (or expected to be owned after the exten of credit plan that specifies a method of repayment sion of credit) by the executive officer; and or (2) a written, preauthorized transfer of funds (3) $10,000 outstanding at any one time for a from another account of the account holder at the purpose not otherwise specifically authorized bank. This prohibition does not apply to payment under this paragraph. of inadvertent overdrafts on an account in an (d) Any extension of credit by a member bank aggregate amount of $1,000 or less, provided (1) to any of its executive officers shall be: (1) prom the account is not overdrawn for more than 5 ptly reported to the member bank’s board of business days, and (2) the member bank charges directors; (2) in compliance with the requirements the executive officer or director the same fee of section 215.4(a) above; (3) preceded by the charged any other customer of the bank in similar submission of a detailed current financial statement circumstances. of the executive officer; and (4) made subject to the condition that the extension of credit will, at; Section 215.5—Additional Restrictions on the option of the member bank, become due and Loans to Executive Officers of Member Banks payable at any time that the officer is indebted to any other bank or banks in an aggregate amount (a) No member bank may extend credit to any greater than the amount specified for a category of its executive officers,4 and no executive officer of credit in paragraph (c) of this section. of a member bank shall borrow from or otherwise become indebted to the bank, except in the Section 215.6—Extensions of Credit amounts, for the purposes, and upon the conditions Outstanding on March 10, 1979 specified in paragraphs (c) and (d) of this section. (b) No member bank may extend credit in an (a) Any extension of credit that was outstanding aggregate amount greater than $10,000 out on March 10, 1979, and that would, if made on standing at any one time to a partnership in which or after March 10, 1979, violate section 215.4(c) one or more of the executive officers of the mem above, shall be reduced in amount by March 10, ber bank are partners and, either individually or 1980, to be in compliance with the lending limit together, hold a majority interest. For the purposes in section 215.4(c). Any renewal or extension of of paragraph (c)(3) below, the total amount of such an extension of credit on or after March 10, credit extended by a member bank to such part 1979, shall be made only on terms that will bring nership is considered to be extended to each exec the extension of credit into compliance with the utive officer of the member bank who is a member lending limit of section 215.4(c) by March 10, of the partnership. 1980. However, any extension of credit made (c) A member bank is authorized to extend before March 10, 1979, that bears a specific ma credit to an executive officer of the bank in an turity date of March 10, 1980, or later, shall be aggregate amount not to exceed: repaid in accordance with its repayment schedule in existence on or before March 10, 1979. (b) If a member bank is unable to bring all 3. This prohibition does not apply to the payment by a extensions of credit outstanding on March 10, member bank of an overdraft of a principal shareholder of the member bank, unless the principal shareholder is also an 1979, into compliance as required by paragraph executive officer or director. This prohibition also does not (a) of this section, the member bank shall promptly apply to the payment by a member bank of an overdraft of report that fact to the Comptroller of the Currency, a related interest of an executive officer, director, or principal shareholder of the member bank. in the case of a national bank, or to the appropriate 4. Sections 215.5, 215.8, and 215.9 of Regulation O imple Federal Reserve Bank, in the case of a State ment section 22(g) of the Federal Reserve Act and do not apply member bank, and explain the reasons why all the to nonmember banks. For the purposes of these sections, an executive officer of a member bank does not include an execu extensions of credit cannot be brought into com tive officer of a bank holding company of which the member pliance. The Comptroller or the Reserve Bank, as bank is a subsidiary or any other subsidiary of that bank holding company. the case may be, is authorized, on the basis of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 427 good cause shown, to extend the March 10, 1980, association of any person, copartnership, associa date for compliance for any extension of credit tion, or corporation shall at no time exceed 10 for not more than two additional one-year periods. per centum of the amount of the capital stock of such association actually paid in and unimpaired Section 215.7—Records of Member Banks and 10 per centum of its unimpaired surplus fund. The term “obligations” shall mean the direct Each member bank shall maintain records nec liability of the maker or acceptor of paper dis essary for compliance with the requirements of this counting with or sold to such association and the Part. These records shall (a) identify all executive liability of the indorser, drawer, or guarantor who officers, directors, and principal shareholders of obtains a loan from or discounts paper with or the member bank and the related interests of these sells paper under his guaranty to such association persons and (b) specify the amount and terms of and shall include in the case of obligations of a each extension of credit by the member bank to copartnership or association the obligations of the these persons and to their related interests. Each several members thereof and shall include in the member bank shall request at least annually that case of obligations of a corporation all obligations each executive officer, director, or principal of all subsidiaries thereof in which such corpora shareholder of the member bank identify the re tion owns or controls a majority interest. Such lated interests of that person. limitation of 10 per centum shall be subject to the Section 215.8—Reports by Executive Officers following exceptions: (1) Obligations in the form of drafts or bills Each executive officer5 of a member bank who of exchange drawn in good faith against actually becomes indebted to any other bank or banks in existing values shall not be subject under this an aggregate amount greater than the amount spe section to any limitation based upon such capital cified for a category of credit in section 215.5(c) and surplus. above, shall, within 10 days of the date the in (2) Obligations arising out of the discount of debtedness reaches such a level, make a written commercial or business paper actually owned by report to the board of directors of the officer’s the person, copartnership, association, or corpora bank. The report shall state the lender’s name, the tion negotiating the same shall not be subject under date and amount of each extension of credit, any this section to any limitation based upon such security for it, and the purposes for which the capital and surplus. proceeds have been or are to be used. (3) Obligations drawn in good faith against actually existing values and secured by goods or Section 215.9—Reports by Member Banks commodities in process of shipment shall not be Each member bank shall include with (but not subject under this section to any limitation based as part of) each report of condition (and copy upon such capital and surplus. thereof) filed pursuant to 12 U.S.C. 1817(a)(3) a (4) Obligations as indorser or guarantor of report of all extensions of credit made by the notes, other than commercial or business paper member bank to its executive officers6 since the excepted under (2) hereof, having a maturity of date of the bank’s previous report of condition. not more than six months, and owned by the person, corporation, association, or copartnership Section 215.10—Civil Penalties indorsing and negotiating the same, shall be sub ject under this section to a limitation of 15 per As specified in section 29 of the Federal Reserve centum of such capital and surplus in addition to Act (12 U.S.C. 504), any member bank, or any such 10 per centum of such capital and surplus. officer, director, employee, agent, or other person (5) Obligations in the form of banker’s accept participating in the conduct of the affairs of the ances of other banks of the kind described in bank, that violates any provision of this Part is sections 372 and 373 of this title shall not be subject to a civil penalty of not more than $1,000 subject under this section to any limitation based per day for each day during which the violation upon such capital and surplus. continues. (6) Obligations of any person, copartnership, Appendix—Section 5200 of the Revised Statutes association or corporation, in the form of notes or drafts secured by shipping documents, ware The total obligations to any national banking house receipts, or other such documents transfer ring or securing title covering readily marketable 5. See note 4 above. nonperishable staples when such property is fully 6. See note 4 above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
428 Federal Reserve Bulletin □ May 1979 covered by insurance, if it is customary to insure than 115 per centum of the face amount of such such staples shall be subject under this section to additional obligation but this exception shall not a limitation of 15 per centum of such capital and apply to obligations of any one person, copartner surplus in addition to such 10 per centum of such ship, association, or corporation arising from the capital and surplus when the market value of such same transactions and/or secured by the identical staples securing such obligation is not at any time staples for more than six months. less than 115 per centum of the face amount of (7) Obligations of any person, copartnership, such obligation, and to an additional increase of association, or corporation in the form of notes limitation of 5 per centum of such capital and or drafts secured by shipping documents or instru surplus in addition to such 25 per centum of such ments transferring or securing title covering live capital and surplus when the market value of such stock or giving a lien on livestock when the market staples securing such additional obligation is not value of the livestock securing the obligation is at any time less than 120 per centum of the face not at any time less than 115 per centum of the amount of such additional obligation, and to a face amount of the notes covered by such docu further additional increase of limitation of 5 per ments shall be subject under this section to a centum of such capital and surplus in addition to limitation of 15 per centum of such capital and such 30 per centum of such capital and surplus surplus in addition to such 10 per centum of such when the market value of such staples securing capital and surplus. Obligations arising out of the such additional obligation is not at any time less discount by dealers in dairy cattle of paper given than 125 per centum of the face amount of such in payment for dairy cattle, which bear a full additional obligation, and to a further additional recourse endorsement or unconditional guarantee increase of limitation of 5 per centum of such of the seller and are secured by the cattle being capital and surplus when the market value of such sold, shall be subject under this section to a staples securing such additional obligation is not limitation of 15 per centum of such capital and at any time less than 130 per centum of the face surplus in addition to such 10 per centum of such amount of such additional obligation, and to a capital and surplus. further additional increase of limitation of 5 per (8) Obligations of any person, copartnership, centum of such capital and surplus in addition to association, or corporation secured by not less than such 40 per centum of such capital and surplus a like amount of bonds or notes of the United when the market value of such staples securing States issued since April 24, 1917, or certificates such additional obligation is not at any time less of indebtedness of the United States, treasury bills than 135 per centum of the face amount of such of the United States or obligations fully guaranteed additional obligation, and to a further additional both as to principal and interest by the United increase of limitation of 5 per centum of such States, shall (except to the extent permitted by capital and surplus in addition to such 45 per rules and regulations prescribed by the Comp centum of such capital and surplus when the mar troller of the Currency, with the approval of the ket value of such staples securing such additional Secretary of the Treasury) be subject under this obligation is not at any time less than 140 per section to a limitation of 15 per centum of such centum of the face amount of such additional capital and surplus in addition to such 10 per obligation, but this exception shall not apply to centum of such capital and surplus. obligations of any one person, copartnership, as (9) Obligations representing loans to any na sociation, or corporation arising from the same tional banking association or to any banking insti transactions and/or secured by the identical staples tution organized under the laws of any State, or for more than ten months. Obligations of any to any receiver, conservator, or superintendent of person, copartnership, association, or corporation banks, or to any other agent, in charge of the in the form of notes or drafts secured by shipping business and property of any such association or documents, warehouse receipts, or other such banking institution, when such loans are approved documents transferring or securing title covering by the Comptroller of the Currency, shall not be refrigerated or frozen readily marketable staples subject under this section to any limitation based when such property is fully covered by insurance, upon such capital and surplus. shall be subject under this section to a limitation (10) Obligations shall not be subject under this of 15 per centum of such capital and surplus in section to any limitation based upon such capital addition to such 10 per centum of such capital and surplus to the extent that such obligations are and surplus when the market value of such staples secured or covered by guaranties, or by commit securing such obligation is not at any time less ments or agreements to take over or to purchase, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 429 made by any Federal Reserve bank or by the primarily upon each such maker for the payment United States or any department, bureau, board, of such obligations, the limitations of this section commission, or establishment of the United States, as to the obligations of each such maker shall be including any corporation wholly owned directly the sole applicable loan limitation: Provided fur or indirectly by the United States: Provided, That ther, That such certification shall be in writing and such guaranties, agreements, or commitments are shall be retained as part of the records of such unconditional and must be performed by payment bank. of cash or its equivalent within sixty days after (14) Obligations of the Student Loan Marketing demand. The Comptroller of the Currency is Association shall not be subject to any limitation hereby authorized to define the terms herein used based upon such capital and surplus. if and when he may deem it necessary. (11) Obligations of a local public agency (as Amendments to Rules defined in section 1460(h) of Title 42) or of a Regarding Delegation of A uthority public housing agency (as defined in the United States Housing Act of 1937, as amended); which The Board of Governors has delegated authority have a maturity of not more than eighteen months for certain Federal Reserve Bank matters to the shall not be subject under this section to any Board’s General Counsel, the Staff Director for limitation, if such obligations are secured by an Federal Reserve Bank Activities, and to the Fed agreement between the obligor agency and the eral Reserve Banks. Secretary of Housing and Urban Development in Effective March 21, 1979, section 265.2 is which the agency agrees to borrow from the Sec amended as follows: retary, and the Secretary agrees to lend to the 1. 12 CFR § 265.2(b) is amended by adding agency, prior to the maturity of such obligations, a new paragraph (8) to read as follows: monies in an amount which (together with any Section 265.2—Specific functions delegated to other monies irrevocably committed to the pay Board employees and Federal Reserve Banks. ment of interest on such obligations) will suffice to pay the principal of such obligations with inter * * * * * est to maturity, which monies under the terms of (b) The General Counsel of the Board (or in said agreement are required to be used for that the General Counsel’s absence, the acting General purpose. Counsel) is authorized: (12) Obligations insured by the Secretary of Agriculture pursuant to the Bankhead-Jones Farm Tenant Act, as amended, or the Act of August (8) to approve provisions of Federal Reserve 28, 1937, as amended (relating to the conservation Bank operating circulars related to uniform ser of water resources), or sections 1471-1485 of Title vices. 42, shall be subject under this section to a limita 2. 12 CFR § 265.(e) is deleted and reserved. tion of 15 per centum of such capital and surplus 3. 12 CFR § 265.2(d) is amended by revising in addition to such 10 per centum of such capital paragraphs (1), (2), and (5) and adding new para and surplus. graphs (6)-(8) to read as follows: (13) Obligations as endorser or guarantor of negotiable or non-negotiable installment consumer Section 265.2—Specific functions delegated to paper which carriers a full recourse endorsement Board employees and to Federal Reserve or unconditional guarantee by the person, copart Banks. nership, association, or corporation transferring the same, shall be subject under this section to a limitation of 15 per centum of such capital and (d) The Staff Director for Federal Reserve Bank surplus in addition to such 10 per centum of such Activities or the Staff Director’s designee is au capital and surplus: Provided, however, That if thorized; the bank’s files or the knowledge of its officers (1) to approve of the financial condition of each maker of such (i) requests of up to $500,000 for each Reserve obligations is reasonably adequate, and upon cer Bank for the purchase or lease of computer main tification by an officer of the bank designated for frames, if the acquisition is consistent with the that purpose by the board of directors of the bank, long-range automation plan approved by the Board that the responsibility of each maker of such obli of Governors, and gations has been evaluated and the bank is relying (ii) requests of up to $500,000 for each Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
430 Federal Reserve Bulletin □ May 1979 Bank for purchase or lease of automation or com Board Employees and to Federal Reserve munications equipment not specifically included in Banks. the long-range automation plan approved by the (f) Each Federal Reserve Bank is authorized: Board of Governors, except computer mainframes. * * * * * (2) to approve proposed remodeling or renova tion of or additions to Reserve Bank or Branch (25) to set the salaries of its officers below the buildings if the cost is over $500,000, but not over level of First Vice President (including the General $1,000,000, and if the project has been included Auditor) within guidelines issued by the Board of in the capital or operating budget approved by the Governors. Board of Governors. * * * * * * * * * * (34) under the provisions of sections 3 and 11 j (5) to review Reserve Bank agreements with of the Federal Reserve Act (12 U.S.C. §521 and architects and other consultants for new con 248 (j)) to undertake remodeling, renovation of struction or renovation projects over $100,000, but or addition to its existing buildings or those of not over $1,000,000. its branches if the expenditure for any completed * * * * * project is not over $500,000, and if it has been (6) within the contingency allowance for a new included in the capital or operating budget ap building project, to approve individual con proved by the Board of Governors. struction change orders over $500,000, but not * * * * * over $1,000,000. (39) under the provisions of the twenty-first (7) to exercise supervision over the following paragraph of section 4 of the Federal Reserve Act matters relating to Federal Reserve notes: (12 U.S.C. 306), to approve the appointment of (i) printing orders and assistant Federal Reserve agents (including repre (ii) contracts for shipment, giving consideration sentatives or alternate representatives of such to: agents). (a) the desirability of maintaining a two-year (40) under the provisions of the sixteenth para reserve supply of $5 and $100 notes and a one-year graph of section 4 of the Federal Reserve Act (12 supply of $1 notes, and U.S.C. 304), to classify member banks for the (b) awarding contracts to the lowest bidder de purposes of electing Federal Reserve Bank class termined to be qualified. A and class B directors, giving consideration to: (8) to modify the Reserve Bank Accounting (i) the statutory requirement that each of the Manual (after considering the views of the Sub three groups shall consist as nearly as may be of committee on Accounting Systems, Budgets and banks of similar capitalization, and Expenditures of the Committee on Management (ii) the desirability that every member bank Systems and Support Services of the Conference have the opportunity to vote for a class A or a of First Vice Presidents) in accordance with gen class B director at least once every three years. erally accepted accounting practices for banks, (41) to increase its operating budget up to 1 except that the following will not be authorized: per cent of the annual operating budget. (i) reserves for contingencies, (42) to purchase or lease new automation or (ii) charge-off of land to below estimated mar communications equipment, except computer ket value, mainframes, at a cost of up to $1,000,000, if (iii) charge-offs of buildings, or special allow included in long-range automation plans and capi ances for depreciation that would result in full tal or operating budgets approved by the Board depreciation before 40 years after the date of of Governors. completion of the structure, and (43) to set the salary structure for nonofficial (iv) write-down of Government securities employees within guidelines issued by the Board below cost, including establishment of a valuation of Governors, and to approve payment of salary reserve. above or below established salary ranges for one 4. 12 CFR 265.2(f) is amended by revising year. paragraphs (25) and (34) and adding new para (44) to approve payment of separation allow graphs (39)-(50) to read as follows: ances upon the involuntary termination of em Section 265.2—Specific Functions Delegated to ployment of officers below the level of First Vice Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 431 President (separation payments made to the Gen the Federal Reserve Act (12 U.S.C. § 371b) and eral Auditor may be approved by the Chairman §§ 217.4(a) and (d) of Regulation Q (12 C.F.R. of the Board of Directors). §§ 217.4(a) and (d)) to permit member banks to (45) in connection with building projects: waive the penalty for early withdrawal of a time (i) to enter into agreements with architects and deposit in § 217.4(d) (Regulation Q), if all of the other consultants up to $100,000; following conditions are met: (ii) to administer the contingency allowance; (i) The President of the United States declares (iii) within the contingency allowance for a new an area a major disaster area or an emergency area building, to approve construction change orders pursuant to section 301 of the Disaster Relief Act up to $500,000; of 1974 (42 U.S.C. §5141) and Executive Order (iv) to approve exceptions to Buy American No. 11795 of July 11, 1974. Policy for construction materials within authorized (ii) A waiver is limited in effectiveness to de dollar limits; and positors suffering disaster or emergency-related (v) to award contracts to other than the lowest losses in the officially designated disaster or emer bidder within authorized dollar limits. gency area. (46) to sell real property (prior consultation (iii) The appropriate Reserve Bank recom with the Director of the Division of Federal Re mends approval. serve Bank Operations is required for any property (iv) All relevant divisions of the Board’s staff appraised at more than $1,000,000). recommend approval. (47) to purchase or lease new fixed or operating equipment, other than automation or com munications equipment, costing up to $250,000, Bank Holding Company if identified in capital or operating budgets ap proved by the Board. and Bank Merger Orders (48) to make changes in territories served by Issued by the Board of Governors offices within its district for specific functions. Orders Under Section 3 (49) to extend the employment of officers and of Bank Holding Company Act employees, except the President and First Vice President, for one year beyond mandatory retire Minneapolis Holding Company, ment age. Minneapolis, Minnesota (50) to grant performance cash awards. Order Approving (1) to Senior Vice Presidents, if approved by Formation of a Bank Holding Company the President, and (ii) to the General Auditor, if approved by the Minneapolis Holding Company, Minneapolis, Chairman of the Board of Directors. Minnesota, has applied for the Board’s approval The Board of Governors has delegated to the under section 3(a)(1) of the Bank Holding Com Secretary of the Board authority to permit member pany Act (12 U.S.C. § 1842(a)(1)) of formation banks to waive the penalty for early withdrawal of a bank holding company by acquiring 97 per of a time deposit in § 217.4(d) of Regulation Q cent of the voting shares of Bank of Minneapolis for depositors suffering emergency-related losses and Trust Company, Minneapolis, Minnesota in areas declared an emergency area by the Presi (“Bank”). dent. Notice of the application, affording opportunity Effective April 26, 1979, paragraph 265.2 for interested persons to submit comments and (a)(18) is amended to read as follows: views, has been given in accordance with section 3(b) of the Act. The time for filing comments and Section 265.2—Specific Functions Delegated to views has expired, and the Board has considered Board Employees and Federal Reserve Banks the application and all comments received in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). (2) The Secretary of the Board (or, in the Applicant is a nonoperating Minnesota corpora Secretary’s absence, the Acting Secretary) is au tion organized for the purpose of becoming a bank thorized: holding company by acquiring Bank. Bank has total deposits of $28.0 million, representing ap (18) Under the provisions of section 19(j) of proximately 0.2 percent of total commercial bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
432 Federal Reserve Bulletin □ May 1979 deposits in Minnesota.1 Upon consummation of On the basis of the record, the application is the proposal, Applicant would control the 62nd approved for the reasons summarized above. The largest bank in the state. Bank is the 30th largest transaction shall not be consummated (a) before of 115 banking organizations within the Min- the thirtieth day following the effective date of this neapolis-St. Paul banking market (the relevant Order, or (b) later than three months after the market) and holds 0.3 percent of total commercial effective date of this Order, unless such period bank deposits in the market.2 The subject proposal is extended for good cause by the Board or by is essentially a reorganization that places current the Federal Reserve Bank of Minneapolis pursuant individual ownership interests in a corporation to delegated authority. owned by the same individuals, and it does not By order of the Board of Governors, effective appear that consummation of the proposal would April 27, 1979. eliminate any existing competition, increase the Voting for this action: Chairman Miller and Gover concentration of banking resources, or have an nors Wallich, Partee, and Teeters. Absent and not adverse effect on the development of future com voting: Governor Coldwell. petition in the market. Therefore, the Board finds that competitive considerations are consistent with (Signed) Griffith L. Garwood, approval. [seal] Deputy Secretary of the Board. The financial and managerial resources of Ap plicant are largely dependent upon those of Bank.3 It appears from the facts of record that Bank’s Northwest Bancorporation, condition has improved since the current owners Minneapolis, Minnesota acquired Bank and that income to be derived from Order Approving Acquisition of Bank Bank would provide Applicant with sufficient rev enue to service its acquisition debt while main Northwest Bancorporation, Minneapolis, Min taining acceptable capital levels at Bank. It appears nesota, a bank holding company within the mean from these and other facts of record that the ing of the Bank Holding Company Act, has ap financial and managerial resources of Bank and plied for the Board’s approval under section Applicant are satisfactory and that their future 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to prospects appear favorable. Therefore, the Board acquire 95 percent or more of the voting shares concludes that banking factors are consistent with (less directors’ qualifying shares) of First National approval. Bank, Cedar Falls, Iowa (“Bank”). Although consummation of the proposal would Notice of the application, affording opportunity not change.the banking services offered by Bank, for interested persons to submit comments and considerations relating to the convenience and views, has been given in accordance with section needs of the community to be served are consistent 3(b) of the Act. The time for filing comments and with approval. It has been determined that con views has expired, and the Board has considered summation of the transaction would be in the the application and all comments received, in public interest and that the application should be cluding those of The National Bank of Waterloo, approved. Waterloo, Iowa (“Protestant”), in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). 1. All banking data are as of June 30, 1978. Applicant controls 84 banks located in seven 2. The relevant banking market is approximated by the midwestern states,1 including Iowa, with total de Minneapolis-St. Paul RMA adjusted to include all of Carver County. posits of $7.8 billion.2 Applicant is the largest 3. Title II of the Financial Institutions Regulatory and In banking organization in Iowa, controlling nine terest Rate Control Act of 1978 (“FIRA”) sets forth prohibi tions against certain interlocks between management officials banks with total deposits of $997.8 million, repre of depository institutions, including commercial banks and senting approximately 6.8 percent of the total “depository holding companies,” and further provides that deposits in commercial banks in Iowa. Acquisition these prohibitions will not apply until 1988 to certain interlocks that existed on the date of its enactment. Upon acquisition of Bank ($41.0 million in deposits) would increase of Bank, an interlock might exist between Applicant and Applicant’s share of deposits in the state by only Midwest Federal Savings and Loan, a mutual savings associa 0.3 percent and would have no appreciable effect tion located in Minneapolis, which would not qualify for the grandfather exemption in FIRA. If the relationship proves to be inconsistent with forthcoming regulations implementing Title II of FIRA, Applicant will be expected to conform its 1. These seven states are Minnesota, Montana, North Da management structure to the requirements of the regulations kota, South Dakota, Wisconsin, Nebraska, and Iowa. adopted by the board. 2. All banking data are as of June 30, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 433 upon the concentration of banking resources in gage loans in Bank’s market area; since Bank also Iowa. originates such loans, Applicant and Bank are Bank is the fourth largest of thirteen banking direct competitors. As of year-end 1977, Banco organizations operating in the Waterloo banking was servicing loans on residential properties lo market,3 controlling approximately 9.3 percent of cated in Black Hawk County with a total out market deposits. Applicant’s two closest banking standing balance of $26.8 million. Banco’s Wa subsidiaries are located in Mason City and Marion, terloo office accounted for 3.2 and 6.2 percent of 70 miles northwest and southeast, respectively, of the total mortgage recordings in Black Hawk Bank in separate banking markets. In view of the County in 1976 and 1977, respectively, while distances between Bank and Applicant’s banking Bank’s originations represented less than 1.0 per subsidiaries and other facts of record, it appears cent of the County total in each of these years. that no significant existing competition would be However, the proposed acquisition of Bank would eliminated between Bank and any of Applicant’s not significantly reduce the number of organi subsidiary banks by consummation of this pro zations in the markets offering mortgage loans, posal. since nine other commercial banks and six savings As part of its analysis of this application, the and loan associations originate such loans in the Board has considered the comments in opposition market, as do a number of the 31 credit unions to the proposal submitted by Protestant, the largest located in the area. Moreover, the proposal may banking organization in the relevant banking mar have a procompetitive effect upon mortgage lend ket, with deposits of $136.4 million and 30.8 ing in the market, since upon consummation of percent of market deposits. In summary, Protestant this proposal Applicant intends to enable Bank to contends that Applicant is capable of entering the offer FHA-insured and VA-guaranteed mortgage market on a de novo basis; competition between loans and graduated payment mortgage services Applicant’s mortgage banking subsidiary, Banco not previously offered by Bank. Based upon these Mortgage Company, St. Paul, Minnesota and other facts of record, the Board concludes that (“Banco”), and Bank will be eliminated upon consummation of the proposal would not result in consummation of this proposal; and convenience any significant adverse effects upon competition and needs factors are not sufficient to outweigh in any relevant area. Thus, competitive consid what it believes to be the adverse competitive erations, when viewed in light of other aspects effects of the proposal. of the proposal, are regarded as being consistent While the Applicant has the resources to enter with approval of the application. the market de novo, based upon the facts of record The financial and managerial resources and fu the market appears only moderately attractive to ture prospects of Applicant, its subsidiary banks de novo entry by Applicant. Furthermore, the and Bank are regarded as satisfactory. Accord Board does not view the acquisition of Bank, ingly, banking factors are consistent with approval which is not one of the market’s largest banks, of this application. as raising such a significant competitive issue to Protestant asserts that the convenience and warrant denial of this application. Moreover, upon needs factors are insufficient to outweigh what consummation of this proposal, numerous inde Protestant believes to be the adverse competitive pendent banking alternatives would remain as po effects of the proposal. As noted above, the Board tential entry vehicles into the market. does not view consummation of the proposal as Protestant contends that competition between resulting in any significant adverse effects upon Applicant’s mortgage banking subsidiary, Banco, competition in any relevant area. and Bank will be eliminated upon consummation With respect to convenience and needs consid of the proposal. However, it appears from the facts erations, the Board believes that such consid of record that no significant competitive effects erations lend weight toward approval of the appli will result from approval of this application. Banco cation and outweigh any anticompetitive effects operates an office in Waterloo that serves both as that may be associated with the proposal. For Banco’s national loan servicing center and one of example, Applicant plans to introduce some new 38 residential mortgage loan origination offices. services to the customers of Bank, including lease Banco’s Waterloo office extends residential mort financing, and a full range of trust and international services, as well as the mortgage lending services 3. The Waterloo banking market is approximated by Black previously discussed. In addition, Applicant in Hawk County and that portion of the Waterloo Ranally Metro tends to cause Bank to offer increased returns on politan Area (“RMA”) extending into Bremer County, in savings deposits and certificates through daily Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
434 Federal Reserve Bulletin □ May 1979 compounding on accounts and expand its lending. of $208.8 million, representing 9.5 percent of total These considerations relating to the convenience deposits in commercial banks in Wyoming.2 Ac and needs of the community to be served lend quisition of Bank, ($8.7 million in deposits) would weight toward approval of the application and increase Applicant’s share of commercial bank outweigh any adverse competitive effects that deposits in Wyoming by 0.4 percent and would might result from consummation of this proposal. not have an appreciable effect upon the concentra Based upon the foregoing and other considerations tion of banking resources in the state. reflected in the record, it is the Board’s judgment Bank is the only bank in Glenrock, located that the proposed application is in the public inter approximately 20 miles east of Casper, and is in est and that the application should be approved. the Casper banking market, which is defined to On the basis of the record, the application is include Natrona County and western Converse approved for the reasons summarized above. The County, Wyoming.3 The definition of the Casper transaction shall not be consummated (a) before market includes the town of Glenrock, which is the thirtieth calendar day following the effective located in western Converse County. date of this Order, or (b) later than three months While Casper and Glenrock are located 20 miles after the effective date of this Order unless such apart, evidence of record indicates that Casper and period is extended for good cause by the Board, Glenrock are in fact an economically integrated or by the Federal Reserve Bank of Chicago pur area. For example, Glenrock residents commute suant to delegated authority. to Casper for employment and shopping purposes; By order of the Board of Governors, effective Casper’s newspaper is the only daily newspaper April 20, 1979. of general circulation in Glenrock, and Glenrock is served by Casper’s television station; and Voting for this action: Chairman Miller and Gover Casper and Glenrock are linked by a major inter nors Wallich, Coldwell, Partee, and Teeters. state highway. (Signed) Griffith L. Garwood, Also, the record shows significant deposit and [seal] Deputy Secretary of the Board. loan overlap between Applicant’s lead bank, The Wyoming National Bank of Casper, Casper, Wyoming (“Casper Bank”), and Bank, which is another indicator that the two banks are located The Wyoming National Corporation, in the same market.4 In addition, the facts of Casper, Wyoming record indicate that Bank’s management is sensi Order Denying Acquisition of Bank tive to the business strategies of banks in Casper and that Bank is responsive to the prices charged The Wyoming National Corporation, Casper, and the services offered by banks in Casper. Ac Wyoming, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(3) Bulletin 69 (1979)), but this proposal has not yet been consummated. of the Act (12 U.S.C. § 1842(a)(3)) to acquire 2. All banking data are as of June 30, 1978, and reflect 80 percent or more of the voting shares of First bank holding company formations and acquisitions approved as of January 31, 1979. National Bank of Glenrock, Glenrock, Wyoming 3. In the Board’s Order approving Applicant’s proposal to (“Bank”). acquire Wyoming National Bank of East Casper, the Board Notice of the application, affording opportunity noted that it was reviewing the definition of the Casper banking market, which was then approximated by the Ranally Metro for interested persons to submit comments and politan Area including the City of Casper and the towns of views, has been given in accordance with § 3(b) Mills, Evansville, and Paradise Valley, all in Natrona County, Wyoming. (65 Federal Reserve Bulletin 69 , 70 n.3 of the Act. The time for filing comments and views (1979)). has expired, and the Board has considered the 4. Applicant, in contending that Casper Bank and Bank do application and all comments received in light of not compete in the same market, states that the percentages of total loans and total deposits that each bank derives from the factors set forth in § 3(c) of the Act (12 U.S.C. the other bank’s Primary Service Area (“PSA”) are small § 1842(c)). enough to be insignificant. However, the Board feels that the Applicant, the third largest banking organization more relevant measure of deposit and loan overlap is the total deposits (loans) that one bank derives from the other bank’s and bank holding company in Wyoming, controls PSA divided by the total deposits (loans) that the other bank three bank subsidiaries1 with aggregate deposits derives from its PSA. Measured on this basis, even taking into account that many of the commercial loans made by Capser Bank in the Glenrock area are to businesses whose principals 1. On December 28, 1978, the Board approved Applicant’s live in Casper, the deposit and loan overlap ratio between proposal to acquire Wyoming National Bank of East Casper, Casper Bank and Bank reflect that a substantial amount of Casper, Wyoming, a de novo bank (65 Federal Reserve competition exists between Casper Bank and Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 435 cordingly, it is the Board’s opinion that the Casper Voting for this action: Chairman Miller and Gover banking market is appropriately defined as Natrona nors Wallich, Coldwell, Partee, and Teeters. County and western Converse County, including (Signed) Griffith L. Garwood, the town of Glenrock. [seal] Deputy Secretary of the Board. Applicant is the largest of nine banking organi zations located in the Casper banking market and controls deposits of $192.2 million, representing Orders Under Section 4 42.3 percent of total deposits in commercial banks of Bank Holding Company Act in the relevant market. Bank is the sixth largest bank in the relevant market and holds deposits of Citizens Bancorporation, $8.7 million, representing 1.9 percent of total Sheboygan, Wisconsin deposits in commercial banks in the market. The Order Approving Acquisition of Citizens acquisition of Bank would raise Applicant’s share Management Services Corporation of market deposits to 44.2 percent and further increase concentration in an already highly con Citizens Bancorporation, Sheboygan, Wiscon centrated market. The four largest banking orga sin, a bank holding company within the meaning nizations in the Casper banking market, which of the Bank Holding Company Act, has applied include the two largest banking organizations in for the Board’s approval, under section 4(c)(8) of Wyoming, control 93.9 percent of market depos the Act (12 U.S.C. § 1843(c)(9)) and section its. Accordingly, the Board views the effects of 225.4(b)(2) of the Board’s Regulation Y (12 the proposal upon the concentration of banking C.F.R. § 225.4(b)(2)), to acquire all of the voting resources in the Casper banking market as an shares of Citizens Management Services Corpora adverse factor in its consideration of this applica tion, Sheboygan, Wisconsin (“Company”), a tion. The facts of record indicate that consumma proposed new company formed to engage in the tion of the proposal would also eliminate substan activities of furnishing management consulting tial existing competition between Casper Bank and advice on an explicit fee basis to nonaffiliated Bank. Accordingly, the Board finds on the basis banks, including advice with respect to auditing, of the foregoing and other facts of the record that investments, data processing, marketing personnel consummation of this proposal would have sub establishment of branches, credit policies and ad stantially adverse competitive effects and that the ministration and trust operations. Such activities proposal should not be approved unless the anti have been determined by the Board to be closely competitive effects are clearly outweighed by ben related to banking (12 C.F.R. § 225.4(a)(12)). efits to the public in meeting the convenience and Notice of the application, affording opportunity needs of the community to be served. for interested persons to submit comments on the The financial and managerial resources and fu public interest factors, has been duly published (43 ture prospects of Applicant, its banking subsidi Federal Register 1220). The time for filing com aries and Bank are regarded as satisfactory. Ac ments has expired, and the Board has considered cordingly, considerations relating to banking fac the application and all comments received in the tors are consistent with approval of the application. light of the public interest factors set forth in While some benefits relating to the convenience § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). and needs of the community to be served might Applicant, the ninth largest banking organi result from consummation of the proposal, the zation in Wisconsin, controls 5 banks with aggre Board is of the view that such benefits do not gate deposits of $298 million,1 representing 1.62 clearly outweigh the substantially adverse com percent of the total deposits in commercial banks petitive effects that would result from Applicant’s in the state. Applicant also engages through non acquisition of Bank. banking subsidiaries in mortgage banking and On the basis of the facts in the record, and in leasing activities. light of the factors set forth in section 3(c) of the Company proposes to provide its management Act, it is the Board’s judgment that approval of consulting to nonaffiliated banks located in Eastern the proposal would not be in the public interest. Wisconsin. Applicant’s entry into the field de novo Accordingly, the application is denied for the would provide an additional competitor that offers reasons summarized herein. By order of the Board of Governors, effective 1. As of June 30, 1978. April 2, 1979. 2. As of December 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
436 Federal Reserve Bulletin □ May 1979 this specialized financial and consulting advice and Deutsche Bank AG, would have no adverse effects on existing or Frankfurt, Federal Republic of Germany potential competition in any relevant area. More Order Approving Acquisition of Fiat Credit over, availability of this advice on an explicit fee Services, Inc., and Fiat Credit Corporation basis, rather than as part of a correspondent bank ing service, will enable client banks to more accu Deutsche Bank AG, Frankfurt, Federal Repub rately analyze the cost of such services and such lic of Germany, a foreign bank subject to certain banks may be able to more efficiently allocate their provisions of the Bank Holding Company Act of funds. 1956 (“the Act”),1 has applied for the Board’s There is no evidence in the record indicating approval, pursuant to section 4(c)(8) of the Act that consummation of the proposed transaction (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) would result in any undue concentration of re of the Board’s Regulation Y (12 C.F.R. sources, unfair competition, conflicts of interests, § 225.4(b)(2)), to acquire, through Applicant’s unsound banking practices, or other adverse ef subsidiary, Deutsche Bank Compagnie Financiere fects on the public interest. Furthermore, Appli Luxembourg, Luxembourg, 50 percent of the vot cant states that it is aware of the prohibitions ing shares of Fiat Credit Services, Inc. (“Ser concerning tie-ins contained in section 106 of the vices”), Deerfield, Illinois, a de novo corporation. Act (12 U.S.C. § 1972) and the Board’s Regula The remaining shares of Services would be held tion Y (12 C.F.R. § 225.4(c)) and will comply by a subsidiary of Fiat S.p.A. (“Fiat”), Turin, with those prohibitions. Italy. Services would engage, through its wholly Based upon the foregoing and other consid owned subsidiary, Fiat Credit Corporation (“Cor erations reflected in the record, the Board has poration”), Deerfield, Illinois, in the activities of determined, in accordance with the provisions of dealer inventory financing for dealers of affiliates § 4(c)(8), that consummation of this proposal can of Fiat in the United States and retail financing reasonably be expected to produce benefits to the for purchasers and lessees of products from such public that outweigh possible adverse effects. Ac dealers. These activities have been determined by cordingly, the application is hereby approved. This the Board to be closely related to banking (12 determination is subject to the conditions set forth C.F.R. § 225.4(a)(1)). in section 225.4(c) of Regulation Y and to the Notice of the application, affording opportunity Board’s authority to require such modification or for interested persons to submit comments and termination of the activities of a holding company views, has been duly published (44 Federal Reg or any of its subsidiaries as the Board finds neces ister 10548). The time for filing comments and sary to assure compliance with the provisions and views has expired, and the Board has considered purposes of the Act and the Board’s regulations the application and all comments in light of the and orders issued thereunder, or to prevent evasion public interest factors set forth in section 4(c)(8) thereof. of the Act. The transaction shall be made not later than Applicant is the largest bank in Germany and three months after the effective date of this Order, the third largest bank in the Free World, with unless such period is extended for good cause by consolidated assets equivalent to approximately the Board or by the Federal Reserve Bank of $66.1 billion.2 Since the proposed initial invest Chicago. ment of $5 million and anticipated later invest By order of the Board of Governors, April 16, ments represent a minimal percentage of Appli 1979. cant’s consolidated assets, the proposal would not appear to have any significant effect upon Appli cant’s financial condition. Fiat is a major diversified industrial corporation based in Italy, with consolidated assets equivalent Voting for this action: Chairman Miller and Gover to approximately $4.7 billion. Fiat manufactures nors Wallich, Partee, and Teeters. Absent and not voting: Governor Coldwell. automobiles, trucks, agricultural equipment, air craft parts, and construction equipment; it also 1. Applicant, a foreign bank operating a branch in New York, New York, is subject to certain provisions of the Act by operation of section 8(a) of the International Banking Act (Signed) Griffith L. Garwood, of 1978, Pub. L. No. 95-369, § 8(a), 92 Stat. 622. [seal] Deputy Secretary of the Board. 2. All financial data are as of December 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 437 operates in other industries, including steel and ingly, the application is approved. This determi energy production, civil engineering projects, and nation is subject to the conditions set forth in tourist services. section 225.4(c) of Regulation Y and to the Applicant proposes to acquire 50 percent of the Board’s authority to require such modification or shares of Services, a nonoperating corporation termination of such activities as the Board finds formed to hold all the shares of Corporation. necessary to assure compliance with the provisions Through Corporation, Applicant and Fiat propose and purposes of the Act and the Board’s regula to engage de novo in providing dealer financing tions and orders issued thereunder, or to prevent for dealers of affiliates of Fiat in the United States evasion thereof. and retail financing for purchasers and lessees of The transaction shall be made not later than products from such dealers. Fiat’s affiliates now three months after the effective date of this Order, include Fiat Motors of North America, Inc., Fiat- unless such period is extended for good cause by Allis Construction Machinery, Inc., Hesston Cor the Board or by the Federal Reserve Bank of New poration, and Iveco Trucks of North America York pursuant to authority hereby delegated. Incorporated. Corporation will engage in these By order of the Board of Governors, effective finance activities from an office in Deerfield, Illi April 13, 1979. nois. Since this acquisition represents de novo entry, no existing competition would be eliminated Voting for this action: Chairman Miller and Gover nors Wallich, Partee, and Teeters. Absent and not between Services and the subsidiaries of either voting: Governor Coldwell. Applicant or Fiat,3 and independent entry into this activity by Applicant or Fiat appears unlikely. (Signed) Griffith L. Garwood, On the other hand, in the circumstances of this [seal] Deputy Secretary of the Board. proposal, the Board finds that consummation of the proposal would result in public benefits. Ap plicant’s proposal would provide dealers in the First National Holding Corp. United States in products manufactured by Fiat an Atlanta, Georgia additional source of inventory financing and pro Order Approving Acquisition of vide customers of those dealers an additional First Grand Junction Industrial Bank source of retail financing. Furthermore, there is no evidence in the record indicating that consum First National Holding Corp., Atlanta, Georgia, mation of this proposal would result in undue a bank holding company within the meaning of concentration of resources, unfair competition, the Bank Holding Company Act, has applied for conflicts of interests, unsound banking practices the Board’s approval, under section 4(c)(8) of the or other adverse effects. Act (12 U.S.C. § 1843(c)(8)) and section Based upon the foregoing and other consid 225.4(b)(2) of the Board’s Regulation Y (12 erations reflected in the record, the Board has C.F.R. § 225.4(b)(2)), to acquire First Grand determined that the balance of the public interest Junction Industrial Bank (“Industrial Bank”), factors the Board is required to consider under Grand Junction, Colorado, a de novo corporation, section 4(c)(8) of the Act is favorable. Accord through its subsidiary, Gulf Finance Corp. (“Gulf Finance”), Atlanta, Georgia. Industrial Bank would operate as an industrial bank pursuant to 3. Applicant’s New York branch is engaged primarily in wholesale banking and is not engaged in the proposed finance the laws of Colorado and act as agent for the sale activities. Applicant owns indirectly through its subsidiary, of life and accident and health insurance directly German American Capital Corporation, 20.1 percent of the related to its extensions of credit. The Board has shares of European-American Bancorp, which controls Euro pean-American Bank and Trust Company (“EAB&T”), both determined these activities to be closely related of New York, New York. The Board noted in its Order dated to banking (12 C.F.R. § 225.4(a)(2) and (9)(ii)). May 10, 1977, approving the acquisition of EAB&T that Applicant was not a bank holding company with respect to Notice of the application, affording opportunity EAB&T. EAB&T engages in wholesale and retail sales finance for interested persons to submit comments and in the New York Metropolitan banking market (which consists views, has been duly published (44 Federal Reg of New York City, Nassau, Westchester, Putnam, and Rock land Counties and western Suffolk County in New York, the ister 6517). The time for filing comments and northern two-thirds of Bergen County and eastern Hudson views has expired, and the Board has considered County in New Jersey, and southwestern Fairfield County in the application and all comments received in the Connecticut). However, even if Applicant were considered to engage indirectly through EAB&T in such finance activities, light of the public interest factors set forth in EAB&T’s existing business is confined to a limited area and section 4(c)(8) of the Act (12 U.S.C. the combined market shares of EAB&T and Corporation would not represent a significant presence in any relevant market. § 1843(c)(8)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
438 Federal Reserve Bulletin □ May 1979 Applicant, the third largest banking organization the Board’s authority to require such modification in Georgia, controls four banks with aggregate or termination of the activities of a holding com deposits of approximately $1.55 billion, repre pany or any of its subsidiaries as the Board finds senting 10.3 percent of the total deposits in com necessary to assure compliance with the provisions mercial banks in the state.1 Through Industrial and purposes of the Act and the Board’s regula Bank, Applicant proposes to engage in industrial tions and orders issued thereunder, or to prevent loan activities,2 including accepting savings de evasion thereof. posits, issuing certificates of deposit, engaging in By order of the Board of Governors, effective general consumer lending and limited amounts of April 9, 1979. commercial lending. Industrial Bank would also Voting for this action: Chairman Miller and Gover engage in the sale of credit-related insurance, but nors Wallich, Coldwell, Partee, and Teeters. the institution would not accept demand deposits. Since the acquisition of Industrial Bank involves (Signed) Griffith L. Garwood, de novo entry in an area served by none of Appli [seal] Deputy Secretary of the Board. cant’s subsidiaries, consummation of the proposal would not have an adverse effect on competition Memphis Trust Company, in any relevant area. Accordingly, the Board finds Memphis, Tennessee competitive factors to be consistent with approval Order Denying Request for Reconsideration of the application. The Board also finds that consummation of the Memphis Trust Company, Memphis, Tennessee proposal is likely to result in public benefits. (“Memphis Trust”), has requested that the Board Industrial Bank would provide the relevant market, of Governors reconsider its Order, published on approximated by the town of Grand Junction, both April 10, 1975, in which the Board denied the an additional savings facility and an additional application of Memphis Trust filed pursuant to source of loans and credit-related insurance, which section 4(c)(8) of the Bank Holding Company Act results the Board regards as being in the public (12 U.S.C. § 1843(c)(8)) (the “Act”), for Board interest. There is no evidence in the record indi approval to acquire shares of Homeowners Savings cating that consummation of this proposal would and Loan Association, Collierville, Tennessee result in undue concentration of resources, unfair (“Homeowners”), and thereby to engage de novo competition, conflicts of interests, unsound bank in the activity of operating a savings and loan ing practices, or other adverse effects. The Board association. believes furthermore that Applicant’s financial re At its meeting on April 9, 1975, the Board voted sources are generally consistent with approval of to deny the application of Memphis Trust to ac this application. quire Homeowners, approved an Order reflecting Based upon the foregoing and other consid that action, and authorized the entry of the Order. erations reflected in the record, the Board has The Order was printed, signed by the Board’s determined that the balance of public interest fac Secretary, and released to the public and Memphis tors the board is required to consider under section Trust on April 10, 1975. The Board found that, 4(c)(8) is favorable. Accordingly, the application while operating a savings and loan association is is approved. The transaction shall be made not closely related to banking, the performance of the later than three months after the effective date of activity by Memphis Trust was not a “proper this Order, unless such period is extended for good incident” to banking because of adverse financial cause by the Board or by the Federal Reserve Bank factors.1 Memphis Trust did not request the Board of Atlanta pursuant to authority hereby delegated. to reconsider its action, nor did Memphis Trust This determination is subject to the conditions set petition for review of the Board’s Order in the forth in section 225.4(c) of Regulation Y and to court of appeals within 30 days of the entry of the Order as provided in section 9 of the Act.2 1. All banking data are as of June 30, 1978. One of Applicant’s subsidiary banks, The Bank of Dalton, Dalton, 1. The Board has subsequently determined that operating Georgia, (deposits of $23.7 million) must be divested in a savings and loan association is not a permissible activity accordance with a previous Board Order (63 Federal Reserve for bank holding companies because the potential for adverse Bulletin 929 (1977)). effects of generally allowing affiliations of banks and savings 2. Under Colorado law, an industrial bank is subject to and loan associations is sufficiently strong to outweigh any examination twice each year by the Colorado State Bank public benefits that might result in individual cases. (D. H. Commissioner and must be a member of the Industrial Bank Baldwin Company, 63 Federal Reserve Bulletin 280 Savings Guaranty Corporation, a self-insuring entity, if it is (1977)). not a member of the Federal Deposit Insurance Corporation. 2. 12 U.S.C. § 1848. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 439 On February 19, 1976, Memphis Trust filed an Board order under the Act is necessary in the action in the United States District Court for the interest of administrative efficiency, judicial econ Western District of Tennessee seeking a determi omy, and the implementation of Congressional nation that Memphis Trust’s application should be intent.7 deemed approved as a matter of law since, ac It is undisputed that Memphis Trust did not file cording to Memphis Trust, the Board’s denial a petition for review of the Board’s denial Order Order was issued more than 91 days after submis within 30 days of entry of that Order.8 Nor did sion to the Board of the complete record of the Memphis Trust file a timely petition for recon application.3 The District Court granted the relief sideration of that Order. Accordingly, the Board requested by Memphis Trust. On appeal, the believes that the instant petition for recon United States Court of Appeals for the Sixth Cir sideration, filed more than three years after entry cuit reversed the District Court judgment and re of the Board’s Order, is untimely, and, for this manded the case to the District Court with in reason, reconsideration is not warranted. structions to dismiss the complaint for lack of Memphis Trust has neither alleged nor presented subject matter jurisdiction. Memphis Trust Com evidence of any extraordinary circumstances as pany v. Board of Governors, 584 F.2d 921 (1978). might lead the Board to exercise its discretion to In its decision, the Sixth Circuit indicated that the grant reconsideration of its 1975 Order. Memphis dismissal of the District Court judgment was Trust attempts to explain its failure to seek timely “without prejudice to [Memphis Trust’s] right to review or reconsideration of the Order by claiming request the Board to reconsider its order of April that it relied on a 1972 Board interpretation that 10, 1975.” the 91 day period does not begin to run until the Consistent with the Supreme Court’s decision Board’s staff has submitted all necessary informa in Whitney National Bank v. Bank of New Orleans tion (including staff memoranda) to the members & Trust Co., 379 U.S. 411 (1965), the Court of of the Board. The Board finds this explanation Appeals held that the exclusive means by which unpersuasive since Memphis Trust could have an aggrieved party may obtain judicial review of challenged the Board’s 1972 analysis and the an order of the Board under the Act is by a timely Board’s 1975 Order by seeking judicial review of petition to an appropriate Court of Appeals. In the Order within 30 days of its entry.9 Such a order to be timely, the petition must be filed within challenge to the Board’s interpretation of the 91- 30 days after entry of the order.4 Accordingly, any day rule was filed by Tri-State Bancorporation in right of reconsideration is implicitly limited by the 1975 and upheld by the Court of Appeals for the 30-day appeal period5 provided in section 9 of Seventh Circuit.10 The same procedure was avail the Act.6 The Board believes that strict adherence able to Memphis Trust. to the 30-day limitation for seeking review of a Accordingly, the Board does not believe that reconsideration of its 1975 Order is appropriate or warranted. The petition for reconsideration is 3. Section 4(c) of the Act provides: In the event of the failure of the Board to act on any therefore denied for untimeliness. However, be application for an order under paragraph (8) of this cause of the suggestion in Memphis Trust, supra, subsection within the ninety-one-day period which be that the Board should address the 91-day issue, gins on the date of submission to the Board of the complete record on that application, the application the Board believes it appropriate to set forth its shall be deemed to have been granted. 12 U.S.C. § 1843(c). 4. Time limits for judicial review are “jurisdictional and appropriate method of obtaining judicial review of a regulation unalterable.” Microwave Communications, Inc. v. Federal and the “ripeness” of a regulation for review. In Memphis Communications Commission, 515 F.2d 385, 389 (D.C. Cir. Trust’s case, there was no such uncertainty because the chal 1974). lenged action was an order, not a regulation, and the order 5. On October 19, 1978, the Board amended its Rules of was unquestionably ripe for review upon its entry. Procedure to require that a petition for reconsideration of a 7. In Memphis Trust, supra at 927, the Sixth Circuit stated Board order be filed within 15 days of entry of the order. that “[T]he 30-day limit [of section 9] promotes finality of (43 Federal Register 49973 (1978)). Board determinations, conserves administrative resources, and 6. However, in Investment Company Institute v. Board of protects the reliance interests of holding companies whose Governors, 551 F.2d 1270 (D.C. Cir. 1977), the court held applications to engage in nonbanking activity have been ap that an untimely request for reconsideration of a Board regula proved.” tion under the Act might be appropriate in extraordinary 8. Indeed, Memphis Trust’s first challenge to the Board’s circumstances, where the petitioner had a “legitimate excuse” Order was not made until February 19, 1976, more than ten for failing to file within the 30-day appeal period. In this months after entry of the Order. connection, the court stated that the agency “must be strict 9. The United States Court of Appeals for the Sixth Circuit in determining what constitutes a ‘legitimate’ excuse; other also appears to question the persuasiveness of Memphis Trust’s wise, the policy of finality underlying the 30-day limit will explanation. Memphis Trust Company, supra at 924, n.7. not be achieved.” Id. at 1282. The court found a legitimate 10. Tri-State Bancorporation, Inc. v. Board of Governors, excuse for untimely filing because of the uncertainty as to the 524 F.2d 562 (7th Cir. 1975). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
440 Federal Reserve Bulletin □ May 1979 view on the lack of merit in Memphis Trust’s claim Order on April 10 marks the date the Board acted 14 under the 91-day rule in § 4(c) of the Act. on its application and that April 10 is 92 days Section 4(c) of the Act requires that the Board from January 8, 1975, the date the record on the “act” on an application within the 91-day period application was complete. Memphis Trust there that begins on the date of the submission to the fore concludes that the Board’s failure to enter an Board of the complete record on the application.11 Order on April 9, 1975, resulted in approval of The record shows that the Board acted on Mem the application under the 91-day rule. However, phis Trust’s application to acquire Homeowners the Board’s action on April 9, 1975, plainly con on April 9, 1975, within 91 days of receipt by stituted action under section 4(c)(8) of the Act and the Board on January 8, 1975, of the information within the meaning of the 91-day rule. Since the submitted to the Board by Memphis Trust regard Board’s action on April 9 was within the 91-day ing its financial condition. Accordingly, the period specified in the Act, the 91-day rule does Board’s action was timely under the Act. not apply to Memphis Trust’s application. The The Board considered Memphis Trust’s appli “entry” of the Board’s Order, a purely ministerial cation at its meeting on April 9, 1975, which date function assigned by the Board’s rules to the Memphis Trust acknowledges was within 91 days Board’s Secretary, did not occur until the follow of the date the record on its application was ing day as a result of the time required to duplicate, complete.12 At the meeting, the Board discussed address and distribute copies of the Board’s Order the various recommendations concerning action on to Memphis Trust, other agencies and the press.15 the application proposed by its staff. On that same Having acted on the application in a timely manner date, the Board took final action on the application on April 9, 1975, there is no doubt that the Board by voting to deny the application. The Board also was authorized to publish an Order on April 10 authorized issuance of the denial Order that was explaining the reasons for its earlier action. published on April 10, 1975.13 On the basis of the foregoing, Memphis Trust’s Memphis Trust claims that the entry of the request for reconsideration of the Board’s Order denying Memphis Trust’s application to acquire 11. The Board believes that the 91-day rule is inapplicable Homeowners is hereby denied. to applications to engage in prohibited activities (such as By order of the Board of Governors, effective ownership of a savings and loan association, which the Board has found to be not so “closely related to banking” as to April 25, 1979. be “a proper incident thereto”). At the time of Memphis Trust’s application, the Board had not determined that, as a Voting for this action: Chairman Miller and Gover general matter, savings and loan activities were a proper nors Wallich, Coldwell, Partee, and Teeters. incident to banking, nor had the Board added the activity to t c h o e m p B a o n a i r e d s ’s ( 12 li s C t .F of .R p . e § r m 22 is 5 s . i 4 b ( l a e )) a . c T tiv h i e t ie B s o a f r o d r h b a a d n f k o u h n o d l d t i h n a g t (Signed) Griffith L. Garwood, the activity was “closely related” but not that it was a “proper [seal] Deputy Secretary of the Board. incident.” American Fletcher Corporation, (60 Federal Re serve Bulletin, 868 (1974)). Memphis Trust’s attempt to apply the 91-day rule to Board determinations concerning a prohibited activity is inconsistent with the fundamental legislative intent of the Bank Holding Company Act to separate banking and nonbanking. There is Certifications Pursuant to the no reason to believe that Congress intended that an application Bank Holding Company Tax Act of 1976 to engage in a prohibited activity (i.e., to operate a steel mill) would be approved in 91 days if the Board failed to act on C.I.T. Financial Corporation, such application. 12. “The Board’s jurisdiction [to act on the application] New York, New York expired [on] April 9, 1975” p. 10, Brief for the Appelle, Memphis Trust, supra. Prior Certification Pursuant to the Bank The Board believes that Board action on the 91st day after Holding Company Tax Act of 1976 the record is complete fulfills the Act’s requirement that the Board act within the 91-day period that begins on the date of submission of the complete record. This method of compu tation is consistent with common usage and accepted practice 14. The Board did not meet on April 10, 1975, and therefore in other areas. See, e.g., Rule 34, U.S. Supreme Court Rules; could not possibly have acted on that date within the meaning Burnet v. Willingham Loan & Trust Co., 282 U.S. 434 (1931); of section 4(c) of the Act. United States v. Besase, 319 F. Supp. 1064 (N.D. Ohio, 15. At the time of the Board’s action, section 3(b) of the 1970). Board’s Rules of Organization (12 C.F.R. § 262.3(b)) pro 13. Entry of the Order on April 10, 1975, marks the start vided that the Office of the Secretary “. . . prepares documents of Memphis Trust’s 30-day time limit for judicial review since for the Board’s agenda and implements actions taken.” In 1976 section 9 of the Act expressly provides that the appeal period these Rules were amended to state that the Office of the starts upon “entry of the order.” However, the 91-day rule Secretary “. . . implements action taken at Board meetings.” in section 4(c) is in terms of “failure of the Board to act,” Similarly, the Board’s Rules of Procedure, 12 C.F.R. and is not, as in the case of the appeal period of section 9, §§ 262.3(d) and 262.3(g)(4) distinguish between the Board’s measured from “entry of the order.” actions and the documents or orders that embody such action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 441 [Docket No. TCR 76-167] bank holding company on July 7, 1970, if the 1970 Amendments of the BHC Act had been in effect C.I.T. Financial Corporation, New York, New on such date, by virtue of its direct ownership and York (“C.I.T.”), has requested a prior certifi control on that date of more than 25 percent of cation pursuant to section 6158(a) of the Internal the outstanding voting shares of NBNA. Revenue Code (“Code”), as added by section 3(a) 4. C.I.T. holds property acquired by it on or of the Bank Holding Company Tax Act of 1976 before July 7, 1970, the disposition of which (“Tax Act”), that its sale of 100 percent of the would be necessary or appropriate to effectuate outstanding voting shares of National Bank of section 4 of the BHC Act if C.I.T. were to North America, Jamaica, New York (“NBNA”), continue to be a bank holding company beyond to NatWest Holdings Inc., Wilmington, Delaware December 31, 1980. This property is “prohibited (“Holdings”), a wholly owned subsidiary of Na property” within the meaning of section 1103(c) tional Westminster Bank Limited, London, Eng of the Code. land (“NatWest”), is necessary or appropriate to 5. C.I.T. has represented to the Board that after effectuate the policies of the Bank Holding Com the sale of the shares of NBNA to Holdings, no pany Act (12 U.S.C. § 1841 et seq.) (“BHC person holding an office or position (including an Act”).1 advisory or honorary position) as a director or In connection with this request for a prior cer officer of C.I.T. will hold any such office or tification, the following information is deemed position with NatWest or any of its subsidiaries, relevant for purposes of issuing the requested including NBNA and Holdings. In its prior certif certification:2 ication of March 16, 1979, the Board indicated 1. C.I.T. is a corporation organized under the that C.I.T.’s proposed retention of 24.9 percent laws of Delaware on January 24, 1924. of the shares of NBNA would not terminate 2. C.I.T. owned 3,522,297, representing 92.88 C.I.T.’s status as a bank holding company, and percent, of the outstanding voting shares of NBNA noted that the sale of such shares would be neces on December 31, 1965, and has owned such shares sary or appropriate to effectuate the purposes of continuously since that date.3 On July 7, 1970, the Act. In light of the foregoing and inasmuch C.I.T. owned and controlled 5,660,130, repre as C.I.T. has represented that after the proposed senting 97.49 percent, of the outstanding voting sale, C.I.T. will not exercise a controlling influ shares of NBNA. Since 1972, C.I.T. has owned ence over the management or policies of NBNA, and controlled 100 percent (less directors’ quali and C.I.T. will not own or control, either directly fying shares) of the outstanding voting shares of or indirectly, more than 5 percent of the out NBNA. standing shares of any other bank, it presently 3. C.I.T. became a bank holding company on appears that upon consummation of the sale by December 31, 1970, as a result of the 1970 C.I.T. of all of its shares of NBNA, C.I.T. would Amendments to the BHC Act, by virtue of its cease to be a bank holding company.4 direct ownership and control at that time of more On the basis of the foregoing, it is hereby than 25 percent of the outstanding voting shares certified that: of NBNA, and it registered as such with the Board (A) C.I.T. is a qualified bank holding corpora on October 4, 1971. C.I.T. would have been a tion within the meaning of section 1103(b) of the Code, and satisfies the requirements of that sec tion; 1. On March 16, 1979, the Board issued a prior certification (B) the 5,660,130 shares, representing 97.49 pursuant to the Tax Act relating to the proposed sale by C.I.T. percent of the outstanding voting shares, of NBNA of 75.1 percent of the shares of NBNA. C.I.T. now proposes to sell the additional 24.9 percent of NBNA’s shares. Accord that C.I.T. proposes to sell to Holdings are all ingly, this certification amends the Board’s certification of or part of the property by reason of which C.I.T. March 16, 1979, and provides prior certification for the sale controls within the meaning of section 2(a) of the of a portion of the additional shares. 2. This information derives from C.I.T.’s correspondence BHC Act a bank or bank holding company; and with the Board concerning its request for this certification, (C) the sale of such shares of NBNA is neces C.I.T.’s Registration Statement filed with the Board pursuant to the BHC Act, and other records of the Board. sary or appropriate to effectuate the policies of the 3. C.I.T. presently owns 6,215,494 of the outstanding vot BHC Act. ing shares of NBNA, including 555,364 shares acquired by C.I.T. after July 7, 1970. Under section 6158 of the Code, shares of NBNA acquired by C.I.T. after July 7, 1970, generally do not qualify for the tax benefits of section 6158(a) 4. Under section 6158 of the Code, C.I.T. must obtain a of the Code when sold by an otherwise qualified bank holding final certification from the Board after it has consummated the company. proposal that it has ceased to be a bank holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
442 Federal Reserve Bulletin □ May 1979 This certification is based upon the repre on December 31, 1970, as a result of the enact sentations made to the Board by C.I.T. and upon ment of the 1970 Amendments to the BHC Act, the facts set forth above. In the event that the by virtue of its ownership and control at that time Board should hereafter determine that the facts of more than 25 percent of the outstanding voting material to this certification are otherwise than as shares of Bank, and it registered as such with the provided by C.I.T., or that C.I.T. has failed to Board on July 29, 1971. Company would have disclose to the Board other material facts, the been a bank holding company on July 7, 1970, Board may revoke this certification. if the 1970 Amendments to the BHC Act had been By order of the Board of Governors, acting in effect on such date by virtue of its direct through its General Counsel pursuant to delegated ownership and control on that date of more than authority (12 C.F.R. § 265.2(6)(3)), effective 25 percent of the outstanding voting shares of April 9, 1979. Bank. Company presently owns and controls ap proximately 80.3 percent of the outstanding voting (Signed) Griffith L. Garwood, shares of Bank. [seal] Deputy Secretary of the Board. 4. Company acquired 100 percent of the out standing voting shares of Eicher’s, Inc., a retail floral business, and Seville Corporation, a business Frank J. Eicher Company, Inc., that owns and operates apartment complexes, on Coral ville, Iowa October 1, 1968, and has owned such shares continuously since that date. Prior Certification Pursuant to the Bank 5. Following the proposed divestiture, Com Holding Company Tax Act of 1976 pany will not engage in any nonbanking activities [Docket No. TCR 76-169] other than indirectly holding through Bank First (1st) Coralville Company, Coralville, Iowa, a real Frank J. Eicher Company, Inc., Coral ville, estate holding company, the sole asset of which Iowa (“Company”), has requested a prior certifi is the building occupied by Bank. cation pursuant to section 1101(a)(1) of the Inter 6. Company acquired the shares of Eicher’s, nal Revenue Code (“Code”), as amended by Inc., and Seville Corporation before July 7, 1970. section 2(a) of the Bank Holding Company Tax The disposition of the shares of these companies Act of 1976, that its proposed divestiture of 1,010 would be necessary or appropriate to effectuate voting shares of Eicher’s, Inc., Iowa City, Iowa, section 4 of the BHC Act if Company were to and 19,750 voting shares of Seville Corporation, continue to be a bank holding company beyond Iowa, City, Iowa, currently held by Company, December 31, 1980. through the pro rata distribution of such shares On the basis of the foregoing information, it to the two shareholders of Company who are is hereby certified that: husband and wife, is necessary or appropriate to A. Company is a qualified bank holding cor effectuate the policies of the Bank Holding Com poration within the meaning of section 1103(b) of pany Act (12 U.S.C. § 1841 et seq.) (“BHC the Code, and satisfies the requirements of that Act”). section; In connection with this request, the following B. The shares of Eicher’s, Inc., and Seville information is deemed relevant for the purpose of Corporation are “prohibited property” within the issuing the requested certification:1 meaning of section 1103(c) of the Code; 1. Company is a corporation organized under C. The distribution of the shares of Eicher’s, the laws of the state of Iowa on October 1, 1968. Inc., and Seville Corporation is necessary or ap 2. On January 1, 1969, Company acquired propriate to effectuate the policies of the BHC Act. 2,306 voting shares, representing approximately This certification is based upon the repre 55 percent of the outstanding voting shares, of sentations made to the Board by Company and uniBank and Trust Company, Coral ville, Iowa upon the facts set forth above. In the event the (“Bank”) (formerly Coralville Bank and Trust Board should hereafter determine that the facts Company). material to this certification are otherwise than as 3. Company became a bank holding company represented by Company or that Company has failed to disclose to the Board other material facts, 1. This information derives from Company’s com the Board may revoke this certification. munications with the Board concerning its request for this By order of the Board of Governors, acting certification, Company’s registration statement filed with the Board pursuant to the BHC Act, and other records of the Board. through its General Counsel pursuant to delegated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 443 authority (12 C.F.R. § 265.2(b)(3)), effective (Signed) Griffith L. Garwood, April 26, 1979. [seal] Deputy Secretary of the Board. Orders Approved Under Bank Holding Company Act By the Board of Governors During April 1979 the Board of Governors approved the applications listed below. Copies are available upon request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action (effective Applicant Bank(s) date) American National Bancorp, Inc., American Affiliates, Inc., April 13, 1979 South Bend, Indiana South Bend, Indiana Fairmont Bancorporation, Inc., The Fairmont National Bank, April 20, 1979 Fairmont, Minnesota Fairmont, Minnesota First Bankshares of Wyoming, The First National Bank and Trust April 27, 1979 Cheyenne, Wyoming Company of Wyoming, Cheyenne, Wyoming First Dover Investment Company, First Dover Investment Company, April 27, 1979 Inc., Elgin, Minnesota Inc., Elgin, Minnesota Ford Financial Corporation, Kempton State Bank & Trust April 17, 1979 Kempton, Illinois Company, Kempton, Illinois Presque Isle Bancorporation, Presque Isle Bank, April 6, 1979 Rogers City, Michigan Rogers City, Michigan St. Joseph Agency, Inc., St. Joseph Bank and Trust Company, April 16, 1979 South Bend, Indiana South Bend, Indiana Southwest Bancshares, Inc., Lewisville National Bank, April 18, 1979 Houston, Texas Lewisville, Texas Taylor Bancor, Inc., The Taylor State Bank, April 17, 1979 Emington, Illinois Emington, Illinois By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Alabama Bancorporation, Citizens National Bank of Atlanta April 27, 1979 Birmingham, Alabama Limestone County, Athens, Alabama Ellis Banking Corporation, Pan American Bank of Alta- Atlanta April 2, 1979 Bradenton, Florida monte Springs, Altamonte Springs, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
444 Federal Reserve Bulletin □ May 1979 Section 3 (Continued) Reserve Effective Applicant Bank(s) Bank date Mid-America Bancshares, Inc., Goppert Bancshares, Inc., Kansas City April 6, 1979 Pleasant Hill, Missouri Kansas City, Missouri Toledo Trustcorp, Inc., Peoples National Bank of Cleveland April 26, 1979 Toledo, Ohio Delphos, Delphos, Ohio Section 4 Nonbanking Company Reserve Effective Applicant (or activity) Bank date Mercantile Bankshares Corpora Reinsuring credit life and Richmond April 24, 1979 tion, Baltimore, Maryland credit accident and health insurance Tennessee Valley Bancorp, Expansion of the insurance Atlanta April 18, 1979 Inc., Nashville, Tennessee underwriting activities Orders Approved Under Bank Merger Act Reserve Effective Applicant Bank(s) Bank date Commercial Trust Company of Community State Bank and New York April 6, 1979 New Jersey, Jersey City, Trust Company, Linden, New Jersey New Jersey Pending Cases Involving the Board of Governors Does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Independent Insurance Agents of America, et al. Ella Jackson et al., v. Board of Governors, filed v. Board of Governors filed March 1979, November 1978, U.S.C.A. for the Fifth Circuit. U.S.C.A. for the District of Columbia. Manchester-Tower Grove Community Organi Gibralter Financial Corp. of California v. Board zation/ACORN v. Board of Governors, filed of Governors, filed March 1979, U.S.C.A. for September 1978, U.S.C.A. for the District of the District of Columbia. Columbia. Credit and Commerce American Investment, et Beckley v. Board of Governors, filed July 1978, al., v. Board of Governors, filed March 1979, U.S.D.C. for the Northern District of Illinois. U.S.C.A. for the District of Columbia. Independent Bankers Association of Texas v. First California Life Corporation v. Board of Gover National Bank in Dallas, et al., filed July 1978, nors, filed January 1979, U.S.C.A. for the U.S.C.A. for the Northern District of Texas. District of Columbia. Mid-Nebraska Bancshares, Inc. v. Board of Gov Consumers Union of the United States v. G. ernors, filed July 1978, U.S.C.A. for the Dis William Miller, et al., filed December 1978, trict of Columbia. U.S.D.C. for the District of Columbia. NCNB Corporation v. Board of Governors, filed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 445 June 1978, U.S.C.A. for the Fourth Circuit. Investment Company Institute v. Board of Gover United States League of Savings Associations v. nors, filed September 1977, U.S.D.C. for the Board of Governors, filed May 1978, U.S.D.C. District of Columbia. for the District of Columbia. BankAmerica Corporation v. Board of Gover Citicorp v. Board of Governors, filed March 1979, nors, filed May 1977, U.S.D.C. for the North U.S.C.A. for the Second Circuit. ern District of California. Security Bancorp and Security National Bank v. BankAmerica Corporation v. Board of Gover Board of Governors, filed March 1978, nors, filed May 1977, U.S.C.A. for the Ninth U.S.C.A. for the Ninth Circuit. Circuit. Michigan National Corporation v. Board of Gov Roberts Farms, Inc. v. Comptroller of the Cur ernors, filed January 1978, U.S.C.A. for the rency, et al., filed November 1975, U.S.D.C. Sixth Circuit. for the Southern District of California. Wisconsin Bankers Association v. Board of Gov Florida Association of Insurance Agents, Inc. v. ernors, filed January 1978, U.S.C.A. for the Board of Governors, and National Association District of Columbia. of Insurance Agents, Inc. v. Board of Gover Vickars-Henry Corp. v. Board of Governors, filed nors, filed August 1975, actions consolidated December 1977, U.S.C.A. for the Ninth Cir in U.S.C.A. for the Fifth Circuit. cuit. David R. Merrill, et al., v. Federal Open Market Emch v. The United States of America, et al., Committee of the Federal Reserve System, filed filed November 1977 for the Eastern District of May 1975, U.S.D.C. for the District of Colum Wisconsin. bia. Central Bank v. Board of Governors, filed Oc Bankers Trust New York Corporation v. Board tober 1977, U.S.C.A. for the District of Co of Governors, filed May 1973, U.S.C.A. for lumbia. the Second Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A l Financial and Business Statistics Contents Domestic Financial Statistics Weekly Reporting Commercial Banks A3 Monetary aggregates and interest rates Assets and Liabilities of— A4 Factors affecting member bank reserves A20 All reporting banks A5 Reserves and borrowings of member A21 Banks in New York City banks A22 Banks outside New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans A25 Gross demand deposits of individuals, Policy Instruments partnerships, and corporations A8 Federal Reserve Bank interest rates Financial M arkets A9 Member bank reserve requirements A10 Maximum interest rates payable on A25 Commercial paper and bankers time and savings deposits at federally acceptances outstanding insured institutions A26 Prime rate charged by banks on All Federal Reserve open market short-term business loans transactions A26 Terms of lending at commercial banks A27 Interest rates in money and capital Federal Reserve Banks markets A28 Stock market—Selected statistics A12 Condition and F.R. note statements A13 Maturity distribution of loan and A29 Savings institutions—Selected assets security holdings and liabilities Monetary and Credit Aggregates Federal Finance A13 Bank debits and deposit turnover A30 Federal fiscal and financing operations A14 Money stock measures and components A31 U.S. budget receipts and outlays A15 Aggregate reserves and deposits of A32 Federal debt subject to statutory member banks limitation A15 Loans and investments of all A32 Gross public debt of U.S. Treasury— commercial banks Types and ownership A33 U.S. government marketable securities—Ownership, by maturity Commercial Bank Assets and Liabilities A34 U.S. government securities dealers- A16 Last-Wednesday-of-month series Transactions, positions, and financing A17 Call-date series A35 Federal and federally sponsored credit A18 Detailed balance sheet, September 30, 1978 agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A2 Federal Reserve Bulletin □ May 1979 Securities Markets and International Statistics Corporate Finance A54 U.S. international transactions— A36 New security issues—State and local Summary governments and corporations A55 U.S. foreign trade A37 Open-end investment companies—Net A55 U.S. reserve assets sales and asset position A56 Foreign branches of U.S. banks— A37 Corporate profits and their distribution Balance sheet data A38 Nonfinancial corporations—Assets and A58 Selected U.S. liabilities to foreign liabilities official institutions A38 Business expenditures on new plant and equipment Reported by Banks in the United States A39 Domestic finance companies—Assets and liabilities; business credit A59 Liabilities to foreigners A61 Banks’ own claims on foreigners A62 Banks’ own and domestic customers’ Real Estate claims on foreigners A40 Mortgage markets A63 Banks’ own claims on unaffiliated A41 Mortgage debt outstanding foreigners A63 Liabilities to and claims on foreigners Consumer Installment Credit Securities Holdings and Transactions A42 Total outstanding and net change A43 Extensions and liquidations A64 Marketable U.S. Treasury bonds and notes—Foreign holdings and transactions Flow of Funds A64 Foreign official assets held at F.R. A44 Funds raised in U.S. credit markets Banks A45 Direct and indirect sources of funds to A65 Foreign transactions in securities credit markets Reported by Nonbanking Concerns in Domestic Nonfinancial Statistics the United States A66 Short-term liabilities to and claims on A46 Nonfinancial business activity— foreigners Selected measures A67 Long-term liabilities to and claims on A46 Output, capacity, and capacity foreigners utilization A47 Labor force, employment, and unemployment Interest and Exchange Rates A48 Industrial production—Indexes and A68 Discount rates of foreign central banks gross value A68 Foreign short-term interest rates A50 Housing and construction A51 Consumer and wholesale prices A52 Gross national product and income A69 Guide to Tabular Presentation A53 Personal income and saving and Statistical Releases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1978 1979 1978 1979 Q2 Q3 Q4 Ql Nov. Dec. Feb. Mar. Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)13 Member bank reserves 1 Total............................................................................. 6.2 8.6 2.3 -2.9 -3.6 -0.1 6.0 -21.0 1.8 2 Required..................................................................... 6.7 8.6 2.1 -2.8 -5.4 -0.4 6.6 -20.9 3.3 3 Nonborrowed............................................................. 0.6 6.6 4.6 -3.3 13.4 -4.9 2.2 -20.6 1.3 4 Monetary base1......................................................... 7.6 9.3 8.4 5.7 '5.9 '6.5 '9.5 -1.0 5.5 Concepts of money2 5 M-l............................................................................... 9.2 8.1 4.4 -2.4 -2.0 1.7 -5.3 -3.7 0.7 6 M-1 +........................................................................... 7.2 6.0 2.4 -5.4 -5.1 -1.6 -8.4 -7.0 -1.7 7 M-2............................................................................... 8.4 9.9 7.7 1.6 4.7 2.7 -1.2 '2.3 3.7 8 M-3............................................................................... 8.4 10.4 9.3 4.6 6.7 5.5 2.8 4.7 6.0 Time and savings deposits Commercial banks: 9 Total......................................................................... 11.5 11.3 12.4 8.4 21.9 5.1 9.0 8.6 -1.4 10 Savings..................................................................... 3.8 2.3 -0.9 -10.2 -9.6 -7.5 -13.0 -12.0 -6.1 11 Other time............................................................... 11.4 18.5 19.2 15.9 24.5 12.0 12.7 20.3 14.0 12 Thrift institutions 3................................................ 8.5 11.1 11.6 8.8 9.6 9.3 8.5 '8.2 9.1 13 Total loans and investments at commercial banks4 14.9 Ml.8 '10.7 11.0 r12.7 '0.4 '25.3 '10.9 2.0 1978 1979 1978 1979 Q2 Q3 Q4 Ql Dec. Jan. Feb. Mar. Apr. Interest rates (levels, per cent per annum) Short-term rates 14 Federal funds 5.......................................................................... 7.28 8.09 9.58 10.07 10.03 10.07 10.06 10.09 10.01 15 Federal Reserve discount6..................................................... 6.78 7.50 9.09 9.50 9.50 9.50 9.50 9.50 9.50 16 Treasury bills (3-month market yield)7.................................... 6.48 7.31 8.57 9.38 9.08 9.35 9.32 9.48 9.46 17 Commercial paper (90- to 119-day)7 >8............................... 7.16 8.03 9.83 10.04 10.37 10.25 9.95 9.90 9.85 Long-term rates Bonds: 18 U.S. Government9............................................................... 8.43 8.53 8.78 9.03 8.90 8.98 9.03 9.08 9.12 19 State and local government10.................................... 6.02 6.16 6.28 6.37 6.51 6.47 6.31 6.33 6.29 20 Aaa utility (new issue)11.................................................... 8.98 8.94 9.23 9.58 9.28 9.54 9.53 9.62 9.70 21 Conventional mortgages12.................................................... 9.58 9.80 10.12 10.33 10.30 10.30 10.35 10.35 10.35 1 Includes total reserves (member bank reserve balances in the current 6 Rate for the Federal Reserve Bank of New York. week plus vault cash held two weeks earlier); currency outside the U.S. 7 Quoted on a bank-discount basis. Treasury, Federal Reserve Banks and the vaults of commercial banks; 8 Beginning Nov. 1977, unweighted average of offering rates quoted and vault cash of nonmember banks. by at least five dealers. Previously, most representative rate quoted by 2 M-l equals currency plus private demand deposits adjusted. these dealers. M-l -(-equals M-l plus savings deposits at commercial banks, NOW 9 Market yields adjusted to a 20-year maturity by the U.S. Treasury. accounts at banks and thrift institutions, credit union share draft ac 10 Bond Buyer series for 20 issues of mixed quality. counts, and demand deposits at mutual savings banks. 11 Weighted averages of new publicly offered bonds rated Aaa, Aa, M-2 equals M-l plus bank time and savings deposits other than large and A by Moody’s Investors Service and adjusted to an Aaa basis. negotiable certificates of deposit (CDs). Federal Reserve compilations. M-3 equals M-2 plus deposits at mutual savings banks, savings and 12 Average rates on new commitments for conventional first mortgages loan associations, and credit union shares. on new homes in primary markets, unweighted and rounded to nearest 3 Savings and loan associations, mutual savings banks, and credit 5 basis points, from Dept, of Housing and Urban Development. unions. 13 Unless otherwise noted, rates of change are calculated from average 4 Quarterly changes calculated from figures shown in table 1.23. amounts outstanding in preceding month or quarter. 5 Seven-day averages of daily effective rates (average of the rates on a given date weighted by the volume of transactions at those rates). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A4 Domestic Financial Statistics □ May 1979 1.11 FACTORS AFFECTING MEMBER BANK RESERVES Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for weeks ending— Factors 1979 1979 Feb. Mar. Apr.p Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18» Apr. 25p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding......... 125,953 126,356 127,579 124,911 127,043 125,959 126,417 125,560 128,433 129,448 2 U.S. government securities i........... 103,335 105,359 105,618 104,111 106,041 105,979 105,732 104,230 105,648 107,267 3 Bought outright............................. 103,087 104,707 105,369 103,142 104,905 105,979 105,006 104,230 105,648 106,632 4 Held under repurchase agree ments ....................................... 248 652 249 969 1,136 0 726 0 0 635 5 Federal agency securities................. 7,528 7,633 7,515 7,683 7,856 7,464 7,622 7,464 7,464 7,610 6 Bought outright............................. 7,487 7,468 7,464 7,464 7,464 7,464 7,464 7,464 7,464 7,464 7 Held under repurchase agree ments ....................................... 41 165 51 219 392 0 158 0 0 146 8 Acceptances........................................ 88 152 61 261 260 0 87 0 0 195 9 Loans................................................... 973 999 897 882 1,024 1,082 867 628 950 990 10 Float.................................................... 8,955 5,933 6,635 5,841 5,455 5,024 5,675 6,429 7,460 6,513 11 Other Federal Reserve assets......... 5,074 6,280 6,853 6,133 6,407 6,410 6,434 6,810 6,911 6,874 12 Gold stock.............................................. 11,553 11,514 11,435 11,540 11,506 11,481 11,478 11,456 11,418 11,418 13 Special Drawing Rights certificate account............................................ 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 14 Treasury currency outstanding........... 11,949 12,050 12,161 12,025 12,062 12,076 12,135 12,128 12,167 12,180 ABSORBING RESERVE FUNDS 15 Currency in circulation........................ 110,951 111,764 113,367 111,970 111,888 111,747 112,349 113,332 113,976 113,492 16 Treasury cash holdings......................... 303 358 393 357 362 362 377 386 394 401 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury.................................................. 3,502 3,204 2,623 2,717 2,873 3,102 2,707 2,474 2,072 3,617 18 Foreign..................................................... 276 276 286 292 279 262 292 268 323 250 19 Other........................................................ 867 785 673 717 852 694 690 637 678 649 20 Other Federal Reserve liabilities and capital.............................................. 4,371 4,434 4,340 4,309 4,440 4,611 4,394 4,104 4,302 4,506 21 Member bank reserves with Federal Reserve Banks................................ 30,485 30,399 30,792 29,415 31,217 30,040 30,519 29,243 31,571 31,430 End-of-month figures Wednesday figures 1979 1979 Feb. Mar. Apr.p Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18^ Apr. 25^ SUPPLYING RESERVE FUNDS 22 Reserve bank credit outstanding......... 125,778 130,681 131,713 132,654 119,555 126,751 117,607 125,614 130,270 132,447 23 U.S. government securities1........... 103,486 110,940 108,588 106,492 97,142 104,705 95,822 103,225 104,465 108,016 24 Bought outright............................. 103,486 109,260 107,287 103,803 97,142 104,705 95,822 103,225 104,465 105,821 25 Held under repurchase agree ments ....................................... 0 1,680 1,301 2,689 0 0 0 0 0 2,195 26 Federal agency securities................. 7,487 7,832 7,613 8,354 7,464 7,464 7,464 7,464 7,464 8,095 27 Bought outright............................. 7,487 7,464 7,464 7,464 7,464 7,464 7,464 7,464 7,464 7,464 28 Held under repurchase agree ments ....................................... 0 368 149 890 0 0 0 0 0 631 29 Acceptances........................................ 0 204 252 757 0 0 0 0 0 575 30 Loans................................................... 1,603 963 1,255 1,438 1,839 1,498 721 476 3,171 1,527 31 Float.................................................... 8,631 4,337 6,900 9,408 6,601 6,575 7,208 7,927 8,152 7,195 32 Other Federal Reserve assets......... 4,571 6,405 7,105 6,205 6,509 6,509 6,392 6,522 7,018 7,039 33 Gold stock.............................................. 11,544 11,479 11,416 11,532 11,481 11,481 11,476 11,434 11,418 11,418 34 Special Drawing Rights certificate account............................................ 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 35 Treasury currency outstanding........... 12,018 12,114 12,205 12,025 12,070 12,085 12,128 12,128 12,177 12,183 ABSORBING RESERVE FUNDS 36 Currency in circulation........................ 111,334 111,988 113,182 112,265 112,020 112,228 113,029 114,088 114,177 113,671 37 Treasury cash holdings......................... 339 385 385 350 369 374 368 371 394 387 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury................................................... 3,443 5,726 3,100 3,318 2,106 3,178 756 865 4,868 4,067 39 Foreign..................................................... 343 303 388 262 225 271 244 225 252 275 40 Other........................................................ 779 708 813 746 677 661 545 669 682 692 41 Other Federal Reserve liabilities and capital............................................... 4,679 4,750 4,641 4,482 4,304 4,775 3,707 4,215 4,364 4,632 42 Member bank reserves with Federal Reserve Banks................................ 29,723 31,714 34,125 36,088 24,706 30,131 23,862 30,043 30,427 33,623 1 Includes securities loaned—fully guaranteed by U.S. government Note. For amounts of currency and coin held as reserves, see table securities pledged with Federal Reserve Banks—and excludes (if any) 1.12. securities sold and scheduled to be bought back under matched salepurchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Member Banks A5 1.12 RESERVES AND BORROWINGS Member Banks Millions of dollars Monthly averages of daily figures Reserve classification 1977 1978 1979 Dec. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.p All member banks Reserves 1 At Federal Reserve Banks.......... 27,057 28,079 28,010 28,701 29,853 31,158 31,935 30,485 30,399 30,792 9,351 9,512 9,605 9,654 9,794 10,330 11,093 10,074 9,776 9,741 3 Total held i...................................... 36,471 37,666 37,689 38,434 39,728 41,572 43,167 40,703 40,316 40,661 36,297 37,404 37,614 38,222 39,423 41,447 42,865 40,494 40,059 40,549 174 262 75 212 305 125 302 209 257 112 Borrowings at Federal Reserve Banks2 558 1,147 1,068 1,261 722 874 994 973 999 897 54 188 191 221 185 134 112 114 121 133 Large banks in New York City 6,244 6,334 6,182 6,428 6,682 7,120 7,808 6,995 6,892 6,821 6,279 6,290 6,251 6,349 6,658 7,243 7,690 6,976 6,845 6,837 -35 44 -69 79 24 -123 118 19 47 -16 48 58 78 157 48 99 117 45 61 Large banks in Chicago 1,593 1,648 1,655 1,672 1,791 1,907 2,011 1,824 1,822 1,776 1,613 1,646 1,650 1,649 1,765 1,900 2,010 1,823 1,809 1,824 -20 2 5 23 26 7 1 1 13 -48 26 3 35 14 4 10 23 10 26 16 Other large banks 13,993 14,502 14,564 14,862 15,547 16,446 16,942 16,055 15,844 15,813 13,931 14,423 14,541 14,867 15,447 16,342 16,923 16,018 15,802 16,013 62 79 23 -5 100 104 19 37 42 -200 243 417 363 408 194 276 269 275 215 268 All other banks 20 Reserves held...................................... 14,641 15,182 15,288 15,472 15,708 16,099 16,406 15,829 15,758 15,943 21 Required.......................................... 14,474 15,045 15,172 15,357 15,553 15,962 16,242 15,677 15,603 15,875 22 Excess.............................................. 167 137 116 115 155 137 164 152 155 68 23 Borrowings2........................................ 241 669 592 682 476 489 585 688 713 552 Weekly averages of daily figures for weeks ending— 1979 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18* Apr. 25* AH member banks Reserves 24 At Federal Reserve Banks.......... 31,414 29,846 30,434 29,415 31,217 30,040 30,519 29,243 31,571 31,430 25 Currency and coin......................... 9,321 9,737 9,818 10,394 9,133 9,760 9,776 10,071 9,655 9,317 26 Total held1...................................... 40,878 39,726 40,394 39,950 40,491 39,941 40,430 39,448 41,351 40,872 27 Required...................................... 40,521 39,637 40,190 39,849 40,345 39,858 40,042 39,292 41,140 40,716 28 Excess1........................................ 357 89 204 101 146 83 388 156 211 156 Borrowings at Federal Reserve Banks2 29 Total .......................................... 938 1,083 1,027 882 1,024 1,082 867 628 950 990 30 Seasonal.......................................... 123 123 108 109 123 134 130 119 126 143 Large banks in New York City 31 Reserves held...................................... 7,126 6,441 6,844 6,887 7,014 6,617 7,035 6,597 7,226 6,562 7,051 6,497 6,849 6,871 6,962 6,648 6,959 6,601 7,130 6,710 33 Excess.............................................. 75 -56 -5 16 52 -31 76 -4 96 -148 70 36 40 55 0 0 175 11 Large banks in Chicago 35 Reserves held...................................... 1,832 1,741 1,808 1,804 1,847 1,779 1,819 1,768 1,954 1,688 36 Required.......................................... 1,827 1,735 1,805 1,815 1,836 1,783 1,804 1,778 1,977 1,732 5 6 3 -11 11 -4 15 -10 -23 -44 2 4 43 2 69 0 0 0 69 0 Other large banks 39 Reserves held...................................... 16,102 15,737 15,992 15,672 15,863 15,740 15,795 15,459 15,702 16,197 16,006 15,736 15,948 15,688 15,902 15,730 15,660 15,474 16,241 16,118 96 1 44 -16 -39 10 135 -15 -539 79 196 309 267 247 151 213 164 199 241 381 All other banks 43 Reserves held...................................... 15,818 15,807 15,750 15,587 15,767 15,805 15,781 15,624 15,894 16,210 15,637 15,669 15,588 15,475 15,645 15,697 15,619 15,439 15,792 16,156 181 138 162 112 122 108 162 185 102 54 740 770 647 597 764 814 703 429 465 598 i Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which accordance with board policy, effective Nov. 19, 1975, of permitting figures are preliminary, figures by class of bank do not add to total transitional relief on a graduated basis over a 24-month period when a because adjusted data by class are not available, nonmember bank merges into an existing member bank, or when a 2 Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A6 Domestic Financial Statistics □ May 1979 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1979, week ending Wednesday Type Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 Total, 46 banks Basic reserve p9sition 1 Excess reserves1..................................... 1 14 23 — 182 136 80 60 48 Less: 2 Borrowings at Federal Reserve Banks............................................ 75 186 78 135 73 26 25 307 169 3 Net interbank federal funds 15,586 17,468 18,228 15,340 14,936 16,732 22,233 21,461 18,974 Equals: Net surplus, or deficit (—) 4 Amount................................................ -15,660 -17,641 -18,283 -15,474 -15,191 -16,622 -22,179 -21,707 -19,095 5 Percent of average required reserves. 93.8 102.3 106.9 89.2 89.8 96.6 132.7 121.3 111.6 Interbank federal funds transactions Gross transactions 22,337 24,736 25,264 23,226 22,687 24,440 28,231 27,904 25,501 7 Sales....................................................... 6,751 7,268 7,036 7,887 7,751 7,707 5,997 6,443 6,527 8 Two-way transactions2......................... 5,799 5,952 5,564 5,727 5,702 6,147 5,643 5,976 4,993 Net transactions 9 Purchases of net buying banks........ 16,538 18,784 19,700 17,499 16,985 18,293 22,588 21,929 20,509 10 Sales of net selling banks................. 952 1,316 1,472 2,159 2,050 1,561 354 467 1,534 Related transactions with U.S. government securities dealers 11 Loans to dealers 3.................................... 4,654 3,899 3,723 3,557 3,242 4,182 5,657 4,186 3,578 12 Borrowing from dealers4...................... 1,516 1,077 1,486 2,097 1,284 1,700 1,402 1,498 1,978 13 Net loans.................................................. 3,138 2,822 2,237 1,461 1,958 2,482 4,257 2,688 1,600 8 banks in New York City Basic reserve position 14 Excess reserves1...................................... -5 -12 3 40 -12 65 40 52 -5 Less: 15 Borrowings at Federal Reserve Banks............................................ 70 36 33 55 172 11 16 Net interbank federal funds transactions.................................. 2,227 4,002 4,566 2,768 3,056 3,987 6,274 5,344 5,090 Equals: Net surplus, or deficit (—) 17 Amount................................................. -2,232 -4,084 -4,600 -2,760 3,123 -3,923 -6,234 -5,463 -5,105 18 Percent of average required reserves. 37.9 65.7 73.9 43.8 51.9 62.0 104.2 84.9 84.4 Interbank federal funds transactions Gross transactions 19 Purchases.............................................. 3,616 5,064 5,574 4,613 4,456 5,057 7,086 6,653 6,071 1,389 1,062 1,008 1,845 1,399 1,070 812 1,309 981 21 Two-way transactions2......................... 1,262 1,062 1,008 1,295 1,399 1,070 812 1,310 981 Net transactions 22 Purchases of net buying banks........ 2,354 4,002 4,566 3,317 3,056 3,987 6,274 5,344 5,090 23 Sales of net selling banks................. 128 549 Related transactions with U.S. government securities dealers 24 Loans to dealers3.................................... 2,855 2,146 2,126 1,806 1,415 2,159 3,179 1,872 1,753 444 516 561 801 677 606 589 539 678 2,411 1,631 1,566 1,005 738 1,553 2,590 1,333 1,076 38 banks outside New York City Basic reserve position 6 26 21 -39 -170 71 40 8 53 Less: 28 Borrowings at Federal Reserve Banks............................................ 75 116 42 102 18 26 25 135 159 29 Net interbank federal funds 13,359 13,466 13,663 12,572 11,880 12,745 15,960 16,117 13,884 Equals : Net surplus, or deficit ( — ) 30 Amount................................................ -13,427 -13,557 -13,684 -12,714 -12,068 -12,700 -15,945 -16,245 -13,990 31 Percent of average required reserves. 124.2 122.9 125.9 115.2 110.8 116.8 148.6 141.8 126.4 Interbank federal funds transactions Gross transactions 18,721 19,672 19,690 18,614 18,231 19,383 21,145 21,251 19,431 5,362 6,206 6,028 6,042 6,352 6,638 5,185 5,134 5,546 34 Two-way transactions2......................... 4,537 4,890 4,556 4,432 4,302 5,077 4,831 4,667 4,012 Net transactions 35 Purchases of net buying banks........ 14,184 14,782 15,134 14,182 13,929 14,306 16,314 16,584 15,419 36 Sales of net selling banks................. 825 1,316 1,472 1,610 2,050 1,561 354 467 1,534 Related transactions with U.S. government securities dealers 37 Loans to dealers3.................................... 1,799 1,753 1,597 1,751 1,826 2,023 2,480 2,314 1,825 1,072 561 925 1,296 607 1,094 813 959 1,301 727 1,192 671 456 1,219 929 1,667 1,355 524 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Funds A7 1.13 Continued 1979, week ending Wednesday Type Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 5 banks in City of Chicago Basic reserve position 40 Excess reserves1...................................... 10 Less: 41 Borrowings at Federal Reserve Banks............................................ 43 69 64 42 Net interbank federal funds transactions................................. 5,258 5,617 5,629 5,262 4,947 5,501 6,210 7,073 5,926 43 Eq A u m al o s u : n N t e .. t .. . s .. u .. r .. p .. l .. u .. s .. , . . o .. r .. .. d .. e .. f . i . c .. i . t ............. -5,251 -5,655 -5,636 -5,329 -4,950 -5,491 -6,210 -7,130 -5,926 44 Percent of average required reserves. 324.6 335.9 332.7 310.3 297.2 325.4 373.6 383.9 366.8 Interbank federal funds transactions Gross transactions 45 Purchases.............................................. 6,756 7,096 6,921 6,776 6,349 6,711 7,407 6,711 7,124 46 Sales................................................... 1,498 1.478 1,293 1,514 1,402 1,211 1,197 1,211 1,198 47 Two-way transactions2......................... 1,470 1.478 1,281 1,496 1,356 1,188 1,170 1,188 1,167 Net transactions 48 Purchases of net buying banks____ 5,286 5,617 5,640 5,280 4,994 5,524 6,237 5,524 5,957 49 Sales of net selling banks................. 28 11 18 47 23 27 23 31 Related transactions with U.S. government securities dealers 50 Loans to dealers 3............................. 364 553 368 474 586 608 647 608 387 51 Borrowing from dealers4............... 81 8 135 226 54 26 2 26 15 52 Net loans............................................ 283 545 233 247 532 583 645 583 327 33 other banks Basic reserve position 53 Excess reserves1................................ 21 28 -41 -167 62 39 53 Less: 54 Borrowings at Federal Reserve Banks.................................. 75 74 42 34 18 26 25 71 159 55 Net interbank federal funds transactions........................... 8,101 7,849 8,034 7,310 6,933 7,245 9,749 9,044 7,959 Equals: Net surplus, or deficit (—) 56 Amount........................................... -8,177 -7,902 -8,048 -7,385 -7,118 -7,209 -9,735 -9,114 -8,064 57 Percent of average required reserves 88.9 84.6 87.7 79.3 77.2 78.5 107.4 95.0 85.4 Interbank federal funds transactions Gross transactions 58 Purchases............................................ 11,965 12,576 12,769 11,838 11,882 12,672 13,737 12,672 12,307 59 Sales..................................................... 3,864 A,121 4,735 4,528 4,949 5,427 3,988 5,427 4,348 60 Two-way transactions2....................... 3,067 3,411 3,275 2,936 2,947 3,889 3,661 3,889 2,846 Net transactions 61 Purchases of net buying banks----- 8,898 9,165 9,495 8,902 8,935 8,782 10,077 8,782 9,461 62 Sales of net selling banks............... 797 1,316 1,461 1,591 2,003 1,538 327 1,538 1,502 Related transactions with U.S. government securities dealers 63 Loans to dealers 3............................. 1,435 1,201 1,229 1,278 1,241 1,415 1,833 1,415 1,438 64 Borrowing from dealers4................ 992 553 790 1,069 553 1,068 811 1,068 1,286 65 Net loans............................................ 444 647 438 209 687 347 1.022 347 152 1 Based on reserve balances, including adjustments to include waivers 4 Federal funds borrowed, net funds acquired from each dealer by of penalities for reserve deficiencies in accordance with changes in policy clearing banks, reverse repurchase agreements (sales of securities to of the Board of Governors effective Nov. 19, 1975. dealers subject to repurchase), resale agreements, and borrowings secured 2 Derived from averages for individual banks for entire week. Figure by U.S. government or other securities. for each bank indicates extent to which the bank’s average purchases and sales are offsetting. Note. Weekly averages of daily figures. For description of series, see 3 Federal funds loaned, net funds supplied to each dealer by clearing August 1964 Bulletin, pp. 944-53. Back data for 46 banks appear in banks, repurchase agreements (purchases from dealers subject to resale), the board’s Annual Statistical Digest, 1971-1975, table 3. or other lending arrangements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A8 Domestic Financial Statistics □ May 1979 1 14 FEDERAL RESERVE BANK INTEREST RATES Per cent per annum Current and previous levels Loans to member banks Loans to all others Under sec. 10(b)2 under sec. 13, last par.4 Federal Reserve Under secs. 13 and 13a1 Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 4/30/79 date rate 4/30/79 date rate 4/30/79 date rate 4/30/79 date rate Boston........... 9% 11/2/78 m 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% New York. .. 9% 11/1/78 8% 10 11/1/78 .10*4 11/1/78 9% 12% 11/1/78 11% Philadelphia.. 9% 11/2/78 8% 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% Cleveland----- 9% 11/2/78 8% 10 11/2/78 10*i 11/2/78 9% 12% 11/2/78 11% Richmond. .. 9% 11/2/78 8% 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% Atlanta........... 9% 11/3/78 8% 10 11/3/78 10% 11/3/78 9% 12% 11/3/78 11% Chicago......... 9% 11/2/78 8i/i 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% K S M t a . i n n L s n o a e u s a i C p s. o . i . t l . i . y . s . . . . . . 9 9 91 % % /z 1 1 1 1 1 1 / / / 1 2 2 / / / 7 7 7 8 8 8 8 8 8 % i % /i 1 1 1 0 0 0 1 1 1 1 1 1 / / / 2 1 2 / / / 7 7 7 8 8 8 1 1 10 0 0 % % % 1 1 1 1 1 1 / / / 2 1 2/ / / 7 7 7 8 8 8 9 9 9 % % % 1 1 1 2 2 2 % % % 1 1 1 1 1 1 / / / 2 1 2/ / / 7 7 7 8 8 8 1 1 1 1 1 1 % % % Dallas............ 9 % 11/2/78 8% 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% San Francisco 9% 11/2/78 8% 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% Range of rates in recent years5 Range F.R. Range F.R. Range F.R. Effective date or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970, 5% 5% 1973—May 1 4 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535^%-6 2* 1976—Jan. 2 1 3 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5% 5% -6 5 5 % % 1971 _jan. 8............. 51/4-5% 5% 18................... 6 Nov. 22................... 5%-5% 5% 15............. 5% 5% June 11................... 6-6% 6% 26................... 5% 5% 19............. 5-5% 5% 15................... 6% 6% 22............. 5-5% 5 July 2................... 7 1977—Aug. 30................... 5 %-5 % 5% 29............. 5 5 Aug. 14................... 7-7% 31................... 5%-534 534 Feb. 13............. 43/4-5 5 23................... 7% k Sept. 2................... 5% 534 July 1 1 9 6. .. . . . . . . . .. . . . . . . . .. . . 4% 4V _5 a 4 5 3Va 1974—Apr. 25................... 7%-8 Oct. 26................... 6 6 2 3 5 5 30................... 8 1978—Jan. 9................... 6-6% 6% Nov 1 11 9 . . . . . . . . . . . . . . . . . . . . . . . .. . 43 4 4 3 - V 5 a 5 43Va Dec. 1 9 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7% 73 - / 8 4 m 7Va May 2 1 0 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6% 6% -7 7 6% Dec. 13............. 4%-4% 43Va 12................... 7 7 17............. 4%-4% 4% 1975—Jan. 6................... IVa-IVa 73Va July 3................... 7-7% 7% 2 4 4% 4% 10................... IVa-IVa 7i/a 10................... 7% 7% 1973—Jan. 15........... 5 5 Feb. 2 5 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63/ 7 4 - V 7 a 1/4 I 6 V 3V a a S A e u p g t . . 2 2 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 34 7 8 34 Feb. 26........ 5-5% 5% 7................... 63Va 63Va Oct. 16................... 8-8% 8% Mar. 2........... 5% 5% Mar. 10................... 6M-6K 6i/a 20................... 8% 8% Apr. 23........... 5%-5% 5% May 1 1 4 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 i - / 6 4 % 6 6 !Va Nov. 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8% 9% -9% 9 9 % % 23................... 6 6 In effect Apr. 30, 1979. .. 9% 9% 1 Discounts of eligible paper and advances secured by such paper or by 4 Advances to individuals, partnerships, or corporations other than U.S. government obligations or any other obligations eligible for Federal member banks secured by direct obligations of, or obligations fully Reserve Bank purchase. guaranteed as to principal and interest by, the U.S. government or any 2 Advances secured to the satisfaction of the Federal Reserve Bank. agency thereof. Advances secured by mortgages on 1- to 4-family residential property 5 Rates under secs. 13 and 13a (as described above). For description are made at the section 13 rate. and earlier data, see the following publications of the Board of Governors: 3 Applicable to special advances described in section 201.2(e)(2) of Banking and Monetary Statistics, 1914-1941, Banking and Monetary Regulation A. Statistics, 1941-1970, Annual Statistical Digest, 1971-75, 1972-76, and 1973-77. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Policy Instruments A9 1.15 MEMBER BANK RESERVE REQUIREMENTS1 Percent of deposits Requirements in effect Previous requirements April 30, 1979 Type of deposit, and deposit interval in millions of dollars Percent Effective date Percent Effective date Net demand2 7 12/30/76 m 2/13/75 m 12/30/76 10 2/13/75 10-100..................................................................................................... 11 Va 12/30/76 12 2/13/75 100-400................................................................................................... 12?!* 12/30/76 13 2/13/75 Over 400.................................................................................................. 161/4 12/30/76 16^ 2/13/75 Time and savings2*3.4 Savings................................................................................................... 3 3/16/67 3 Vi 3/2/67 Time 5....................................................................................................... 0-5 by maturity 3 3/16/67 m 3/2/67 2 % 1/8/76 3 3/16/67 1 10/30/75 3 3/16/67 Over 5, by maturity 30-179 days.................................................................................... 6 12/12/74 5 10/1/70 2'A 1/8/76 3 12/12/74 4 years or more............................................................................. 1 10/30/75 3 12/12/74 Legal limits Minimum Maximum Net demand Reserve city banks................................................................................ 10 22 Other banks.......................................................................................... 7 14 3 10 Borrowings from foreign banks............................................................. 0 22 1 For changes in reserve requirements beginning 1963, see board’s on net balances due from domestic banks to their foreign branches and Annual Statistical Digest, 1971-1975 and for prior changes, see board’s on deposits that foreign branches lend to U.S. residents were reduced to Annual Report for 1976, table 13. zero from 4 percent and 1 percent, respectively. The Regulation D reserve 2 (a) Requirement schedules are graduated, and each deposit interval requirement on borrowings from unrelated banks abroad was also reduced applies to that part of the deposits of each bank. Demand deposits to zero from 4 percent. subject to reserve requirements are gross demand deposits minus cash (d) EflFective with the reserve computation period beginning Nov. 16, items in process of collection and demand balances due from domestic 1978, domestic deposits of Edge Corporations are subject to the same banks. reserve requirements as deposits of member banks. (b) The Federal Reserve Act specifies different ranges of requirements 3 Negotiable order of withdrawal (NOW) accounts and time deposits for reserve city banks and for other banks. Reserve cities are designated such as Christmas and vacation club accounts are subject to the same under a criterion adopted effective Nov. 9, 1972, by which a bank having requirements as savings deposits. net demand deposits of more than $400 million is considered to have the 4 The average reserve requirement on savings and other time deposits character of business of a reserve city bank. The presence of the head must be at least 3 percent, the minimum specified by law. office of such a bank constitutes designation of that place as a reserve 5 Effective November 2, 1978, a supplementary reserve requirement of city. Cities in which there are Federal Reserve Banks or branches are also 2 percent was imposed on time deposits of $100,000 or more, obligations reserve cities. Any banks having net demand deposits of $400 million or of affiliates, and ineligible acceptances. less are considered to have the character of business of banks outside of reserve cities and are permitted to maintain reserves at ratios set for banks Note. Required reserves must be held in the form of deposits with not in reserve cities. For details, see the board’s Regulation D. Federal Reserve Banks or vault cash. (c) Effective August 24, 1978, the Regulation M reserve requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A10 Domestic Financial Statistics □ May 1979 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Commercial banks Savings and loan associations and mutual savings banks Type and maturity of deposit In effect Apr. 30, 1979 Previous maximum In effect Apr. 30, 1979 Previous maximum Percent Effective Percent Effective Percent Effective Percent Effective date date date date 1 Savings........................................................... 5 7/1/73 4*4 1/21/70 5% (7) 5 (8) 2 Nego a t c ia c b ou le n ts1 or .. d .. e .. r .. ...... o .. f .. ..... w ... i . t . h ... d .. r .. a .. w .. a .. l .. 5 1/1/74 (10) 5 1/1/74 (10) 3 Money market time deposits of less than $100,0002.................................. (9) (9) (9) (9) (9) (9) (9) (9) Time (multiple- and single-maturity unless otherwise indicated)3 30-89 days 4 Multiple-maturity................................ 7/1/73 41/4 1/21/70 (10) (10) 5 Single-maturity..................................... 5 9/26/66 90 days to 1 year 6 7 S M in u g lt le ip -m le- a m tu a r t i u ty r . i . t .. y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Vi 7/1/73 7 9 / / 2 2 0 6 / / 6 66 6 45V4 (7) 5% 1/21/70 1 9 0 8 2 2 1 y t t 2 o o t 2 2 o Y y 4 i e a y y r e e s a a 4 r r . s s .. 4 4 .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 % 7 7 / / 1 1 / / 7 7 3 3 5 5 5 V * % A 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 6 V y 4 4 ( ( 7 7 ) ) { I 6 * 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 11 4 to 6 years5............................................. 7Va 11/1/73 (") m 11/1/73 (“) 12 6 to 8 years 5............................................ 7V4 12/23/74 7% 11/1/73 m 12/23/74 m 11/1/73 13 8 years or more5.................................... m 6/1/78 (10) 8 6/1/78 (10) 14 Issued to governmental units (all maturities)....................................... 8 6/1/78 m 12/23/74 8 6/1/78 m 12/23/74 15 Individual retirement accounts and Keogh (H.R. 10) plans6............... 8 6/1/78 m 7/6/77 8 6/1/78 m 7/6/77 1 For authorized states only. Federally insured commercial banks, Beginning March 15, 1979, the V4 percentage point interest differential savings and loan associations, cooperative banks, and mutual savings is removed when the 6-month Treasury bill rate is 9 percent or more. banks in Massachusetts and New Hampshire were first permitted to offer The full differential is in effect when the 6-month bill rate is 8% percent negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974. or less. Thrift institutions may pay a maximum 9 percent when the 6-month Authorization to issue NOW accounts was extended to similar institutions bill rate is between 8% and 9 percent. Also effective March 15, 1979, throughout New England on Feb. 27, 1976, and in New York State on interest compounding was prohibited on money market time deposits Nov. 10, 1978. at all offering institutions. For both commercial banks and thrift institu 2 Must have a maturity of exactly 26 weeks and a minimum denomina tions, the maximum allowable rates in April were as follows: April 5, tion of $10,000, and must be nonnegotiable. 9.496; April 12, 9.572; April 19, 9.627; April 26, 9.295. 3 For exceptions with respect to certain foreign time deposits see the 10 No separate account category. Federal Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. 11 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for 1094), and February 1968 (p. 167). certificates maturing in 4 years or more with minimum denominations 4 A minimum of $ 1,000 is requi red for savings and loan associations, of $1,000; however, the amount of such certificates that an institution except in areas where mutual savings banks permit lower minimum de could issue was limited to 5 percent of its total time and savings deposits. nominations. This restriction was removed for deposits maturing in less Sales in excess of that amount, as well as certificates of less than $1,000, than 1 year, effective Nov. 1, 1973. were limited to the 6Vi percent ceiling on time deposits maturing in 2Vi 5 $1,000 minimum except for deposits representing funds contributed years or more. to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing tablished pursuant to the Internal Revenue Code. The $1,000 minimum in 4 years or more with minimum denominations of $1,000. There is no requirement was removed for such accounts in December 1975 and No limitation on the amount of these certificates that banks can issue. vember 1976, respectively. Note. Maximum rates that can be paid by federally insured commer 6 3-year minimum maturity. cial banks, mutual savings banks, and savings and loan associations are 7 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and established by the Board of Governors of the Federal Reserve System, loan associations. the Board of Directors of the Federal Deposit Insurance Corporation, 8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and and the Federal Home Loan Bank Board under the provisions of 12 loan associations. CFR 217, 329, and 526, respectively. The maximum rates on time de 9 Commercial banks, savings and loan associations, and mutual savings posits in denominations of $100,000 or more were suspended in midbanks were authorized to offer money market time deposits effective 1973. For information regarding previous interest rate ceilings on all June 1, 1978. The ceiling rate for commercial banks is the discount rate types of accounts, see earlier issues of the Federal Reserve Bulletin, on most recently issued 6-month U.S. Treasury bills. Until March 15, the Federal Home Loan Bank Board Journal, and the Annual Report 1979, the ceiling rate for savings and loan associations and mutual savings of the Federal Deposit Insurance Corporation. banks was V4 percentage point higher than the rate for commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Policy Instruments A ll 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1978 1979 1976 1977 1978 Type of transaction Sept. Oct. Nov. Dec. Jan. Feb. Mar. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases........................................................ 14,343 13,738 16,628 2,635 1,978 2,039 0 0 0 2,012 2 Gross sales................................................................. 8,462 7,241 13,725 0 2,148 3,587 2,751 3,758 228 475 3 Redemptions.............................................................. 2 5,017 2,136 2,033 0 0 603 0 500 400 400 Others within 1 year1 4 Gross purchases........................................................ 472 3,017 1,184 168 73 139 0 0 48 2,600 5 Gross sales................................................................. 0 0 0 0 0 0 0 0 0 0 6 Exchange, or maturity shift................................... 792 4,499 -5,170 563 -385 -778 705 -673 -30 724 7 Redemptions............................................................. 0 2,500 0 0 0 0 0 0 0 0 1 to 5 years 8 Gross purchases........................................................ 2 3,202 2,833 4,188 350 507 628 0 0 426 0 9 Gross sales................................................................. 177 0 0 0 0 0 0 0 0 0 10 Exchange, or maturity shift.................................... -2,588 -6,649 -178 -563 385 -657 -705 673 2,205 -724 5 to 10 years 11 Gross purchases........................................................ 1,048 758 1,526 110 87 163 0 0 134 0 12 Gross sales................................................................. 0 0 0 0 0 0 0 0 0 0 13 Exchange, or maturity shift.................................... 1,572 584 2,803 0 0 835 0 0 -2,975 0 Over 10 years 14 Gross purchases........................................................ 642 553 1,063 122 139 108 0 0 93 0 15 Gross sales................................................................. 0 0 0 0 0 0 0 0 0 0 16 Exchange, or maturity shift.................................... 225 1,565 2,545 0 0 600 0 0 800 0 All maturities1 17 Gross purchases........................................................ 219,707 20,898 24,591 3,386 2,785 3,075 0 0 700 4,612 18 Gross sales................................................................. 8,639 7,241 13,725 0 2,148 3,587 2,751 3,758 228 475 19 Redemptions............................................................. 25,017 4,636 2,033 0 0 603 0 500 400 400 Matched sale-purchase transactions 20 Gross sales.................................................................. 196,078 425,214 511,126 33,346 35,112 40,785 52,661 64,691 56,291 61,669 21 Gross purchases........................................................ 196,579 423,841 510,854 33,130 36,106 40,546 51,586 60,750 58,426 63,707 Repurchase agreements 22 Gross purchases........................................................ 232,891 178,683 151,618 10,724 18,976 7,719 8,133 3,117 6,931 11,817 23 Gross sales................................................................. 230,355 180,535 152,436 10,353 20,565 8,383 7,049 4,201 6,931 10,137 24 Net change in U.S. government securities......... 9,087 5,798 7,743 3,540 43 -2,017 -2,743 -9,283 2,207 7,454 FEDERAL AGENCY OBLIGATIONS Outright transactions 25 Gross purchases........................................................ 891 1,433 301 0 0 0 0 0 0 0 26 Gross sales................................................................. 0 0 173 0 0 0 0 379 20 0 27 Redemptions............................................................. 169 223 235 28 12 39 3 10 * 23 Repurchase agreements 28 Gross purchases........................................................ 10,520 13,811 40,567 3,877 6,675 2,544 4,307 713 1,152 2,851 29 Gross sales................................................................. 10,360 13,638 40,885 3,348 7,196 2,670 4,174 846 1,152 2,482 30 Net change in federal agency obligations.......... 882 1,383 -426 501 -533 -165 130 -522 -20 345 BANKERS ACCEPTANCES 31 Outright transactions, net...................................... -545 -196 0 0 0 0 0 0 0 0 32 Repurchase agreements, net.................................. 410 159 -366 419 -479 -236 587 -587 0 204 33 Net change in bankers acceptances...................... -135 -37 -366 419 -479 -236 587 -587 0 204 34 Total net change in System Open Market Account............................................................... 9,833 7,143 6,951 4,460 -969 -2,419 -2,026 -10,392 2,187 8,003 1 Both gross purchases and redemptions include special certificates amounting to $189 million. Acquisition of these notes is treated as a created when the Treasury borrows directly from the Federal Reserve, purchase; the run-off of bills, as a redemption. as follows (millions of dollars): 1975, 3,549; 1976, none; Sept. 1977, 2,500; Mar. 1979, 2,600. Note. Sales, redemptions, and negative figures reduce holdings of 2 In 1975, the System obtained $421 million of 2-year Treasury notes the System Open Market Account; all other figures increase such holdings. in exchange for maturing bills. In 1976 there was a similar transaction Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A12 Domestic Financial Statistics □ May 1979 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of month Account 1979 1979 Mar. 28 Apr. 4 Apr. 11 Apr. 18? Apr. 25* Feb. Mar. Apr.P Consolidated condition statement ASSETS 1 Gold certificate account............................................ 11,481 11,476 11,434 11,418 11,418 11,544 11,479 11,416 2 Special Drawing Rights certificate account.......... 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 3 380 385 377 381 393 344 395 405 Loans 4 Member bank borrowings........................................ 1,498 721 476 3,171 1,527 1,603 963 1,255 5 0 0 0 0 0 0 0 0 Acceptances 6 0 0 0 0 0 0 0 0 7 0 0 0 0 575 0 204 252 Federal agency obligations 8 7,464 7,464 7,464 7,464 7,464 7,487 7,464 7,464 9 Held under repurchase agreements......................... 0 0 0 0 631 0 368 149 U.S. government securities Bought outright 10 Bills............................................................................ 36,686 28,442 35,206 36,446 37,802 35,467 38,641 39,268 11 0 0 0 0 0 0 2,600 0 12 0 0 0 0 0 0 0 0 13 54,662 54,023 54,662 54,662 54,662 54,662 54,662 54,662 14 13,357 13,357 13,357 13,357 13,357 13,357 13,357 13,357 15 104,705 95,822 103,225 104,465 105,821 103,486 109,260 107,287 16 0 0 0 0 2,195 0 1,680 1,301 17 104,705 95,822 103,225 104,465 108,016 103,486 110,940 108,588 18 Total loans and securities.......................................... 113,667 104,007 111,165 115,100 118,213 112,576 119,939 117,708 19 12,594 14,183 14,785 16,419 14,240 15,229 10,271 12,805 20 396 396 395 397 397 395 396 397 Other assets 21 3,774 3,777 3,812 3,814 3,814 2,266 3,754 3,745 22 2,339 2,219 2,315 2,807 2,828 1,910 2,255 2,963 23 145,931 137,743 145,583 151,636 152,603 145,564 149,789 150,739 LIABILITIES 100,896 101,654 102,708 102,776 102,269 99,999 100,654 101,767 Deposits 25 30,131 23,862 30,043 30,427 33,623 29,723 31,714 34,125 26 3,178 756 865 4,868 4,067 3,443 5,726 3,100 27 271 244 225 252 275 343 303 388 28 661 545 669 682 692 779 708 813 29 34,241 25,407 31,802 36,229 38,657 34,288 38,451 38,426 30 6,019 6,975 6,858 8,267 7,045 6,598 5,934 5,905 31 Other liabilities and accrued dividends 3................ 1,902 1,384 1,714 1,692 1,783 1,859 1,795 1,663 32 143,058 135,420 143,082 148,964 149,754 142,744 146,834 147,761 CAPITAL ACCOUNTS 33 1,110 1,112 1,113 1,113 1,116 1,088 1,113 1,117 34 1,078 1,078 1,078 1,078 1,078 1,078 1,078 1,078 35 685 133 310 481 655 654 764 783 36 145,931 137,743 145,583 151,636 152,603 145,564 149,789 150,739 37 Memo: Marketable U.S. government securities held in custody for foreign and international 90,623 86,900 86,412 85,999 85,957 94,611 89,184 84,423 Federal Reserve note statement 38 Federal Reserve notes outstanding (issued to Bank)..................................................................... 114,098 114,432 114,435 114,957 115,490 113,160 114,135 115,604 Collateral held against notes outstanding 39 Gold certificate account............................................. 11,481 11,476 11,434 11,418 11,418 11,544 11,479 11,416 40 Special Drawing Rights certificate account.......... 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 41 Eligible paper.............................................................. 1,225 647 414 2,512 1,117 1,424 845 986 42 100.092 101,009 101,287 99,727 101,655 98,892 100,511 101,902 43 114,098 114,432 114,435 114,957 115,490 113,160 114,135 115,604 1 Includes securities loaned—fully guaranteed by U.S. government 2 Beginning December 29, 1978, such assets are revalued monthly securities pledged with Federal Reserve Banks—and excludes (if any) at market exchange rates. securities sold and scheduled to be bought back under matched sale- 3 includes exchange-translation account reflecting, beginning December purchase transactions. 29, 1978, the monthly revaluation at market exchange rates of foreignexchange commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Reserve Banks A13 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity 1979 1979 Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 Feb. 28 Mar. 31 Apr. 30 1,495 721 476 3,171 1,527 1,604 964 1,255 2 Within 15 days............................................................... 1,463 664 412 3,140 1,492 1,577 905 1,211 3 16 days to 90 days........................................................ 32 57 64 31 35 27 59 44 0 0 0 0 0 0 0 0 5 Acceptances.................................................................... 0 0 0 0 575 0 204 252 6 Within 15 days............................................................... 0 0 0 0 575 0 204 252 7 16 days to 90 days........................................................ 0 0 0 0 0 0 0 0 8 91 days to 1 year........................................................... 0 0 0 0 0 0 0 0 9 U.S. government securities.......................................... 104,705 95,822 103,225 104,465 108,016 103,486 110,940 108,588 10 Within 15 days*............................................................. 4,998 4,384 4,105 4,214 5,534 3,084 7,663 5,284 11 16 days to 90 days........................................................ 16,550 8,645 14,776 15,494 18,444 16,546 20,031 18,905 25,506 25,866 26,777 27,190 26,471 25,864 25,595 27,113 13 Over 1 year to 5 years................................................. 34,208 33,484 34,124 34,124 34,124 34,549 34,208 33,843 14 Over 5 years to 10 years.............................................. 11,875 11,875 11,875 11,875 11,875 11,875 11,875 11,875 11,568 11,568 11,568 11,568 11,568 11,568 11,568 11,568 16 Federal agency obligations.......................................... 7,464 7,464 7,464 7,464 8,095 7,487 7,832 7,613 25 0 55 117 693 114 393 211 18 16 days to 90 days........................................................ 553 611 591 529 604 344 553 604 19 91 days to 1 year........................................................... 994 961 986 986 945 1,098 994 945 20 Over 1 year to 5 years................................................. 3,509 3,509 3,486 3,486 3,507 3,553 3,509 3,507 1,573 1,573 1,536 1,536 1,571 1,568 1,573 1,571 22 Over 10 years................................................................. 810 810 810 810 775 810 810 775 i Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 1.20 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates. 1978 1979 Bank group, or type 1975 1976 1977 of customer Oct. Nov. Dec. r Jan. Feb. Debits to demand deposits 2 (seasonally adjusted) 1 All commercial banks................ 25,028.5 29,180.4 34,322.8 42,942.5 42,941.5 41,781.8 44,683.3 43,818.6 2 Major New York City banks.. 9,670.7 11,467.2 13,860.6 15,437.8 15,673.6 14,661.8 16,345.5 15,433.7 3 Other banks.................................. 15,357.8 17,713.2 20,462.2 27,504.7 27,267.9 27,120.0 28,337.8 28,384.9 Debits to savings deposits 3 (not seasonally adjusted) 4 All customers................................ 174.0 467. 6 446.0 443.1 578.7 445.9 5 Business 1...................................... 21.7 67.2 66.8 69.9 76.2 55.6 6 Others............................................. 152.3 400.4 379.1 373.3 502.6 390.3 Demand deposit turnover 2 (seasonally adjusted) 7 All commercial banks................. 105.3 116.8 129.2 144.1 145.1 139.8 151.7 150.5 8 Major New York City banks.. 356.9 411.6 503.0 530.1 559.8 520.4 584.2 565.1 9 Other banks.................................. 72.9 79.8 85.9 102.3 101.8 100.2 106.3 107.5 Savings deposit turnover 3 (not seasonally adjusted) 10 All customers................................ 1.6 2.1 2.0 2.0 2.7 2.1 11 Business 1...................................... 4.1 5.8 5.8 6.0 6.9 5.3 12 Others............................................. 1.5 1.9 1.8 1.8 2.5 1.9 1 Represents corporations and other profit-seeking organizations (ex Note. Historical data—estimated for the period 1970 through June cluding commercial banks but including savings and loan associations, 1977, partly on the basis of the debits series for 233 SMSAs, which were mutual savings banks, credit unions, the Export-import Bank, and available through June 1977—are available from Publications Services, federally sponsored lending agencies). Division of Administrative Services, Board of Governors of the Federal 2 Represents accounts of individuals, partnerships, and corporations, Reserve System, Washington, D.C. 20551. Debits and turnover data and of states and political subdivisions. for savings deposits are not available prior to July 1977. 3 Excludes negotiable order of withdrawal (NOW) accounts and special club accounts, such as Christmas and vacation clubs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A14 Domestic Financial Statistics □ May 1979 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1978 1979 1975 1976 1977 1978 Dec. Dec. Dec. Dec. Item Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted MEASURES i 1 M-l........................................................... 295.4 313.8 338.7 361.5 361.6 361.0 361.5 359.9 358.8 359.0 2 M-1 + ....................................................... 456.8 517.2 560.6 586.4 589.7 587.2 586.4 582.3 578.9 578.1 3 M-2........................................................... 664.8 740.6 809.4 876.3 870.9 874.3 876.3 875.4 r877.1 879.8 4 M-3........................................................... 1,092.4 1,235.6 1,374.3 1,500.6 1,485.5 1,493.8 1,500.6 1,504.1 1,510.0 1,517.6 5 M-4........................................................... 745.8 803.0 883.1 972.9 959.6 969.7 972.9 975.9 979.2 978.8 6 M-5........................................................... 1,173.5 1,298.0 1,448.0 1,597.3 1,574.1 1,589.2 1,597.3 1,604.6 '•1,612.2 1,616.6 COMPONENTS 7 Currency.................................................. 73.8 80.8 88.6 97.5 95.8 96.6 97.5 98.2 98.9 99.4 Commercial bank deposits 8 Demand................................................... 221.7 233.0 250.1 264.1 265.8 264.4 264.1 261.7 259.9 259.6 9 Time and savings.................................... 450.3 489.2 544.4 611.4 597.9 608.8 611.4 616.0 620.4 619.7 10 Savings................................................. 160.7 202.1 219.7 222.0 225.2 223.4 222.0 219.6 111 A 216.3 11 Negotiable CDs 2............................... 81.0 62.4 73.7 96.6 88.6 95.4 96.6 100.5 102.1 99.0 12 Other time.......................................... 208.6 224.7 251.0 292.8 284.1 289.9 292.8 295.9 300.9 304.4 13 Nonbank thrift institutions 3............... 427.7 495.0 564.9 624.3 614.6 619.5 624.3 628.7 "633.0 637.8 Not seasonally adjusted MEASURES i 14 M-l........................................................... 303.9 322.6 348.2 371.6 361.4 363.0 371.6 365.7 352.0 353.8 15 M-l + ....................................................... 463.6 524.2 568.0 594.4 587.8 587.4 594.4 587.3 571.5 574.1 16 M-2........................................................... 670.0 745.8 814.9 882.0 868.2 871.6 882.0 880.1 871.4 878.5 17 M-3.......................................................... 1,095.0 1,238.3 1,377.2 1,503.3 1,481.6 1,487.8 1,503.3 1,507.2 rl,502.5 1,517.5 18 M-4........................................................... 753.5 810.0 890.8 981.6 959.0 968.0 981.6 981.2 970.9 976.0 19 M-5........................................................... 1,178.4 1,302.6 1,453.2 1,602.9 1,572.4 1,584.2 1,602.9 1,608.3 1,602.0 1,615.0 COMPONENTS 20 Currency................................................. 75.1 82.1 90.1 99.1 95.6 97.2 99.1 97.4 97.6 98.6 Commercial bank deposits 21 Demand................................................... 228.8 240.5 258.1 272.5 265.8 265.7 272.5 268.3 254.4 255.2 Member............................................... 162.8 169.4 177.5 182.9 179.3 178.3 182.9 179.2 169.5 170.3 Domestic nonmember..................... 62.6 67.5 76.2 85.6 82.7 83.7 85.6 84.9 81.0 80.8 24 Time and savings.................................... 449.6 487.4 542.6 609.9 597.6 605.0 609.9 615.5 618.9 622.2 25 Savings................................................. 159.1 200.2 217.7 219.9 223.5 221.5 219.9 218.8 216.7 217.5 26 Negotiable CDs2............................... 83.5 64.3 75.9 99.5 90.8 96.4 99.5 101.1 99.6 97.5 27 Other time.......................................... 207.1 222.9 249.0 290.5 283.3 287.1 290.5 295.6 302.6 307.2 28 Other checkable deposits4................... 0.7 1.4 2.1 2.9 2.8 2.9 2.9 2.8 2.8 2.8 29 Nonbank thrift institutions3............... 424.9 492.5 562.3 621.3 613.4 616.2 621.3 627.1 631.1 639.0 30 U.S. government deposits (all commercial banks)....................... 4.1 4.4 5.1 10.2 4.3 8.0 10.2 12.0 8.3 6.5 i Composition of the money stock measures is as follows: of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). M-l: Averages of daily figures for (1) demand deposits at commercial M-4: M-2 plus large negotiable CDs. banks other than domestic interbank and U.S. government, less cash items M-5: M-3 plus large negotiable CDs. in process of collection and Federal Reserve float; (2) foreign demand 2 Negotiable time CDs issued in denominations of $100,000 or more balances at Federal Reserve Banks; and (3) currency outside the Treasury, by large weekly reporting commercial banks. Federal Reserve Banks, and vaults of commercial banks. 3 Average of the beginning- and end-of-month figures for deposits of M-1 + : M-l plus savings deposits at commercial banks, NOW accounts mutual savings banks, for savings capital at savings and loan associations, at banks and thrift institutions, credit union share draft accounts, and and for credit union shares. demand deposits at mutual savings banks. 4 Includes NOW accounts at thrift institutions, credit union share M-2: M-l plus savings deposits, time deposits open account, and time draft accounts, and demand deposits at mutual savings banks. certificates of deposit (CDs) other than negotiable CDs of $100,000 or more at large weekly reporting banks. Note. Latest monthly and weekly figures are available from the board’s M-3: M-2 plus the average of the beginning- and end-of-month deposits (H.6) 508 release. Back data are available from the Banking Section, Division of Research and Statistics. NOTES TO TABLE 1.23: 1 Adjusted to exclude domestic commercial interbank loans and ments” were increased by $1.5 billion largely as the result of reclassifica Federal funds sold to domestic commercial banks. tions of certain tax-exempt obligations. 2 Loans sold are those sold outright to a bank’s own foreign branches, 6 As of Dec. 31, 1978, commercial and industrial loans were reduced by nonconsolidated nonbank affiliates of the bank, the bank’s holding $0.1 billion as a result of reclassifications. company (if not a bank), and nonconsolidated nonbank subsidiaries of 7 As of Dec. 31, 1978, commercial and industrial loans sold outright the holding company. were increased by $0.7 billion as the result of reclassifications, but $0.1 3 As of Mar. 31, 1976, reclassification of loans reduced these loans by billion of this amount was offset by a balance sheet reduction of $0.1 about $1.2 billion. billion as noted above. 4 As of Dec. 31, 1977, reclassification of loans at one large bank reduced these loans by about $200 million. Note. Data are for last Wednesday of month except for June 30 and 5 As of Dec. 31, 1978, total loans and investments were reduced by December 31 call report data. Data revised beginning July 1978 to reflect $0.1 billion. Total loans were reduced by $1.6 billion, and “Other invest adjustments to preliminary December 31, 1978, Call Report data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Aggregates A15 1.22 AGGREGATE RESERVES AND DEPOSITS Member Banks Billions of dollars, averages of daily figures 1978 1979 1975 1976 1977 Dec. Dec. Dec. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Reserves1........................................................................... 34.67 34.89 36.10 37.93 38.21 38.38 39.75 41.27 41.48 40.75 40.81 2 Nonborrowed................................................................... 34.54 34.84 35.53 36.79 37.15 37.10 39.05 40.40 40.48 39.78 39.82 3 Required............................................................................ 34.40 34.61 35.91 37.77 38.02 38.22 39.53 41.04 41.26 40.54 40.66 4 Monetary base2............................................................... 106.7 118.4 127.8 r135.4 136.8 137.8 r140.0 r142.3 143.4 143.3 143.9 5 Deposits subject to reserve requirements 3................... 504.2 528.6 568.6 602.7 607.0 608.9 616.9 616.7 621.1 619.7 616.4 336.8 354.1 386.7 413.0 416.8 418.3 427.5 429.4 433.5 436.1 434.1 Demand 7 Private................................................................................ 164.5 171.5 178.5 186.5 186.2 187.2 187.0 185.1 185.6 181.9 180.5 8 U.S. government............................................................. 2.9 3.0 3.5 3.3 4.0 3.5 2.3 2.3 1.9 1.8 1.8 Not seasonally adjusted 9 Monetary base 2............................................................... 108.3 120.3 129.8 135.2 136.2 137.5 140.5 144.6 144.4 141.9 142.3 10 Deposits subject to reserve requirements3................... 510.9 534.8 575.3 599.2 605.9 608.4 615.1 624.0 627.1 614.3 614.3 11 Time and savings............................................................. 337.2 353.6 386.4 412.8 416.6 418.5 425.2 429.6 433.8 434.2 434.9 Demand 12 Private................................................................................ 170.7 177.9 185.1 183.9 184.7 186.9 188.0 191.9 191.5 178.2 177.5 13 U.S. government............................................................. 3 1 3.3 3.8 2.5 4.6 3.0 2.0 2.5 1.9 1.8 1.9 1 Series reflects actual reserve requirement percentages with no adjust 3 Includes total time and savings deposits and net demand deposits as ment to eliminate the effect of changes in Regulations D and M. There defined by Reguation D. Private demand deposits include all demand are breaks in series because of changes in reserve requirements effective deposits except those due to the U.S. government, less cash items in Dec. 12, 1974; Feb. 13, May 22, and Oct. 30, 1975; Jan. 8 and Dec. 30, process of collection and demand balances due from domestic commercial 1976. In addition, effective Jan. 1, 1976, statewide branching in New York banks. was instituted. The subsequent merger of a number of banks raised required reserves because of higher reserve requirements on aggregate Note. Back data and estimates of the impact on required reserves deposits at these banks. and changes in reserve requirements are shown in table 14 of the board’s 2 Includes total reserves (member bank reserve balances in the current Annual Statistical Digest, 1971-1975. week plus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal Reserve Banks and the vaults of commercial banks; and vault cash of nonmember banks. 1.23 LOANS AND INVESTMENTS All Commercial Banks Billions of dollars; last Wednesday of month except for June 30 and Dec. 31 1978 1979 1975 1976 1977 Category Dec. 31 Dec. 31 Dec. 31 Oct. 25^ Nov. 29^ Dec. 31p Jan. 31^ Feb. 28» Mar. 28^ Apr. 25p Seasonally adjusted 1 Loans and investments1........................ 721.8 785.1 870.6 967.3 977.6 5977.7 998.6 1,007.7 1,012.6 1,024.0 2 Including loans sold outright2 .... 726.2 788.9 875.5 971.0 981.3 5981.5 1,002.2 1,011.3 1,016.2 1,027.7 Loans 3 Total1....................................................... 496.9 538.9 617.0 700.9 715.1 5715.4 732.4 738.3 743.4 752.9 4 Including loans sold outright2.... 501.3 542.7 621.9 704.8 718.8 5719.2 736.0 741.9 747.0 756.6 5 Commercial and industrial................. 176.2 3179.7 4201.4 227.6 230.7 6230.9 237.8 240.6 243.5 247.6 6 Including loans sold outright2 .... 178.7 3182.1 4204.2 229.5 232.6 7233.4 240.3 243.1 246.1 250.2 Investments 7 U.S. Treasury......................................... 80.1 98.0 95.6 96.0 91.4 88.8 89.4 92.1 90.5 91.8 8 Other........................................................ 144.8 148.2 158.0 170.4 171.1 5173.5 176.8 177.3 178.7 179.3 Not seasonally adjusted 9 Loans and investments1........................ 737.0 801.6 888.9 964.8 980.4 5998.2 994.6 1,000.0 1,009.5 1,022.7 10 Including loans sold outright2.... 741.4 805.4 893.8 968.7 984.1 51,002.0 998.2 1,003.6 1,013.1 1,026.4 Loans 11 Total1....................................................... 507.4 550.2 629.9 700.7 715.5 5730.4 726.0 730.3 737.5 748.0 12 Including loans sold outright2 .... 511.8 554.0 634.8 704.6 719.2 5734.2 729.6 733.9 741.1 751.7 13 Commercial and industrial................. 179.3 3182.9 4205.0 227.1 230.7 6235.1 235.3 238.6 243.0 248.3 14 Including loans sold outright2 .... 181.8 3185.3 4207.8 229.0 232.6 7237.6 237.8 241.1 245.6 250.9 Investments 15 U.S. Treasury........................................ 84.1 102.5 100.2 94.4 93.7 93.6 92.2 93.3 93.9 94.4 16 Other........................................................ 145.5 148.9 158.8 169.7 171.2 5174.3 176.4 176.5 178.2 180.4 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A16 Domestic Financial Statistics □ May 1979 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1978 1979 June July^ Aug.*5 Sept.** Oct.*5 Nov.*’ Dec.^ Jan.*? Feb.*7 Mar.^ Apr. All commercial * 1 Loans and investments............. 985.0 979.4 986.2 1,002.2 1,010.8 1,029.2 1,051.3 1,041.6 1,048.1 1,059.8 1,074.4 2 Loans, gross............................. 722.1 718.0 724.3 738.0 746.7 764.3 782.6 773.0 778.3 787.7 799.7 3 Interbank.............................. 46.3 43.5 42.9 45.1 46.0 48.8 56.0 47.0 48.1 50.2 51.7 4 Commercial and industrial. 221.6 221.0 222.0 224.5 227.1 230.7 232.8 235.3 238.6 243.0 248.3 5 Other...................................... 454.2 453.5 459.4 468.4 473.6 484.8 493.8 490.7 491.6 494.5 499.7 6 U.S. Treasury securities......... 97.9 96.3 95.2 95.6 94.4 93.7 94.0 92 2 93.3 93.9 94.4 7 Other securities........................ 165.1 165.2 166.7 168.5 169.7 171.2 174.7 176.4 176.5 178.2 180.4 8 Cash assets, total...................................... 166.8 131.8 140.3 146.8 148.5 150.7 174.7 150.5 158.8 148.1 152.0 9 Currency and coin.................................... 12.0 14.9 15.2 15.2 15.1 16.7 17.2 15.3 15.1 15.3 15.7 10 Reserves with Federal Reserve Banks. 29.6 23.6 29.7 32.6 34.6 32.6 37.7 29.6 29.4 29.9 33.7 11 Balances with depositary institutions.. 56.0 46.0 45.9 49.4 47.1 48.0 56.3 50.8 54.1 48.8 50.9 12 Cash items in process of collection---- 69.3 47.3 49.6 49.7 51.7 53.5 63.5 54.7 60.2 54.1 51.7 13 Other assets............................................... 63.2 67.3 68.6 70.5 69.9 74.0 77.9 77.3 76.1 72.9 70.1 14 Total assets/total liabilities and capital. 1,215.0 1,178.6 1,195.1 1,219.5 1,229.2 1,254.0 1,303.9 1,269.5 1,283.0 1,280.8 1,296.5 15 Deposits................ 965.7 931.5 939.8 956.0 957.2 968.1 1,005.8 979.9 988.2 979.4 986.4 16 Demand................ 374.8 339.0 340.5 351.9 348.7 349.0 382.1 350.8 355.7 343.1 353.8 17 Time and savings. 591.0 592.5 599.3 604.1 608.5 619.1 623.7 629.1 632.5 635.2 632.7 18 Savings............. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 216.5 216.6 218.6 217.5 19 Time.................. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 412.7 415.9 417.7 415.2 20 Borrowings................................................ 106.8 102.6 108.5 112.1 117.8 126.9 136.8 122.3 122.1 125.1 133.8 Memo items: 21 U.S. Treasury note balances included in borrowing...................................... 7.5 12.4 11.6 3.7 4.7 5.7 22 Number of banks..................................... 14,698 14,709 14,718 14,723 14,712 14,724 14,712 14,701 14,711 14,716 14,720 Member 699.7 695.8 698.9 706.9 713.4 724.3 739.5 732.5 736.9 741.2 753.1 519.6 517.6 520.3 527.0 533.9 544.6 558.3 549.6 553.2 555.5 565.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 30.3 30.6 30.7 31.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 519.3 522.6 524.8 534.0 67.4 65.7 65.3 65.4 64.1 63.5 63.6 62.3 63.4 64.1 64.7 112.7 112.5 113.3 114.5 115.3 116.2 117.6 120.4 120.2 121.5 123.2 29 Cash assets, total...................................... 133.8 104.2 111.2 115.4 118.6 121.3 140.2 119.1 125.4 115.5 119.0 30 Currency and coin.................................... 8.7 10.8 11.1 11.1 11.1 12.3 12.7 11.2 11.1 11.2 11.5 31 Reserves with Federal Reserve Banks.. 29.6 23.6 29.7 32.6 34.6 32.6 37.7 29.6 29.4 29.9 33.7 32 Balances with depositary institutions.. 29.1 24.3 22.9 24.0 23.2 25.1 28.6 25.8 27.0 22.3 24.1 33 Cash items in process of collection---- 66.5 45.4 47.6 47.7 49.7 51.4 61.2 52.5 57.9 52.1 49.7 55.2 57.3 58.4 60.0 59.3 62.9 65.5 65.5 64.2 61.3 58.1 35 Total assets/total liabilities and capital. 888.7 857.3 868.5 882.2 891.2 908.5 945.2 917.1 926.5 918.0 930.1 694.3 666.1 670.6 679.6 682.5 688.6 716.3 696.6 701.7 687.9 691.8 282.7 255.0 256.1 262.3 262.6 262.3 286.8 263.5 267.6 253.2 262.0 411.5 411.1 414.5 417.2 420.0 426.4 429.5 433.1 434.1 434.5 429.8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 146.5 146.4 147.7 147.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 286.6 287.7 286.8 282.7 92.1 88.0 93.9 97.2 101.4 108.1 115.9 102.3 104.0 107.1 115.3 Memo items : 42 U.S. Treasury note balances included 6.3 11.1 9.3 3.0 3.7 4.5 5,622 5,613 5,610 5,593 5,585 5,586 5,565 5,544 5,532 5,531 5,532 1 Figures partly estimated except on call dates. Member banks: The following numbers of noninsured trust companies Note. Figures include all bank-premises subsidiaries and other signi that are members of the Federal Reserve System are excluded from mem ficant majority-owned domestic subsidiaries. ber banks in tables 1.24 and 1.25 and are included with noninsured banks Commercial banks: All such banks in the United States, including in table 1.25: 1977—December, 12; 1979—March, 13. member and nonmember banks, stock savings banks, nondeposit trust companies, and U.S. branches of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banks A17 1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series Millions of dollars, except for number of banks 1976 1977 1978 1976 1977 1978 Account Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Total insured National (all insured) 1 827,696 854,733 914,779 956,431 476,610 488,240 523,000 542,218 Loans 2 578,734 601,122 657,509 695,443 340,691 351,311 384,722 403,812 3 Net......................................................................... 560,077 581,143 636,318 672,207 329,971 339,955 372,702 390,630 Investments 4 U.S. Treasury securities.................................... 101,461 100,568 99,333 97,001 55,727 53,345 52,244 50,519 5 147,500 153,042 157,936 163,986 80,191 83,583 86,033 87,886 6 Cash assets.................................................................... 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 1,003,970 1,040,945 1,129,712 1,172,772 583,304 599,743 651,360 671,166 8 825,003 847,372 922,657 945,874 469,377 476,381 520,167 526,932 Demand 9 3,022 2,817 7,310 7,956 1,676 1,632 4,172 4,483 10 Interbank.............................................................. 44,064 44,965 49,843 47,203 23,149 22,876 25,646 22,416 11 Other...................................................................... 285,200 284,544 319,873 312,707 163,346 161,358 181,821 176,025 Time and savings 12 8,248 7,721 8,731 8,987 4,907 4,599 5,730 5,791 13 Other...................................................................... 484,467 507,324 536,899 569,020 276,296 285,915 302,795 318,215 14 75,291 81,137 89,339 98,351 54,421 57,283 63,218 68,948 15 72,061 75,502 79,082 83,074 41,319 43,142 44,994 47,019 16 Memo: Number of banks........................................ 14,397 14,425 14,397 14,381 4,735 4,701 4,654 4,616 State member (all insured) Insured nonmember 17 144,000 144,597 152,514 157,464 207,085 221,896 239,265 256,749 Loans 18 102,277 102,117 110,243 115,736 135,766 147,694 162,543 175,894 19 Net.......................................................................... 99,474 99,173 107,205 112,470 130,630 142,015 156,411 169,106 Investments 20 U.S. Treasury securities.................................... 18,849 19,296 18,179 16,886 26,884 27,926 28,909 29,595 21 22,874 23,183 24,091 24,841 44,434 46,275 47,812 51,259 22 32,859 35,918 42,305 43,057 20,631 20,166 24,908 23,606 23 189,579 195,452 210,442 217,384 231,086 245,748 267,910 284,221 24 149,491 152,472 163,436 167,403 206,134 218,519 239,053 251,539 Demand 25 429 371 1,241 1,158 917 813 1,896 2,315 26 Interbank.............................................................. 19,295 20,568 22,346 23,117 1,619 1,520 1,849 1,669 27 Other...................................................................... 52,204 52,570 57,605 55,550 69,648 70,615 80,445 81,131 Time and savings 28 2,384 2,134 2,026 2,275 956 988 973 920 29 75,178 76,827 80,216 85,301 132,993 144,581 153,887 165,502 30 17,310 19,697 21,736 23,167 3,559 4,155 4,384 6,235 31 13,199 13,441 14,182 14,670 17,542 18,919 19,905 21,384 32 Memo: Number of banks......................................... 1,023 1,019 1,014 1,005 8,639 8,705 8,729 8,760 Noninsured nonmember Total nonmember 33 18,819 22,940 24,415 28,699 225,904 244,837 263,681 285,448 Loans 34 16,336 20,865 22,686 26,747 152,103 168,559 185,230 202,641 35 Net.......................................................................... 16,209 20,679 22,484 26,548 146,840 162,694 178,896 195,655 Investments 36 U.S. Treasury securities.................................... 1,054 993 879 869 27,938 28,919 29,788 30,465 37 1,428 1,081 849 1,082 45,863 47,357 48,662 52,341 38 6,496 8,330 9,458 9,360 27,127 28,497 34,367 32,967 39 26,790 33,390 36,433 42,279 257,877 279,139 304,343 326,501 40 13,325 14,658 16,844 19,924 219,460 233,177 255,898 271,463 Demand 41 4 8 10 8 921 822 1,907 2,323 42 1,277 1,504 1,868 2,067 2,896 3,025 3,718 3,736 43 3,236 3,588 4,073 4,814 72,884 74,203 84,518 85,946 Time and savings 44 1,041 1,164 1,089 1,203 1,997 2,152 2,063 2,123 45 7,766 8,392 9,802 11,831 140,760 152,974 163,690 177,334 46 4,842 7,056 6,908 8,413 8,401 11,212 11,293 14,649 47 Total capital accounts................................................ 818 893 917 962 18,360 19,812 20,823 22,346 48 275 293 310 317 8,914 8,998 9,039 9,077 1 Includes items not shown separately. For Note see table 1.24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A18 Domestic Financial Statistics □ May 1979 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1978 Millions of dollars, except for number of banks. IVlember bant:si Insured Non Asset account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 1 Cash bank balances, items in process.............................................. 158,380 134,955 43 .,758 5,298 47,914 37,986 23,482 2 12,135 8,866 '867 180 2,918 4,901 3,268 3 Reserves with Federal Reserve Banks........................................ 28,043 28,041 3,621 1,152 12,200 11,067 3 4 Demand balances with banks in United States....................... 41,104 25,982 12,821 543 3,672 8,945 15,177 5 Other balances with banks in United States............................ 4,648 2,582 601 15 648 1,319 2,066 6 Balances with banks in foreign countries.................................. 3,295 2,832 331 288 1,507 705 463 7 Cash items in process of collection............................................ 69,156 66,652 25,516 3,119 26,969 11,049 2,504 8 Total securities held—Book value..................................................... 262,199 179,877 20,808 7,918 58,271 92,881 82,336 9 U.S. Treasury.................................................................................. 95,068 65,764 9,524 2,690 22,051 31,499 29,315 10 Other U.S. government agencies................................................ 40,078 25,457 1,828 1,284 7,730 14,616 14,622 11 States and political subdivisions.................................................. 121,260 85,125 9,166 3,705 27,423 44,831 36,136 12 All other securities.......................................................................... 5,698 3,465 291 240 1,048 1,887 2,234 n Unclassified total............................................................................ 94 66 19 47 28 14 Trading-account securities............................................................. 6,833 6,681 3,238 708 2,446 290 151 15 U.S. Treasury.............................................................................. 4,125 4,103 2,407 408 1,210 78 23 16 Other U.S. government agencies............................................ 825 816 401 82 278 55 9 17 States and political subdivisions.............................................. 1,395 1,381 363 117 794 107 14 18 All other trading account securities....................................... 394 316 67 101 145 3 78 19 94 66 19 47 28 20 Bank investment portfolios............................................................ 255,366 173,196 17,570 7,210 55,825 92,591 82,185 21 U.S. Treasury............................................................................. 90,943 61,661 7,117 2,282 20,840 31,422 29,293 22 Other U.S. government agencies............................................ 39,253 24,641 1,426 1,201 7,452 14,561 14,613 23 States and political subdivisions.............................................. 119,865 83,745 8,803 3,588 26,629 44,724 36,123 24 All other portfolio securities.................................................... 5,305 3,149 224 138 903 1,884 2,156 25 Federal Reserve stock and corporate stock.................................. 1,656 1,403 311 111 507 475 253 26 Federal funds sold and securities resale agreement....................... 41,258 31,999 3,290 1,784 16,498 10,427 9,365 27 Commercial banks......................................................................... 34,256 25,272 1,987 1,294 12,274 9,717 9,090 28 Brokers and dealers....................................................................... 4,259 4,119 821 396 2,361 541 140 29 Others............................................................................................... 2,743 2,608 482 94 1,863 169 135 30 Other loans, gross............................................................................... 675,915 500,802 79,996 26,172 190,565 204,069 175,113 31 Less: Unearned income on loans............................................... 17,019 11,355 675 107 3,765 6,809 5,664 32 Reserves for loan loss.......................................................... 7,431 5,894 1,347 341 2,256 1,949 1,537 33 Other loans, net.............................................................................. 651,465 483,553 77,974 25,724 184,544 195,311 167,912 Other loans, gross, by category 34 203,386 138,730 10,241 2,938 52,687 72,863 64,656 35 Construction and land development...................................... , 25,621 19,100 2,598 685 9,236 6,581 6,521 36 Secured by farmland.................................................................. 8,418 3,655 23 34 453 3,146 4,763 37 Secured by residential properties............................................ 117,176 81,370 5,362 1,559 31,212 43,236 35,806 38 1- to 4-family residences........................................................ 111,674 77,422 4,617 1,460 29,774 41,570 34,252 39 7,503 6,500 508 44 3,446 2,502 1,003 40 Conventional....................................................................... 104,171 70,922 4,109 1,417 26,328 39,068 33,249 41 Multifamily residences........................................................... 5,502 3,948 746 99 1,438 1,665 1,554 42 FHA-insured........................................................................ 399 340 132 27 88 92 59 43 Conventional....................................................................... 5,103 3,609 613 72 1,350 1,573 1,495 44 Secured by other properties..................................................... 52,171 34,605 2,258 660 11,786 19,901 17,566 45 Loans to financial institutions....................................................... 37,072 34,843 12,434 4,342 15,137 2,930 2,228 46 REITs and mortgage companies............................................ 8,574 8,162 2,066 801 4,616 680 412 47 Domestic commercial banks.................................................... 3,362 2,618 966 165 1,206 281 744 48 Banks in foreign countries....................................................... 7,359 7,187 3,464 268 2,820 635 171 49 Other depositary institutions................................................... 1,579 1,411 290 76 785 261 167 50 Other financial institutions....................................................... 16,198 15,465 5,649 3,033 5,710 1,073 733 51 Loans to security brokers and dealers....................................... 11,042 10,834 6,465 1,324 2,846 199 207 52 Other loans to purchase or carry securities.............................. 4,280 3,532 410 276 1,860 985 747 53 Loans to farmers—except real estate........................................ 28,054 15,296 168 150 3,781 11,196 12,758 54 Commercial and industrial loans................................................ 213,123 171,815 39,633 13,290 67,833 51,059 41,309 55 Loans to individuals....................................................................... 161,599 110,974 7,100 2,562 40,320 60,993 50,624 56 131,571 90,568 5,405 1,711 33,640 49,811 41,003 57 Passenger automobiles........................................................... 58,908 37,494 1,077 209 11,626 24,582 21,414 58 Residential repair and modernization................................ 8,526 5,543 331 60 2,088 3,064 2,983 59 Credit cards and related plans............................................ 21,938 19,333 2,268 1,267 9,736 6,062 2,605 60 Charge-account credit cards............................................ 17,900 16,037 1,573 1,219 8,192 5,053 1,863 61 Check and revolving credit plans................................... 4,038 3,296 695 47 1,545 1,009 742 62 Other retail consumer goods................................................ 19,689 13,296 427 57 5,242 7,570 6,393 63 Mobile homes..................................................................... 9,642 6,667 179 19 2,563 3,905 2,976 64 Other..................................................................................... 10,047 6,629 249 38 2,678 3,664 3,417 65 Other installment loans......................................................... 22,510 14,902 1,302 119 4,948 8,533 7,608 66 Single-payment loans to individuals....................................... 30,027 20,406 1,694 851 6,680 11,182 9,621 67 All other loans................................................................................ 17,360 14,778 3,545 1,290 6,100 3,844 2,582 68 Total loans and securities, net........................................................... 956,579 696,833 102,383 35,536 259,820 299,094 259,867 69 Direct lease financing......................................................................... 6,717 6,212 1,145 96 3,931 1,041 505 70 Fixed assets—Buildings, furniture, real estate............................. 22,448 16,529 2,332 795 6,268 7,133 5,926 71 Investment in unconsolidated subsidiaries.................................... 3,255 3,209 1,642 188 1,282 96 46 72 Customer acceptances outstanding................................................. 16,557 16,036 8,315 1,258 6,054 409 521 73 Other assets.......................................................................................... 34,559 30,408 11,323 1,000 12,810 5,275 4,249 74 Total assets........................................................................................... 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banks A19 1.26 Continued Member banks1 Insured Non- Liability or capital account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 75 Demand deposits................................................................................ 369,030 282,450 66,035 10,690 100,737 104,988 86,591 76 Mutual savings banks.................................................................. 1,282 1,089 527 1 256 305 194 77 Other individuals, partnerships, and corporations............... 279,651 205,591 31,422 7,864 79,429 86,876 74,061 78 U.S. government........................................................................... 7,942 5,720 569 188 1,987 2,977 2,222 79 States and political subdivisions................................................ 17,122 11,577 764 252 3,446 7,116 5,545 80 Foreign governments, central banks, etc................................. 1,805 1,728 1,436 19 211 62 77 81 Commercial banks in United States........................................ 39,596 38,213 21,414 1,807 10,803 4,189 1,393 82 Banks in foreign countries.......................................................... 7,379 7,217 5,461 207 1,251 298 162 83 Certified and officers’ checks, etc.............................................. 14,253 11,315 4,443 352 3,354 3,166 2,937 368,562 266,496 38,086 15,954 98,525 113,931 102,066 85 79 66 1 65 13 86 Mutual savings banks.................................................................. 399 392 177 40 148 27 7 87 Other individuals, partnerships, and corporations............... 292,120 210,439 29,209 12,074 76,333 92,824 81,680 88 U.S. government.......................................................................... 864 689 61 40 356 232 175 89 States and political subdivisions................................................ 59,087 40,010 1,952 1,554 16,483 20,020 19,077 90 Foreign governments, central banks, etc................................. 6,672 6,450 3,780 1,145 1,401 124 222 91 7,961 7,289 2,077 999 3,585 629 672 92 Banks in foreign countries......................................................... 1,381 1,161 829 103 219 9 220 93 Savings deposits................................................................................. 223,326 152,249 10,632 2,604 54,825 84,188 71,077 94 Individuals and nonprofit organizations.................................. 207,701 141,803 9,878 2,448 51,161 78,316 65,897 95 Corporations and other profit organizations.......................... 11,216 7,672 519 148 3,195 3,809 3,544 96 U.S. government........................................................................... 82 65 2 3 24 35 17 97 States and political subdivisions................................................ 4,298 2,682 215 4 437 2,025 1,616 98 30 27 18 * 8 2 3 99 Total deposits.................................................................................... 960,918 701,195 114,753 29,248 254,087 303,107 259,733 100 Federal funds purchased and securities sold under agreements to repurchase............................................................................. 91,981 85,582 21,149 8,777 41,799 13,857 6,398 101 42,174 39,607 6,991 5,235 21,609 5,773 2,566 102 Brokers and dealers..................................................................... 12,787 11,849 2,130 1,616 6,381 1,722 939 103 37,020 34,126 12,028 1,926 13,809 6,362 2,894 104 Other liabilities for borrowed money........................................... 8,738 8,352 3,631 306 3,191 1,225 386 105 Mortgage indebtedness.................................................................... 1,767 1,455 234 27 701 491 316 106 Bank acceptances outstanding....................................................... 16,661 16,140 8,398 1,260 6,070 412 521 107 Other liabilities.................................................................................. 27,124 23,883 8,860 1,525 9,020 4,477 3,494 108 Total liabilities.................................................................................... 1,107,188 836,607 157,026 41,144 314,868 323,569 270,849 109 Subordinated notes and debentures.............................................. 5,767 4,401 1,001 79 2,033 1,287 1,366 110 Equity capital..................................................................................... 85,540 63,174 12,871 2,947 21,177 26,178 22,380 Ill Preferred stock.............................................................................. 88 36 5 31 52 112 Common stock.............................................................................. 17,875 12,816 2,645 570 4,007 5,594 5,064 113 Surplus............................................................................................ 32,341 23,127 4,541 1,404 8,148 9,034 9,217 114 Undivided profits.......................................................................... 33,517 26,013 5,554 921 8,680 10,858 7,509 115 Other capital reserves................................................................... 1,719 1,182 132 52 337 661 538 116 Total liabilities and equity capital................................................. 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 Memo items: 117 Demand deposits adjusted2............................................................ 252,337 171,864 18,537 5,576 60,978 86,774 80,472 Average for last 15 or 30 days: 118 Cash and due from bank............................................................. 146,283 124,916 36,862 6,030 45,731 36,293 21,379 119 Federal funds sold and securities purchased under agree ments to resell....................................................................... 43,873 33,682 4,272 1,887 16,007 11,517 10,307 120 Total loans...................................................................................... 651,874 483,316 76,750 25,722 184,790 196,054 168,558 121 Time deposits of $100,000 or more.......................................... 183,614 150,160 32,196 13,216 65,776 38,972 33,454 122 944,593 687,543 107,028 28,922 250,804 300,789 257,062 123 Federal funds purchased and securities sold under agree ments to repurchase............................................................. 92,685 86,635 22,896 9,473 40,541 13,725 6,053 124 Other liabilities for borrowed money...................................... 8,716 8,326 3,679 370 3,211 1,067 390 125 Standby letters of credit outstanding............................................ 18,820 17,658 10,063 1,477 4,820 1,297 1,162 126 Time deposits of $100,000 or more............................................... 186,837 152,553 32,654 13,486 66,684 39,728 34,284 127 Certificates of deposit.................................................................. 160,227 129,667 27,950 11,590 56,383 33,743 30,560 128 Other time deposits...................................................................... 26,610 22,886 4,704 1,896 10,301 5,985 3,724 129 Number of banks.............................................................................. 14,390 5,593 12 9 153 5,419 8,810 1 Member banks exclude and nonmember banks include 13 noninsured Note. Data include consolidated reports, including figures for all trust companies that are members of the Federal Reserve System. bank-premises subsidiaries and other significant majority-owned do 2 Demand deposits adjusted are demand deposits other than domestic mestic subsidiaries. Securities are reported on a gross basis before deduc commercial interbank and U.S. government, less cash items reported tions of valuation reserves. Back data in lesser detail were shown in as in process of collection. previous issues of the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 Domestic Financial Statistics □ May 1979 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of £750 Million or More on December 31, 1977, Assets and Liabilities A Millions of dollars, Wednesday figures 1979 Account Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4p Apr. \ \p Apr. 18p Apr. 25p 1 Cash items in process of collection....................... 49,082 42,944 44,596 40,658 44,700 47,148 46,235 47,102 41,974 2 Demand deposits due from banks in the United 15,544 12,285 12,534 13,823 12,475 13,764 13,634 13,126 13,602 3 All other cash and due from depositary institutions.......................................................... 28,921 24,686 35,290 24,739 28,920 24,409 29,193 30,363 32,555 4 Total loans and securities......................................... 455,176 460,266 455,966 461,963 457,323 470,234 465,754 471,328 465,670 Securities 5 U.S. Treasury securities........................................... 36,132 38,380 37,132 37,283 36,939 40,378 40,148 39,958 37,472 6 Trading account..................................................... 4,410 5,328 4,302 4,438 4,130 7,333 6,446 6,339 5,458 7 Investment account, by maturity....................... 31,722 33,052 32,830 32,845 32,809 33,045 33,702 33,619 32,014 8 One year or less................................................ 8,588 9,679 9,651 9,718 9,717 10,760 11,261 11,097 9,788 9 Over one through five years............................ 18,682 19,002 18,890 18,854 18,826 18,025 18,212 18,258 17,936 10 Over five years................................................... 4,451 4,371 4,288 4,272 4,267 4,260 4,229 4,264 4,290 11 64,617 64,661 65,488 65,121 65,343 64,701 65,371 67,280 66,962 12 2,596 2,594 3,133 2,760 2,863 2,891 3,263 3,770 3,194 13 Investment account.............................................. 62,021 62,067 62,355 62,361 62,480 61,810 62,108 63,510 63,767 14 12,287 12,189 12,436 12,467 12,430 11,957 12,029 12,150 12,349 15 States and political subdivision, by maturity. 46,982 47,109 47,153 47,134 47,284 47,066 47,319 48,616 48,672 16 One year or less............................................ 7,269 7,578 7,577 7,579 7,625 7,235 7,214 8,371 8,356 17 Over one year................................................. 39,713 39,531 39,576 39,555 39,659 39,831 40,105 40,246 40,316 18 Other bonds, corporate stocks and 2,752 2,769 2,765 2,759 2,766 2,786 2,760 2,744 2,746 Loans 19 25,821 28,821 25,736 30,715 25,549 30,690 25,820 27,935 25,656 20 To commercial banks................................... 17,992 17,649 18,195 20,633 17,800 19,159 17,016 18,104 17,320 21 To nonbank brokers and dealers in securities. 5,184 7,528 5,093 6,997 5,425 8,393 6,304 6,816 5,693 22 2,645 3,644 2,449 3,085 2,324 3,138 2,500 3,015 2,642 338,804 338,676 337,923 339,219 339,905 344,844 344,883 346,682 346,171 24 Commercial and industrial.................................. 134,097 133,975 134,074 135,071 135,905 137,321 137,706 138,843 138,822 25 Bankers’ acceptances and commercial paper............................................................ 3,678 3,425 3,308 3,159 3,405 3,368 3,135 3,376 2,997 26 All other.............................................................. 130,419 130,550 130,766 131,912 132,500 133,953 134,570 135,467 135,825 27 124,194 124,362 124,632 125,710 126,305 127,704 128,328 129,306 129,653 28 Non-U.S. addressees..................................... 6,225 6,188 6,134 6,202 6,195 6,248 6,243 6,161 6,172 29 82,372 82,582 82,915 83,082 83,289 83,415 83,844 84,151 84,334 30 To individuals for personal expenditures......... 60,843 60,885 61,007 61,185 61,440 61,745 61,906 62,357 62,807 To financial institutions 31 2,851 2,633 2,886 2,709 2,744 2,937 2,913 2,908 2,679 32 Banks in foreign countries.............................. 8,073 7,723 8,019 7,670 7,040 7,383 7,601 6,826 6,778 33 Sales finance, personal finance companies, etc................................................................. 7,934 8,184 8,047 8,057 8,084 8,372 8,712 8,381 8,322 34 Other financial institutions.............................. 14,952 15,042 14,782 14,676 14,611 14,881 14,799 14,827 14,778 35 To nonbank brokers and dealers in securities. 7,924 8,266 6,982 7,603 7,405 8,935 8,039 8,600 8,443 36 To others for purchasing and carrying securities2....................................................... 2,364 2,380 2,388 2,318 2,326 2,306 2,313 2,308 2,326 37 To finance agricultural production................... 4,424 4,464 4,507 4,544 4,578 4,600 4,620 4,665 4,667 38 12,971 12,541 12,315 12,303 12,481 12,948 12,431 12,816 12,215 5,647 5,684 5,739 5,791 5,834 5,809 5,889 5,941 5,983 40 4,551 4,588 4,574 4,584 4,578 4,569 4,579 4,586 4,607 41 328,606 328,403 327,610 328,844 329,492 334,465 334,415 336,155 335,580 42 Lease financing receivables...................................... 5,554 5,572 5,630 5,654 5,681 5,722 5,720 5,741 5,761 43 63,546 62,338 63,075 62,382 60,801 59,697 60,242 58,417 58,272 617,823 608,090 617,092 609,219 609,900 620,974 620,778 626,078 617,835 Deposits 45 Demand deposits..................................................... 180,205 167,876 172,469 168,171 169,110 182,147 181,070 181,112 173,984 46 Mutual savings banks......................................... 698 766 692 651 611 892 837 770 715 47 Individuals, partnerships, and corporations.. 125,848 120,399 124,087 119,885 120,176 126,623 127,663 129,958 124,462 48 States and political subdivisions....................... 5,228 4,303 4,384 4,736 4,355 4,330 4,686 4,628 4,764 49 858 775 886 918 763 3,227 1,656 2,631 1,965 50 Commercial banks in United States................. 31,659 26,375 28,332 27,662 26,546 30,633 30,159 27,633 26,800 51 Banks in foreign countries................................. 6,565 6,796 6,498 6,742 6,549 6,600 6,452 6,509 6,734 52 Foreign governments and official institutions. 1,496 1,168 1,138 1,131 1,182 1,413 1,236 1,245 1,250 53 Certified and officers’ checks.............................. 7,852 7,293 6,452 6,444 8,927 8,428 8,380 7,739 7,294 54 Time and savings deposits...................................... 257,725 257,676 257,564 256,893 256,756 256,047 254,426 251,881 251,506 55 Savings.................................................................... 76,032 76,413 76,254 76,565 76,831 77,784 77,674 77,115 76,680 56 Individuals and nonprofit organizations.... 70,998 71,331 71,198 71,498 71,745 72,682 72,611 72,084 71,659 57 Partnerships and corporations operated for 4,167 4,202 4,178 4,176 4,231 4,215 4,202 4,118 4,142 58 Domestic governmental units......................... 845 856 859 859 833 865 834 891 863 59 23 25 20 32 23 22 27 22 17 60 181,693 181,263 181,309 180,328 179,925 178,263 176 752 174,766 174,825 61 Individuals, partnerships, and corporations.. 142,704 142,458 142,494 141,580 141,430 140,501 139,639 138,269 138,416 62 States and political subdivisions....................... 24,302 24,070 24,116 24,062 23,887 23,475 23,245 23,066 23,178 63 U.S. government................................................... 487 492 510 488 476 474 480 478 496 64 Commercial banks in United States................ 7,394 7,438 7,379 7,389 7,270 7,006 6,736 6,534 6,408 65 Foreign governments, official institutions, 6,806 6,805 6,810 6,808 6,862 6,806 6,652 6,418 6,327 77,056 81,379 86,598 79,081 81,065 82,423 86,344 87,770 87,648 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks.. 816 1,490 731 1,104 838 220 87 2,597 940 68 Treasury tax-and-loan notes........................... 1,954 1,253 314 5,016 2,224 492 214 4,214 3,208 69 All other liabilities for borrowed money. .. 11,571 9,639 10,996 9,848 9,664 10,051 10,165 9,793 10,189 70 Other liabilities and subordinated note and 46,502 46,869 46,378 47,279 48,241 47,390 46,162 46,495 48,147 71 575,828 566,183 575,050 567,392 567,900 578,770 578,468 583,863 575,623 72 Residual (total assets minus total liabilities)4. 41,995 41,908 42,042 41,827 42,000 42,204 42,311 42,215 42,212 1 Includes securities purchased under agreements to resell. 4 This is not a measure of equity capital for use in capital adequacy analysis or 2 Other than financial institutions and brokers and dealers. for other analytic uses. Digitized for FRASER3 I ncludes securities sold under agreements to repurchase. A See “Announcements,” p. 408, for information on availability of revised back data. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Weekly Reporting Banks A21 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on December 31, 1977 Assets and Liabilities A Millions of dollars, Wednesday figures 1979 Account Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4* Apr. 11* Apr. 18* Apr. 25* 1 Cash items in process of collection....................... 46,746 40,846 42,498 38,606 42,734 44,831 44,110 44,699 39,607 2 Demand deposits due from banks in the United States................................................................... 14,779 11,669 11,917 13,154 11,821 12,927 12,894 12,526 12,929 3 All other cash and due from depositary institutions.......................................................... 27,024 23,211 33,417 23,235 27,158 23,002 27,513 28,797 30,673 4 Total loans and securities......................................... 425,920 430,578 426,347 431,982 427,846 440,205 435,700 440,857 435,780 Securities 5 U.S. Treasury securities........................................... 33,725 35,943 34,708 34,834 34,488 37,901 37,615 37,389 34,995 6 Trading account..................................................... 4,355 5,266 4,264 4,388 4,076 7,271 6,376 6,249 5,425 7 Investment account, by maturity....................... 29,370 30,677 30,443 30,446 30,411 30,629 31,239 31,140 29,570 8 One year or less................................................ 7,975 9,049 9,013 9,092 9,099 10,106 10,603 10,440 9,154 9 Over one through five years........................... 17,275 17,588 17,463 17,402 17,368 16,574 16,718 16,750 16,444 10 Over five years................................................... 4,119 4,040 3,968 3,952 3,944 3,949 3,918 3,950 3,973 11 Other securities.......................................................... 59,693 59,757 60,553 60,190 60,393 59,838 60,510 62,314 61,962 12 Trading account..................................................... 2,547 2,547 3,076 2,702 2,808 2,807 3,193 3,703 3,130 13 Investment account.............................................. 57,145 57,210 57,477 57,488 57,585 57,032 57,317 58,611 58,832 14 U.S. government agencies......................... 11,434 11,348 11,589 11,613 11,576 11,128 11,190 11,300 11,487 15 States and political subdivision, by maturity. 43,188 43,321 43,352 43,333 43,460 43,335 43,587 44,784 44,820 16 One year or less............................................ 6,683 6,902 6,890 6,884 6,926 6,650 6,629 7,702 7,674 17 Over one year................................................. 36,505 36,419 36,462 36,449 36,535 36,685 36,958 37,083 37,146 18 Other bonds, corporate stocks and securities..................................................... 2,523 2,540 2,536 2,541 2,548 2,568 2,540 2,527 2,524 Loans 19 Federal funds sold1.................................................. 24,058 26,634 23,664 28,421 23,750 28,346 23,541 25,544 23,808 20 To commercial banks...................................*.••• 16,468 15,716 16,371 18,656 16,228 17,103 15,072 15,954 15,738 21 To nonbank brokers and dealers in securities. 4,977 7,297 4,867 6,783 5,229 8,126 5,989 6,602 5,449 22 To others................................................................. 2,613 3,621 2,426 2,982 2,294 3,118 2,479 2,988 2,622 23 Other loans, gross..................................................... 317,888 317,757 316,969 318,144 318,856 323,728 323,726 325,353 324,819 24 Commercial and industrial........................... 127,175 127,076 127,137 128,028 128,876 130,301 130,618 131,660 131,631 25 Bankers’ acceptances and commercial paper............................................................ 3,609 3,360 3,246 3,088 3,340 3,312 3,080 3,317 2,941 26 All other.............................................................. 123,566 123,716 123,891 124,940 125,536 126,989 127,537 128,342 128,690 27 U.S. addresses................................................ 117,390 117.578 117,810 118,792 119,394 120,795 121,348 122,235 122,571 28 Non-U.S. addressees..................................... 6,175 6,138 6,081 6,148 6,142 6,194 6,189 6,107 6,119 29 Real estate............................................................... 77,175 77,384 77,700 77,858 78,048 78,184 78,608 78,887 79,075 30 To individuals for personal expenditures......... 54,179 54,210 54,309 54,465 54,716 54,964 55,105 55,510 55,937 To financial institutions 31 Commercial banks in the U.S........................ 2,749 2,544 2,796 2,625 2,657 2,854 2,833 2,824 2,602 32 Banks in foreign countries..................... 7,989 7,650 7,935 7,597 6,972 7,323 7,530 6,766 6,728 33 Sales finance, personal finance companies, 7,782 8,031 7,903 7,902 7,918 8,197 8,520 8,187 8,127 34 Other financial institutions..................... 14,445 14,528 14,284 14,212 14,167 14,428 14,358 14,389 14,332 35 To nonbank brokers and dealers in securities. 7,836 8,172 6,897 7,513 7,310 8,842 7,959 8,514 8,358 36 To others for purchasing and carrying securities2...................................................... 2,069 2,090 2,107 2,045 2,045 2,064 2,076 2,075 2,093 37 To finance agricultural production................... 4.281 4,321 4,362 4,396 4,430 4,449 4,470 4,516 4,514 38 All other.................................................................. 12,209 11,751 11,541 11,502 11,718 12,120 11,649 12,026 11,422 39 Less: Unearned income............................................ 5,162 5,196 5,245 5,293 5,334 5,310 5,384 5,430 5,469 40 Loan loss reserve............................................ 4.281 4,317 4,302 4,313 4,307 4,298 4,307 4,314 4,336 41 Other loans, net......................................................... 308,444 308,245 307,422 308,537 309,215 314,120 314,034 315,610 315,015 42 Lease financing receivables...................................... 5,396 5,411 5,469 5,493 5,519 5,559 5,557 5,578 5,597 43 All other assets........................................................... 62,011 60,864 61,607 60,919 59,309 58,213 58,730 56,928 56,769 44 Total assets................................................................. 581,877 572.579 581,256 573,391 574,385 584,738 584,504 589,384 581,355 Deposits 45 Demand deposits....................................................... 169,524 157,567 161,946 157,911 159,015 171,164 170,228 169,821 163,002 46 Mutual savings banks.......................................... 665 712 666 628 584 854 811 748 692 47 Individuals, partnerships, and corporations.. 117,655 112,470 115,773 112,038 112,297 118,270 119,193 121,140 115,993 48 States and political subdivisions....................... 4,594 3,784 3,812 3,969 3,688 3,782 4,146 4,076 4,126 49 U.S. government................................................... 748 592 808 819 688 2,983 1,513 2,324 1,655 50 Commercial banks in United States................. 30,281 25,072 27,101 26,425 25,389 29,190 28,826 26,383 25,584 51 Banks in foreign countries................................. 6,489 6,738 6,434 6,687 6,491 6,543 6,386 6,444 6,678 52 Foreign governments and official institutions. 1,494 1.154 1,134 1,130 1,180 1,411 1,233 1,243 1,232 53 Certified and officers’ checks.............................. 7,599 7,045 6,216 6,215 8,698 8,131 8,120 7,462 7,043 54 Time and savings deposits...................................... 240,754 240,672 240,477 239,790 239,714 239,027 237,376 234,934 234,566 55 Savings............................................................... 70,479 70,818 70.652 70,942 71,226 72,134 72,026 71,508 71,102 56 Individuals and nonprofit organizations___ 65,831 66,147 66,022 66,293 66,548 67,422 67,369 66,864 66,467 57 Partnerships and corporations operated for profit............................................................ 3,855 3,886 3,865 3,868 3,920 3,905 3,891 3,816 3,835 58 Domestic governmental units......................... 771 760 746 750 736 786 740 806 784 59 All other.............................................................. 22 24 19 31 22 20 26 21 16 60 Time.......................................................................... 170,275 169,854 169,825 168,848 168,489 166,894 165,350 163,426 163,464 61 Individuals, partnerships, and corporations.. 133,766 133,511 133,494 132,575 132,436 131,589 130,693 129,355 129,476 62 States and political subdivisions....................... 22,135 21,917 21,940 21,880 21,738 21,307 21,071 20,921 21,037 63 U.S. government................................................... 482 487 505 483 470 468 475 472 491 64 Commercial banks in United States................. 7,103 7,151 7,092 7,116 6,997 6,736 6,474 6,272 6,147 65 Foreign governments, official institutions, and banks....................................................... 6,790 6,788 6,794 6,794 6,847 6,793 6,638 6,405 6,313 66 Federal funds purchased 3........................................ 73,042 77,354 82,574 75,106 76,971 78,300 82,103 83,703 83,428 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks.. 703 1,478 675 1,066 767 195 87 2,589 934 68 Treasury tax-and-loan notes........................... 1,816 1.154 273 4,667 2,066 463 189 3,969 2,925 69 All other liabilities for borrowed money. .. 11,276 9,272 10.653 9,497 9,346 9,712 9,826 9,340 9,828 70 Other liabilities and subordinated note and debentures....................................................... 45,346 45,774 45,226 46,123 47,129 46,286 45,020 45,442 47,079 71 Total liabilities....................................................... 542,460 533,271 541,824 534,161 535,009 545,148 544,829 549,797 541,763 72 Residual (total assets minus total liabilities)4. 39,416 39,308 39,432 39,230 39,376 39,590 39,675 39,587 39,592 1 Includes securities purchased under agreements to resell. 4 This is not a measure of equity capital for use in capital adequacy analysis or 2 Other than financial institutions and brokers and dealers. for other analytic uses. Digitized for F3R IAncSluEdRes securities sold under agreements to repurchase. A See “Announcements,” p. 408, for information on availability of revised back data. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
All Domestic Financial Statistics □ May 1979 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities A Millions of dollars, Wednesday figures 1979 Account Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. A? Apr. 11^ Apr. 18^ Apr. 25 p 1 Cash items in process of collection....................... 18,084 15,648 15,851 13,768 18,038 17,040 17,205 15,841 14,443 2 Demand deposits due from banks in the United States .................................................................... 9,662 7,609 7,737 9,008 7,824 8,342 8,575 7,909 8,652 3 All other cash and due from depositary institutions.......................................................... 5,999 5,921 8,164 5,618 6,503 4,716 7,046 6,450 5,405 4 Total loans and securities1....................................... 97,452 98,095 97,209 100,060 97,294 100,950 98,916 100,291 99,152 Securities 5 6 7 Investment account, by maturity....................... 6,604 7,233 6,956 7,003 7,004 7,077 7,157 7,035 6,611 8 One year or less................................................. 932 1,121 1,059 1,135 1,117 1,584 1,563 1,401 1,189 9 Over one through five years............................ 4,659 5,149 4,969 4,939 4,970 4,556 4,660 4 ,'682 4,463 10 Over five years................................................... 1,013 963 928 928 917 937 934 952 958 11 12 13 Investment account............................................... 11,012 11,145 11,031 11,021 11,066 10,895 10,891 11,335 11,272 14 U.S. government agencies............................... 1,413 1,513 1,453 1,396 1,390 1,343 1,353 1,388 1,372 15 States and political subdivision, by maturity. 9,037 9,078 9,030 9,079 9,126 9,001 8,995 9,421 9,373 16 One year or less............................................ 1,464 1,492 1,470 1,528 1,558 1,461 1,432 1,879 1,820 17 Over one year................................................ 7,573 7,587 7,561 7,551 7,568 7,540 7,562 7,542 7,552 18 Other bonds, corporate stocks and securities 561 553 548 546 549 551 543 526 527 Loans 6,483 6,348 6,458 9,367 6,618 7,549 5,626 6,881 6,518 20 To commercial banks.......................................... 3,922 2,476 3,790 6,420 3,976 3,783 2,965 4,169 3,252 21 To nonbank brokers and dealers in securities. 1,689 2,763 1,818 2,245 1,995 3,044 1,987 2,140 2,192 22 To others................................................................. 872 1,109 850 701 647 721 674 572 1,074 23 Other loans, gross..................................................... 75,423 75,459 74,854 74,763 74,713 77,525 77,348 77,152 76,878 24 Commercial and industrial................................. 38,287 38,340 38,273 38,279 38,460 39,267 39,285 39,476 39,505 25 Bankers’ acceptances and commercial paper........................................................... 950 925 908 822 900 1,109 960 970 883 26 All other............................................................. 37,337 37,415 37,364 37,457 37,560 38,158 38,326 38,506 38,622 27 U.S. addressees............................................. 35,076 35,168 35,128 35,224 35,331 35,909 36,070 36,279 36,396 28 Non-U.S. addressees.................................... 2,261 2,247 2,237 2,233 2,229 2,249 2,256 2,227 2,225 29 Real estate.............................................................. 10,377 10,404 10,464 10,477 10,504 10,508 10,545 10,576 10,591 30 To individuals for personal expenditures.... 7,264 7,290 7,305 7,319 7,344 7,372 7,394 7,433 7,481 To financial institutions 31 Commercial banks in the U.S........................ 953 965 1,219 964 974 974 1,002 956 885 32 Banks in foreign countries.............................. 3,548 3,421 3,732 3,517 3,147 3,641 3,909 3,213 3,268 33 Sales finance, personal finance companies, etc.................................................................. 3,064 3,230 3,160 3,117 3,081 3,238 3,416 3,232 3,067 34 Other financial institutions.............................. 4,373 4,315 4,096 4,119 4,130 4,232 4,143 4,181 4,167 35 To nonbank brokers and dealers in securities. 4,221 4,354 3,477 3,888 3,915 4,983 4,505 4,838 4,844 36 To others for purchasing and carrying 432 430 421 353 355 353 354 357 356 37 To finance agricultural production................... 206 209 223 236 227 236 230 244 242 38 2,695 2,500 2,485 2,492 2,575 2,722 2,564 2,646 2,472 39 Less: Unearned income............................................ 660 667 674 679 689 684 691 696 705 40 1,410 1,423 1,417 1,414 1,417 1,412 1,415 1,415 1,422 41 73,354 73,369 72,764 72,669 72,607 75,429 75,241 75,040 74,751 499 500 529 529 531 530 536 537 533 43 32,157 32,012 33,071 32,482 31,261 32,742 32,263 31,257 31,895 163,854 159,784 162,561 161,465 161,451 164,320 164,541 162,286 160,080 Deposits 58,556 51,369 53,254 53,823 53,955 56,728 57,037 53,396 52,646 46 Mutual savings banks.......................................... 381 399 392 352 313 509 497 409 392 47 Individuals, partnerships, and corporations... 29,600 26,755 27,885 28,302 27,799 28,602 28,632 28,090 27,187 48 States and political subdivisions........................ 412 365 384 508 382 385 422 441 376 49 102 92 134 113 102 794 401 599 491 50 Commercial banks in United States................. 18,552 14,188 16,295 15,782 14,490 16,496 17,116 14,450 14,791 51 Banks in foreign countries................................. 4,662 5,035 4,653 5,056 4,872 4,866 4,677 4,906 5,037 52 Foreign governments and official institutions. 1,255 870 832 890 933 1,205 982 1,014 1,021 53 Certified and officers’ checks.............................. 3,593 3,664 2,679 2,820 5,064 3,871 4,309 3,485 3,351 54 Time and savings deposits........................................ 49,881 49,672 49,677 49,306 48,447 47,830 47,054 46,200 45,563 55 9,548 9,617 9,617 9,686 9,767 9,952 9,963 9,988 9,964 56 Individuals and nonprofit organizations.... 8,913 8,983 8,993 9,042 9,129 9,308 9,334 9,328 9,309 57 Partnerships and corporations operated for 440 440 435 446 448 447 443 443 444 58 Domestic governmental units......................... 184 178 178 174 178 185 169 204 203 59 All other............................................................. 12 16 10 23 12 12 17 14 7 60 Time......................................................................... 40,333 40,055 40,061 39,621 38,680 37,878 37,091 36,212 35,599 61 Individuals, partnerships, and corporations. 31,071 30,813 30,861 30,460 29,738 29,179 28,703 28,164 27,728 62 States and political subdivisions.................... 1,877 1,868 1,844 1,852 1,765 1,670 1,640 1,633 1,638 63 U.S. government............................................... 23 28 40 43 43 48 52 48 46 64 Commercial banks in U.S............................... 3,274 3,274 3,194 3,179 3,060 2,876 2,729 2,584 2,456 65 Foreign governments, official institutions, and banks................................................... 4,087 4,072 4,121 4,087 4,074 4,105 3,967 3,783 3,731 66 Federal funds purchased6........................................ 19,291 22,385 24,328 21,342 22,398 23,610 24,615 24,780 25,205 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks........ 490 155 279 386 1,225 75 68 Treasury tax-and-loan notes.............................. 411 210 2 1,264 498 2 991 486 69 All other liabilities for borrowed money......... 4,049 3,990 3,985 3,869 3,766 4,063 4,309 4,226 4,388 70 Other liabilities and subordinated note and debentures........................................................... 18,777 18,890 18,217 18,776 19,248 19,250 18,653 18,655 18,936 71 150,966 147,006 149,619 148,660 148,698 151,482 151,670 149,472 147,300 72 Residual (total assets minus total liabilities)7.. 12,889 12,779 12,943 12,806 12,752 12,839 12,871 12,814 12,780 1 Excludes trading account securities. 5 Includes trading account securities. 2 Not available due to confidentiality. 6 Includes securities sold under agreements to repurchase. 3 Includes securities purchased under agreements to resell. 7 This is not a measure of equity capital for use in capital adequacy analysis or 4 Other than financial institutions and brokers and dealers. for other analytic uses. ▲ See “Announcements,” p. 408, for information on availability of revised back data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Weekly Reporting Banks A23 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1979 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4* Apr. 11* Apr. 18* Apr. 25* Large weekly reporting banks with assets of $750million ormore 1 Total loans (gross) and investments adjusted1... 444,532 450,256 445,198 448,996 447,191 458,516 456,293 460,843 456,261 2 Total loans (gross) adjusted1.................................. 343 782 347,215 342,578 346,592 344,909 353,438 350,774 353,605 351,827 3 Demand deposits adjusted2.................................... 98,606 97,782 98,654 98,932 97,101 101,139 103,020 103,746 103,244 4 Time deposits in accounts of $100,000 or more. 130,790 130,190 129,947 128,710 128,274 126,393 124,608 122,207 121,796 5 Negotiable CDs..................................................... ■ 94,714 94,244 93,767 92,697 92,361 90,979 89,576 87,503 86,870 6 Other time deposits.............................................. 36,076 35,946 36,180 36,013 35,913 35,413 35,032 34,704 34,926 7 Loans sold outright to affiliates3.......................... 3,540 3,491 3,474 3,504 3,631 3,587 3,632 3,594 3,648 8 Commercial and industrial.................................. 2,489 2,496 2,467 2,498 2,594 2,550 2,618 2,586 2,638 9 Other........................................................................ 1,050 995 1,007 1,006 1,037 1,036 1,014 1,008 1,010 Large weekly reporting banks with assets of $1billion or more 10 Total loans (gross) and investments adjusted1... 416,147 421,831 416,727 420,308 418,603 429,857 427,486 431,822 427,245 11 Total loans (gross) adjusted1.................................. 322,729 326.132 321,466 325,284 323,722 332,117 329,361 332,120 330,288 12 Demand deposits adjusted2.................................... 91,749 91,056 91,538 92,061 90,205 94,160 95,779 96,414 96,155 13 Time deposits in accounts of $100,000 or more. 123,119 122,558 122,258 121,036 120,638 118,877 117,074 114,765 114,437 89,983 89,519 89,015 87,952 87,608 86,294 84,735 82,712 82,099 15 Other time deposits.............................................. 33,136 33,039 33,244 33,084 33,029 32,583 32,339 32,053 32,338 16 Loans sold outright to affiliates3........................... 3,498 3,453 3,435 3,463 3,590 3,546 3,583 3,544 3,599 17 Commercial and industrial.................................. 2,471 2,480 2,452 2,482 2,577 2,535 2,595 2,565 2,617 18 Other........................................................................ 1,027 973 983 981 1,013 1,011 988 980 982 Large weekly reporting banks in New York City 19 Total loans (gross) and investments adjusted1*4. 94,646 96,745 94,292 94,768 94,450 98,289 97,055 97,278 97,142 20 Total loans (gross) adjusted1.................................. 77,030 78,366 76,305 76,744 76,381 80,317 79,007 78,908 79,259 21 Demand deposits adjusted2.................................... 21,817 21,440 20,974 24,160 21,326 22,398 22,314 22,505 22,922 22 Time deposits in accounts of $100,000 or more. 35,191 34,886 34,810 34,351 33,438 32,512 31,674 30,731 30,100 23 Negotiable CDs..................................................... 27,683 27,373 27,248 26,874 26,062 25,202 24,425 23,548 22,906 24 Other time deposits.............................................. 7,508 7,513 7,562 7,477 7,376 7,310 7,249 7,184 7,194 1 Exclusive of loans and federal funds transactions with domestic com 3 Loans sold are those sold outright to a bank’s own foreign branches, mercial banks. nonconsolidated nonbank affiliates of the bank, the bank’s holding com 2 All demand deposits except U.S. government and domestic banks pany (if not a bank) and nonconsolidated nonbank subsidiaries of the less cash items in process of collection. holding company. 4 Excludes trading account securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A24 Domestic Financial Statistics □ May 1979 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry classification 1978 1979 1978 1979 1979 Dec. 27 Jan. 31 Feb. 28r Mar. 28 ' Apr. 25 Q4 Ql- Feb. Mar. Apr. 1 Durable goods manufacturing........... 18,004 17,786 18,814 19,479 20,600 365 1,475 1,028 665 1,121 2 Nondurable goods manufacturing... 17,216 16,474 16,814 17,452 17,570 213 236 339 638 118 3 Food, liquor, and tobacco.............. 4,936 4,620 4,685 4,812 4,766 686 -124 64 127 -46 4 Textiles, apparel, and leather......... 3,726 3,788 3,943 4,189 4,323 -624 463 156 246 134 5 Petroleum refining............................. 2,643 2,370 2,352 2,273 2,112 153 -370 -18 -79 -160 6 Chemicals and rubber...................... 3,540 3,285 3,383 3,506 3,603 88 -34 98 124 97 7 Other nondurable goods................. 2,371 2,411 2,451 2,671 2,766 -89 300 40 220 94 8 Mining (including crude petroleum and natural gas)............................ 10,652 10,038 9,982 10,143 10,376 200 -509 -56 160 233 9 Trade........................................................ 19,964 21,136 21,484 22,476 22,961 817 2,512 347 992 485 10 Commodity dealers........................... 1,963 1,982 1,946 1,892 1,815 227 -71 -36 -54 -78 11 Other wholesale................................. 9,436 10,157 10,399 10,966 11,265 277 1,530 242 566 300 12 Retail.................................................... 8,565 8,997 9,138 9,618 9,881 312 1,053 141 480 263 13 Transportation, communication, and other public utilities..................... 13,411 13,543 13,834 13,986 14,397 1,086 575 292 151 411 14 T ransportation................................... 5,641 5,798 6,031 6,203 6,255 74 562 232 172 53 15 Communication................................. 1,797 1,753 1,830 1,845 1,881 83 48 76 16 35 16 Other public utilities......................... 5,973 5,991 5,974 5,938 6,261 930 -35 -17 -36 323 17 Construction........................................... 5,207 5,113 5,077 5,399 5,503 -25 192 -36 322 104 18 Services.................................................... 14,957 15,478 15,610 15,914 16,344 982 957 132 304 431 19 All other1................................................ 16,908 15,592 15,775 14,545 14,818 -409 -2,363 183 -1,230 273 20 Total domestic loans............................ 116,319 115,161 117,390 119,394 122,570 3,229 3,075 2,229 2,003 3,176 21 Memo: Term loans (original maturity more than 1 year) included in domestic loans............................... 55,273 57,709 58,700 60,014 61,389 1,718 4,741 991 1,314 1,375 1 Includes commercial and industrial loans at a few banks with assets with domestic assets of $1 billion or more as of December 31, 1977 are of $1 billion or more that do not classify their loans. included in this series. The revised series is on a last-Wednesday-of-themonth basis. Note. New series. The 134 large weekly reporting commercial banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Deposits and Commercial Paper A25 1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations Billions of dollars, estimated daily-average balances At commercial banks Type of holder 1977 1978 1974 1975 1976 Dec. Dec. Dec. June Sept. Dec. Mar. June Sept. Dec. 1 All holders, individuals, partnerships, and 225.0 236.9 250.1 253.8 252.7 274.4 262.5 271.2 278.8 294.6 19.0 20.1 22.3 25.9 23.7 25.0 24.5 25.7 25.9 27.8 3 Nonfinancial business................................................ 118.8 125.1 130.2 129.2 128.5 142.9 131.5 137.7 142.5 152.7 73.3 78.0 82.6 84.1 86.2 91.0 91.8 92.9 95.0 97.4 2.3 2.4 2.7 2.5 2.5 2.5 2.4 2.4 2.5 2.7 11.7 11.3 12.4 12.2 11.8 12.9 12.3 12.4 13.1 14.1 At weekly reporting banks 1978 1975 1976 1977 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. 7 All holders, individuals, partnerships, and 124.4 128.5 139.1 136.9 139.9 137.7 139.7 141.3 142.7 147.0 8 Financial business....................................................... 15.6 17.5 18.5 19.0 19.4 19.4 18.9 19.1 19.3 19.8 9 Nonfinancial business................................................ 69.9 69.7 76.3 71.9 73.7 72.0 74.1 75.0 75.7 79.0 29.9 31.7 34.6 36.6 37.1 36.8 37.1 37.5 37.7 38.2 2.3 2.6 2.4 2.3 2.3 2.4 2.4 2.5 2.5 2.5 6.6 7.1 7.4 7.1 7.3 7.1 7.3 7.2 7.5 7.5 Note. Figures include cash items in process of collection. Estimates of banks. Types of depositors in each category are described in the June 1971 gross deposits are based on reports supplied by a sample of commercial Bulletin, p. 466. 1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1978 1979 1975 1976 1977 Instrument Dec. Dec. Dec. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Commercial paper (seasonally adjusted) 48,471 52,971 65,101 77,021 77,734 80,679 83,665 85,226 87,358 90,796 Financial companies1 Dealer-placed paper 2 2 Total.......................................................................... 6,212 7,261 8,884 11,429 10,949 11,487 12,296 12,915 13,419 14,247 3 Bank-related............................................................. 1,762 1,900 2,132 2,622 2,868 3,231 3,521 4,413 3,969 3,793 Directly-placed paper 3 4 Total.......................................................................... 31,404 32,511 40,484 47,760 48,460 50,093 51,630 52,880 54,586 55,653 6,892 5,959 7,102 10,383 10,925 11,478 12,314 12,191 12,166 12,642 6 Nonfinancial companies4.......................................... 10,855 13,199 15,733 17,832 18,325 19,099 19,739 19,431 19,353 20,896 Dollar acceptances (not seasonally adjusted) 7 Total.............................................................................. 18,727 22,523 25,450 27,952 30,579 32,145 33,700 33,749 34,337 34,617 Held by 8 Accepting banks........................................................... 7,333 10,442 10,434 7,647 8,379 8,082 8,579 7,339 7,715 7,645 5,899 8,769 8,915 6,461 7,012 6,840 7,653 6,214 6,708 6,535 10 Bills bought............................................................. 1,435 1,673 1,519 1,186 1,366 1,243 927 1,125 1,007 1,110 Federal Reserve Banks 11 Own account . . . . . ............................ 1,126 991 954 1 1 293 375 362 556 557 585 664 765 750 743 13 Others............................................................................ 9,975 10,715 13,904 19,748 21,644 23,478 24,456 25,646 25,829 26,179 Based on 3,726 4,992 6,378 7,957 8,575 8,675 8,574 8,869 9,114 9,281 4,001 4,818 5,863 6,350 6,665 7,224 7,586 7,762 7,858 8,104 11,000 12,713 13,209 13,644 15,339 16,245 17,540 17,118 17,365 17,232 1 Institutions engaged primarily in activities such as, but not limited to, 3 As reported by financial companies that place their paper directly commercial, savings, and mortgage banking; sales, personal, and mortgage with investors. . . . . . . financing; factoring, finance leasing, and other business lending; insurance 4 Includes public utilities and firms engaged primarily in activities such underwriting; and other investment activities. as communications, construction, manufacturing, mining, wholesale and 2 Includes all financial company paper sold by dealers in the open retail trade, transportation, and services, market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A26 Domestic Financial Statistics □ May 1979 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Percent per annum Month Average Month Average Effective date Rate Effective date Rate rate rate 1978—Jan. 10.............. 8 1978—Sept. 15............ 9% 1977—Aug. 6.83 1978—July. 9.00 28............ 9% Sept. 7.13 Aug. 9.01 May 8% Oct.. 7.52 Sept. 9.41 26............ 8% Oct. 13............ 10 Nov. 7.75 Oct.. 9.94 27............ 10% Dec. 7.75 Nov. 10.94 June 8% Dec. 11.55 9 Nov. 1............ 10% 1978—Jan.. 7.93 6......... 10% Feb. 8.00 1979—Jan. 11.75 Aug. 31............. 9% 17............. Mar. 8.00 Feb. 11.75 24............ 11% Apr. 8.00 Mar. 11.75 May 8.27 Apr. 11.75 Dec. 26............ 11% June 8.63 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 5-10, 1979 Size of loan (in thousands of dollars) All Item sizes 1,000 1-24 25-49 50-99 100-499 500-999 and over Short-term commercial and industrial loans 1 Amount of loans (thousands of dollars)........ 6,849,553 764,236 572,350 582,423 1,571,248 639,108 2,720,187 2 Number of loans.................................................. 144,174 106,536 17,073 9,420 8,982 1,025 1,137 3 Weighted-average maturity (months)............. 3.2 3.3 3.3 3.7 3.3 3.3 2.8 4 Weighted-average interest rate (percent per annum)........................................................... 12.27 12.14 12.01 12.83 12.55 12.63 11.99 5 Interquartile range1........................................ 11.51-13.10 10.47-13.52 10.75-13.25 11.75-14.20 11.89-13.37 12.00-13.28 11.50-12.45 Percent of amount of loans: 6 With floating rate............................................ 50.1 29.0 39.6 36.8 45.9 56.9 61.8 7 Made under commitment.............................. 46.4 20.3 24.1 37.5 47.6 55.3 57.5 Long-term commercial and industrial loans ----------------' 8 Amount of loans (thousands of dollars)........ 1,081,529 242,097 205,214 96,688 537,530 9 Number of loans.................................................. 16,416 14,943 1,111 154 207 10 Weighted-average maturity (months)............. 47.6 36.7 51.0 57.2 49.6 11 Weighted-average interest rate (percent per annum)........................................................... 12.01 11.83 12.25 11.93 12.02 12 Interquartile range1........................................ 11.50-13.15 10.47-13.16 11.57-13.15 11.75-12.50 11.50-13.25 Percentage of amount of loans: 13 With floating rate............................................ 61.7 25.8 52.5 71.4 79.6 14 Made under commitment.............................. 55.4 29.3 41.9 61.0 71.2 Construction and land development loans 15 Amount of loans (thousands of dollars)........ 591,415 94,199 63,486 93,408 122,193 218,129 16 Number of loans.................................................. 15,222 11,013 1,918 1,520 639 133 17 Weighted-average maturity (months).............. 7.8 8.4 5.4 2.8 7.8 10.4 18 Weighted-average interest rate (percent per annum)........................................................... 11.79 11.22 12.15 12.00 12.43 11.48 19 Interquartile range1........................................ 10.21-13.37 10.00-12.55 10.16-13.69 10.50-12.68 11.05-13.75 9.95-13.00 Percentage of amount of loans: 20 With floating rate............................................ 44.2 22.6 24.8 20.2 53.8 64.1 21 Secured by real estate..................................... 92.4 84.1 92.9 97.4 93.8 92.9 22 Made under commitment.............................. 59.3 49.1 48.1 71.7 56.3 63.2 23 Type of construction: 1- to 4-family........... 40.9 62.0 80.1 82.3 38.4 4.1 24 Multifamily.............. 15.8 2.9 3.3 4.0 16.7 29.6 25 N onresidential......... 43.2 35.2 16.5 13.7 44.9 66.2 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over Loans to farmers 26 Amount of loans (thousands of dollars)........ 968,124 154,312 159,679 154,817 166,626 137,522 195,168 27 Number of loans.................................................. 62,545 43,081 11,189 4,553 2,411 996 315 28 Weighted-average maturity (months).............. 7.8 8.4 10.7 8.0 8.0 6.1 5.1 29 Weighted-average interest rate (percent per annum)........................................................... 11.01 10.34 10.40 10.37 10.69 11.69 12.33 30 Interquartile range1........................................ 10.00-11.83 9.50-11.00 9.73-11.00 9.61-11.00 10.00-11.00 11.00-12.49 11.00-13.50 By purpose of loan: 31 Feeder livestock........................................... 11.10 10.35 10.18 10.54 10.60 11.33 12.86 32 Other livestock............................................ 11.23 10.47 10.87 10.53 10.71 (2) (2) 33 Other current operating expenses............ 10.88 10.31 10.42 10.33 10.78 11.65 12.07 34 Farm machinery and equipment............. 10.28 10.23 10.25 10.10 (2) (2) (2) 35 Other.............................................................. 11.23 10.42 10.83 10.28 10.66 12.61 11.81 1 Interest rate range that covers the middle 50 percent of the total 2 Fewer than 10 sample loans, dollar amount of loans made. Note. For more detail, see the board’s 416 (G. 14) statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Securities Markets A27 1.36 INTEREST RATES Money and Capital Markets Averages, per cent per annum 1979 1979,week ending— 1976 1977 1978 Jan. Feb. Mar. Apr. Mar. 31 Apr. 7 Apr. 14Apr. 21 Apr. 28 Money market rates 1 Federal funds1.................................................. 5.05 5.54 7.94 10.07 10.06 10.09 10.01 10.00 9.95 9.93 9.96 10.09 Prime commercial paper2-3 2 90- to 119-day................................................... 5.24 5.54 7.94 10.25 9.95 9.90 9.85 9.76 9.83 10.04 9.90 9.65 3 4- to 6-month................................................... 5.35 5.60 7.99 10.32 10.01 9.96 10.39 9.81 9.85 10.05 9.94 9.68 4 Finance company paper, directly placed, 3- to 6-month3-4...................................... 5.22 5.49 7.78 10.10 9.85 9.73 10.15 9.51 9.66 9.77 9.64 9.51 5 Prime bankers acceptances, 90-day3*5........ 5.19 5.59 8.11 10.29 10.01 9.94 10.42 9.82 9.90 10.05 9.90 9.75 Large negotiable certificates of deposit 6 3-month, secondary market6......................... 5.26 5.58 8.20 10.51 10.18 10.13 10.05 9.99 10.09 10.27 9.94 9.94 7 Eurodollar deposits, 3-month 7................... 5.57 6.05 8.74 11.16 10.79 10.64 10.60 10.54 10.53 10.81 10.49 10.71 U.S. government securities Bills3-8 Market yields: 8 3-month..................................................... 4.98 5.27 7.19 9.35 9.32 9.48 9.46 9.46 9.53 9.70 9.41 9.23 9 6-month..................................................... 5.26 5.53 7.58 9.47 9.41 9.47 9.49 9.43 9.46 9.65 9.45 9.40 10 1-year......................................................... 5.52 5.71 7.74 9.54 9.39 9.38 9.28 9.29 9.26 9.37 9.22 9.27 Rates on new issue:9 11 3-month..................................................... 4.989 5.265 7.221 9.351 9.265 9.457 9.493 9.498 9.593 9.649 9.613 9.115 12 6-month..................................................... 5.266 5.510 7.572 9.501 9.349 9.458 9.498 9.437 9.496 9.572 9.627 9.295 CCapital m;arket rates Government notes and bonds U.S. Treasury Constant maturities10 13 1-year........................................ 5.8 6.09 8.34 10.41 10.24 10.25 10.12 10.11 10.09 10.24 10.04 10.12 14 2-year........................................ 6.45 8.34 9.86 9.72 9.79 9.78 9.72 9.72 9.83 9.75 9.80 15 3-year........................................ 6.77 6.69 8.29 9.50 9.29 9.38 9.43 9.33 9.34 9.46 9.44 9.47 16 5-year........................................ 7.18 6.99 8.32 9.20 9.13 9.20 9.25 9.18 9.18 9.28 9.24 9.28 17 7-year........................................ 7.42 7.23 8.36 9.14 9.11 9.15 9.21 9.13 9.12 9.23 9.20 9.26 18 10-year...................................... 7.61 7.42 8.41 9.10 9.10 9.12 9.18 9.09 9.09 9.18 9.17 9.25 19 20-year...................................... 7.86 7.67 8.48 8.98 9.03 9.08 9.12 9.05 9.05 9.11 9.12 9.20 20 30-year...................................... 8.49 8.94 9.00 9.03 9.08 9.01 9.01 9.07 9.08 9.15 Notes and bonds maturing in—11 21 3 to 5 years...................................... 6.94 6.85 8.30 9.36 9.16 9.25 9.32 9.23 9.24 9.34 9.32 9.35 22 Over 10 years (long-term)............. 6.78 7.06 7.89 8.43 8.43 8.45 8.44 8.43 8.40 8.43 8.43 8.47 State and local Moody's series12 23 Aaa......................... 5.66 5.20 5.52 5.95 5.66 5.82 5.80 5.90 5.85 5.85 5.75 5.75 24 Baa......................... 7.49 6.12 6.27 7.14 6.75 6.41 6.25 6.40 6.20 6.30 6.20 6.30 25 Bond Buyer series13. 6.64 5.68 6.03 6.47 6.31 6.33 6.29 6.28 6.25 6.33 6.30 6.26 Corporate bonds Seasoned issues14 26 All industries........ 9.01 8.43 9.07 9.65 9.63 9.76 9.81 9.77 9.76 9.79 9.82 9.86 By rating groups: 27 Aaa......................... 8.43 8.02 8.73 9.25 9.26 9.37 9.38 9.35 9.31 9.37 9.39 9.44 28 Aa........................... 8.75 8.24 8.92 9.48 9.50 9.61 9.65 9.61 9.61 9.59 9.65 9.72 29 A............................. 9.09 8.49 9.12 9.72 9.68 9.81 9.88 9.84 9.84 9.87 9.89 9.90 30 Baa......................... 9.75 8.97 9.45 10.13 10.08 10.26 10.33 10.28 10.29 10.33 10.36 10.36 Aaa utility bonds15 31 New issue....................... 8.48 8.19 8.96 9.54 9.53 9.62 9.70 9.60 9.59 9.68 9.66 9.87 32 Recently offered issues. 8.49 8.19 8.97 9.51 9.56 r9.62 9.74 9.62 9.61 9.68 9.70 9.88 Dividend/price ratio 33 Preferred stocks............ 7.97 7.60 8.25 8.79 8.77 8.77 8.29 8.78 8.31 8.29 8.24 8.31 34 Common stocks........... 3.77 4.56 5.28 5.29 5.43 5.39 5.35 5.28 5.31 5.35 5.38 5.36 1 Weekly figures are 7-day averages of daily effective rates for the week 9 Rates are recorded in the week in which bills are issued. ending Wednesday; the daily effective rate is an average of the rates on 10 Yields on the more actively traded issues adjusted to constant a given day weighted by the volume of transactions at these rates. maturities by the U.S. Treasury, based on daily closing bid prices. 2 Beginning Nov. 1977, unweighted average of offering rates quoted 11 Unweighted averages for all outstanding notes and bonds in maturity by at least five dealers. Previously, most representative rate quoted by ranges shown, based on daily closing bid prices. “Long-term” includes those dealers. all bonds neither due nor callable in less than 10 years, including a num 3 Yields are quoted on a bank-discount basis. ber of very low yielding “flower” bonds. 4 Averages of the most representative daily offering rates published by 12 General obligations only, based on figures for Thursday, from finance companies for varying maturities in this range. Moody’s Investors Service. 5 Average of the midpoint of the range of daily dealer closing rates 13 Twenty issues of mixed quality. offered for domestic issues. 14 Averages of daily figures from Moody’s Investors Service. 6 Weekly figures (week ending Wednesday) are 7-day averages of the 15 Compilation of the Board of Governors of the Federal Reserve daily midpoints as determined from the range of offering rates; monthly System. figures are averages of total days in the month. Beginning Apr. 5, 1978, Issues included are long-term (20 years or more). New-issue yields weekly figures are simple averages of offering rates. are based on quotations on date of offering; those on recently offered 7 Averages of daily quotations for the week ending Wednesday. issues (included only for first 4 weeks after termination of underwriter 8 Except for new bill issues, yields are computed from daily closing price restrictions), on Friday close-of-business quotations. bid prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A28 Domestic Financial Statistics □ May 1979 1.37 STOCK MARKET Selected Statistics 1978 1979 Indicator 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31,1965 = 50). 54.45 53.67 53.76 56.40 52.74 53.69 55.76 55.06 56.18 57.50 2 Industrial..................................................................... 60.44 57.84 58.30 61.60 57.50 58.72 61.31 60.42 61.89 63.64 39.57 41.07 43.25 46.70 41.80 42.49 43.69 42.27 43.22 45.92 4 Utility........................................................................... 36.97 40.91 39.23 39.44 37.88 38.09 38.79 39.22 38.94 38.63 52.94 55.23 56.74 60.42 54.95 55.73 57.59 56.09 57.65 59.50 6 Standard & Poor’s Corporation (1941-43 = 10)1.. 102.01 98.18 96.11 100.58 94.71 96.10 99.70 98.23 100.11 102.10 7 American Stock Exchange (Aug. 31,1973 = 100). 101.63 116.18 144.56 160.14 144.17 149.94 159.26 160.92 171.51 181.14 Volume of trading (thousands of shares) 8 New York Stock Exchange...................................... 21,189 20,936 28,591 31,020 24,505 24,622 27,988 25,037 29,536 31,033 9 American Stock Exchange....................................... 2,565 2,514 3,922 4,544 3,304 3,430 3,150 2,944 4,105 4,262 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2 8,166 9,993 11,035 12,307 11,209 11,035 10,955 10,989 11,056 T 11 Margin stock 3................................................... 7,960 9,740 10,830 12,090 11,000 10,830 10,750 10,790 10,870 12 Convertible bonds............................................ 204 250 205 216 209 205 204 195 185 13 Subscription issues.......................................... 2 3 1 1 1 1 4 1 n.a. Free credit balances at brokers4 14 Margin-account................................................ 585 640 835 885 790 835 810 775 830 15 Cash-account..................................................... 1,855 2,060 2,510 2,465 2,305 2,510 2,565 2,430 2,490 Margin-account debt at brokers (percentage distribution, end of period) 16 Total.............................................................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40....................................................................... 12.0 18.0 33.0 47.0 32.0 33.0 21.0 29.0 18.0 18 40-49............................................................................. 23.0 36.0 28.0 20.0 27.0 28.0 32.0 31.0 30.0 n.a. 19 50-59.............................................................................. 35.0 23.0 18.0 15.0 20.0 18.0 22.0 18.0 25.0 20 60-69............................................................................. 15.0 11.0 10.0 8.0 10.0 10.0 12.0 11.0 13.0 21 70-79.............................................................................. 8.7 6.0 6.0 5.0 6.0 6.0 7.0 6.0 8.0 22 80 or more.................................................................... 6.0 5.0 5.0 5.0 5.0 5.0 6.0 5.0 6.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6. 8,776 9,910 Distribution by equity status (percent) 24 Net credit status................................ 41.3 43.4 Debit status, equity of— 25 60 percent or more...................... 47.8 44.9 26 Less than 60 percent................... 10.9 11.7 Margin requirements (percent of market value)7 Effective date Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks............................................................. 70 80 65 55 65 50 28 Convertible bonds...................................................... 50 60 50 50 50 50 29 Short sales................................................................... 70 80 65 55 65 50 1 Effective July 1976, includes a new financial group, banks and in 5 Each customer’s equity in his collateral (market value of collateral surance companies. With this change the index includes 400 industrial less net debit balance) is expressed as a percentage of current collateral stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public values. utility (formerly 60), and 40 financial. 6 Balances that may be used by customers as the margin deposit re 2 Margin credit includes all credit extended to purchase or carry quired for additional purchases. Balances may arise as transfers based stocks or related equity instruments and secured at least in part by stock. on loan values of other collateral in the customer’s margin account or Credit extended is end-of-month data for member firms of the New York deposits of cash (usually sales proceeds) occur. Stock Exchange. 7 Regulations G, T, and U of the Federal Reserve Board of Governors, In addition to assigning a current loan value to margin stock generally, prescribed in accordance with the Securities Exchange Act or 1934, Regulations T and U permit special loan values for convertible bonds limit the amount of credit to purchase and carry margin stocks that may and stock acquired through exercise of subscription rights. be extended on securities as collateral by prescribing a maximum loan 3 A distribution of this total by equity class is shown on lines 17-22. value, which is a specified percentage of the market value of the collateral 4 Free credit balances are in accounts with no unfulfilled commitments at the time the credit is extended. Margin requirements are the difference to the brokers and are subject to withdrawal by customers on demand. between the market value (100 percent) and the maximum loan value. The term “margin stocks” is defined in the corresponding regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Thrift Institutions A29 1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1978 1979 1975 1976 1977 Account July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.* Savings and loan associations9 1 Assets......................................... 338,233 391,907 459,241 498,301 504,298 508,977 515,352 520,677523,649 529,820 534,168 539,663 2 Mortgages................................ 278,590 323,005 381,163 411,956 416,677 420,971 425,236 429,420432,858 435,460 437,905 441,347 3 Cash and investment securities1............................. 30,853 35,724 39,150 43,627 44,188 43,987 45,577 45,869 44,855 47,653 49,018 50,161 4 Other.......................................... 28,790 33,178 38,928 42,718 43,433 44,019 44,539 45,388 45,936 46,707 . 47,245 48,155 5 Liabilities and net worth........ 338,233 391,907 459,241 498,301 504,298 508,977 515,352 520,677523,649 529,820 534,168 539,663 6 Savings capital......................... 285,743 335,912 386,800 411,660 413,972 420,405 423,050 425,207431,009 435,752 438,633 446,955 7 Borrowed money...................... 20,634 19,083 27,840 35,730 37,219 38,595 39,873 40,981 42,960 42,368 41,368 41,637 8 FHLBB................................. 17,524 15,708 19,945 26,151 27,363 28,632 29,456 30,322 31,990 31,758 31,004 31,177 9 Other...................................... 3,110 3,375 7,895 9,579 9,856 9,963 10,417 10,659 10,970 10,610 10,364 10,460 10 Loans in process..................... 5,128 6,840 9,911 11,540 11,422 11,222 11,165 11,315 10,737 10,445 10,287 10,299 11 Other.......................................... 6,949 8,074 9,506 11,972 13,906 10,676 12,832 14,666 9,918 11,971 14,250 10,901 12 Net worth2............................... 19,779 21,998 25,184 27,399 27,779 28,079 28,432 28,808 29,025 29,284 29,630 29,871 13 Memo: Mortgage loan com mitments outstanding 3.. 10,673 14,826 19,875 22,393 22,047 21,648 21,503 20,738 18,911 "18,053 19,038 21,062 Mutual savings banks10 14 Assets........................................ 121,056 134,812 147,287 154,315 155,210 156,110 156,843 157,436 158,185 158,910 160,097 Loans: 15 Mortgage.............................. 77,221 81,630 88,195 92,230 92,866 93,403 93,903 94,497 95,205 95,582 95,857 16 Other..................................... 4,023 5,183 6,210 8,207 8,379 8,418 8,272 7,921 7,176 7,729 8,426 Securities: 17 U.S. government............... 4,740 5,840 5,895 5,269 5,210 5,172 5,105 5,035 4,950 4,811 4,775 18 State and local government. 1,545 2,417 2,828 3,025 3,098 3,180 3,190 3,307 3,335 3,328 3,167 19 Corporate and other4........ 27,992 33,793 37,918 39,639 39,592 39,639 39,651 39,679 39,759 40,044 40,353 2,330 2,355 2,401 2,029 2,080 2,293 2,735 3,033 3,730 3,332 3,368 21 3,205 3,593 3,839 3,915 3,985 4,006 3,988 3,962 4,031 4,085 4,151 22 Liabilities.................................. 121,056 134,812 147,287 154,315 155,210 156,110 156,843 157,436 158,185 158,910 160,097 n.a. 23 Deposits.................................... 109,873 122,877 134,017 139,128 139,308 140,816 141,026 141,155142,629 142,854 143,496 24 Regular:5.............................. 109,291 121,961 132,744 137,430 137,690 139,068 139,422 139,853 141,089 141,355 142,022 25 Ordinary savings............. 69,653 74,535 78,005 76,116 75,578 75,423 74,124 72,398 71,702 70,540 68,685 26 Time and other............... 39,639 47,426 54,739 61,313 62,112 63,645 65,298 67,299 69,387 70,815 73,338 27 Other...................................... 582 916 1,272 1,698 1,619 1,747 1,604 1,458 1,540 1,499 1,474 28 Other liabilities....................... 2,755 2,884 3,292 4,636 5,246 4,570 5,040 5,411 4,666 5,090 5,561 29 General reserve accounts.... 8,428 9,052 9,978 10,551 10,654 10,725 10,777 10,870 10,891 10,967 11,040 30 Memo : Mortgage loan commitments outstanding6.. 1,803 2,439 4,066 4,872 4,789 4,561 4,843 4,823 4,400 4,366 4,453 Life insurance companies11 31 Assets........................................ 289,304 321,552 351,722 374,415 378,124 381,050 382,446 385,562389,021 393,402 395,553 Securities: 32 13,758 17,942 19,553 19,447 19,563 19,638 19,757 19,711 19,579 19,829 19,922 33 4,736 5,368 5,315 5,006 5,155 5,156 5,183 4,934 A,195 5,049 5,209 34 State and local................. 4,508 5,594 6,051 5,925 5,884 6,001 6,035 6,235 6,250 6,236 6,132 35 Foreign8........................... 4,514 6,980 8,187 8,516 8,524 8,481 8,539 8,542 8,534 8,544 8,581 36 Business................................. 135,317 157,246 175,654 192,112 194,620 196,152 195,883 197,615197,342 201,061 201,869 n.a. 37 Bonds................................ 107,256 122,984 141,891 156,207 157,888 159,972 161,347 162,835 161,923 165,552 166,693 38 Stocks................................ 28,061 34,262 33,763 35,905 36,732 36,180 34,536 34,780 35,419 35,509 35,176 89,167 91,552 96,848 100,596 101,602 102,365 103,161 104,106 105,932 106,397 107,137 40 Real estate................................ 9,621 10,476 11,060 11,562 11,538 11,583 11,693 11,707 11,776 11,841 11,919 41 Policy loans.............................. 24,467 25,834 27,556 28,843 29,067 29,290 29,521 29,818 30,202 30,506 30,835 42 Other assets.............................. 16,971 18,502 21,051 21,855 21,734 22,022 22,431 22,605 24,190 23,768 23,871 Credit unions 43 Total assets/liabilities and 38,037 45,225 54,084 59,152 60,141 61,211 60,909 61,465 62,595 61,756 62,319 63,883 44 Federal.................................. 20,209 24,396 29,574 32,679 33,315 34,058 33,718 34,093 34,681 34,165 34,419 35,289 45 17,828 20,829 24,510 26,473 26,826 27,219 27,191 27,372 27,914 27,591 27,900 28,594 46 Loans outstanding................... 28,169 34,384 42,055 47,620 49,103 50,121 50,549 51,264 51,807 51,526 51,716 52,480 47 Federal.................................. 14,869 18,311 22,717 25,970 26,840 27,510 27,697 28,176 28,583 28,340 28,427 28,918 48 State...................................... 13,300 16,073 19,338 21,650 22,263 22,611 22,852 23,088 23,224 23,186 23,289 23,562 49 Savings...................................... 33,013 39,173 46,832 51,551 51,772 52,867 52,468 52,600 53,048 51,916 52,484 54,243 50 Federal (shares)................... 17,530 21,130 25,849 28,627 28,779 29,429 29,086 29,163 29,326 28,427 28,743 29,741 51 State (shares and deposits). 15,483 18,043 20,983 22,924 22,993 23,438 23,382 23,437 23,722 23,489 23,741 24,502 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A30 Domestic Financial Statistics □ May 1979 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Transition quarter Fiscal Fiscal Type of account or operation (July- year year 1977 1978 1979 Sept. 1977 1978 1976) H2 HI H2 Jan. Feb. Mar. U.S. budget 1 Receipts1.............................................. 81,772 357,762 401,997 175,820 210,650 206,275 38,364 32,639 31,144 2 Outlays1................................................ 94,729 402,725 450,836 216,781 222,518 238,150 41,095 37,739 43,725 3 Surplus, or deficit (—)................... -12,956 -44,963 -48,839 -40,961 -11,870 -31,875 -2,731 -5,100 -12,581 4 Trust funds...................................... -1,952 7,833 12,693 4,293 4,334 11,755 -3,971 2,188 -1,155 5 Federal funds 2............................... -11,004 -52,796 -61,532 -45,254 -16,204 -43,630 1,240 -7,288 -11,426 Off-budget entities surplus, or deficit (—) 6 Federal Financing Bank outlays... -2,564 -8,201 -10,614 -6,663 -5,105 -5,082 -693 -995 -1,639 7 Other 3................................................... 779 -483 287 428 -790 1,841 -272 62 498 U.S. budget plus off-budget, in cluding Federal Financing Bank 8 Surplus, or deficit ( —)....................... -14,741 -53,647 -59,166 —47,196 -17,765 -35,117 -3,696 -6,033 -13,722 Financed by: 9 Borrowing from the public.......... 18,027 53,516 59,106 40,284 23,374 30,308 3,312 -668 8,012 10 Cash and monetary assets (de crease, or increase ( — ))........ -2,899 -2,238 -3,023 4,317 -5,098 3,381 -227 8,179 -779 11 Other 4.............................................. -387 2,369 3,083 2,597 -511 1,428 611 -1,478 6,489 Memo items : 12 Treasury operating balance (level, end of period).......................................... 17,418 19,104 22,444 12,274 17,526 16,291 15,146 6,887 7,685 13 Federal Reserve Banks..................... 13,299 15,740 16,647 7,114 11,614 4,196 3,522 3.443 5,726 14 Tax and loan accounts..................... 4,119 3,364 5,797 5,160 5,912 12,095 11,624 3.444 1,959 1 Effective June 1978, earned income credit payments in excess of cellaneous liability (including checks outstanding) and asset accounts; an individual’s tax liability, formerly treated as income tax refunds, are seignorage; increment on gold; net gain/loss for U.S. currency valuation classified as outlays retroactive to January 1976. adjustment; net gain/loss for IMF valuation adjustment; and profit on 2 Half years calculated as a residual of total surplus/deficit and trust the sale of gold. fund surplus/deficit. 3 Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural Source. “Monthly Treasury Statement of Receipts and Outlays of Electrification and Telephone Revolving Fund; and Rural Telephone the U.S. Government,” Treasury Bulletin, and the Budget of the United Bank. States Government, Fiscal Year 1980„ 4 Includes accured interest payable to the public; deposit funds; mis NOTES TO TABLE 1.38 1 Holdings of stock of the Federal Home Loan Banks are included in Note. Savings and loan associations: Estimates by the FHLBB for “other assets.” all associations in the United States. Data are based on monthly reports 2 Includes net undistributed income, which is accrued by most, but not of federally insured associations and annual reports of other associations. all, associations. Even when revised, data for current and preceding year are subject to 3 Excludes figures for loans in process, which are shown as a liability. further revision. 4 Includes securities of foreign governments and international organiza Mutual savings banks: Estimates of National Association of Mutual tions and nonguaranteed issues of U.S. government agencies. Savings Banks for all savings banks in the United States. Data are re 5 Excludes checking, club, and school accounts. ported on a gross-of-valuation-reserves basis. 6 Commitments outstanding (including loans in process) of banks in Life insurance companies: Estimates of the American Council of Life New York State as reported to the Savings Banks Association of the Insurance for all life insurance companies in the United States. Annual State of New York. figures are annual-statement asset values, with bonds carried on an 7 Direct and guaranteed obligations. Excludes federal agency issues amortized basis and stocks at year-end market value. Adjustments for not guaranteed, which are shown in this table under “business” securities. interest due and accrued and for differences between market and book 8 Issues of foreign governments and their subdivisions and bonds of the values are not made on each item separately but are included, in total, in International Bank for Reconstruction and Development. “other assets.” 9 Data reflect benchmark revisions back to 1977. Credit unions: Estimates by the National Credit Union Administration 10 Data for June, July, and August 1978 have been revised. for a group of federal and state-chartered credit unions that account for 11 Data for 1977 and the first 6 months of 1978 have been revised by about 30 percent of credit union assets. Figures are preliminary and the American Council of Life Insurance. revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A31 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Transition quarter Fiscal Fiscal Source or type (July- year year 1977 1978 1979 Sept. 1977 1978 1976) H2 HI H2 Jan. Feb. Receipts 1All sources1.............................................. 81,772 357,762 401,997 175,820 210,650 206,275 38,364 32,639 31,144 2 Individual income taxes, net.................. 38,800 157,626 180,988 82,911 90,336 98,854 23,667 14,509 8,255 3 Withheld............................................. 32,949 144,820 165,215 75,480 82,784 90,148 15,843 16,292 16,194 4 Presidential Election Campaign Fund........................................... 1 37 39 1 36 3 5 10 5 Nonwithheld...................................... 6,809 42,062 47,804 9,397 37,584 10,777 7,866 1,037 3,119 6 Refunds1............................................ 958 29,293 32,070 1,967 30,068 2,075 42 2,825 11,068 7 Corporation income taxes 8 Gross receipts.................................... 9,808 60,057 65,380 25,121 38,496 28,536 2,539 1,706 9,879 9 Refunds.............................................. 1,348 5,164 5,428 2,819 2,782 2,757 392 424 578 10 Social insurance taxes and contribu tions, net......................................... 25,760 108,683 123,410 52,347 66,191 61,064 9,429 13,614 10,373 11 Payroll employment taxes and contributions 2.......................... 21,534 88,196 99,626 44,384 51,668 51,052 8,098 11,528 9,315 12 Self-employment taxes and contributions 3............. 269 4,014 4,267 316 3,892 369 341 322 321 13 Unemployment insurance............... 2,698 11,312 13,850 4,936 7,800 6,727 478 1,286 198 14 Other net receipts 4.......................... 1,259 5,162 5,668 2,711 2,831 2,917 512 478 540 15 Excise taxes............................................ 4,473 17,548 18,376 9,284 8,835 9,879 1,520 1,436 1,434 16 Customs deposits.................................. 1,212 5,150 6,573 2,848 3,320 3,748 630 527 621 17 Estate and gift taxes........................... 1,455 7,327 5,285 2,837 2,587 2,691 485 426 449 18 Miscellaneous receipts 5..................... 1,612 6,536 7,413 3,292 3,667 4,260 486 846 712 Outlays 8 19 All types1............................................... 94,729 402,725 450,836 216,781 222,518 238,150 41,095 37,739 43,725 20 National defense................................. 22,307 97,501 105,186 50,873 52,979 55,129 9,304 8,803 10,159 21 International affairs........................... 2,197 4,813 5,922 2,896 2,904 2,221 550 460 896 22 General science, space, and technology.................................... 1,161 4,677 4,742 2,318 2,395 2,362 421 422 459 23 Energy................................................... 794 4,172 5,861 2,487 4,461 622 904 700 24 Natural resources and environment, 2,532 10,000 10,925 4,959 6,119 953 1,030 855 25 Agriculture........................................... 581 5,532 7,731 ""5 All 2,353 4,854 1,755 762 457 26 Commerce and housing credit......... 1,392 -44 3,325 -946 3,291 109 -553 173 27 Transportation.................................... 3,304 14,636 15,444 7,723 8,758 1,419 1,095 1,257 28 Community and regional development................................ 1,340 6,286 11,000 4,924 5,928 6,108 800 625 773 29 Education, training, employment, and social services..................... 5,162 20,985 26,463 10,800 12,792 13,676 2,467 2,075 2,578 30 Health..................................................... 8,721 38,785 43,676 19,422 21,391 23,942 4,149 3,894 4,231 31 Income security1................................. 32,797 137,915 146,212 71,081 75,201 73,305 12,959 13,300 14,415 32 Veterans benefits and services........... 3,962 18,038 18,974 9,864 9,603 9,545 757 1,622 2,717 33 Administration of justice.................. 859 3,600 3,802 1,723 1,946 1,973 341 352 347 34 General government.......................... 883 3,374 3,777 1,749 1,803 2,111 392 300 435 35 General-purpose fiscal assistance..., 2,092 9,499 9,601 4,926 4,665 4,385 1,754 81 67 36 Interest 6.............................................. 7,216 38,009 43,966 19,962 22,280 24,110 2,860 4,099 3,807 37 Undistributed offsetting receipts 6*7 -2,567 -15,053 -15,772 -8,506 -7,945 -8,200 -516 -1,530 -603 1 Effective June 1978, earned income credit payments in excess of an Receipts” reflect the accounting conversion for the interest on special individual’s tax liability, formerly treated as income tax refunds, are issues for U.S. government accounts from an accrual basis to a cash basis. classified as outlays retroactive to January 1976. 7 Consists of interest received by trust funds, rents and royalties on 2 Old-age, disability and hospital insurance, and railroad retirement the Outer Continental Shelf, and U.S. government contributions for accounts. employee retirement. 3 Old-age, disability, and hospital insurance. 8 For some types of outlays the categories are new or represent re 4 Supplementary medical insurance premiums, federal employee re groupings; data for these categories are from the Budget of the United tirement contributions, and Civil Service retirement and disability fund. States Government, Fiscal Year 1980; data are not available for half-years 5 Deposits of earnings by Federal Reserve Banks and other miscel prior to 1978. laneous receipts. In addition, for some categories the table includes revisions in figures 6 Effective September 1976, “Interest” and “Undistributed Offsetting published earlier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A32 Domestic Financial Statistics □ May 1979 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1976 1977 1978 Item Sept. 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding....................... 2646.4 665.5 685.2 709.1 729.2 747.8 758.8 780.4 797.7 2 Public debt securities............................. 634.7 653.5 674.4 698.8 718.9 738.0 749.0 771.5 789.2 3 Held by public................................... 488.6 506.4 523.2 543.4 564.1 585.2 587.9 603.6 619.2 4 Held by agencies................................ 146.1 147.1 151.2 155.5 154.8 152.7 161.1 168.0 170.0 11.6 12.0 10.8 10.3 10.2 9.9 9.8 8.9 8.5 6 Held by public................................... 2 9.7 10.0 9.0 8.5 8.4 8.1 8.0 7.4 7.0 7 Held by agencies................................ 1.9 1.9 1.8 1.8 1.8 1.8 1.8 1.5 1.5 8 Debt subject to statutory limit.............. 635.8 654.7 675.6 700.0 720.1 739.1 750.2 772.7 790.3 9 Public debt securities............................. 634.1 652.9 673.8 698.2 718.3 737.3 748.4 770.9 788.6 10 Other debt1............................................. 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.7 11 Memo: Statutory debt limit;............... 636.0 682.0 700.0 700.0 752.0 752.0 752.0 798.0 798.0 1 Includes guaranteed debt of government agencies, specified participa $0.5 billion due to a retroactive reclassification of the Export-import Bank tion certificates, notes to international lending organizations, and District certificates of beneficial interest from loan asset sales to debt, effective of Columbia stadium bonds. July 1, 1975. 2 Gross federal debt and agency debt held by the public increased Note. Data from Treasury Bulletin (U.S. Treasury Department). 1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1978 1979 Type and holder 1974 1975 1976 1977 Feb. Mar. Apr. 1 Total gross public debt................................... 492.7 576.6 653.5 718.9 789.2 790.5 792.2 796.8 796.4 By type 2 Interest-bearing debt........................................ 491 575.7 652.5 715.2 782.4 789.5 791.2 792.3 795.4 3 Marketable....................................................... 282 363.2 421.3 459.9 487.5 496.5 498.0 500.4 504.6 4 Bills................................................................ 119 157.5 164.0 161.1 161.7 162.3 162.4 165.5 163.7 5 Notes............................................................. 129 167.1 216.7 251.8 265.8 272.8 271.4 270.8 275.3 6 Bonds............................................................. 33 38.6 40.6 47.0 60.0 61.4 64.2 64.1 65.5 7 Nonmarketable1.............................................. 208 212.5 231.2 255.3 294.8 293.0 293.3 ? 291.9 290.8 8 Convertible bonds2.................................... 2. 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 9 State and local government series........... 1.2 4.5 13.9 24.3 24.2 24.2 24.2 24.0 10 Foreign issues 3............................................ 22. 21.6 22.3 22.2 29.6 30.3 28.2 28.2 25.4 11 Government............................................. 22. 21.6 22.3 22.2 28.0 27.5 25.4 24.0 21.3 12 Public......................................................... \ 0 0 0 1.6 2.8 2.8 4.2 4.2 13 Savings bonds and notes........................... 63. 67.9 72.3 77.0 80.9 80.8 80.8 80.8 80.8 14 Government account series4.................... 119. 119.4 129.7 139.8 157.5 155.2 157.6 153.8 158.2 15 Non-interest-bearing debt......................... 1.1 1.0 1.1 3.7 6.8 1.0 1.0 4.4 .9 By holder5 16 U.S. government agencies and trust funds 138.2 139.1 147.1 154.8 170.0 167.7 170.1 17 Federal Reserve Banks.................................. 80.5 89.8 97.0 102.5 109.6 101.3 103.5 18 Private investors.............................................. 271.0 349.4 409.5 461.3 508.6 521.4 518.6 19 Commercial banks.......................................... 55.6 85.1 103.8 101.4 93.4 95.0 94.0 20 Mutual savings banks.................................... 2.5 4.5 5.9 5.9 5.2 5.2 5.2 21 Insurance companies...................................... 6.2 9.5 12.7 15.1 15.0 15.1 15.1 22 Other corporations......................................... 11.0 20.2 27.7 22.7 20.6 22.5 23.5 23 State and local governments........................ 29.2 34.2 41.6 55.2 68.6 67.9 68.6 Individuals 24 Savings bonds.............................................. 63.4 67.3 72.0 76.7 80.7 80.6 80.6 25 Other securities............................................ 21.5 24.0 28.8 28.6 30.0 30.4 30.8 26 Foreign and international6........................... 58.8 66.5 78.1 109.6 137.8 142.2 137.0 27 Other miscellaneous investors7................... 22.8 38.0 38.9 46.1 57.4 62.5 63.8 1 Includes (not shown separately): Securities issued to the Rural 6 Consists of the investments of foreign balances and international Electrification Administration, depositary bonds, retirement plan bonds, accounts in the United States. Beginning with July 1974, the figures exclude and individual retirement bonds. non-interest-bearing notes issued to the International Monetary Fund. 2 These nonmarketable bonds, also known as Investment Series B 7 Includes savings and loan associations, nonprofit institutions, cor Bonds, may be exchanged (or converted) at the owner’s option for ll/t porate pension trust funds, dealers and brokers, certain government percent, 5-year marketable Treasury notes. Convertible bonds that have deposit accounts, and government sponsored agencies. been so exchanged are removed from this category and recorded in the 8 Includes a nonmarketable Federal Reserve special certificate for $2.6 notes category above. billion. 3 Nonmarketable dollar-denominated and foreign currency denomin ated series held by foreigners. Note. Gross public debt excludes guaranteed agency securities and, 4 Held almost entirely by U.S. government agencies and trust funds. beginning in July 1974, includes Federal Financing Bank security issues. 5 Data for Federal Reserve Banks and U.S. government agencies and Data by type of security from Monthly Statement of the Public Debt of trust funds are actual holdings; data for other groups are Treasury the United States (U.S. Treasury Department); data by holder from estimates. Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A33 1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1979 1979 Type of holder 1977 1978 1977 1978 Jan. Feb. Jan. Feb. All maturities 1 to 5 years 1 459,927 487,546 496,529 497,976 151,264 162,886 168,879 169,352 2 U.S. government agencies and trust funds............................. 14,420 12,695 12,694 12,693 4,788 3,310 3,310 2,710 3 Federal Reserve Banks................................................................. 101,191 109,616 101,279 103,486 27,012 31,283 31,577 34,208 4 Private investors............................................................................. 344,315 365,235 382,556 381,797 119,464 128,293 133,992 132,435 5 75,363 68,890 67,445 68,344 38,691 38,390 38,191 38,252 6 4,379 3,499 3,457 3,408 2,112 1,918 1,905 1,752 7 12,378 11,635 11,838 11,844 4,729 4,664 4,764 5,033 8 9,474 8,272 8,700 9,048 3,183 3,635 3,667 3,112 9 4,817 3,835 3,983 3,923 2,368 2,255 2,279 2,149 10 15,495 18,815 18,418 18,589 3,875 3,997 3,906 3,791 11 All others.................................................................................... 222,409 250,288 268,716 266,641 64,505 73,433 79,281 78,246 Total, within 1 year 5 to 10 years 12 All holders....................................................................................... 230,691 228,516 230,075 233,525 45,328 50,400 50,396 45,163 13 U.S. government agencies and trust funds............................. 1,906 1,488 1,488 2,088 2,129 1,989 1,989 1,989 14 Federal Reserve Banks................................................................. 56,702 52,801 44,310 45,835 10,404 14,809 14,717 11,875 15 Private investors............................................................................ 172,084 174,227 184,277 185,602 32,795 33,601 33,690 31,299 16 29,477 20,608 19,284 20,220 6,162 7,490 7,508 7,299 17 1,400 817 778 820 584 496 496 450 18 Insurance companies................................................................ 2,398 1,838 1,856 1,962 3,204 2,899 2,962 2,571 19 Nonfinancial corporations....................................................... 5,770 4,048 4,385 5,249 307 369 345 320 20 2,236 1,414 1,537 1,608 143 89 90 89 21 7,917 8,194 7,801 8,009 1,283 1,588 1,605 1,511 22 All others.................................................................................... 122,885 137,309 148,637 147,735 21,112 20,671 20,683 19,058 Bills, within 1 year 10 to 20 years 23 All holders....................................................................................... 161,081 161,747 162,286 162,416 12,906 19,800 21,234 21,190 24 U.S. government agencies and trust funds............................. 32 2 2 1 3,102 3,876 3,876 3,876 25 Federal Reserve Banks................................................................. 42,004 42,397 33,959 35,467 1,510 2,088 2,077 2,119 26 Private investors............................................................................. 119,035 119,348 138,325 126,948 8,295 13,836 15,282 15,195 27 Commercial banks.................................................................... 11,996 5,707 4,490 4,877 456 956 1,117 1,045 28 484 150 123 100 137 143 153 153 29 Insurance companies................................................................. 1,187 753 770 695 1,245 1,460 1,478 1,478 30 4,329 1,792 2,123 2,522 133 86 159 160 31 Savings and loan associations................................................. 806 262 303 294 54 60 61 61 32 State and local governments................................................... 6,092 5,524 5,161 5,133 890 1,420 1,459 1,587 33 All others.................................................................................... 94,152 105,161 115,354 113,326 5,380 9,711 10,855 10,712 Other, within 1 year Over 20 years 69,610 66,769 67,789 71,109 19,738 25,944 25,944 28,746 35 U.S. government agencies and trust funds............................. 1,874 1,487 1,487 2,087 2,495 2,031 2,031 2,030 36 Federal Reserve Banks................................................................. 14,698 10,404 10,350 10,368 5,564 8,635 8,599 9,449 37 Private investors............................................................................ 53,039 54,879 55,952 58,654 11,679 15,278 15,315 17,267 38 Commercial banks.................................................................... 15,482 14,901 14,794 15,343 578 1,446 1,346 1,528 39 Mutual savings banks............................................................... 916 667 655 720 146 126 125 133 40 Insurance companies................................................................. 1,211 1,084 1,086 1,267 802 774 777 800 41 Nonfinancial corporations....................................................... 1,441 2,256 2,262 2,727 81 135 144 208 42 Savings and loan associations................................................. 1,430 1,152 1,234 1,313 16 17 16 16 43 State and local governments................................................... 1,825 2,670 2,640 2,876 1,530 3,616 3,647 3,692 44 All others.................................................................................... 28,733 32,149 "33,282 34,409 8,526 9,164 9,260 10,890 Note. Direct public issues only. Based on Treasury Survey of Owner (1) 5,461 commercial banks, 463 mutual savings banks, and 728 insurance ship from Treasury Bulletin (U.S. Treasury Department). companies, each about 80 percent; (2) 435 nonfinancial corporations and Data complete for U.S. government agencies and trust funds and 485 savings and loan associations, each about 50 percent; and (3) 491 Federal Reserve Banks, but data for other groups include only holdings state and local governments, about 40 percent. of those institutions that report. The following figures show, for each “All others,” a residual, includes holdings of all those not reporting category, the number and proportion reporting as of Feb. 28, 1979: in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A34 Domestic Financial Statistics □ May 1979 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value ; averages of daily figures, in millions of dollars 1979 1979, week ending Wednesday 1976 1977 1978 Jan. Feb. Mar. Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 1 U.S. government securities.. . 10,449 10,838 10,285 10,778 11,612 9,882 13,874 13,331 12,677 8,861 11,240 11,664 By maturity 2 Bills............................................ 6,676 6,746 6,173 6,016 6,261 6,204 7,010 7,437 6,330 5,143 5,925 7,116 3 Other within 1 year................ 210 237 392 464 344 320 630 284 261 316 492 344 4 1-5 years.................................. 2,317 2,320 1,889 2,344 2,595 1,744 3,820 3,009 2,422 1,768 2,982 2,191 5 5-10 years................................ 1,019 1,148 965 813 1,185 825 1,102 1,446 1,665 798 849 985 6 Over 10 years........................... 229 388 866 1,140 1,227 789 1,312 1,155 2,000 836 992 1,028 By type of customer 7 U.S. government securities dealers............................... 1,360 1,267 1,135 1,037 1,235 1,170 1,361 1,267 1,283 989 1,360 1,505 8 U.S. government securities brokers............................. 3,407 3,709 3,838 4,526 4,750 3,651 5,900 5,845 5,182 3,483 4,323 4,322 9 Commercial banks................. 2,426 2,295 1,804 1,599 1,764 1,565 2,031 2,196 1,758 1,270 1,731 1,880 10 All others1............................... 3,257 3,568 3,508 3,616 3,863 3,496 4,582 4,023 4,455 3,119 3,826 3,957 11 Federal agency securities.... 1,548 1,729 1,894 2,477 2,351 2,099 3,016 2,383 2,185 2,235 2,544 2,466 1 Includes, among others, all other dealers and brokers in commodities Transactions are market purchases and sales of U.S. government and securities, foreign banking agencies, and the Federal Reserve System. securities dealers reporting to the Federal Reserve Bank of New York. The figures exclude allotments of, and exchanges for, new U.S. government Note. Averages for transactions are based on number of trading days securities, redemptions of called or matured securities, or purchases or in the period. sales of securities under repurchase, reverse repurchase (resale), or similar contracts. 1.4:5 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing Par value; averages of daily figures, in millions of dollars 1979 1979, week ending Wednesday Item 1976 1977 1978 Jan. Feb. Mar. Jan. 10 Jan. 17 Jan. 24 Jan. 31 Feb. 7 Feb. 14 Positions2 1 U.S. government securities... 7,592 5,172 2,656 3,549 3,077 1,849 3,254 3,583 4,144 4,238 4,419 3,639 2 Bills........................................ 6,290 4,772 2,452 3,045 3,060 2,471 2,420 3,143 3,691 3,874 4,382 2,990 3 Other within 1 year........... 188 99 260 239 -72 -262 247 251 282 201 153 77 4 1-5 years.............................. 515 60 -92 115 -355 -471 159 -50 122 158 -60 -426 5 5-10 years................................. 402 92 40 15 152 -20 87 41 -64 -36 71 410 6 Over 10 years....................... 198 149 -4 134 293 131 341 198 113 40 -126 589 7 Federal agency securities.... 729 693 606 609 761 734 379 417 486 1,234 1,220 861 Sources of financing3 8 All sources............................... 8,715 9,877 10,204 13,157 13,370 12,378 11,837 13,141 14,174 14,361 14,174 13,407 Commercial banks 9 New York City....................... 1,896 1,313 599 2,136 2,189 874 1,912 1,881 2,459 2,444 2,376 2,161 10 Outside New York City........ 1,660 1,987 2,174 2,367 2,402 2,453 2,062 2,425 2,367 2,914 2,592 2,318 1,479 2,423 2,370 2,756 2,602 2,748 2,818 2,713 2,824 2,775 2,695 2,535 3,681 4,155 5,052 5,898 6,176 6,304 5,045 6,121 6,525 6,228 6,511 6,392 1 All business corporations except commercial banks and insurance firms and dealer departments of commercial banks against U.S. govern companies. ment and federal agency securities (through both collateral loans and sales 2 New amounts (in terms of par values) of securities owned by nonbank under agreements to repurchase), plus internal funds used by bank dealer dealer firms and dealer departments of commercial banks on a commit departments to finance positions in such securities. Borrowings against ment, that is, trade-date basis, including any such securities that have securities held under agreement to resell are excluded where the borrowing been sold under agreements to repurchase. The maturities of some re contract and the agreement to resell are equal in amount and maturity, purchase agreements are sufficiently long, however, to suggest that the that is, a matched agreement. securities involved are not available for trading purposes. Securities owned, and hence dealer positions, do not include securities purchased Note. Averages for positions are based on number of trading days under agreements to resell. in the period; those for financing, on the number of calendar days in the 3 Total amounts outstanding of funds borrowed by nonbank dealer period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A35 1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1978 1979 Agency 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. 103,325 109,924 131,982 125,397 127,468 129,139 131,982 129,849 129,865 2 Federal agencies......................................................... 21,896 22,760 23,488 23,139 23,279 23,073 23,488 23,431 23,485 3 Defense Department1.......................................... 1,113 983 868 897 897 - 876 868 864 859 4 Export-import Bank 2 •3........................................ 7,801 8,671 8,711 8,709 8,704 8,392 8,711 8,515 8,499 5 Federal Housing Administration4..................... 575 581 588 601 598 594 588 582 586 6 Government National Mortgage Association participation certificates5............................ 4,120 3,743 3,141 3,166 3,166 3,166 3,141 3,141 3,141 7 Postal Service®....................................................... 2,998 2,431 2,364 2,364 2,364 2,364 2,364 2,364 2,364 8 Tennessee Valley Authority................................ 5,185 6,015 7,460 7,045 7,195 7,325 7,460 7,620 7,690 9 United States Railway Association6................. 104 336 356 357 355 356 356 345 346 10 Federally sponsored agencies.................................. 81,429 87,164 108,494 102,258 104,189 106,066 108,494 106,418 106,380 11 Federal Home Loan Banks................................ 16,811 18,345 27,563 25,025 25,395 26,777 27,563 27,677 28,447 12 Federal Home Loan Mortgage Corporation.. 1,690 1,686 2,262 2,063 2,063 2,062 2,262 2,262 2,461 13 Federal National Mortgage Association......... 30,565 31,890 41,080 38,353 39,776 39,814 41,080 41,917 42,405 14 Federal Land Banks............................................. 17,127 19,118 20,360 20,198 20,360 20,360 20,360 19,275 19,275 15 Federal Intermediate Credit Banks................... 10,494 11,174 11,469 11,555 11,554 11,548 11,469 9,978 8,958 16 Banks for Cooperatives....................................... 4,330 4,434 4,843 4,317 4,264 4,668 4,843 4,392 3,852 17 Student Loan Marketing Association7............. 410 515 915 745 775 835 915 915 980 18 Other........................................................................ 2 2 2 2 2 2 2 2 2 Memo items : 19 Federal Financing Bank debt6*8............................. 28,711 38,580 51,298 48,078 49,212 49,645 51,298 52,154 53,221 Leading to federal and federally sponsored agencies 20 Export-import Bank3............................................... 5,208 5,834 6,898 6,568 6,568 6,568 6,898 6,898 6,898 21 Postal Service6........................................................... 2,748 2,181 2,114 2,114 2,114 2,114 2,114 2,114 2,114 22 Student Loan Marketing Association7................. 410 515 915 745 775 835 915 915 980 23 Tennessee Valley Authority.................................... 3,110 4,190 5,635 5,220 5,370 5,500 5,635 5,795 5,865 24 United States Railway Association6..................... 104 336 356 357 355 356 356 345 346 Other lending9 25 Farmers Home Administration.............................. 10,750 16,095 23,825 22,275 23,050 23,050 23,825 24,445 25,160 26 Rural Electrification Administration.................... 1,415 2,647 4,604 4,192 4,407 4,489 4,604 4,680 4,735 27 Other............................................................................. 4,966 6,782 6,951 6,607 6.573 6,733 6,951 6,962 7,123 1 Consists of mortgages assumed by the Defense Department between 7 Unlike other federally sponsored agencies, the Student Loan 1957 and 1963 under family housing and homeowners assistance programs. Marketing Association may borrow from the Federal Financing Bank 2 Includes participation certificates reclassified as debt beginning (FFB) since its obligations are guaranteed by the Department of Health, Oct. 1, 1976. Education, and Welfare. 3 Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget 8 The FFB, which began operations in 1974, is authorized to purchase thereafter. or sell obligations issued, sold, or guaranteed by other federal agencies. 4 Consists of debentures issued in payment of Federal Housing Ad Since FFB incurs debt solely for the purpose of lending to other agencies, ministration insurance claims. Once issued, these securities may be sold its debt is not included in the main portion of the table in order to avoid privately on the securities market. double counting. 5 Certificates of participation issued prior to fiscal 1969 by the Govern 9 Includes FFB purchases of agency assets and guaranteed loans; ment National Mortgage Association acting as trustee for the Farmers the latter contain loans guaranteed by numerous agencies with the Home Administration; Department of Health, Education, and Welfare; guarantees of any particular agency being generally small. The Farmers Department of Housing and Urban Development; Small Business Ad Home Administration item consists exclusively of agency assets, while the ministration; and the Veterans Administration. Rural Electrification Administration entry contains both agency assets 6 Off-budget. and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A36 Domestic Financial Statistics □ May 1979 1.47 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1978 1979 Type of issue or issuer, 1976 1977 1978 or use Oct. Nov. Jan. Mar. 1 All issues, new and refunding 1............ 35,313 46,769 48,607 3,244 4,328 3,694 2,823 2,589 4,495 Type of issue 2 General obligation.................................. 18,040 18,042 17,854 1,148 1,168 1,698 1,301 934 1,030 3 Revenue.................................................... 17,140 28,655 30,658 2,083 3,152 1,992 1,501 1,651 3,457 4 Housing Assistance Administration 2. 5 U.S. government loans........................ 133 72 95 21 Type of issuer 6 State...................................................................................... 7,054 6,354 6,632 552 343 497 467 580 436 7 Special district and statutory authority........................ 15,304 21,717 24,156 1,616 2,848 2,148 953 1,190 2,873 8 Municipalities, counties, townships, school districts. 12,845 18,623 17,718 1,061 1,129 1,043 1,382 813 1,179 9 Issues for new capital, total............................................. 32,108 36,189 37,629 3,160 4,216 3,379 2,794 2,562 4,484 Use of proceeds 10 Education............................ 4,900 5,076 5,003 314 463 319 483 411 267 11 Transportation................... 2,586 2,951 3,460 422 259 337 248 209 202 12 Utilities and conservation. 9,594 8,119 9,026 831 1,241 705 541 729 1,146 13 Social welfare..................... 6,566 8,274 10,494 1,169 817 1,126 765 791 2,021 14 Industrial aid...................... 483 4,676 3,526 249 323 276 265 171 217 15 Other purposes................... 7,979 7,093 6,120 175 1,113 616 492 251 631 1 Par amounts of long-term issues based on date of sale. Source. Public Securities Association. 2 Only bonds sold pursuant to the 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 1.48 NEW SECURITY ISSUES of Corporations Millions of dollars 1978 Type of issue or issuer, 1976 1977 1978 or use July Aug. Sept. Oct. Nov. Dec. 1 All issues 1................................... 53,488 54,205 45,309 4,226 3,311 3,832 3,685 3,207 4,401 2 Bonds............................................ 42,380 42,193 35,178 3,718 2,529 2,905 2,516 2,481 3,281 Type of offering 3 Public............................................ 26,453 24,186 19,939 2,177 1,497 1,610 1,651 1,608 1,227 4 Private placement....................... 15,927 18,007 15,239 1,541 1,032 1,295 865 873 2,054 Industry group 5 Manufacturing............................ 13,264 12,510 8,839 675 485 823 405 805 1,031 6 Commercial and miscellaneous 4,372 5,887 4,670 417 414 454 487 112 694 7 Transportation........................... 4,387 2,033 1,972 235 115 135 67 96 123 8 Public utility................................ 8,297 8,261 7,112 768 521 912 819 384 383 9 Communication.......................... 2,787 3,059 3,306 326 546 205 290 456 285 10 Real estate and financial........... 9,274 10,438 9,276 1,296 448 375 446 627 765 11 Stocks........................................... 11,108 12,013 10,131 508 782 927 1,169 726 1,120 Type 12 Preferred...................................... 2,803 3,878 2,629 57 157 127 47 149 424 13 Common...................................... 8,305 8,135 7,502 451 625 800 1,122 577 696 Industry group 14 Manufacturing............................ 2,237 1,265 1,219 167 236 148 90 35 42 15 Commercial and miscellaneous 1,183 1,838 1,812 167 110 168 112 111 303 16 Transportation........................... 24 418 263 40 0 12 0 12 113 17 Public utility................................ 6,121 6,058 4,973 31 354 426 800 377 271 18 Communication.......................... 776 1,379 249 27 6 10 0 1 175 19 Real estate and financial........... 771 1,054 1,614 76 75 164 167 190 216 1 Figures, which represent gross proceeds of issues maturing in more companies other than closed-end, intracorporate transactions, and sales to than one year, sold for cash in the United States, are principal amount or foreigners. number of units multiplied by offering price. Excludes offerings of less than $100,000, secondary offerings, undefined or exempted issues as Source. Securities and Exchange Commission. defined in the Securities Act of 1933, employee stock plans, investment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Corporate Finance A37 1.49 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1978 1979 Item 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1............................................ 6,401 6,645 519 463 587 602 648 451 523 2 Redemptions of own shares2............................ 6,027 7,231 673 607 439 545 607 548 646 3 Net sales................................................................. 357 -586 -154 -144 148 57 41 -97 -123 4 Assets3.................................................................... 45,049 44,980 48,151 43,462 44,242 44,980 46,591 45,016 47,051 5 Cash position4...................................................... 3,274 4,507 3,703 3,793 4,299 4,507 4,624 4,851 4,746 6 Other....................................................................... 41,775 40,473 44,448 39,669 39,943 40,473 41,967 40,165 42,305 1 Includes reinvestment of investment income dividends. Excludes 4 Also includes all U.S. government securities and other short-term reinvestment of capital gains distributions and share issue of conversions debt securities. from one fund to another in the same group. 2 Excludes share redemption resulting from conversions from one fund Note. Investment Company Institute data based on reports of mem to another in the same group. bers, which comprise substantially all open-end investment companies 3 Market value at end of period, less current liabilities. registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1977 1978 Account 1976 1977 197-8 Q2 Q3 Q4 Q2 Q3 Q4 Q1 1 Profits before tax.......................................................... 155.9 173.9 202.1 175.1 177.5 178.3 172.1 205.5 205.4 225.3 2 Profits tax liability........................................................ 64.3 71.8 83.9 72.3 72.8 73.9 70.0 85.0 86.2 94.5 3 Profits after tax............................................................. 91.6 102.1 118.2 102.8 104.7 104.4 102.1 120.5 119.2 130.8 4 Dividends........................................................................ 37.9 43.7 49.3 42.7 44.1 46.3 47.0 48.1 50.1 51.9 5 Undistributed profits................................................... 53.7 58.4 68.9 60.1 60.6 58.1 55.1 72.4 69.1 78.9 6 Capital consumption allowances............................... 97.1 106.0 114.4 105.0 107.6 109.3 111.3 113.3 115.4 117.5 7 Net cash flow................................................................. 150.8 164.4 183.3 165.1 168.2 167.4 166.4 185.7 184.5 196.4 Source. Survey of Current Business (U.S. Department of Commerce.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A38 Domestic Financial Statistics □ May 1979 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1976 1977 1978 Account 1974 1975 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 734.6 756.3 823.1 842.0 856.4 880.3 900.1 924.2 953.5 992.4 2 Cash.......................................................................... 73.0 80.0 86.8 80.8 83.1 83.4 94.2 88.5 90.9 91.4 3 U.S. government securities................................. 11.3 19.6 26.0 26.8 22.1 21.5 20.9 20.9 19.7 18.6 4 Notes and accounts receivable............................ 265.5 272.1 292.4 304.1 312.8 326.9 325.7 338.3 356.8 377.8 5 Inventories............................................................... 318.9 314.7 341.4 352.1 358.8 367.5 375.0 389.7 399.1 415.5 6 Other........................................................................ 65.9 69.9 76.4 78.3 79.6 81.0 84.3 86.8 87.0 89.0 451.8 446.9 487.5 502.6 509.5 528.9 543.2 570.4 590.8 624.5 8 Notes and accounts payable................................ 272.3 261.2 273.2 280.2 286.8 297.8 306.8 317.2 331.3 349.9 9 Other......................................................................... 179.5 185.7 214.2 222.4 222.7 231.1 236.3 253.2 259.4 274.6 10 Net working capital.................................................... 282.8 309.5 335.6 339.5 346.9 351.4 357.0 353.8 362.7 367.9 11 Memo: Current ratio1............................................... 1.626 1.693 1.688 1.675 1.681 1.664 1.657 1.620 1.614 1.589 i Ratio of total current assets to total current liabilities. Source. Federal Trade Commission. Note. For a description of this series see “Working Capital of Non financial Corporations” in the July 1978 Bulletin, pp. 533-37. 1.52 BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1977 1978 1979 Industry 1977 1978 Q3 Q4 Ql Q2 Q3 Q4 Ql Q22 1 All industries................................................................ 135.72 153.60 140.38 138.11 144.25 150.76 155.41 163.96 164.23 167.52 Manufacturing 2 Durable goods industries........................................... 27.75 31.59 29.23 28.19 28.72 31.40 32.25 33.99 34.18 37.09 3 Nondurable goods industries................................... 32.33 35.86 33.79 33.22 32.86 35.80 35.50 39.26 37.78 38.81 Nonmanufacruting 4 Mining........................................................................... 4.49 4.81 4.74 4.50 4.45 4.81 4.99 4.98 5.35 4.89 Transportation: 5 Railroad.................................................................... 2.82 3.33 3.20 2.80 3.35 3.09 3.38 3.49 3.77 3.11 6 Air.............................................................................. 1.63 2.34 1.69 1.76 2.67 2.08 2.20 2.39 3.28 2.36 7 Other.......................................................................... 2.55 2.42 1.96 2.32 2.44 2.23 2.47 2.55 3.01 2.89 Public utilities: 8 Electric...................................................................... 21.57 24.71 21.90 22.05 23.15 23.83 24.92 26.95 27.06 26.92 9 Gas and other......................................................... 4.21 4.72 4.32 4.18 4.78 4.62 4.70 4.78 5.24 4.98 1 1 1 0 C Co o m m m m e u r n c i i c a a l t a io n n d . . o ... t . h ... e .. r .. 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 2 5 . . 9 4 5 3 2 1 5 8 . . 6 1 7 5 2 1 3 6 . . 1 4 4 0 2 1 3 5 . . 2 8 7 2 2 1 4 7 . . 7 0 6 7 2 1 4 8 . . 7 1 1 8 2 1 6 8 . . 0 9 9 0 2 1 7 8 . . 1 4 2 6 I AA *A tO. *rO 1 Includes trade, service, construction, finance, and insurance. agriculture; real estate operators; medical, legal, educational, and cultural 2 Anticipated by business. service; and nonprofit organizations. Note. Estimates for corporate and noncorporate business, excluding Source. Survey of Current Business (U.S. Dept, of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Corporate Finance A39 1.521 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1977 1978 Account 1973 1974 1975 1976 Q3 Q4 Ql Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer................................................................. 35.4 36.1 36.0 38.6 42.3 44.0 44.5 47.1 49.7 52.6 2 Business.................................................................... 32.3 37.2 39.3 44.7 50.6 55.2 57.6 59.5 58.3 63.3 3 Total...................................................................... 67.7 73.3 75.3 83.4 92.9 99.2 102.1 106.6 108.0 116.0 4 Less: Reserves for unearned income and losses 8.4 9.0 9.4 10.5 11.7 12.7 12.8 14.1 14.3 15.6 5 Accounts receivable, net........................................... 59.3 64.2 65.9 72.9 81.2 86.5 89.3 92.6 93.7 100.4 6 Cash and bank deposits............................................ 2.6 3.0 2.9 2.6 2.5 2.6 2.2 2.9 2.7 3.5 7 Securities....................................................................... .8 .4 1.0 1.1 1.8 .9 1.2 1.3 1.8 1.3 8 All other........................................................................ 10.6 12.0 11.8 12.6 14.2 14.3 15.0 16.2 17.1 17.3 9 Total assets................................................................... 73.2 79.6 81.6 89.2 99.6 104.3 107.7 112.9 115.3 122.4 LIABILITIES 10 Bank loans.................................................................... 7.2 9.7 8.0 6.3 5.4 5.9 5.8 5.4 5.4 6.5 11 Commercial paper...................................................... 19.7 20.7 22.2 23.7 25.7 29.6 29.9 31.3 29.3 34.5 Debt: 12 Short-term, n.e.c..................................................... 4.6 4.9 4.5 5.4 5.4 6.2 5.3 6.6 6.8 8.1 13 Long-term, n.e.c...................................................... 24.6 26.5 27.6 32.3 34.8 36.0 38.0 40.1 41.3 43.6 14 Other.......................................................................... 5.6 5.5 6.8 8.1 13.7 11.5 12.9 13.6 15.2 12.6 15 Capital, surplus, and undivided profits................. 11.5 12.4 12.5 13.4 14.6 15.1 15.7 16.0 17.3 17.2 16 Total liabilities and capital........................................ 73.2 79.6 81.6 89.2 99.6 104.3 107.7 112.9 115.3 122.4 Note. Components may not add to totals due to rounding. 1.522 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments Accounts receivable receivable Type outstand ing Feb. 28, 1978 1979 1978 1979 1978 1979 19791 Dec. Jan. Feb. Dec. Jan. Feb. Dec. Jan. Feb. 1 Total........................................................................ 65,248 1,271 860 756 17,680 16,160 16,858 16,409 15,300 16,102 2 Retail automotive (commercial vehicles)........ 14,681 245 145 183 1,308 1,231 1,283 1,063 1,086 1,100 3 Wholesale automotive......................................... 14,493 551 1,156 655 6,967 6,723 7,080 6,416 5,567 6,425 4 Retail paper on business, industrial, and farm equipment............................................ 16,162 20 -425 -84 1,790 1,012 1,123 1,770 1,437 1,207 6 5 L Fa o c a t n o s r e o d n c c o o m m m m e e r r c c i i a a l l a a c c c c o o u u n n t t s s r r e e c c e e i i v v a a b b l l e e . . . . . . . } 6,693 { ( 26 3 2 2 } 27 -108 X ( 4 1 , , 1 5 1 5 0 0 } 5,261 5,375 j f 3 1 , , 8 5 4 1 8 8 \| 5,234 5,483 7 All other business credit.................................... 13,219 161 -43 110 1,955 1,933 1,997 1,794 1,976 1,887 1 Not seasonally adjusted. 2 Beginning January 1979 the categories “Loans on commercial ac counts receivable” and “Factored commercial accounts receivable” are combined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A40 Domestic Financial Statistics □ May 1979 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1978 1979 Item 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 48.4 54.3 62.6 66.8 65.1 68.1 71.9 68.3 68.1 2 Amount of loan (thous. dollars)........................ 35.9 40.5 45.9 48.6 47.5 49.6 52.0 49.5 49.9 74.2 76.3 75.3 74.4 74.4 75.1 74.7 74.5 75.4 4 Maturity (years).................................................... 27.2 27.9 28.0 28.0 27.9 28.1 28.6 28.6 28.5 5 Fees and charges (percent of loan amount)2... 1.44 1.33 1.39 1.37 1.40 1.49 1.56 1.56 1.63 6 Contract rate (percent per annum).................. 8.76 8.80 9.30 9.60 9.63 9.76 9.92 9.94 10.02 Yield (percent per annum) 7 FHLBB series 3....................................................... 8.99 9.01 9.54 9.83 9.87 10.02 10.18 10.20 10.30 8 HUD series4........................................................... 8.99 8.95 9.68 9.95 10.10 10.30 10.30 10.35 10.35 SECONDARY MARKETS Yields (percent per annum) 8.82 8.68 9.70 9.93 9.99 10.16 10.17 10.17 10.19 8.17 8.04 8.98 9.25 9.39 9.54 9.67 9.67 9.70 FNMA auctions7 8.99 8.73 9.77 10.03 10.30 10.50 10.70 10.54 10.54 9.11 8.98 10.01 10.19 10.56 10.85 11.07 11.04 10.94 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total.............................................................. 32,904 34,370 43,311 41,957 42,590 43,311 44,329 45,155 46,140 14 FHA-insured.............................................. 18,916 18,457 21,243 20,625 20,929 21,243 21,704 21,967 22,601 15 VA-guaranteed.......................................... 9,212 9,315 10,544 10,565 10,535 10,544 10,578 10,606 10,616 16 Conventional.............................................. 4,776 6,597 11,524 10,767 11,126 11,524 12,046 12,582 13,193 Mortgage transactions (during period) 17 Purchases......................................................... 3,606 4,780 12,303 1,053 920 974 1,280 1,173 1,291 18 Sales.................................................................. 86 67 5 0 0 0 0 0 0 Mortgage commitments* 19 Contracted (during period)....................... 6,247 9,729 18,960 1,900 1,275 1,051 479 388 565 20 Outstanding (end of period)....................... 3,398 4,698 9,201 9,547 9,525 9,201 8,161 7,381 6,573 Auction of 4-month commitments to buy— Government-underwritten loans 21 Offered9....................................................... 4,929.8 7.974.1 12,978 1.964.8 788.0 627.0 304.9 210.6 508 22 Accepted..................................................... 2.787.2 4.846.2 6,747.2 832.4 321.8 319.6 155.4 161.2 284.4 Conventional loans 23 Offered9....................................................... 2,595.7 5.675.2 9,933.0 1.156.8 861.4 417.4 113.5 63.0 144.9 24 Accepted.............................................. • •. 1.879.2 3,917.8 5,110.9 495.6 386.8 220.9 58.1 45.4 113.5 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total................................................................. 4,269 3,276 3,064 2,867 3,022 3,064 3,263 3,207 3,510 26 FHA/VA..................................................... 1,618 1,395 1,243 1,594 1,257 1,243 1,231 1,220 1,260 27 Conventional............................................. 2,651 1,881 1,822 1,273 1,766 1,822 2,033 1,989 2,250 Mortgage transactions (during period) 2 2 8 9 P S u al r e c s h .. a .. s .. e .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 , , 1 3 7 9 5 6 4 3 , , 1 9 3 0 1 0 6 6, , 2 5 1 2 1 4 7 3 9 6 1 9 7 58 6 1 3 5 5 9 4 6 0 4 3 9 1 8 7 r4 3 9 0 4 0 3 1 5 16 0 Mortgage commitments11 30 Contracted (during period)........................ 1,477 5,546 7,451 547 706 455 374 357 547 31 Outstanding (end of period)....................... 333 1,063 1,410 1,716 1,617 1,410 1,248 1,177 1,342 1 Weighted averages based on sample surveys of mortgages originated securities, assuming prepayment in 12 years on pools of 30-year FHA/VA by major institutional lender groups. Compiled by the Federal Home mortgages carrying the prevailing ceiling rate. Monthly figures are Loan Bank Board in cooperation with the Federal Deposit Insurance unweighted averages of Monday quotations for the month. Corporation. 7 Average gross yields (before deduction of 38 basis points for mortgage 2 Includes all fees, commissions, discounts, and “points” paid (by the servicing) on accepted bids in Federal National Mortgage Association’s borrower or the seller) in order to obtain a loan. auctions of 4-month commitments to purchase home mortgages, assuming 3 Average effective interest rates on loans closed, assuming prepay prepayment in 12 years for 30-year mortgages. No adjustments are made ment at the end of 10 years. for FNMA commitment fees or stock related requirements. Monthly 4 Average contract rates on new commitments for conventional first figures are unweighted averages for auctions conducted within the month. mortgages, rounded to the nearest 5 basis points; from Dept, of Housing 8 Includes some multifamily and nonprofit hospital loan commitments and Urban Development. in addition to 1- to 4-family loan commitments accepted in FNMA’s 5 Average gross yields on 30-year, minimum-downpayment, Federal free market auction system, and through the FNMA-GNMA tandem Housing Administration-insured first mortgages for immediate delivery plans. in the private secondary market. Any gaps in data are due to periods of 9 Mortgage amounts offered by bidders are total bids received. adjustment to changes in maximum permissible contract rates. 10 Includes participations as well as whole loans. 6 Average net yields to investors on Government National Mortgage 11 Includes conventional and government-underwritten loans. Association-guaranteed, mortgage-backed, fully-modified pass-through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Real Estate Debt A41 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1978 Type of holder, and type of property 1974 1975 1976 1977 Ql Q2 Q3 Q4*> 1All holders....................................................... 742,512 801,537 889,327 1,023,505 1,051,908 1,092,451 1,133,122 1,169,522 2 1- to 4-family............................................ 449,371 490,761 556,557 656,566 676,573 706,230 734,097 759,617 3 Multifamily................................................ 99,976 100,601 104,516 111,841 113,915 116,419 119,207 121,928 4 Commercial............................................... 146,877 159,298 171,223 189,274 193,355 198,926 206,045 211,810 5 Farm........................................................... 46,288 50,877 57,031 65,824 68,065 70,876 73,773 76,167 6 Maior financial institutions......................... 542,560 581,193 647,650 745,011 764,614 794,009 822,184 846,788 7 Commercial banks1................................. 132,105 136,186 151,326 178,979 184,423 194,469 205,445 213,845 8 1- to 4-family........................................ 74,758 77,018 86,234 105,115 108,699 115,389 121,911 126,896 9 Multifamily............................................ 7,619 5,915 8,082 9,215 9,387 9,925 10,478 10,906 10 Commercial........................................... 43,679 46,882 50,289 56,898 58,407 60,950 64,386 67,019 11 Farm....................................................... 6,049 6,371 6,721 7,751 7,930 8,205 8,670 9,024 12 Mutual savings banks............................. 74,920 77,249 81,639 88,104 89,800 91,535 93,403 95,044 13 1- to 4-family........................................ 49,213 50,025 53,089 57,637 58,747 59,882 61,104 62,178 14 Multifamily............................................ 12,923 13,792 14,177 15,304 15,598 15,900 16,224 16,509 15 Commercial........................................... 12,722 13,373 14,313 15,110 15,401 15,698 16,019 16,300 16 Farm....................................................... 62 59 60 53 54 55 56 57 17 Savings and loan associations............... 249,301 278,590 323,130 381,163 392,428 407,965 420,971 432,922 18 1- to 4-family........................................ 200,987 223,903 260,895 310,686 320,064 334,164 345,232 355,291 19 Multifamily............................................ 23,808 25,547 28,436 32,513 33,592 34,351 35,446 36,452 20 Commercial........................................... 24,506 29,140 33,799 37,964 38,772 39,450 40,293 41,179 21 Life insurance companies....................... 86,234 89,168 91,555 96,765 97,963 100,040 102,365 104,971 22 1- to 4-family........................................ 19,026 17,590 16,088 14,727 14,476 14,129 14,189 14,550 23 Multifamily............................................ 19,625 19,629 19,178 18,807 18,851 18,745 18,803 19,284 24 Commercial........................................... 41,256 45,196 48,864 54,388 55,426 57,463 59,268 60,782 25 Farm....................................................... 6,327 6,753 7,425 8,843 9,210 9,703 10,105 10,361 26 Federal and related agencies...................... 58,320 66,891 66,753 70,006 72,014 73,991 78,672 82,086 27 Government National Mortgage Assn. 4,846 7,438 4,241 3,660 3,291 3,283 3,560 3,610 28 1- to 4-family........................................ 2,248 4,728 1,970 1,548 948 922 897 910 29 Multifamily............................................ 2,598 2,710 2,271 2,112 2,343 2,361 2,663 2,700 30 Farmers Home Admin............................ 1,432 1,109 1,064 1,353 1,179 618 1,384 1,084 31 1- to 4-family........................................ 759 208 454 626 202 124 460 360 32 Multifamily............................................ 167 215 218 275 408 102 240 188 33 Commercial........................................... 156 190 72 149 218 104 251 197 34 Farm....................................................... 350 496 320 303 351 288 433 339 35 Federal Housing and Veterans admin.. 4,015 4,970 5,150 5,212 5,219 5,225 5,295 5,365 36 1- to 4-family........................................ 2,009 1,990 1,676 1,627 1,585 1,543 1,565 1,587 37 Multifamily............................................ 2,006 2,980 3,474 3,585 3,634 3,682 3,730 3,778 38 Federal National Mortgage Assn......... 29,578 31,824 32,904 34,369 36,029 38,753 41,189 43,311 39 1- to 4-family........................................ 23,778 25,813 26,934 28,504 30,208 32,974 35,437 37,579 40 Multifamily............................................ 5,800 6,011 5,970 5,865 5,821 5,779 5,752 5,732 41 Federal Land Banks................................ 13,863 16,563 19,125 22,136 22,925 23,857 24,758 25,658 42 1- to 4-family........................................ 406 549 601 670 691 727 819 849 43 Farm....................................................... 13,457 16,014 18,524 21,466 22,234 23,130 23,939 24,809 44 Federal Home Loan Mortgage Corp... 4,586 4,987 4,269 3,276 3,371 2,255 2,486 3,058 45 1- to 4-family........................................ 4,217 4,588 3,889 2,738 2,785 1,856 1,994 2,453 46 Multifamily............................................ 369 399 380 538 586 399 492 605 47 Mortgage pools or trusts2........................... 23,799 34,138 49,801 70,289 74,080 78,602 82,153 86,747 48 Government National Mortgage Assn. 11,769 18,257 30,572 44,896 46,357 48,032 50,844 54,347 49 1- to 4-family........................................ 11,249 17,538 29,583 43,555 44,906 46,515 49,276 52,732 50 Multifamily............................................ 520 719 989 1,341 1,451 1,517 1,568 1,615 51 Federal Home Loan Mortgage Corp... 757 1,598 2,671 6,610 7,471 9,423 9,934 10,125 52 1- to 4-family........................................ 608 1,349 2,282 5,621 6,286 7,797 8,358 8,519 53 Multifamily............................................ 149 249 389 989 1,185 1,626 1,576 1,606 54 Farmers Home Admin........................... 11,273 14,283 16,558 18,783 20,252 21,147 1,084 22,275 55 1- to 4-family........................................ 6,782 9,194 10,219 11,379 12,235 12,742 360 13,392 56 Multifamily............................................ 116 295 532 759 732 1,128 188 1,163 57 Commercial........................................... 1,473 1,948 2,440 2,945 3,528 3,301 197 3,510 58 Farm....................................................... 2,902 2,846 3,367 3,682 3,757 3,976 339 4,210 59 Individuals and others3................................ 117,833 119,315 125,123 138,199 141,200 145,849 150,113 153,901 60 1- to 4-family............................................ 53,331 56,268 62,643 72,115 74,741 77,466 80,004 82,321 61 Multifamily................................................ 24,276 22,140 20,420 20,538 20,327 20,904 21,119 21,390 62 Commercial............................................... 23,085 22,569 21,446 21,820 21,603 21,960 22,459 22,823 63 Farm........................................................... 17,141 18,338 20,614 23,726 24,529 25,519 26,531 27,367 1 Includes loans held by nondeposit trust companies but not bank trust Note. Based on data from various institutional and government departments. sources, with some quarters estimated in part by Federal Reserve in 2 Outstanding principal balances of mortgages backing securities in conjunction with the Federal Home Loan Bank Board and the Depart sured or guaranteed by the agency indicated. ment of Commerce. Separation of nonfarm mortgage debt by type of 3 Other holders include mortgage companies, real estate investment property, if not reported directly, and interpolations and extrapolations trusts, state and local credit agencies, state and local retirement funds, where required, are estimated mainly by Federal Reserve. Multifamily noninsured pension funds, credit unions, and U.S. agencies for which debt refers to loans on structures of five or more units. amounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A42 Domestic Financial Statistics □ May 1979 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change A Millions of dollars 1978 1979 Holder, and type of credit 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Amounts outstanding (end of period) 1 Total. 193,977 230,829 275,640 263,387 265,821 269,445 275,640 275,346 275,818 278,347 By major holder 2 Commercial banks......... 93,728 112,373 136,189 131,403 132,702 133,908 136,189 136,452 136,671 137,445 3 Finance companies........ 38,919 44,868 54,309 51,280 51,984 53,099 54,309 55,004 55,728 56,885 4 Credit unions................... 31,169 37,605 45,939 44,325 44,635 45,305 45,939 45,526 45,661 46,301 5 Retailers2......................... 19,260 23,490 24,876 22,302 22,464 23,006 24,876 23,962 23,246 22,929 6 Savings and loans.......... 6,246 7,354 8,394 8,055 8,177 8,291 8,394 8,427 8,488 8,671 7 Gasoline companies 2,830 2,963 3,240 3,416 3,276 3,173 3,240 3,338 3,274 3,292 8 Mutual savings banks.. 1,825 2,176 2,693 2,606 2,583 2,663 2,693 2,637 2,750 2,824 By major type of credit 9 Automobile.................... 67,707 82,911 102,468 99,062 100,159 101,565 102,468 102,890 103,780 105,426 10 Commercial banks. . , 39,621 49,577 60,564 59,085 59,778 60,347 60,564 60,682 61,053 61,742 11 Indirect paper 22,072 27,379 33,850 33,067 33,415 33,709 33,850 33,928 34,261 34,592 12 Direct loans............ 17,549 22,198 26,714 26,018 26,363 26,638 26,714 26,754 26,792 27,150 13 Credit unions............. 15,238 18,099 21,976 21,196 21,344 21,664 21,967 21,769 21,834 22,140 14 Finance companies.., 12,848 15,235 19,937 18,781 19,037 19,554 19,937 20,439 20,893 21,544 15 Revolving....................... 17,189 39,274 47,051 42,420 42,579 43,523 47,051 46,516 45,586 45,240 16 Commercial banks.. 14,359 18,374 24,434 21,935 22,165 22,724 24,434 24,677 24,502 24,442 17 Retailers..................... 17,937 19,377 17,069 17,138 17,626 19,377 18 501 17,810 17 506 18 Gasoline companies. 2,830 2,963 3,240 3,416 3,276 3,173 3,240 3,338 3,274 3,292 19 Mobile home............... 14,573 15,141 16,042 15,910 15,925 16,017 16,042 16,004 16,008 16,092 20 Commercial banks. 8,737 9,124 9,553 9,591 9,548 9,572 9,553 9,511 9,495 9,509 21 Finance companies. 3,263 3,077 3,152 3,114 3,127 3,150 3,152 3,149 3,147 3,148 22 Savings and loans.. 2,241 2,538 2,848 2,733 2,775 2,813 2,848 2,859 2,880 2,942 23 Credit unions.......... 332 402 489 472 475 482 489 485 486 493 24 Other................................... 94,508 93,503 110,079 105,995 107,158 108,340 110,079 109,936 110,444 111,589 25 Commercial banks 31,011 35,298 41,638 40,792 41,211 41,265 41,638 41,582 41,621 41,752 26 Finance companies___ 22,808 26,556 31,220 29,385 29,820 30,395 31,220 31,416 31,688 32,193 27 Credit unions................. 15,599 19,104 23,483 22,657 22,816 23,159 23,483 23,272 23,341 23,668 28 Retailers......................... 19,260 5,553 5,499 5,233 5,326 5,380 5,499 5,461 5,436 5,423 29 Savings and loans........ 4,005 4,816 5,546 5,322 5,402 5,478 5,546 5,568 5,608 5,729 30 Mutual savings banks. 1,825 2,176 2,693 2,606 2,583 2,663 2,693 2,637 2,750 2,824 Ncit change (<3luring perio»d)3 31 Total. 21,647 35,278 45,066 3,680 3,382 4,104 4,400 3,061 3,308 3,731 By major holder 32 Commercial banks 10,792 18,645 24,058 1,714 1,617 1,925 2,080 1,330 1,630 1,465 33 Finance companies.......... 2,946 5,948 9,441 847 863 1,018 1,098 1,341 1,205 1,334 34 Credit unions................... 5,503 6,436 8,334 639 644 779 773 360 402 528 35 Retailers1......................... 1,059 2,654 1,386 328 115 186 196 -90 -221 143 36 Savings and loans.......... 1,085 1,111 1,041 94 127 88 115 67 86 173 37 Gasoline companies 124 132 276 9 16 -1 96 100 68 20 38 Mutual savings banks.., 138 352 530 49 -8 104 42 -47 138 68 By major type of credit 39 Automobile..................... 10,465 15,204 19,557 1,532 1,375 1,755 1,780 1,680 1,565 1,486 40 Commercial banks... 6,334 9,956 10,987 848 759 839 845 633 739 617 41 Indirect paper......... 2,742 5,307 6,471 517 354 440 530 387 530 290 42 Direct loans............ 3,592 4,649 4,516 331 405 399 315 246 209 327 43 Credit unions.............. 2,497 2,861 3,868 313 301 364 391 187 190 245 44 Finance companies.., 1,634 2,387 4,702 371 315 552 544 860 636 624 45 Revolving....................... 2,170 6,248 7,776 622 346 665 869 433 317 742 46 Commercial banks.. 2,046 4,015 6,060 380 337 556 610 375 492 588 47 Retailers..................... 2,101 1,440 233 -7 110 163 -42 -243 134 48 Gasoline companies. 124 132 276 9 16 -1 96 100 68 20 49 Mobile home............... 140 565 897 72 25 75 71 40 56 108 50 Commercial banks. 70 387 426 31 -25 19 21 12 15 31 51 Finance companies. -182 -189 74 6 -2 15 11 7 9 11 52 Savings and loans.. 192 297 310 27 46 34 30 19 28 59 53 Credit unions.......... 60 70 87 8 6 7 9 2 4 7 54 Other................................... 8,872 13,261 16,836 1,454 1,636 1,609 1,680 908 1,370 1,395 55 Commercial banks 2,342 4,287 6,585 455 554 516 604 310 384 229 56 Finance companies___ 1,494 3,750 4,665 470 550 451 543 474 560 699 57 Credit unions................ 2,946 3,505 4,379 318 337 408 373 171 208 276 58 Retailers......................... 1,059 553 -54 95 122 76 33 -48 22 9 59 Savings and loans........ 893 814 731 67 81 54 85 48 58 114 60 Mutual savings banks. 138 352 530 49 -8 104 42 -47 138 68 1 The Board’s series cover most short- and intermediate-term credit Note. Total consumer noninstallment credit outstanding—credit extended to individuals through regular business channels, usually to scheduled to be repaid in a lump sum, including single-payment loans, finance the purchase of consumer goods and services or to refinance charge accounts, and service credit—amounted to $64.3 billion at the end debts incurred for such purposes, and scheduled to be repaid (or with of 1978, $58.6 billion at the end of 1977, $54.8 billion at the end of 1976, the option of repayment) in two or more installments. and $50.9 billion at the end of 1975. Comparable data for Dec. 31, 1979 2 Includes auto dealers and excludes 30-day charge credit held by will be published in the February 1980 Bulletin. travel and entertainment companies. A Consumer installment credit series have been revised from 1943. 3 Net change equals extensions minus liquidations (repayments, charge- effective Dec. 7, 1978. Information is available from Mortgage and offs, and other credits); figures for all months are seasonally adjusted. Consumer Finance Section, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Consumer Debt A43 1.56 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations A Millions of dollars 1978 1979 Holder, and type of credit 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Extensions2 1Total......................................................... 211,028 254,071 298,574 25,537 25,766 26,219 26,500 25,544 26,202 26,698 By major holder 2 Commercial banks................................ 97,397 117,896 142,965 12,123 12,190 12,481 12,521 12,153 12,430 12,412 3 Finance companies................................ 36,129 41,989 50,483 4,372 4,605 4,512 4,679 4,547 4,822 5,123 4 Credit unions.......................................... 29,259 34,028 40,023 3,360 3,401 3,530 3,526 3,241 3,238 3,250 5 Retailers1................................................. 29,447 39,133 41,619 3,718 3,518 3,571 3,612 3,565 3,460 3,611 6 Savings and loans.................................. 3,898 4,485 5,050 403 566 489 516 481 468 583 7 Gasoline companies.............................. 13,387 14,617 16,125 1,346 1,335 1,376 1,451 1,440 1,486 1,493 8 Mutual savings banks........................... 1,511 1,923 2,309 215 151 260 195 117 298 226 By major type of credit 9 Automobile............................................. 63,743 75,641 88,986 7,542 7,501 7,787 7,833 7,545 7,756 7,797 10 Commercial banks............................ 37,886 46,363 53,028 4,479 4,345 4,503 4,443 4,286 4,430 4,424 11 Indirect paper................................ 20,576 25,149 29,336 2,519 2,384 2,422 2,451 2,318 2,472 2,449 12 Direct loans.................................... 17,310 21,214 23,692 1,960 1,961 2,081 1,992 1,968 1,958 1,975 13 Credit unions...................................... 14,688 16,616 19,486 1,641 1,643 1,718 1,738 1,635 1,624 1,587 14 Finance companies........................... 11,169 12,662 16,472 1,422 1,513 1,566 1,652 1,624 1,702 1,786 15 Revolving................................................ 43,934 86,756 104,587 9,006 8,846 9,176 9,424 9,417 9,357 9,714 16 Commercial banks............................ 30,547 38,256 51,531 4,457 4,475 4,702 4,814 4,799 4,860 5,024 17 Retailers.............................................. 33,883 36,931 3,203 3,036 3,098 3,159 3,178 3,011 3,197 18 Gasoline companies.......................... 13,387 14,617 16,125 1,346 1,335 1,376 1,451 1,440 1,486 1,493 19 Mobile home.......................................... 4,859 5,425 6,067 494 604 486 502 369 454 516 20 Commercial banks............................ 3,064 3,466 3,704 297 352 280 295 235 295 296 21 Finance companies........................... 702 643 886 77 73 77 74 33 60 61 22 Savings and loans.............................. 929 1,120 1,239 100 154 108 111 88 81 139 23 Credit unions...................................... 164 196 238 20 25 21 22 13 18 20 24 Other........................................................ 98,492 86,249 98,934 8,495 8,815 8,870 8,741 8,213 8,635 8,671 25 Commercial banks............................ 25,900 29,811 34,702 2,890 3,018 2,996 2,969 2,833 2,845 2,668 26 Finance companies........................... 24,258 28,684 33,125 2,873 3,019 2,869 2,953 2,890 3,060 3,276 27 Credit unions...................................... 14,407 17,216 20,299 1,699 1,733 1,791 1,766 1,593 1,596 1,643 28 Retailers............................................... 29,447 5,250 4,688 515 482 473 453 387 449 414 29 Savings and loans.............................. 2,969 3,365 3,811 303 412 381 405 393 387 444 30 Mutual savings banks....................... 1,511 1,923 2,309 215 151 260 195 117 298 226 Liquidations2 31 Total......................................................... 189,381' 218,793 253,508 21,857 22,384 22,115 22,100 22,483 22,894 22,967 By major holder 32 Commercial banks................................ 86,605 99,251 118,907 10,409 10,565 10,551 10,441 10,823 10,800 10,947 33 Finance companies................................ 33,183 36,041 41,042 3,525 3,742 3,494 3,581 3,206 3,617 3,789 34 Credit unions.......................................... 23,756 27,592 31,689 2,721 2,757 2,751 2,753 2,881 2,836 2,722 35 Retailers1................................................. 28,388 36,479 40,233 3,390 3,403 3,385 3,416 3,655 3,681 3,468 36 Savings and loans.................................. 2,813 3,374 4,009 309 439 401 401 414 382 410 37 Gasoline companies.............................. 13,263 14,485 15,849 1,337 1,319 1,377 1,355 1,340 1,418 1,473 38 Mutual savings banks........................... 1,373 1,571 1,779 166 159 156 153 164 160 158 By major type of credit 39 Automobile............................................. 53,278 60,437 69,429 6,010 6,126 6,032 6,053 5,865 6,191 6,311 40 Commercial banks............................ 31,552 36,407 42,041 3,631 3,586 3,664 3,598 3,653 3,691 3,807 41 Indirect paper................................ 17,834 19,842 22,865 2,002 2,030 1,982 1,921 1,931 1,942 2,159 42 Direct loans.................................... 13,718 16,565 19,176 1,629 1,556 1,682 1,677 1,722 1,749 1,648 43 Credit unions...................................... 12,191 13,755 15,618 1,328 1,342 1,354 1,347 1,448 1,434 1,342 44 Finance companies........................... 9,535 10,275 11,770 1,051 1,198 1,014 1,108 764 1,066 1,162 45 Revolving................................................ 41,764 80,508 96,811 8,384 8,500 8,511 8,555 8,984 9,040 8,972 46 Commercial banks............................ 28,501 34,241 45,471 4,077 4,138 4,146 4,204 4,424 4,368 4,436 47 Retailers.............................................. 31,782 35,491 2,970 3,043 2,988 2,996 3,220 3,254 3,063 48 Gasoline companies.......................... i3,263 14,485 15,849 1,337 1,319 1,377 1,355 1,340 1,418 1,473 49 Mobile home.......................................... 4,719 4,860 5,170 422 579 411 431 329 398 408 50 Commercial banks............................ 2,994 3,079 3,278 266 377 261 274 223 280 265 51 Finance companies........................... 884 832 812 71 75 62 63 26 51 50 52 Savings and loans.............................. 737 823 929 73 108 74 81 69 53 80 53 Credit unions...................................... 104 126 151 12 19 14 13 11 14 13 54 Other........................................................ 89,620 72,988 82,098 7,041 7,179 7,161 7,061 7,305 7,265 7,276 55 Commercial banks............................ 23,558 25,524 28,117 2,435 2,464 2,480 2,365 2,523 2,461 2,439 56 Finance companies........................... 22,764 24,934 28,460 2,403 2,469 2,418 2,410 2,416 2,500 2,577 57 Credit unions...................................... 11,461 13,711 15,920 1,381 1,396 1,383 1,393 1,422 1,388 1,367 58 Retailers.............................................. 28,388 4,697 4,742 420 360 397 420 435 427 405 59 Savings and loans.............................. 2,076 2,551 3,080 236 331 327 320 345 329 330 60 Mutual savings banks....................... 1,373 1,571 1,779 166 159 156 153 164 160 158 1 Includes auto dealers and excludes 30-day charge credit held by A Consumer installment credit series have been revised from 1943, travel and entertainment companies. effective Dec. 7, 1978. Information is available from Mortgage and Con- 2 Monthly figures are seasonally adjusted. sumer Finance Section, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A44 Domestic Financial Statistics □ May 1979 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1976 1977 1978 Transaction category, or sector 1973 1974 1975 1976 1977 1978 HI H2 HI H2 HI H2 Nonfinancial sectors 1 Total funds raised............................................ 203.8 188.8 208.1 272.5 340.5 389.4 259.6 285.6 302.2 378.9 378.2 400.7 2 Excluding equities....................................... 196.1 184.9 198.0 261.7 337.4 387.4 245.9 277.5 301.0 373.8 376.8 398.0 By sector and instrument 3 U.S. government.......................................... 8.3 11.8 85.4 69.0 56.8 53.7 73.5 64.5 42.6 71.0 58.7 48.6 4 Public debt securities.............................. 7.9 12.0 85.8 69.1 57.6 55.1 73.4 64.9 43.1 72.2 59.7 50.5 5 Agency issues and mortgages............... .4 -.2 -.4 -.1 -.9 -1.4 .1 -.3 -.6 -1.2 -.9 -1.9 6 All other nonfinancial sectors..................... 195.5 177.0 122.7 203.5 283.8 335.8 186.0 221.0 259.6 307.9 319.4 352.1 7 Corporate equities................................... 7.7 3.8 10.1 10.8 3.1 2.1 13.6 8.1 1.2 5.1 1.4 2.7 8 Debt instruments..................................... 187.9 173.1 112.6 192.6 280.6 333.7 172.4 213.0 258.5 302.8 318.0 349.3 9 Private domestic nonfinancial sectors. . 189.3 161.6 109.5 182.8 271.4 310.1 168.5 197.2 252.1 290.7 302.2 318.0 10 Corporate equities.............................. 7.9 4.1 9.9 10.5 2.7 2.6 13.3 7.7 .5 4.9 2.2 3.0 11 Debt instruments................................ 181.4 157.5 99.6 172.3 268.7 307.5 155.2 189.5 251.6 285.8 300.0 314.9 1:2 Debt capital instruments............... 105.0 98.0 97.8 126.8 181.1 194.8 117.8 135.9 163.4 198.9 185.6 204.0 13 State and local obligations.... 14.7 16.5 15.6 19.0 29.2 29.6 19.3 18.7 29.3 29.0 28.5 30.8 14 Corporate bonds......................... 9.2 19.7 27.2 22.8 21.0 20.1 22.2 23.5 16.0 26.0 19.0 21.2 Mortgages 15 Home......................................... 46.4 34.8 39.5 63.7 96.4 101.4 56.9 70.5 88.5 104.2 99.3 103.6 16 Multifamily residential........ 10.4 6.9 * 1.8 7.4 10.1 .6 3.1 6.4 8.4 9.2 11.1 17 Commercial.............................. 18.9 15.1 11.0 13.4 18.4 23.1 13.8 12.9 14.2 22.6 20.3 26.0 18 Farm.......................................... 5.5 5.0 4.6 6.1 8.8 10.3 4.9 7.3 8.9 8.7 9.3 11.4 19 Other debt instruments................. 76.4 59.6 1.8 45.5 87.6 112.7 37.4 53.6 88.2 86.9 114.5 110.9 20 Consumer credit......................... 23.8 10.2 9.4 23.6 35.0 50.5 22.9 24.3 35.7 34.4 49.8 51.3 21 Bank loans n.e.c.......................... 39.8 29.0 -14.0 3.5 30.6 37.1 -2.7 9.6 34.0 27.2 41.4 32.7 22 Open market paper..................... 2.5 6.6 -2.6 4.0 2.9 4.9 5.6 2.4 3.5 2.4 5.2 4.5 23 Other.............................................. 10.3 13.7 9.0 14.4 19.0 20.2 11.6 17.3 15.0 23.0 18.0 22.4 24 By borrowing sector........................... 189.3 161.6 109.5 182.8 271.4 310.1 168.5 197.2 252.1 290.7 302.2 318.0 25 State and local governments......... 13.2 15.5 13.2 18.5 25.9 24.9 17.6 19.5 22.7 29.0 21.7 28.1 26 Households....................................... 80.9 49.2 48.6 89.9 139.6 161 .3 82.7 97.1 131.2 148.0 155.0 167.5 27 Farm................................................... 9.7 7.9 8.7 11.0 14.7 17.2 9.9 12.1 15.5 13.8 14.6 19.9 28 Nonfarm noncorporate................. 12.8 7.4 2.0 5.2 12.6 17,2 4.0 6.4 12.8 12.3 20.3 14.2 29 Corporate.......................................... 72.7 81.8 37.0 58.2 78.7 89.5 54.3 62.2 69.8 87.6 90.6 88.2 30 Foreign....................................................... 6.2 15.3 13.2 20.7 12.3 25.7 17.5 23.8 7.5 17.2 17.2 34.1 31 Corporate equities............................... -.2 -.2 .2 .3 .4 -.5 .3 .3 .6 .2 -.8 -.3 32. Debt instruments................................ 6.4 15.6 13.0 20.4 11.9 26.2 17.2 23.5 6.9 17.0 18.0 34.4 33 Bonds................................................. 1.0 2.1 6.2 8.5 5.0 4.3 7.4 9.7 4.4 5.6 4.9 3.7 34 Bank loans n.e.c.............................. 2.8 4.7 3.7 6.6 1.6 12.0 5.4 7.9 -3.2 6.4 6.2 17.7 35 Open market paper......................... .9 7.3 .3 1.9 2.4 6.6 1.5 2.4 2.7 2.2 3.6 9.6 36 U.S. government loans. . .*.......... 1.7 1.5 2.8 3.3 3.0 3.3 2.9 3.6 3.1 2.9 3.3 3.4 Financial sectors 37 Total funds raised............................................ 57.6 36.4 11.7 29.2 58.8 93.8 27.9 30.5 61.5 56.2 102.9 84.6 By instrument 38 U.S. government related............................ 19.9 23.1 13.5 18.6 26.3 39.0 18.2 19.0 25.0 27.5 41.5 36.5 39 Sponsored credit agency securities.... 16.3 16.6 2.3 3.3 7.0 22.6 4.1 2.6 9.5 4.4 24.9 20.2 40 Mortgage pool securities....................... 3.6 5.8 10.3 15.7 20.5 16.5 14.2 17.2 17.9 23.1 16.6 16.3 41 Loans from U.S. government............. .7 .9 -.4 -1.2 * - .7 - 2.3 0 0 0 42 Private financial sectors.............................. 37.7 13.3 -1.9 10.6 32.6 54.7 9.7 11.5 36.5 28.7 61.4 48.0 43 Corporate equities.............................. 1.5 .3 .6 1.0 .6 1.1 -.2 2.3 .5 .7 1.1 1.0 44 Debt instruments..................................... 36.2 13.0 -2.5 9.6 32.0 53.7 10.0 9.2 36.0 28.0 60.3 47.0 45 Corporate bonds.................................. 3.5 2.1 2.9 5.8 10.1 7.7 6.4 5.2 10.1 10.1 8.4 6.9 46 Mortgages............................................. -1.2 -1.3 2.3 2.1 3.1 .9 1.5 2.7 3.3 2.9 2.4 -.5 47 Bank loans n.e.c................................... 8.9 4.6 -3.6 -3.7 * 1.2 -2.6 -4.8 -2.3 2.3 .5 1.9 48 Open market paper and RPs........... 17.8 .9 -.1 7.3 14.4 31.3 6.2 8.5 21.4 7.4 34.9 27.8 49 Loans from FHLBs............................ 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.5 -2.5 3.4 5.2 14.1 10.9 By sector 57.6 36.4 11.7 29.2 58.8 93.8 27.9 30.5 61.5 56.2 102.9 84.6 50 Sponsored credit agencies......................... 16.3 17.3 3.2 2.9 5.8 22.6 4.0 1.8 7.1 4.4 24.9 20.2 51 Mortgage pools............................................ 3.6 5.8 10.3 15.7 20.5 16.5 14.2 17.2 17.9 23.1 16.6 16.3 52 Private financial sectors.............................. 37.7 13.3 -1.9 10.6 32.6 54.7 9.7 11.5 36.5 28.7 61.4 48.0 53 Commercial banks.................................. 14.1 -5.6 -1.4 7.5 4.8 8.2 9.0 6.0 10.0 -.4 12.2 4.2 54 Bank affiliates........................................... 2.2 3.5 .3 -.8 1.3 4.3 -1.3 -.3 1.3 1.2 5.8 2.8 55 Savings and loan associations.............. 6.0 6.3 -2.2 * 11.9 16.4 .1 -.1 10.6 13.1 19.7 13.1 56 Other insurance companies................... .5 .9 1.0 .9 .9 1.1 .9 .9 .9 1.0 1.0 1.1 57 Finance companies.................................. 9.4 6.0 .6 6.4 16.9 19.7 6.0 6.9 17.4 16.4 18.7 20.6 58 REITs......................................................... 6.5 .6 -1.4 -2.4 -2.4 -1.3 -2.1 -2.7 -2.5 -2.2 -1.3 -1.3 59 Open-end investment companies......... -1.2 -.7 -.1 -1.0 -1.0 -.5 -2.4 .4 -.8 -1.2 — .6 -.4 60 Money market funds.............................. 2.4 1.3 * .2 6.9 -.5 .5 -.5 .9 5.9 8.0 All sectors 61 Total funds raised, by instrument................. 261.4 225.1 219.8 301.7 399.4 483.2 287.5 316.0 363.7 435.0 481.1 485.3 62 Investment company shares...................... -1.2 -.7 -.1 -1.0 -1.0 -.5 -2.4 .4 -.8 -1.2 -.6 -.4 63 Other corporate equities............................ 10.4 4.8 10.8 12.9 4.8 3.6 15.8 9.9 2.5 7.0 3.1 4.2 64 Debt instruments......................................... 252.3 221.0 209.1 289.8 395.6 480.1 274.1 305.7 362.0 429.2 478.6 481.5 65 U.S. government securities.................... 28.3 34.3 98.2 88.1 84.3 92.8 91.9 84.3 70.0 98.6 100.4 85.2 66 State and local obligations.................... 14.7 16.5 15.6 19.0 29.2 29.8 19.3 18.7 29.3 29.0 28.5 30.8 67 Corporate and foreign bonds............... 13.6 23.9 36.4 37.2 36.1 32.1 36.1 38.4 30.5 41.7 32.3 31.8 68 Mortgages................................................. 79.9 60.5 57.2 87.1 134.0 145.9 77.7 96.4 121.2 146.7 140.3 151.5 69 Consumer credit...................................... 23.8 10.2 9.4 23.6 35.0 50.5 22.9 24.3 35.7 34.4 49.8 51.3 70 Bank loans n.e.c....................................... 51.6 38.3 -13.9 6.4 32.2 50.2 .1 12.6 28.4 35.9 48.2 52.2 71 Open market paper and RPs............... 21.2 14.8 -2.4 13.3 19.8 42.8 13.3 13.3 27.6 11.9 43.7 41.9 72 Other loans............................................... 19.1 22.6 8.7 15.3 25.1 36.1 12.9 17.7 19.2 31.0 35.4 36.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Flow of Funds A45 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates. 1976 1977 1978 Transaction category, or sector 1973 1974 1975 1976 1977 1978 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors.................................. 196.1 184.9 198.0 261.7 337.4 387.4 245.9 277.5 301.0 373.8 376.8 398.0 By public agencies and foreign 2 Total net advances.......................................... 34.1 52.6 44.3 54.5 85.4 102.8 49.7 59.3 69.3 101.6 103.5 102.0 3 U.S. government securities...................... 9.5 11.9 22.5 26.8 40.2 43.1 24.4 29.3 27.2 53.2 42.7 43.6 4 Residential mortgages................................ 8.2 14.7 16.2 12.8 20.4 24.6 11.8 13.7 20.0 20.9 23.5 25.7 5 FHLB advances to S&Ls......................... 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.5 -2.5 3.4 5.2 14.1 10.9 6 Other loans and securities.......................... 9.2 19.4 9.5 16.9 20.5 22.6 15.0. 18.8 18.6 22.4 23.3 21.8 Totals advanced, by sector 7 U.S. government......................................... 2.8 9.7 15.1 8.9 11.8 18.3 6.3 11.5 6.1 17.6 19.2 17.4 8 Sponsored credit agencies.......................... 21.4 25.6 14.5 20.6 26.9 44.0 20.0 21.2 26.7 27.2 44.9 43.2 9 Monetary authorities.................................. 9.2 6.2 8.5 9.8 7.1 7.0 13.7 6.0 10.2 4.1 12.9 1.0 10 Foreign............................................................ .6 11.2 6.1 15.2 39.5 33.5 9.7 20.6 26.4 52.7 26.4 40.5 11 Agency borrowing not included in line 1.. 19.9 23.1 13.5 18.6 26.3 39.0 18.2 19.0 25.0 27.5 41.5 36.5 Private domestic funds advanced 12 Total net advances........................................... 182.0 155.3 167.3 225.7 278.2 323.6 214.4 237.1 256.8 299.7 314.8 332.5 13 U.S. government securities...................... 18.8 22.4 75.7 61.3 44.1 49.7 67.5 55.1 42.8 45.4 57.7 41.6 14 State and local obligations........................ 14.7 16.5 15.6 19.0 29.2 29.6 19.3 18.7 29.3 29.0 28.5 30.8 15 Corporate and foreign bonds................... 10.0 20.9 32.8 30.5 22.3 23.4 28.6 32.3 17.2 27.3 22.4 24.3 16 Residential mortgages................................ 48.4 26.9 23.2 52.7 83.2 86.9 45.6 59.7 74.9 91.6 84.9 88.9 17 Other mortgages and loans....................... 97.2 75.4 16.1 60.4 103.7 146.6 51.9 68.9 96.0 111.5 135.4 157.8 18 Less: FHLB advances................................ 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.5 -2.5 3.4 5.2 14.1 10.9 Private financial intermediation 19 Credit market funds advanced by private financial institutions................................ 165.4 126.2 119.9 191.2 249.6 289.6 174.4 207.9 241.1 258.0 283.7 295.5 20 Commercial banking................................... 86.5 64.5 27.6 58.0 85.8 119.2 46.6 69.4 81.1 90.5 120.4 117.9 21 Savings institutions...................................... 36.9 26.9 52.0 71.4 84.8 79.1 70.5 72.4 85.3 84.3 77.2 81.0 22 Insurance and pension funds.................... 23.9 30.0 41.5 51.7 62.0 71.4 53.2 50.2 60.3 63.7 69.4 73.4 23 Other finance................................................. 18.0 4.7 -1.1 10.1 16.9 19.9 4.2 15.9 14.5 19.4 16.6 23.2 24 Sources of funds............................................... 165.4 126.2 119.9 191.2 249.6 289.6 174.4 207.9 241.1 258.0 283.7 295.5 25 Private domestic deposits.......................... 86.6 69.4 90.6 121.5 136.0 124.5 108.3 134.6 127.0 145.0 119.4 129.6 26 Credit market borrowing........................... 36.2 13.0 -2.5 9.6 32.0 53.7 10.0 9.2 36.0 28.0 60.3 47.0 27 Other sources................................................ 42.5 43.8 31.9 60.1 81.6 111.4 56.1 64.1 78.2 85.1 104.0 118.9 28 Foreign funds........................................... 5.8 16.8 .9 5.1 11.6 15.7 .7 9.5 .7 22.4 4.0 27.5 29 Treasury balances.................................... -1.0 -5.1 -1.7 -.1 4.3 9.7 2.3 -2.5 -1.8 10.4 -.7 20.1 30 Insurance and pension reserves........... 18.4 26.0 29.6 34.8 48.0 57.0 35.8 33.8 45.5 50.4 55.9 58.2 31 Other, net................................................... 19.4 6.0 3.1 20.3 17.8 29.0 17.2 23.4 33.7 1.9 44.9 13.1 Private domestic nonfinancial investors 32 Direct lending in credit markets................... 52.8 42.2 44.9 44.1 60.6 87.7 50.0 38.4 51.6 69.6 91.4 84.0 33 U.S. government securities...................... 19.2 17.5 23.0 19.6 24.6 33.1 25.0 14.1 14.1 35.2 36.3 30.0 34 State and local obligations........................ 5.4 9.3 8.3 6.8 9.1 8.8 7.6 6.0 8.2 10.1 10.8 6.8 35 Corporate and foreign bonds................... 1.3 4.7 8.0 2.1 1.1 -.9 2.9 1.3 .4 1.8 -2.6 .8 36 Commercial paper....................................... 18.3 2.4 -.8 4.1 9.5 27.8 4.8 3.4 13.0 6.0 28.8 26.9 37 Other............................................................... 8.6 8.2 6.4 11.5 16.2 18.8 9.7 13.5 15.9 16.5 18.2 19.5 38 Deposits and currency.................................... 90.6 75.7 96.8 128.8 144.3 133.8 114.3 143.3 132.6 156.0 129.5 138.0 39 Time and savings accounts....................... 76.1 66.7 84.8 112.2 120.1 117.8 99.5 125.0 110.5 129.7 110.2 125.5 40 Large negotiable CDs............................ 18.1 18.8 -14.1 -14.4 9.3 13.8 -19.8 -9.1 -4.4 22.9 10.3 17.3 41 Other at commercial banks................... 29.6 26.1 39.4 58.1 41.7 42.8 52.0 64.3 45.3 38.2 45.0 40.5 42 At savings institutions............................ 28.5 21.8 59.4 68.5 69.1 61.3 67.3 69.8 69.6 68.7 54.9 67.7 43 Money............................................................ 14.4 8.9 12.0 16.6 24.2 15.9 14.8 18.3 22.1 26.3 19.3 12.5 44 Demand deposits..................................... 10.5 2.6 5.8 9.3 15.9 6.6 8.9 9.6 16.5 15.3 9.2 4.1 45 Currency..................................................... 3.9 6.3 6.2 7.3 8.3 9.3 6.0 8.6 5.6 11.0 10.1 8.5 46 Total of credit market instruments, de posits and currency.................................. 143.4 117.8 141.6 172.9 204.9 221.5 164.3 181.6 184.2 225.6 220.9 222.0 47 Public support rate (in percent)............. 17.4 28.5 22.4 20.8 25.3 26.5 20.2 21.4 23.0 27.2 27.5 25.6 48 Private financial intermediation (in per cent) ........................................................ 90.9 81.3 71.7 84.7 89.7 89.5 81.3 87.7 93.9 86.1 90.1 88.9 49 Total foreign funds...................................... 6.4 28.0 7.1 20.3 51.1 49.2 10.4 30.1 27.1 75.1 30.4 68.0 Memo: Corporate equities not included above 9.2 4.1 10.7 11.9 3.8 3.1 13.4 10.4 1.7 5.8 2.5 3.8 51 Mutual fund shares..................................... -1.2 -.7 -.1 -1.0 -1.0 -.5 -2.4 .4 -.8 -1.2 -.6 -.4 52 Other equities............................................... 10.4 4.8 10.8 12.9 4.8 3.6 15.8 9.9 2.5 7.0 3.1 4.2 53 Acquisitions by financial institutions.......... 13.3 5.8 9.7 12.5 6.2 4.9 13.1 12.0 6.1 6.3 1.7 8.0 54 Other net purchases........................................ -4.1 -1.6 1.0 -.7 -2.4 -1.7 .3 -1.6 -4.4 -.5 .8 -4.2 Notes by line number. 29. Demand deposits at commercial banks. 1. Line 2 of p. A-44. 30. Excludes net investment of these reserves in corporate equities. 2. Sum of lines 3-6 or 7-10. 31. Mainly retained earnings and net miscellaneous liabilities. 6. Includes farm and commercial mortgages. 32. Line 12 less line 19 plus line 26. 11. Credit market funds raised by federally sponsored credit agencies, 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 and net issues of federally related mortgage pool securities. Included includes mortgages. below in lines 3, 13, and 33. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38, or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Sum of lines 39 and 44. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes 50. 52. Includes issues by financial institutions. line 18. Note. Full statements for sectors and transaction types quarterly, 28. Foreign deposits at commercial banks, bank borrowings from foreign and annually for flows and for amounts outstanding, may be obtained branches, and liabilities of foreign banking agencies to foreign af from Flow of Funds Section, Division of Research and Statistics, Board filiates. of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A46 Domestic Nonfinancial Statistics □ May 1979 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1978 1979 Measure 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar.* Apr.c 1 Industrial production.............................. 129.8 137.1 145.2 147.8 148.7 149.6 150.9 150.9 151.0 152.0 150.5 Market groupings 2 Products, total........................................ 129.3 137.1 144.3 146.5 147.0 147.7 149.1 149.4 149.9 150.6 148.9 3 Final, total.......................................... 127.2 134.9 141.4 143.7 144.1 144.5 145.6 145.9 146.3 147.3 145.3 4 Consumer goods............................ 136.2 143.4 147.4 149.0 149.2 149.7 150.6 150.6 150.7 151.7 149.0 5 Equipment....................................... 114.6 123.2 133.1 136.4 137.0 137.3 138.7 139.5 140.1 141.3 140.5 6 Intermediate........................................ 137.2 145.1 155.3 157.0 158.0 159.3 161.8 162.6 163.1 162.7 162.1 7 Materials................................................. 130.6 136.9 146.5 149.7 151.4 152.7 153.8 153.1 152.7 154.1 153.0 Industry groupings 8 Manufacturing....................................... 129.5 137.1 145.6 148.7 149.5 150.4 151.8 151.9 152.0 152.9 151.3 Capacity utilization (percent)1 9 Manufacturing........................................ 80.2 82.4 84.2 85.3 85.5 85.8 86.3 86.0 85.8 86.1 84.9 10 Industrial materials industries............. 80.4 81.9 84.9 86.3 87.1 87.6 86.1 87.4 86.9 87.5 86.7 11 Construction contracts2....................... 190.2 160.5 174.3 182.0 193.0 173.0 184.0 181.0 231.0 186.0 n.a. 12 Nonagricultural employment, total3... 120.7 125.0 130.3 131.0 131.6 132.3 133.5 133.0 133.5 134.1 134.2 13 Goods-producing, total......................... 100.2 104.2 108.9 109.3 110.1 111.0 111.7 112.0 112.4 113.3 113.3 14 Manufacturing, total......................... 97.7 101.0 104.5 104.3 105.1 105.9 106.6 107.1 107.4 107.8 107.7 15 Manufacturing, production-worker 95.3 98.6 102.1 101.6 102.4 103.5 104.3 104.8 105.2 105.5 105.4 16 Service-producing.................................. 131.9 136.4 142.1 142.9 143.4 144.0 144.2 144.5 145.0 145.5 145.7 17 Personal income, total4......................... 220.4 244.0 272.5 278.4 282.2 285.0 288.5 290.3 292.6 296.2 297.1 18 Wages and salary disbursements........ 189.3 230.1 257.5 262.0 266.1 268.8 271.5 274.4 276.9 280.6 281.1 19 Manufacturing........................................ 177.1 198.6 223.6 226.4 230.3 234.8 238.0 238.0 244.1 246.7 245.6 20 Disposable personal income................ 176.8 194.5 216.7 226.0 233.4 21 Retail sales5........................................ 203.5 224.4 248.0 253.5 257.5 262.0 265.3 270.7 271.8 274.5 275.9 Prices6 22 Consumer7.............................................. 170.5 181.5 195.4 199.3 200.9 202.0 202.9 204.7 207.1 209.6 n.a. 23 Producer finished goods8..................... 170.3 180.6 194.6 196.9 199.7 200.6 202.4 205.2 207.4 208.8 211.2 1 Ratios of indexes of production to indexes of capacity. Based on data Review (U.S. Department of Labor). Seasonally adjusted data for changes from Federal Reserve, McGraw-Hill Economics Department, and De in the price indexes may be obtained from the Bureau of Labor Statistics, partment of Commerce. U.S. Department of Labor. 2 Index of dollar value of total construction contracts, including 7 Beginning Jan. 1978, based on new index for all urban consumers. residential, nonresidential, and heavy engineering, from McGraw-Hill 8 Beginning with the November 1978 Bulletin, producer price data Informations Systems Company, F. W. Dodge Division. in this table have been changed to the BLS series for producer finished 3 Based on data in Employment and Earnings (U.S. Department of goods. The previous data were producer prices for all commodities. Labor). Series covers employees only, excluding personnel in the Armed Forces. Note. Basic data (not index numbers) for series mentioned in notes 4 Based on data in Survey of Current Business (U.S. Department of Com 3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be merce). Series for disposable income is quarterly. found in the Survey of Current Business (U.S. Department of Commerce). 5 Based on Bureau of Census data published in Survey of Current Figures for industrial production for the last two months are preliminary Business (U.S. Department of Commerce). and estimated, respectively. 6 Data without seasonal adjustment, as published in Monthly Labor 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1978 1979 1978 1979 1978 1979 Series Q2 Q3 Q4 Qlr Q2 Q3 Q4 Ql Q2 Q3 Q4 Qlr Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing.................................................. 144.4 147.7 150.6 152.3 172.0 173.7 175.4 177.1 84.0 85.0 85.9 86.0 2 Primary processing...................................... 154.1 158.2 161.9 162.0 178.5 180.2 181.9 183.8 86.3 87.8 89.0 88.1 3 Advanced processing.................................. 139.3 142.1 144.5 147.1 168.5 170.2 171.8 173.4 82.7 83.5 84. 1 84.8 4 Materials........................................................... 145.1 148.7 152.6 153.3 171.7 173.0 174.2 175.6 84.5 86.0 87.6 87.3 5 Durable goods.............................................. 144.0 150.4 155.2 155.1 175.2 176.3 177.4 178.4 82.2 85.3 87.5 87.0 6 Basic metal............................................... 117.5 124.6 129.4 124.3 146.1 146.5 146.8 147.1 80.4 85.1 88. 1 84.5 7 Nondurable goods...................................... 163.2 163.2 166.9 169.4 184.4 186.5 188.5 190.7 88.5 87.5 88.5 88.8 8 Textile, paper, and chemical................ 167.7 168.4 172.2 175.0 193.1 195.4 197.5 199.8 86.8 86.2 87.2 87.6 9 Textile................................................... 117.1 117.3 119.4 117.8 144.1 144.7 145.2 145.8 81.2 81.0 82.2 80.8 10 Paper..................................................... 139.7 134.8 137.2 137.4 154.8 155.8 156.9 158.0 90.3 86.5 87.4 87.0 11 Chemical............................................... 201.4 204.4 209.5 215.3 230.1 233.5 236.8 240.2 87.5 87.5 88.5 89.6 12 Energy........................................................... 125.5 127.0 128.7 129.0 147.8 148.4 148.9 150.2 84.9 85.6 86.4 85.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Labor Market A47 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1978 1979 Category 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Household survey data 156,048 158,559 161,058 161,829 162,033 162,250 162,448 162,633 162,909 163,008 2 Labor force (including Armed Forces)1........................................... 96,917 99,534 102,537 103,199 103,745 103,975 104,277 104,621 104,804 104,193 3 Civilian labor force............................... 94,773 97,401 100,420 101,077 101,628 101,867 102,183 102,527 102,714 102,111 Employment 4 Nonagricultural industries2........ 84,188 87,302 91,031 91,867 92,476 92,468 93,068 93,335 93,499 92,987 5 Agriculture...................................... 3,297 3,244 3,342 3,374 3,275 3,387 3,232 3,311 3,343 3,186 Unemployment 7,288 6,855 6,047 5,836 5,877 6,012 5,883 5,881 5,871 5,937 7 Rate (percent of civilian labor force)........................................ 7.7 7.0 6.0 5.8 5.8 5.9 5.8 5.7 5.7 5.8 8 Not in labor force.................................. 59,130 59,025 58,521 58,630 58,288 58,275 58,170 58,012 58,105 58,815 Establishment survey data4 9 Nonagricultural payroll employment3 79,382 82,256 85,760 86,573 87,036 87,281 87,524 '87,818 '88,240 88,312 18,997 19,647 20,331 20,436 20,601 20,729 20,825 '20,895 '20,960 20,941 11 Mining..................................................... 779 809 837 893 903 904 905 '26,199 '26,413 26,397 12 Contract construction........................... 3,576 3,833 4,213 4,341 4,368 4,397 4,381 '4,385 '4,532 4,534 13 Transportation and public utilities... 4,582 4,696 4,858 4,922 4,947 4,967 4,974 '5,001 '5,024 4,958 14 Trade........................................................ 17,755 18,492 19,392 19,632 19,701 19,697 19,817 '19,883 '19,949 19,992 4,271 4,452 4,676 4,737 4,774 4,789 4,809 '4,829 '4,842 4,860 16 Service...................................................... 14,551 15,249 15,976 16,169 16,270 16,327 16,352 '16,438 '16,512 16,569 17 Government............................................ 14,871 15,079 15,478 15,443 15,472 15,471 15,461 '15,468 '15,500 15,536 1 Persons 16 years of age and over. Monthly figures, which are based unpaid family workers, and members of the Armed Forces. Data are on sample data, relate to the calendar week that contains the 12th day; adjusted to the February 1977 benchmark. Based on data from Employ annual data are averages of monthly figures. By definition, seasonality ment and Earnings (U.S. Dept, of Labor). does not exist in population figures. Based on data from Employment 4 The establishment survey data in this table have been revised to and Earnings (U.S. Dept, of Labor). conform to the industry definitions of the 1972 Standard Industrial 2 Includes self-employed, unpaid family, and domestic service workers. Classification (SIC) Manual and to reflect employment benchmark 3 Data include all full- and part-time employees who worked during, levels for March 1977. In addition, seasonal factors for these data have or received pay for, the pay period that includes the 12th day of the been revised, based on experience through May 1978. month, and exclude proprietors, self-employed persons, domestic servants, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A48 Domestic Nonfinancial Statistics □ May 1979 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1978 1979 Grouping pro 1978 por avertion age* Feb. Mar. Apr. Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar.* Apr.® Index (1967 = 100) MAJOR MARKET 1 100.00 145.2 139.2 140.9 143.2 147.1 147.8 148.7 149.6 150.9 150.9 151.0 152.0 150.5 60.71 144.3 139.6 141.6 143.0 146.2 146.5 147.0 147.7 149.1 149.4 149.9 150.6 148.9 3 Final products.......................................... 47.82 141.4 136.4 138.9 140.5 143.3 143.7 144.1 144.5 145.6 145.9 146.3 147.3 145.3 4 Consumer goods.................................... 27.68 147.4 143.8 145.9 147.5 148.4 149.0 149.2 149.7 150.6 150.6 150.7 151.7 149.0 5 Equipment.............................................. 20.14 133.1 126.2 129.1 130.8 136.3 136.4 137.0 137.3 138.7 139.5 140.1 141.3 140.5 6 Intermediate products............................... 12.89 155.3 151.4 151.4 152.1 156.4 157.0 158.0 159.3 161.8 162.6 163.1 162.7 162.1 39.29 146.5 138.6 139.9 143.7 148.6 149.7 151.4 152.7 153.8 153.1 152.7 154.1 153.0 Consumer goods 8 Durable consumer goods.......................... 7.89 158.9 151.2 157.5 161.8 161.5 160.3 161.6 161.8 161.9 160.9 161.3 163.9 153.4 9 Automotive products............................. 2.83 178.6 162.8 175.8 184.3 182.1 178.3 185.6 189.0 185.1 181.3 179.1 186.0 161.3 10 Autos and utility vehicles................. 2.03 172.5 153.9 171.0 182.7 175.6 170.0 180.5 185.0 179.3 173.4 170.7 180.1 147.4 11 Autos.............................................. 1.90 148.5 131.5 149.7 159.1 151.1 144.4 154.2 159.7 151.8 145.9 144.9 153.7 128.6 12 Auto parts and allied goods............. 80 194.0 185.3 188.5 188.2 198.0 199.8 199.1 199.0 200.1 201.8 200.7 200.8 197.0 13 Home goods.......................................... 5.06 147.8 144.6 147.2 149.2 150.0 150.2 148.2 146.5 148.9 149.5 151.3 151.6 149.0 14 1.40 132.5 133.3 135.4 142.2 133.9 134.4 128.7 123.4 129.1 125.9 130.4 128.5 120.0 IS 1.33 134.5 135.7 137.9 144.7 135.6 136.9 129.9 124.4 129.8 126.8 131.5 129.9 16 1.07 164.3 160.2 159.3 158.9 167.9 169.0 168.0 164.9 166.8 170.8 172.9 174.8 17 Miscellaneous home goods............... 2.59 149.3 144.3 148.7 149.0 151.3 150.8 150.6 151.3 152.0 153.6 153.7 154.5 154.5 18 Nondurable consumer goods................... 19.79 142.8 148.8 141.3 141.8 143.1 144.4 144.3 144.8 146.2 146.5 146.5 146.9 147.1 19 4.29 125.5 121.1 122.4 124.9 126.6 128.9 128.3 130.1 130.1 129.5 20 Consumer staples................................... 15.50 147.6 146.3 146.4 146.6 147.8 148.8 148.8 i49.2 150.6 151.0 151.2 151.7 152.1 71 8.33 140.1 138.3 138.7 140.8 140.8 141.2 140.4 141.0 143.0 142.1 142.6 143.7 22 Nonfood staples................................. 7.17 156.2 155.8 155.3 153.3 155.9 157.4 158.5 158.8 159.6 161.3 161.2 160.9 162.0 23 Consumer chemical products........ 2,63 187.1 184.3 182.1 182.5 188.0 191.9 191.9 190.7 193.2 196.5 196.3 195.9 24 Consumer paper products............. 1.92 118.1 118.8 118.9 117.7 117.3 118.2 117.6 117.6 116.9 120.1 121.6 121.6 25 Consumer energy products........... 2.62 153.2 154.5 155.0 149.9 152.0 153.3 155.4 156.7 156.9 156.6 155.1 154.7 26 Residential utilities..................... 1.45 161.5 167.6 166.9 159.0 160.1 160.9 162.8 162.1 161.1 165.3 Equipment 27 12.63 162.0 154.2 157.4 159.3 165.4 165.8 166.9 167.2 168.7 169.7 170.5 172.0 170.8 28 Industrial................................................ 6.77 149.9 144.6 146.9 147.8 152.8 152.7 152.9 151.8 152.2 154.7 155.7 156.5 155.9 29 Building and mining.......................... 1.44 223.4 214.9 221.7 225.1 228.1 226.3 226.5 223.8 222.3 222.3 223.6 223.6 223.6 30 Manufacturing................................... 3.85 121.9 117.7 118.3 119.0 123.9 124.4 125.0 124.2 124.7 127.9 128.9 129.4 129.0 31 1.47 151.0 145.8 148.8 147.3 154.6 154.8 154.0 153.4 155.6 158.5 158.9 161.0 160.0 32 Commercial transit, farm...................... 5.86 176.0 165.5 169.4 172.6 179.9 180.8 182.9 184.9 187.8 187.1 187.4 190.0 187.9 33 3.26 208.6 200.9 202.0 203.8 212.2 214.1 215.1 214.9 217.1 218.1 218.8 220.8 221.1 34 1.93 133.8 115.9 126.1 133.7 138.5 138.6 142.6 147.5 151.0 148.2 146.2 149.4 142.6 35 Farm................................................... 67 138.9 134.8 137.0 132.9 141.3 142.0 143.2 145.8 151.5 149.5 154.1 157.0 36 Defense and space.................................... 7.51 84.5 79.2 81.9 82.9 87.1 87.1 86.7 87.2 87.9 88.7 89.1 89.7 89.4 Intermediate products 37 Construction supplies............................... 6.42 153.3 148.6 147.9 148.5 154.7 155.6 157.0 159.0 160.8 161.2 161.4 160.7 159.6 38 Business sunnlies....................................... 6.47 157.3 154.2 155.0 155.6 158.2 158.4 159.2 159.9 162.7 163.8 164.7 164.6 39 Commercial energy products................ 1.14 166.5 165.6 164.3 163.5 167.4 169.9 168.8 168.8 170.0 172.2 172.5 172.8 Materials 20.35 146.9 137.0 138.6 142.7 150.4 152.1 154.0 154.9 156.8 155.4 154.6 155.4 153.2 41 4.58 140.3 131.1 133.1 136.8 142.2 144.8 147.3 147.4 148.4 147.8 144.6 145.2 135.8 42 Equipment parts.................................... 5.44 159.1 146.6 151.3 154.8 162.9 164.6 166.0 167.6 170.5 170.5 171.6 173.0 172.4 43 Durable materials n.e.c......................... 10.34 143.4 134.6 134.5 138.9 147.6 148.7 150.5 151.6 153.6 150.8 150.2 150.8 150.6 44 Basic metal materials......................... 5.57 120.4 111.0 110.4 116.7 125.4 126.7 128.2 129.1 130.9 124.6 123.6 124.8 45 Nondurable goods materials.................... 10.47 162.9 158.5 160.5 162.0 162.7 164.4 165.7 167.8 167.1 168.3 169.4 170.5 171.1 46 Textile, paper, and chemical materials. 7.62 167.9 162.8 165.7 166.4 167.0 170.0 171.0 173.3 172.3 173.7 175.1 176.2 177.2 47 Textile materials..................................... 1.85 117.2 115.8 115.1 116.5 116.0 118.7 118.7 120.4 119.0 118.1 116.9 118.3 48 Paper materials...................................... 1.62 137.1 136.8 137.8 139.2 131.5 137.7 137.3 137.6 136.6 133.5 138.5 140.3 49 Chemical materials................................ 4.15 202.6 194.2 199.2 199.5 203.7 205.5 207.6 210.7 210.3 214.3 215.6 216.1 50 Containers, nondurable......................... 1.70 160.5 158.7 158.1 160.5 161.8 161.1 163.4 165.6 165.5 167.6 167.2 168.3 Nondurable materials n.e.c................... 1.14 133.2 128.9 129.3 134.6 134.8 131.8 134.5 134.5 135.4 133.4 134.3 135.9 8.48 125.2 117.7 117.5 123.9 127.0 126.0 128.0 128.4 129.6 128.7 127.6 130.7 130.3 53 Primary energy....................................... 4.65 112.7 101.0' 104.5 115.5 115.4 111.8 115.9 117.4 116.9 113.5 112.2 115.1 54 Converted fuel materials....................... 3.82 140.5 138.0i 133.3 134.1 141.3 143.4 142.7 141.8 145.1 147.3 146.6 149.6 Supplementary groups 9.35i 137.6i 133.81 135.9 138.0 139.2 140.3 139.1 138.5 140.2 140.6i 141.4 141.5 140.0 S6 F.nercv. total. ............................................. 12.23i 135.1 130.C► 129.8! 133.1 136.1 135.9 137.6 138.2 139.3 138.7' 137.7 139.8 139.7 57 Products................................................ 3.76i 157.2i 157.9' 157.9 154.1 156.7 158.3 159.3 160.4 161.0• 161.3i 160 5 160.2 58 8.481 125.2t 117.'J' 117.5i 123.9 127.C1 126.0i 128.0i 128.4 129.6i 128.7 127.6 130^7 i30.3 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Output A49 2.13 Continued 1967 1978 1979 Grouping SIC pro 1978 code por aver tion age* Feb. Mar. Apr. Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar.* Apr.® Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 141.6 137.7 138.2 140.9 142.5 142.1 144.1 144.5 145.0 144.2 143.6 145.0 144.9 2 Mining.................. 6.36 124.2 114.4 119.3 127.2 126.0 124.1 127.6 128.1 127.6 124.0 121.8 124.1 123.8 3 Utilities................. 5.69 161.0 163.5 159.5 156.0 160.8 162.3 162.4 162.9 164.3 166.8 167.8 168.1 168.4 4 Electric.............. 3.88 182.2 184.3 .178.8 175.0 183.2 184.4 184.1 185.0 186.6 189.4 5 Manufacturing., 87.95 145.7 139.4 141.4 143.5 147.6 148.7 149.5 150.4 151.8 151.9 152.0 152.9 151.3 6 Nondurable. . 35.97 154.8 150.6 151.4 153.2 155.6 157.1 157.4 158.5 159.6 160.4 160.4 161.2 161.2 7 Durable......... 51.98 139.3 131.5 134.4 136.9 142.2 142.8 144.0 144.8 146.4 146.0 146.1 147.4 144.4 Mining 8 Metal................................ 10 .51 121.0 119.9 127.6 122.3 117.9 115.6 122.1 125.3 123.9 123.5 124.1 126.4 9 Coal.................................. 11,12 .69 115.7 56.5 78.4 129.5 124.9 114.7 114.7 145.1 146.8 116.0 104.0 124.0 129.3 10 Oil and gas extraction. . . 13 4.40 124.7 120.4 123.3 127.3 126.2 124.9 124.5 124.9 123.8 123.2 121.7 121.7 120.7 11 Stone and earth minerals. 14 .75 131.1 129.1 128.2 128.9 131.6 133.8 134.0 132.9 134.2 136.7 137.0 136.8 Nondurable manufactures 12 Foods............................... 8.75 142.9 140.8 141.1 143.1 144.0 144.4 143.2 144.2 145.7 145.5 146.5 147.1 13 Tobacco products............ .67 119.2 117.7 115.6 121.0 118.6 120.6 119.0 121.5 122.0 120.0 118.8 14 Textile mill products....... 2.68 140.0 136.4 135.1 138.1 139.5 142.2 142.1 143.9 144.9 143.5 141.3 143.2 15 Apparel products............ 3.31 126.3 121.1 122.8 126.1 127.2 130.9 130.6 131.4 132.3 130.2 16 Paper and products......... 3.21 144.5 143.9 144.9 145.7 141.9 142.3 145.8 145.3 147.8 144.9 148.0 i49.’i 148.9 17 Printing and publishing.............. 4.72 129.9 128.3 129.1 128.6 129.5 131.0 130.5 132.1 133.0 135.8 137.1 136.8 137.0 18 Chemicals and products............. 7.74 190.7 183.7 185.2 185.5 192.2 194.2 195.9 197.6 197.9 200.8 201.4 201.3 19 Petroleum products..................... 1.79 144.2 139.0 140.1 141.7 144.1 147.1 147.1 148.9 149.9 147.9 145.5 145.0 146.1 20 Rubber and plastic products.... 2.24 254.8 240.0 243.1 249.1 261.1 263.1 264.1 264.2 267.0 268.1 266.9 269.4 21 Leather and products.................. 74.1 73.0 72.1 76.0 74.0 74.1 73.8 74.1 74.0 75.1 73.3 73.0 Durable manufactures 22 Ordnance, private and govern ment ................................... 19,91 3.64 73.7 71.2 72.7 73.0 75.2 74.3 73.9 73.6 74.2 73.4 73.5 75.4 74.1 23 Lumber and products............... 24 1.64 138.9 135.5 136.5 136.9 136.9 139.2 141.2 142.5 146.0 142.0 141.1 140.0 24 Furniture and fixtures.............. 25 1,37 154.7 150.1 149.5 148.9 159.0 160.7 160.9 157.6 156.7 161.7 163.6 165.0 25 Clay, glass, stone products 32 2.74 159.2 152.6 154.2 156.7 159.5 160.9 162.1 166.3 167.7 168.6 166.9 165.0 26 Primary metals................... 33 6.57 119.0 106.2 106.1 114.3 126.0 127.9 128.6 129.0 130.4 122.0 121.4 121.9 121.1 27 Iron and steel................. 331,2 4.21 113.2 96.3 96.4 109.0 120.9 123.2 123.8 124.1 124.5 112.7 112.8 114.5 28 Fabricated metal products. 34 5.93 142.6 136.9 138.1 139.5 145.8 146.3 146.0 146.9 149.0 151.0 152.2 152.3 151.0 29 Nonelectrical machinery__ 35 9.15 155.6 150.1 151.5 152.2 157.3 158.7 160.3 160.3 161.8 163.6 164.6 166.0 165.3 30 Electrical machinery........... 36 8.05 154.3 146.4 149.5 152.3 156.9 158.3 157.9 159.0 161.9 163.9 164.9 166.1 165.2 31 Transportation equipment............ 37 9.27 130.5 118.4 126.5 130.5 133.4 132.8 137.0 139.3 139.5 137.7 136.3 140.3 127.3 32 Motor vehicles and parts.......... 371 4.50 168.3 153.1 165.1 171.7 171.0 168.9 176.8 180.8 179.7 174.5 171.4 177.9 153.8 33 Aerospace and miscellaneous transportation equip ment ................................... 372-9 4.77 94.9 85.8 90.1 91.8 98.3 98.9 99.6 100.2 101.7 103.0 103.2 104.8 102.5 34 Instruments................................... 38 2.11 171.6 163.5 168.7 170.5 175.4 174.6 175.3 172.2 179.5 180.4 181.0 182.3 182.5 35 Miscellaneous manufactures........ 39 1.51 153.3 151.8 153.7 152.9 153.8 154.1 153.9 152.1 153.7 154.8 157.0 157.3 155.7 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total........ 1507.4 609.6 591.2 601.1 608.8 613.3 613.6 621.3 625.3 632.0 628.0 630.7 654.6 624.1 37 Final....................... 1390.9 469.3 454.4 463.5 470.7 472.2 471.8 478.8 481.6 486.6 481.8 484.3 487.6 477.9 38 Consumer goods. 1277.5 324.0 318.6 321.6 326.3 324.7 324.4 328.1 330.8 332.3 329.0 329.9 331.5 324.6 39 Equipment.......... 1113.4 145.3 135.8 142.0 144.4 147.5 147.7 150.6 150.9 154.3 152.9 154.2 156.2 153.1 40 Intermediate., 1116.6 140.4 137.0 137.5 138.3 141.4 141.9 142.6 144.0 145.6 146.3 146.8 147.2 146.4 i 1972 dollars. shown separately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve Note. Published groupings include some series and subtotals not System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 Domestic Nonfinancial Statistics □ May 1979 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1978 1979 1976 1977 1978 Item Sept. Oct. Nov. Dec. Jan.' Feb. Mar. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized.............................. 1,296 1,677 1,658 1,731 1,729 1,724 1,664 1,324 1,321 1,579 2 1-family............................................ 894 1,126 1,078 1,092 1,135 1,114 1,149 841 787 978 3 2-or-more-family............................. 402 551 581 639 592 610 515 483 534 601 4 Started................................................. 1,538 1,986 2,019 2,024 2,054 2,107 2,074 1,679 r1,384 1,793 5 1-family........................................... 1,163 1,451 1,433 1,432 1,436 1,502 1,539 1,139 '946 1,263 6 2-or-more-family............................. 377 535 586 r592 r618 r605 535 540 '438 530 7 Under construction, end of period 1 1,147 1,442 1,355 1,311 1,320 1,337 1,345 1,365 1,352 n.a. 8 1-family........................................... 655 829 1,378 784 781 791 799 815 799 n.a. 9 2-or-more-family............................. 492 613 553 526 539 545 546 550 553 n.a. 10 Completed........................................... 1,362 1,652 1,866 1,900 1,883 1,885 1,888 1,416 472 n.a. 11 1-family........................................... 1,026 1,254 1,368 1,370 1,414 1,375 1,805 1,321 484 n.a. 12 2-or-more-family............................ 336 398 498 530 468 510 1,892 1,367 525 n.a. 13 Mobile homes shipped....................... 246 277 276 272 286 280 303 311 '272 268 Merchant builder activity in 1-family units: 14 Number sold...................................... 639 819 817 796 900 803 802 774 '697 811 15 Number for sale, end of period i........ 433 407 423 417 407 412 413 412 '410 407 Price (thous. of dollars)2 Median: 16 Units sold.................................... 44.2 48.9 55.9 57.3 58.3 58.8 59.9 60.3 '61.2 60.4 17 Units for sale............................... 41.6 48.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Average: 18 Units sold.................................... 48.1 54.4 62.7 64.4 65.7 66.3 61A 67.7 '68.7 68.5 EXISTING UNITS (1-family) 19 Number sold....................................... 3,002 3,572 3,905 3,950 4,290 4,350 4,160 3,710 3,620 3,650 Price of units sold (thous. of dollars):2 20 Median............................................ 38.1 42.9 48.7 50.2 50.1 50.7 50.9 52.0 51.9 53.8 21 Average........................................... 42.2 47.9 55.1 57.7 57.3 57.4 58.1 59.8 59.5 61.8 Value of new construction 4 (millions of dollars) CONSTRUCTION 148,778 172,552 202,219 209,833 211,984 215,827 218,529 208,595 205,593 211,582 23 Private................................................. 110,416 134,723 157,455 161,863 164,096 167,931 170,966 162,260 163,830 168,555 24 Residential....................................... 60,519 80,957 93,088 94,682 95,162 97,594 98,793 92,188 94,070 94,646 25 Nonresidential, total...................... 49,897 53,766 64,367 67,181 68,934 70,337 72,173 70,072 69,760 73,909 Buildings: 26 Industrial................................. 7,182 7,713 10,762 12,634 12,627 12,529 13,273 12,512 13,022 14,754 27 Commercial............................. 12,757 14,789 18,280 18,926 19,410 20,294 20,049 19,272 18,767 20,930 28 Other........................................ 6,155 6,200 6,659 6,686 6,667 6,877 6,922 6,598 6,431 6,900 29 Public utilities and other............ 23,803 25,064 28,666 28,935 30,230 30,637 31,929 31,688 31,540 31,326 30 Public.................................................. 38,312 37,828 44,762 47,970 47,888 47,897 47,563 46,335 41,763 43,027 31 Military............................................ 1,521 1,517 1,462 1,615 1,409 1,415 1,442 1,621 1,438 1,737 32 Highway.......................................... 9,439 9,280 8,627 10,862 11,428 10,956 11,176 n.a. n.a. n.a. 33 Conservation and development... 3,751 3,882 3,697 5,660 3,851 4,593 4,357 n.a. n.a. n.a. 34 Other3.............................................. 23,601 23,149 23,503 29,833 31,200 30,933 30,588 n.a. n.a. n.a. 1 Not at annual rates. Note. Census Bureau estimates for all series except (a) mobile homes 2 Not seasonally adjusted. which are private, domestic shipments as reported by the Manufactured 3 Beginning Jan. 1977 Highway imputations are included in Other. Housing Institute and seasonally adjusted by the Census Bureau, and 4 Value of new construction data in recent periods may not be strictly (b) sales and prices of existing units, which are published by the Na comparable with data in prior periods due to changes by the Bureau of tional Association of Realtors. All back and current figures are avail the Census in its estimating techniques. For a description of these changes able from originating agency. Permit authorizations are for 14,000 see Construction Reports (C-30-76-5), issued by the Bureau in July 1976. jurisdictions reporting to the Census Bureau. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Prices A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted. 12 months to— 3 months (at annual rate) to— 1 month to— Index level Item 1978 1979 1978 1979 Mar. 1978 1979 1979 Mar. Mar. (1967 June Sept. Dec. Mar. Nov. Dec. Jan. Feb. Mar. = 100)2 Consumer prices 3 1All items........................................................ 6.5 10.2 10.7 8.5 8.5 13.0 .6 .6 .9 1.2 1.0 209.1 2 Commodities................................................ 5.7 10.4 10.5 7.3 9.6 14.5 .7 .8 1.1 1.2 1.1 200.5 3 18.3 12.8 18.3 4.8 10.2 17.7 .6 1.0 1.4 1.6 1.1 230.4 4 Commodities less food............................. 4.6 9.4 7.2 8.3 9.6 12.9 .7 .8 .9 1.0 1.1 185.9 5 Durable................................................. 4.7 9.9 9.0 9.1 11.3 10.0 1.0 .8 .9 1.0 .5 184.9 6 Nondurable.......................................... 4.1 8.8 5.5 6.9 6.7 16.5 .5 .6 1.1 '.8 1.9 185.7 7 Services......................................................... 7.8 9.9 11.0 10.3 7.2 10.6 .5 .4 .5 1.1 .9 225.1 8 Rent.......................................................... 6.4 6.7 8.2 7.3 7.7 3.6 .7 .6 .3 .4 .2 171.3 9 Services less rent...................................... 8.1 10.3 11.3 10.8 7.1 11.7 .4 .4 .6 1.1 1.0 235.0 Other groupings 10 All items less food....................................... 6.2 9.6 8.9 9.3 8.5 12.0 .6 .6 .8 1.0 1.0 203.8 11 All items less food and energy................... 6.3 9.3 10.4 9.7 7.7 9.3 .7 .4 .5 .9 .8 200.4 9.5 13.7 13.2 14.6 10.9 16.7 .8 .4 .8 1.8 1.3 248.2 Producer prices4 13 Finished goods............................................. 6.5 10.4 10.3 7.4 >■10.5 13.7 '.7 '1.0 '1.2 1.0 1.0 208.8 14 Consumer.................................................. 6.1 11.1 10.6 7.5 '11.1 15.6 .6 1.2 '1.3 1.2 1.1 207.6 15 Foods.................................................... 7.3 12.8 11.4 4.9 '15.3 20.1 .8 1.2 1.8 1.6 1.2 225.9 16 Excluding foods................................... 5.4 10.2 10.5 8.8 '8.8 12.9 .6 '1.2 '1.1 .9 1.1 196.5 17 Capital equipment................................... 7.7 8.6 9.1 7.0 8.8 9.8 .8 .6 1.0 .8 .6 211.4 18 Materials...................................................... 5.8 11.8 9.9 7.5 13.0 17.3 .9 .7 1.4 1.6 1.0 240.0 19 Intermediate1............................................ 6.4 9.6 7.2 6.9 '11.2 13.2 .9 '.7 '1.1 .9 1.1 231.9 Crude 20 Nonfood................................................ 5.0 20.1 14.9 16.9 '19.8 29.5 1.7 1.2 '1.6 2.8 2.1 331.8 21 Food...................................................... 4.7 19.8 26.6 2.8 '21.2 30.6 .9 .3 2.8. '3.8 .2 247.2 1 Excludes intermediate materials for food manufacturing and manu- 3 Figures for consumer prices are those for all urban consumers, factured animal feeds. 4 Formerly wholesale prices. 2 Not seasonally adjusted. Source. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A52 Domestic Nonfinancial Statistics □ May 1979 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1977 1978 1979 1976 1977 1978 Account Q4 Ql Q2 Q3 Q4 Ql* Gross national product 1 1,700.1 1,887.2 2,107.6 1,958.1 1,992.0 2,087.5 2,136.1 2,214.8 2,265.6 By source 2 Personal consumption expenditures...................... 1,090.2 1,206.5 1,340.1 1,255.2 1,276.7 1,322.9 1,356.9 1,403.9 1,444.7 3 Durable goods.................................................. 156.6 178.4 197.5 187.2 183.5 197.8 199.5 209.1 213.4 4 Nondurable goods............................................ 442.6 479.0 526.5 496.9 501.4 519.3 531.7 553.4 569.7 5 Services.............................................................. 491.0 549.2 616.2 571.1 591.8 605.8 625.8 641.4 661.6 6 Gross private domestic investment........................ 243.0 297.8 345.6 313.5 322.7 345.4 350.1 364.0 371.6 7 Fixed investment............................................... 232.8 282.3 329.6 300.5 306.0 325.3 336.5 350.5 353.5 8 Nonresidential................................................ 164.6 190.4 222.6 200.3 205.6 220.1 227.5 237.1 242.6 9 Structures................................................... 57.3 63.9 77.8 67.4 68.5 76.6 80.9 85.1 85.0 10 Producers’ durable equipment................. 107.3 126.5 144.8 132.8 137.1 143.5 146.6 152.0 157.6 11 Residential structures................................... 68.2 91.9 107.0 100.2 100.3 105.3 109.0 113.4 110.9 12 Nonfarm.................................................... 65.8 88.9 103.8 97.5 97.3 102.1 105.7 110.2 107.8 13 Change in business inventories........................ 10.2 15.6 16.0 13.1 16.7 20.1 13.6 13.5 18.1 14 Nonfarm........................................................ 12.2 15.0 16.7 10.4 16.9 22.1 14.6 13.4 19.6 15 Net exports of goods and services......................... 7.4 -11.1 -12.0 -23.2 -24.1 -5.5 -10.7 -7.6 -10.3 16 Exports.............................................................. 163.2 175.5 204.8 172.1 181.7 205.4 210.1 221.9 229.0 17 Imports.............................................................. 155.7 186.6 216.8 195.2 205.8 210.9 220.8 229.5 239.2 18 Government purchases of goods and services.... 359.5 394.0 433.9 412.5 416.7 424.7 439.8 454.5 459.4 19 Federal............................................................... 129.9 145.1 153.8 152.2 151.5 147.2 154.0 162.5 164.7 20 State and 1 ocal.................................................. 229.6 248.9 280.2 260.3 265.2 277.6 285.8 292.0 294.8 By major type of product 21 Final sales, total.................................................... 1,689.9 1,871.6 2,091.6 1,945.0 1,975.3 2,067.4 2,122.5 2,201.3 2,247.4 22 Goods................................................................. 760.3 832.6 918.4 859.6 861.8 912.2 927.3 972.5 1,000.7 23 Durable.......................................................... 304.6 341.3 376.8 347.4 351.2 375.8 380.1 400.1 421.8 24 Nondurable.................................................... 455.7 491.3 541.7 512.2 510.6 536.4 547.2 572.4 579.0 25 Services.............................................................. 778.0 862.8 962.5 893.6 926.4 952.0 973.7 997.7 1,025.2 26 Structures.......................................................... 161.9 191.8 226.7 204.9 203.8 223.4 235.0 244.7 239.6 27 Change in business inventories............................ 10.2 15.6 16.0 13.1 16.7 20.1 13.6 13.5 18.1 28 Durable goods.................................................. 5.3 8.4 11.7 6.3 14.8 10.8 10.2 10.8 22.4 29 Nondurable goods............................................ 4.9 7.2 4.3 6.8 1.9 9.3 3.4 2.7 -4.3 30 Memo: Total GNP in 1972 dollars.................... 1,271.0 1,332.7 1,385.7 1,354.5 1,354.2 1,382.6 1,391.4 1,414.7 1,417.3 National income 31 1,359.2 1,515.3 r1,703.7 1,576.9 1,603.1 1,688.1 1,728.4 "1,795.2 n.a. 32 Compensation of employees................................ 1,036.8 1,153.4 1,301.4 1,199.7 1,241.0 1,287.8 1,317.1 1,359.8 1,405.9 33 Wages and salaries............................................ 890.1 983.6 1,101.0 1,021.2 1,050.8 1,090.2 1,113.4 1,149.4 1,184.5 34 Government and government enterprises .. 187.6 200.8 216.1 208.1 211.4 213.9 216.8 222.3 225.1 35 Other.............................................................. 702.5 782.9 884.8 813.1 839.3 876.3 896.6 921.X 959.5 36 Supplement to wages and salaries..................... 146.7 169.8 200.5 178.4 190.2 197.6 203.6 210.4 221.4 37 Employer contributions for social insurance................................................ 69.7 79.4 94.5 82.4 90.2 93.6 95.1 98.6 105.5 38 Other labor income....................................... 77.0 90.4 105.9 96.1 100.0 104.0 107.9 111.8 115.9 39 Proprietors’ income1.............................................. 88.6 99.8 113.2 107.3 105.0 110.1 114.5 123.0 123.7 40 Business and professional1............................... 70.2 79.5 87.8 82.3 83.1 86.1 89.6 92.6 93.1 41 Farm1................................................................ 18.4 20.3 25.3 25.1 21.9 24.0 25.0 30.4 30.6 42 Rental income of persons2................................... 22.5 22.5 23.4 22.7 22.8 22.2 24.3 24.4 24.7 43 Corporate profits 1................................................ 127.0 144.2 "159.5 148.2 132.6 163.4 165.2 "176.6 n.a. 44 Profits before tax 3............................................ 155.9 173.9 "202.0 178.3 172.1 205.5 205.4 "224.9 n.a. 45 Inventory valuation adjustment....................... -14.5 -14.8 -24.4 -14.8 -23.5 -24.9 -20.9 -28.4 -40.3 46 Capital consumption adjustment..................... -14.4 -14.9 -18.1 -15.3 -16.1 -17.2 -19.3 -19.9 -20.7 47 Net interest............................................................ 84.3 95.4 106.3 99.0 101.7 104.6 107.4 111.4 114.2 1 With inventory valuation and capital consumption adjustments. 3 For after-tax profits, dividends, and the like, see table 1.50. 2 With capital consumption adjustments. Source. Survey of Current Business (U.S. Dept, of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
National Income Accounts A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1977 1978 1979 1976 1977 1978 Account Q4 Ql Q2 Q3 Q4 Ql p Personal income and saving 1 Total personal income........................................... 1,380.9 1,529.0 1,708.0 1,593.0 1,628.9 1,682.4 1,731.7 1,789.0 1,834.1 2 Wage and salary disbursements.................................. 890.1 983.6 1,100.9 1,021.2 1,050.8 1,090.2 1,113.2 1,149.4 1,184.1 3 Commodity-producing industries.................... 307.5 343.7 390.2 357.1 365.9 387.0 396.4 411.3 426.4 4 Manufacturing.............................................. 237.5 266.3 299.9 277.3 286.9 296.1 302.0 314.4 327.3 5 Distributive industries...................................... 216.4 239.1 268.9 247.5 257.0 266.4 271.6 280.4 290.4 6 Service industries.............................................. 178.6 200.1 225.8 208.5 216.5 222.8 228.5 235.4 242.6 7 Government and government enterprises....... 187.6 200.8 216.1 208.1 211.4 213.9 216.7 222.3 225.3 8 Other labor income.............................................. 77.0 90.4 105.9 96.1 100.0 104.0 107.9 111.8 115.9 9 Proprietors’ income1..................................................... 88.6 99.8 113.2 107.3 105.0 110.1 114.5 123.0 123.7 10 Business and professional1............................... 70.2 79.5 87.8 82.3 83.1 86.1 89.6 92.6 93.1 11 Farm1................................................................ 18.4 20.3 25.3 25.1 21.9 24.0 25.0 30.4 30.6 12 Rental income of persons2................................... 22.5 22.5 23.4 22.7 22.8 22.2 24.3 24.4 24.7 13 Dividends.............................................................. 37.9 43.7 49.3 46.3 47.0 48.1 50.1 51.9 54.0 14 Personal interest income....................................... 126.3 141.2 159.0 146.0 151.4 156.3 161.7 166.6 171.8 15 Transfer payments................................................ 193.9 208.8 226.0 215.9 219.2 220.6 230.4 233.9 238.1 16 Old-age survivors, disability, and health insurance benefits...................................... 92.9 105.0 117.4 110.1 112.1 113.7 121.1 122.7 124.5 17 Less: Personal contributions for social insurance.................................................... 55.5 61.0 69.7 62.6 67.2 69.2 70.5 72.1 78.8 18 Equals: Personal income................................... 1,380.9 1,529.0 1,708.0 1,593.0 1,628.9 1,682.4 1,731.7 1,789.0 1,834.1 19 Less: Personal tax and nontax payments.... 196.5 226.0 256.2 233.3 237.3 249.1 263.2 275.1 270.6 20 Equals: Disposable personal income................ 1,184.4 1,303.0 1,451.8 1,359.6 1,391.6 1,433.3 1,468.4 1,513.9 1,563.5 21 Less: Personal outlays..................................... 1,116.3 1,236.1 1,374.9 1,285.9 1,309.2 1,357.0 1,392.5 1,440.9 1,482.6 22 Equals: Personal saving..................................... 68.0 66.9 76.9 73.7 82.4 76.3 76.0 73.0 80.9 Memo items : Per capita (1972 dollars): 23 Gross national product..................................... 5,906 6,144 6,340 6,226 6,215 6,334 6,360 6,452 6,454 24 Personal consumption expenditures................ 3,808 3,954 4,080 4,030 4,009 4,060 4,092 4,159 4,170 25 Disposable personal income............................. 4,136 4,271 4,421 4,365 4,370 4,399 4,428 4,485 4,512 26 Saving rate (percent)........................................... 5.7 5.1 5.3 5.4 5.9 5.3 5.2 4.8 5.2 1 Gross saving 27 Gross private saving.............................................. 270.7 290.8 '320.1 304.3 305.4 319.9 325.7 '329.6 n.a. 28 Personal saving.................................................. 68.0 66.9 76.9 73.7 82.4 76.3 76.0 73.0 80.9 29 Undistributed corporate profits1..................... 24.8 28.7 26.3 28.0 15.6 30.3 29.0 '30.3 n.a. 30 Corporate inventory valuation adjustment.... -14.5 -14.8 -24.4 -14.8 -23.5 -24.9 -20.9 -28.4 -40.3 Capital consumption allowances: 31 Corporate...................................................... 111.5 120.9 132.5 124.6 127.4 130.5 134.7 137.4 140.3 32 Noncorporate................................................ 66.3 74.3 84.4 77.9 79.9 82.8 86.1 89.0 91.4 33 34 Government surplus, or deficit (—), national income and product accounts............................. -33.2 -18.6 -1.6 -29.6 -21.1 6.2 .6 r8.0 n.a. 35 Federal.............................................................. -53.8 -48.1 -29.9 -58.6 -52.6 -23.6 -22.8 r—20.8 n.a. 36 State and local.................................................. 20.7 29.6 28.3 29.0 31.5 29.8 23.4 28.8 n.a. 37 Capital grants received by the United States, net_________________________________ 1.1 38 Investment........................................................................ 241.7 276.9 320.4 279.5 286.4 326.6 326.6 342.0 346.7 39 Gross private domestic..................................... 243.0 297.8 345.6 313.5 322.7 345.4 350.1 364.0 371.6 40 Net foreign........................................................ -1.2 -20.9 -25.2 -34.1 -36.3 -18.9 -23.5 -22.1 -25.0 41 Statistical discrepancy.......................................... 4.2 4.7 '1.8 4.8 2.2 .5 .4 '4.3 n.a. 1 With inventory valuation and capital consumption adjustments. Source. Survey of Current Business (U.S. Dept, of Commerce). 2 With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A54 International Statistics □ May 1979 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1977 1978 Item credits or debits 1976 1977 1978 Q4 Ql Q2 Q3 Q4 1 Merchandise exports................. 114,694 120,576 141,844 29,637 30,787 35,256 36,486 39,315 2 Merchandise imports................ 124,047 151,706 175,988 39,009 42,707 43,125 44,478 45,678 3 Merchandise trade balance2. -9,353 -31,130 -34,144 -9,372 -11,920 -7,869 -7,992 -6,363 4 Military transactions, net.......... 312 1,334 531 5 210 444 12 -136 5 Investment income, net3........... 15,933 17,507 19,915 3,812 4,877 4,581 4,878 5,580 6 Other service transactions, net. 2,469 1,705 2,814 482 532 835 666 781 7 Balance on goods and services3,4..................... 9,361 -10,585 -10,885 -5,072 -6,302 -2,009 -2,436 -138 8 Remittances, pensions, and other transfers... -1,878 -1,932 -2,048 -473 -504 -536 -496 -513 9 U.S. government grants (excluding military). -3,145 -2,776 -3,028 -591 -778 -781 -779 -691 10 Balance on current account3. 4,339 -15,292 -15,961 -6,136 -7,584 -3,326 -3,711 -1,342 11 Not seasonally adjusted3.. -5,245 -6,382 -2,803 -6,326 -449 12 Change in U.S. government assets, other than official reserve assets, net (increase, —)..................................... -4,213 -3,679 -4,657 -838 -896 -1,176 -1,498 -1,086 13 Change in U.S. official reserve assets (increase, —)............. -2,530 -231 872 246 329 115 182 14 Gold................................................................................... -118 -65 -60 -65 15 Special Drawing Rights (SDRs)....................................... -78 -121 1,249 -29 -16 -104 -43 1,412 16 Reserve position in International Monetary Fund (IMF)., -2,212 -294 4,231 42 324 437 195 3,275 17 Foreign currencies.............................................................. -240 302 -4,543 47 -62 -4 -37 -4,440 18 Change in U.S. private assets abroad (increase, — )3. -43,865 -30,740 -54,963 -13,862 -14,417 -5,320 -8,833 -26,394 19 Bank-reported claims. ........................................... -21,368 -11,427 -33,957 -8,750 -6,270 -503 -5,622 -21,562 20 Nonbank-reported claims........................ -2,030 -1,700 -2,256 -1,,184 -2,222 267 -36 -265 21 Long-term............................................ 5 25 33 -279 -57 80 62 -52 22 Short-term........................................... -2,035 -1,725 -2,289 -905 -2,165 187 -98 -213 23 U.S. purchase of foreign securities, net. -8,852 -5,398 -3,389 -731 -949 -1,103 -467 -870 24 U.S. direct investments abroad, net3... -11,614 -12,215 -15,361 -3,197 -4,976 -3,981 -2,708 -3,697 25 Change in foreign official assets in the United States (increase, +)............................................................... 18,073 37,124 33,967 15,543 15,760 -5,685 4,852 19,040 26 U.S. Treasury securities................................................ 9,333 30,294 24,063 12,900 12,965 -5,728 3,029 13,797 27 Other U.S. government obligations............................ 573 2,308 656 973 117 211 443 -115 28 Other U.S. government liabilities5............................. 4,993 1,644 2,810 390 804 -312 350 1,968 29 Other U.S. liabilities reported by U.S. banks............. 969 773 5,043 909 1,456 -493 946 3,134 30 Other foreign official assets®........................................ 2,205 2,105 1,395 371 418 637 84 256 31 Change in foreign private assets in the United States (increase, -f-)3.................................................................. 18,897 13,746 29,293 4,522 2,336 6,090 10,637 10,230 32 U.S. bank-reported liabilities. 10,990 6,719 16,860 3,143 -314 1,836 7,965 7,373 33 U.S. nonbank-reported liabilities....................................... -507 257 1,676 425 495 248 986 —53 34 Long-term....................................................................... -958 -620 -49 -242 38 -68 106 -125 35 Short-term...................................................................... 451 877 1,725 667 457 316 880 72 36 Foreign private purchases of U.S. Treasury securities, net............................................................................... 2,783 563 2,248 -299 881 847 -1,053 1,573 37 Foreign purchases of other U.S. securities, net.............. 1,284 2,869 2,899 803 462 1,308 533 596 38 Foreign direct investments in the United States, net3.... 4,347 3,338 5,611 450 812 1,852 2,206 741 39 Allocation of SDRs............................................................... 40 Discrepancy.............................................................................. 9.300 -927 11.449 771 4,555 9,087 -1,562 -630 41 Owing to seasonal adjustments.......................................... 1,445 917 108 -2,455 1,431 42 Statistical discrepancy in recorded data before seasonal adjustment................................................................... 9.300 -927 11.449 -674 3,638 8,979 893 -2,061 Memo items: Changes in official assets: 43 U.S. official reserve assets (increase, —)........................ -2,530 -231 872 246 329 115 182 44 Foreign official assets in the United States (increase, +)., 13,080 35,480 31,157 15,153 14,956 -5,373 4,502 17,072 45 Changes in Organization of Petroleum Exporting Coun tries (OPEC) official assets in the Unites States (part of line 25 above)............................................................. 9,581 6,733 -570 1,024 1,963 -2,838 -1,592 1,897 46 Transfers under military grant programs (excluded from lines 1, 4, and 9 above)................................................. 373 194 274 71 75 57 69 73 11 Seasonal factors are no longer calculated for lines 13 through 46. excludes certain military sales to Israel from exports and excludes U.S. 2 Data are on an international accounts (IA) basis. Differs from the government interest payments from imports. census basis primarily because the IA basis includes imports into the 5 Primarily associated with military sales contracts and other transac U.S. Virgin Islands, and it excludes military exports, which are part of tions arranged with or through foreign official agencies. line 4. 6 Consists of investments in U.S. corporate stocks and in debt securi 3 Includes reinvested earnings of incorporated affiliates. ties of private corporations and state and local governments. 4 Differs from the definition of “net exports of goods and services” in the national income and product (GNP) account. The GNP definition Note. Data are from Bureau of Economic Analysis, Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Trade and Reserve Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1978 1979 Item 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments........................................ 115,156 121,150 143,575 13,274 12,901 13,451 13,282 13,132 13,507 14,452 2 GENERAL IMPORTS including merchandise for immediate con sumption plus entries into bonded warehouses...................................... 121,009 147,685 172,026 14,820 14,852 14,825 15,032 16,231 14,806 15,273 3 Trade balance...................................... -5,853 -26,535 -28,451 -1,545 -1,950 -1,374 -1,749 -3,099 -1,299 -821 Note. Bureau of Census data reported on a free-alongside-ship and are reported separately in the “service account”). On the import (f.a.s.) value basis. Effective January 1978, major changes were made in side, the largest single adjustment is the addition of imports into the coverage, reporting, and compiling procedures. The international- Virgin Islands (largely oil for a refinery on St. Croix), which are not accounts-basis data adjust the Census basis data for reasons of coverage included in Census statistics. and timing. On the export side, the largest adjustments are: (a) the addition of exports to Canada not covered in Census statistics, and (b) the exclusion Source. FT 900 “Summary of U.S. Export and Import Merchandise of military exports (which are combined with other military transactions Trade” (U.S. Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1978 1979 Type 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. Apr.® 1 Total.................................................... 18,747 19,312 18,650 18,935 17,967 18,650 20,468 r20,292 3 21,658 3 21,403 2 Gold stock, including Exchange Stabilization Fund1........................ 11,598 11,719 11,671 11,655 11,642 11,671 11,592 11,544 11,479 11,418 3 Special Drawing Rights2................... 2,395 2,629 4,374 3,097 1,522 1,558 2,661 2,672 3 2,667 3 2,602 4 Reserve position in International Monetary Fund............................... 4,434 4,946 1,047 4,147 1,099 1,047 1,017 1,120 3 1,121 31,097 5 Convertible foreign currencies4......... 320 18 1,558 36 3,704 4,374 5,198 *•4,956 6,391 6,286 1 Gold held under earmark at Federal Reserve Banks for foreign and 3 Beginning July 1974, the IMF adopted a technique for valuing the international accounts is not included in the gold stock of the United SDR based on a weighted average of exchange rates for the currencies States; see table 3.24. of 16 member countries. The U.S. SDR holdings and reserve position in 2 Includes allocations by the International Monetary Fund of SDRs as the IMF also are valued on this basis beginning July 1974. follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 4 Beginning November 1978, valued at current market exchange rates. million on Jan. 1, 1972; and $1,139 million on Jan. 1, 1979; plus net transactions in SDRs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A56 International Statistics □ May 1979 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 19782 1979 Asset account 1975 1976 1977 Aug. Sept. Oct. Nov. Dec. Jan. Feb.* All foreign countries 1Total, all currencies............................ 176,493 219,420 258,897 274,929 287,369 292,305 "295,643 "305,777 294,774 295,017 2 Claims on United States................. 6,743 7,889 11,623 10,024 14,976 12,169 r13,426 "76,690 15,340 15,065 3 Parent bank................................. 3,665 4,323 7,806 5,818 10,693 7,879 "9,046 "12,161 10,789 10,188 4 Other............................................ 3,078 3,566 3,817 4,206 4,283 4,290 "4,380 4,529 4,551 4,877 5 Claims on foreigners....................... 163,391 204,486 238,848 254,782 262,063 269,121 271,131 "277,767 267,772 267,728 6 Other branches of parent bank.. 34,508 45,955 55,772 58,746 63,493 67,748 "68,403 "70,340 66,653 64,249 7 Banks........................................... 69,206 83,765 91,883 92,811 95,222 98,104 101,043 "102,805 97,696 99,147 8 Public borrowers1....................... 5,792 10,613 14,634 23,354 23,896 23,936 22,993 23,679 23,716 24,550 9 Nonbank foreigners.................... 53,886 64,153 76,560 79,871 79,452 79,333 "78,692 "80,943 79,707 79,782 10 Other assets..................................... 6,359 7,045 8,425 10,123 10,330 11,015 "11,086 "11,320 11,662 12,224 11 Total payable in U.S. dollars............. 132,901 167,695 193,764 200,779 212,063 210,939 "218,289 "224,290 214,313 213,097 12 Claims on United States................. 6,408 7,595 11,049 9,219 14,168 11,328 " 12,530 " 15,732 14,506 14,127 13 Parent bank................................. 3,628 4,264 7,692 5,628 10,535 7,688 "8,877 "11,975 10,596 9,958 14 Other............................................ 2,780 3,332 3,357 3,591 3,633 3,640 "3,653 "3,757 3,910 4,169 15 Claims on foreigners....................... 123,496 156,896 178,896 187,041 193,457 194,882 "200,777 "203,498 194,417 193,269 16 Other branches of parent bank.. 28,478 37,909 44,256 46,326 50,880 52,887 "54,721 "55,410 51,799 49,615 17 Banks........................................... 55,319 66,331 70,786 69,560 71,892 72,644 76,473 "78,389 73,459 74,393 18 Public borrowers1....................... 4,864 9,022 12,632 20,255 20,505 20,301 19,618 19,868 20,092 20,613 19 Nonbank foreigners.................... 34,835 43,634 51,222 50,900 50,180 49,050 49,965 "49,831 49,067 48,648 20 Other assets..................................... 2,997 3,204 3,820 4,519 4,438 4,729 "4,982 5,060 5,390 5,701 United Kingdom 21 74,883 81,466 90,933 93,333 99,084 101,887 102,032 106,593 100,786 101,179 22 Claims on United States................. 2,392 3,354 4,341 2,624 2,940 3,119 3,706 5,370 3,960 3,912 23 Parent bank................................ 1,449 2,376 3,518 1,595 2,014 2,230 2,779 4,448 2,930 2,689 24 Other........................................... 943 978 823 1,029 926 889 927 922 1,030 1,223 25 Claims on foreigners................ 70,331 75,859 84,016 87,772 93,364 95,774 95,220 98,137 93,690 94,032 26 Other branches of parent bank.. 17,557 19,753 22,017 21,661 24,691 26,516 25,802 27,830 25,911 24,474 27 Banks.......................................... 35,904 38,089 39,899 40,350 42,677 43,926 44,353 45,013 42,531 44,032 28 Public borrowers1...................... 881 1,274 2,206 4,583 4,549 4,692 4,526 4,522 4,549 4,548 29 Nonbank foreigners................... 15,990 16,743 19,895 21,178 21,447 20,640 20,539 20,772 20,699 20,978 30 Other assets.................................... 2,159 2,253 2,576 2,937 2,780 2,994 3,106 3,086 3,136 3,235 57,361 61,587 66,635 64,449 70,008 70,209 71,761 75,860 70,502 70,525 32 Claims on United States................. 2,273 3,275 4,100 2,335 2,598 2,877 3,475 5,113 3,738 3,618 33 Parent bank................................. 1,445 2,374 3,431 1,481 1,895 2,187 2,727 4,386 2,878 2,610 34 Other............................................ 828 902 669 854 703 690 748 727 860 1,008 35 Claims on foreigners....................... 54,121 57,488 61,408 60,910 66,242 66,132 67,031 69,416 65,364 65,416 36 Other branches of parent bank.. 15,645 17,249 18,947 18,305 20,934 21,377 21,197 22,838 21,171 19,884 37 Banks........................................... 28,224 28,983 28,530 27,268 29,859 29,680 30,565 31,482 29,113 30,185 38 Public borrowers1....................... 648 846 1,669 3,544 3,471 3,595 3,467 3,317 3,342 3,414 39 Nonbank foreigners.................... . 9,604 10,410 12,263 11,793 11,978 11,480 11,802 11,779 11,738 11,933 40 Other assets..................................... 967 824 1,126 1,204 1,168 1,200 1,255 1,331 1,400 1,491 Bahamas and Caymans 41 Total, all currencies............................ 45,203 66,774 79,052 85,654 88,755 86,291 "89,720 "91,085 87,899 87,993 42 Claims on United States................. 3,229 3,508 5,782 5,620 10,053 7,247 r7,501 r8,985 9,753 8,994 43 Parent bank................................. 1,477 1,141 3,051 2,751 7,090 4,255 "4,437 "5,779 6,646 5,780 44 Other............................................ 1,752 2,367 2,731 2,869 2,963 2,992 "3,064 "3,206 3,107 3,214 45 Claims on foreigners........................ 41,040 62,048 71,671 77,949 76,651 76,868 "80,006 "79,774 75,792 76,507 46 Other branches of parent bank.. 5,411 8,144 11,120 12,134 12,348 12,618 "13,526 "12,906 11,477 11,841 47 Banks........................................... 16,298 25,354 27,939 29,749 29,472 30,317 "33,060 "33,675 31,638 31,534 48 Public borrowers1....................... 3,576 7,105 9,109 12,461 12,362 12,094 11,535 11,520 11,392 12,125 49 Nonbank foreigners.................... 15,756 21,445 23,503 23,605 22,469 21,839 "21,885 21,673 21,285 21,007 50 Other assets.................................... 933 1,217 1,599 2,085 2,051 2,176 "2,213 "2,326 2,354 2,492 51 Total payable in U.S. dollars............. 41,887 62,705 73,987 79,701 83,007 80,223 "83,710 "84,767 81,669 81,736 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Overseas Branches A57 3.13 Continued 19782 1979 Liability account 1975 1976 1977 Aug. Sept. Oct. Nov. Dec. Jan. Feb.* All foreign countries 52 Total, all currencies. 176,493 219,420 258,897 274,929 287,369 292,305 '295,643 '305,777 19 A,11A 295,017 53 To United States........................... 20,221 32,719 44,154 52,441 49,325 51,506 '57,102 '58,650 52,366 53,717 54 Parent bank............................... 12,165 19,773 24,542 r27,004 r22,930 r25,486 '30,032 '28,843 24,026 23,583 5 5 6 5 N O o th n e b r a b n a k n s k .. s . .. i . n .. . U ... n .. i .. t . e .. d .. . S ... t . a .. t . e .. s .. . . . | 8,057 12,946 19,613 r1 7 7 , , 6 7 5 7 9 8 r 1 1 0 6, , 3 0 3 6 1 4 r1 8 7 , , 3 6 6 5 2 8 '17 9 , , 9 0 8 8 6 4 ' ' 1 1 7 2, , 4 3 6 4 7 0 2 8 0 , , 2 1 2 1 1 9 2 9 0 , , 1 9 6 7 2 2 57 To foreigners................................. 149,815 179,954 206,579 213,974 228,733 231,152 '228,876 '236,935 232,155 231,038 58 Other branches of parent bank. 34,111 44,370 53,244 56,955 61,599 65,010 65,903 68,064 65,318 62,612 59 Banks......................................... 72,259 83,880 94,140 89,234 97,629 95,956 93,759 '97,556 92,795 94,306 60 Official institutions................... 22,773 25,829 28,110 31,461 33,086 32,246 30,922 30,650 31,087 31,667 61 Nonbank foreigners.................. 20,672 25,877 31,085 36,324 36,419 37,940 '38,292 '40,665 42,955 42,453 62 Other liabilities.................. 6,456 6,747 8,163 8,514 9,311 9,647 '9,665 '10,192 10,253 10,262 63 Total payable in U.S. dollars. 135,907 173,071 198,572 204,938 215,496 215,518 '222,873 '230,160 220,210 219,734 64 To United States........................... 19,503 31,932 42,881 50,325 47,171 49,273 '.55,148 '56,514 50,336 51,527 65 Parent bank............................... 11,939 19,559 24,213 r26,112 '21,980 '24,551 '29,202 '27,818 23,088 22,522 6 67 6 N O o th n e b r a b n a k n s k .. s . .. i . n .. . U ... n ... i . t . e .. d .. . S ... t . a .. t . e .. s .. . . . ; 7,564 12,373 18,669 '16 7 , , 9 2 2 8 7 6 r1 9 5 , , 7 4 2 67 4 '16 8 , , 7 0 1 0 4 8 '17 8 , , 1 8 3 1 3 3 ' ' 1 1 2 6 , , 2 4 1 8 3 3 1 7 9 , , 9 2 6 88 0 2 8 0 , , 8 1 5 49 6 68 To foreigners................................. 112,879 137,612 151,363 150,478 163,626 161,542 '162,756 '168,380 164,299 162,474 69 Other branches of parent bank. 28,217 37,098 43,268 45,620 49,978 52,052 53,409 53,950 51,356 48,697 70 Banks......................................... 51,583 60,619 64,872 55,285 63,271 58,912 '58,663 '62,849 58,491 59,392 71 Official institutions................... 19,982 22,878 23,972 26,184 27,367 26,341 25,377 25,118 25,517 26,096 72 Nonbank foreigners.................. 13,097 17,017 19,251 23,389 23,010 24,237 '25,307 '26,463 28,935 28,289 73 Other liabilities. 3,526 3,527 4,328 4,135 4,699 4,703 4,969 '5,266 5,575 5,733 United Kingdom 74 Total, all currencies..................... 74,883 81,466 90,933 93,333 99,084 101,887 102,032 106,593 100,786 101,179 75 To United States..................... 5,646 5,997 7,753 6,978 8,033 8,347 9,053 '10,675 8,118 9,538 76 Parent bank......................... 2,122 1,198 1,451 1,905 1,872 2,176 2,367 2,669 1,585 2,055 7 7 7 8 N O o th n e b r a b n a k n s k .. s . .. i . n .. . U ... n .. i .. t . e .. d .. . S ... t . a .. t . es.. } 3,523 4,798 6,302 2 2, , 7 2 8 9 3 0 3 3 , , 0 1 1 5 1 0 2 3 , , 9 2 4 2 9 2 3 3 , , 4 2 5 3 2 4 '3 4 , , 6 3 1 9 1 5 2 3 , , 6 8 9 4 3 0 4 3 , , 2 2 6 1 7 6 79 To foreigners................................. 67,240 73,228 80,736 82,991 87,678 89,979 89,347 '92,257 88,942 87,789 80 Other branches of parent bank. 6,494 7,092 9,376 11,708 12,006 12,175 13,153 12,928 12,856 11,303 81 Banks......................................... 32,964 36,259 37,893 35,293 37,677 39,277 38,167 '40,252 36,558 37,221 82 Official institutions................... 16,553 17,273 18,318 19,863 21,493 21,193 20,182 20,181 19,700 20,313 83 Nonbank foreigners.................. 11,229 12,605 15,149 16,127 16,502 17,334 17,845 18,896 19,828 18,961 84 Other liabilities............................. 1,997 2,241 2,445 3,364 3,373 3,561 3,632 3,661 3,726 3,843 85 Total payable in U.S. dollars........... 57,820 63,174 67,573 64,918 IQ,111 71,158 72,812 77,030 72,048 72,293 86 To United States........................... 5,415 5,849 7,480 6,606 7,650 7,985 8,666 ' 10,273 7,736 9,179 87 Parent bank............................... 2,083 1,182 1,416 1,852 1,805 2,116 2,321 2,618 1,539 2,018 88 Other banks in United States.. 2,209 3,092 2,902 3,178 4,307 2,601 3,122 89 Nonbanks.................................. } 3,332 4,667 6,064 2,545 2,753 2,967 3,167 '3,348 3,596 4,039 90 To foreigners................................. 51,447 56,372 58,977 57,015 61,231 61,802 62,631 '65,271 62,629 61,405 91 Other branches of parent bank. 5,442 5,874 7,505 9,163 9,317 9,301 10,302 9,764 10,014 8,393 92 Banks......................................... 23,330 25,527 25,608 20,601 22,936 23,260 23,044 '25,622 22,058 22,477 93 Official institutions................... 14,498 15,423 15,482 16,113 17,659 17,106 16,317 16,309 15,834 16,544 94 Nonbank foreigners.................. 8,176 9,547 10,382 11,138 11,319 12,135 12,968 13,576 14,723 13,991 95 Other liabilities............................. 959 953 1,116 1,297 1,346 1,371 1,515 1,486 1,683 1,709 Bahamas and Caymans 96 Total, all currencies. 45,203 66,774 79,052 85,654 88,755 86,291 '89,720 '91,085 87,899 87,993 97 To United States........................... 11,147 22,721 32,176 39,532 34,378 35,676 '40,629 '38,781 36,927 36,447 98 Parent bank............................... 7,628 16,161 20,956 '21,268 '16,750 '18,046 '22,252 19,806 17,021 15,613 99 Other banks in United States.. 4,509 5,511 4,415 4,852 '6,199 4,308 4,888 100 Nonbanks.................................. } 3,520 6,560 11,220 '13,755 '12,117 '13,215 '13,525 '12,776 15,598 15,946 101 To foreigners................................. 32,949 42,899 45,292 44,597 52,574 48,955 '47,402 '50,447 49,153 49,545 102 Other branches of parent bank... 10,569 13,801 12,816 11,436 14,762 15,635 14,715 16,115 14,266 13,697 103 Banks......................................... 16,825 21,760 24,717 21,884 27,372 22,471 '21,932 '23,082 22,290 23,310 104 Official institutions................... 3,308 3,573 3,000 4,604 4,477 4,449 4,354 4,208 4,602 4,429 105 Nonbank foreigners.................. 2,248 3,765 A,159 6,673 5,963 6,400 '6,401 '7,042 7,995 8,109 106 Other liabilities. 1,106 1,154 1,584 1,525 1,803 1,660 '1,689 '1,857 1,819 2,001 107 Total payable in U.S. dollars........... 4422,,119977 63,417 74,463 81,314 84,317 81,324 '85,012 '86,364 83,152 83,332 1 In May1978 a broader category of claims on foreign public borrowers, 2 In May 1978 the exemption level for branches required to report including corporations that are majority owned by foreign governments, was increased, which reduced the number of reporting branches. replaced the previous, more narrowly defined claims on foreign official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A58 International Statistics □ May 1979 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1978 1979 Item 1976 1977 1978 Sept.r Oct.r Nov.r Dec.r Jan. Feb .p Mar.* A. By type 1 Total1..................................................................... 95,634 131,097 162,303 145,401 152,203 156,285 162,303 162,656 159,770 154,195 2 Liabilities reported by banks in the United States2............................................................. 17,231 18,003 23,086 19,930 22,040 21,719 23,086 22,600 23,120 23,126 3 U.S. Treasury bills and certificates3..................... 37,725 47,820 67,650 55,014 57,967 62,635 67,650 68,415 65,558 59,652 U.S. Treasury bonds and notes 4 Marketable......................................................... 11,788 32,164 35,877 35,577 36,153 36,222 35,877 36,026 35,509 36,033 5 Nonmarketable4................................................ 20,648 20,443 20,970 20,304 21,426 20,993 20,970 20,952 20,912 20,471 6 U.S. securities other than U.S. Treasury securities5........................................................ 8,242 12,667 14,720 14,576 14,617 14,716 14,720 14,663 14,671 14,913 B. By area 7 Total........................................ 95,634 131,097 162,303 145,401 152,203 156,285 162,303 162,656 159,770 154,195 8 Western Europe1..................... 45,882 70,748 92,946 80,387 85,118 88,412 92,946 94,397 92,565 90,112 9 Canada..................................... 3,406 2,334 2,486 1,497 2,619 2,446 2,486 2,150 1,911 3,088 10 Latin America and Caribbean 4,926 4,649 5,029 3,902 4,615 4,499 5,029 4,330 4,407 4,193 11 Asia......................................... 37,767 50,693 58,656 56,870 56,928 57,834 58,656 58,962 57,727 53,995 12 Africa....................................... 1,893 1,742 2,443 2,006 2,184 2,301 2,443 2,299 2,371 2,135 13 Other countries6..................... 1,760 931 743 739 741 793 743 518 789 672 1 Includes the Bank for International Settlements. 5 Debt securities of U.S. government corporations and federally 2 Principally demand deposits, time deposits, bankers acceptances, sponsored agencies, and U.S. corporate stocks and bonds. commercial paper, negotiable time certificates of deposit, and borrowings 6 Includes countries in Oceania and Eastern Europe. under repurchase agreements. 3 Includes nonmarketable certificates of indebtedness (including those Note. Based on Treasury Department data and on data reported to payable in foreign currencies through 1974) and Treasury bills issued to the Treasury Department by banks (including Federal Reserve Banks) official institutions of foreign countries. and securities dealers in the United States. 4 Excludes notes issued to foreign official nonreserve agencies. Includes For a description of the changes in the International Statistics tables, bonds and notes payable in foreign currencies. see July 1978 Bulletin, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank-reported Data A59 3.15 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1978 1979 1975 1976 1977 Sept. Oct. Nov. Dec. Jan. Feb.p Mar.p A. By holder and type of liability 1 All foreigners.............. 95,590 110,657 126,168 -144,251 150,296 158,231 166,011 163,824 163,069 165,946 2 Banks’ own liabilities. r68,623 *•71,087 *•75,265 77,711 74,210 76,106 84,185 3 Demand deposits... 13,564 16,803 18,996 17,204 *•17,553 18,264 19,199 17,785 17,201 16,640 4 Time deposits1....... 10,267 11,347 11,521 12,154 12,279 12,514 12,298 12,120 11,967 12,404 5 Other2..................... r6,695 *•9,652 *•8,641 9,527 8,889 9,194 8,301 6 Own foreign offices3 r32,570 *•31,603 *■35,847 36,687 35,416 37,744 46,839 7 Banks’custody liabilities4..................................... r75,628 *79,209 *•82,966 88,300 89,614 86,964 81,761 8 U.S. Treasury bills and certificates5................. 37,414 40,744 48,906 56,665 59,068 63,130 68,178 68,999 66,352 60,587 9 Other negotiable and readily transferable instruments6................................................ >•16,598 *•17,355 *•17,439 17,581 18,197 18,304 19,011 10 Other................................................................... 2,366 2,786 2,397 2,541 2,418 2,307 2,163 11 Nonmonetary international and regional organizations7................................................ 5,699 5,714 3,274 3,406 2,929 2,225 2,617 2,317 2,095 2,364 12 Banks’ own liabilities. 767 336 417 916 762 506 769 13 Demand deposits... 139 290 231 144 133 153 330 333 272 279 14 Time deposits1....... 148 205 139 99 116 102 94 88 102 96 15 Other2..................... 523 87 161 492 340 131 394 16 Banks’ custody liabilities4..................................... 2,639 2,593 1,809 1,701 1,555 1,589 1,595 17 U.S. Treasury bills and certificates................. 2,554 2,701 706 1,036 403 183 201 183 193 211 18 Other negotiable and readily transferable instruments6.............................................. 1,603 2,189 1,625 1,499 1,367 1,393 1,382 19 Other................................................................... 1 1 1 1 5 3 2 20 Official institutions8. 50,461 54,956 65,822 r74,944 *79,999 *"84,050 90,481 90,828 88,522 82,779 21 Banks’ own liabilities. r9,458 *•11,479 *•10,829 11,732 10,504 11,071 10,392 22 Demand deposits... 2,644 3,394 3,528 r3,310 *•3,050 *•3,416 3,389 2,699 2,759 2,857 23 Time deposits1....... 3,423 2,321 1,797 2,563 2,399 2,345 2,334 2,288 2,169 2,529 24 Other2..................... 3,585 6,030 *•5,068 6,008 5,517 6,143 5,006 25 Banks’ custody liabilities4................................. r65,486 *•68,520 *•73,221 78,749 80,324 77,451 72,387 26 U.S. Treasury bills and certificates5............. 34,199 37,725 47,820 55,014 57,958 62,331 67,394 68,228 65,402 59,652 27 Other negotiable and readily transferable instruments6............................................ r10,227 *•10,352 *•10,783 11,185 11,905 11,861 12,692 28 Other.............................................................. 245 210 107 170 191 188 43 29 Banks9. 29,330 37,174 42,335 r50,542 *•51,372 *"55,363 56,861 54,683 55,800 64,993 30 Banks’ own liabilities............ r45,771 *•46,417 *•50,529 52,035 49,932 51,042 60,012 31 Unaffiliated foreign banks. r13,201 *•14,814 *"14,682 15,349 14,517 13,299 13,172 32 Demand deposits............. 7,534 9,104 10,933 *•9,710 *•10,148 *"10,066 11,239 10,425 9,426 9,344 33 Time deposits1................. 1,873 2,297 2,040 1,269 *•1,564 1,735 1,489 1,479 1,322 1,261 34 Other2............................... *•2,222 *•3,102 *"2,881 2,621 2,612 2,551 2,567 35 Own foreign offices3. r32,570 *•31,603 *•35,847 36,687 35,416 37,744 46,839 36 Banks’ custody liabilities4................................. 4,771 4,955 4,834 4,826 4,751 4,757 4,981 37 U.S. Treasury bills and certificates.............. 119 307 381 371 300 302 399 425 38 Other negotiable and readily transferable instruments6............................................ 2,536 2,447 2,561 2,417 2,422 2,384 2,496 39 Other............................................................... 1,928 2,126 1,902 2,109 2,027 1,973 2,060 40 Other foreigners. 10,100 12,814 14,736 15,359 *15,996 16,593 16,052 15,995 16,653 15,810 41 Banks’ own liabilities. 12,627 *•12,855 13,490 13,028 13,012 13,487 13,012 42 Demand deposits... 3,248 4,015 4,304 4,039 4,222 4,628 4,242 4,328 4,744 4,161 43 Time deposits1....... 4,823 6,524 7,546 8,222 *■8,201 8,331 8,380 8,264 8,374 8,518 44 Other2..................... 365 432 531 406 420 368 333 45 Banks’ custody liabilities4................................. 2,732 3,141 3,103 3,024 2,983 3,166 2.798 46 U.S. Treasury bills and certificates............... 325 198 240 308 326 245 282 285 357 299 47 Other negotiable and readily transferable instruments6............................................ 2,231 2,367 2,471 2,480 2,503 2,665 2,440 48 Other............................................................... 193 448 387 262 195 143 59 49 Memo: Negotiable time certificates of deposit held in custody for foreigners....................... *•10,058 *•10,992 *■10,821 10,926 11,080 10,988 11,187 1 Excludes negotiable time certificates of deposit, which are included 6 Principally bankers acceptances, commercial paper, and negotiable in “Other negotiable and readily transferable instruments.” time certificates of deposit. 2 Includes borrowings under repurchase agreements. 7 Principally the International Bank for Reconstruction and Develop 3 U.S. banks: includes amounts due to own foreign branches and ment, and the Inter-American and Asian Development Banks. foreign subsidiaries consolidated in “Consolidated Report of Condition” 8 Foreign central banks and foreign central governments and the filed with bank regulatory agencies. Agencies, branches, and majority- Bank for International Settlements. owned subsidiaries of foreign banks: principally amounts due to head 9 Excludes central banks, which are included in “Official institutions.” office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank. Note. Data for time deposits prior to April 1978 represent short-term 4 Financial claims on residents of the United States, other than long only. term securities, held by or through reporting banks. For a description of the changes in the International Statistics tables, 5 Includes nonmarketable certificates of indebtedness (including those see July 1978 Bulletin, p. 612. payable in foreign currencies through 1974) and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A60 International Statistics □ May 1979 3.15 Continued 1978 1979 Item 1975 1976 1977 Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* B. By area and country 1 95,590 110,657 126,168 "144,251 "150,296 "158,231 166,011 163,824 163,069 165,946 2 Foreign countries.................................................... 89,891 104,943 122,893 "140,845 "147,367 "156,006 163,394 161,507 160,975 163,581 3 Europe.................................................................... 44,072 47,076 60,295 "69,275 "73,171 "78,129 "84,605 83,774 81,310 81,078 4 Austria................................................................ 759 346 318 431 473 514 506 555 498 524 5 2,893 2,187 2,531 "2,353 "2,449 2,471 2,546 2,481 2,177 2,125 6 Denmark............................................................ 329 356 770 1,673 1,734 1,827 1,946 2,036 2,074 2,131 7 Finland............................................................ 391 416 323 415 424 388 346 379 357 361 8 France............................................................. 7,726 4,876 5,269 8,060 8,421 8,817 8,631 8,377 8,153 8,613 9 Germany............................................................. 4,543 6,241 7,239 11,206 13,345 15,652 17,286 15,770 13,867 12,995 10 Greece................................................................. 284 403 603 865 887 907 826 683 761 671 11 1,059 3,182 6,857 7,394 7,346 7,761 7,674 8,723 8,056 8,145 12 Netherlands........................................................ 3,407 3,003 2,869 "2,743 "2,501 "2,518 2,402 2,536 2,786 2,765 13 Norway............................................................... 994 782 944 1,208 1,210 1,102 1,271 1,411 1,445 1,531 14 Portugal.............................................................. 193 239 273 521 386 379 330 254 246 279 15 Spain................................................................... 423 559 619 765 702 885 778 759 704 731 16 Sweden................................................................ 2,277 1,692 2,712 3,341 3,187 3,216 3,131 2,955 2,656 2,520 17 Switzerland......................................................... 8,476 9,460 12,343 "12,898 "14,195 "15,463 18,564 19,864 19,641 18,457 18 Turkey.............................................................. 118 166 130 226 164 163 157 141 141 132 19 United Kingdom................................................ 6,867 10,018 14,125 "11,938 "12,232 12,826 14,214 13,080 13,639 15,348 20 Yugoslavia......................................................... 126 189 232 167 158 190 254 174 184 176 21 Other Western Europe1.................................... 2,970 2,673 1,804 "2,745 "3,012 "2,777 3,334 3,296 3,691 3,258 22 U.S.S.R.............................................................. 40 51 98 65 82 73 82 150 62 59 23 Other Eastern Europe2..................................... 197 236 236 262 262 198 325 150 171 257 24 Canada................................................................... 2,919 4,659 4,607 "5,131 "7,465 "8,073 6,963 6,622 7,036 8,043 25 Latin America and Caribbean............................ 15,028 19,132 23,670 29,216 "28,461 31,111 31,470 30,909 32,241 37,810 26 Argentina........................................................... 1,146 1,534 1,416 1,393 1,650 1,504 1,498 1,682 1,789 1,734 27 Bahamas............................................................. 1,874 2,770 3,596 7,251 "4,870 6,309 6,615 7,391 7,276 13,087 28 Bermuda............................................................. 184 218 321 409 387 425 428 386 463 374 29 Brazil.................................................................. 1,219 1,438 1,396 1,275 1,441 1,234 1,130 1,099 1,150 1,134 30 British West Indies........................................... 1,311 1,877 3,998 5,380 "5,921 6,692 5,978 5,715 6,844 6,765 31 Chile................................................................... 319 337 360 351 333 341 399 376 358 549 32 Colombia............................................................ 417 1,021 1,221 1,431 1,483 1,612 1,756 1,769 1,867 1,925 33 Cuba................................................................... 6 6 6 7 7 7 13 7 13 6 34 Ecuador.............................................................. 120 320 330 405 369 348 322 321 274 330 35 Guatemala 3........................................................ 347 368 357 416 352 386 339 36 Jamaica3............................................................. 78 57 43 52 72 43 75 37 Mexico................................................................ 2,070 2,870 2,876 3,112 3,101 3,413 3,397 3,178 3,158 3,178 38 Netherlands Antilles4........................................ 129 158 196 317 352 368 308 321 361 318 39 Panama............................................................... 1,115 1,167 2,331 2,741 2,396 2,808 2,992 2,818 2,486 2,501 40 243 257 287 321 323 337 363 320 347 404 41 Uruguay............................................................. 172 245 243 197 210 211 233 222 220 234 42 Venezuela............................................................ 3,309 3,118 2,929 2,562 3,696 3,550 3,809 3,336 3,705 3,168 43 Other Latin America and Caribbean............... 1,393 1,797 2,167 1,639 "1,494 1,553 1,760 1,544 1,500 1,691 44 22,384 29,766 30,488 "33,488 "34,542 34,843 36,394 36,650 36,452 32,929 45 China (Mainland).............................................. 123 48 53 46 49 57 67 65 105 273 46 China (Taiwan).................................................. 1,025 990 1,013 1,280 1,319 1,247 499 546 488 605 47 Hong Kong........................................................ 605 894 1,094 1,250 1,368 1,189 1,256 1,400 1,436 1,252 48 India................................................................... 115 638 961 833 899 843 790 804 838 857 49 Indonesia............................................................ 369 340 410 348 575 439 449 575 357 479 50 Israel................................................................... 387 392 559 432 453 469 674 669 625 635 51 Japan................................................................... 10,207 14,363 14,616 19,933 19,937 21,355 21,969 21,428 21,764 18,108 52 Korea.................................................................. 390 438 602 776 790 750 795 771 827 748 53 Philippines.......................................................... 700 628 687 623 594 578 639 612 544 642 54 Thailand.............................................................. 252 277 264 290 352 279 427 379 307 277 55 Middle East oil-exporting countries5............... 7,355 9,360 8,979 "6,337 "6,823 6,381 7,420 8,120 7,864 7,816 56 Other Asia.......................................................... 856 1,398 1,250 1,341 1,384 1,256 1,411 1,283 1,297 1,236 57 3,369 2,298 2,535 2,645 2,540 2,636 2,886 2,693 2,804 2,650 58 Egypt................................................................... 342 333 404 417 322 312 404 337 278 329 59 Morocco............................................................. 68 87 66 74 84 30 32 29 32 43 60 South Africa...................................................... 166 141 174 238 266 294 168 179 207 242 61 Zaire................................................................... 62 36 39 45 39 43 43 48 42 50 62 Oil-exporting countries6.................................... 2,240 1,116 1,155 1,270 1,230 1,335 1,525 1,379 1,549 1,256 63 Other Africa....................................................... 491 585 698 601 600 622 715 721 697 729 64 Other countries...................................................... 2,119 2,012 1,297 1,090 1,189 "1,214 1,076 860 1,131 1,072 65 Australia............................................................. 2,006 1,905 1,140 899 975 "977 838 655 933 862 66 All other............................................................. 113 107 158 191 213 236 239 204 198 211 67 Nonmonetary international and regional organizations................................................... 5,699 5,714 3,274 3,406 2,929 2,225 2,617 2,317 2,095 2,364 68 International...................................................... 5,415 5,157 2,752 2,339 1,789 1,033 1,485 1,210 919 1,189 69 Latin American regional................................... 188 267 278 799 856 870 808 809 865 872 70 Other regional7.................................................. 96 290 245 269 284 323 324 299 311 303 1 Includes the Bank for International Settlements. Beginning April 6 Comprises Algeria, Gabon, Libya, and Nigeria. 1978, also includes Eastern European countries not listed in line 23. 7 Asian, African, Middle Eastern, and European regional organizations, 2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German except the Bank for International Settlements, which is included in Democratic Republic, Hungary, Poland, and Romania. “Other Western Europe.” 3 Included in “Other Latin America and Caribbean” through March 1978. Note. For a description of the changes in the International Statistics 4 Includes Surinam through December 1975. tables, see July 1978 Bulletin, p. 612. 5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank-reported Data A61 3.16 BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 1979 Area and country 1975 1976 1977 Sept. Oct. Nov. Dec. Jan. Feb.? Mar.p 1 58,308 79,301 90,206 r95,101 '97,097 '105,425 114,606 105,406 103,799 108,443 58,275 79,261 90,163 '95,062 *•97,057 '105,379 114,550 105,366 103,759 108,404 3 Europe.................................................................... 11,109 14,776 18,114 r18,469 *•19,345 '20,565 24,181 20,743 20,454 21,199 4 Austria................................................................ 35 63 65 95 111 142 140 147 115 177 5 Belgium-Luxembourg......................................... 286 482 561 r969 '1,061 1,232 1,200 1,504 1,376 1,798 6 Denmark............................................................. 104 133 173 147 160 193 254 172 170 166 7 180 199 172 221 232 260 305 281 264 295 8 1,565 1,549 2,082 '2,832 2,752 2,716 3,737 2,629 2,275 2,864 9 380 509 644 742 808 838 900 840 717 887 10 Greece.................................................................. 290 279 206 126 161 134 164 162 169 191 11 443 993 1,334 *•1,019 M,358 1,453 1,504 1,402 1,395 1,308 12 305 315 338 380 494 602 680 681 619 581 13 131 136 162 263 238 282 299 251 252 203 14 Portugal.............................................................. 30 88 175 99 106 180 171 169 173 209 15 424 745 722 735 *•893 980 1,110 905 1,103 908 16 198 206 218 325 348 465 537 449 388 313 17 199 379 564 871 781 1,045 1,283 1,051 970 1,069 18 164 249 360 305 293 283 283 179 132 143 19 5,170 7,033 8,964 r7,958 *•8,115 '8,417 10,124 8,444 8,886 8,564 20 Yugoslavia.......................................................... 210 234 311 307 293 302 363 400 409 448 21 Other Western Europe1..................................... 76 85 86 129 *•138 107 122 135 110 124 22 U.S.S.R............................................................... 406 485 413 370 387 321 366 327 309 319 23 Other Eastern Europe2..................................... 513 613 566 575 617 612 638 617 621 630 24 Canada.................................................................. 2,834 3,319 3,355 r3,453 *•3,610 '4,522 5,142 4,961 5,049 5,185 25 Latin America and Caribbean.............................. 23,863 38,879 45,850 r49,721 *•49,295 '54,346 56,507 52,372 50,250 54,133 26 Argentina............................................................ 1,377 1,192 1,478 1,690 '1,461 1,698 2,266 2,134 2,360 2,534 27 Bahamas.............................................................. 7,583 15,464 19,858 r19,272 *•19,210 '23,546 21,118 20,873 18,640 20,000 28 104 150 232 141 352 141 189 175 155 150 29 3,385 4,901 4,629 5,252 5,596 6,137 6,251 6,259 6,119 6,574 30 British West Indies............................................ 1,464 5,082 6,481 8,397 '7,178 6,432 9,173 5,368 5,122 7,297 31 Chile.................................................................... 494 597 675 742 832 862 968 1,012 939 964 32 751 675 671 727 793 936 1,012 1,054 1,019 1,004 33 14 13 10 1 * 4 * * * 4 34 252 375 517 646 621 680 705 700 768 839 35 Guatemala 3........................................................ 79 85 89 94 87 109 89 36 Jamaica 3.............................................................. 46 45 49 40 37 48 61 37 3,745 4,822 4,909 '5,011 4,927 5,255 5,417 5,449 5,398 5,561 38 Netherlands Antilles4......................................... 72 140 224 230 212 242 268 259 222 282 39 1,138 1,372 1,410 '2,301 '2,485 2,531 3,074 3,179 3,493 2,850 40 Peru..................................................................... 805 933 962 967 945 931 918 873 846 835 41 Uruguay............................................................. 57 42 80 51 63 58 52 50 44 46 42 1,319 1,828 2,318 *•2,747 3,105 3,367 3,474 3,324 3,481 3,525 43 Other Latin America and Caribbean............... 1,302 1,293 1,394 rl,421 1,386 1,388 1,487 1,538 1,487 1,519 44 17,706 19,204 19,236 '20,195 '21,565 '22,743 25,511 24,232 25,103 24,957 45 China (Mainland)............................................... 22 3 10 8 10 6 4 15 13 16 46 China (Taiwan).................................................. 1,053 1,344 1,719 *•1,242 1,285 1,356 1,499 1,457 1,767 1,841 47 Hong Kong........................................................ 289 316 543 *•1,017 '1,484 1,385 1,573 1,620 1,952 1,891 48 India.................................................................... 57 69 53 76 66 46 54 61 60 52 49 246 218 232 152 144 188 143 141 123 124 50 721 755 584 544 555 719 872 996 896 909 51 10,944 11,040 9,839 '10,303 '10,629 11,997 12,734 12,566 12,220 12,783 52 1,791 1,978 2,336 1,933 1,788 '1,792 2,277 2,239 2,478 2,545 53 Philippines.......................................................... 534 719 594 730 732 717 680 607 692 660 54 520 442 633 633 734 758 753 753 830 774 55 Middle East oil-exporting countries5............... 744 1,459 1,746 2,200 '2,127 2,188 3,118 2,333 2,487 1,945 56 Other Asia.......................................................... 785 863 947 1,357 2,012 1,592 1,804 1,446 1,585 1,417 57 1,933 2,311 2,518 r2,161 2,219 2,163 2,221 2,145 2,092 1,969 58 123 126 119 67 56 68 107 82 83 73 59 Morocco.............................................................. 8 27 43 38 40 36 82 97 88 66 60 South Africa....................................................... 657 957 1,066 1,022 990 906 860 838 760 701 61 181 112 98 82 161 162 164 156 155 155 62 Oil-exporting countries6.................................... 382 524 510 406 438 439 452 438 456 455 63 581 565 682 *•547 534 551 556 533 551 519 64 Other countries...................................................... 830 772 1,090 1,063 1,023 1,041 988 914 812 961 65 700 597 905 *•895 879 894 877 792 704 830 66 All other.............................................................. 130 175 186 '169 145 147 111 122 108 131 67 Nonmonetary international and regional 33 40 43 39 41 45 56 40 39 39 1 Includes the Bank for International Settlements. Beginning April 6 Comprises Algeria, Gabon, Libya, and Nigeria. 1978, also includes Eastern European countries not listed in line 23. 7 Excludes the Bank for International Settlements, which is included 2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German in “Other Western Europe.” Democratic Republic, Hungary, Poland, and Romania. 3 Included in “Other Latin America and Caribbean” through March Note. Data for period prior to April 1978 include claims of banks’ 1978. domestic customers on foreigners. For a description of the changes in 4 Includes Surinam through December 1975. the International Statistics tables, see July 1978 Bulletin, p. 612. 5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A62 International Statistics □ May 1979 3.17 BANKS’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 1979 Type of claim 1975 1976 1977 Sept.r Oct.r Nov.r Dec. Jan. Feb.* Mar.* 1 Total....................................................................... 58,308 79,301 90,206 104,157 125,616 2 Banks’ own claims on foreigners......................... 95,101 97,097 105,425 114,606 105,406 103,799 108,443 3 Foreign public borrowers................................. 8,053 8,378 9,235 10,047 10,304 10,499 10,632 4 Own foreign offices1.......................................... 35,005 36,581 40,403 40,882 37,933 35,581 36,845 5 Unaffiliated foreign banks................................. 31,539 30,912 33,552 40,379 34,494 34,649 37,487 6 Deposits.......................................................... 4,463 4,002 4,396 5,506 4,670 5,146 6,113 7 Other............................................................... 27,076 26,910 29,157 34,873 29,824 29,503 31,374 8 All other foreigners............................................ 20,504 21,225 22,234 23,298 22,674 23,070 23,479 9 Claims of banks’ domestic customers2............... 9,056 11,009 10 Deposits.............................................................. 500 972 11 Negotiable and readily transferable in struments 3................................................ 3,724 4,762 12 Outstanding collections and other claims4.... 5,467 5,756 6,176 4,832 5,275 13 Memo: Customer liability on acceptances 12,723 14,837 1 U.S. banks: includes amounts due from own foreign branches and 3 Principally negotiable time certificates of deposit and bankers ac foreign subsidiaries consolidated in “Consolidated Report of Condition” ceptances. filed with bank regulatory agencies. Agencies, branches, and majority- 4 Data for March 1978 and for period prior to that are outstanding owned subsidiaries of foreign banks: principally amounts due from head collections only. office or parent foreign bank, and foreign branches, agencies, or whollyowned subsidiaries of head office or parent foreign bank. Note. Beginning April 1978, data for banks’ own claims are given 2 Assets owned by customers of the reporting bank located in the on a monthly basis, but the data for claims of banks’ domestic customers United States that represent claims on foreigners held by reporting banks are available on a quarterly basis only. for the account of their domestic customers. For a description of the changes in the International Statistics tables, see July 1978 Bulletin, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank-reported Data A63 3.18 BANKS’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 1979 Maturity; by borrower and area 1978 1979 June r Sept. Dec.* Mar. June Sept. 1 Total......................................................................... 55,433 59,907 73,250 By borrower 2 Maturity of 1 year or less 1...................................... 44,103 47,055 57,982 3 Foreign public borrowers.................................... 3,067 3,702 4,497 4 All other fore’gners.............................................. 41,036 43,353 53,486 5 Maturity of over 1 year 1......................................... 11,330 12,852 15,268 6 Foreign public borrowers.................................... 2,931 3,925 5,315 7 All other foreigners.............................................. 8,399 8,927 9,952 By area Maturity of 1 year or less1 8 Europe................................................................... 9,627 10,454 14,934 9 Canada.................................................................. 1,598 1,948 2,662 10 Latin America and Caribbean............................ 17,203 18,759 20,813 11 Asia....................................................................... 13,695 13,769 17,500 12 Africa.................................................................... 1,457 1,535 1,512 13 Allother2.............................................................. 523 591 562 Maturity of over 1 year1 14 Europe.......................................... ... 2,920 3,104 3,163 15 Canada........................................... 344 794 1,426 16 Latin America and Caribbean... . . . 5,886 6,859 8,444 17 Asia................................. 1,298 1,305 1,393 18 Africa................................. 631 580 629 19 Allother2.............................................................. 252 211 214 1 Remaining time to maturity. Note. The first available data are for June 1978. For a description of 2 Includes nonmonetary international and regional organizations. the changes in the International Statistics tables, see July 1978 Bulletin, p. 612. 3.19 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1978 Item 1975 1976 1977 Mar. June Sept. Dec.* 1 Banks’ own liabilities..................................................................... 560 781 925 986 1,464 1,768 2,055 2 Banks’ own claims1....................................................................... 1,459 1,834 2,356 2,383 2,622 2,989 3,612 3 Deposits....................................................................................... 656 1,103 941 948 1,084 1,400 1,797 4 Other claims............................................................................... 802 731 1,415 1,435 1,538 1,589 1,815 5 Claims of banks’ domestic customers2........................................ 809 446 400 1 Includes claims of banks’ domestic customers through March 1978. Note. Data on claims exclude foreign currencies held by U.S. mone- 2 Assets owned by customers of the reporting bank located in the tary authorities. United States that represent claims on foreigners held by reporting banks For a description of the changes in the International Statistics tables, for the accounts of their domestic customers. see July 1978 Bulletin, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A64 International Statistics □ May 1979 3.20 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1979 1978 1979 Country or area 1977 1978 Jan.- Mar.* Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* Holdings (end of period) 4 1 Estimated total1.. 38,640 44,933 42,217 43,627 43,852 44,933 46,205 45,662 47,524 2 Foreign countries1 33,894 39,812 37,830 38,476 38,474 39,812 41,336 40,958 42,926 3 Europe1........................... 13,936 17,072 14,689 15,260 15,654 17,072 18,360 18,501 20,171 4 Belgium-Luxembourg.. 19 19 19 19 19 19 19 19 19 5 Germany1..................... 3,168 8,705 6,157 6,645 7,102 8,705 8,864 8,860 10,216 6 Netherlands................. 911 1,358 1,306 1,356 1,351 1,358 1,433 1,517 1,587 7 Sweden......................... 100 285 211 231 266 285 320 355 360 8 Switzerland................... 497 977 694 731 915 977 1,818 1,508 1,537 9 United Kingdom.......... 8,888 5,373 5,909 5,915 5,674 5,373 5,489 5,823 5,991 10 Other Western Europe. 349 354 393 365 327 354 417 420 461 11 Eastern Europe............ 4 12 Canada. 288 152 276 151 151 152 150 146 166 13 Latin America and Caribbean................ 551 416 445 426 416 416 433 417 418 14 Venezuela.............................................. 199 144 144 144 144 144 183 183 183 15 Other Latin American and Caribbean. 183 110 139 119 109 110 88 72 72 16 Netherlands Antilles............................ 170 162 162 162 162 162 162 162 162 17 Asia............ 18,745 21,483 21,924 21,942 21,565 21,483 21,704 21,205 21,483 18 Japan. 6,860 11,528 11,096 11,560 11,483 11,528 12,226 12,422 12,729 19 Africa........ 362 691 491 691 691 691 691 691 691 20 All other. 11 -3 5 6 -3 -3 -3 -3 -3 21 Nonmonetary international and regional organizations..................................... 4,746 5,121 4,387 5,151 5,378 5,121 4,869 4,704 4,598 22 International.................... 4,646 5,089 4,354 5,118 5,345 5,089 4,837 4,666 4,560 23 Latin American regional. 100 33 33 33 33 33 33 38 38 Transactions (net purchases, or sales (—), during period) 24 Total1................... 22,843 6,292 2,591 639 1,410 225 1,081 1,272 -543 1,862 25 Foreign countries1 21,130 5,916 3,115 706 646 -3 1,338 1,524 -378 1,968 26 Official institutions. 20,377 3,712 157 704 577 69 -346 150 -517 524 27 Other foreign1........ 753 2,205 2,959 3 69 -72 1,683 1,375 141 1,443 28 Nonmonetary international and regional organizations..................................... 1,713 375 -523 -67 764 227 -256 -252 -165 -106 Memo: Oil-exporting countries 29 Middle East 2.................... 4,451 -1,785 -1,184 -31 -401 -241 -127 -461 -693 -31 30 Africa 3.................................... -181 329 200 -1 * 1 Beginning December 1978, includes U.S. Treasury notes publicly 4 Estimated official and private holdings of marketable U.S. Treasury issued to private foreign residents. securities with an original maturity of more than 1 year. Data are based 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, on a benchmark survey of holdings as of Jan. 31, 1971, and monthly and United Arab Emirates (Trucial States). transactions reports. Excludes nonmarketable U.S. Treasury bonds and 3 Comprises Algeria, Gabon, Libya, and Nigeria. notes held by official institutions of foreign countries. 3.21 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1978 1979 Assets 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. Apr.* 1 Deposits................................................................. 352 424 367 305 379 367 338 343 303 388 Assets held in custody: 2 U.S. Treasury securities1................................... 66,532 91,962 117,126 107,934 112,434 117,126 116,961 114,005 107,854 99,674 3 Earmarked gold2............................................... 16,414 15,988 15,463 15,548 15,525 15,463 15,448 15,432 15,426 15,406 1 Marketable U.S. Treasury bills, certificates of indebtedness, notes, Note. Excludes deposits and U.S. Treasury securities held for interand bonds; and nonmarketable U.S. Treasury securities payable in dollars national and regional organizations. Earmarked gold is gold held for and inforeign currencies. foreign and international accounts and is not included in the gold stock 2 The value of earmarked gold increased because of the changes in of the United States, par value of the U.S. dollar in May 1972 and in October 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Investment transactions A65 3.22 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1979 1978 1979 Transactions, and area or country 1978 Jan.- Mar.P Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* U.S. corporate securities Stocks 1 Foreign purchases.................................................. 14,155 20,130 4,687 2,357 1,509 1,461 1,438 1,361 1,384 1,941 2 Foreign sales.......................................................... 11,479 17,723 4,002 2,115 1,523 1,359 1,102 1,301 1,264 1,437 3 Net purchases, or sales (—)................................... 2,676 2,408 685 241 -14 103 336 60 120 504 4 Foreign countries.................................................... 2,661 2,454 666 244 -15 102 336 61 104 501 5 Europe................................................................ 1,006 1,271 166 -33 -91 -10 264 -7 52 121 6 France.............................................................. 40 47 43 2 -4 1 -38 -6 16 33 7 Germany......................................................... 291 620 1 24 -30 8 264 -18 20 -1 22 -22 -69 7 7 6 -9 -35 -15 -19 9 Switzerland...................................................... 152 -585 -30 -115 -118 -88 -23 -30 12 -12 10 United Kingdom............................................ 613 1,218 230 54 58 67 74 85 19 126 11 Canada................................................................ 65 74 58 117 22 6 38 7 -6 57 12 Latin America and Caribbean.......................... 127 151 44 1 13 -2 16 34 -25 36 13 Middle East*...................................................... 1,390 781 255 120 42 109 4 -16 46 225 14 Other Asia.......................................................... 59 187 141 35 — 4 1 15 49 30 61 15 Africa.................................................................. 5 -13 6 5 2 -2 -1 -2 6 1 16 Other countries.................................................. 8 3 -3 -1 2 1 1 -4 1 1 17 Nonmonetary international and regional organizations................................................... 15 -46 18 -3 1 1 * -1 16 3 Bonds2 18 Foreign purchases.................................................. 7,739 7,955 1,675 610 727 437 884 641 453 581 19 Foreign sales.......................................................... r3,560 r5,509 1,740 550 530 r439 r564 704 547 489 20 Net purchases, or sales ( —).................................. r4,179 r2,446 -65 60 197 r_2 r320 -63 -94 92 21 Foreign countries.................................................... r4,083 >-2,037 162 62 137 r —12 >•128 54 28 79 22 Europe................................................................ rl,850 r9l5 149 80 89 r-25 r146 39 110 1 -34 30 30 -2 -10 3 17 18 * 13 24 Germany......................................................... -20 r68 59 -5 -12 *■-45 10 42 13 4 25 Netherlands.................................................... 72 19 -41 19 -4 -1 -6 -4 -10 -27 26 Switzerland..................................................... 94 -100 27 43 9 9 39 8 6 12 27 United Kingdom............................................ rl,690 r930 66 * 110 9 r109 -54 93 27 28 Canada................................................................ 141 102 53 16 -5 * 6 11 10 33 29 Latin America and Caribbean.......................... 64 78 55 11 13 -1 5 23 9 24 30 Middle Easti...................................................... 1,695 810 -116 -73 -19 -8 -21 -34 -106 24 31 Other Asia.......................................................... 338 131 17 28 60 23 -5 16 4 -3 32 Africa.................................................................. -6 -1 1 * * * * * 1 * 33 Other countries.................................................. * 1 1 * * * -3 * * 1 34 Nonmonetary international and regional organizations................................................... 96 409 -227 -3 60 10 192 -118 -122 13 Foreign securities 35 Stocks, net purchases, or sales (—)...................... -410 527 -4 -69 -19 163 -12 11 -28 14 36 Foreign purchases.................................................. 2,255 3,666 828 261 299 360 232 265 232 331 37 Foreign sales.......................................................... 2,665 3,139 831 330 318 197 244 254 260 318 38 Bonds, net purchases, or sales (—)....................... -5,096 -4,017 -914 36 -677 -446 73 -550 -322 -42 39 Foreign purchases.................................................. 8,040 11,044 2,906 762 941 856 1,020 783 942 1,182 40 Foreign sales.......................................................... 13,136 15,061 3,820 726 1,618 1,302 948 1,333 1,264 1,223 41 Net purchases, or sales (—) of stocks and bonds.. -5,506 -3,490 -917 -33 -696 -283 61 -540 -349 -28 42 Foreign countries.................................................... -3,949 -3,313 -665 -67 -507 -303 19 -513 -141 -11 43 Europe.................................................................... -1,100 -40 -167 -86 13 -102 53 -124 -42 -1 44 Canada................................................................... -2,404 -3,237 -706 -41 -747 -246 -24 -305 -184 -216 45 Latin America and Caribbean.............................. -82 201 184 -12 -17 18 * 60 70 54 46 Asia......................................................................... -97 350 30 72 236 21 -15 -141 19 153 47 Africa...................................................................... 2 -441 -16 -1 1 1 * -3 -5 -8 48 Other countries...................................................... -267 -146 10 1 6 4 5 1 2 7 49 Nonmonetary international and regional organizations................................................... -1,557 -177 -253 34 -189 20 41 -27 -209 -17 1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, 2 Includes state and local government securities, and securities of U.S. Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial government agencies and corporations. Also includes issues of new debt States). securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A66 International Statistics □ May 1979 3.23 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars, end of period 1977 1978 1977 1978 Type, and area or country Dec. Mar. June Sept. Dec. Dec. Mar. June Sept. Dec. Liabilities to foreigners Claims on foreigners 1 7,910 8,361 8,792 '9,683 9,817 16,221 18,399 18,162 '18,252 20,021 By type 2 Payable in dollars.............................................. 7,109 7,477 7,967 '8,853 8,829 14,803 16,636 16,598 '16,284 18,257 3 Payable in foreign currencies........................... 801 884 825 '831 988 1,418 1,763 1,564 '1,968 1,764 4 Deposits with banks abroad in reporter’s name........................................................ 613 783 673 '803 937 5 Other............................................................... 805 980 890 1,165 827 By area or country 6 Foreign countries.................................................... 7,695 8,214 8,661 '9,559 9,692 16,220 18,397 18,160 '18,250 20,020 7 Europe.................................................................... 2,491 2,820 2,993 '3,173 3,394 5,764 5,508 5,273 '5,884 7,007 8 21 26 26 33 45 24 21 28 25 26 9 Belgium-Luxembourg........................................ 116 171 167 165 240 211 187 155 172 167 10 Denmark............................................................ 14 23 22 17 17 56 47 40 34 51 11 9 12 3 '3 9 13 13 53 50 19 12 238 273 302 '266 336 513 545 533 622 688 13 284 335 356 391 399 450 420 436 '535 808 14 85 108 82 71 37 41 42 40 44 99 15 128 104 156 188 162 387 381 451 400 446 16 Netherlands........................................................ 232 253 220 '219 216 166 184 192 '174 222 17 7 9 18 23 23 40 40 45 42 66 18 Portugal.............................................................. 11 7 25 11 8 69 27 54 34 42 19 Spain................................................................... 77 94 105 110 141 387 408 376 351 317 20 28 37 38 51 70 117 117 78 80 102 21 263 211 282 308 338 220 202 285 346 253 22 Turkey................................................................ 108 93 92 102 55 39 35 29 31 30 23 735 937 962 '1,070 1.188 2,795 2,619 2,338 '2,817 3,491 24 Yugoslavia.......................................................... 90 82 84 76 28 20 24 27 23 34 25 Other Western Europe...................................... 10 8 18 17 25 25 33 24 28 21 26 U.S.S.R............................................................... 24 15 19 27 29 55 44 37 33 67 27 Other Eastern Europe...................................... 12 23 17 25 28 135 121 51 '44 59 28 Canada................................................................... 504 530 524 566 658 2,681 3,428 3,502 '3,722 3,259 29 Latin America........................................................ 1,201 1,353 1,421 '1,536 1,521 4,467 5,943 6,001 '5,147 6,008 30 Argentina............................................................ 40 53 74 131 124 53 53 61 65 65 31 329 327 321 353 312 2,019 3,122 3,081 '2,357 2,695 32 49 62 63 87 74 493 482 479 418 618 33 Chile................................................................... 17 14 23 14 11 45 40 37 40 57 34 Colombia............................................................ 42 26 42 42 38 84 80 79 69 95 35 Cuba................................................................... * * * * * * * * * * 36 Mexico................................................................ 114 169 185 '238 142 314 312 331 382 436 37 Panama............................................................... 22 12 71 59 44 91 175 97 76 107 38 Peru..................................................................... 15 22 17 19 50 32 30 30 25 27 39 Uruguay............................................................. 3 5 9 7 15 5 6 4 5 7 40 Venezuela............................................................ 216 264 185 232 318 269 306 309 284 264 41 Other Latin American republics....................... 118 107 101 121 105 281 268 229 223 240 42 25 41 30 19 35 12 24 19 21 17 43 Other Latin America......................................... 209 250 299 213 255 768 1,045 1,245 '1,182 1,381 44 2,835 2,814 3,008 '3,534 3,324 2,111 2,970 2,810 '2,904 3,136 45 China, Mainland............................................... 8 1 1 '2 47 9 22 21 23 23 46 China, Taiwan................................................... 156 167 170 '178 150 157 144 173 157 269 47 Hong Kong........................................................ 40 32 30 61 67 98 85 92 127 142 48 37 26 10 23 27 38 85 93 85 80 49 Indonesia............................................................ 56 57 59 49 67 375 185 152 167 144 50 63 68 59 68 69 38 47 43 '85 64 51 Japan................................................................. 695 761 807 865 898 1,068 1,379 1,142 1,157 1,239 52 103 99 107 103 42 171 133 168 161 177 53 74 95 107 157 98 99 94 96 107 110 54 Thailand............................................................. 17 11 27 43 55 23 32 30 29 37 55 1,588 1,498 1,631 '1,985 1,804 702 764 800 804 850 56 Africa................................................................... 571 594 603 661 708 386 402 430 '439 452 57 Egypt.................................................................. 13 19 25 34 40 34 31 36 29 35 58 Morocco............................................................. 112 130 148 145 166 21 22 16 16 15 59 South Africa....................................................... 20 30 36 34 45 75 71 88 '73 79 60 Zaire................................................................... 46 55 57 56 88 15 11 16 12 12 61 Other Africa....................................................... 380 360 338 391 371 241 268 274 '309 311 62 Other countries...................................................... 93 104 111 '89 86 146 145 143 '154 158 63 Australia............................................................. 75 89 97 '75 75 111 111 109 '114 120 64 All other............................................................. 18 14 14 14 11 35 34 34 40 38 65 Nonmonetary international and regional organizations................................................... 215 147 132 125 125 1 1 2 2 1 Note. Reported by exporters, importers, and industrial and com- Data exclude claims held through U.S. banks and intercompany accounts mercial concerns and other nonbanking institutions in the United States. between U.S. companies and their affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-reported Data A67 3.24 SHORT-TERM CLAIMS ON FOREIGNERS Reported by Large Nonbanking Concerns in the United States Millions of dollars, end of period 1978 Type and country 1975 1976 1977 1978' July' Aug. ' Sept.' Oct. ' Nov. ' Dec. 1 Total....................................................................... 3,799 5,720 7,136 9,604 8,957 10,107 8,644 10,533 11,288 9,604 By type 3,042 4,984 6,121 8,301 7,643 8,820 7,410 9,262 9,979 8,301 2,710 4,505 5,703 7,786 7,172 8,284 6,986 8,710 9,342 7,786 332 479 418 515 471 536 424 552 637 515 5 Payable in foreign currencies............................... 757 735 1,015 1,302 1,314 1,288 1,234 1,271 1,309 1,302 511 404 547 873 698 668 738 797 839 873 246 331 468 429 616 620 496 474 470 429 By country 1,306 1,838 2,120 2,754 1,878 1,869 2,245 2,981 3,168 2,754 1,156 1,698 1,777 2,151 2,537 3,013 2,452 2,858 2,851 2,151 10 Bahamas................................................................. 546 1,355 1,896 2,519 3,217 3,543 2,247 2,819 3,038 2,519 11 Japan....................................................................... 343 133 153 246 279 276 253 226 249 246 446 716 1,190 1,934 1,046 1,406 1,447 1,649 1,934 1,934 i Negotiable and other readily transferable foreign obligations payable Note. Data represent the assets abroad of large nonbanking conon demand or having a contractural maturity of not more than 1 year cerns in the United States. They are a portion of the total claims on from the date on which the obligation was incurred by the foreigner. foreigners reported by nonbanking concerns in the United States and are included in the figures shown in table 3.26. 3.25 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars, end of period 1977 1978 1977 1978 Area and country Dec. Mar. June Sept. Dec. Dec. Mar. June Sept. Dec. Liabilities to foreigners Claims on foreigners 1 Total....................................................................... 3,175 3,149 3,077 '3,102 2,985 5,077 5,143 5,067 '5,008 5,139 2 Europe.................................................................... 2,425 2,498 2,422 '2,460 2,347 864 937 943 927 1,081 3 Germany............................................................ 255 295 282 290 265 74 75 71 76 73 4 Netherlands........................................................ 287 292 266 275 258 82 81 76 74 71 5 Switzerland........................................................ 241 241 236 246 162 49 48 55 58 52 6 United Kingdom................................................ 1,222 1,228 1,214 '1,242 1,174 310 332 363 341 497 7 Canada................................................................... 62 58 56 '60 60 1,776 1,792 1,811 '1,781 1,833 8 Latin America........................................................ 284 248 248 '230 226 1,402 1,387 1,298 1,283 1,233 9 Bahamas............................................................. 148 142 141 138 143 40 42 2 2 2 10 Brazil.................................................................. 7 6 7 7 6 144 154 143 144 158 11 Chile................................................................... 1 1 1 1 1 203 194 190 176 139 30 27 26 '26 23 177 183 188 217 212 13 Asia......................................................................... 342 284 290 289 292 817 810 803 812 762 14 Japan.................................................................. 305 250 255 254 261 66 83 78 70 66 15 Africa..................................................................... 2 2 2 3 3 161 156 154 149 170 16 All other i............................................................... 60 60 60 61 57 59 60 59 56 59 1 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A68 International Statistics □ May 1979 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Apr. 30, 1979 Rate on Apr. 30,1979 Rate on Apr. 30, 1979 Country Country Country Per Month Per Month Per Month cent effective cent effective cent effective Argentina........................ 18.0 Feb. 1972 9.5 Aug. 1977 7.0 Feb. 1978 Austria............................. 3.75 Jan. 1979 Germany, Fed. Rep. of. 4.0 Mar. 1979 6.5 July 1978 Belgium........................... 6.0 July 1978 10.5 Sept. 1978 1.0 Feb. 1978 Brazil............................... 33.0 Nov. 1978 4.25 Apr. 1979 United Kingdom.......... 12.0 Apr. 1979 Canada............................ 11.25 Jan. 1979 4.5 June 1942 5.0 Oct. 1970 Denmark......................... 8.0 July 1977 Netherlands.................. 6.5 Oct. 1978 Note. Rates shown are mainly those-at which the central bank either more than one rate applicable to such discounts or advances, the rate discounts or makes advances against eligible commercial paper and/or shown is the one at which it is understood the central bank transacts the government securities for commercial banks or brokers. For countries with largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1978 1979 Country, or type 1976 1977 1978 Nov. Dec. Jan. Feb. Mar. Apr. 1 Eurodollars........................................................... 5.58 6.03 8.74 11.51 11.62 11.16 10.79 10.64 10.60 11.35 8.07 9.18 12.00 12.28 12.61 13.28 11.98 11.64 3 Canada.................................................................. 9.39 7.47 8.52 10.37 10.44 10.87 10.94 11.08 11.18 4 Germany............................................................... 4.19 4.30 3.67 3.81 4.09 3.85 4.13 4.42 5.50 5 Switzerland........................................................... 1.45 2.56 0.74 0.20 0.22 0.05 0.13 0.03 0.93 6 Netherlands........................................................... 7.02 4.73 6.53 8.86 10.25 8.69 7.42 7.35 7.23 7 France................................................................... 8.65 9.20 8.10 7.06 6.59 6.55 6.83 7.05 6.96 8 Italy....................................................................... 16.32 14.26 11.40 11.17 11.24 11.12 11.38 11.46 11.52 9 Belgium................................................................. 10.25 6.95 7.14 9.19 9.28 8.93 8.23 7.63 7.63 10 Japan..................................................................... 7.70 6.22 4.75 4.78 4.76 4.52 4.50 4.54 5.13 Note. Rates are for 3-month interbank loans except for—Canada, over; and Japan, loans and discounts that can be called after being held finance company paper; Belgium, time deposits of 20 million francs and over a minimum of two month-ends. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1978 1979 Country/currency 1976 1977 1978 Nov. Dec. Jan. Feb. Mar. Apr. 1 Australia/dollar.................. 122.15 110.82 114.41 114.53 114.15 114.04 113.12 112.15 110.85 2 Austria/schilling................. 5.5744 6.0494 6.8958 7.1808 7.2621 7.3821 7.3510 7.3312 7.1862 3 Belgium/franc..................... 2.5921 2.7911 3.1809 3.3389 3.3637 3.4276 3.4153 3.3971 3.3271 4 Canada/dollar..................... 101.41 94.112 87.729 85.244 84.763 84.041 83.638 85.187 87.235 5 Denmark/krone.................. 16.546 16.658 18.156 19.025 19.063 19.487 19.423 19.269 18.958 6 Finland/markka................. 25.938 24.913 24.337 24.932 24.957 25.252 25.186 25.161 24.976 7 France/franc....................... 20.942 20.344 22.218 22.958 23.178 23.570 23.395 23.328 22.967 8 Germany/deutsche mark... 39.737 43.079 49.867 52.508 53.217 54.056 53.862 53.754 52.745 9 India/rupee......................... 11.148 11.406 12.207 12.458 12.174 12.185 12.124 12.138 12.191 10 Ireland/pound..................... 180.48 174.49 191.84 196.08 198.61 200.53 200.42 203.73 201.97 11 Italy/lira.............................. .12044 .11328 .11782 .11857 .11863 .11955 .11899 .11888 .11858 12 Japan/yen........................... .33741 .37342 .47981 .52066 .51038 .50571 .49877 .48470 .46241 13 Malaysia/ringgit................. 39.340 40.620 43.210 45.415 45.524 45.487 45.488 45.440 45.023 14 Mexico/peso....................... 6.9161 4.4239 4.3896 4.3881 4.3950 4.4038 4.3952 4.3835 4.3780 15 Netherlands/guilder............ 37.846 40.752 46.284 48.512 49.120 50.082 49.856 49.801 48.794 16 New Zealand/dollar........... 99.115 96.893 103.64 105.41 105.45 105.64 105.32 105.39 104.96 17 Norway/krone.................... 18.327 18.789 19.079 19.736 19.574 19.730 19.610 19.619 19.444 18 Portugal/escudo................. 3.3159 2.6234 2.2782 2.1510 2.1472 2.1358 2.1065 2.0855 2.0482 19 South Africa/rand.............. 114.85 114.99 115.01 115.04 115.01 114.96 116.76 118.40 117.94 20 Spain/peseta....................... 1.4958 1.3287 1.3073 1.4015 1.4085 1.4293 1.4427 1.4490 1.4679 21 Sri Lanka/rupee................. 11.908 11.964 6.3834 6.4695 6.4700 6.4491 6.4439 6.4593 6.4455 22 Sweden/krona..................... 22.957 22.383 22.139 22.856 22.808 22.987 22.898 22.901 22.772 23 Switzerland/franc............... 40.013 41.714 56.283 59.766 59.703 59.840 59.699 59.473 58.220 24 United Kingdom/pound... 180.48 174.49 191.84 196.08 198.61 200.53 200.42 203.78 207.34 Memo: 25 United States/dollar1......... 105.57 103.31 88.86 88.52 87.77 88.25 88.39 89.49 1 Index of weighted average exchange value of U.S. dollar against cur- the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on rencies of other G-10 countries plus Switzerland. March 1973 = 100. page 700 of the August 1978 Bulletin. Weights are 1972-76 global trade of each of the 10 countries. Series revised as of August 1978. For description and back data, see “Index of Note. Averages of certified noon buying rates in New York for cable transfers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 69 G uide to Tabular Presentation and S tatistical Releases Guide to Tabular Presentation Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available P Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column head IPCs Individuals, partnerships, and corporations ing when more than half of figures in that REITs Real estate investment trusts column are changed.) RPs Repurchase agreements * Amounts insignificant in terms of the last SMSAs Standard metropolitan statistical areas decimal place shown in the table (for Cell not applicable example, less than 500,000 when the smallest unit given is millions) General Information Minus signs are used to indicate (1) a decrease, (2) as well as direct obligations of the Treasury. “State a negative figure, or (3) an outflow. and local government” also includes municipalities, “U.S. government securities” may include guaran special districts, and other political subdivisions. teed issues of U.S. government agencies (the flow of In some of the tables details do not add to totals funds figures also include not fully guaranteed issues) because of rounding. Statistical Releases List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for individual releases................... December 1978 A-76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 70 F ederal R eserve B oard o f G overnors G. W illiam M iller, Chairman Philip E. C oldw ell Henry C. Wallich J. Charles Partee Office of Board Members Office of Staff Director for Monetary and Financial Policy Joseph R. Coyne, Assistant to the Board Kenneth A. Guenther, Assistant to the Board Stephen H. Axilrod, Staff Director Jay Paul Brenneman, Special Assistant to the Edward C. Ettin, Deputy Staff Director Board Murray Altmann, Assistant to the Board Frank O’Brien, Jr., Special Assistant to the Peter M. Keir, Assistant to the Board Board Stanley J. Sigel, Assistant to the Board Joseph S. Sims, Special Assistant to the Board Norm and R. V. Bernard, Special Assistant to Donald J. Winn, Special Assistant to the Board the Board Legal Division Division of Research and Statistics Neal L. Petersen, General Counsel James L. Kichline, Director Robert E. Mannion, Associate General Joseph S. Zeisel, Deputy Director Counsel John H. Kalchbrenner, Associate Director Allen L. Raiken, Associate General Counsel John J. Mingo, Senior Research Division Officer Charles R. McNeill, Assistant to the General Counsel Eleanor J. Stockwell, Senior Research Division Officer J. C V o ir u g n i s l e l Mattingly, Assistant General James M. Brundy, Associate Research Division Officer Gil C b o e u r n t s e T l . Schwartz, Assistant General Robert A. Eisenbeis, Associate Research Division Officer Jared J. Enzler, Associate Research Division Officer Office of the Secretary J. Cortland G. Peret, Associate Research Division Officer Theodore E. Allison, Secretary Michael J. Prell, Associate Research Division Griffith L. Garwood, Deputy Secretary Officer *Edward T. Mulrenin, Assistant Secretary Helmut F. Wendel, Associate Research Richard H. Puckett, Manager, Regulatory Division Officer Improvement Project Robert M. Fisher, Assistant Research Division Officer Frederick M. Struble, Assistant Research Division of Consumer Affairs Division Officer Stephen P. Taylor, Assistant Research Janet O. Hart, Director Division Officer Nathaniel E. Butler, Associate Director Levon H. Garabedian, Assistant Director Jerauld C. Kluckman, Associate Director Anne Geary, Assistant Director Division of International Finance Edwin M. Truman, Director Division of Banking Robert F. Gemmill, Associate Director Supervision and Regulation George B. Henry, Associate Director Charles J. Siegman, Associate Director John E. Ryan, Director Samuel Pizer, Senior International Division fFrederick C. Schadrack, Deputy Director Officer Frederick R. Dahl, Associate Director Jeffrey R. Shafer, Associate International William Taylor, Associate Director Division Officer William W. Wiles, Associate Director Dale W. Henderson, Assistant International Jack M. Egertson, Assistant Director Division Officer Don E. Kline, Assistant Director Larry J. Promisel, Assistant International Robert S. Plotkin, Assistant Director Division Officer Thomas A. Sidman, Assistant Director Ralph W. Smith, Jr., Assistant International Samuel H. Talley, Assistant Director Division Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 71 and O ffic ia l S ta ff Nancy H. Teeters Office of Office of Staff Director for Staff Director for Management Federal Reserve Bank Activities John M. Denkler, Staff Director William H. Wallace, Staff Director Robert J. Lawrence, Deputy Staff Director Joseph W Daniels, Sr., Director of Equal Employment Opportunity Division of Federal Reserve Harry A. Guinter, Program Director for Bank Examinations and Budgets Contingency Planning Albert R. Hamilton, Director Clyde H. Farnsworth, Jr., Associate Division of Data Processing Director Charles W. Bennett, Assistant Director Charles L. Hampton, Director P. D. Ring, Assistant Director Bruce M. Beardsley, Associate Director Raymond L. Teed, Assistant Director Uyless D. Black, Assistant Director Glenn L. Cummins, Assistant Director Robert J. Zemel, Assistant Director Division of Federal Reserve Bank Operations Division of Personnel James R. Kudlinski, Director David L. Shannon, Director Walter Althausen, Assistant Director John R. Weis, Assistant Director Brian M. Carey, Assistant Director Charles W. Wood, Assistant Director Harry A. Guinter, Assistant Director Lorin S. Meeder, Assistant Director Office of the Controller John Kakalec, Controller Division of Support Services Donald E. Anderson,Director John L. Grizzard, Associate Director Walter W. Kreimann, Associate Director John D. Smith, Assistant Director *On loan from Office of the Controller. tOn loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A72 Federal Reserve Bulletin □ May 1979 FO M C and A dvisory C ouncils Federal Open Market Committee G. William M iller, Chairman Paul A. Volcker, Vice Chairman John Balles Monroe Kimbrel J. Charles Partee Robert Black Robert Mayo Nancy H. Teeters Philip E. Coldwell Henry C. Wallich Murray Altmann, Secretary George B. Henry, Associate Economist Normand R. V. Bernard, Assistant Secretary Peter M. Keir, Associate Economist Neal L. Petersen, General Counsel Michael Keran, Associate Economist James H. Oltman, Deputy General Counsel James L. Kichline, Associate Economist Robert E. Mannion, Assistant General Counsel James Parthemus, Associate Economist Stephen H. Axilrod, Economist Karl Scheld, Associate Economist Harry Brandt, Associate Economist Edwin M. Truman, Associate Economist Richard G. Davis, Associate Economist Joseph S. Zeisel, Associate Economist EiDWARD C. Ettin, Associate Economist Alan R. Holmes, Manager, System Open Market Account Peter D. Sternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations Federal Advisory Council J. W. McLean, tenth district, President Richard H. Vaughan, ninth district, Vice President Henry S. Woodbridge, Jr., first district Frank A. Plummer, sixth district Walter B. Wriston, second district Roger E. Anderson, seventh district William B. Eagleson, Jr., third district Clarence C. Barksdale, eighth district Merle E. Gilliand, fourth district James D. Berry, eleventh district J. Owen Cole, fifth district Chauncey E. Schmidt, twelfth district Herbert V. Prochnow, Secretary William J. Korsvik, Associate Secretary Consumer Advisory Council William D. Warren, Los Angeles, California, Chairman Marcia A. Hakala, Omaha, Nebraska, Vice Chairman Roland E. Brandel, San Francisco, California Percy W. Loy, Portland, Oregon James L. Brown, Milwaukee, Wisconsin R. C. Morgan, El Paso, Texas Mark E. Budnitz, Boston, Massachusetts Florence M. Rice, New York, New York John G. Bull, Fort Lauderdale, Florida Ralph J. Rohner, Washington, D. C. Robert V. Bullock, Frankfort, Kentucky Raymond J. Saulnier, New York, New York Carl Felsenfeld, New York, New York Henry B. Schechter, Washington, D. C. Jean A. Fox, Pittsburgh, Pennsylvania E. G. Schuhart II, Amarillo, Texas Richard H. Holton, Berkeley, California Blair C. Shick, Cambridge, Massachusetts Edna DeCoursey Johnson, Baltimore, Mary Thomas R. Swan, Portland, Maine land Anne Gary Taylor, Alexandria, Virginia Richard F. Kerr, Cincinnati, Ohio Richard A. Van Winkle, Salt Lake City, Utah Robert J. Klein, New York, New York Richard D. Wagner, Simsbury, Connecticut Harvey M. Kuhnley, Minneapolis, Minnesota Mary W. Walker, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON*......................02106 Robert M. Solow Frank E. Morris Robert P. Henderson James A. McIntosh NEW YORK*...............10045 Robert H. Knight Paul A. Volcker Boris Yavitz Thomas M. Timlen Buffalo........................ 14240 Frederick D. Berkeley John T. Keane PHILADELPHIA..........19105 John W. Eckman David P. Eastburn Werner C. Brown Richard L. Smoot CLEVELAND*..............44101 Robert E. Kirby Willis J. Winn Arnold R. Weber Walter H. MacDonald Cincinnati...................45201 Lawrence H. Rogers, II Robert E. Showalter Pittsburgh............... 15230 G. Jackson Tankersley Robert D. Duggan RICHMOND*...............23261 E. Angus Powell Robert P. Black Maceo A. Sloan George C. Rankin Baltimore....................21203 I. E. Killian Jimmie R. Monhollon Charlotte....................28230 Robert E. Elberson Stuart P. Fishburne Culpeper Communications and Records Center . 22701 Albert D. Tinkelenberg ATLANTA....................30303 Clifford M. Kirtland, Jr. Monroe Kimbrel William A. Fickling, Jr. Kyle K. Fossum Birmingham...............35202 William H. Martin, III Hiram J. Honea Jacksonville...............32203 Copeland D. Newbern Charles B. East Miami.........................33152 Castle W. Jordan F. J. Craven, Jr. Nashville..................37203 Cecelia Adkins Jeffrey J. Wells New Orleans..............70161 Levere C. Montgomery George C. Guynn CHICAGO* ...................60690 Robert H. Strotz Robert P. Mayo John Sagan Daniel M. Doyle Detroit.........................48231 Jordan B. Tatter William C. Conrad ST. LOUIS....................63166 Armand C. Stalnaker Lawrence K. Roos William B. Walton Donald W. Moriarty Little Rock ...............72203 G. Larry Kelley John F. Breen Louisville .................40232 James F. Thompson Donald L. Henry Memphis ...................38101 Frank A. Jones, Jr. L. Terry Britt MINNEAPOLIS............55480 Stephen F. Keating Mark H. Willes William G. Phillips Thomas E. Gainor Helena.........................59601 Patricia P. Douglas John D. Johnson KANSAS CITY............64198 Harold W. Andersen Roger Guffey Joseph H. Williams Henry R. Czerwinski Denver........................80217 A. L. Feldman Wayne W. Martin Oklahoma City..........73125 Christine H. Anthony William G. Evans Omaha ........................68102 Durward B. Varner Robert D. Hamilton DALLAS........................75222 Irving A. Mathews Ernest T. Baughman Gerald D. Hines Robert H. Boykin El Paso........................79999 A. J. Losee Fredric W. Reed Houston......................77001 Gene M. Woodfin J. Z. Rowe San Antonio...............78295 Pat Legan Carl H. Moore SAN FRANCISCO.......94120 Joseph F. Alibrandi John J. Balles Cornell C. Maier John B. Williams Los Angeles...............90051 Caroline L. Ahmanson Richard C. Dunn Portland ......................97208 Loran L. Stewart Angelo S. Carella Salt Lake City ........84125 Wendell J. Ashton A. Grant Holman Seattle ........................98124 Lloyd E. Cooney Gerald R. Kelly * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 74 Federal Reserve Board Publications Available from Publications Services, Division of Sup quest and be made payable to the order of the Board port Services, Board of Governors of the Federal Re of Governors of the Federal Reserve System. Remit serve System, Washington, D.C. 20551. Where a tance from foreign residents should be drawn on a U.S. charge is indicated, remittance should accompany re- bank. (Stamps and coupons are not accepted.) The Federal Reserve System—Purposes and Bank Credit-Card and Check-Credit Plans. 1968. Functions. 1974. 125 pp. 102 pp. $1.00 each; 10 or more to one address, $.85 each. Annual Report. Survey of Changes in Family Finances. 1968. 321 Federal Reserve Bulletin. Monthly. $20.00 per pp. $1.00 each; 10 or more to one address, $.85 year or $2.00 each in the United States, its posses each. sions, Canada, and Mexico; 10 or more of same Report of the Joint Treasury-Federal Reserve issue to one address, $18.00 per year or $1.75 Study of the U.S. Government Securities each. Elsewhere, $24.00 per year or $2.50 each. Market. 1969. 48 pp. $.25 each; 10 or more to one address, $.20 each. Banking and Monetary Statistics, 1914-1941. (Reprint of Part 1 only) 1976. 682 pp. $5.00. Joint Treasury-Federal Reserve Study of the Government Securities Market: Staff Stud Banking and Monetary Statistics, 1941-1970. ies—Part 1. 1970. 86 pp. $.50 each; 10 or more 1976. 1,168 pp. $15.00. to one address, $.40 each. Part 2. 1971. 153 pp. Annual Statistical Digest and Part 3. 1973. 131 pp. Each volume $1.00; 1971-75. 1976. 339 pp. $4.00 per copy for each 10 or more to one address, $.85 each. paid subscription to Federal Reserve Bulletin; all Open Market Policies and Operating Proce others $5.00 each. dures—Staff Studies. 1971. 218 pp. $2.00 1972-76. 1977. 338 pp. $10.00 per copy. each; 10 or more to one address, $1.75 each. Reappraisal of the Federal Reserve Discount 1973-77. 1978. 361 pp. $12.00 per copy. Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. Federal Reserve Chart Book. Issued four times a 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; year in February, May, August, and November 10 or more to one address, $2.50 each. Subscription includes one issue of Historical Chart The Econometrics of Price Determination Con Book. $7.00 per year or $2.00 each in the United ference, October 30-31, 1970, Washington, D.C. States, its possessions, Canada, and Mexico. Else 1972. 397 pp. Cloth ed. $5.00 each; 10 or more where, $10.00 per year or $3.00 each. to one address, $4.50 each. Paper ed. $4.00 each; Historical Chart Book. Issued annually in Sept 10 or more to one address, $3.60 each. Subscription to Chart Book includes one issue. Federal Reserve Staff Study: Ways to Moderate $1.25 each in the United States, its possessions, Fluctuations in Housing Construction. Canada, and Mexico; 10 or more to one address, 1972. 487 pp. $4.00 each; 10 or more to one $1.00 each. Elsewhere, $1.50 each. address, $3.60 each. Capital Market Developments. Weekly. $15.00 per Lending Functions of the Federal Reserve year or $.40 each in the United States, its posses Banks. 1973. 271 pp. $3.50 each; 10 or more sions, Canada, and Mexico; 10 or more of same to one address, $3 00 each. issue to one address, $13.50 per year or $.35 each. Improving the Monetary Aggregates (Report of the Elsewhere, $20.00 per year or $.50 each. Advisory Committee on Monetary Statistics). Selected Interest and Exchange Rates—Weekly 1976. 43 pp. $1.00 each; 10 or more to one Series of Charts. Weekly. $15.00 per year or address, $.85 each. $.40 each in the United States, its possessions, Annual Percentage Rate Tables (Truth in Lend Canada, and Mexico; 10 or more of same issue ing—Regulation Z) Vol. I (Regular Transactions). to one address, $13.50 per year or $.35 each. 1969. 100 pp. Vol. II (Irregular Transactions). Elsewhere, $20.00 per year or $.50 each. 1969. 116 pp. Each volume $1.00, 10 or more of same volume to one address, $.85 each. The Federal Reserve Act, as amended through De Federal Reserve Measures of Capacity and Ca cember 1976, with an appendix containing provi pacity Utilization. 1978. 40 pp. $1.75 each, sions of certain other statutes affecting the Federal 10 or more to one address, $1.50. each. Reserve System. 307 pp. $2.50. The Bank Holding Company Movement to 1978: Regulations of the Board of Governors of the A Compendium. 1978. 289 pp. $2.50 each, 10 Federal Reserve System or more to one address, $2.25 each. Published Interpretations of the Board of Gov Improving the Monetary Aggregates: Staff ernors, as of June 30, 1978. $7.50. Papers. 1978. 170 pp. $4.00 each, 10 or more Industrial Production—1976 Edition. 1977. 304 to one address, $3.75 each. pp. $4.50 each; 10 or more to one address, $4.00 1977 Consumer Credit Survey. 1978. 119 pp. $2.00 each. each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Reserve Board Publications A 75 Consumer Education Pamphlets Printed in Full in the Bulletin Staff Studies shown under “Reprints." (Short pamphlets suitable for classroom use. Multiple copies available without charge.) Reprints Consumer Handbook To Credit Protection Laws The Equal Credit Opportunity Act and . . . Age (Except for Staff Papers, Staff Studies, and some The Equal Credit Opportunity Act and . . . leading articles, most of the articles reprinted do not Credit Rights in Housing exceed 12 pages.) The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Measures of Security Credit. 12/70. Others Who May Provide Incidental Credit Revision of Bank Credit Series. 12/71. The Equal Credit Opportunity Act and . Assets and Liabilities of Foreign Branches of Women U.S. Banks. 2/72. Fair Credit Billing Bank Debits, Deposits, and Deposit Turnover— A Guide to Federal Reserve Regulations Revised Series. 7/72. How to File A Consumer Credit Complaint Yields on Newly Issued Corporate Bonds. 9/72. If You Borrow To Buy Stock Recent Activities of Foreign Branches of U.S. If You Use A Credit Card Banks. 10/72. Truth in Leasing Revision of Consumer Credit Statistics. 10/72. U.S. Currency One-Bank Holding Companies Before the 1970 What Truth in Lending Means to You Amendments. 12/72. Yields on Recently Offered Corporate Bonds. 5/73. Staff Studies Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corpora tions. 10/73. Studies and papers on economic and financial subjects U.S. Energy Supplies and Uses, Staff Economic that are of general interest. Study by Clayton Gehman. 12/73. The Structure of Margin Credit. 4/75. Summaries Only Printed in the Bulletin New Statistical Series on Loan Commitments at Selected Large Commercial Banks. 4/75. (Limited supply of mimeographed copies of full text Recent Trends in Federal Budget Policy. 7/75. available upon request for single copies.) An Assessment of Bank Holding Companies, Staff Mortgage Borrowing Against Equity in Existing Economic Study by Robert J. Lawrence and Sam Homes: Measurement, Generation, and Im uel H. Talley. 1/76. plications for Economic Activity, by David F. Industrial Electric Power Use. 1/76. Seiders. May 1978. 42 pp. Revision of Money Stock Measures. 2/76. The Behavior of Member Bank Required Reserve Survey of Finance Companies, 1975. 3/76. Ratios and the Effects of Board Action, Revised Series for Member Bank Deposits and 1968-77, by Thomas D. Simpson. July 1978. 39 Aggregate Reserves. 4/76. pp. Industrial Production—1976 Revision. 6/76. Foothold Acquisitions and Bank Market Struc Federal Reserve Operations in Payment Mecha ture, by Stephen A. Rhoades and Paul Schweit nisms: A Summary. 6/76. zer, July 1978. 8 pp. New Estimates of Capacity Utilization: Manu Interest Rate Ceilings and Disintermediation, by facturing and Materials. 11/76. Edward F. McKelvey. Sept. 1978. 105 pp. Bank Holding Company Financial Developments The Relationship Between Reserve Ratios and in 1976. 4/77. the Monetary Aggregates Under Reserves Survey of Terms of Bank Lending—New Series. and Federal Funds Rate Operating Targets, 5/77. by Kenneth J. Kopecky. Dec. 1978. 58 pp. The Commercial Paper Market. 6/77. Tie-ins Between the Granting of Credit and Consumption and Fixed Investment in the Eco Sales of Insurance by Bank Holding Compa nomic Recovery Abroad. 10/77. nies and Other Lenders, by Robert A. Eisenbeis Recent Developments in U.S. International and Paul R. Schweitzer. Feb. 1979. 75 pp. Transactions. 4/78. Geographic Expansion of Banks and Changes in The Federal Budget in the 1970’s. 9/78. Banking Structure, by Stephen A. Rhoades. Summary Measures of the Dollar’s Foreign Ex March 1979. 40 pp. change Value. 10/78. Impact of the Dollar Depreciation on the U.S. Survey of Time and Savings Deposits at All Com Price Level: An Analytical Survey of Em mercial Banks, July 1978. 11/78. pirical Estimates, by Peter Hooper and Barbara Redefining the Monetary Aggregates. 1/79. R. Lowery. April 1979. 53 pp. U.S. International Transactions in 1978. 4/79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A76 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix “A ” is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits: Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20—23, 29 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 42, 43 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 Turnover, 13 BANKERS balances, 16, 18, 20, 21, 22 Discount rates at Reserve Banks (See Interest rates) (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 35 Dividends, corporate, 37 Bonds (See also U.S. Government securities): New issues, 36 EMPLOYMENT, 46, 47 Yields, 3 Euro-dollars, 27 Branch banks: Assets and liabilities of foreign branches of U.S. FARM mortgage loans, 41 banks, 56 Farmers Home Administration, 41 Liabilities of U.S. banks to their foreign Federal agency obligations, 4, 11, 12, 13, 34 branches, 23 Federal and Federally sponsored credit agencies, 35 Business activity, 46 Federal finance: Business expenditures on new plant and Debt subject to statutory limitation and equipment, 38 types and ownership of gross debt, 32 Business loans (See Commercial and industrial Receipts and outlays, 30, 31 loans) Treasury operating balance, 30 Federal Financing Bank, 30. 35 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 CAPACITY utilization, 46 Federal home loan banks, 35 Capital accounts: Federal Home Loan Mortgage Corp., 35, 40, 41 Banks, by classes, 16, 17, 19, 20 Federal Housing Administration, 35, 40, 41 Federal Reserve Banks, 12 Federal intermediate credit banks, 35 Central banks, 68 Federal land banks, 35, 41 Certificates of deposit, 23, 27 Federal National Mortgage Assn., 35, 40, 41 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 15, 18, 23, 26 Condition statement, 12 Weekly reporting banks, 20, 21, 22, 23, 24 Discount rates (See Interest rates) Commercial banks: U.S. Government securities held, 4, 12, 13, 32, 33 Assets and liabilities, 3, 15-19, 20-23 Federal Reserve credit, 4, 5, 12, 13 Business loans, 26 Federal Reserve notes, 12 Commercial and industrial loans, 24, 26 Federally sponsored credit agencies, 35 Consumer loans held, by type, 42, 43 Finance companies: Loans sold outright, 23 Assets and liabilities, 39 Number, by classes, 16, 17, 19 Business credit, 39 Real estate mortgages held, by type of holder and Loans, 20, 21, 22, 42, 43 property, 41 Paper, 25, 27 Commercial paper, 3, 24, 25, 27, 39 Condition statements (See Assets and liabilities) Financial institutions, loans to, 18, 20-22 Float, 4 Construction, 46, 50 Flow of funds, 44, 45 Consumer instalment credit, 42, 43 Foreign: Consumer prices, 46, 51 Currency operations, 12 Consumption expenditures, 52, 53 Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Corporations: Exchange rates, 68 Profits, taxes, and dividends, 37 Trade, 55 Security issues, 36, 65 Cost of living (See Consumer prices) Foreigners: Claims on, 60, 61, 66, 67 Credit unions, 29, 42, 43 Liabilities to, 23, 56-59, 64-67 Currency and coin, 5, 16, 18 Currency in circulation, 4, 14 Customer credit, stock market, 28 GOLD. Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Assn., 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Reserve Bulletin □ May 1979 A ll HOUSING, new and existing units, 50 REAL estate loans: Banks, by classes, 18, 20-23, 29, 41 INCOME, personal and national, 46, 52, 53 Life insurance companies, 29 Industrial production, 46, 48 Mortgage terms, yields, and activity, 3, 40 Instalment loans, 42, 43 Type of holder and property mortgaged, 41 Insurance companies, 29, 32, 33, 41 Reserve position, basic, member banks, 6 Insured commercial banks, 17, 18, 19 Reserve requirements, member banks, 9 Interbank deposits, 16, 17, 20, 21, 22 Reserves: Interest rates: Commercial banks, 16, 18, 20, 21, 22 Bonds, 3 Federal Reserve Banks, 12 Business loans of banks, 26 Member banks, 3, 4, 5, 15, 16, 18 Federal Reserve Banks, 3, 8 U.S. reserve assets, 55 Foreign countries, 68 Residential mortgage loans, 40 Money and capital markets, 3, 27 Retail credit and retail sales, 42, 43, 46 Mortgages, 3, 40 Prime rate, commercial banks, 26 SAVING: Time and savings deposits, maximum rates, 10 Flow of funds, 44, 45 International capital transactions of the United National income accounts, 53 States, 56-67 Savings and loan assns., 3, 10, 29, 33, 41, 44 International organizations, 56-61, 64—67 Savings deposits (See Time deposits) Inventories, 52 Savings institutions, selected assets, 29 Investment companies, issues and assets, 37 Securities (See also U.S. Government securities): Investments (See also specific types of investments): Federal and Federally sponsored agencies, 35 Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Foreign transactions, 65 Commercial banks, 3, 15, 16, 17, 18 New issues, 36 Federal Reserve Banks, 12, 13 Prices, 28 Life insurance companies, 29 Special Drawing Rights, 4, 12, 54, 55 Savings and loan assns., 29 State and local govts.: Deposits, 19, 20, 21, 22 LABOR force, 47 Holdings of U.S. Government securities, 32, 33 Life insurance companies (See Insurance companies) New security issues, 36 Loans (See also specific types of loans): Ownership of securities of, 18, 20, 21, 22, 29 Banks, by classes, 16, 17, 18, 20-23, 29 Yields of securities, 3 Commercial banks, 3, 15-18, 20-23, 24, 26 State member banks, 17 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Stock market, 28 Insurance companies, 29, 41 Stocks (See also Securities): Insured or guaranteed by United States, 40, 41 New issues, 36 Savings and loan associations, 29 Prices, 28 MANUFACTURING: TAX receipts, Federal, 31 Capacity utilization, 46 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, Production, 46, 49 22, 23 Margin requirements, 28 Trade, foreign, 55 Member banks: Treasury currency, Treasury cash, 4 Assets and liabilities, by classes, 16, 17, 18 Treasury deposits, 4, 12, 30 Treasury operating balance, 30 Borrowings at Federal Reserve Banks, 5, 12 Number, by classes, 16, 17, 19 Reserve position, basic, 6 UNEMPLOYMENT, 47 Reserve requirements, 9 U.S. balance of payments, 54 Reserves and related items, 3, 4, 5, 15 U.S. Government balances: Mining production, 49 Commercial bank holdings, 19, 20, 21, 22 Mobile home shipments, 50 Member bank holdings, 15 Monetary aggregates, 3, 15 Treasury deposits at Reserve Banks, 4, 12, 30 Money and capital market rates (See Interest rates) U.S. Government securities: Money stock measures and components, 3, 14 Bank holdings, 16, 17, 18, 20, 21, 22, 29, Mortgages (See Real estate loans) 32, 33 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 34 Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41 Federal Reserve Bank holdings, 4, 12, 13, 32, 33 Foreign and international holdings and NATIONAL banks, 17, 19 transactions, 12, 32, 64 National defense outlays, 31 Open market transactions, 11 National income, 52 Outstanding, by type of security, 32, 33 Nonmember banks, 17, 18, 19 Ownership, 32, 33 Rates in money and capital markets, 3, 27 OPEN market transactions, 11 Yields, 3 Utilities, production, 49 PERSONAL income, 53 Prices: VETERANS Administration, 40, 41 Consumer and wholesale, 46, 51 Stock market, 28 WEEKLY reporting banks, 20-24 Prime rate, commercial banks, 26 Wholesale prices, 46 Production, 46, 48 Profits, corporate, 37 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories January 1978 — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities -----Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1979, April 30). Federal Reserve Bulletin, 1979-05. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_197905
@misc{wtfs_bulletin_197905,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1979-05},
year = {1979},
month = {Apr},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_197905},
note = {Retrieved via When the Fed Speaks corpus}
}