Federal Reserve Bulletin, 1981-06

V olum e 67 □ N u m ber 6 □ June 1981 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, 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 Coordinator Naomi P. Salus, The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. The artwork is provided by the Graphic Communications Section under the direction of Peter G. Thomas. 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 461 Changing Patterns of Housing “pooled” among the federal agencies, be­ Finance fore the House Committee on Banking, Finance and Urban Affairs, June 4, 1981. Activity in housing markets has contracted since 1978 in an environment of rapid infla­ tion and higher interest rates. 494 Announcements Adoption of policy statement on sale of 473 Financial D evelopm ents o f Bank third-party commercial paper by state mem­ H olding Companies in 1980 ber banks. In 1980 bank holding companies operated in Proposal on simplified Regulation Z (Truth a particularly difficult environment, but on in Lending). balance came through reasonably well. Release of list of foreign banks operating in 480 Financial Perform ance o f Sm all the United States and their home states. Banks, 1977-80 Delegation of authority to General Counsel In a period of many changes and some for exceptions to the rules against interlock­ adversities, the majority of small commer­ ing managements of depository institutions. cial banks have fared well. Nominations to Consumer Advisory Coun­ cil. 486 TREASUR Y AND FEDERAL RESERVE Foreign Exchange Operations.- Amendment to Regulation T regarding Interim Report speculative holding of foreign currency in a margin account. From February to April the U.S. dollar was in strong, then weak, and finally heavy Publication of Annual Report for 1980. demand; in mid-April the U.S. authorities Changes in Board staff. adopted a minimal intervention approach, but the Federal Reserve continued to oper­ Admission of six state banks to membership ate in the market as agent for other central in the Federal Reserve System. banks. 497 Record of Policy Actions of the 488 Industrial P roduction Federal Open Market Committee Output rose 0.3 percent in May. At its meeting on March 31, 1981, the Committee decided to seek behavior of 490 Statem ent to C ongress reserve aggregates associated with growth J. Charles Partee, Member, Board of Gov­ of Ml-B over the period from March to ernors, discusses the bank examination June at an annual rate of 5'/2 percent or process and recent efforts to make examina­ somewhat less, after allowance for the im­ tions more cost effective and more uniform pact of flows into NOW accounts, and among the federal agencies, and says the growth in M2 at an annual rate of about l0'/2 Board strongly opposes a General Account­ percent. In evaluating the behavior of the ing Office proposal that examiners be aggregates, it was agreed that greater Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

weight than before would be given to the 507 Legal D evelopm ents behavior of M2. If it appeared during the period before the next scheduled meeting Amendments to Regulations D and Q; that fluctuations in the federal funds rate, amendment to rules; various bank holding taken over a period of time, within a range company and bank merger orders; and of 13 to 18 percent were likely to be incon­ pending cases. sistent with the monetary and related re­ serve paths, the Manager of Domestic Op­ Al Financial and Business Statistics erations was promptly to notify the Chairman, who would then decide whether A3 Domestic Financial Statistics the situation called for supplementary in­ A44 Domestic Nonfinancial Statistics structions from the Committee. A52 International Statistics In the telephone conference on May 6, A68 Special Tables the Committee agreed that in the brief peri­ od before the next regular meeting sched­ A67 Guide to Tabular Presentation, uled for May 18, the reserve path would Statistical Releases, and Special continue to be set on the basis of the short- Tables run objectives for monetary growth estab­ lished at the March 31 meeting. It was noted A ll Board of Governors and Staff that for a time actual money growth might be high relative to those objectives in view A74 Federal Open Market Committee of the recent performance of the monetary and Staff; Advisory Councils aggregates. The Committee recognized that short-term market interest rates might well A75 Federal Reserve Banks, Branches, fluctuate around levels prevailing in recent and Offices days and that the federal funds rate might continue to exceed the upper end of the A76 Federal Reserve Board range indicated for consultation at the pre­ P ublications vious meeting. The Committee agreed to consult further if necessary to maintain A81 Index to Statistical Tables adequate restraint on the monetary and credit aggregates. A83 Map of Federal Reserve S ystem Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changing Patterns of Housing Finance This article was prepared by David F. Seiders of provided to borrowers, and outstanding low-rate the Mortgage and Consumer Finance Section of loans have been transferred to home buyers from the Division of Research and Statistics. home sellers. At the same time, some measures favoring borrowers have had adverse impacts on Activity in housing markets has contracted since the federal budget or exacerbated earnings prob­ 1978 in an environment of rapid inflation and lems of private and federally related mortgage higher interest rates. The housing downswing, investors, and have prompted counteractions. while substantial, has been limited by the persis­ The market shares of major types of private tence of strong demands for shelter and by major and public institutions have shifted somewhat as changes in institutions and practices in the resi­ a result of the many important developments on dential mortgage markets. Some of the changes the supply side of the residential mortgage mar­ in mortgage markets have been part of an evolu­ kets. Further changes in the patterns of housing tionary process prompted by recurrent housing finance will depend heavily on the course of cycles. Others have been sparked by persistent interest rates and decisions made at the federal inflation or by the high and volatile interest rates level concerning the proper place of housing in during the past few years. the nation’s capital structure. Regulatory and institutional adjustments in mortgage markets have altered both the timing and the magnitude of the impacts of monetary Recent Behavior of Housing Activity restraint on housing activity and the channels through which it operates. Specialized mortgage Total private housing starts have declined mark­ lenders and mortgage borrowers may now com­ edly from the peak attained around the middle of pete more freely for funds because ceilings on 1978 (chart 1). The reduction in starts has been deposit and mortgage interest rates have been concentrated in the market for single-family relaxed and because mortgage and bond markets have become more closely linked by improve­ ments in secondary mortgage markets. More­ 1. Private housing starts over, recent changes in mortgage commitment practices and in the form of the mortgage instru­ ment have fostered a shift from lenders to bor­ rowers of some risks from interest rate fluctua­ tions and thus have helped to maintain the attractiveness of mortgage investment. With the crumbling of artificial constraints on the availability of mortgage credit, interest cost has become a more important determinant of the volume of funds raised in the residential mort­ gage markets. But public and private initiatives have been designed, in turn, to help prospective borrowers overcome the constraints imposed by record high market rates: lending standards have been eased, schedules of mortgage repayments Census Bureau seasonally adjusted monthly data at annual rates have been altered, below-market rates have been converted to three-month moving averages by the Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 Federal Reserve Bulletin □ June 1981 2. Home sales and prices previous housing cycle; following a sharp decline Ratio scale, millions of units around the middle of 1980, average home mort­ gage rates again climbed to more than 16 percent by May of this year. Interest rates in the markets for short-term construction loans to builders also have posted records and have exhibited wide swings (chart 3). 3. Home mortgage interest rates Percent Merchant-builder sales of new homes as reported by the Census Bureau, and existing home sales as reported by the National Associa­ tion of Realtors, both at seasonally adjusted annual rates. Average prices of new and existing homes sold, also reported by these sources, seasonally adjusted by the Federal Reserve. Sales and prices convert­ ed to three-month moving averages by the Federal Reserve. structures, and sales of both new and existing single-family homes also have contracted. As the volume of activity has fallen, the rate of increase Long-term mortgage rates are monthly averages of weekly contract 30 in average home prices has slowed somewhat rates on new commitm 80 ents for fixed-rate -year conventional newhome mortgages with percent loan-value ratios, as reported by the (chart 2). Federal Home Loan Mortgage Corporation. Construction loan rates The relative stability of construction activity in are average effective yields on construction loans made by commer­ cial banks reporting to the Federal Reserve in the quarterly survey of the multifamily sector has reflected in part grow­ terms of bank lending to business. ing demands for condominium and cooperative units by households seeking to achieve owner­ Considering the extent of increase in market ship status at prices below those in the markets interest rates, mortgage and housing activity has for single-family structures. The multifamily sec­ held up unusually well, compared with what tor also has received support from the federal might have been expected on the basis of earlier government by means of rental subsidies provid­ postwar experience. The share of residential ed by the U.S. Department of Housing and mortgages in total funds raised in U.S. credit Urban Development (HUD) and mortgage inter­ markets had declined only moderately through est rate subsidies by the Government National the first quarter of 1981 (chart 4), and the posi­ Mortgage Association (GNMA). And as vacancy tion of residential investment expenditures in the rates have fallen to historically low levels, some gross national product so far has remained above nonsubsidized rental projects have been built, the shares recorded in 1974-75 (chart 5). especially in markets unfettered by rent controls. The performance of housing construction and Recent declines in the construction and sale of mortgage lending has reflected strong demands houses have reflected major shifts in financial associated with both demographic and social market conditions. By the spring of last year, factors that have supported household formation interest rates on new commitments for fixed- and the attractiveness of housing as an inflation rate, long-term home mortgages had risen more hedge and an investment good. But important than 50 percent above the peak reached in the developments on the supply side of the mortgage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changing Patterns of Housing Finance 463 4. Residential mortgage debt ed to magnify the impact of general credit re­ Billions of dollars straint on the mortgage and housing markets during the latter half of the 1960s and most of the 1970s. Ceilings on deposit rates payable by sav­ ings and loan associations and mutual savings banks limited the ability of these specialized mortgage finance institutions to compete effec­ tively for funds in periods of high market interest rates, while ceilings on mortgage interest rates 0 worked to exclude many borrowers from the Percent market and hampered yield adjustments neces­ sary to attract mortgage funds from diversified private institutions. The nonrate characteristics of mortgage assets also proved to be unattractive to many investors, further limiting arbitrage be­ Quarterly mortgage debt by type of structure estimated—and con­ tween the mortgage and other components of the verted to seasonally adjusted annual rates—by the Federal Reserve as required to supplement reports of federal agencies and private capital markets. Federal actions in recent years sources. Total funds raised in credit markets refer to all funds raised in have fostered freer competition in deposit and U.S. credit markets—excluding equities—by all nonfinancial sectors, both private and foreign. mortgage markets, although artificial constraints on the availability of mortgage credit have not 5. Residential investment expenditures been fully eliminated. Billions of dollars Deposit Rate Ceilings Perhaps the most important competitive innova­ tions have been the variable-ceiling deposits made available to the depository institutions by federal regulation: the six-month money market certificates (MMCs), introduced in June 1978, and the longer-term “small saver” certificates (SSCs), introduced in mid-1979. These federally insured instruments generally have enabled sav­ ings and loan associations and mutual savings banks to maintain deposit flows well above levels 1971* 11973 *1975 that otherwise would have been sustained. Commerce Department data on the current-dollar value of gross Nevertheless, the variable-ceiling accounts residential investment expenditures, at seasonally adjusted annual rates. Total includes mobile homes, nonhousekeeping units, and have limited competitive effectiveness. Both brokers’ commissions, not shown separately. Share of GNP based on types of deposits have substantial penalties for current-dollar values for both total residential and gross national premature withdrawal, and the minimum denom­ product. ination ($10,000) on MMCs has been beyond the markets also have contributed to the resilience of means of many savers. Under current rules, housing activity. moreover, the nominal ceiling on SSCs is capped at 12 percent and limits on interest compounding help to hold eflfective yields on MMCs below Easing of Constraints those available on Treasury securities with com­ on Credit A vailability parable maturity. And, under certain market conditions, MMCs have had considerable diffi­ Regulations imposed by federal and state govern­ culty competing against yields available on ments on mortgage lenders and instruments tend­ shares in money market mutual funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 Federal Reserve Bulletin □ June 1981 Mortgage Interest Rate Ceilings 1. Federally underwritten mortgage passthrough securities Ceilings on mortgage rates have caused serious Amounts outstanding in billions of dollars problems for homebuyers in many areas since Total as the late 1960s. Because of limits on contract Guaranteed by percent of interest rates, lenders have attempted to capture End of period Total residential GNMA FHLMC FmHA mortgage debt a desired net mortgage yield through loan points, outstanding if permitted by law, or by improving the quality 1970 ................ 2.7 .4 2.3 .7 of mortgage credit through changes in nonrate 1971 ................ 6.9 3.1 ' j 3.7 1.7 1972 ................ 11.1 5.5 .4 5.2 2.4 loan terms or lending standards, adjustments that 1973 ................ 14.3 7.9 .8 5.6 2.8 1974 ................ 19.5 11.8 .8 6.9 3.6 impose income or wealth constraints that many 1975 ................ 29.4 18.3 1.6 9.5 5.0 would-be borrowers cannot overcome. 1976 ................ 44.1 30.6 2.7 10.8 6.7 A number of states made upward adjustments 1977 ................ 63.7 44.9 6.6 12.2 8.3 1978 ................ 80.8 54.4 11.9 14.5 9.1 to their ceilings on conventional home mortgage 1979 ................ 108.7 76.4 15.2 17.1 10.8 1980 ................ 130.1 93.9 16.9 19.3 11.9 rates, or tied the ceilings to various market 1981: 01......... 134.2 97.2 17.1 19.9 12.1 yields, as mortgage rates climbed during 1978 and 1979. At the end of 1979, the federal govern­ Sources. GNMA, FHLMC, FmHA, Federal Reserve. ment preempted state ceilings on first mortgages to a concentration of activity in the lower-priced made by all major types of lenders for the segment of the housing market. purchase of homes (states have until 1983 to Passthrough securities issued and guaranteed override the federal preemption if they wish). by the Farmers Home Administration (FmHA) Paradoxically, federal ceilings still apply to rates also have opened a channel between the bond that can be charged on mortgages insured by the and mortgage markets. These securities are is­ Federal Housing Administration (FHA) or guar­ sued against pools of residential mortgages ac­ anteed by the Veterans Administration (VA). quired by FmHA through its rural home loan Discount points on FHA and VA home mort­ programs, and many of the loans bear interest gages have risen to high levels on many occa­ rates well below market levels. In recent years, sions since the end of 1979, and the admin­ the securities have been sold exclusively to the istration has raised the ceilings nine times since Federal Financing Bank, and the proceeds of then. these sales have replenished a revolving fund used by FmHA to acquire additional mortgages. This program thus has been channeling substan­ Passthrough Securities tial amounts of funds raised by the Treasury into FmHA’s subsidized loan programs. The development of markets for mortgage The Federal Home Loan Mortgage Corpora­ passthrough securities of high quality and with tion (FHLMC) issues and guarantees pass­ good liquidity has given home mortgage borrow­ through securities backed by pools of unsubsi­ ers broader access to the capital markets. The dized conventional residential mortgages. The predominant passthroughs are those guaranteed mortgage pools consist of loans acquired by by GNMA (table 1). These securities, which FHLMC through various purchase programs, represent shares in pools of FHA- and VA- primarily from savings and loan associations, underwritten loans, are issued by private mort­ and most of the securities are marketed to pri­ gage originators (primarily mortgage companies), vate investors through a syndicate of securities and major securities dealers make primary and dealers. FHLMC sets limits on the scope of its secondary markets in the instruments. Funds passthrough programs, considering its own un­ have been available through the GNMA market derwriting capacity and bond market conditions, for households that meet FHA or VA require­ and in recent periods the level of activity has ments and are willing to pay competitive market been relatively low. yields and required insurance premiums. Ceil­ Some mortgage passthrough securities have ings on FHA loan sizes and on the amount of been issued by private institutions against pools loan that VA can guarantee, however, have led of conventional residential mortgages without Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changing Patterns of Housing Finance 465 the benefit of federal guarantees. Despite the 6. Monthly payments on home mortgages potential for this securities market, in terms of Hundreds of dollars the size of the conventional mortgage market, fewer than 50 institutions have issued private passthrough securities since the first offering in 1977, and the total volume has been less than $3 billion. ADJUSTMENTS TO Record Interest Rates As the competitive environment has been strengthened, the interest sensitivity of demand for long-term mortgage credit has become a more important determinant of the volume of funds raised in mortgage markets. And rates on con­ struction loans apparently have had more impor­ tant effects on construction activity as artificial constraints on the availability of funds in the Average monthly payments on newly originated conventional home mortgages calculated by the Federal Reserve from data reported by long-term mortgage market have been disman­ the Federal Home Loan Bank Board. Average household income is tled. Construction lenders ordinarily require national disposable personal income, as reported by the Commerce Department, divided by estimates of numbers of households provided builders to arrange commitments for long-term annually by Commerce and extrapolated by the Federal Reserve. financing before granting construction credit, and in previous periods the effects of construc­ pants to devise ways to help prospective borrow­ tion loan rates on the volume of construction lend­ ers enter the housing markets. Some of these ing seemingly were swamped by shifts in the avail­ measures, however, have prompted counterac­ ability of commitments for long-term financing. tions by the federal government or mortgage Changing interest rates may be expected to holders. affect significantly the quantity of permanent home mortgage credit demanded because large, long-term loans are involved and because home Government Programs purchases often are postponable. Rising nominal interest rates can have a heavy impact on the FHA-insured, graduated-payment home mort­ affordability of mortgage credit, even during in­ gages (GPMs), introduced several years ago, are flation when “real” interest rates may be stable a response of the federal government to the cash­ or falling; interest rate adjustments associated flow problems posed for moderate-income home with upward revisions of price expectations can buyers by high rates of inflation and interest. The increase monthly payments on standard level- GPM provides for lower payments in the early payment mortgage contracts substantially years of the contract and higher payments in the whereas household income needed to carry the latter years; initial payments are less than ac­ payments may increase only gradually as expect­ crued mortgage interest and can be as much as a ed inflation actually develops. As mortgage inter­ fourth below those on level-payment contracts est rates have climbed, the ratio of monthly with the same maturity and interest rate. Since payments on newly originated conventional late 1980, however, GPMs have accounted for home mortgages to average disposable income less than a third of all FHA-insured home mort­ for all households—a rough measure of initial pay­ gages made, down significantly from the shares ment burden—has risen considerably (chart 6). registered during the two previous years. The The high interest rates attained in recent years decline in the relative importance of GPMs has on long-term home mortgages have encouraged occurred because higher interest rates, in combi­ governmental units and private market partici­ nation with FHA limitations on the amount by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 Federal Reserve Bulletin □ June 1981 2. Tax-exempt revenue bonds for housing Amounts issued in billions of dollars Total Single-family Multifamily Total as percent Period housing of all municipal 1 1 bonds Total State Local Total State Local bond issues 1975 .9 .9 .9 3 1976 .................... 2.1 .7 "j 1.4 1.4 6 1977 .................... 3.8 1.0 1.0 2.9 2.6 .3 8 1978 .................... 5.8 3.4 2.8 ”6 2.5 1.8 .7 12 1979 10.5 7.8 3.3 4.5 2.7 1.9 .8 24 .................... 1980 .................... 12.5 10.8 5.7 5.1 1.1 .9 .2 26 1981 : Ql 2 ......... 3.7 2.1 .8 1.3 .7 .6 .1 11 1 . Excluding veterans’ housing general-obligation bonds. Source. U.S. Department of Housing and Urban Development. 2 1981 . Data for the first quarter of are expressed at annual rates. which the outstanding principal balance may rise vation, employed most often by merchant build­ during the initial years of the loan, have caused ers to help sell new homes, is the so-called substantial increases in downpayment require­ “buydown” of mortgage interest rates. This de­ ments on GPMs with given rates of payment vice may be viewed as a builder-created GPM, graduation. and it has been used by roughly half of the State and local governments have taken steps builders who responded to a survey conducted to help borrowers in their areas by channeling by the National Association of Home Builders in funds from tax-exempt securities into the mort­ April of this year. Builder buydowns commonly gage market. Four-fifths of the states have hous­ involve the calculation of mortgage payments for ing finance agencies that provide mortgage funds the first few years of the loan at a mortgage rate 1 at below-market interest rates, and roughly 250 to 3 percentage points below market levels. local governments or municipal housing finance Builders usually make direct payments to mort­ agencies have issued single-family mortgage rev­ gage lenders, corresponding to the amounts by enue bonds since late 1978 when the first of these which the early monthly payments of buyers are securities was floated. In 1980, nearly $13 billion reduced, and all or part of this amount may be of tax-exempt housing revenue bonds were is­ incorporated in the home price and the size of the sued, accounting for more than a fourth of all mortgage. This arrangement, which also counts municipal bonds sold (table 2). on inflation to maintain loan quality, provides buyers with more favorable patterns of loan repayment; permits lenders to make loans at Private-Sector Initiatives going market yields; and can allow builders to control inventory accumulation without cutting A number of mortgage investors and insurers home prices, a critical factor particularly in an recently have liberalized their standards on the environment of record high interest rates on relation of the monthly loan payment to the construction loans (see chart 7). borrower’s income, permitting more borrowers “Creative” financing has become even more to qualify for mortgage credit if they are willing widespread in the market for existing homes. to pay market interest rates. As with GPMs, this According to a survey conducted by the National liberalization relies on the expectation that infla­ Association of Realtors in April, about half of all tion in home prices and borrower income will resale transactions involved some sort of financ­ ensure adequate loan quality. Some prominent ing technique other than a new first-mortgage institutions, including FNMA, FHLMC, and loan from a financial institution. The most com­ some large private mortgage insurance compa­ mon techniques involve the transfer of outstand­ nies, have eased their guidelines, and the prac­ ing low-rate mortgages from home sellers to tice evidently has been widespread among pri­ home buyers, often in combination with seller vate lenders. take-backs of second mortgages or through the Sellers of both new and existing homes have creation of “wraparound” mortgages, which en­ expanded their use of techniques designed to compass the outstanding first mortgage and the make home purchases more affordable. An inno­ amount of additional financing needed by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changing Patterns of Housing Finance 467 7. Home stocks at builders associated with creative financing in the market for existing homes has caused the rate of turn­ Thousands of units over of outstanding home mortgages to slow at traditional mortgage lending institutions, reduc­ 450 ing supplies of loanable funds and holding down earnings. Consequently, many lenders have at­ tempted to invoke due-on-sale clauses that are incorporated in most outstanding conventional mortgage contracts. This reaction has provoked litigation on behalf of home sellers in a number of states. A third of the states currently restrict the enforcement of due-on-sale clauses, and cases are pending in the courts in some other areas. The Federal National Mortgage Association (FNMA), which is the single largest holder of residential mortgages, recently took steps to Merchant-builder stocks of unsold single-family homes are season­ prohibit assumptions of new fixed-rate conven­ ally adjusted end-of-month figures reported by the Census Bureau. tional home loans that it purchases. FNMA also buyer. Such arrangements are attractive to pro­ has developed incentive programs designed to spective home buyers when the size of the out­ encourage borrowers to refinance outstanding standing first mortgage is large and the interest low-rate loans and to discourage assumptions of rate on this mortgage is low relative to current older loans. Some private mortgage holders also market yields, as long as any additional funds have taken such measures in an effort to get old needed for the purchase can be raised at reason­ low-rate loans off their books. able interest rates and for a sufficiently long term. If the various elements constitute a financ­ ing package with after-tax monthly payments ADJUSTMENTS TO that are lower than those on a new first mort­ Greater Rate Uncertainty gage, a prospective home buyer may be willing to pay the seller a premium to assume the outstand­ A system of forward commitments among pri­ ing low-rate loan. The seller, in turn, ordinarily vate and public participants in the mortgage will require a price premium, in some cases as markets has developed over the years, and the compensation for underwriting credit risks or for relatively new forward and futures markets for acquiring a mortgage asset that may not meet his federally guaranteed mortgage passthrough se­ portfolio preferences. curities provide additional risk-management mechanisms that facilitate the orderly operation of mortgage markets. However, the degree of Counteractions rate volatility since late 1979 has prompted vari­ ous institutions to make additional adjustments In view of mounting costs to the Treasury, in to their commitment and investment policies. terms of forgone tax revenues, the federal gov­ ernment put stringent controls on the issuance of tax-exempt, single-family housing bonds at the Commitment Policies end of 1980. The federal law sets limits on the volume that may be issued during the 1981-83 Mortgage originators typically have made com­ period and forbids any issuance thereafter. mitments to provide long-term credit well before Moreover, issues will be permitted during the the funds are scheduled to be disbursed. These three-year transition period only if certain crite­ commitments traditionally have specified a rate ria are met, such as the income position and the of interest, and takedown has been at the option previous housing status of the borrower. of the borrower. During the past year or so, The increased incidence of loan assumptions however, many originators have become reluc­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 Federal Reserve Bulletin □ June 1981 tant to issue this type of option to prospective standby commitments issued through the bi­ borrowers. Adjustments generally have involved weekly auction procedures have been raised the imposition of larger nonrefundable commit­ substantially. ment fees to discourage cancellations when mar­ ket rates fall, the shortening of periods over which a stated interest rate on commitments for Investment Policies conventional loans or a given number of points on FHA- or VA-underwritten loans will be guar­ Rate volatility has made it more difficult for anteed, or the use of floating rates and discount investors to predict future interest rates and thus points tied to some market indicators. has encouraged them to move away from fixed- Major purchasers of mortgage loans also have rate long-term mortgages toward mortgage con­ adjusted their policies as interest rate variability tracts with equity participations or with interest has increased, further encouraging the shift of rates that vary during the life of the loan. This interest rate risks to borrowers. FNMA and tendency had been developing for some time as it dealers in GNMA-guaranteed passthrough secur­ became clear that expectations of short-term rate ities have become less willing to issue fixed-rate, movements embodied in long-term mortgage optional-delivery “standby” commitments. This rates agreed to in earlier periods were too low. type of option has become unavailable or more Statutory or regulatory restrictions on prepay­ expensive at GNMA dealers during the past year ment penalties that may be levied on borrowers because the ultimate issuers of the standbys who wish to refinance outstanding fixed-rate (private investors) have become reluctant to en­ mortgages, and the legal constraints on enforce­ ter into such arrangements and because the deal­ ment of due-on-sale clauses, have further dis­ ers have been less willing to absorb credit risks couraged investors from acquiring traditional on these contracts. At FNMA, a twelve-month mortgage contracts. fixed-rate standby purchase program has been A series of regulatory changes have permitted terminated, and fees charged for four-month thrift institutions and commercial banks to offer a 3. Major characteristics of recent federal regulations governing adjustable-rate home mortgage lending Federal savings and loans Major characteristics and mutual savings banks National banks Requirement to offer fixed-rate mortgage None None instrument to borrower Limit to amount of ARMs that may be None None held Indexes governing mortgage rate adjust­ Any interest rate index that is readily verifi­ One of three national rate indexes-a long-term ments able by the borrower and not under the mortgage rate, a Treasury bill rate, or a threecontrol of the lender, including national or year Treasury bond rate. regional cost-of-funds indexes for S&Ls. Limit on frequency of rate adjustments None Not more often than every six months. Limit on size of periodic rate adjustments None 1 percentage point for each six-month period between rate adjustments, and no single rate 5 adjustment may exceed percentage points. Limit on size of total rate adjustment over None None life of mortgage Allowable methods of adjustment to rate Any combination of changes in monthly pay­ Changes in monthly payment or rate of amor­ changes ment, loan term, or principal balance. tization. Limit on amount of negative amortiza­ No limit, but monthly payments must be Limits are set, and monthly payments must be tion adjusted periodically to amortize fully the adjusted periodically to amortize fully the loan over the remaining term. loan over the remaining term. Advance notice of rate adjustments 30 to 45 days before scheduled adjustment. 30 to 45 days prior to scheduled adjustments. Prepayment restrictions or charges None Prepayment without penalty permitted after notification of first scheduled rate adjustment. Disclosure requirements Full disclosure of ARM characteristics no Full disclosure of ARM characteristics no later than time of loan application. later than time of loan application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changing Patterns of Housing Finance 469 variety of adjustable-rate mortgages (ARMs), unusually low level, and support provided by the and the federal preemption of state mortgage rate federal and related credit agencies has not been ceilings has removed an important practical im­ so strong as in other recent downswings. pediment to ARM expansion. In March 1981, a new regulation was issued to govern convention­ al ARM lending by national banks, and shortly Nonbank Thrift Institutions thereafter revised regulations were approved for federally chartered savings and loan associations Acquisitions of mortgage assets by thrift institu­ and federal mutual savings banks. The current tions have fallen as deposit growth has weakened regulations for these types of federally chartered and mortgage prepayments have slackened be­ institutions override any state laws or regulations cause of both declining sales of existing homes on the subject, and permit large interest rate and widespread assumptions of outstanding adjustments as well as a good deal of latitude for mortgages (chart 9). A marked squeeze on earn­ negotiation of terms between borrowers and ings also has occurred at these institutions, en­ lenders (table 3). The powers of state-chartered couraging them to move unusually large amounts depository institutions to offer ARMs vary wide­ of funds into short-term nonmortgage assets in ly, but only three states prohibit home mortgages order to maximize short-run returns and mini­ with adjustable rates. mize interest rate risks over the longer term. The Lenders have been inclined to make rate con­ federal tax code, of course, encourages thrift cessions on ARMs to encourage borrowers to institutions to maintain large proportions of their accept the greater interest rate risks on these assets in residential mortgage instruments and a contracts. Yields on mortgages providing for few other forms. limited rate adjustments every three to five Earnings problems at the thrift institutions years, which had been the dominant form of have stemmed from the structure of their balance ARM immediately before the recent changes in sheets in combination with sharply rising market regulations, generally carried interest rates Vi to interest rates. The maturity structure of thrift 1 percentage point below going rates on fixed- liabilities has shortened considerably in recent rate loans, although spreads as wide as 2 percent­ years, primarily because of the rapid growth of age points were evident in some areas. Yield MMCs. Thrift assets, on the other hand, have relationships for the more flexible ARMs have remained concentrated in long-term, fixed-rate not yet been set by the market, but FHLMC and forms, many of which were acquired when inter­ FNMA are likely to help establish industry stan­ est rates were much lower; indeed, at the end of dards through development of purchase pro­ 1980, long-term mortgages bearing interest rates grams for specific types of ARMs. below 10 percent accounted for as much as 70 percent of all mortgages held by thrift institu­ tions. Moreover, the institutions have not been Changing Structure able to dispose economically of the seasoned of Mortgage Supply low-rate assets held in their portfolios because sales during periods of high market interest rates The structure of funds supplied to residential require them to book capital losses that are mortgage markets, through acquisitions of mort­ chargeable against current operating income and gage loans or passthrough securities, has can cut into capital positions. Net sales of mort­ changed markedly during the current housing gage assets (including passthrough securities) by downswing—and in ways that differ in some the savings and loan industry have been small or respects from the patterns of past cycles (chart negative in recent years. 8). Mortgage acquisitions by the state and local government sector have increased substantially, and participation by private diversified inves­ Diversified Private Investors tors, including individuals, has been relatively strong. The market share of the nonbank thrift Markets for federally underwritten passthrough institutions, on the other hand, has receded to an securities offer the investment community mort- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 Federal Reserve Bulletin □ June 1981 8. Net change in residential mortgage assets by type of holder Investor share, percent State and local agencies Diversified private investors Federal and related agencies Savings and loans and mutual savings banks Shares of net change in total residential mortgage debt outstanding, of the securities, based on data reported by the Federal Home Loan as shown in chart 4 . Mortgages in pools backing issues of federally Bank Board, the National Association of Mutual Savings Banks, and guaranteed passthrough securities have been allocated to the holders the Farmers Home Administration. gage-related instruments of high quality and li­ occupied a fairly steadily growing position in the quidity that consistently have yielded more than residential mortgage markets. By early 1980, Treasury or agency securities with similar matu­ about three-fourths of the GNMA-guaranteed rities. These securities have appealed to a variety passthrough securities outstanding were held by of investors with diversified portfolios, and have private institutions other than the thrift institu­ tions, and diversified investors have been pur­ 9. Funds flows and acquisitions of chasing large shares of the mortgage participa­ mortgage assets at savings and loans tion certificates issued and guaranteed by Billions of dollars FHLMC. Even so, the pension funds, which have been the major investor target of the federal passthrough programs, have as yet acquired only moderate amounts of these types of securities. The unusual and uncertain cash-flow patterns (which depend upon prepayments of mortgages in the pools) have discouraged many pension funds from participating in the major pass­ through markets. A special type of FHLMC passthrough security, with cash-flow features similar to those of bonds and dubbed the guaran­ teed mortgage certificate, has proved attractive to the pension funds. The spread between yields on long-term home mortgages and bonds widened in the final years Acquisitions of mortgage loans and passthrough securities are equal to mortgage originations plus net purchases, and funds flows are net of the 1970s, reflecting strong demands for home deposit flows plus repayments (including prepayments) from mort­ mortgage credit at a time when business de­ gages held. Based on data reported by the Federal Home Loan Bank Board and seasonally adjusted by the Federal Reserve. mands for long-term funds were moderate. This Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changing Patterns of Housing Finance 471 development had a substantial positive effect on window on several occasions during the current mortgage acquisitions at both commercial banks housing contraction, including the first five and life insurance companies. The yield spread months of this year; the cost of these funds has has narrowed somewhat during the past year, been high, however, and the advances generally reducing the relative attractiveness of long-term have been used to meet outstanding mortgage home mortgage loans. Even so, mortgage acqui­ commitments at times of slackening flows of sitions at banks have been fairly strong in recent deposits and mortgage repayments. Advances at periods, as these institutions have moved more below-market interest rates were employed dur­ funds into high-yielding construction loans. But ing the 1974 downswing to encourage borrowing mortgage activity has contracted sharply at the for mortgage investment, but such a program has life insurance companies, reflecting both relative not been put in place in the current contraction. yield movements and a drain on investable funds due to a rise in policy loans. State and Local Governments Federally Related Agencies Seven-eighths of the nearly $13 billion in taxexempt housing bonds issued last year was used Federal programs of mortgage purchases can to subsidize home mortgage borrowers, and the help to temper cyclical declines in housing mar­ balance was employed to provide low-rate fi­ kets, particularly when the mortgages are made nancing to owners of multifamily projects that available to borrowers at below-market interest also received support under the rental subsidy rates and are held within the federal sector until programs operated by HUD. The proceeds of market conditions improve. In the current down­ some housing bond issues have been used to swing, the agencies have supported mortgage finance low-rate loans to private financial inter­ markets less vigorously than in other recent mediaries that originate and hold low-rate mort­ declines. FHLMC has adhered to a policy of gages. But mortgage acquisitions by state and closely matching purchases of mortgages and local government agencies also have burgeoned. resales through issues of passthrough securities, In 1980, gross acquisitions by these agencies stressing its role in the development of second­ amounted to nearly a tenth of all long-term ary markets for conventional mortgages. More­ residential mortgages originated during the year. over, the administration has not resurrected the Mortgage acquisitions by the agencies remained so-called GNMA tandem plan for the purchase of large in the early months of this year, but the low-rate home mortgages that was prominent in volume inevitably will dwindle because of the the previous housing downswing. Finally, federal limits placed on bond issues at the end of FNMA has been conservative in the issuance of 1980. mortgage purchase commitments because its earnings have eroded for the same reason that ★ ★ ★ profitability has declined at the thrift institutions: a preponderance of long-term fixed-rate mort­ gage assets in combination with liabilities of The housing finance system is bound to under­ much shorter maturity. go additional change in coming years because of Loans by the Federal Home Loan Banks to both public policy measures and private-sector members of the FHLB System (primarily savings initiatives in an era of financial deregulation. and loan associations) traditionally have been Ceilings on deposit rates are due to be phased out made available to ease temporary liquidity prob­ under legislation now in effect, and the Congress lems associated with deposit shortfalls, and in has authorized a demonstration program al­ some housing contractions the use of such “ad­ lowing FHA-insured home mortgages to be writ­ vances” to expand mortgage lending also has ten at market rates of interest. The removal of been encouraged. Savings and loan associations deposit-rate controls will further encourage thrift have borrowed rather heavily at the advance institutions and banks to market the newly au­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 Federal Reserve Bulletin □ June 1981 thorized adjustable-rate loans unless interest rate when market rates are high. On the other hand, uncertainties diminish. Because lenders general­ ARMs might reduce incentives to postpone ly are better able than borrowers to bear interest mortgage borrowing in periods of high interest rate risks, however, fixed-rate loans are likely to rates because subsequent rate declines would remain an important factor in the market. affect both new and outstanding mortgages. The additional relaxation of artificial con­ Federal outlays in support of the housing mar­ straints in mortgage markets might further re­ kets may be limited in coming years, in view of duce the sensitivity of housing activity to shifts the national sentiment favoring balanced budgets in general credit conditions. More widespread and larger flows of capital to the defense and use of ARMs also could change the response of industrial sectors. The use of tax-exempt securi­ mortgage and housing activity to changes in ties to subsidize mortgage interest rates also is in interest rates. To the extent that ARMs tend to disfavor at the federal level, and growth of be priced like short-term market instruments, federal programs to underwrite credit risks on their rates will fluctuate over a wider range than mortgage loans and passthrough securities may those on fixed-rate loans, making it more difficult be constrained by the new federal credit bud­ for borrowers to meet initial monthly payments get. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

473 Financial Developments of Bank Holding Companies in 1980 This article was prepared by Anthony G. Cornyn Earnings and Profitability and Thomas L. Zearley of the Board's Division of Banking Supervision and Regulation. Earnings of bank holding companies continued to expand in 1980, but at a measurably slower In 1980 bank holding companies were forced to pace than in the preceding two years. Aggregate operate in a particularly difficult environment— net income before securities transactions of the with unprecedented levels and volatility of inter­ 409-company universe rose 9.8 percent last year est rates, a sharp but brief recession, and high to $8.5 billion (table 1); growth had been 26.9 rates of unemployment and inflation. Yet, on percent in 1978 and 20.0 percent in 1979. balance, bank holding companies came through Earnings in 1980 were favorably affected by this period reasonably well. Earnings continued strong gains in both interest income and nonin­ to expand, although at a somewhat more moder­ terest income. However, these gains were par­ ate pace than in recent years. Rates of profitabili­ tially offset by a surge in interest expenses, a ty remained satisfactory, although they also significant rise in overhead, and a marked expan­ edged moderately lower. And capital ratios, sion in loan-loss provisions. which had been trending down for a decade or While all three peer groups increased earnings so, gained some ground during the year. Some during 1980, the gains were not evenly distribut­ evidence of deterioration in asset quality sur­ ed (table 2). The medium-size bank holding com­ faced, particularly in consumer loan portfolios in panies posted a 14.6 percent increase in earn­ which net loan losses rose sharply over levels in ings—nearly twice the average of the large ones 1979. and more than three times that of the small This article reviews major financial develop­ companies. A significant contraction in net interments of bank holding companies during 1980 and is based on data from the bank holding company financial supplement (form FR Y-9). 1. Selected income and expense items, 1979 and 19801 The sample consists of 409 bank holding compa­ nies that had more than $100 million in fully Amounts in millions of dollars consolidated assets at year-end 1980.1 These 409 Item 1979 1980 Change companies controlled aggregate deposits of (percent) $985.6 billion or about 66.5 percent of the depos­ Gross interest income 2 ................... 105,871 134,338 26.9 68,947 94,404 36.9 Gross interest expenses................ its held by U.S. commercial banking institutions. 36,924 39,934 8.2 Net interest income....................... This article presents data for the entire sample of 9,312 11,925 28.1 Noninterest income......................... 409 companies (universe) and for three size Noninterest expenses.................... 27,658 32,016 15.8 2,861 3,425 19.7 Loan-loss provisions...................... classes or peer groups: 44 holding companies Income before taxes....................... 15,718 16,418 4.5 with more than $5 billion in assets; 133 with $1 3,095 3,108 .4 billion to $5 billion in assets; and 232 with $100 Tax equivalent adjustment......... 4,866 4,790 ( 1 . 6 ) Net income before million to $1 billion in assets. securities transactions.............. 7,756 8,520 9.8 )3 166 337 Securities gains (losses .............. ( ) ( ) Net income......................................... 7,590 8,182 7.8 Note. Susan Rowe assisted in preparing the tables for this 1 409 . Universe of bank holding companies. Details may not add to article. totals because of rounding. 1. As of December 31, 1980, 3,057 registered bank holding 2 . Fully taxable equivalent. companies were in existence. 3 . Includes extraordinary items. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 Federal Reserve Bulletin □ June 1981 2. Net operating income, 1977-801 to net interest income because of the contraction Percentage change in margins. Measured in relation to average 1977-78 1978-79 1979-80 assets, net interest margins dropped to 3.14 Size class percent in 1980, down 11 basis points from the 26.9 20.0 9.8 U $1 n 0 i 0 verse............ $ .. 1 ................................ 29.2 19.8 4.7 previous year (table 3). million to billion.............. $1 $5 25.6 21.9 14.6 billion to billion.................... Especially noteworthy is that last year’s slip­ $5 27.3 19.4 8.6 billion or more............................ page in margins was confined mainly to bank 1 . Before securities transactions and extraordinary items. holding companies in the large size class (table 4). Margins of these companies plummeted 18 est margins was in large part responsible for the basis points in 1980, while those of the small and relatively slow earnings growth of the large com­ medium-size companies rose 12 and 5 basis panies. Several factors, including a sluggish 3.5 points respectively. For the most part, the varia­ percent expansion in net loans and a compara­ tions in the margin performance in 1980 can be tively sharp rise in loan-loss provisions, adverse­ attributed to the lower cost of funds of the small ly affected the earnings of the small companies. and medium-size companies. The large compa­ Gross interest revenue (on a fully taxable nies, which tend to rely more heavily on rateequivalent basis) of the 409-company universe sensitive liabilities, saw funding costs climb 38.3 advanced to $134.3 billion in 1980, up 26.9 per­ percent in 1980. In comparison, interest expense cent from $105.9 billion in 1979 (table 1). Never­ rose an average of about 33 percent for both the theless, despite this strong increase in revenue, small and the medium-size companies. interest expense rose even faster, climbing from $68.9 billion in 1979 to $94.4 billion in 1980, or 36.9 percent. As a result, net interest income for 4. Net interest margins, 1979 and 19801 the universe totaled $39.9 billion, an increase of Percent $3.0 billion, or 8.2 percent from the level a year Change earlier. Size class 1979 1980 (basis points) The rise of 8.2 percent in net interest income in 3.25 3.14 -11 Universe.............................................. 1980 was the product of expanded asset volume $100 million to $1 billion.............. 4.35 4.47 12 $1 billion to $5 billion.................... 4.03 4.08 5 that more than overcame a modest decline in net $5 billion or more............................ 2.87 2.69 -18 interest margins. Aggregate assets of the 409- 1 . Taxable equivalent net interest income divided by average company universe increased 10.3 percent in assets. 1980, while net loans rose 9.9 percent. This growth, however, did not flow entirely through Excellent growth in trading account profits, lease financing revenues, and other income 3. Selected income statement items, 1978-801 pushed noninterest income up 28.1 percent in Percent of average assets 1980 to $11.9 billion for the universe. Last year’s 1978 1979 1980 Item increase was considerably higher than the rate of Gross interest income 2 ................... 7.66 9.31 10.55 asset expansion, and so noninterest income rose 4.49 6.06 7.42 Gross interest expenses............... 3.18 3.25 3.14 to 0.94 percent of average assets in 1980, from Net interest margin......................... .79 .82 .94 0.82 percent in 1979. Noninterest income......................... 2.41 2.43 2.52 Noninterest expenses.................... All three peer groups of bank holding compa­ .27 .25 .27 Loan-loss provisions...................... Pretax income................................... 1.29 1.38 1.29 nies reported gains in noninterest income. How­ .29 .27 .24 ever, the strongest gains were generally posted Taxes .................................................... .36 .43 .38 Tax equivalent adjustment......... by the large companies, many of which enjoyed Net income before securities transactions.............. .65 .68 .67 sizable increases in their foreign exchange reve­ Securities gains (losses )3 .............. (. 01 ) (. 01 ) (. 03 ) nues and loan fees. Net income......................................... .63 .67 .64 On the other side of the ledger, noninterest 1 . Universe of 409 bank holding companies. Details may not add to expenses (excluding loan-loss provisions) totaled totals because of rounding. $32.0 billion in 1980, up 15.8 percent from $27.7 2 . Fully taxable equivalent. 3 . Includes extraordinary items. billion in 1979. This rise in overhead, which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1980 475 largely reflects inflationary forces in the econo­ 5. Net return on average assets, 1978-801 my, measurably outpaced asset expansion. As a Percent result, noninterest expenses as a percent of aver­ 1978 1979 1980 Size class age assets moved from 2.43 percent in 1979 to 2.52 percent in 1980. $ U 1 n 00 iv m er i s ll e io ... n .. .. t . o ... . $ .. 1 .. .. b ... i .. l . l . i .. o ... n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 65 9 . . 8 68 6 . . 8 6 3 7 All three peer groups experienced strong $1 billion to $5 billion...................... .75 .83 .86 $5 .59 .61 .59 billion or more............................. growth in overhead during 1980. While year-toyear increases by bank holding companies in the 1 . Net income before securities transactions and extraordinary items divided by average assets. large size class averaged 16.8 percent, those of the small and medium size class averaged 14.3 equaled $8.2 billion, up 7.8 percent from $7.6 percent and 13.7 percent respectively. billion in 1979. Reflecting uncertainty about credit quality, Despite the moderation in earnings growth, provisions for loan losses for the universe profitability remained relatively stable. Between jumped 19.7 percent to $3.4 billion in 1980, up 1979 and 1980, the return on average assets for from $2.9 billion in 1979. In proportion to aver­ the universe decreased just 1 basis point, from age assets, loan-loss provisions rose from 0.25 0.68 percent to 0.67 percent. Return on equity percent in 1979 to 0.27 percent in 1980. The also declined slightly, dropping from 14.7 per­ increase in provisions was prompted also by a cent in 1979 to 14.4 percent in 1980. sharp rise in net charge-offs. For the universe, Slippage in profitability was generally concen­ net loan charge-offs advanced 39.3 percent in trated among bank holding companies in the 1980 to $2.7 billion, up from $1.9 billion in the small and large size classes (tables 5 and 6). previous year. Sizable write-downs of several Indeed, while these two classes experienced large corporate credits and a dramatic rise in declines in return both on assets and on equity, consumer loan defaults contributed to the in­ the medium size class posted gains. Of the three crease in net charge-offs. Problems in the con­ peer groups, the medium-size and small compa­ sumer credit area were due in part to higher nies continued to earn substantially higher re­ unemployment and heavier debt service burdens turns on assets in 1980. However, because they and in part to the recently liberalized personal are more highly leveraged, the large banking bankruptcy laws. organizations produced higher returns on equity. Sharp increases in loan-loss provisions were largely confined to the small and large bank 6. Net return on average equity, 1978-801 holding companies in the universe. While loan- Percent loss provisions rose an average of only 12.1 1978 1979 1980 percent in 1980 for companies ranging in size Size class from $1 billion to $5 billion, they increased 27.4 13.6 14.7 14.4 percent for those organizations with assets from $ $ 1 1 0 b 0 i l m lio il n li o to n $ to 5 $ b 1 i ll b io il n li . o ... n ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2 2 . . 8 9 1 1 3 4. . 0 9 1 13 4 . . 1 4 $100 million to $1 billion. For those with assets in $5 billion or more............................. 13.9 14.9 14.5 excess of $5 billion, provisions grew 21.7 percent 1 . Net income before securities transactions and extraordinary in 1980. items divided by average equity. On a fully taxable equivalent basis, before-tax income for the universe totaled $16.4 billion in 1980, up 4.5 percent from $15.7 billion the previ­ Balance-Sheet Changes ous year. Reducing this figure by income taxes and the tax-equivalent adjustment—to reverse After several years of strong growth, the rate of the earlier grossing up of tax benefits related to asset expansion of the 409-company universe tax-exempt revenues—resulted in net income subsided somewhat in 1980. This slowing reflect­ before securities transactions of $8.5 billion in ed the impact of the Federal Reserve’s credit 1980, which was 9.8 percent higher than the $7.8 restraint program, the slowdown in economic billion in 1979. After deducting securities losses activity, and the tightening of credit markets, all and extraordinary items of $337 million in 1980 of which acted to dampen loan demand. Aggre­ (compared with $166 million in 1979), net income gate consolidated assets of the universe expand­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 Federal Reserve Bulletin □ June 1981 ed 10.3 percent in 1980, compared with growth was the decline in non-interest-bearing cash bal­ rates of 13.8 percent in each of the two preceding ances as a percentage of total assets. The oppor­ years. Among the three size classes, the total tunity cost of maintaining these balances in­ assets of the small companies increased 8.9 per­ creased as interest rates rose and, consequently, cent during the year, slightly below the growth banking institutions moved to curb their growth. rates of the companies in the larger-size groups. At year-end 1980, non-interest-bearing cash bal­ Turbulent money and credit conditions charac­ ances of the 409-company universe amounted to terized by unprecedented interest rate volatility 10.7 percent of aggregate assets, down from 11.7 in 1980 resulted in changes in the asset and percent as of December 31, 1979, and 12.5 per­ liability composition of bank holding company cent a year earlier. balance sheets (table 7). In general, companies The percentage of assets allocated to money continued to realign their balance sheets in the market instruments reached 13.2 percent by direction of assets and liabilities with shorter year-end 1980, up from 12.8 percent at the end of maturities and greater interest-rate sensitivity. 1979. (Money market instruments were defined On the asset side, holdings of money market to include interest-bearing cash balances with instruments and investment securities increased other depository institutions, trading account as a percentage of total assets, while non-inter- securities, federal funds sold, and securities pur­ est-bearing cash balances and net loans outstand­ chased under agreements to resell.) As shown in ing were pared back in relation to total assets. On table 7, the large bank holding companies contin­ the liability side, dependence on deposits as a ued to hold a significantly greater share of their source of funds decreased, while costlier nonde­ assets in money market instruments than the posit liabilities, including federal funds pur­ small companies. For example, companies in the chased, commercial paper, and borrowings with large size class held an average of 14.8 percent of an original maturity in excess of one year, in­ their assets in money market instruments at yearcreased relative to total footings. end 1980, compared with 8.2 percent for those in One change in asset composition over the year the small size class. 7. Selected balance-sheet items, year-end 1979 and 1980 Percent of total assets Size class $5 billion $1 billion— $100 million- Item or more $5 billion $1 billion Universe 1979 1980 1979 1980 1979 1980 1979 1980 Cash (excluding interest-bearing deposits).................... 11.7 10.6 12.2 11.4 10.4 9.1 11.7 10.7 Money market investments 1 ................................................. 14.9 14.8 8.3 9.9 6.1 8.2 12.8 13.2 9.3 9.3 19.3 20.1 23.3 25.0 12.5 12.8 Investment securities............................................................... Loans and leases, net............................................................. 56.6 57.4 55.4 53.2 55.9 53.2 56.3 56.2 Premises and equipment......................................................... 1.0 1.0 1.9 1.9 2.2 2.2 1.3 1.3 Other real estate........................................................................ .1 .1 .2 .2 .2 .2 .2 .1 6.4 6.8 2.7 3.3 1.9 2.1 5.2 5.6 Other assets................................................................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total assets......................................................................... 20.2 18.3 30.0 27.9 29.8 27.4 23.1 21.1 Demand deposits........................................................................ Time deposits in denominations of $ 100,000 or more . 11.3 13.2 13.0 13.4 12.6 13.8 11.8 13.3 Other time deposits.................................................................. 5.6 6.3 16.0 18.3 21.3 23.7 9.0 10.3 Savings deposits........................................................................ 6.2 5.5 15.1 13.9 19.2 17.2 9.1 8.2 30.1 28.8 3.3 3.0 .1 .1 21.9 20.9 Foreign deposits........................................................................ 73.4 72.1 77.4 76.5 83.0 82.2 74.9 73.8 Total deposits..................................................................... 2 13.5 14.4 12.0 12.6 7.2 8.0 12.7 13.6 Short-term borrowings .......................................................... Long-term borrowings............................................................ 2.1 2.2 2.0 1.9 1.8 1.7 2.1 2.1 7.0 7.2 2.7 2.9 1.6 1.5 5.6 5.8 Other liabilities........................................................................... 3 4.0 4.1 5.9 6.0 6.4 6.5 4.6 4.7 Stockholders’ equity ............................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total liabilities and stockholders’ equity.............. 1 . Includes interest-bearing cash balances with other depository sold under agreements to repurchase, and other borrowings with an institutions, trading account securities, and federal funds sold and original maturity of one year or less. securities purchased under agreements to resell. 3 . Includes minority interest in the equity accounts of consolidated 2 . Includes commercial paper, federal funds purchased, securities subsidiaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1980 All In contrast to the trend of recent years, invest­ loans outstanding declined $521 million or 0.47 ment portfolios increased relative to assets in percent to $112.1 billion. By comparison, com­ 1980. The increase was due partly to sluggish mercial and industrial loans, loans to financial loan demand. For the 409-company universe, the institutions, and real estate loans grew at rates in ratio of investment securities to aggregate assets excess of 10 percent over the same period. Loans rose from 12.5 percent at the end of 1979 to 12.8 made at foreign offices and at Edge and Agree­ at the end of 1980. Most of the increase was in ment subsidiaries rose 15.1 percent and lease the form of U.S. Treasury securities and obliga­ financing receivables were especially strong, tions of other U.S. government agencies and climbing 21.8 percent over the period. The com­ corporations. Holdings of other bonds, notes, position of the loan portfolios of the three size and debentures also rose slightly in relation to classes and the universe is shown in table 8. assets, but obligations of states and political Among the three groups of bank holding com­ subdivisions declined slightly from 5.9 percent of panies, the growth of loan and lease volume assets at the end of 1979 to 5.8 percent by the end varied significantly. The large companies report­ of 1980. The proportion of assets held in the form ed a 12.1 percent increase in outstandings, nearly of investment securities by companies in the twice the 6.2 percent increase of the medium-size three size classes varied markedly. The smaller companies, and substantially above the 3.5 per­ companies held an average of 25.0 percent of cent increase of the small companies. their assets in investment securities compared On the liability side, deposit growth was gener­ with only 9.3 percent for large companies. ally sluggish. The growth of demand and con­ Reflecting recessionary conditions and the im­ sumer savings deposits slowed, while deposit pact of the credit restraint program, the rate of accounts offering market-related yields, primari­ loan growth in 1980 was substantially below that ly the 6-month “money market certificates” and of recent years. The 409-company universe re­ the 2!/2-year “small-saver certificates,” in­ ported net loans and leases outstanding of $750.5 creased sharply during the year. Overall, the billion at year-end, an increase of only 10.2 total deposits held by the 409-company universe percent from the prior year-end total of $681.1 increased only 8.7 percent in 1980, and by yearbillion. This growth in volume was slightly below end the ratio of total deposits to total assets had the rate of asset expansion, and so the ratio of fallen to 73.8 percent, down from 74.9 percent at net loans and leases edged slightly lower from the end of 1979, and 76.8 percent a year earlier. 56.3 percent at year-end 1979 to 56.2 percent by With the slowing in deposit growth, short-term the end of 1980. borrowings played a larger role as a source of The slowdown in the pace of lending was in funds in 1980 than in prior years. The ratio of large part attributable to a pronounced weaken­ short-term funds to total assets rose from 12.7 ing in the demand for consumer credit. Between percent at year-end 1979 to 13.6 percent by the year-end 1979 and year-end 1980, consumer end of 1980. As shown in table 7, dependence on 8. Composition of loan portfolios, year-end 1979 and 1980 Percent of gross loans and leases Size class $5 billion $1 billion— $100 million- Item or more $5 billion $1 billion Universe 1979 1980 1979 1980 1979 1980 1979 1980 Loans made at domestic offices Real estate loans........................................................................... 15.8 16.1 30.9 31.3 36.9 37.2 20.7 20.8 Loans to financial institutions................................................. 6.4 6.3 4.0 4.2 1.6 1.7 5.5 5.5 Commercial and industrial loans........................................... 26.6 26.8 30.4 32.0 28.8 29.8 27.6 28.1 Consumer loans............................................................................. 11.8 10.7 26.0 23.8 26.8 25.2 16.0 14.5 All other loans................................................................................ 5.2 4.7 4.3 3.9 4.8 4.9 4.9 4.6 Loans made at foreign offices and at Edge Act and Agreement subsidiaries..................... 31.8 32.8 3.0 3.1 .1 .1 23.2 24.2 Lease financing receivables.......................................................... 2.4 2.6 1.4 1.6 1.0 1.1 2.1 2.3 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 Federal Reserve Bulletin □ June 1981 short-term borrowed funds tends to be related to the universe increased 11.9 percent in 1980, asset size. On average, companies in the large outpacing the 10.3 percent increase in total as­ size class support 14.4 percent of their assets sets. with short-term borrowings, compared with the Although earnings retention remained the pre­ 12.6 percent average of the medium size class dominant source of equity growth, several offer­ and 8.0 percent for the small size class. ings of preferred and common stock were made The total volume of medium- and long-term during the year. Companies in the universe borrowings of the 409 bank holding companies at raised in excess of $340 million in preferred stock year-end 1980 was $28.5 billion, up $3.6 billion, and $160 million in common stock in 1980. With or 14.5 percent, from the end of the previous stocks selling at depressed multiples of price to year. The volume of medium- and long-term debt earnings and price to book value throughout outstanding at the 409 companies amounted to 1980, most banking institutions continued to 2.1 percent of assets as of year-end 1980, un­ view common stock financing as unattractive. changed from that of a year earlier. Although not The attractiveness of preferred stock financing shown in the table, the volume of intermediate- also diminished toward the close of the year as term funding increased significantly during the the yields demanded by the investors on pre­ year as the forbidding interest rate levels in early ferred stock climbed steadily in the fourth quar­ and late 1980 discouraged longer-term funding. ter. Capital Loan Charge-Offs Some progress was made in strengthening capital Net loan charge-offs of the 409-company uni­ during 1980. The composite ratio of equity to verse rose 39.3 percent in 1980 to $2.7 billion, total assets of the 409-company universe was compared with $1.9 billion in 1979. As noted 4.69 percent at year-end 1980, up from 4.63 earlier, this surge in loan losses reflected sizable percent at the end of the previous year. Similar­ write-downs of several large corporate credits ly, the ratio of equity to risk assets (total assets and a sharp increase in consumer loan defaults. less cash and U.S. government securities) in­ The composite ratio of net loan losses to average creased from 6.30 percent to 6.37 percent over loans oustanding, which had been trending down the 12 months ending December 31, 1980. The since 1975, moved up to 0.38 percent in 1980 improvement in capital ratios was shared by each from 0.31 percent in 1979 (table 10). Among the of the three size classes (table 9). three peer groups, the large companies reported The increase in capital ratios was the result of the lowest level of net charge-offs to average both a modest increase in the rate of equity loans for the year, 0.36 percent, while the small growth over that experienced in 1979 and a more and medium-size companies reported loss ratios pronounced slowdown in the rate of asset of 0.45 percent and 0.43 percent respectively. growth. On an aggregate basis, the total equity of Aggregate net charge-offs for 1980 amounted to 9. Selected capital ratios, year-end 1978-80 Percent Equity to assets 1 Equity to risk assets 2 Size class 1978 1979 1980 1978 1979 1980 Universe................................ 4.73 4.63 4.69 6.49 6.30 6.37 $100 $1 6.27 6.42 6.51 8.19 8.32 8.63 million to billion. $1 billion to $5 billion....... 5.92 5.95 6.02 7.92 7.93 8.07 $5 billion or more.............. 4.16 4.02 4.08 5.81 5.57 5.58 1 . Total stockholders’ equity plus minority interest in consolidated subsidiaries divided by total assets less cash and due from depository subsidiaries divided by total assets. institutions, U.S. Treasury securities, and obligations of U.S. govern- 2 . Total stockholders’ equity plus minority interest in consolidated ment agencies and corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1980 479 10. Net loan losses to average loans outstanding, possible losses has remained at 1.0 percent of 1978-80 gross loans over the past several years. Percent 1978 1979 1980 Size class Conclusion .35 .31 .38 Universe.............................................. $100 $1 .38 .34 .45 million to billion.............. $ $1 5 billion to $5 billion.................... . . 3 4 3 0 . . 2 3 8 8 . . 3 43 6 Against the backdrop of considerable turbulence billion or more............................ in the money and credit markets, the perform­ ance of the nation’s largest bank holding compa­ 3.9 percent of total equity plus reserves for loan nies in 1980 was generally satisfactory. Earnings losses, compared with 3.1 percent in 1979. continued to advance, profitability remained in­ At year-end 1980, the allowance for possible tact, and capital ratios gained ground. The diffi­ losses of the 409-company universe stood at $7.6 cult economic environment, however, resulted in billion or 1.0 percent of average gross loans some deterioration in asset quality as evidenced outstanding. This allowance or “reserve” for by a sharp rise in loan charge-offs. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 Financial Performance of Small Banks, 1977-80 Roger T. Cole of the Division of Banking Super­ Federal Reserve Districts. The Chicago District vision and Regulation prepared this article.1 (19 percent) and the Kansas City District (17 percent) have the greatest concentrations, with How well have small banks coped with signifi­ the Atlanta, St. Louis, Minneapolis, and Dallas cant change and some adversity in the period Districts accounting for the remainder. Illinois, from 1977 through 1980? Among the changes Minnesota, and Texas are home states for about faced by small banks were deposit deregulation, one-fourth of the banks. high and volatile interest rates, increasing com­ petition from other banks and from thrift and nondepository institutions, and the possibility of PROFITABILITY deteriorating asset quality because of sluggish economic conditions and new bankruptcy laws. The aggregate net income of small banks in­ creased each year during the 1977-80 period, from $2.85 billion in 1977 to $4.01 billion in 1980. Profile of Small Banks This increase in net income consistently out­ paced the growth of assets at small banks. As a This study assesses the recent financial perform­ consequence, return on assets rose steadily from ance of small banks, which are defined as com­ 0.98 percent in 1977 to 1.19 percent in 1980 (table mercial banks with total assets of less than $100 1), an improvement substantially better than the million.2 These institutions are an important part increase for larger banks—from 0.63 to 0.70 of the commercial banking system, especially in percent over the same period. certain geographic regions. Underlying the improved profitability of small At year-end 1980, the 12,735 institutions de­ banks was the increase in gross interest earned fined as small banks had total assets of $356.2 on assets. High average interest rates provided billion, or 19 percent of the total assets held by an opportunity to increase yields on interestall insured commercial banks. Small banks re­ earning assets. Small banks were able to take ported net income of $4 billion in 1980, or 29 advantage of this opportunity because of their percent of the earnings of the commercial bank­ relatively large holdings of assets with moderate­ ing system. ly short-term maturities. As a result, gross inter­ Almost 63 percent of small banks are located est earned on their assets increased from 7.16 outside the standard metropolitan statistical ar­ percent in 1977 to 9.68 percent in 1980. eas (SMSAs) and hold assets of $199.2 billion, or Higher funding costs partially offset the in­ 56 percent of total small-bank assets. Eighty-two creased interest revenue. One reason for the rise percent of all small banks are concentrated in six in funding costs is that banking customers are becoming more rate conscious and, consequent­ 1. Barbara Opper and Nancy Pittman developed the data ly, are shifting funds from demand deposits and base, and Susan Rowe and Mary McLaughlin provided other sources substantially below market rates to research assistance. instruments paying closer to market rates. Sec­ 2. See footnote 1 to table 1 for the exact definition of small banks used to develop the financial data base. The profile ond, market rates have moved upward. Largely data include new banks. The financial data base excludes new because of such factors, interest expense as a banks because the influence of new-bank formations is not percent of assets increased from 3.43 percent in considered to be part of the trends for the financial condition of the established industry. 1977 to 5.37 percent in 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Performance of Small Banks, 1977-80 481 1. Income and expense items as a percent of In addition to the improved interest margins, average total assets, insured small commercial small banks have also experienced steady growth banks, 1977-801 in noninterest revenues such as service charges on deposit accounts. Apparently, many small 1977 1978 1979 1980 Item banks have taken advantage of various opportu­ 7.16 7.61 8.46 9.68 Gross interest earned....................... 3.43 3.65 4.27 5.37 nities to offer more services or to raise the Gross interest expense..................... Net interest margin....................... 3.74 3.96 4.19 4.32 service charges for existing services. As a result, .51 .53 .59 .63 Noninterest revenue.......................... Loan-loss provision............................ .22 .25 .24 .26 over the four-year period, noninterest revenue as 2.85 2.91 3.01 3.11 Other noninterest expense.............. 1.18 1.34 1.52 1.57 a percent of assets increased 12 basis points to Income before tax.......................... 2 .22 .29 .34 .36 Tax ................................................. 0.63 percent (table 1). .95 1.05 1.18 1.21 Net operating income................... Other (net of taxes )3 ................ .03 -.01 -.03 -.02 Fairly steady and moderate loan-loss provi­ .98 1.04 1.15 1.19 Net income........................................ sions also have contributed to solid earnings performance. The loan-loss provision as a per­ Memo Taxable equivalen 4 t 4.28 4.50 4.73 4.89 cent of assets ranged from 0.22 percent in 1977 to interest margin .............................. Average assets 0.26 percent in 1980. This range was consistent 291.4 308.7 321.4 337.8 (billions of dollars).......................... : with the satisfactory asset quality experienced 1 . Small banks include all commercial banks located in the United during 1977-79. As discussed later, the higher States that are insured by the Federal Deposit Insurance Corporation $100 loan-loss provision in 1980 indicates some deteri­ (FDIC) and that have total assets of less than million at year-end and exclude new banks (defined as banks formed during each year). oration in asset quality that could have an ad­ Average assets are fully consolidated and net of loan-loss reserves; verse impact on earnings in the near term. averages are based on amounts outstanding at the beginning and end of each year. Ratios are calculated as the ratio of aggregate data. Other factors adversely affecting earnings in­ 2 . Includes all tax liabilities or credits estimated to be due on clude higher noninterest expenses and tax provi­ income before tax. 3 . Includes securities and extraordinary gains or losses (-) after sions. Noninterest expenses increased from 2.85 taxes. 4 percent to 3.11 percent of assets between 1977 . The taxable equivalent adjustment is approximated by increasing income from state and local obligations by ( 1/(1 - t)) - 1 times the and 1980. Contributing to this rise were higher 1977 1978t interest earned on state and local obligations. For and , is 048 1979 1980 046 salaries and employee benefits, which were 51.8 assumed to be . ; and for and , it is assumed to be . . 4 5 Note. The data in this table, as well as in tables and , are similar percent of 1980 noninterest expense and grew to information for all banks in Barbara Negri Opper, “Profitability of 1979 more rapidly than assets from 1977 to 1980.3 Insured Commercial Banks, ,” Federal Reserve Bulletin, vol. 66 (September 1980 ), pp. 691 - 706 . Industry data for 1980 will Over the same period, the increase in taxable appear in a forthcoming Bulletin. income was largely responsible for an increase of The net interest income data (table 1) reflect 14 basis points in tax expense to 0.36 percent of the net effect of increasing interest revenue and assets. In combination, the rise in these two expenses. Because the increase in interest expense categories reduced the 61-basis-point earned has outpaced the increase in interest improvement in the other components of return expense, net interest income as a percent of on assets by two-thirds. assets (net interest margin) has steadily im­ The steady growth in return on assets to 1.19 proved. From 1977 through 1980, the net interest percent in 1980 has permitted small banks to margin increased from 3.74 to 4.32 percent. reduce leverage while improving return on equi­ Although small banks have benefited recently ty. The interrelation among these three ratios is from improved net interest margins, differences presented as an equation in table 2. Over the in the growth rates of gross interest earned and four-year period, leverage, measured as average gross interest expenses provide a warning for the total assets to average shareholders’ equity, de­ future. In particular, during the four-year period clined from 12.67 to 12.01. Although each dollar from 1977 through 1980, gross interest earned of equity supported fewer assets, the greater grew at a compound rate of 10.6 percent, where­ return on assets more than offset the effect of as gross interest expense grew on a much smaller reduced leverage. Therefore, return on equity base at a substantially faster rate of 16.1 percent. increased from 12.43 percent in 1977 to 14.27 For the near term, the smaller growth in interest percent in 1980. earned on a much larger dollar base is likely to 3. Employee compensation grew at an 8.5 percent com­ continue to absorb the more rapid increase in pound rate from 1977 to 1980, whereas average assets grew at interest expense on a smaller dollar base. a 5.0 percent compound rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 Federal Reserve Bulletin □ June 1981 2. Earnings, leverage, and profitability ratios, 1. Return on assets, insured small commercial banks, insured small commercial banks, 1977-801 1977 and 1980 Thousands of banks 1977 1978 1979 1980 Ratio Return on assets (percent)............ .98 1.04 1.15 1.19 times 12.67 12.64 12.37 12.01 Assets to equity (leverage)............ equals 12.43 13.13 14.25 14.27 Return on equity (percent)............ 1 1 1 . See note to table . Equity and assets are average. Return is bottom-line net income. Rounding error causes slight variations. In considering the sound earnings performance of small banks in the aggregate, the extremely good performance of a group of small banks Percent could be masking an increase in the number of problem situations. In order to address this type Small banks include all FDIC-insured commercial banks located in $100 of concern, frequency distributions for return on the United States with total assets of less than million at year-end and exclude new banks. Return on assets is net income to average average assets were calculated. The histograms total assets. Figure above bar is the percent of total number of banks. of these distributions for 1977 and 1980 show a discernible improvement in the overall distribu­ tions (chart 1). The proportion of small banks increases in loan provision ratios in 1980 are an with a return on assets of less than 0.6 percent indication that asset quality may be deteriorat­ decreased from 16.4 percent in 1977 to 10.5 ing. Another indication is a jump in net loan percent in 1980.4 At the upper end of the scale, charge-offs as a percent of average loans to 0.40 those reporting returns greater than 1 percent percent in 1980 from the prior three-year average increased from 51.0 percent in 1977 to 68.9 of 0.32 percent. percent in 1980. 3. Loan-quality ratios, insured small commercial banks, 1977-801 Asset Quality 1977 1978 1979 1980 Ratio Asset quality is an important but illusive aspect Net loan losses as a percent of of financial performance. Eventually, deteriorat­ average loans................................... .33 .32 .32 .40 Loan-loss provision as a percent of ing asset quality surfaces as increased loan-loss average loans................................... .41 .44 .43 .48 Loan-loss reserves as a percent of provisions and net loan losses. As already noted, loans (year-end )2 ............................ .91 .90 .93 .97 the loan-loss provision as a percent of assets 1 1 1 . See note to table . Loans exclude unearned income and moved upward in 1980 from a fairly steady level include loan valuation reserves. 2 for the previous three years. It also increased as . Loan-loss reserves include only the loan valuation portion. a percent of average loans (table 3). The loanloss provision rose more as a percent of loans Several reasons for deteriorating asset quality than as a percent of assets because of a reduction are possible. One is the sharp economic down­ in the ratio of loans to assets (table 4). These turn in the second quarter of 1980 and continuing sluggishness in several key economic sectors. Another is high average interest rates: these high 4. The proportion of small banks with losses over the four- rates contribute to lending problems because year period was 4.31 percent (560) in 1977, 3.43 percent (429) some borrowers lack the ability either to pass in 1978, 2.73 percent (344) in 1979, and 2.97 percent (372) in along or to absorb increased funding costs. A 1980. Small banks exclude new banks, which among other atypical characteristics usually operate at a loss initially. third is more lenient bankruptcy laws, which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Performance of Small Banks, 1977-80 483 4. Portfolio composition as a percent of total it instruments. Second, the success of near-bank assets, insured small commercial banks, competition, such as money market funds, in 1977-801 availing bank customers with the opportunity to earn higher yields has forced the banking indus­ 1977 1978 1979 1980 Portfolio composition try also to provide deposit alternatives more Interest-earning assets 2 .............................. 87.7 88.8 88.7 89.4 closely aligned with market rates. One indication Total loans (excluding unearned income).......................... 54.4 56.9 56.2 52.8 that many bank customers are highly rate con­ Real estate............................................... 18.2 19.6 19.6 18.5 Agricultural 3 .......................................... 8.1 8.3 8.4 7.9 scious is the dramatic increase in the volume of 11.9 12.2 12.1 12.1 Commercial and industrial.............. 16.8 17.4 16.9 14.7 money market certificates since their inception Consumer............................................... Other ........................................................ 1.4 1.4 1.4 1.4 in 1977. Unearned income on above items................................... 1.9 2.0 2.0 1.8 Among small banks, asset composition has 29.1 27.9 26.8 29.4 changed much less than liability composition. Securities..................................................... 10.7 9.5 8.8 10.0 U.S. Treasury........................................ 5.3 5.4 5.6 6.9 From year-end 1977 through 1980, the proportion U.S. government agencies.............. State and political of total loans to assets decreased from 54.4 subdivisions................................... 12.4 12.4 11.9 11.9 Other bonds and stock..................... .7 .6 .5 .5 percent to 52.8 percent. Change in the composi­ tion of loans was primarily limited to a decrease Gross federal funds sold and 4.2 3.4 4.9 5.7 reverse RPs........................................ in consumer lending. Over the same period, the Interest-bearing deposits..................... 0 .8 .9 1.7 proportion of total securities to assets decreased and then rebounded to slightly above the 1977 1 . Small banks include all FDIC-insured commercial banks located $100 level as a result of increases in the proportions of in the United States with total assets of less than million at yearend and exclude new banks. U.S. Treasury and government agency securi­ 2 . Percentages are based on the end-of-year aggregate data. 3 ties. . Includes real estate loans secured by farmland. Also, indications are that small banks are may be reducing the incentive of some borrowers shifting to greater use of short-term, rate-sensi- “to stick it out.” tive assets. In particular, holdings of short-term In spite of the increase in net charge-offs in placements (federal funds sold, reverse repur­ 1980, the loan-loss provision exceeded the actual chase agreements, and interest-bearing deposits) net charge-offs. As a result, the loan-loss re­ have increased from 4.2 percent of assets at yearserves as a percent of loans reached a four-year end 1977 to 7.4 percent at year-end 1980. high of 0.97 percent (table 3). Although only sketchy data are available with regard to the asset maturity composition of small Balance-Sheet Trends 5. Liability composition as a percent of total assets, insured small commercial banks, 1977-801 Liability composition changed substantially from 1977 1978 1979 1980 Liability composition 1977 through 1980, particularly shifts to more expensive funding sources, as table 5 shows. Financial claims................... 9 3 1 1 . . 2 2 9 3 1 0 . . 1 1 9 2 0 8. . 8 8 9 26 0 . . 1 3 Demand deposits............ 60.0 61.0 62.0 64.3 Demand deposits have declined at an accelerat­ Interest-bearing claims . Savings deposits......... 25.0 23.6 19.8 17.5 ing rate from 31.2 percent of assets at year-end NOWs and ATSs 2 . 0 .3 .6 1.2 33.9 35.6 40.4 45.0 1977 to 26.1 percent at year-end 1980. Over the Tim La e r g d e e p ti o m si e t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.9 8.8 9.4 9.8 2 0 2.6 12.9 20.4 same period, regular savings deposits declined MMCs ....................... Subordinated notes from 25.0 percent to 17.5 percent. In contrast, and debentures.. .2 .2 .2 .2 Gross federal funds comparatively costly money market certificates purchased and increased from zero at year-end 1977 to 12.9 RPs 2 .......................... . .1 8 1. .5 0 1 . . 5 0 1. . 1 5 Other borrowings........ percent in 1979, and then jumped to 20.4 percent Memo at year-end 1980. Year-end total assets 309.7 325.0 337.9 354.4 (billions of dollars)... In considering why these changes in liability Number of institutions ... 13,006 12,841 12,612 12,527 composition are now taking place, two reasons 1 1 2 4 . See notes and to table . stand out. First, high interest rates have created 2 . NOWs are negotiable orders of withdrawal; ATSs are savings a general awareness that much higher yields are deposits authorized for automatic transfer; MMCs are money market 10,000 100,000 time deposits in denominations of $ but less than $ with available than those offered on traditional depos­ original maturities of 26 weeks; and RPs are repurchase agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 Federal Reserve Bulletin □ June 1981 banks, the sharp increase in asset yields in the 7. Internal equity growth factors, insured small last several years suggests that small banks have commercial banks, 1977-80' been able to benefit from rising rates as a result Ratio 1977 1978 1979 1980 of a moderately short-term maturity or variablerate asset structure. Unlike the thrift institutions, Return on average equity (percent )2 ............................ 12.43 13.13 14.25 14.27 aggregate holdings of real estate loans, most of which are fixed rate and long term, accounted for times less than one-fifth of the assets at small commer­ cial banks at year-end 1980. Earnings retention 3 ................ .7379 .7422 .7484 .7349 equals Capital Trends Inter ( n p a e l r c eq en u t i ) ty ... . g ... r .. o .. w .... t . h .............. 9.17 9.74 10.66 10.49 1 1 4 Capital ratios for small banks have increased . See note to table . 2 . Return is bottom-line net income. steadily over the four-year period. Measured in 3 . Earnings retention is calculated as net income minus dividends terms of the traditional equity as a percent of declared divided by net income. total assets, the average capital ratio for the group rose 57 basis points to 8.39 percent (table An improvement in the frequency distribution 6). Furthermore, the risk-asset ratio proxy of of capital ratios is in keeping with the broadequity plus reserves as a percent of loans has based improvement in earnings apparent in the also increased. In comparison, the increase in histograms for return on assets. The capital ratio capital ratios was less for banks in asset size histograms for 1977 and 1980 in chart 2 indicate classes up to $1 billion. For banks with assets of improvement at both ends of the distribution. more than $1 billion, equity as a percent of assets From 1977 to 1980, small banks with capital declined 27 basis points to 4.55 percent. ratios of less than 7 percent decreased from 28.9 6. Capital ratio trends, insured small commercial banks, year-end, 1977-80' 2. Capital ratios, insured small commercial banks, 1977 1978 1979 1980 year-end, 1977 and 1980 Ratio Thousands of banks Equity as a percent of 7.82 7.95 8.16 8.39 total assets (year-end)....................... 3 Equity plus valuation reserves as a percent of loans (year-end).. 15.30 14.90 15.46 16.91 HP* 1 1 2 4 2 . See notes and to table . 2 . Loans exclude unearned income and include loan valuation reserves. 1 The higher capital ratios at small banks are 0 primarily a result of the growth of equity generat­ ed from retained earnings exceeding the growth 3 in assets. Over the four-year period, the average annual internal equity growth of 10.02 percent 2 outpaced the average annual asset growth of 5.41 percent. 1 The interrelation between internal equity growth and its components is presented as an 0 equation in table 7. From 1977 to 1980, the internal equity growth rate increased 132 basis points, to 10.49 percent, because of increasing Small banks include all FDIC-insured commercial banks located in $100 return on equity (profitability) and a consistently the United States with total assets of less than million at year-end and exclude new banks. Capital ratio is equity capital to total assets. high earnings retention rate. Figure above bar is the percent of total number of banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Performance of Small Banks, 1977-80 485 percent to 17.1 percent. At the other end, banks To the contrary, the challenge is to answer the with capital ratios greater than 10 percent in­ question, “Why have small banks done so creased from 17.1 percent to 22.5 percent. well?” The stronger capital ratios at small banks have In answering this question, the most important several significant implications. In combination consideration appears to be that earnings have with good earnings and increased loan reserves, improved because the average cost of funds has the higher capital ratios provide a substantial not increased as much as yields on average cushion to adjust to various forms of adversity. assets. In addition, small banks have benefited Moreover, those banks that have substantially from moderate loan-loss provisions. augmented capital accounts are better able to To conclude that small banks have fared well serve local businesses because of the resulting is not to downplay the major challenges that they increase in their lending limits and because of still face. These challenges include the possibility their greater financial stability. of continuing high and volatile interest rates; deposit deregulation (including the phaseout of Regulation Q and the introduction of nationwide Summary of Findings negotiable order of withdrawal accounts); in­ creasing competition from other banks and thrift The great majority of small commercial banks and nondepository institutions; and the possibili­ fared quite well from 1977 through 1980. In ty of some deterioration in asset quality. In considering that this period was characterized by combination, these factors will provide a con­ many changes and some adversities, this finding tinuing test of each small bank’s ability to main­ should by no means be regarded as self-evident. tain satisfactory profit margins. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period Febru­ The U.S. authorities continued to intervene in ary through April 1981, is the seventeenth of a the exchange markets, buying foreign currencies series providing information on Treasury and on days in which the dollar was rising sharply System foreign exchange operations to supple­ and, on occasion, placing simultaneous bids and ment the regular series of semiannual reports offers to settle a volatile market. In all, the that are usually issued each March and Septem­ Trading Desk at the Federal Reserve Bank of ber. It was prepared by Scott E. Pardee, Manag­ New York operated in the market as a net buyer er of Foreign Operations of the System Open of marks on nine of the fourteen trading days Market Account and Senior Vice President in the between February 2 and 23. The total marks thus Foreign Function of the Federal Reserve Bank of acquired amounted to $610.0 million equivalent, New York. which was split evenly between the Federal Reserve and the Treasury. An additional $168.4 Coming into the three-month period under re­ million equivalent of marks was bought from view, the U.S. dollar was in strong demand correspondents. The proceeds of these market against most major currencies. The dollar was and correspondent purchases were added to Sys­ bolstered by the relatively favorable U.S. cur- tem and Treasury balances. rent-account position, which has remained in After mid-February, the demand for dollars surplus in contrast to the deficits of many other lost steam. By that time, interest rates in the industrial countries, and by the wide interest United States were easing somewhat, as the differentials in favor of dollar placements. The growth rates for the narrow monetary aggregates bidding for dollars also reflected bullish senti­ were coming in below the Federal Reserve’s ment on the part of market participants that target range. Moreover, the authorities of other responded positively to the determination shown countries were acting to raise interest rates or to by the Reagan administration to deal with infla­ tighten liquidity conditions in their markets. In tion and to revitalize the U.S. economy. particular, on February 19, the German Federal At the same time, as traders focused on politi­ Bank took action to defend the mark, suspending cal and economic problems facing Western Euro­ the usual Lombard facility to commercial banks pean countries, sentiment toward other curren­ and announcing that Lombard credits would be cies became increasingly bearish. The German made available at its discretion and at rates that mark was under particularly heavy selling pres­ could vary on a day-to-day basis. Interest rates sures both against the dollar and against the in Germany immediately shot up. As traders other European currencies linked formally or scrambled to cover short positions, the mark informally to the mark. By early February, the rebounded against the dollar and rose from the markets for dollars had become increasingly one way, with the dollar rising virtually every day. 1. Federal Reserve System activity under Through mid-February, the dollar advanced a reciprocal currency arrangements, January 31further 4 percent against the German mark and April 30, 19811 the other continental European currencies, for a Millions of dollars equivalent; drawings, or repayments (-) total rise on the order of 20 percent since the Commit­ August Commit­ previous September. In addition, the dollar rose Transactions with ments, through ments, 31 1981 30 1981 30 1981 Jan. , Apr. , Apr. , 3 percent against sterling, Vi percent against the 200.0 200.0 0 Japanese yen, and 3A percent against the Canadi­ Bank of Sweden... an dollar over the first half of February. 1. Data are on a value-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

487 bottom to the top of the European Monetary 2. Net profits and losses (-) on U.S. Treasury and System (EMS) band. Federal Reserve current foreign exchange Over late February and early March, dollar operations1 rates fell back with wide day-to-day movements. Millions of dollars On balance, from late February through mid- U.S. Treasury March, the dollar dropped off some 8 percent Federal Period Exchange against the German mark and other EMS curren­ Reserve Stabilization General Account Fund cies while holding fairly steady against the pound sterling and the Japanese yen and declining less February 1 through April 30 , 1981 .... - 1.4 - 3.8 0 than 2 percent against the Canadian dollar. Valuation profits and From late February to late March, the U.S. losses on outstand­ ing assets and lia­ authorities did not intervene in the exchange bilities as of 30 1981 271.1 1106.9 958.5 April , .... - - , market. On March 30, when the dollar fell sharp­ 1 ly after the assassination attempt on President . Data are on a value-date basis. Reagan, the Trading Desk stepped in to settle the market, selling $74.4 million equivalent of marks removing a constraint on the dollar’s rise. On out of balances, split evenly between the Federal May 4, in testimony before the Joint Economic Reserve and the Treasury. Dollar rates quickly Committee of the Congress, Treasury Under rebounded the following day. Secretary Sprinkel set forth the rationale for this In April, the dollar again came into heavy more limited intervention approach. demand. Favorable sentiment toward the Reagan With the dollar again in demand, dollar rates administration remained a generally positive psy­ were bid up sharply, frequently in one-way mar­ chological factor. Market participants expressed kets through the end of April. From the midsome concern that the administration’s tax cut March lows, the dollar rose by a net 8 to 9 proposals might swell rather than reduce the percent against the German mark and other budget deficit, but this concern reinforced expec­ currencies linked directly or indirectly to the tations that U.S. interest rates would remain high mark, 7 percent against the pound sterling, 5 and that the dollar would stay strong. By early percent against the Japanese yen, and V/i per­ April, indicators were showing that the U.S. cent against the Canadian dollar. economy was stronger than expected. The ex­ The U.S. authorities did not intervene in the pansion in the underlying economy also began to markets in April, although the Desk continued to show through more clearly in the demand for operate in the market as agent for other central money and credit, and even the narrow measures banks. By the month-end, several foreign central of the monetary aggregates began to grow rapid­ banks were intervening fairly heavily in support ly. With the Federal Reserve restraining the of their currencies either against the dollar or, growth of reserves, the strong demand for money within the EMS, against the German mark, prompted a renewed rise in U.S. interest rates. which remained firm among European curren­ Although some central banks abroad continued cies. In April, after a heavy reflux of funds into to raise their own interest rates, or to take other the Swedish krona, the Bank of Sweden repaid, measures to keep a tight rein on liquidity, foreign before maturity, the $200 million drawn in Janu­ interest rates did not rise as sharply as rates in ary under the swap arrangement with the Federal the United States so that large interest differen­ Reserve. In operations during the three-month tials in favor of dollar placements widened. period, the Federal Reserve had losses of $1.4 In mid-April the Treasury announced that, million on its exchange market operations, while after study and consultation with officials of the the Exchange Stabilization Fund (ESF) lost $3.8 Federal Reserve, the U.S. authorities had adopt­ million. As of April 30, valuation losses on ed a minimal intervention approach and would outstanding balances were $271.1 million for the now intervene only when necessary to counter System and $1,106.9 million for the ESF. The conditions of disorder in the exchange market. In Treasury’s general account had valuation gains this prevailing market atmosphere, many partici­ of $958.5 million, reflecting its foreign currency pants interpreted this change in approach as borrowings. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 Industrial Production Released for publication June 16 0.4 percent, largely due to increases in parts for autos and for equipment; a further rise in produc­ Industrial production increased an estimated 0.3 tion of nondurable goods materials reflected percent in May, after a downward revised 0.1 gains in the output of chemicals. Production of percent rise in April. The May increase was energy materials was reduced 0.6 percent further concentrated in production of motor vehicles and in May. parts, but gains also occurred in equipment and in some materials. At 152.8 percent of the 1967 Seasonally adjusted, ratio scale, 1967= 100 average, industrial production in May was 6.1 percent above the depressed level of a year earlier and slightly below the latest index high reached in March 1979. In market groupings, output of consumer goods advanced Vi percent in May, mainly due to a rise of 7.5 percent in production of autos and utility vehicles. Autos were assembled at an annual rate of 7.3 million units, up from a rate of 6.8 million units in April. Production of home goods advanced slightly in May, after a small decline in April, as output of some home furnish­ ings increased further while that of appliances declined further. Nondurable consumer goods output was about unchanged. Production of busi­ ness and defense equipment continued to expand in May. Output of construction supplies declined 0.7 percent, after a similar drop in the preceding month. Output of materials increased 0.3 percent in Federal Reserve indexes, seasonally adjusted. Latest fig­ May. Production of durable goods materials rose ures: May. Auto sales and stocks include imports. 1967 100 = Percentage change from preceding month Percentage Grouping 1981 1981 M ch ay an 1 g 9 e 8 , 0 to Apr.p Maye Jan. Feb. Mar. Apr. May May 1981 Total industrial production ... 152.3 152.8 .5 -.1 .5 .1 .3 6.1 Products, total............................ 151.6 152.1 .3 -.3 .7 .5 .3 5.8 Final products.......................... 150.4 151.1 .0 -.3 .9 .7 .5 5.6 Consumer goods................ 149.3 150.0 -.3 -.2 .9 .7 .5 5.3 Durable................................ 144.0 146.9 - 1.8 .1 3.2 .5 2.0 14.1 Nondurable....................... 151.3 151.2 .2 -.3 .1 .7 -.1 2.4 Business equipment......... 182.2 183.3 .6 -.3 1.2 .9 .6 6.6 Defense and space.............. 101.0 101.4 .3 -.8 .6 .2 .4 4.3 Intermediate products......... 156.0 155.6 1.0 -.5 -.3 -.3 -.3 6.4 Construction supplies___ 146.4 145.4 1.9 -.1 .2 -.8 -.7 9.3 Materials....................................... 153.4 153.8 .8 .3 .1 -.6 .3 6.6 p Preliminary. e Estimated. Note. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production 489 Major market groupings 1967 100 = Percentage change from preceding month Percentage Grouping 1981 1981 M ch ay a n 1 g 9 e 8 , 0 to Apr.P Maye Jan. Feb. Mar. Apr. May May 1981 Manufacturing..................... 152.3 152.9 .3 -.1 .5 .4 .4 6.6 142.7 143.5 .6 -.5 1.1 .4 .6 7.7 Durable.............................. Nondurable..................... 166.1 166.6 .1 .5 -.4 .4 .3 5.4 Mining..................................... 136.2 135.7 1.3 1.6 .3 - 5.3 -.4 1.7 Utilities................................... 170.8 171.3 .4 - 1.5 .5 .9 .3 2.1 p Preliminary. e Estimated. Note. Indexes are seasonally adjusted. In industry groupings, manufacturing output of nondurables rose slightly further, with ad­ increased 0.4 percent, after similar rises in April vances widespread except for foods and petro­ and March. Production of durable goods indus­ leum products. Mining output was reduced tries advanced 0.6 percent, reflecting gains in slightly further as the coal strike continued, and machinery and motor vehicles and parts. Output output of utilities increased 0.3 percent in May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 Statement to Congress Statement by J. Charles Partee, Member, Board uniform policy for coordinating the examination of Governors of the Federal Reserve System, of holding companies and their major bank sub­ before the Subcommittee on General Oversight sidiaries when the organization either is very and Renegotiation of the Committee on Banking, large or is experiencing financial difficulties or Finance and Urban Affairs, U.S. House of Rep­ deterioration. resentatives, June 4, 1981. Currently, the Examination Council has an interagency task force studying additional ways I am pleased to appear before this subcommittee to bring greater uniformity to the examination to discuss the examination process for banks and process. Of course, achieving complete unifor­ recent efforts to make examinations more cost mity in examination procedures and techniques effective and more uniform among the federal is not practical or desirable. For example, the supervisory agencies. Concerns about the effi­ supervisory agencies obviously would not want ciency and effectiveness of the examination to employ the same methods in examining large process are quite understandable, given the com­ multinational commercial banks as they would plex governmental structure that our nation has use in examining credit unions. Also, we must devised for the supervision and regulation of expect differences in bank examination proce­ depository institutions. Five federal agencies are dures between the Comptroller of the Currency now directly responsible for the supervision and on one hand and the Federal Reserve and the regulation of commercial banks and thrift institu­ Federal Deposit Insurance Corporation on the tions, and under the “dual banking system” other, because the latter two agencies supervise concept, all 50 states also have direct oversight state banks and must coordinate and communi­ responsibilities. It is important to note, however, cate with state bank supervisors that are the that over a long period of time, interagency chartering authority. Our objectives are already arrangements have been directed to achieving much the same, however, and allowing for prac­ uniformity when appropriate and to avoid dupli­ tical differences such as these, we will continue cation and overlap whenever possible. These to strive for greater procedural uniformity interagency efforts are an ongoing process be­ through the work of the Examination Council. cause new accommodations are required as our In recent months the General Accounting Of­ financial system evolves. fice has issued two reports to the Congress In 1978, the Congress, with the Board’s en­ relating to the examination of depository institu­ dorsement, reviewed the need for a more formal tions. The first made a number of recommenda­ coordination structure and created the Examina­ tions relating to current agency examination pro­ tion Council to promote greater uniformity in cedures and techniques. Some of these recom­ examination procedures and supervisory policy mendations have already been implemented by among the five federal supervisory agencies. So the Federal Reserve and the other agencies, far the Examination Council has made good while others are presently being considered by progress in carrying out this congressional man­ the Examination Council. The second report in­ date. Among its achievements have been the volved a GAO proposal for interchanging exam­ development of a uniform system for rating the iners among the three federal banking agencies. financial condition of banks and thrift institutions As part of its first report, the GAO recom­ and the creation of a uniform bank performance mended that the Examination Council develop report that will be used in monitoring the situa­ uniform procedures for evaluating state banking tion of individual institutions by the three bank­ agencies and then have the federal banking agen­ ing agencies. The council also has developed a cies accept the examination reports of those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 491 states that received acceptable ratings. The ratio­ of examinations on commercial banks and econ­ nale for this proposal was to economize on omize on the use of examiner resources, which examiner resources by terminating both federal will permit both the Federal Reserve and the and state examinations of state-chartered banks. states to target more of their examination efforts While the Board endorses the objective of the at those banks most in need of supervisory GAO proposal, it cannot support the specific attention. An alternate-year program has al­ recommendation. First, we do not believe that ready been arranged with the State of Georgia, the federal agencies could adequately carry out and we are now in the process of establishing their supervisory responsibilities for state banks programs with a number of other state banking if they completely withdrew from the examina­ departments. tion process because this is a key element in In recent years, the Federal Reserve has im­ effective supervision. In addition, we believe plemented a number of initiatives to save re­ that any ongoing evaluation of state banking sources in its own examination program. For agencies by a federal agency would inevitably example, the Federal Reserve is employing limitprove to be awkward and could damage existing ed-scope examinations in certain cases for which federal-state agency relationships if a number of it is not deemed necessary to collect the detailed state agencies were judged to have inadequate information resulting in a full-scale examination. examination capabilities. Also, Federal Reserve examiners are relying While the Board cannot endorse this GAO more on information supplied by the banks when recommendation, we are anxious to continue and the information is verified through testing and expand our current close working relationships statistical sampling techniques. with state banking authorities. At present the In order to improve the allocation of examiner Federal Reserve has joint examination arrange­ resources, the System has recently reviewed its ments with 16 states and concurrent examination examination frequency policy and has adopted a arrangements with 15 states. Joint examinations more flexible approach that extends the time entail a sharing of the workload between federal between examinations for sound banks. In relat­ and state examiners and the preparation of a ing examination frequency to a bank’s financial single report. Concurrent examinations involve a condition, the Federal Reserve can target more similar sharing of workload and resources with resources to companies that warrant close super­ the preparation of separate federal and state visory attention. The Federal Reserve is also reports. As a result of these cooperative exam­ reviewing the possibility of limiting the time ination programs, more than half of all state spent by examiners at a bank to those tasks— member banks, including most of our largest such as asset evaluation, assesssment of manage­ ones, are now examined on a joint or concurrent ment and internal controls, and compliance with basis. In states where such cooperative programs law and reporting requirements—that can best be are not utilized, the Federal Reserve attempts to conducted on site. Such an approach would coordinate timing with the states in order to make maximum use of surveillance and financial space examinations more effectively. The Feder­ analysis techniques that can be employed on an al Reserve also receives and analyzes state ex­ ongoing basis off the bank’s premises. This ap­ amination reports, and the Board has permitted proach also would economize on examiner salary the Reserve Banks to substitute an examination and travel expenses and lessen the burden of on­ conducted by a state for one of the two annual site examination for the banks. examinations that we require of problem banks. In addition to these Federal Reserve efforts, a In addition to these efforts, the Federal Re­ number of ongoing interagency programs have serve is expanding federal-state cooperation proved to be successful in saving resources as through the initiation of an alternate-year exami­ well as increasing uniformity. Both the shared nation program with state banking authorities. national credit program and the uniform country Under this program, relatively trouble-free exposure examination procedures, in place for banks selected by the Reserve Banks and the several years, have produced considerable sav­ states will be examined by the agencies in alter­ ings and increased interagency consistency in nate years. This program will lessen the burden examination findings and conclusions. While Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 Federal Reserve Bulletin □ June 1981 these programs were originally established at the examination function from overall supervision. federal level, they have been expanded to in­ This is so because examiners are instrumental in clude some state banking authorities. many important supervisory activities, including In an apparent attempt to improve the struc­ identifying problems in a timely way, meeting ture of the federal examination forces, the GAO with management to discuss supervisory con­ has recommended the interchange of examiners cerns, and monitoring bank compliance with among the federal agencies as an interim step to a programs for corrective action and formal en­ possible eventual consolidation of the federal forcement actions. The accurate identification of examination forces, which the GAO appears to supervisory problems and the implementation of favor. It asserts that an interchange or “pooling” remedial actions are largely dependent on the of federal examiners would reduce travel costs clear lines of authority, communication, and by allowing banks to be examined by personnel control that currently exist between supervisory from the nearest agency office, even if that agencies and their field forces. The GAO propos­ agency is not the primary supervisor. The GAO al would obviously threaten this constructive suggests that reducing travel by examiners would relationship and in the process could weaken the also improve morale and lower personnel turn­ quality of federal supervision. over, thereby improving the quality of the exami­ The GAO’s interchange or pooling concept has nation staff. another shortcoming in that it would muddy The Board strongly opposes this GAO recom­ existing relationships between banking institu­ mendation. As the GAO report points out, the tions and those agencies responsible for super­ proposal would entail a number of statutory, vising them. In disrupting these supervisory rela­ administrative, and procedural problems. Also, tionships, the proposal also could impair ongoing the proposal gives little weight to the fact that the programs for corrective action that had been federal agencies necessarily use somewhat dif­ implemented and were being monitored by the ferent examination techniques and are responsi­ primary authority. ble for enforcing somewhat different banking Finally, the Board believes that the GAO laws. Given these differences, the use of examin­ proposal would fail to achieve what is claimed to ers interchangeably would require costly and be an important benefit—the reduction of exam­ time-consuming retraining efforts and would tie iner turnover. Separating examiners from the up resources that could be better spent in the supervisory process and committing them in­ supervisory process. In sum, the Board dis­ stead to a large, impersonal professional pool agrees that the potential savings from the GAO having no clear identification with a primary proposal would outweigh the additional training regulator surely would erode examiner morale costs and substantial coordination problems that and increase the dissatisfaction of people pos­ would be created by a large-scale examiner inter­ sessing highly marketable skills. change. While the Board opposes the examiner inter­ The GAO’s proposal also would raise prob­ change proposal, we do believe that examination lems regarding examiner accountability and con­ resources might be saved in some cases by trol. If an examiner from one agency were to geographically relocating examiners of a given spend substantial time examining banks under agency. Indeed, the Federal Reserve has now the primary supervision of other agencies, it established five examination field offices, two would no longer be clear to which agency the within the last two years. These five field offices, examiner would in fact be accountable or how together with the twelve Reserve Banks, give the that examiner’s performance could be fully eval­ Federal Reserve seventeen examination facilities uated. throughout the country. Other geographic loca­ The GAO’s proposal implicitly assumes that tions for additional field offices are under prelim­ the examination function and the supervisory inary review. function are separate. As a practical matter, it In concluding, I want to reaffirm the Federal seems to me extremely difficult to separate the Reserve’s commitment to performing examina­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 493 tions in the most efficient manner possible con­ sweeping changes in examiner organization or sistent with meeting our supervisory responsibil­ accountability. Such changes would be totally ities. We are also committed to working toward unwarranted in the current difficult economic greater interagency uniformity in examination environment when a close and continuing over­ procedures and supervisory policy through the sight of the nation’s depository institutions is of Examination Council. But we do not support any vital importance. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 Announcements Policy Statement on Sale of Third- 1933 (15 U.S.C. 77c(a)(3)). The bank should take Party Commercial Paper by State appropriate precaution to assure itself that the section 3(a)(3) exemption applies to the commercial paper it Member Banks proposes to sell. In this regard, (a) the bank should determine that the commercial paper it proposes to sell The Federal Reserve Board has adopted a policy is of prime quality; (b) the bank may rely on represen­ statement providing guidelines to govern the sale tations of the issuer with respect to the use of pro­ by state member banks of commercial paper ceeds; (c) except as further limited by paragraphs 7 issued by firms not related to the bank. and 8, the bank should sell commercial paper only to financially sophisticated customers, such as customers The Board’s guidelines concerning the sale of that regularly purchase a variety of short-term credit such third-party commercial paper (promissory instruments, and should not advertise commercial notes of corporations) are intended to assure safe paper for sale to the general public; (d) the bank should and sound banking practices. The Board will obtain periodically, and maintain in the bank’s rec­ monitor activity in this area closely and will ords, a current legal opinion of counsel that the section 3(a)(3) exemption is available. In addition, the bank modify or supplement its guidelines as neces­ should sell commercial paper in minimum denomina­ sary. tions that are consistent with applicable law and, in no The policy statement was effective May 28, event, should sell commercial paper in minimum de­ 1981, but the Board will accept comment, for nominations of less than $100,000. review by the Board, through July 31, 1981. 2. The selling bank should maintain a complete credit analysis of the issuer at all times and should The policy statement follows. exercise due diligence in investigating the financial affairs of the issuer. Particular attention should be The Board of Governors has recently determined given to the liquidity position of the issuer and its lines that the sale of commercial paper by a state member of credit. All commercial paper sold by the bank bank for unaffiliated issuers (third-party commercial should be fully supported by available lines of credit. paper1) did not violate the Glass-Steagall Act (12 Any participation by the selling bank in such lines of U.S.C. 24 Seventh, and 378). The Board was con­ credit should be made only after consideration of the cerned, however, that the sale of third-party commer­ bank’s legal lending limit. cial paper2 might, in some circumstances, involve 3. Senior management should adopt internal limits unsafe or unsound practices. Accordingly, in the inter­ for the amount(s) of commercial paper that may be est of safe and sound banking, the Board believes that sold by the bank for a single or related issuer(s). In any state member bank that may decide to engage in determining the internal limits, senior management the sale of third-party commercial paper should adhere should consider the financial condition of the issuer, to the following guidelines:3 all lines of credit available to the issuer, and the bank’s 1. A state member bank should sell only prime- participation in the lines of credit and any other quality commercial paper that qualifies for the exemp­ extensions of credit or commitments to the issuer by tion provided by section 3(a)(3) of the Securities Act of the bank (including commercial paper purchased by the bank for its own account). 4. Chronological records of original entry should be 1 . Excluding commercial paper issued by a parent bank maintained that contain an itemized daily record of all holding company; the Board has previously advised bank holding companies concerning sales of bank holding company sales and purchases of commercial paper. The records commercial paper (letter dated June 27 , 1980 ). should also contain the following: a designation of the 2 . Banks have traditionally purchased commercial paper commercial paper; nature of the transaction, for exam­ upon the order, and for the account of, customers, whereas ple purchase or sale; trade and settlement dates; here the bank is essentially acting for the issuer; the former contra-party name or designation; and net proceeds, activity is not subject to the guidelines set forth in this policy statement. discount rate, or yield to maturity. 3 . The Board does not expect to take enforcement action to 5. Account records should be maintained for each restrain unsafe or unsound banking practices with respect to issuer that reflect the following: all sales and pur­ third-party commercial-paper selling activities of any state chases of commercial paper placed by the bank for member bank that conducts such activities within these guidelines. that issuer; all lines of credit available to the issuer; the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

495 amount of the bank’s participation in the lines of Home states of the 112 foreign banking organi­ credit; and a current balance of all extensions of credit zations operating in the United States are as and a description of other commitments to the issuer. follows: New York, 79; California, 27; Florida, 6. Account records should be maintained for each 2; Illinois, 2; Massachusetts, 1; and the District purchaser that reflect all sales and purchases of com­ of Columbia, 1. mercial paper for the account of that customer. 7. Commercial paper should not be sold to fiduciary accounts over which the bank has investment discre­ tion. Regulation L: R uling 8. Commercial paper should not be sold to the bank’s parent holding company (unless it is a bank) or The Federal Reserve Board announced on May 21, to any nonbank affiliate of the bank. 1981, that it had amended its rules of delegation 9. The bank should furnish to all purchasers of of authority to permit the Board’s General Coun­ commercial paper written advice in connection with all purchases that (a) the commercial paper is not an sel to expedite certain exceptions to the rules obligation of the bank, and is not insured by the against interlocking managements of depository Federal Deposit Insurance Corporation; (b) the bank institutions. has no obligation to repurchase any of the paper sold; Such exceptions are provided for under the (c) the bank is under no obligation to lend funds to the Depository Institution Management Interlocks issuer (except pursuant to existing credit lines, or other commitments, if any); and (d) copies of the Act when one of the institutions—usually a small issuer’s most recently published financial statements nonmember institution—is in particular need of will be furnished upon request. management expertise. In such cases, the Board relies on the advice of the primary supervisor of the institution needing assistance to determine if an exception should be made to allow manage­ Proposed Action ment from a member bank or a bank holding The Federal Reserve Board has published for company to lend such assistance. comment a proposed official staff commentary The delegation of authority to the General following up and interpreting the Board’s simpli­ Counsel is meant to speed up the granting of fied Regulation Z (Truth in Lending), which exceptions when the Board is not the primary implements the Truth in Lending Simplification supervisor. The Board will consider other re­ and Reform Act. Comment should be received quests for exceptions. by July 10, 1981. N ominations to Consumer Advisory Council Selection of Home States by Foreign Banks The Federal Reserve Board has announced that it is seeking nominations of qualified individuals The Federal Reserve Board on June 5, 1981, for nine appointments to its Consumer Advisory released a list of foreign banks operating in the Council. United States and their home states. The list is Nominations should be submitted in writing to available on request to Publications Services, Dolores S. Smith, Assistant Director, Division of Board of Governors of the Federal Reserve Consumer and Community Affairs, Board of System, Washington, D.C. 20551. Governors of the Federal Reserve System, Under the International Banking Act of 1978 Washington, D.C. 20551, and must be received and the Board’s regulations, a foreign bank may no later than August 17, 1981. Nominations expand its deposit-taking operations in a single should include the name, address, and telephone state designated as its home state. Foreign banks number of the nominee, past and present posi­ with either a full-service branch or a subsidiary tions held, and special knowledge, interests, or bank in the United States were required either experience relating to consumer matters. to select a home state by March 31, 1981, or to The Consumer Advisory Council was estab­ have a home state designated for them by the lished by the Congress in 1976, at the suggestion Board. of the Board, to advise the Board on the exercise Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 Federal Reserve Bulletin □ June 1981 of its duties under the Consumer Credit Protec­ Changes in Board Staff tion Act and on other consumer-related matters. Generally, the Council meets four times a year The Federal Reserve Board has announced the for about a day and a half. following appointment. Michael Bradfield of Washington, D.C., as General Counsel, effective July 1. He succeeds Neal L. Petersen who resigned effective May 29, Regulation T: Amendment 1981. Mr. Bradfield, a partner in Cole Corette & Bradfield, Washington, D.C., was previously The Federal Reserve Board has deleted a section with the Treasury Department. A graduate of of its Regulation T (Credit by Brokers and Deal­ Union College, Mr. Bradfield received a law ers) that permits foreign currency to be treated as degree and a masters degree from Columbia a deposit in a securities margin account, effective University and also attended St. Andrews Uni­ July 13, 1981. versity in Scotland and the University of Com­ The Board acted after considering comment on parative Law in Luxembourg. a proposal issued in December, which it adopted The Board has also announced the resignation without change. of George B. Henry, Associate Director, Divi­ The Board’s attention had been drawn to the sion of International Finance, effective June 30, fact that the language of this section (220.6 1981. paragraph (j)) might be interpreted as allowing the speculative holding of foreign currency in a margin account. Deletion of the section is intend­ System Membership: ed to make it clear that this is not permissible, Admission of State Banks and that any transactions in foreign currency should be effected in accounts insulated from The following banks were admitted to member­ securities credit transactions. ship in the Federal Reserve System during the period April 11 through June 10, 1981: Colorado Annual Report: Publication Denver.................... Fidelity Bank of Denver Virginia The Sixty-Seventh Annual Report of the Board Augusta County..........First Virginia Bank of of Governors of the Federal Reserve System, Augusta covering operations for the calendar year 1980, is Colonial Beach..........Bank of Westmoreland available for distribution. Copies may be ob­ Goochland........................Bank of Goochland tained upon request to Publications Services, Powhatan............................Bank of Powhatan Board of Governors of the Federal Reserve Wyoming System, Washington, D.C. 20551. Baggs....................................Valley State Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

497 Record of Policy Actions of the Federal Open Market Committee Meeting Held on March 31, 1981 ary for the fourth consecutive month. 1. Domestic Policy Directive Nonfarm payroll employment The information reviewed at this changed little in February following meeting suggested that real gross a large increase in January, and the national product expanded substan­ unemployment rate, at 7.3 percent, tially in the first quarter of 1981, but was essentially unchanged. Employ­ there were signs of a slowing of the ment continued to expand in trade expansion in economic activity dur­ and service establishments but de­ ing the quarter. Average prices, as clined sharply in construction. In measured by the fixed-weight price manufacturing, employment growth index for gross domestic business slowed further and the average product, continued to rise rapidly. workweek fell 0.6 hour to 39.8 The dollar value of retail sales hours. advanced appreciably further over The Department of Commerce the first two months of the year, survey of business spending plans following a sizable gain over the taken in January and February sug­ second half of 1980. Increases in the gested that current-dollar expendi­ value of sales in the two-month peri­ tures for plant and equipment would od were fairly widespread and were rise about WA percent in 1981, fol­ especially strong in the automotive lowing an expansion of about 9lA group, at general merchandise percent in 1980. The survey results stores, and at gasoline service sta­ implied that constant-dollar outlays tions. Unit sales of new domestic would change little in 1981 from their automobiles surged in late February level in 1980. and remained strong through the Producer prices of finished goods first 20 days of March, largely be­ rose at an annual rate of about WA cause of price concessions. percent in January and February, The index of industrial production close to the average rate in the sec­ declined an estimated 0.5 percent in ond half of 1980. The rise in the February, after three months of di­ consumer price index slowed in Jan­ minishing gains. Capacity utilization uary to an annual rate of about S3A in manufacturing edged up in Janu­ percent but accelerated in February ary but declined 0.7 percentage point to a rate of IIV2 percent. Over the in February to 79.3 percent. two-month period food prices rose Private housing starts dropped in only slightly on balance, and the rise February to an annual rate of about in homeownership costs slowed sub­ 1.2 million units; during the preced­ stantially. But prices of energy items ing six months housing starts had surged, reflecting in large part the been in a range of 1.4 million to 1.6 effects of decontrol of oil prices. The million units. Newly issued permits rise in the index of average hourly for residential construction edged earnings of private nonfarm produc­ down in January and declined sharp­ tion workers was little changed from ly in February. Combined sales of the pace recorded during 1980. new and existing homes fell in Janu­ In foreign exchange markets the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 Federal Reserve Bulletin □ June 1981 trade-weighted value of the dollar growth of the narrowly defined m on­ against major foreign currencies rose etary aggregates (M -lA and M -1B), further following the Com m ittee’s after adjustment for the estim ated meeting in early February to a peak effects of shifts into NOW accounts, at midmonth. Subsequently, the dol­ had developed from the short-run lar declined som ewhat on balance, objectives set forth by the Commit­ as short-term interest rates in conti­ tee. Required reserves and the de­ nental European countries rose ap­ mand for reserves contracted in rela­ preciably, both in absolute terms tion to the supply of reserves being and relative to interest rates on dol­ made available through open market lar-denominated assets. In the days operations, and member bank bor­ imm ediately preceding this m eeting rowings declined to an average of the dollar traded at rates som ewhat about $1.2 billion in the three state­ above the level prevailing at the time ment weeks ending February 18 of the last meeting. The U .S. trade from an average of about $1.5 billion deficit in January and February was in the preceding three weeks. The at iabout the average m onthly rate of federal funds rate fell to an average the final quarter of 1980. The value of about 153/4 percent in the week of imports rose substantially, in as­ ending February 18, from about VI Va sociation with the expansion in U .S. percent at the time of the Commit­ econom ic activity, and the value of tee’s m eeting in early February; and exports also rose markedly. it declined further in subsequent At its m eeting on February 2-3, days to around the lower end of the the Com m ittee had decided that range of 15 to 20 percent that had open market operations in the period been specified by the Com m ittee. until this meeting should be directed In a telephone conference on Feb­ toward expansion of reserve aggre­ ruary 24, the Com m ittee agreed to gates associated with growth in accept som e shortfall in growth of M -l A and M -1B over the period M -l A and M -1B from the rates spec­ from Decem ber to M arch at annual ified in the directive adopted on Feb­ rates of 5 to 6 percent and in M -2 of ruary 3, in light of indications of about 8 percent, abstracting from the relatively strong growth of M -2 and impact of flows into NOW accounts. M-3 and the substantial easing that Those rates were associated with had occurred in m oney market con­ growth of M -1A, M -1B, and M-2 ditions, as well as of uncertainties from the fourth quarter of 1980 to the about the interpretation of the be­ first quarter of 1981 at annual rates havior of M -l. It was recognized that of about 2 percent, 23/4 percent, and the operational path for nonbor­ 7 percent respectively. If it appeared rowed reserves consistent with the during the period before the next Com m ittee’s decision might lead to regular m eeting that fluctuations in som e further easing in m oney mar­ the federal funds rate, taken over a ket conditions, depending upon rates period of tim e, within a range of 15 of growth in the m onetary aggre­ to 20 percent were likely to be incon­ gates. In fact, member bank borrow­ sistent with the monetary and relat­ ings declined in early M arch, and the ed reserve paths, the M anager for federal funds rate eased for a while Dom estic Operations was promptly in mid-M arch to about 13 percent. to notify the Chairman, who would Subsequently, however, demands then decide whether the situation for reserves strengthened, and in the called for supplem entary instruc­ days im m ediately preceding this tions from the Com m ittee. meeting, the federal funds rate was Early in the intermeeting period, around 15 percent. incoming data for the latter part of M -l A and M -1B, adjusted for the January and the early w eeks of Feb­ estimated effects of shifts into NOW ruary indicated that a shortfall in accounts, declined som ewhat in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 499 February and changed little on bal­ mitments for fixed-rate loans at sav­ ance over the first two months of the ings and loan associations rose about year. The narrower aggregates ex­ 40 basis points to 15.40 percent. panded substantially, however, in The staff projections presented at the first half of M arch. Growth in this meeting suggested that econom ­ M-2 picked up to an annual rate of ic activity, even while expanding about m percent in February from substantially in the first quarter, had 53A percent in January; and it appar­ been losing its upward m om entum, ently accelerated considerably in and that real GNP was likely to M arch, because of large flows into change little over the period ahead. m oney market mutual funds and Such a sluggish perform ance of the som e strengthening in the total of econom y would be accom panied by small-denomination time and sav­ a small increase in the unem ploy­ ings deposits in addition to the ex­ ment rate. The rise in the fixedpansion in the narrower aggregates. weight price index for gross dom es­ Expansion in total credit outstand­ tic business product was projected ing at U .S. com m ercial banks to remain rapid, although som ewhat slowed substantially in February to less so in the latter part of the year an annual rate of 8lA percent, about than in the first half. one-half the pace recorded in Janu­ In the Com m ittee’s discussion of ary. The deceleration reflected a re­ the econom ic situation and outlook, duced pace of investm ent acquisi­ members noted the unanticipated tions and weakness in loans, strength in activity in the autumn particularly security loans and busi­ and winter, and they continued to ness loans. The moderation in stress the difficulties of forecasting growth of business loans at com m er­ output and prices in the current envi­ cial banks was accom panied by ronment. A number of m embers ex­ stepped-up issuance of publicly of­ pressed the view that little change in fered bonds and continued heavy net real GNP over the balance of 1981 issuance of com m ercial paper by was an improbable developm ent; nonfinancial corporations. In addi­ and of these, all but one thought that tion, U .S. nonbank residents ex­ a stronger performance was more panded their outstanding loans from likely than a weaker one. W hile no foreign branches of U .S. banks. member voiced disagreem ent with Short-term market interest rates the staff projection of continuation declined substantially on balance of a rapid rise in overall prices, it over the intermeeting interval: in pri­ was suggested that inflationary ex­ vate short-term markets, yields fell 2 pectations might be moderating a bit to 3Vi percentage points; in the Trea­ and also that toward the end of the sury bill market, yields fell som e­ year the rise in the consum er price what less, about 3A to 2 percentage index might be lessening. points, as the Treasury raised large At its meeting on February 2-3, amounts of new m oney through bill the Committee had adopted the fol­ auctions and heavy seasonal issu­ lowing ranges for growth of the m on­ ance of cash managem ent bills. M ost etary aggregates over the period long-term interest rates rose Va to Vi from the fourth quarter of 1980 to the percentage point during the inter­ fourth quarter of 1981: M -l A and m eeting period. The prime rate M -1B, 3 to 5Vi percent and V/i to 6 charged by com m ercial banks on percent respectively, after adjust­ short-term business loans was re­ ment for the effects of flows into duced in steps to 17 Vz percent from NOW accounts; M -2, 6 to 9 percent; the level of 19Vi to 20 percent pre­ and M -3, 6V2 to W 2 percent. The vailing at the time of the last Com­ associated range for growth of com ­ mittee m eeting. In hom e mortgage mercial bank credit was 6 to 9 per­ markets, average rates on new com ­ cent. It was understood that the dis­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 Federal Reserve Bulletin □ June 1981 torting effects of shifts into NOW general focused on the interrelated accounts would change during the issues of the desirable speed of year and that other short-run factors growth of narrowly defined m oney, might cause considerable variation consistent with the range for the in annual rates of growth from one year, and the weight that should be month to the next and from one given to M -2. In the interest of sim­ quarter to the next. plification, the Com m ittee decided In the Com m ittee’s discussion of to focus on M -lB as the measure of policy for the period im m ediately transaction balances and to omit any ahead, it was noted that growth of reference to M -l A in its statem ent of the narrowly defined monetary ag­ monetary objectives for the short gregates (adjusted for the effects of run. After adjustment for the effects NOW accounts) was slow over the of shifts into NOW accounts, growth first three months of 1981 as a in the two would be similar. whole, despite the strength that had Concerning operations in the peri­ developed in early M arch. It was od before the next regular meeting, pointed out that the slow growth scheduled for mid-M ay, the view during the first quarter could be w el­ was expressed that the demand for com ed as an offset to the rapid m oney could well be expanding sub­ growth in the fourth quarter of 1980. stantially but that it would be appro­ Growth of M -2, in contrast, appar­ priate to establish a reserve path ently had been fairly rapid; its non­ consistent with growth at a relatively transaction com ponent had been m odest pace. It was also suggested buoyed by record expansion in m on­ that the weakness in growth of ey market mutual funds, which had adjusted M -1B in the early months of more than offset weakness in small- the year might be a m isleading indi­ denom ination tim e and savings de­ cator of the behavior of transaction posits. balances, mainly because of the rap­ A staff analysis suggested that the id growth of m oney market mutual sluggish growth in the narrowly de­ funds; som e part of the large flows fined m oney supply in the first quar­ into those funds might also be re­ ter, and the extraordinary increase garded as transaction balances. in the velocity of m oney, might have Thus, it was argued that som e great­ been related to the high interest rates er weight than previously should be in the fourth quarter of 1980 and to given to the behavior of M-2 in ap­ the year-end introduction of NOW praising the behavior of the m one­ accounts on a nationwide basis, tary aggregates. On the other hand, which together might have led to it was observed that the weight given intensive reconsideration of cash to M-2 should not be increased be­ management techniques. Looking to cause the ranges for 1981 adopted at the second quarter, another sharp the Com m ittee’s m eeting in early increase in the velocity of narrowly February might not allow sufficient­ defined m oney appeared unlikely, ly for the expectation that growth of and demands for transaction bal­ the broader aggregate in 1981 would ances were expected to expand sub­ tend to increase relative to that of stantially in association with growth M -1B. of nominal GNP. It was anticipated W ith respect to the federal funds that the nontransaction com ponent rate, it was stressed that the Com­ of M-2 would remain strong and that mittee specified an intermeeting the pickup in the demand for trans­ range for fluctuations over a period action balances would contribute to of time to provide a m echanism for rapid growth of M -2. initiating tim ely consultations be­ In considering objectives for m on­ tween regularly scheduled meetings etary growth over the second quar­ whenever it appeared that fluctua­ ter, members of the Com m ittee in tions within the specified range were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 501 proving to be inconsistent with the but there were signs of a slowing of the objectives for the behavior of re­ expansion in economic activity during the quarter; prices on the average contin­ serve and monetary aggregates. ued to rise rapidly. While retail sales Thus, the limits of the range were advanced appreciably over the first two indicative of the conditions under months of the year, industrial production which the Com m ittee would wish to declined in February after three months consult to reexam ine its short-run of diminishing gains, and housing starts dropped from the moderate pace that objectives and were not intended as had prevailed during the preceding six binding constraints on System oper­ months. Nonfarm payroll employment ations pending such consultations. changed little in February following a For the com ing intermeeting period, large increase in January; the unemploy­ ment rate, at 7.3 percent, was essentially various proposals were made for the unchanged. Over the first two months of range, all of them more or less cen­ 1981, the rise in the index of average tered on the rate of 15 percent that hourly earnings was little changed from had prevailed in the market m ost the rapid pace recorded during 1980. recently. The weighted average value of the dollar against major foreign currencies At the conclusion of the discus­ rose further following the Committee’s sion, the Com m ittee decided to seek meeting in early February to a peak at behavior of reserve aggregates asso­ midmonth but subsequently declined ciated with growth of M -lB over the somewhat on balance. Short-term inter­ est rates in continental European coun­ period from M arch to June at an tries have risen appreciably since midannual rate of 5Vi percent or som e­ February, absolutely and in relation to what less, after allowance for the interest rates on dollar-denominated as­ impact of flows into NOW accounts, sets. The U.S. trade deficit in January and growth in M-2 at an annual rate and February was at about the average monthly rate of the final quarter of 1980. of about 10J/2 percent. In evaluating M-l A and M-1B, adjusted for the esti­ the behavior of the aggregates, it mated effects of shifts into NOW ac­ was agreed that greater weight than counts, changed little over the first two before would be given to the behav­ months of the year but expanded sub­ stantially in the first half of March. ior of M -2. The m embers recognized Growth in M-2 accelerated in the course that shifts into NOW accounts of the quarter, and partial data suggest would continue to distort measured considerable strength in March, in part growth in M -lB to an unpredictable because of large flows into money mar­ extent and that operational paths ket mutual funds. On balance since early February, short-term market interest would have to be developed in the rates have fallen substantially while light of evaluation of those distor­ longer-term market rates have risen tions. If it appeared during the peri­ somewhat. od before the next scheduled m eet­ The Federal Open Market Committee seeks to foster monetary and financial ing that fluctuations in the federal conditions that will help to reduce infla­ funds rate, taken over a period of tion, encourage economic recovery, and tim e, within a range of 13 to 18 contribute to a sustainable pattern of percent were likely to be inconsis­ international transactions. At its meeting tent with the m onetary and related in early February, the Committee agreed that these objectives would be furthered reserve paths, the M anager for D o­ by growth of M-l A, M-1B, M-2, and M-3 m estic Operations was promptly to from the fourth quarter of 1980 to the notify the Chairman, who would fourth quarter of 1981 within ranges of 3 then decide whether the situation to 5Vi percent, VA to 6 percent, 6 to 9 percent, and 6Vi to 9Vi percent respec­ called for supplem entary instruc­ tively, abstracting from the impact of tions from the Com m ittee. introduction of NOW accounts on a na­ The following dom estic policy di­ tionwide basis. The associated range for rective was issued to the Federal bank credit was 6 to 9 percent. These Reserve Bank of N ew York: ranges will be reconsidered as conditions warrant. The information reviewed at this meet­ In the short run the Committee seeks ing suggests that real GNP expanded behavior of reserve aggregates consis­ substantially in the first quarter of 1981, tent with growth in M -lB from March to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bulletin □ June 1981 June at an annual rate of 5Vi percent or around the midpoint of the Vh to 6 somewhat less, after allowance for the percent range established by the impact of flows into NOW accounts, and Committee for 1981. Growth in M-2 growth in M-2 at an annual rate of about IOV2 percent. It is recognized that shifts had decelerated slightly in April; ex­ into NOW accounts will continue to dis­ pansion of this aggregate was still tort measured growth in M-1B to an relatively rapid, however, and its unpredictable extent, and operational re­ level in April was som ewhat above serve paths will be developed in the light its longer-run range for the year. of evaluation of those distortions. If it appears during the period before the next W hile the level of M -1B in April meeting that fluctuations in the federal was only at the midpoint of the long­ funds rate, taken over a period of time, er-run range, its growth in the month within a range of 13 to 18 percent are was more rapid than the pace of 5 Vi likely to be inconsistent with the mone­ percent or som ewhat less specified tary and related reserve paths, the Man­ ager for Domestic Operations is prompt­ for the period from M arch to June by ly to notify the Chairman, who will then the Committee at its M arch 31 m eet­ decide whether the situation calls for ing. Consequently, strong pressures supplementary instructions from the had developed on bank reserve posi­ Committee. tions as less reserves were supplied Votes for this action: Messrs. through open market operations Volcker, Boehne, Boykin, Corrigan, Partee, Rice, Schultz, Solomon, Mrs. than banks demanded. Indeed, non­ Teeters, and Mr. Winn. Vote against borrowed reserves were estim ated this action: Mr. Wallich. Absent: to have declined at an annual rate of Messrs. Gramley and Mayo. (Mr. about 12 percent in April. In adjust­ Winn voted as alternate for Mr. ing to the constrained availability of Mayo.) reserves, banks had a negative ex­ Mr. W allich dissented from this cess reserve position on the average action because he favored specifica­ in the latter part of April and in­ tion of lower monetary growth rates creased borrowings from the dis­ for the period from M arch to June count window sharply in late April than those adopted at this meeting and early M ay; borrowings averaged along with a higher intermeeting about $2.4 billion in the two weeks range for the federal funds rate. In ending M ay 6. The federal funds light of the recent strength of eco­ rate, which had been in a 15 to 15 V2 nomic activity, he believed that poli­ percent range for m ost of April, rose cy had not been as restrictive as considerably in late April and early supposed, in part because m oney M ay as banks intensified their efforts market mutual funds and other to acquire reserves; trading in recent sources of liquidity had contributed days had been in a range of 17 to 20 to an increase in the velocity of percent. Effective M ay 5, the basic M -1B, and that continuation of ex­ Federal Reserve discount rate was cessive strength in activity posed the raised from 13 to 14 percent and the greater danger for the period ahead. surcharge on frequent borrowing by On M ay 6 the Committee held a large depository institutions was in­ telephone conference. Available creased from 3 to 4 percentage data indicated that growth in M -1B, points, placing the surcharge rate at after adjustment for shifts of funds 18 percent. into NOW accounts from other in­ In the telephone conference on terest-bearing assets, had acceler­ M ay 6, the Com m ittee agreed that in ated markedly in April to an annual the brief period before the next regu­ rate of about 14 percent. H owever, lar meeting scheduled for M ay 18, in view of the very low growth of the reserve path would continue to shift-adjusted M -1B in the early be set on the basis of the short-run months of 1981 and the sharp decline objectives for monetary growth es­ in late 1980, the April acceleration tablished at the M arch 31 m eeting. It brought the level of M -1B only to was noted that for a tim e actual Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 503 m oney growth might be high relative Absent: Messrs. Gramley and Mayo. to those objectives in view of the (Mr. Winn voted as alternate for Mr. Mayo.) recent performance of the monetary aggregates. The Com m ittee recog­ In reviewing the authorization for nized that short-term market interest dom estic open market operations, rates might well fluctuate around the Committee took special note of levels prevailing in recent days and paragraph 3, which authorizes the that the federal funds rate might con­ Reserve Banks to engage in the lend­ tinue to exceed the upper end of the ing of U .S. governm ent securities range indicated for consultation at held in the System Open M arket the previous meeting. The Commit­ Account under such instructions as tee agreed to consult further if nec­ the Committee might specify from essary to maintain adequate restraint time to tim e. That paragraph had on the monetary and credit aggre­ been added to the authorization on gates. October 7, 1969, on the basis of a On May 6, the Committee agreed that judgment by the Com m ittee that through the period before the next regu­ such lending of securities was rea­ lar meeting the reserve path should con­ tinue to be set on the basis of the short- sonably necessary to the effective run objectives for monetary growth conduct of open market operations established at its meeting on March 31, and to the im plem entation of open recognizing that the federal funds rate market policies, and on the under­ might continue to exceed the upper end standing that the authorization of the range indicated for consultation at the March 31 meeting. would be reviewed periodically. At this meeting the Com m ittee con­ Votes for this action: Messrs. curred in the judgm ent of the M anag­ Volcker, Boehne, Boykin, Corrigan, er for Dom estic Operations that the Gramley, Rice, Schultz, Solomon, lending activity in question remained Mrs. Teeters, and Mr. Winn. Votes reasonably necessary and that, ac­ against this action: None. Absent: cordingly, the authorization should Messrs. Partee and Wallich. (Mr. Winn voted as an alternate member.) remain in effect subject to annual review. 2. R eview of C ontinuing A uthorizations 3. A uthorization for Foreign C urrency O perations At this, the first regular m eeting of the Federal Open M arket Com m ittee The Committee adopted several following the election of new m em ­ amendments to the authorization for bers from the Federal Reserve foreign currency operations to sim ­ Banks to serve for the year begin­ plify and clarify its instructions to ning M arch 1, 1981, the Committee the Federal Reserve Bank of N ew followed its custom ary practice of York and to bring the docum ent up reviewing all of its continuing autho­ to date in light of recent develop­ rizations and directives. The Com ­ ments. None of these amendments mittee reaffirmed the authorization was intended as a change in policy for dom estic open market opera­ orientation. tions, the foreign currency directive, As adopted in Decem ber 1976, and the procedural instructions with paragraph ID authorized the Federal respect to foreign currency opera­ Reserve Bank of N ew York, for the tions in the forms in which they were System Open M arket Account, to currently outstanding. maintain an overall open position in all foreign currencies not to exceed Votes for these actions: Messrs. $1.0 billion, unless a larger position Volcker, Boehne, Boykin, Corrigan, was expressly authorized by the Partee, Rice, Schultz, Solomon, Mrs. Teeters, Messrs. Wallich, and Winn. Committee. The language suggested Votes against these actions: None. that authorizations of larger posi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 Federal Reserve Bulletin □ June 1981 tions would be temporary. On D e­ ceeding $8.0 billion. For this purpose, cem ber 19, 1978, the Committee had the overall open position in all foreign currencies is defined as the sum (disre­ authorized an open position of $8 garding signs) of net positions in individ­ billion (shown as a footnote in the ual currencies. The net position in a authorization), which had remained single foreign currency is defined as in effect since that date. At this holdings of balances in that currency, plus outstanding contracts for future re­ meeting, the Com m ittee voted to in­ ceipt, minus outstanding contracts for corporate the long-standing limit of future delivery of that currency, i.e., as $8 billion in the text of paragraph the sum of these elements with due re­ ID. gard to sign. Paragraph 3 specifies that all 3. All transactions in foreign curren­ cies undertaken under paragraph 1(A) transactions in foreign currencies be above shall, unless otherwise expressly at prevailing market rates except in authorized by the Committee, be at pre­ the case of certain transactions with vailing market rates. For the purpose of foreign central banks. At this m eet­ providing an investment return on Sys­ tem holdings of foreign currencies, or for ing, the Com m ittee voted to delete a the purpose of adjusting interest rates reference to an exception that is no paid or received in connection with swap longer relevant and to add language drawings, transactions with foreign cen­ spelling out circum stances in which tral banks may be undertaken at nontransactions at nonmarket rates may market exchange rates. 5. Foreign currency holdings shall be be undertaken. invested insofar as practicable, consider­ Paragraph 5 is concerned with the ing needs for minimum working bal­ investm ent of System holdings of ances. Such investments shall be in liq­ balances of foreign currencies. In uid form, and generally have no more than 12 months remaining to maturity. view of a provision in the M onetary When appropriate in connection with Control Act of 1980 allowing the arrangements to provide investment fa­ System to invest in securities issued cilities for foreign currency holdings, or fully guaranteed by foreign gov­ U.S. Government securities may be pur­ ernments, the Committee voted to chased from foreign central banks under agreements for repurchase of such secu­ limit investm ent of foreign currency rities within 30 calendar days. holdings to liquid forms and general­ 6. All operations undertaken pursuant ly to instruments having no more to the preceding paragraphs shall be re­ than 12 months remaining to maturi­ ported promptly to the Foreign Currency Subcommittee and the Committee. The ty. Foreign Currency Subcommittee con­ The Com m ittee also amended sists of the Chairman and Vice Chairman paragraph 6 to provide that all opera­ of the Committee, the Vice Chairman of tions pursuant to the preceding para­ the Board of Governors, and such other graphs be reported promptly, rather member of the Board as the Chairman may designate (or in the absence of than on a daily basis, to the Foreign members of the Board serving on the Currency Subcom m ittee. Subcommittee, other Board Members As am ended, paragraphs ID, 3, 5 designated by the Chairman as alter­ and 6 read as follows: nates, and in the absence of the Vice Chairman of the Committee, his alter­ 1. The Federal Open Market Commit­ nate). Meetings of the Subcommittee tee authorizes and directs the Federal shall be called at the request of any Reserve Bank of New York, for System member, or at the request of the Manag­ Open Market Account, to the extent er for Foreign Operations for the pur­ necessary to carry out the Committee’s poses of reviewing recent or contemplat­ foreign currency directive and express ed operations and of consulting with the authorizations by the Committee pursu­ Manager on other matters relating to his ant thereto, and in conformity with such responsibilities. At the request of any procedural instructions as the Commit­ member of the Subcommittee, questions tee may issue from time to time: arising from such reviews and consulta­ tions shall be referred for determination * * * * * to the Federal Open Market Committee. D. To maintain an overall open po­ Votes for these actions: Messrs. sition in all foreign currencies not ex­ Volcker, Boehne, Boykin, Corrigan, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 505 Partee, Rice, Schultz, Solomon, Mrs. sales of the same currencies at the Teeters, Messrs. Wallich, and Winn. same exchange rate to the ESF. Pur­ Votes against these actions: None. suant to that agreem ent, the Com ­ Absent: Messrs. Gramley and Mayo. (Mr. Winn voted as alternate for Mr. mittee had agreed that the Federal Mayo.) Reserve would be prepared to ware­ house for the Treasury or for the ESF up to $5 billion of eligible for­ 4. A greem ent w ith T reasury eign currencies. At this m eeting the to W arehouse Committee reaffirmed the agreement Foreign C urrencies on the terms adopted on M arch 18, At its meeting on January 17-18, 1980, with the understanding that it 1977, the Committee had agreed to a would be subject to annual review. suggestion by the Treasury that the Votes for this action: Messrs. Federal Reserve undertake to Volcker, Boehne, Boykin, Corrigan, “warehouse” foreign currencies— Partee, Rice, Schultz, Solomon, Mrs. that is, to make spot purchases of Teeters, Messrs. Wallich, and Winn. Votes against this action: None. Ab­ foreign currencies from the Ex­ sent: Messrs. Gramley and Mayo. change Stabilization Fund and (Mr. Winn voted as alternate for Mr. sim ultaneously to make forward Mayo.) 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 made available a few days after the next regularly scheduled meeting and are later published in the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

507 Legal Developments A mendments to R egulations D and Q the agreement with the institution, to demand payment only outside the United States. Part 204—Reserve Requirem ents of D epository Institutions 2. Section 217.1 of Regulation Q (12 CFR Part 217) is amended by adding a new paragraph (k) as Part 217—Interest on D eposits follows: Deposits Payable Outside the United States Section 217.1— Definitions The Board of Governors of the Federal Reserve Sys­ For purposes of this Part, the following definitions tem has amended its Regulation D—Reserve Require­ apply unless otherwise specified: ments of Depository Institutions (12 CFR Part 204) and Regulation Q—Interest on Deposits (12 CFR Part 217) to subject deposits in denominations of less than (k) “Any deposit that is payable only at an office $100,000 maintained at foreign branches to interest located outside of the States of the United States and rate ceilings and reserve requirements. This action is the District of Columbia” means (1) a deposit of a U.S. taken in light of recent offerings that have significant resident8a (as defined in 12 CFR § 204.2(s)) that is in a potential adverse implications for the viability of the denomination of $100,000 or more, and as to which the existing interest rate ceiling structure, the flow of depositor is entitled under the agreement with the funds among depository institutions, and the conduct institution, to demand payment only outside the States of monetary policy. of the United States or the District of Columbia or (2) a Effective May 14, 1981, the Board of Governors of deposit of a person who is not a United States resithe Federal Reserve System has amended its Regula­ dent8a as to which the depositor is entitled under the tions D (12 CFR Part 204) and Q (12 CFR Part 217) as agreement with the institution to demand payment, follows: only outside the States of the United States or the District of Columbia. 1. Section 204.2 of Regulation D (12 CFR Part 204) is amended by adding a new paragraph (t) as follows: A mendment to R ules Regarding Section 204.2— Definitions Delegation of A uthority For purposes of this Part, the following definitions Part 265—Rules Regarding D elegation of apply unless otherwise specified: Authority General Counsel Authority to Approve (t) “Any deposit that is payable only at an office Exceptions Under Regulation L located outside the United States” means (1) a deposit of a United States resident1 that is in a denomination The Board of Governors of the Federal Reserve Sys­ of $100,000 or more, and as to which the depositor is tem is amending its Rules Regarding Delegation of entitled, under the agreement with the institution, to demand payment only outside the United States or (2) a deposit of a person who is not a United States international business or that of other foreign affiliates of the control­ resident1 as to which the depositor is entitled, under ling domestic corporation(s). 8a. A deposit of a foreign branch, office, subsidiary, affiliate or other foreign establishment (“foreign affiliate”) controlled by one or 1. A deposit of a foreign branch, office, subsidiary, affiliate or other more domestic corporations is not regarded as a deposit of a United foreign establishment (“foreign affiliate”) controlled by one or more States resident if the funds serve a purpose in connection with its domestic corporations is not regarded as a deposit of a United States foreign or international business or that of other foreign affiliates of resident if the funds serve a purpose in connection with its foreign or the controlling domestic corporation(s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 Federal Reserve Bulletin □ June 1981 Authority in order to delegate to its General Counsel State Bank, Shepherd, Michigan (“Shepherd Bank”); authority to grant certain exceptions to the prohibi­ and First Community Bank, N.A., West Branch, tions against management interlocks among deposi­ Michigan (“West Branch Bank”). The company into tory institutions contained in the Depository Institu­ which FBC is to be merged has no significance except tion Management Interlocks Act (12 U.S.C. § 3201 et as a means to facilitate the acquisition of the voting seq.). The delegation authorizes the Board’s General shares of FBC. Accordingly, the proposed acquisition Counsel to grant the exceptions when the primary of shares of the successor organization is treated federal supervisory agency of the depository organiza­ herein as the proposed acquisition of shares of FBC. tion in need of management service has granted the Notice of the application, affording opportunity for exception. This action is intended to expedite reviews interested persons to submit comments and views, has of requests for exceptions provided in Regulation L been given in accordance with section 3(b) of the Act. (12 C.F.R. § 212.3(b)). The time for filing comments and views has expired, Effective May 20, 1981, the Board of Governors of and the Board has considered the application and all the Federal Reserve System has amended its Rules comments received, including those of Second Nation­ Regarding Delegation of Authority by adding para­ al Corporation, Saginaw, Michigan (“Protestant”), in graph (9) to read as follows: light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). Section 265.2— Specific Functions Delegated to Applicant, the third largest banking organization in Board Em ployees and to Federal Reserve Michigan, controls ten banks with aggregate deposits Banks. of approximately $3.7 billion, representing approxi­ mately 9.3 percent of total deposits in commercial banks in the state.1 Acquisition of FBC, the 44th (b) * * * largest banking organization in Michigan, controlling three banks with aggregate deposits of $100.6 million, would increase Applicant’s share of commercial bank (9) Under the provisions of section 212.4(b) of this deposits in Michigan by 0.25 percent and would not chapter (Regulation L relating to interlocking rela­ alter its statewide ranking. tionships permitted by Board order), to grant excep­ FBC controls Midland Bank (deposits of $83.5 mil­ tions from the prohibitions of Regulation L when the lion), the sixth largest of twelve banking organizations primary Federal supervisor of the depository institu­ competing in the Bay City-Saginaw banking market,2 tion in need of management assistance has approved holding 5.2 percent of the deposits in that market; the exception. Shepherd Bank (deposits of $17.0 million), the sixth largest of nine banking organizations competing in the Mt. Pleasant banking market,3 holding 7.2 percent of Bank H olding Com pany and Bank M erger the deposits in that market; and West Branch Bank, a Orders Issued B y The B oard of G overnors de novo bank opened in December of 1980, located in the Standish-West Branch banking market.4 West Orders Under Section 3 of Bank H olding Branch Bank is the smallest of six banking organiza­ Com pany Act. tions in the Standish-West Branch banking market and controls a negligible amount of deposits in that market. Detroitbank Corporation, None of Applicant’s subsidiary banks has an office in Detroit, M ichigan any of the relevant banking markets, or within 97 miles of any office of FBC’s subsidiary banks. Thus, no Order Approving Acquisition of Bank Holding significant existing competition would be eliminated Company by consummation of the proposal. Detroitbank Corporation, Detroit, Michigan, a bank holding company within the meaning of the Bank 1. All banking data are as of June 30, 1980, unless otherwise Holding Company Act (the “Act”), has applied for the indicated. Board’s approval under section 3 of the Act (12 U.S.C. 2. The Bay-City Saginaw banking market is approximated by Bay, Midland, and Gladwin Counties and the northern three-quarters of § 1842) to acquire 100 percent of the voting shares of Saginaw County. the successor by merger to First Bank Corporation, 3. The Mount Pleasant banking market is approximated by Isabella Midland, Michigan (“FBC”), a bank holding company and Clare Counties. 4. The Standish-West Branch banking market is approximated by that controls First Midland Bank & Trust Company, Arenac and Ogemaw Counties, the western half of Iosco County, and Midland, Michigan (“Midland Bank”); Shepherd Curtis township in Alcona County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 509 With regard to potential competition, based upon statewide banking structures in general and, more the facts of record, including Applicant’s size and its specifically, the size disparity between the large bank­ ability to expand de novo, Applicant must be viewed ing organizations operating statewide and the smaller as a likley potential entrant into the three relevant regional banking organizations. The Board is con­ banking markets. Acquisition of West Branch Bank, cerned with the possibility that continued approval of however, will result in no adverse effects upon poten­ acquisition or merger proposals involving larger state­ tial competition in the Standish-West Branch banking wide bank holding companies and relatively sizeable market since the bank to be acquired is at this time a banking organizations may perpetuate this size dispar­ relatively minor competitive factor. Moreover, only ity and increase concentration ratios. Applicant’s pro­ one of the state’s fifteen largest banking organizations posal to acquire Protestant involved the acquisition by now is represented in the market, Applicant is but one Applicant of the 18th largest banking organization in of several potential entrants, and a foothold entry Michigan, controlling 2 subsidiary banks with aggre­ vehicle would remain in the market following consum­ gate deposits of approximately $383.9 million, repre­ mation of the proposal. With regard to the Mt. Pleas­ senting 1.0 percent of statewide commercial bank ant banking market, no substantial amount of potential deposits.6 However, the Board does not regard the competition would be eliminated as a result of con­ acquisition of FBC, the 44th largest banking organiza­ summation of the proposal because of the small size tion in the state, controlling three banks with aggregate and market share of deposits held by Shepherd Bank. deposits of approximately $100.6 million, representing Based upon demographic data and other facts of 0.25 percent of statewide commercial bank deposits, record, the market appears only moderately attractive as involving the acquisition of a banking organization for de novo entry. Further, only one of the state’s of sufficient size so that consummation would have a fifteen largest banking organizations currently is repre­ serious adverse effect upon concentration in Michigan. sented in the market, Applicant is only one of several With regard to potential competition in the Bay potential entrants, and following consummation of the City-Saginaw banking market, Applicant’s proposal to proposal, five foothold entry vehicles would remain in acquire Protestant would have involved the acquisi­ the market. With respect to the Bay City-Saginaw tion of the largest of the twelve banking organizations market, because of the size and market share of competing in the market, controlling 25.8 percent of deposits held by Midland Bank in that market, no the commercial bank deposits in the market. Appli­ substantial amount of potential competition would be cant’s proposal to acquire FBC, however, involves the eliminated in that market as a result of consummation proposed acquisition of Midland Bank, the 6th largest of the proposal. Only four of the state’s fifteen largest of 12 banking organizations, controlling only 5.2 per­ banking organizations currently are represented in the cent of the commercial banks deposits in the market. market, Applicant is only one of several potential This means of entry into the Bay City-Saginaw bank­ entrants, and following consummation of the proposal, ing market does not appear to be an unreasonable five foothold entry vehicles would remain in the proposal in light of the Board’s previous concerns. market. While the concentrated nature of the market7 and the In its consideration of this proposal, the Board has attractiveness for de novo entry into the Midland and reviewed the comments of Protestant, who contends Saginaw County portion of the market have not that the factors leading to the Board’s recent denial of changed measurably since the Board’s denial of Appli­ the proposed acquisition of Protestant by Applicant5 cant’s proposal to acquire Protestant, the relative size are present in this case and, therefore, the Board of the banking organization to be acquired differs should deny this application. In considering Appli­ significantly. Further, while Applicant’s proposed ac­ cant’s proposal to acquire Protestant, the Board found quisition of the largest bank in the market would have that the proposal would have adverse effects on state­ done nothing to reduce the concentration of banking wide concentration of banking resources and on poten­ resources in the relevant market, Applicant’s pro­ tial competition in the Saginaw-Bay City banking posed entry into the market would have a deconcenmarket that were not outweighed by factors related to trating impact on the banking market. Accordingly, the convenience and needs of the communities to be the Board is satisfied that the facts of this case are served. sufficiently different from those associated with the With respect to concentration of banking resources Board’s denial of Applicant’s proposal to acquire in Michigan, the Board has continued to monitor 6. Banking data are as of December 31, 1978. 7. The four largest banking organizations controlled 79.3 and 79.1 5. DETROITBANK Corporation, 66 Federal Reserve Bulletin percent of total market deposits as of December 31, 1978, and June 30, 242 (1980). 1980, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 Federal Reserve Bulletin □ June 1981 Protestant. After considering the overall impact of acquiring 80 percent or more of the voting shares of consummation of this proposal in light of the above First National Bank of Lincolnwood, Lincolnwood, and other facts of record, the Board concludes that Illinois (“Bank”). approval of this application would have no significant Notice of the application, affording opportunity for adverse effects upon competition in any relevant area. interested persons to submit comments and views, has The financial and managerial resources and future been given in accordance with section 3(b) of the Act. prospects of Applicant, FBC, and their subsidiary The time for filing comments and views has expired, banks are regarded as satisfactory. Accordingly, bank­ and the Board has considered the application and all ing factors are consistent with approval of the comments received in light of the factors set forth in . application. section 3(c) of the Act (12 U.S.C. § 1842(c)). Following consummation of the proposed transac­ Applicant is a nonoperating company organized for tion, Applicant proposes to provide assistance to the purpose of becoming a bank holding company by FBC’s subsidiary banks in establishing cash manage­ acquiring Bank. Bank, the 98th largest banking organi­ ment services as well as expanded international serv­ zation in the state of Illinois, has total deposits of ices. Applicant also intends to assist FBC’s subsidiary $102.8 million, representing approximately 0.13 per­ banks in making mortgage financing available for large cent of the total deposits in commercial banks in the commercial and industrial construction. Thus, the state.1 Bank is the 68th largest of 369 commercial Board concludes that considerations relating to the banks in the Chicago banking market,2 and holds convenience and needs of the community to be served approximately 0.19 percent of the commercial bank lend slight weight toward approval, and outweigh any deposits in the market. adverse competitive effects that may result from the Principals of Applicant also are principals of Water proposal. Based upon the foregoing and other consid­ Tower Trust and Savings Bank, Chicago, Illinois, erations reflected in the record, it is the Board’s which holds deposits of $22.8 million. The affiliation judgment that the proposed acquisition is in the public raises no significant competitive issues since the two interest and that the application should be approved. institutions would hold only 0.23 percent of total On the basis of the record, the application is ap­ commercial bank deposits in the Chicago banking proved for the reasons summarized above. The trans­ market. The proposal represents a restructuring of action shall not be made before the thirtieth calendar Bank’s ownership from individuals to a corporation day following the effective date of this Order or later owned by the same individuals. Consummation of the than three months after the effective date of this proposal thus would not have any adverse effects on Order, unless such period is extended for good cause existing or potential competition, or on the concentra­ by the Board, or by the Federal Reserve Bank of tion of banking resources in any relevant area. Ac­ Chicago pursuant to delegated authority. cordingly, the Board concludes that competitive con­ By order of the Board of Governors, effective siderations are consistent with approval of the May 20, 1981. application. The financial and managerial resources and future Voting for this action: Vice Chairman Schultz and Gover­ prospects of Bank and Applicant are considered gener­ nors Partee, Teeters, Rice, and Gramley. Absent and not ally satisfactory. Although Applicant will incur some voting: Chairman Volcker and Governor Wallich. debt in connection with this proposal, there appears to be sufficient flexibility for Applicant to service the (Signed) James M cAfee, debt without adversely affecting the financial condi­ [seal] Assistant Secretary of the Board. tion of Bank. In making this determination, the Board has relied on Applicant’s commitment to inject capital into Bank by issuing $500 thousand in subordinated debentures, and using the proceeds to purchase new First Lincolnwood Corp., Bank common stock. In addition, the Board has relied Lincolnwood, Illinois on Applicant’s commitment that Bank will issue an additional $500 thousand in capital notes to an outside Order Approving Formation of Bank Holding party(ies). Both of these capital injections will be Company completed with consummation of this proposal. Ac­ cordingly, considerations relating to banking factors First Lincolnwood Corp., Lincolnwood, Illinois, has applied for the Board’s approval under section 3 (a)(1) 1. All banking data are as of December 31, 1979. of the Bank Holding Company Act (12 U.S.C. § 1842 2. The Chicago banking market is approximated by all of Cook, (a)(1)) of formation of a bank holding company by DuPage, and Lake Counties, Illinois. 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Legal Developments 511 are consistent with approval of the application.3 While The Board has received from the public three pro­ there will be no immediate changes in the services tests to this application, one of which requested the offered by Bank upon consummation of the proposal, Board to hold a formal hearing on the application. The considerations relating to the convenience and needs Board has determined that the three protests are not of the community to be served are consistent with substantive, and that the hearing request should be approval of the application. Based upon the foregoing denied. However, while there is no legal requirement and other considerations reflected in the record of this to hold any public proceeding on this application, in application, it is the Board’s judgment that consumma­ light of the importance of Crocker National Bank in tion of the proposal to acquire Bank would be consis­ the communities in which it operates and the interest tent with the public interest and that the application of the public in the proposal, the Board has determined should be approved. to hold a public meeting on the application in San On the basis of the Record, the application is Francisco, California. The meeting will commence at approved for the reasons summarized above. The 9:00 a.m. on June 22, 1981, at the Federal Reserve transaction shall not be made before the thirtieth Bank of San Francisco, 400 Sansome Street, San calendar day following the effective date of this Order, Francisco, California 94120. or later than three months after the effective date of Any person who desires to give testimony, present this Order, unless such period is extended for good evidence, or otherwise participate in this proceeding cause by the Board, or by the Federal Reserve Bank of should file with the Assistant Secretary, Board of Chicago pursuant to delegated authority. Governors of the Federal Reserve System, Washing­ By order of the Board of Governors, effective ton, D.C., 20551, on or before June 12, 1981, a written May 14, 1981. request containing a statement of the nature of that person’s interest in the proceedings, the extent of the Voting for this action: Chairman Volcker and Governors participation desired, a summary of the matters con­ Schultz, Partee, Teeters, and Rice. Absent and not voting: cerning which that person desires to give testimony, Governors Wallich and Gramley. submit evidence or raise questions, and the names and identity of witnesses who propose to appear. Such (Signed) D. M ichael M anies, requests will be submitted to the designated presiding [seal] Assistant Secretary of the Board. officer of the proceeding. By order of the Board of Governors, effective May 26, 1981. M idland Bank Lim ited, London, England Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Teeters, Rice, and Gramley. Order for Public Meeting (Signed) James M cAfee, Midland Bank Limited, London, England, has applied [seal] Assistant Secretary of the Board. for the Board’s approval under section 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) to become a bank holding company by acquiring 50 Northwest Bancorporation, percent or more of the voting shares of Crocker M inneapolis, M innesota National Corporation, San Francisco, California. No­ tice of this application was published in the Federal Order Approving Acquisition of a Bank Holding Register on March 23, 1981 (46 Federal Register Company 18,066). Northwest Bancorporation, Minneapolis, Minnesota, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the 3. The Board denied a previous proposal by Applicant to acquire Board’s approval under section 3(a)(3) of the Act Bank in 1976 based on the Board’s determination that at that time Applicant lacked the financial flexibility necessary to meet its annual (12 U.S.C. § 1842(a)(3)) to acquire all of the voting debt service requirements while maintaining adequate capital at Bank. shares of State Financial Services, Inc., Worthington, First Lincolnwood Corp., 62 Federal Reserve Bulletin 153 (1976); Minnesota (“Company”), a registered one bank hold­ see Board of Governors v. First Lincolnwood Corp., 439 U.S. 234 (1978), upholding the Board’s order. Since the Board’s denial, Bank ing company, and to acquire indirectly its subsidiary, has increased its earnings and gross capital to assets ratio. Based on State Bank of Worthington, Worthington, Minnesota these facts and Applicant’s commitments to further increase Bank’s capital, the Board has determined that the conditions that warranted (“Bank”). Following consummation of the proposal, the Board’s previous denial are no longer present. Company will be liquidated. Accordingly, the pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 Federal Reserve Bulletin □ June 1981 posed acquisition of shares of Company is treated which bank customers that are neither very large or herein as the proposed acquisition of shares of Bank. very small find it practical to do their banking busi­ Notice of the application, affording opportunity for ness . . . .” Id., at 359. interested persons to submit comments and views, has Based upon the facts of record, the Board believes been given in accordance with section 3(b) of the Act. that Nobles County, Minnesota, approximates the The time for filing comments and views has expired, relevant geographic market within which to consider and the Board has considered the application and all the competitive effects of the proposal. Bank is located comments received, including those of the Indepen­ in Worthington, which is the county’s largest commu­ dent Bankers of Minnesota, and the 12 banks in nity and the county seat, and the area from which Minnesota listed in the Appendix (collectively, “Prot­ people commute into Worthington approximates No­ estant”), and the Minnesota Commissioner of Banks, bles County. In addition, Bank derives virtually all of in light of the factors set forth in section 3(c) of the Act its loans and deposits from Nobles County. (12 U.S.C. § 1842(c)). In the Board’s view, the larger geographic market Protestant contends that consummation of the pro­ proposed by Protestant, consisting of Nobles County posal would have substantial anticompetitive effects and adjacent Murray and Rock Counties, Minnesota, on statewide banking structure as well as in the is not substantiated by the evidence of record. The relevant market. Applicant controls 86 banks located record indicates that Applicant’s subsidiary bank in in 7 upper midwestern states with total deposits of $9.6 Slayton, in Murray County, and its subsidiary bank in billion. Applicant is the second largest banking organi­ Luvern, in Rock County, do not derive any significant zation in Minnesota, controlling 49 banks with $5.1 portion of their deposits or loans from Nobles County. billion in deposits, representing approximately 23.1 Applicant’s Slayton and Luverne subsidiary banks percent of the total commercial bank deposits in the derive only 1.8 percent and 0.2 percent of their loans, state.1 Acquisition of Bank, with deposits of approxi­ and 2.4 percent and 3.3 percent of their deposits, mately $38.9 million, would increase Applicant’s share respectively, from Nobles County. Moreover, Bank of deposits in commercial banks in Minnesota by 0.2 obtains only 3.0 percent of its loans and 1.6 percent of percent and would not alter its statewide ranking. its deposits from Murray and Rock Counties. Slayton While the Board has expressed concern about the and Luverne are the largest communities in, and the concentration of commercial bank deposits in Minne­ county seats of, their respective counties. Each com­ sota held by the two largest banking organizations in munity is located 31 road miles from Bank and serves the state, the Board believes that, given the recent as a center of economic activity for an area separate general trend toward deconcentration in Minnesota, from Nobles County.2 Applicant’s acquisition of Bank would not result in a Bank is the second largest of nine banking organiza­ significant increase in statewide concentration. tions in the Nobles County banking market, a rural The Supreme Court has articulated a number of agricultural community, and controls approximately factors to be considered in determining a relevant 24.3 percent of the total commercial bank deposits in geographic banking market. See United States v. the market. None of Applicant’s subsidiary banks are Philadelphia National Bank, 374 U.S. 321 (1970); see, located in the relevant banking market. As noted also Mid-Nebraska Bancshares v. Board of Gover­ above, Applicant’s two subsidiary banks closest to nors, 627 F. 2d 266 (D.C. Cir. 1980). These cases Bank are each located 31 road miles from Bank in indicate that the competitive effects of a proposed separate banking markets. Moreover, it does not ap­ merger or acquisition should be judged in a localized pear that Applicant’s three nonbanking subsidiaries market in which banks offer their services and to compete to any significant extent in the relevant which local customers can practicably turn for alterna­ market. Thus, no existing competition would be elimi­ tives. The Supreme Court has stated in this regard that nated by consummation of the proposal. “the proper question is not where the parties to the Protestant contends that the proposed acquisition merger do business or even where they compete, but where, within the area of competitive overlap, the effect of the merger on competition will be direct and 2. Protestant also asserts that it has been informed by bankers in the three-county area that banks in Nobles County are influenced by immediate.” United States v. Philadelphia National changes in rates and services made by banks in Rock and Murray Bank, supra, 374 U.S. at 357. In determining this area, Counties and that banks in Rock and Murray Counties are influenced by banks in Nobles County. These statements are unsupported by any the Supreme Court sought “to delineate the areas in empirical data. In any event, such influence, even if demonstrated, is not inconsistent with the Board’s finding that the relevant market is approximated by Nobles County, since, as the Board has recently noted, geographic markets are usually not totally devoid of some influence from adjacent markets. Independent Bank Corporation, 67 1. All banking data are as of December 31, 1979. Federal Reserve Bulletin 436 (1981). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 513 will eliminate significant potential competition in the other communities in Minnesota has not deterred Nobles County banking market. While Applicant ap­ subsequent entry by other banking organizations.6 In pears to have the size and ability to enter the Nobles light of all the facts of record, it is the Board’s County banking market de novo, in the Board’s judg­ judgment that consummation of the proposal will not ment, the market is not attractive for de novo entry. have any substantially adverse effects on competi­ Nobles County’s population declined 6.5 percent be­ tion.7 tween 1970 and 1980. In addition, while Minnesota Considerations relating to the financial and manage­ nonmetropolitan counties average one banking office rial resources and future prospects of Bank, Appli­ for each 2,524 residents, Nobles County has one cant, and Applicant’s subsidiaries are regarded as banking office for each 1,808 residents.3 Accordingly, satisfactory. the Board is unable to conclude that Applicant is The record indicates that following consummation reasonably likely to enter the Nobles County banking Applicant intends to introduce a number of new or market de novo. expanded services at Bank. Applicant will make a full Moreover, in the Board’s view, it is unlikely that range of trust services available to Bank’s customers. Applicant would enter the relevant market by means In addition, affiliation with Applicant will assist Bank of a foothold acquisition of a smaller bank. Bank is the in originating FHA, VA, and conventional mortgage smallest of the two banks now located in Worthington, loans, in making specialized agricultural loans, and in the county seat and largest community in the market. providing leasing services to farmers and businesses. The larger bank located in Worthington is a subsidiary Finally, Applicant’s commercial finance subsidiary of the largest bank holding company in the state. can assist Bank to meet the needs of local businesses Moreover, Minnesota’s branching law precludes Ap­ for financing to be secured by accounts receivable, plicant’s two banking subsidiaries in adjacent markets inventory, equipment, and a variety of other collater­ from establishing a branch in Worthington’s central al. Applicant’s provision of such new and expanded business district or in secondary commercial areas in services will enable Bank to compete more effectively Worthington.4 Based upon these and other facts of with the largest bank in Worthington, which is affiliat­ record, the Board is unable to conclude that consum­ ed with the state’s largest holding company. Thus, mation of the proposal would have any significant considerations relating to the convenience and needs effects upon potential competition in any relevant of the community to be served lend weight toward area.5 approval of the application and outweigh any adverse Protestant also alleges that the proposal would be effects that may result from the proposal. anticompetitive in that it would serve to “entrench” On the basis of the record, the application is ap­ Applicant, a powerful banking organization, in the proved for the reasons summarized above. The trans­ market and thereby would discourage future entry into action shall not be made before the thirtieth calendar Nobles County by other organizations. Protestant’s day following the effective date of this Order or later theory is not supported by any evidence of record. than three months after the effective date of this Indeed, the record shows that Applicant’s presence in Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Minneapolis pursuant to delegated authority. 3. Protestant asserts that, based on a relatively high ratio of By order of the Board of Governors, effective deposits per banking office, Nobles County is moderately attractive May 27, 1981. for de novo entry. However, based on June 30, 1980, data, the ratio of deposits to banking offices in Nobles County is about equal to the average ratio of deposits to banking offices for nonmetropolitan Voting for this action: Chairman Volcker and Governors counties in Minnesota. Wallich, Partee, Teeters, Rice, and Gramley. Absent and not 4. Given the unattractiveness for de novo entry of the market in voting: Governor Schultz. general and Worthington in particular, it is also unlikely that Applicant would acquire one of the banks in the market outside Worthington and attempt to establish a branch in Worthington. (Signed) James M cAfee, 5. Noting that consummation of the proposal would increase the [seal] Assistant Secretary of the Board. number of markets in the state where the two largest statewide organizations are present, Protestant contends that the proposed transaction would increase the chances that these two organizations may, because of their direct contact in many markets, mutually agree not to compete vigorously. This theory is not supported by any evidence of record. Moreover, available evidence tends to contradict Protestant’s contentions. For example, a survey of rates charged and 6. Applicant has banking subsidiaries in 32 Minnesota communities services offered by rural banks in Minnesota conducted in 1975 by the outside of the Minneapolis/St. Paul metropolitan area. Since 1955, 13 Federal Reserve Bank of Minneapolis indicates that there is no new banks have been established in 12 of these communities. significant difference between prices and services established by 7. The Minnesota Commissioner of Banks has submitted a detailed banks in counties with affiliates of the two largest bank holding analysis of the proposal, concluding that Applicant’s acquisition of companies and by banks in counties without such affiliates. Bank would not have any significant anticompetitive effects. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 Federal Reserve Bulletin □ June 1981 Appendix organizations in Minnesota would raise serious con­ cerns with respect to the concentration of banking List of Protestants: resources in the state. Hardwick State Bank, May 27, 1981 Hardwick, Minnesota Farmers State Bank, Kanaranzi, Minnesota Taney County Bancorporation, Inc. Beaver Creek State Bank, Kansas City, M issouri Beaver Creek, Minnesota State Bank of Chandler, Order Denying Formation of a Bank Holding Chandler, Minnesota Company Currie State Bank, Currie, Minnesota Taney County Bancorporation, Inc., Kansas City, First National Bank, Missouri, has applied for Board’s approval under Lake Wilson, Minnesota section 3(a)(1) of the Bank Holding Company Act Farmers State Bank, (12 U.S.C. § 1842(a)(1)) of formation of a bank holding Round Lake, Minnesota company by acquiring 91.4 percent of the voting First State Bank, shares of Security Bank and Trust Company, Branson, Rushmore, Minnesota Missouri (“Bank”). Ellsworth State Bank, Notice of the application, affording an opportunity Ellsworth, Minnesota for interested persons to submit comments and views, First National Bank, has been given in accordance with section 3(b) of the Brewster, Minnesota Act. The time for filing comments and views has State Bank of Lismore, expired, and the Board has considered the application Lismore, Minnesota and all comments received in light of the factors set First National Bank, forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). Wilmont, Minnesota Applicant proposes to become the successor by merger to four companies, each of which is whollyowned by one of Applicant’s four principals and Concurring Statement of Governor Teeters currently owns approximately 23 percent of the voting shares of Bank, which holds deposits of $37.7 million1. In my opinion this proposal, which involves the acqui­ Upon acquisition of Bank, Applicant would control sition of Bank (second largest of nine banking organi­ the 147th largest bank in Missouri and would hold zations in the Nobles County banking market, with approximately 0.2 percent of the total commercial deposits of $38.9 million) by Minnesota’s second larg­ bank deposits in the state. est bank holding company, may serve to slow or even Bank is the second largest of three commercial to reverse the recent trend in Minnesota toward de­ banks in the Taney County banking market, and holds concentration of statewide banking resources. Minne­ approximately 33.2 percent of the total deposits in sota is now the most highly concentrated unit banking commercial banks in the relevant market.2 While state in the nation in terms of the concentration of principals of Applicant are associated with three other deposits held by the two largest banking organizations bank holding companies, none of these companies in unit banking states, and ranks 12th among all operates banks that compete in the relevant banking states.1 However, in light of all of the facts of record in market. It appears from the facts of record that this instance, including the unattractiveness of the consummation of the proposal would not result in any market for de novo entry, I agree with the majority’s adverse effects upon competition, or increase the action in approving this proposal. Nevertheless, in my concentration of banking resources in the relevant view, any subsequent acquisitions of Minnesota banks area. Accordingly, the Board concludes that competithat are going concerns by the two largest banking 1. The top four banking organizations in Minnesota hold 26.8, 23.1, 2.6, and 1.9 percent, respectively, of the state’s commercial bank deposits. Minnesota is also the most highly concentrated unit banking 1. All banking data are as of June 30, 1980. state in terms of three- and four-firm concentration, and ranks 13th 2. The Taney County banking market is approximated by Taney and 21st respectively, among all states. County, Missouri. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 515 tive considerations are consistent with approval of the Voting for this action: Chairman Volcker and Governors application. Schultz, Partee, Teeters, and Rice. Absent and not voting: The Board has indicated on previous occasions that Governors Wallich and Gramley. a holding company should serve as a source of finan­ cial and managerial strength to its subsidiary bank(s), (Signed) D. M ichael M anies, and that the Board would closely examine the condi­ [seal] Assistant Secretary of the Board. tion of an applicant in each case with this consider­ ation in mind. In this case the Board concludes that considerations relating to the financial resources and Orders Under Section 4 o f Bank H olding future prospects of Applicant and Bank warrant denial Com pany A ct of the application. The financial and managerial re­ sources and future prospects of the other banking First Union Bancorporation, organizations affiliated with Applicant and Bank are St. Louis, M issouri considered generally satisfactory. With respect to Applicant’s and Bank’s financial Order Approving Insurance Agency Activities considerations and future prospects, the Board notes that in connection with this proposal Applicant would First Union Bancorporation (“Applicant”), St. Louis, incur a sizeable debt. In addition, Applicant proposes Missouri, a bank holding company within the meaning to issue preferred stock to the former controlling of the Bank Holding Company Act (“Act”), has shareholders of Bank, and to cause Bank to issue $1.1 applied pursuant to section 4(c)(8) of the Act million in capital, consisting of $500 thousand in (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(1) of the common stock and the remaining $600 thousand either Board’s Regulation Y (12 C.F.R. § 225.4(b)(1)), to in the form of capital notes or preferred stock. After engage de novo, through its subsidiary, Redbud Insur­ considering Applicant’s proposal and possible varia­ ance Agency, Inc. (“Agency”), in the sale of property tions in Bank’s asset growth and earnings capabilities, and casualty insurance directly related to extensions it is the Board’s judgment that Applicant would lack of credit by Applicant’s banking subsidiaries in Mis­ sufficient flexibility to service its debt, maintain ade­ souri. Such nonbank activities have been determined quate capital in Bank, and meet any unforeseen prob­ by the Board to be closely related to banking and lems that might arise at Bank. Accordingly, the Board therefore permissible for bank holding companies is of the opinion that the considerations relating to (12 C.F.R. § 225.4(a)(9)). financial resources and future prospects of Applicant Notice of the application, affording opportunity for and Bank weigh against approval of the application. interested persons to submit comments and views on Managerial resources of Applicant and Bank are gen­ the public interest factors, has been duly published. 45 erally satisfactory and would be consistent with ap­ Federal Register 65308 (1980). The time for filing proval. comments and views has expired, and the application No significant changes in the services offered by and all comments received, including those received Bank are expected to follow from consummation of from the Independent Insurance Agents of America, the proposed transaction. Consequently, convenience Inc. and the Independent Insurance Agents of Missou­ and needs factors are consistent with, but lend no ri (“Protestants”), have been considered. weight toward, approval of this application. Applicant is the second largest banking organization On the basis of the circumstances concerning this in Missouri. Through its 20 subsidiary banks located application, the Board concludes that the banking statewide, Applicant holds $2.6 billion in combined considerations involved in this proposal present ad­ total deposits, representing 10.3 percent of total com­ verse factors bearing upon the financial resources and mercial bank deposits in the state.1 Applicant pro­ future prospects of Applicant and Bank. Such adverse poses to sell property and casualty insurance through factors are not outweighed by any procompetitive its subsidiary, Redbud Insurance Agency, Inc., at 52 effects or by benefits to the convenience and needs of banking offices of Applicant located throughout Mis­ the community. Accordingly, it is the Board’s judg­ souri. After credit has been granted, Applicant’s lend­ ment that approval of the application would not be in ing officers will advise the customer that Applicant’s the public interest and the application should be insurance agency offers insurance coverage and, after denied. On the basis of the facts of record, the application is denied for the reasons summarized above. By order of the Board of Governors, effective 1. Deposit data are as of December 31, 1979, and reflect holding May 14, 1981. company acquisitions approved through September 15, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 Federal Reserve Bulletin □ June 1981 obtaining the borrower’s consent to obtain insurance insurance and has found such allegations to be unwar­ through Applicant, will provide Redbud Insurance ranted.4 Moreover, at the time the activity of selling Agency, Inc. with sufficient information to make the credit related insurance was added to the list of offer of insurance coverage to the customer. permissible activities for bank holding companies, the Section 4(c)(8) of the Act provides that the Board Board determined that, absent unusual circumstances may approve a bank holding company’s application to associated with a particular application, there are as a engage in a nonbanking activity only after the Board general matter no significant adverse effects, such as has determined that the proposed activity is so closely voluntary tying, inherent in the performance of this related to banking as to be a proper incident thereto. activity by a bank holding company on a de novo The Board has determined by regulation that the sale basis. With regard to this application, Applicant has as agent of credit-related insurance is a permissible made certain commitments that eliminate any possibil­ nonbank activity. This determination was affirmed in ity of coercive or voluntary tying as an adverse effect. Alabama Association on Insurance Agents v. Board of Specifically, Applicant has committed to observe sec­ Governors.2 tion 106 of the Bank Holding Company Act, 12 U.S.C. To approve an application under section 4(c)(8) of § 1971-78, and section 225.4(c) of the Board’s Regula­ the Act, the Board must also determine that the tion Y, 12 C.F.R. § 225.4(c), which prohibit coercive performance of the proposed activity by a nonbank tie-in arrangements. Applicant also has committed that subsidiary of a bank holding company can reasonably it will inform credit customers that insurance is avail­ be expected to produce benefits to the public such as able from the subsidiary only after the customer has greater convenience, increased competition, or gains been advised that credit has been granted. Applicant in efficiency, that outweigh possible adverse effects, has further committed that it will advise each customer such as undue concentration or resources, decreased in writing that the customer may choose the source of or unfair competition, conflicts of interests, or un­ any insurance. sound banking practices. Consummation of this pro­ The possibility of voluntary tying also is significant­ posal will add an additional competitor to the market ly reduced by the number of credit alternatives in the for property and casualty insurance because Applicant relevant markets. There are 3 or more banking organi­ seeks to expand its insurance activities de novo. zations in all of the 14 markets in which Applicant Because de novo expansion provides an additional competes, as well as a number of other financial source of competition, the Board views such expan­ intermediaries, such as savings and loan associations sion as being procompetitive in the absence of evi­ and credit unions.5 Moreover, Applicant does not hold dence to the contrary.3 Moreover, Applicant has com­ more than 22 percent of total commercial bank depos­ mitted to offer insurance at the lowest practicable cost its in any of Missouri’s 5 major urban areas, and to the customer, which is regarded as a commitment to Applicant does not appear to be the dominant organi­ offer the lowest practicable total cost (including the zation in any of these markets. cost of billing), in relation to policy benefits. Accord­ It has been determined that consummation of this ingly, the de novo nature of this proposal and Appli­ proposal as described herein cannot reasonably be cant’s commitment to offer insurance at the lowest expected to produce any undue concentration of re­ practicable cost to the customer represent clear public sources, decreased or unfair competition, conflicts of benefits. Protestants assert that Applicant’s proposal would result in adverse effects that are “inherent in bank 4. Virginia National Bankshares, Inc., 66 Federal Reserve Bul­ holding company sales of insurance in conjunction letin 668 (1980); Mercantile Bancorporation, Inc., 66 Federal Reserve Bulletin 799 (1980). In Virginia National, the Board also with extensions of credit.” The Board has considered considered and rejected several other arguments that Protestant, similar general allegations of adverse effects in con­ Independent Insurance Agents of America, routinely advances before nection with other applications by bank holding com­ the Board and the courts. It appears unnecessary to repeat the Board’s reasoning on these points, and this order adopts that reason­ panies to engage in the sale of property and casualty ing. Protestants’ assertion that Applicant has understated its projections of the net earnings of Redbud Insurance Agency, Inc. resulting from its insurance sales presumably reflects Protestants’ concern that Applicant would take away some of the market share of independent 2. 533 F.2d 224 (5th Cir. 1976), modified on rehearing, 558 F.2d 729 insurance agents. Yet “that kind of impact is only the obverse of the (1977), cert, denied, 435 U.S. 904 (1978). coin in competition,” and does not require a hearing. Connecticut 3. BankAmerica Corporation (Decimus Corporation), 66 Federal Bankers Ass’n v. Board of Governors, 627 F.2d at 256. Reserve Bulletin 511 (1980); Citicorp (Person to Person), 65 5. Eleven of these 14 markets have 5 or more banks. In the 2 Federal Reserve Bulletin 507 (1979). The Court of Appeals for Missouri markets that have total bank deposits of $1 billion or more the District of Columbia Circuit affirmed the Board’s conclusions (St. Louis and Kansas City), Applicant faces competition from, regarding the procompetitive nature of de novo entry in Connecticut respectively, 83 and 99 other banking organizations located in the Bankers Assn. v. Board of Governors, 627 F.2d 245 (D.C. Cir. 1980). market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 517 interests, unsound banking practices or other adverse acting pursuant to delegated authority for the Board of effects. Public benefits can reasonably be expected to Governors of the Federal Reserve System, effective result from this proposal, and they are easily sufficient May 15, 1981. to outweigh any possible adverse effects, which have been found, in any event, to be unlikely to occur. (Signed) D. M ichael M anies, Indeed, the de novo nature of this proposal alone is [seal] Assistant Secretary of the Board. sufficient to outweigh the adverse effects alleged by Protestants. Accordingly, in view of the foregoing and the Board’s order in Virginia National Bankshares Seafirst Corporation, Inc., supra, it has been determined that Protestants’ Seattle, W ashington comments are without merit. Although Protestants request a hearing with regard Order Approving Issuance and Sale of to this application, Protestants advance the same Travelers Checks arguments to justify this request that the Board reject­ ed in Virginia National. As was the case in that Seafirst Corporation, Seattle, Washington, a bank application, there are no material issues of fact in holding company within the meaning of the Bank dispute regarding Applicant’s proposal. No reliance Holding Company Act (“Act”), has applied for the has been placed on Applicant’s claims that greater Board’s approval under section 4(c)(8) of the Act convenience or efficiency will be associated with its (12 U.S.C. § 1843(c)(8)), to engage de novo through a proposal. With regard to Protestants’ assertions re­ wholly-owned subsidiary, Seafirst Payment Services garding voluntary tying and the price at which Appli­ Corporation (“Corporation”), in the issuance and sale cant will sell insurance, the Board is prepared to of travelers checks. ensure Applicant’s compliance with the commitments The sale at retail of travelers checks as proposed by it made to the Board. There is nothing in Applicant’s Applicant is included on the Board’s list of permissible prior conduct that casts doubt on Applicant’s commit­ activities for bank holding companies in Regulation Y ments, and these commitments eliminate any need for (12 C.F.R. § 225.4(a)(13)). The issuance of travelers a hearing in this regard. Finally, Applicant has assured checks has not yet been added to the list of permissible the Board that it has no intention of selling any type of nonbank activities; however, in connection with prior insurance that is not permissible for bank holding applications, the Board has determined by order that companies, and there appears to be no need for a the activity of issuing travelers checks is closely hearing regarding the scope of Applicant’s proposal related to banking and would be in the public interest. since its application is sufficiently specific to put The Chase Manhattan Corporation, 66 Federal Re­ competitors and the public on notice regarding its serve B ulletin 983 (1980); First Chicago Corpora­ intention. On this basis, it is concluded that a formal tion, 65 Federal Reserve B u lletin 937 (1979); hearing is unwarranted. Citicorp, 65 Federal Reserve B u lletin 666 (1979); Based upon the foregoing and other considerations Republic of Texas Corporation 62 Federal Reserve reflected in the record, it has been determined that the B ulletin 630 (1976); BankAmerica Corporation, 59 balance of the public interest factors that are required Federal Reserve B u lletin 544 (1973). In these to be considered under section 4(c)(8) of the Act is earlier decisions, the Board noted that banks have, in favorable. Accordingly, the application is hereby ap­ fact, engaged in the issuance of travelers checks and proved. This determination is subject to the conditions have engaged in activities that are operationally and set forth in section 225.4(c) of Regulation Y, and to the functionally similar to the proposed activity. Accord­ Board’s authority to require such modification or ingly, the Board has determined that the issuing of termination of the activities of a holding company or travelers checks in the manner proposed by Applicant any of its subsidiaries as the Board finds necessary to is closely related to banking.1 assure compliance with the provisions and purposes of Notice of the application, affording interested per­ the Act and the Board’s regulations and orders issued sons an opportunity to submit comments on the public thereunder, or to prevent evasion thereof. interest factors, has been duly published. 46 Federal The transaction shall be made no later than three Register 17883 (1981). The time for filing comments months after the effective date of this Order, unless has expired, and the Board has considered the applica­ such period is extended for good cause by the Board, tion and all comments received in light of the public or by the Secretary of the Board, pursuant to delegat­ interest factors set forth in section 4(c)(8) of the Act. ed authority. In any event, the transaction shall be con­ summated within one year of the date of this Order. 1. See National Courier Association v. Board of Governors of the By order of the Acting Secretary of the Board, Federal Reserve System, 516 F2d 1229 (D.C. Cir. 1975). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 Federal Reserve Bulletin □ June 1981 Applicant is a one-bank holding company by virtue By order of the Board of Governors, effective of its control of Seattle First National Bank, Seattle, May 27, 1981. Washington (deposits of $6.4 billion) (“Bank”), the largest bank in the state, controlling 36.9 percent of the Voting for this action: Vice Chairman Schultz and Gover­ state’s deposits in commercial banks.2 Applicant also nors Wallich, Partee, Teeters, Rice, and Gramley. Absent engages in mortgage and industrial banking, commer­ and not voting: Chairman Volcker. cial lending and leasing, construction finance activities and credit related insurance activities. (Signed) James M cAfee, Applicant proposes to issue and sell MasterCard [seal] Assistant Secretary of the Board. Travelers Cheques through Corporation. Initially, these checks would be sold through Bank, although within one year Applicant intends to commence distri­ Orders Issued Under Section 2 of Bank H olding bution of these checks through agents to be located in Com pany A ct Washington, Oregon, Idaho, Montana, Alaska, and Colorado. The selling agents will sell the travelers Republic of Texas Corporation, checks to the public on behalf of Applicant. Dallas, Texas The travelers check industry is highly concentrated, with the largest issuer, American Express, accounting Order Granting Determination Under the Bank for 50 percent of the market. The Board has previously Holding Company Act determined, in view of the limited number of competi­ tors currently servicing this industry, that it would be Republic of Texas Corporation, Dallas, Texas (“Re­ in the public interest for bank holding companies public”), a bank holding company within the meaning having the capability, to engage in the issuance of of section 2(a) of the Bank Holding Company Act of travelers checks. Applicant’s entry into this industry 1956, as amended, 12 U.S.C. § 1841(a), has requested should serve to enhance competition by providing this a determination, pursuant to the provisions of section service in the markets to be served by Applicant. 2(g)(3) of the Bank Holding Company Act of 1956, Accordingly, it is the Board’s view that approval of 12 U.S.C. § 1841(g)(3) (the “Act”), that Republic is this application would produce benefits to the public not in fact capable of controlling Hillcrest State Bank and would be in the public interest. Furthermore, of University Park (“Hillcrest Bank”) or Mr. Cam F. there is no evidence in the record to indicate that Dowell, the transferee of Hillcrest Bank’s shares, Applicant’s engaging in this activity would lead to any notwithstanding the fact that Mr. Dowell is indebted to undue concentration of resources, unfair competition, Republic National Bank of Dallas, Dallas, Texas (“Re­ conflicts of interests, unsound banking practices, or public Bank”), a subsidiary of Republic. other adverse effects. Under the provisions of section 2(g)(3) of the Act, Based upon the foregoing and other considerations shares transferred after January 1, 1966, by a bank reflected in the record, the Board has determined that holding company to a transferee that is indebted to the the balance of the public interest factors the Board is transferor or has one or more officers, directors, required to consider under section 4(c)(8) is favorable. trustees, or beneficiaries in common with or subject to Accordingly, the application is hereby approved. This control by the transferor, are deemed to be indirectly determination is subject to the conditions set forth in owned or controlled by the transferor unless the section 225.4(c) of Regulation Y and to the Board’s Board, after opportunity for hearing, determines that authority to require such modification or termination the transferor is not in fact capable of controlling the of the activities of a holding company or any of its transferee. subsidiaries as the Board finds necessary to assure Republic has submitted to the Board evidence to compliance with the provisions and purposes of the demonstrate it is not in fact capable of controlling Act and the Board’s regulations and orders issued Mr. Dowell, or Hillcrest Bank, and the Board has thereunder, or to prevent evasion thereof. received no contradictory evidence. It is hereby deter­ The transaction shall be made not later than three mined that Republic is not in fact capable of control­ months after the effective date of this Order, unless ling either Mr. Dowell, or Hillcrest Bank. This deter­ such period is extended for good cause by the Board or mination is based upon the evidence of record in this by the Federal Reserve Bank of San Francisco. matter that reflects the following: In connection with his purchase of Hillcrest Bank shares, Mr. Dowell obtained a loan secured by the shares of Hillcrest Bank, from Texas Commerce 2. All banking data are as of December 31, 1980. Bank, N.A. (“Commerce Bank”), an unaffiliated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 519 banking organization. Republic National Bank of Dal­ Reserve Enterprises, Inc., las (“Republic Bank”), one of Republic’s banking Plenty wood, M ontana subsidiaries, purchased a non-recourse participation in this loan from Commerce Bank. Republic Bank’s right Order Granting Determination Under the Bank under the participation agreement is limited solely to Holding Company Act the receipt of its pro rata share of the payments. Commerce Bank has sole responsibility for the super­ Reserve Enterprises, Inc., Plentywood, Montana vision of the loan agreement with Mr. Dowell.1 In (“Reserve”), a registered bank holding company with­ addition, as a result of an unrelated transaction, in the meaning of section 2(a) of the Bank Holding Mr. Dowell is directly obligated to Republic Bank. Company Act of 1956, as amended (“BHC Act”) It appears that the sale of Hillcrest Bank shares by (12 U.S.C. § 1841(a)), by virtue of its ownership of Republic to Mr. Dowell was the result of arm’s length more than 25 percent of the outstanding voting shares negotiations, and that the terms governing the debt of Montana National Bank of Plentywood, Plentyrelationship between Mr. Dowell and Republic are wood, Montana (“Bank”), has requested a determina­ usual ones limited to those reasonably necessary to tion, pursuant to the provisions of section 2(g)(3) of the protect Republic. Mr. Dowell’s purchase of these BHC Act (12 U.S.C. § 1841(g)(3)), that Reserve is not shares appears to have been an investment for his own in fact capable of controlling A-A Travel Agency, Inc., account and not as a representative or nominee of any Plentywood, Montana (“Agency”), a corporation to other party.2 Mr. Dowell is not an officer, director, or whom it transferred its travel agency assets, notwith­ shareholder of Republic, or any of its subsidiaries. standing the facts that Mr. D. S. Amundson continues Republic’s Board of Directors has adopted a resolu­ to serve as an officer and director of both Reserve and tion that it does not, and will not attempt to exert Agency, and Agency is indebted to Reserve. control over Hillcrest Bank, or Mr. Dowell. In addi­ Under the provisions of section 2(g)(3) of the BHC tion, Mr. Dowell has filed an affidavit to the effect that Act, shares transferred after January 1, 1966, by any he is not and will not be controlled by Republic, and bank holding company to a transferee that is indebted that he will not represent their interests in his manage­ to the transferor or has one or more officers, directors, ment of Hillcrest Bank. Furthermore, although trustees, or beneficiaries in common with or subject to Mr. Dowell’s indebtedness to Republic is substantial, control by the transferor are deemed to be indirectly from the record it appears that he has sufficient owned or controlled by the transferor unless the personal resources to repay the indebtedness without Board, after opportunity for a hearing, determines that being unduly influenced by Republic in his manage­ the transferor is not in fact capable of controlling the ment of Hillcrest Bank. transferee. Accordingly, it is ordered that the request of Repub­ It is hereby determined that Reserve is not in fact lic for a determination pursuant to section 2(g)(3) is capable of controlling Agency. This determination is granted. This determination is based upon representa­ based upon the evidence of record in this matter, tions made to the Board by Republic and Mr. Dowell. including the following facts. Under section 4(a)(2) of In the event that the Board should hereafter determine the BHC Act, Reserve had until December 31, 1980, to that facts material to its determination are otherwise apply to retain its nonbanking interests or, alternative­ than as represented or that Republic or Mr. Dowell has ly, to divest of such interests. Accordingly, pursuant failed to disclose to the Board other material facts, this to a plan to divest its nonbanking interest, Reserve determination may be revoked, and any other change sold its travel service assets to Agency and presently in the facts and circumstances relied upon in making has no managing or voting interest with respect to such this determination could result in the Board’s recon­ assets. A majority of Reserve’s shares are owned by sideration of this determination. Mr. Amundson, who exerts a dominant influence over By order of the Board of Governors, acting through the management of Reserve through his positions as its General Counsel, pursuant to delegated authority president and director of Reserve, as well as president (12 C.F.R. § 265.2(b)(1)), effective May 26, 1981. and chairman of Bank. Also, as there are no cumula­ tive voting rights attached to the shares of Reserve, it (Signed) James M cAfee, appears that Mr. Amundson may control the election [seal] Assistant Secretary of the Board. of all the directors of Reserve’s board of directors. In addition, Mr. Amundson has the right of first refusal to 1. In the unlikely event of default by Mr. Dowell, the shares of Republic, Mr. Dowell also purchased Hillcrest Bank shares from the Hillcrest Bank would revert to Commerce Bank, not Republic Bank. Hoblitzelle Foundation, and from Southland Life Insurance Compa- 2. In addition to the shares of Hillcrest Bank purchased from ny. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 Federal Reserve Bulletin □ June 1981 purchase his pro rata share of the remaining outstand­ In connection with this request, the following infor­ ing shares. No other shareholder owns more than five mation is deemed relevant for purposes of issuing the percent of Reserve’s voting shares. While Agency is requested certification.1 wholly-owned and operated by Mr. Amundson and his 1. Effective November 25, 1980, the Board issued a wife and daughter, the transfer of the travel assets to prior certification pursuant to section 6158(a) of the agency does not appear to have been intended as a Code with respect to the proposed sale by South­ means for perpetuating Reserve’s control over the eastern of 19,344.5 shares of First National Bank of travel assets. Indeed, Reserve has represented that McDonough (“Bank”), McDonough, Georgia, then Agency was operated as a service to the community held by Southeastern to Trust Company of Georgia, and, therefore, was not easily marketable. From the Atlanta, Georgia (“Buyer”), a registered bank hold­ record in this matter, it appears that control over ing company. Reserve and the transferred travel service assets rests 2. The Board’s Order certified that: with Mr. Amundson and his family as individuals. A. Southeastern is a qualified bank holding cor­ Further, there is no evidence that Reserve controls or poration within the meaning of section 1103(b) of in fact is capable of controlling Agency in its capacity the Code, and satisfies the requirements of that as transferee of the travel service assets, or otherwise. subsection; Accordingly, it is ordered that the request of Re­ B. the 19,344.5 shares of Bank that Southeastern serve for a determination pursuant to section 2(g)(3) be proposes to sell to Buyer are all or part of the and hereby is granted. This determination is based property by reason of which Southeastern con­ upon the representations made to the Board by Re­ trols (within the meaning of section 2(a) of the serve and Mr. Amundson. In the event the Board (Bank Holding Company Act) a bank or a bank should hereafter determine that facts material to this holding company; and determination are otherwise than as represented, or C. the sale of the shares of Bank is necessary or that Reserve or Mr. Amundson has failed to disclose appropriate to effectuate the policies of the Bank to the Board other material facts, this determination Holding Company Act. may be revoked, and any change in the facts or 3. On December 30, 1980, Southeastern sold to circumstances relied upon in making this determina­ Buyer its 19,344.5 shares of Bank. tion could result in a reconsideration of the determina­ 4. The prior certification issued on November 25, tion made herein. 1980, was granted on the condition that no person By order of the Board of Governors, acting through holding an office or position as a director or officer its General Counsel pursuant to delegated authority of Southeastern will hold any such office or position (12 C.F.R. § 265.2(b)(1)), effective May 1, 1981. with Bank or Buyers, and that Buyer would not be indebted to Southeastern. Southeastern has repre­ (Signed) James M cAfee, sented that all such interlocking relationships be­ [seal] Assistant Secretary of the Board. tween it and Bank were terminated, effective December 30, 1980, and that Buyer is not indebted to Southeastern. Certifications Pursuant to the Bank H olding 5. Southeastern does not directly or indirectly own, Com pany Tax A ct of 1976 control or have power to vote 5 percent or more of any class of voting securities of any bank or any Southeastern Capital Corporation, company that controls a bank. Atlanta, Georgia 6. Southeastern has represented that it does not control in any manner the election of majority of Final Certification Pursuant to the Bank Holding directors, or exercise a controlling influence over Company Tax Act of 1976 the management or policies of Bank or any other bank or any company that controls a bank. Southeastern Capital Corporation (“Southeastern”), Atlanta, Georgia, has requested a final certification On the basis of the foregoing information it is hereby pursuant to section 6158(c)(2) of the Internal Revenue certified that Southeastern has (before the expiration Code (“Code”), as amended by section 3(a) of the Bank Holding Company Tax Act of 1976, that it has (before the expiration of the period prohibited proper­ ty is permitted under the Bank Holding Company Act 1. This information derives from Southeastern’s correspondence with the Board concerning its request for this certification, Southeast­ (12 U.S.C. § 1842 et seq.) to be held by a bank holding ern’s Registration Statement filed with the Board pursuant to the Bank company) ceased to be a bank holding company. Holding Company Act, and other records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 521 of the period prohibited property is permitted under within the meaning of section 1103(b) of the Code, the Bank Holding Company Act to be held by a bank and satisfies the requirements of that subsection; holding company) ceased to be a bank holding compa­ B. The 400 shares of Bank that NIA proposes to ny, and has disposed of all its banking property. distribute to its shareholders are all or part of the This certification is based upon the representations property by reason of which NIA controls (within made to the Board by Southeastern and upon the facts the meaning of section 2(a) of the Bank Holding set forth above. In the event the Board should deter­ Company Act) a bank or a bank holding company; mine that facts material to this certification are other­ and wise than as represented by Southeastern, or that C. The distribution of the shares of Bank is Southeastern has failed to disclose to the Board other necessary or appropriate to effectuate the policies material facts, it may revoke this certification. of the Bank Holding Company Act. By order of the Board of Governors, acting through 3. On December 17, 1980, NIA distributed to its its General Counsel, pursuant to delegated authority shareholders on a pro rata basis the 400 shares of (12 C.F.R. § 265.2(b)(3)), effective May 13, 1981. Bank. 4. The prior certification issued on October 29, (Signed) James M cAfee, 1980, was granted on the condition that no person [seal] Assistant Secretary of the Board. holding an office or position as a director or officer of NIA as a director, officer, policy-making employ­ ee, or management consultant, or who performs National Insurance A gency, Inc., (directly or through an agent, representative, or a Pratt, Kansas nominee) functions comparable to those normally associated with such office or position, will hold any Final Certification Pursuant to the Bank Holding such office or position or perform any such function Company Tax Act of 1976 with Bank. NIA has represented that all such inter­ locking relationships between it and Bank were National Insurance Agency, Inc. (“NIA”), Pratt, terminated, effective December 10, 1980. Kansas, has requested a final certification pursuant to 5. Principals of NIA and Bank have submitted section 1101(e) of the Internal Revenue Code affidavits stating that they will vote the shares of (“Code”), as amended by section 2(a) of the Bank Bank distributed to them only in their individual Holding Company Tax Act of 1976, that it has (before capacities and not on behalf of NIA. the expiration of the period prohibited property is permitted under the Bank Holding Company Act On the basis of the foregoing information, it is (12 U.S.C. § 1842 et seq.) to be held by a bank holding hereby certified that NIA has (before the expiration of company) ceased to be a bank holding company. the period prohibited property is permitted under the In connection with this request, the following infor­ Bank Holding Company Act to be held by a bank mation is deemed relevant for purposes of issuing the holding company) ceased to be a bank holding com­ requested certification.1 pany. 1. Effective October 29, 1980, the Board issued a This certification is based upon the representations prior certification pursuant to section 1101(b) of the and commitments made to the Board by NIA and upon Code with respect to the proposed divestiture by the facts set forth above. In the event the Board should NIA of 400 shares of The Coats State Bank determine that facts material to this certification are (“Bank”), Pratt, Kansas, then held by NIA, otherwise than as represented by NIA, or that NIA through the pro rata distribution of such shares to has failed to disclose to the Board other material facts NIA’s shareholders. or failed to fulfill any commitment, it may revoke this 2. The Board’s Order certified that: certification. A. NIA is a qualified bank holding corporation By order of the Board of Governors, acting through its General Counsel, pursuant to delegated authority (12 C.F.R. § 265.2(b)(3)), effective May 13, 1981. 1. This information derives from NIA’s correspondence with the Board concerning its request for this certification, NIA’s Registration (Signed) James McAfee, Statement filed with the Board pursuant to the Bank Holding Compa­ ny Act, and other records of the Board. [seal] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 Federal Reserve Bulletin □ June 1981 Orders Approving A pplications Under the Bank H olding Com pany A ct and Bank M erger A ct By the Board of Governors During May 1981, 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 Applicant Bank(s) (effective date) First Clarion Bancorporation, The First National Bank of May 12, 1981 Clarion, Iowa Clarion, Clarion, Iowa Merchantile Bankshares Corporation, St. Michaels Bank, May 28, 1981 Baltimore, Maryland St. Michaels, Maryland Merchantile Bankshares Corporation, The Forest Hill State Bank, May 28, 1981 Baltimore, Maryland Forest Hill, Maryland Rice Lake Bancorp, Inc., Dairy State Bank, May 4, 1981 Rice Lake, Wisconsin Rice Lake, Wisconsin Section 4 Nonbanking Effective Applicant company date (or activity) National Bank of Canada, to engage in mortgage banking ac­ May 27, 1981 Montreal, Quebec, Canada tivities through a Seattle, Wash­ ington office of Laurentide Fi­ nancial Realty Corporation Otto Bremer Foundation, to retain the assets and offices of May 28, 1981 St. Paul, Minnesota McCarty Insurance Agency, and Otto Bremer Company, Washburn Agency St. Paul, Minnesota Utah Bancorporation, Holladay Thrift and Loan, May 4, 1981 Salt Lake City, Utah Salt Lake City, Utah Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 523 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 Acadiana Bancshares, Inc., American Bank & Trust Company, Atlanta April 30, 1981 Lafayette, Louisiana Lafayette, Louisiana Army National Bancshares, Inc., Army National Bank, Kansas City May 4, 1981 Fort Leavenworth, Kansas Fort Leavenworth, Kansas Auburn Bancshares, Inc., Auburn Savings Bank, Chicago May 4, 1981 Auburn, Iowa Auburn, Iowa Boone Bancorp, Inc., Boone State Bank, Chicago May 5, 1981 Belvidere, Illinois Belvidere, Illinois Banks of Iowa, Inc., Fort Madison Bank & Trust Co., Chicago May 11, 1981 Des Moines, Iowa Fort Madison, Iowa Camden County Bancshares, Inc., Camden County Bank, St. Louis May 15, 1981 Camdenton, Missouri Camdenton, Missouri Campbell State Company, Campbell State Bank, Kansas City April 20, 1981 Campbell, Nebraska Campbell, Nebraska Citizens Banking Corporation, Citizens Commercial & Savings Chicago May 7, 1981 Flint, Michigan Bank, Flint, Michigan Citizens Greenville Bancshares, The Citizens National Bank of Dallas May 11, 1981 Inc., Greenville, Greenville, Texas Greenville, Texas East Texas Bancshares, Inc., Peoples National Bank of Sulphur Dallas May 5, 1981 Tyler, Texas Springs, Sulphur Springs, Texas Community Bancshares, Inc., The Vinton County National Bank Cleveland May 19, 1981 McArthur, Ohio of McArthur, McArthur, Ohio Equality Bankshares, The Equality State Bank, Kansas City May 8, 1981 Cheyenne, Wyoming Cheyenne, Wyoming Financial Bancshares, Inc., Chippewa Bank, St. Louis May 4, 1981 St. Louis, Missouri St. Louis, Missouri Citizens Bank of Dexter, Dexter, Missouri Schmid Brothers Investment Com­ pany, Inc., St. Louis, Missouri First Baird Bancshares, Inc., The First National Bank of Baird, Dallas May 28, 1981 Baird, Texas Baird, Texas First Canadian Bancorp, Inc., The First National Bank of Canadi­ Dallas May 8, 1981 Canadian, Texas an, Canadian, Texas First Cary-Grove Corp., First Security Bank of Cary-Grove, Chicago April 28, 1981 Cary, Illinois Cary, Illinois First DeKalb Bancshares, Inc., First National Bank in DeKalb, Chicago May 11, 1981 DeKalb, Illinois DeKalb, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 Federal Reserve Bulletin □ June 1981 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First Delta Corporation, First National Bank of Phillips St. Louis May 22, 1981 Helena, Arkansas County, Helena, Arkansas First Glen Bancorp, Inc., The First National Bank of Glens New York May 26, 1981 Glens Falls, New York Falls, Glens Falls, New York First Jersey National Corporation, The Bank of New Jersey, N.A., New York May 29, 1981 Jersey City, New Jersey Moorestown, New Jersey The First National Bancorporation, The First National Bank of the Kansas City April 29, 1981 Inc. Southwest, Denver, Colorado Jefferson County, Colorado First of Huron Corp., First National Bank of Bad Axe, Chicago May 4, 1981 Bad Axe, Michigan Bad Axe, Michigan First Picher Bancshares, Inc., First State Bank, Kansas City April 27, 1981 Picher, Oklahoma Picher, Oklahoma First South Bankcorp, Farmers and Merchants Bank, Atlanta May 7, 1981 Columbus, Georgia Pine Mountain, Georgia Fort Cobb Bancshares, Inc., Washita Valley Bank, Kansas City May 8, 1981 Fort Cobb, Oklahoma Fort Cobb, Oklahoma Fox Valley Bancorp, Inc., Bank of Montgomery, Chicago May 4, 1981 Montgomery, Illinois Montgomery, Illinois Keewatin Bancorporation, Inc., The First National Bank of Keewa­ Minneapolis May 22, 1981 Keewatin, Minnesota tin, Keewatin Minesota Lakeland Bancshares, Inc., Lakeland State Bank, St. Louis May 4, 1981 Sunrise Beach, Missouri Sunrise Beach, Missouri Lakeville Financial Services, Inc., First Lakeville State Bank, Minneapolis May 28, 1981 Lakeville, Minnesota Lakeville, Minnesota Leavcorp, Inc., The Leavenworth National Bank Kansas City May 1, 1981 Leavenworth, Kansas and Trust Company, Leavenworth, Kansas Niceville Bankshares, First National Bank of Niceville, Atlanta May 7, 1981 Niceville, Florida Niceville, Florida National Bancshares Corporation Republic National Bank of Austin, Dallas May 28, 1981 of Texas, Austin, Texas San Antonio, Texas North Central Bancorporation, North Iowa State Bank, Chicago May 8, 1981 Mason City, Iowa Belmond, Iowa Orchard Valley Financial Corp., The First State Bank of Hotchkiss, Kansas City April 23, 1981 Englewood, Colorado Hotchkiss, Colorado Peoples Bancshares, Inc., The Peoples Bank, Atlanta May 4, 1981 Pell City, Alabama Pell City, Alabama Perham State Bancshares, Perham State Bank, Minneapolis May 22, 1981 Perham, Minnesota Perham, Minnesota Pike Bancorp, Inc., Farmers State Bank, St. Louis May 8, 1981 Pittsfield, Illinois Pittsfield, Illinois Red Oak Bancshares, Inc., Red Oak State Bank, Dallas May 20, 1981 Red Oak, Texas Red Oak, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 525 Section 3—Continued Reserve Eflfective Applicant Bank(s) Bank date Security BancShares of Montana, First Citizens Bank of Miles City, Minneapolis May 27, 1981 Inc., Miles City, Montana Billings, Montana Tomball Bancshares, Inc., First Bank & Trust, Dallas May 5, 1981 Tomball, Texas Tomball, Texas United Bancshares, Inc., United Bank of Chattanooga, Atlanta May 26, 1981 Chattanooga, Tennessee Chattanooga, Tennessee United Bankshares, Inc., United National Bank of Miami, Atlanta May 29, 1981 Miami, Florida Miami, Florida United Texas Financial Corpora­ First State Bank in Archer City, Dallas May 5, 1981 tion, Archer City, Texas Wichita Falls, Texas Zappco, Inc., Zapp National Bank of St. Cloud, Minneapolis May 22, 1981 St. Cloud, Minnesota St. Cloud, Minnesota Sections 3 and 4 Nonbanking Reserve Eflfective Applicant Bank(s) company Bank date (or activity) Gibbon Exchange Exchange Bank, to engage in the sale of Kansas City April 29, 1981 Company, Gibbon, Nebraska general insurance in Gibbon, Nebraska Gibbon Insurance a community of less Agency, than 5,000 population Gibbon, Nebraska Veblen Insurance Com­ The Bank of Veblen, to continue to engage Minneapolis May 21, 1981 pany, Inc., Veblen, South Da­ in general insurance Veblen, South kota activities in a town Dakota of less than 5,000 population Section 4 Nonbanking Eflfective Applicant company date (or activity) European American Bancorp, Dorman & Wilson, Inc., May 14, 1981 New York, New York White Plains, New York Philadelphia National Corporation, Mortgage Bankers Service Corporation, May 20, 1981 Philadelphia, Pennsylvania Monterey, California Continental Illinois Corporation, Drillamex, Inc., May 26, 1981 Chicago, Illinois New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 Federal Reserve Bulletin □ June 1981 Orders Approved Under Bank M erger A ct By the Board of Governors Reserve Effective Applicant Bank(s) Bank date Miles State Bank St. Michaels Bank May 28, 1981 St. Michaels, Maryland St. Michaels, Maryland Suisse State Bank The Forest Hill State Bank May 28, 1981 Forest Hill, Maryland Forest Hill, Maryland By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date First Virginia Bank of Roa­ First Virginia Bank—West, Richmond April 9, 1981 noke Valley, Narrows, Virginia Roanoke, Virginia GSB Bank, Gaylord State Bank, Chicago March 27, Gaylord, Michigan Gaylord, Michigan 1981 Pending Cases Involving the Board of Governors* *This list of pending cases does not include suits Securities Industry Association v. Board of Gover­ against the Federal Reserve Banks in which the Board nors, et al., filed October 1980, U.S.C.A. for the of Governors is not named a party. District of Columbia. A. G. Becker, Inc. v. Board of Governors, et al., filed Louis J. Roussel v. Board of Governors, filed May October 1980, U.S.D.C. for the District of Colum­ 1981, U.S.C.A. for the District of Columbia. bia. Wilshire Oil Company of Texas v. Board of Gover­ A. G. Becker, Inc. v. Board of Governors, et al., filed nors, et al., filed April 1981, U.S.C.A. for the Third October 1980, U.S.C.A. for the District of Colum­ Circuit. bia. People of the State of Arkansas v. Board of Gover­ Independent Insurance of America and Independent nors, et al., filed March 1981, U.S.C.A. for the Insurance Agents of Missouri v. Board of Gover­ Western District of Arkansas. nors, filed September 1980, U.S.C.A. for the Eighth First Bank & Trust Company v. Board of Governors, Circuit. filed February 1981, U.S.D.C. for the Eastern Dis­ Independent Insurance Agents of America and Inde­ trict of Kentucky. pendent Insurance Agents of Virginia v. Board of Ellis E. St. Rose & James H. Sibbet v. Board of Governors, filed September 1980, U.S.C.A. for the Governors, filed February 1981, U.S.D.C. for the Fourth Circuit. District of Columbia. Nebraska Bankers Association, et al. v. Board of Option Advisory Service, Inc. v. Board of Governors, Governors, et al., filed September 1980, U.S.D.C. et al., filed February 1981, U.S.C.A. for the Second for the District of Nebraska. Circuit. Republic of Texas Corporation v. Board of Governors, 9 to 5 Organization for Women Office Workers v. filed September 1980, U.S.C.A. for the Fifth Cir­ Board of Governors, filed December 1980, cuit. U.S.D.C. for the District of Massachusetts. A. G. Becker, Inc. v. Board of Governors, et al., filed Securities Industry Association v. Board of Gover­ August 1980, U.S.D.C. for the District of Columbia. nors, et al., filed October 1980, U.S.D.C. for the Otero Savings and Loan Association v. Board of District of Columbia. Governors, filed August 1980, U.S.D.C. for the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 527 Edwin F. Gordon v. Board of Governors, et al., filed County National Bancorporation and TGB Co. v. August 1980, U.S.C.A. for the Fifth Circuit. Board of Governors, filed September 1979, U.S. League of Savings Associations v. Depository U.S.C.A. for the Eighth Circuit. Institutions Deregulation Committee, et al., filed Donald W. Riegel, Jr. v. Federal Open Market Com­ June 1980, U.S.D.C. for the District of Columbia. mittee, filed July 1979, U.S.D.C. for the District of Berkovitz, et al. v. Government of Iran, et al., filed Columbia. June 1980, U.S.D.C. for the Northern District of Security Bancorp and Security National Bank v. California. Board of Governors, filed March 1978, U.S.C.A. for Mercantile Texas Corporation v. Board of Governors, the Ninth Circuit. filed May 1980, U.S.C.A. for the Fifth Circuit. Roberts Farms, Inc. v. Comptroller of the Currency, Corbin, Trustee v. United States, filed May 1980, et al., filed November 1975, U.S.D.C. for the South­ United States Court of Claims. ern District of California. Ulyssess S. Crockett v. United States, et al., filed David Merrill, et al. v. Federal Open Market Commit­ April 1980, U.S.D.C. for the Eastern District of tee, filed May 1975, U.S.D.C. for the District of North Carolina. Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al Financial and Business Statistics Contents Domestic Financial Statistics Weekly R eporting Commercial Banks A3 Monetary aggregates and interest rates Assets and liabilities A4 Reserves of depository institutions, reserve A 18 All reporting banks bank credit A 19 Banks with assets of $ 1 billion or more A5 Reserves and borrowings of depository A20 Banks in New York City institutions A21 Balance sheet memoranda A6 Federal funds and repurchase agreements of A22 Commercial and industrial loans large member banks A23 Gross demand deposits of individuals, partnerships, and corporations P olicy Instrum ents A7 Federal Reserve Bank interest rates Financial M arkets A8 Depository institutions reserve requirements A9 Maximum interest rates payable on time and A23 Commercial paper and bankers dollar savings deposits at federally insured institutions acceptances outstanding A 10 Federal Reserve open market transactions A24 Prime rate charged by banks on short-term business loans A24 Terms of lending at commercial banks Federal R eserve Banks A25 Interest rates in money and capital markets A26 Stock market—Selected statistics A ll Condition and Federal Reserve note statements A 12 Maturity distribution of loan and security A ll Savings institutions—Selected assets and holdings liabilities M onetary and Credit A ggregates Federal Finance A 12 Bank debits and deposit turnover A28 Federal fiscal and financing operations A 13 Money stock measures and components A29 U.S. budget receipts and outlays A 14 Aggregate reserves of depository institutions A30 Federal debt subject to statutory limitation and member bank deposits A30 Gross public debt of U.S. Treasury—Types and A 15 Loans and securities of all commercial banks ownership A31 U.S. government marketable securities— Ownership, by maturity Commercial Banks A32 U.S. government securities dealers— Transactions, positions, and financing A 16 Major nondeposit funds A33 Federal and federally sponsored credit A 17 Assets and liabilities, last Wednesday-of-month agencies—Debt outstanding series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin □ June 1981 Securities M arkets and A54 Foreign branches of U.S. banks—Balance sheet Corporate Finance data A56 Selected U.S. liabilities to foreign official A34 New security issues—State and local institutions governments and corporations A35 Open-end investment companies—Net sales and asset position Reported by Banks in the United States A35 Corporate profits and their distribution A36 Nonfinancial corporations—Assets and liabilities A56 Liabilities to and claims on foreigners A36 Total nonfarm business expenditures on new A57 Liabilities to foreigners plant and equipment A59 Banks’ own claims on foreigners A37 Domestic finance companies—Assets and A60 Banks’ own and domestic customers’ claims on liabilities; business credit foreigners A60 Banks’ own claims on unaffiliated foreigners A61 Claims on foreign countries—Combined Real Estate domestic offices and foreign branches A38 Mortgage markets A39 Mortgage debt outstanding Securities H oldings and Transactions A62 Marketable U.S. Treasury bonds and notes— Consumer Installm ent Credit Foreign holdings and transactions A62 Foreign official assets held at Federal Reserve A40 Total outstanding and net change Banks A41 Extensions and liquidations A63 Foreign transactions in securities Flow of F unds R eported by N onbanking B usiness Enterprises in the United States A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit A64 Liabilities to unaffiliated foreigners markets A65 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics Interest and Exchange R ates A44 Nonfinancial business activity—Selected A66 Discount rates of foreign central banks measures A66 Foreign short-term interest rates A44 Output, capacity, and capacity utilization A66 Foreign exchange rates A45 Labor force, employment, and unemployment A46 Industrial production—Indexes and gross value A48 Housing and construction A67 Guide to Tabular Presentation, A49 Consumer and producer prices Statistical Releases, and Special Tables A50 Gross national product and income A51 Personal income and saving Special Tables International Statistics A68 Assets and liabilities of U.S. branches and agen­ cies of foreign banks, December 31, 1980 A52 U.S. international transactions—Summary A53 U.S. foreign trade A53 U.S. reserve assets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1980 1981 1980 1981 Item Q2 Q3 Q4 Ql Dec. Jan. Feb. Mar. Apr. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions 1 Total............................................................. .4 6.7 16.5 2.0 1.6 -1.0 -14.6 11.9 .0 2 Required........................................................ .7 5.8 15.2 2.5 -.1 -.7 -3.9 5.9 7.2 3 Nonborrowed.................................................. 7.4 12.4 7.2 6.8 13.4 8.2 -12.4 21.9 -10.4 4 Monetary base2.............................................. 5.6 9.5 10.6 5.6 4.9 4.4 2.3 7.3 7.5 Concepts of money and liquid assets3 5 Ml-A............................................................ -4.8 11.5 8.0 -18.6 -11.7 -34.7 -21.5 -5.2 0.3 6 Ml-B.............................................................. -2.9 13.9 10.9 6.6 -9.8 13.7 8.7 11.2 18.7 7 M2................................................................. 5.4 15.7 8.1 8.4 1.2 9.3 9.8 15.6' 12.6 8 M3................................................................. 6.0 13.1 10.3 12.0 6.9 16.2 10.8 9.6' 9.8 9 L.................................................................... 6.8 9.9 10.7 12.4 9.5 16.8' 10.6' 4.3 n.a. Time and savings deposits Commercial banks 10 Total.......................................................... 10.8 5.8 12.9 15.4 18.9 21.0 7.7 0.6 5.6 11 Savings4....................................................... -21.4 22.9 1.7 -31.2 -38.8 -53.0 -23.0 -9.7 -2.1 12 Small-denomination time5........................... 33.2 2.9 15.4 30.0 35.4 41.4 14.2 16.0 4.2 13 Large-denomination time6........................... 12.6 -3.3 18.8 34.2 44.6 51.4 20.1 -10.1 12.0 14 Thrift institutions7........................................... 4.7 10.1 9.7 5.1' 10.0 3.9 1.3 1.5' -1.7 15 Total loans and securities at commercial banks8 .0 6.7 14.7 11.8 12.8 15.7 8.1 4.5 1980 1981 1981 Q2 Q3 Q4 Ql Feb. Apr. May Interest rates (levels, percent per annum) Short-term rates 16 Federal funds9........................................................................ 12.69 9.83 15.85 16.57 19.08 15.93 14.70 15.72 18.52 17 Discount window borrowing10................................................ 12.45 10.35 11.78 13.00 13.00 13.00 13.00 13.00 13.87 18 Treasury bills (3-month market yield)11.................................. 9.62 9.15 13.61 14.39 15.02 14.79 13.36 13.69 16.30 19 Commercial paper (3-month)11-12........................................... 11.18 9.65 15.26 15.34 16.58 15.49 13.94 14.56 17.56 Long-term rates Bonds 20 U.S. government13............................................................. 10.58 10.95 12.23 12.74 12.29 12.98 12.94 13.46 13.82 21 State and local government14.............................................. 7.95 8.58 9.59 9.97 9.66 10.10 10.16 10.62 10.78 22 Aaa utility (new issue)15..................................................... 11.77 12.20 13.49 14.45 14.12 14.90 14.71 15.68 15.81 23 Conventional mortgages16....................................................... 12.70 13.12 14.62 15.10 14.95 15.10 15.25 15.70 16.35 1. Unless otherwise noted, rates of change are calculated from average amounts 4. Savings deposits exclude NOW and ATS accounts at commercial banks. outstanding in preceding month or quarter. Growth rates for member bank reserves 5. Small-denomination time deposits are those issued in amounts of less than are adjusted for discontinuities in series that result from changes in Regulations D $100,000. and M. 6. Large-denomination time deposits are those issued in amounts of $100,000 or 2. Includes reserve balances at Federal Reserve Banks in the current week plus more. vault cash held two weeks earlier used to satisfy reserve requirements at all deposi­ 7. Savings and loan associations, mutual savings banks, and credit unions. tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks, 8. Changes calculated from figures shown in table 1.23. the vaults of depository institutions, arid surplus vault cash at depository institu­ 9. Averages of daily effective rates (average of the rates on a given date weighted tions. by the volume of transactions at those rates). 3. Ml-A: Averages of daily figures for (1) demand deposits at all commercial 10. Rate for the Federal Reserve Bank of New York. banks other than those due to domestic banks, the U.S. government, and foreign 11. Quoted on a bank-discount basis. banks and official institutions less cash items in the process of collection and Federal 12. Unweighted average of offering rates quoted by at least five dealers. Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. the vaults of commercial banks. 14. Bond Buyer series for 20 issues of mixed quality. Ml-B: Ml-A plus negotiable order of withdrawal and automated transfer service 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by accounts at banks and thrift institutions, credit union share draft accounts, and Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­ demand deposits at mutual savings banks. pilations. M2: Ml-B plus savings and small-denomination time deposits at all depository 16. Average rates on new commitments for conventional first mortgages on new institutions, overnight repurchase agreements at commercial banks, overnight Eu­ homes in primary markets, unweighted and rounded to nearest 5 basis points, from rodollars held by U.S. residents other than banks at Caribbean branches of member Dept, of Housing and Urban Development. banks, and money market mutual fund shares. M3: M2 plus large-denomination time deposits at all depository institutions and term RPs at commercial banks and savings and loan associations. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents other than banks, bankers acceptances, commercial paper, Treasury bills and other liquid Treasury securities, and U.S. savings bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics □ June 1981 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars End of Month figures Wednesday Figures Factors 1981 1981 Mar.p Apr.P MayP Apr. 15p Apr. 22p Apr. 29p May 6p May 13 p May 20 p May 21P Supplying Reserve Funds 1 Reserve Bank credit outstanding............... 140,919 143,648 144,065 143,214 146,123 144,630 145,009 143,559 145,178 143,990 2 U.S. government securities1............................. 118,098 120,008 119,937 119.785 122,542 119,678 120,593 118.191 121.587 120,112 3 Bought outright................................................. 118,033 119,468 119,819 119.785 120,841 119,095 120,071 118.191 121.587 120,112 65 540 118 1,701 583 522 5 Federal agency securities.................................... 8,751 8,775 8,738 8.720 8,839 8,835 8,800 8.720 8.720 8.720 6 Bought outright................................................. 8,734 8,720 8,720 8.720 8,720 8,720 8,720 8.720 8.720 8.720 17 55 18 119 115 80 35 69 20 156 112 89 9 Loans......................................................................... 1,004 1,343 2,154 1,142 864 2,278 2,471 1,734 1,975 2,923 10 Float ......................................................................... 2,925 3,195 3,085 3,419 3,439 3,244 2,508 4,295 3,044 2,371 11 Other Federal Reserve assets........................... 10,106 10,258 10,131 10,147 10,283 10,483 10,549 10,619 9,851 9,864 12 Gold stock.............................................................. 11,156 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 13 Special drawing rights certificate account... 2,653 2,818 2,818 2,818 2,818 2,818 2,818 2,818 2,818 2,818 14 Treasury currency outstanding........................ 13,506 13,538 13,544 13,516 13,524 13,530 13,610 13,539 13,543 13,551 Absorbing Reserve Funds 15 Currency in circulation........................................ 132,553 134,553 135,631 134,983 135,045 134,344 134,783 135,775 135,742 135,958 16 Treasury cash holdings........................................ 472 498 509 496 500 503 510 514 509 506 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury.............................................................. 3,045 3,353 3,210 3,033 3,969 3,536 4,175 3,299 3,119 2,830 18 Foreign................................................................ 319 411 342 347 393 580 300 555 274 258 19 Other..................................................................... 342 295 283 285 320 301 353 271 276 241 20 Other Federal Reserve liabilities and capital.............................................................. 4,782 4,875 4,784 4,893 4,897 4,927 4,728 4,711 4,938 4,884 21 Reserve accounts2................................................. 26,722 27,173 26,822 26,665 28,496 27,940 27,741 25,944 27,834 26,835 Monthly averages of daily figures Weekly averages of daily figures for week-ending 1981 1981 Mar. Apr. May Apr. 15 Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 Supplying Reserve Funds 22 Reserve bank credit outstanding.................... 141,272 143,452 140,540 146,497 150,722 156,848 145,828 143,456 148,131 141,814 23 U.S. government securities1............................. 118,043 119.687 118.311 120.036 126,168 122,897 120.787 116.292 122.239 117.193 24 Bought outright................................................. 117,666 119.687 118.311 120.036 120,465 120,037 120.787 116.292 122.239 117.193 25 Held under repurchase agreements........... 377 5,703 2,860 26 Federal agency securities.................................... 8,779 8.720 8.720 8.720 9,152 9,286 8.720 8.720 8.720 8.720 27 Bought outright................................................. 8,722 8.720 8.720 8.720 8,720 8,720 8.720 8.720 8.720 8.720 28 Held under repurchase agreements ......... 57 432 566 29 Acceptances ......................... 298 446 549 30 Loans......................................................................... 656 2,333 1,366 3,208 1,306 8,572 1,988 3,683 3,847 1,851 31 Float......................................................................... 3,261 2,156 2,542 4,205 3,160 4,926 3,757 3,820 3,440 4,082 32 Other Federal Reserve assets........................... 10,235 10,556 9,601 10,328 10,490 10,618 10,576 10,941 9,885 9,968 33 Gold stock.............................................................. 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 34 Special drawing rights certificate account... 2,818 2,818 2,818 2,818 2,818 2,818 2,818 2,818 2,818 2,818 35 Treasury currency outstanding........................ 14,002 14,061 13,555 13,516 13,529 13,534 13,539 13,539 13,549 13,555 Absorbing Reserve Funds 36 Currency in circulation........................................ 133,915 134,991 135,908 135,496 135,078 134,701 135,610 136,285 136,040 136,624 37 Treasury cash holdings........................................ 494 508 502 497 498 508 516 512 507 501 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury.............................................................. 3,032 4,460 2,288 2,296 3,089 5,737 3,141 3,692 3,085 2,880 39 Foreign................................................................ 474 476 346 388 319 326 312 286 270 299 40 Other..................................................................... 313 311 275 341 316 266 277 240 221 245 41 Other Federal Reserve liabilities and capital.............................................................. 4,855 4,674 4,444 4,650 4,965 5,002 4,557 4,617 4,652 4,707 42 Reserve accounts2...............................................\ 26,164 26,063 24,304 30,317 33,957 37,813 28,926 25,334 30,877 24,084 1. Includes securities loaned—fully guaranteed by U.S. government securities 2. Includes reserve balances of all depository institutions, pledged with Federal Reserve Banks—and excludes (if any) securities sold and Note. For amounts of currency and coin held as reserves, see table 1.12. scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Banks A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages of daily figures Reserve classification 1979 1980 1981 Dec. Sept. Oct. Nov. Dec. Jan. p Feb./' Mar.P Apr .p May/’ 1 Reserve balances with Reserve Banks1......... 32,473 29,164 29.976 29,215 26.664 27,114 26.591 26,722 27.117 26,822 15.311 18.149 19,293 17.824 17,327 17,189 17,773 3 Vault cash at institutions with required reserve balances2...................................... 11,344 11.811 11.678 11.876 12.602 13,587 12.187 11,687 11,687 12,124 4 Vault cash equal to required reserves at other institutions...................................... n.a. na. n.a. 439 704 700 763 1,237 1.204 1,310 5 Surplus vault cash at other institutions3 .. n.a. na. n.a. 2.996 4.843 5,006 4.874 4.403 4.298 4,339 6 Reserve balances + total vault cash4........... 43,972 41.164 41.815 44.674 44,940 46,520 44.524 44,155 44,395 44,683 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5........... n.a. na. n.a. 41.678 40.097 41,514 39,650 39.752 40.097 40,344 8 Required reserves (estimated)........................ 43,578 40,908 41.498 40.723 40.067 41,025 39.448 39.372 40.071 40,213 9 Excess reserve balances at Reserve Banks4-6 . 394 256 317 955 30 489 202 380 26 131 10 Total borrowings at Reserve Banks........... .473 1.311 1.335 2.156 1.617 1,405 1.278 1.004 1.343 2,154 11 Seasonal borrowings at Reserve Banks 82 26 67 99 116 120 148 197 161 259 Large commercial banks 12 Reserves held.......................................................... 24,940 26,267 24.874 24.772 24.894 25,033 13 Required.............................................................. 25.819 26,605 25,328 25,145 25.519 25,450 14 Excess................................................................... -879 -338 -454 -373 -625 -417 Small commercial banks 15 Reserves held.......................................................... 13,719 13,935 13.305 13.386 13.628 13,773 16 Required.............................................................. 13,523 13,690 13.235 13.229 13.558 13,633 17 Excess................................................................... na. na. n.a. n.a. 196 245 70 157 70 140 U.S. agencies and branches 18 Reserves held.......................................................... 260 253 388 461 444 576 19 Required.............................................................. 230 228 366 450 432 545 20 Excess................................................................... 30 25 22 11 12 31 All other institutions 21 Reserves held.......................................................... 494 513 502 605 611 649 22 Required.............................................................. 495 502 519 548 562 585 23 Excess................................................................... -1 11 -17 57 49 64 Weekly averages of daily figures for week ending Mar. 25 p Apr. 1/’ Apr. 8p Apr. 15 p Apr. 22p Apr. 29p May 6 p May 13 p May 20p May 21 p 24 Reserve balances with Reserve Banks1......... 27.158 27.409 25.743 26.665 28.258 27,940 27.741 25.944 27.834 26,835 25 Total vault cash (estimated)............................. 16,496 17.135 17.467 17,681 16.155 17,353 17.947 18.562 16.711 17,627 26 Vault cash at institutions with required reserve balances2...................................... 11.152 11.560 111.873 11.991 10.971 11,845 12.298 12.686 11.449 11,940 27 Vault cash equal to required reserves at other institutions...................................... 1,208 1.217 1.184 1.194 1.186 1,238 1.298 1.311 1.187 1,384 28 Surplus vault cash at other institutions3 .. 4.136 4.358 4.410 4.496 3.998 4,270 4.351 4.565 4.075 4,303 29 Reserve balances + total vault cash4........... 43.760 44.650 43,298 44.434 44.503 45,379 45.776 44,591 44,635 44,552 30 Reserve balances + total vault cash used 39.624 40.292 38,888 39.938 40.505 41.109 41.425 40.026 40.560 40,249 31 Required reserves (estimated)........................ 39.464 39.642 38.837 39.620 40.739 41,004 41.089 39.928 40.356 39,810 32 Excess reserve balances at Reserve Banks4-6 . 160 650 51 318 -234 105 336 98 204 439 33 Total borrowings at Reserve Banks........... 888 1.464 887 1.142 864 2,278 2.471 1.734 1.975 2,923 34 Seasonal borrowings at Reserve Banks 200 220 162 149 149 175 198 226 271 309 Large commercial banks 35 Reserves held.......................................................... 24.348 25.592 24.263 24.949 24,806 25.501 26,381 24.507 25.166 25.056 36 Required.............................................................. 25,066 25.324 24.701 25,344 25.935 26.031 26.174 25.367 25.482 25,032 37 Excess................................................................... -718 268 -438 -395 -1.129 -530 207 -860 -316 24 Small commercial banks 38 Reserves held.......................................................... 13.492 13.584 13.267 13.363 13,696 14.131 14.088 13.679 13,706 13,724 39 Required.............................................................. 13.387 13.340 13.163 13,269 13,787 13.990 13,937 13.547 13.618 13,572 40 Excess................................................................... 105 244 104 94 -91 141 151 132 88 152 U.S. agencies and branches 41 Reserves held.......................................................... 444 440 446 455 436 435 429 476 654 669 42 Required.............................................................. 460 431 437 443 430 422 408 430 643 627 43 Excess................................................................... - 16 9 9 12 6 13 21 46 11 42 All other institutions 44 Reserves held.......................................................... 626 570 583 624 611 630 602 625 648 735 45 Required.............................................................. 551 547 536 564 587 561 570 584 613 579 46 Excess................................................................... 75 23 47 60 24 69 32 41 35 156 1. Includes all reserve balances of depository institutions. existing member bank, or when a nonmember bank joins the Federal Reserve 2. Prior to Nov. 13, 1980. the figures shown reflect only the vault cash held by System. For weeks for which figures are preliminary, figures by class of bank do member banks. not add to total because adjusted data by class are not available. 3. Total vault cash at institutions without required reserve balances less vault 5. Reserve balances with Federal Reserve Banks plus vault cash at institutions cash equal to their required reserves. with required reserve balances plus vault cash equal to required reserves at other 4. Adjusted to include waivers of penalties for reserve deficiencies in accordance institutions. with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a 6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy graduated basis over a 24-month period when a nonmember bank merged into an reserve requirements less required reserves. (This measure of excess reserves is comparable to the old excess reserve concept published historically.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics □ June 1981 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1981, week ending Wednesday By maturity and source Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29r May 6 May 13 May 20 May 27 One day and continuing contract 1 Commercial banks in United States...................................... 48,803 57,586 56,645 53,824 49,914 52,324 49,016 45,222 44,399 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 14,932 14,318 13,549 12,735 13,021 13,716 12,875 13,812 13,650 3 Nonbank securities dealers........................................................ 2,832 2,778 2,582 2,206 3,166 3,265 2,816 2,561 2,782 4 All other........................................................................................... 19,608 19,050 19,324 16,284 20,316 19,922 19,090 19,403 19,708 All other maturities 5 Commercial banks in United States...................................... 3,475 3,210 3,481 4,749 3,520 3,524 3,639 3,788 3,467 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,327 7,159 7,229 7,864 7,247 7,064 7,365 7,591 7,434 7 Nonbank securities dealers....................................................... 5,013 4,474 4,371 4,340 4,390 4,435 4,780 5,183 5,183 8 All other........................................................................................... 10,414 9,961 10,077 13,363 10,403 10,143 10,497 10,549 10,655 Memo: Federal funds and resale agreement loans in ma­ turities of one day or continuing contract 9 Commercial banks in United States...................................... 15,985 17,068 14,963 16,101 14,508 13,795 13,348 14,214 13,894 10 Nonbank securities dealers........................................................ 3,066 3,364 2,947 2,984 3,010 2,854 2,884 2,602 2,662 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments Al 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit Short-term Emergency credit adjustment credit1 to all others Federal Reserve Seasonal credit Special circumstances2 under section 133 Bank Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 5/31/81 date rate 5/31/81 date rate 5/31/81 date rate 5/31/81 date rate Boston.................. 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 New York............. 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Philadelphia.......... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Cleveland............. 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Richmond............. 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Atlanta................. 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Chicago................. 14 5/8/81 13 14 5/8/81 13 15 5/8/81 14 17 5/8/81 16 St. Louis............... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Minneapolis.......... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Kansas City.......... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Dallas................... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 San Francisco......... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Range of rates in recent years4-5 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1972............... 4 Vi m 1976— Jan. 19................. 5 Vi-6 5 Vi 1979— Sept. 19................. lovi-n 11 1973— Jan. 15.......................... 5 5 23................. 5 Vi 5 Vi 21................. 11 11 Feb. 26.......................... 5-5 Vi 5 Vi Nov. 22................. 51/4-5 Vi 51/4 Oct. 8................. 11-12 12 Mar. 2.......................... 5 Vi 5 V2 26................. 51/4 51/4 10................. 12 12 Apr. 23.......................... 5VS-53/4 5 Vi May 4.......................... 53/4 53/4 1977— Aug. 30................. 5i/4-53/4 51/4 1980— Feb. 15................. 12-13 13 11.......................... 53/4-6 6 31................. 5i/4-53/4 53/4 19................. 13 13 18.......................... 6 6 Sept. 2................. 53/4 53/4 May 29................. 12-13 13 June 11.......................... 6-6 Vi 6 Vi Oct. 26................. 6 6 30................. 12 12 15.......................... 6 Vi 6V2 June 13................. 11-12 11 July 2.......................... 7 1 1978— Jan. 9................. 6-6 Vi 6 Vi 16................. 11 11 Aug. 14.......................... 7-7 Vi IVi 20................. 6Vi 6Vi July 28................. 10-11 10 23.......................... IVi IVi May 11................. 6 Vi-7 7 29................. 10 10 12................. 7 7 Sept. 26................. 11 11 1974— Apr. 25.......................... lVi-% 8 July 3................. 7-71/4 IVa Nov. 17................. 12 12 30.......................... 8 8 July 10................. IVa IVa Dec. 5...................... 12-13 13 Dec. 9.......................... 73/4-8 73/4 Aug. 21................. IVa IVa 8................. 13 13 16.......................... 73/4 73/4 Sept. 22................. 8 8 Oct. 16................. 8-8 Vi SVi 1981— May 5................. 13-14 14 1975_ Jan. 6.......................... 71/4 IVa 20................. 8Vi 8 Vi May 8................. 14 14 10.......................... m IVa Nov. 1................. 8 Vi-9 Vi 9Vi 24.......................... 71/4 IVa 3................. 9 Vi 9Vi Feb. 5.......................... 63/4-71/4 63/4 Mar. 1 1 7 0 4 . . .. . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . .. . . . . . 61/ 6 6 4 3 1 - / / 6 4 4 3/4 6 6 61 3 V / / 4 4 a 1979— J A u u ly g . 2 2 1 0 0 7 . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . lO 1 1 - 0 0 lO Vi Vi 1 1 lO 0 01 V /! i May 16.......................... 6-61/4 6 In effect May 31, 1981 14 14 1. Effective May 5, 1981, a 4 percent surcharge was applied to short-term ad­ 4. Rates for short-term adjustment credit. For description and earlier data see justment credit borrowings by institutions with deposits of $500 million or more the following publications of the Board of Governors: Banking and Monetary who borrowed in successive weeks or in more than 4 weeks in a calendar quarter. Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 1972- 2. Applicable to advances when exceptional circumstances or practices involve 1976, 1973-1977, and 1974-1978. only a particular depository institution as described in section 201.3(b) (2) of Reg­ 5. In 1980 and 1981, the Federal Reserve applied a surcharge to short-term ulation A. adjustment credit borrowings by institutions with deposits of $500 million or more 3. Applicable to emergency advances to individuals, partnerships, and corpo­ who had borrowed in successive weeks or in more than 4 weeks in a calendar rations as described in section 201.3(c) of Regulation A. quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, 1980. On Nov. 17,1980, a 2 percent surcharge was adopted which was subsequently raised to 3 percent on Dec. 5,1980. This surcharge was raised to 4 percent on May 5, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics □ June 1981 1.15 DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the Type of deposit, and deposit interval Monetary Control Act Type of deposit, and Monetary Control Act5 in millions of dollars deposit interval Percent Effective date Percent Effective date Net demand2 Net transaction accounts6 0-2............................. 7 12/30/76 $0-$25 million...................... 3 11/13/80 2-10........................... m 12/30/76 Over $25 million.................. 12 11/13/80 10-100........................ 113/4 12/30/76 100-400............................. 123/4 12/30/76 Nonpersonal time deposits1 Over 400........................... 16V4 12/30/76 By original maturity Less than 4 years............. 11/13/80 Time and savings2 3 4 years or more................ 11/13/80 Savings............................. 3/16/67 Eurocurrency liabilities Time4 All types............................. 11/13/80 0-5, by maturity 30-179 days ........... 3 3/16/67 180 days to 4 years 2Vi 1/8/76 4 years or more... 1 10/30/75 Over 5, by maturity 30-179 days ........... 6 12/12/74 180 days to 4 years 2 Vi 1/8/76 4 years or more ... 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board’s Annual (b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a Statistical Digest, 1971-1975 and for prior changes, see Board’s Annual Report for marginal reserve requirement of 8 percent was added to managed liabilities in 1976, table 13. Under provisions of the Monetary Control Act, depository insti­ excess of a base amount. This marginal requirement was increased to 10 percent tutions include commercial banks, mutual savings banks, savings and loan asso­ beginning April 3, 1980, was decreased to 5 percent beginning June 12, 1980, and ciations, credit unions, agencies and branches of foreign banks, and Edge Act was reduced to zero beginning July 24, 1980. Managed liabilities are defined as corporations. large time deposits, Eurodollar borrowings, repurchase agreements against U.S. 2. (a) Requirement schedules are graduated, and each deposit interval applies government and federal agency securities, federal funds borrowings from non­ to that part of the deposits of each bank. Demand deposits subject to reserve member institutions, and certain other obligations. In general, the base for the requirements were gross demand deposits minus cash items in process of collection marginal reserve requirement was originally the greater of (a) $100 million or (b) and demand balances due from domestic banks. the average amount of the managed liabilities held by a member bank. Edge (b) The Federal Reserve Act as amended through 1978 specified different ranges corporation, or family of U.S. branches and agencies of a foreign bank for the two of requirements for reserve city banks and for other banks. Reserve cities were statement weeks ending Sept. 26,1979. For the computation period beginning Mar. designated under a criterion adopted effective Nov. 9,1972, by which a bank having 20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution’s net demand deposits of more than $400 million was considered to have the character U.S. office gross loans to foreigners and gross balances due from foreign offices of business of a reserve city bank. The presence of the head office of such a bank of other institutions between the base period (Sept. 13-26, 1979) and the week constituted designation of that place as a reserve city. Cities in which there were ending Mar. 12,1980, whichever was greater. For the computation period beginning Federal Reserve Banks or branches were also reserve cities. Any banks having net May 29,1980, the base was increased by 7 Vi percent above the base used to calculate demand deposits of $400 million or less were considered to have the character of the marginal reserve in the statement week of May 14-21, 1980. In addition, business of banks outside of reserve cities and were permitted to maintain reserves beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and at ratios set for banks not in reserve cities. balances declined. (c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net 5. For existing nonmember banks and thrift institutions at the time of imple­ balances due from domestic banks to their foreign branches and on deposits that mentation of the Monetary Control Act, the phase-in period ends Sept. 3, 1987. foreign branches lend to U.S residents were reduced to zero from 4 percent and For existing member banks the phase-in period is about three years, depending on 1 percent respectively. The Regulation D reserve requirement on borrowings from whether their new reserve requirements are greater or less than the old require­ unrelated banks abroad was also reduced to zero from 4 percent. ments. For existing agencies and branches of foreign banks, the phase-in ends Aug. (d) Effective with the reserve computation period beginning Nov. 16, 1978, 12,1982. All new institutions will have a two-year phase-in beginning with the date domestic deposits of Edge corporations were subject to the same reserve require­ that they open for business. ments as deposits of member banks. 6. Transaction accounts include all deposits on which the account holder is 3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such permitted to make withdrawals by negotiable or transferable instruments, payment as Christmas and vacation club accounts were subject to the same requirements as orders of withdrawal, and telephone and preauthorized transfers (in excess of three savings deposits. per month) for the purpose of making payments to third persons or others. (b) The average reserve requirement on savings and other time deposits before 7. In general, nonpersonal time deposits are time deposits, including savings implementation of the Monetary Control Act had to be at least 3 percent, the deposits, that are not transaction accounts and in which the beneficial interest is minimum specified by law. held by a depositor that is not a natural person. Also included are certain trans­ 4. (a) Effective Nov. 2,1978, a supplementary reserve requirement of 2 percent ferable time deposits held by natural persons, and certain obligations issued to was imposed on large time deposits of $100,000 or more, obligations of affiliates, depository institution offices located outside the United States. For details, see and ineligible acceptances. This supplementary requirement was eliminated with section 204.2 of Regulation D. the maintenance period beginning July 24, 1980. Note. Required reserves must be held in the form of deposits with Federal Reserve Banks or vault cash. After implementation of the Monetary Control Act, nonmembers may maintain reserves on a pass-through basis with certain approved institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 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 May 31, 1981 Previous maximum In effect May 31, 1981 Previous maximum Percent Effective Percent Effective Percent Effective Percent Effective date date date date 1 Savings........................................................................................... 514 7/1/79 7/1/73 51h 7/1/79 51/4 0) 2 Negotiable order of withdrawal accounts 2...................... 5V4 12/31/80 1/1/74 5>/4 12/31/80 5 1/1/74 Time accounts 3 Fixed ceiling rates by maturity 4 3 14-89 days .5.............................................................................. 5Va 8/1/79 5 7/1/73 (6) (6) . 4 90 days to 1 year..................................................................... 53/4 1/1/80 51/2 7/1/73 6 1/1/80 53/4 0) 6 5 2 1 t t o o 2 2 V y i e y a e r a s r < s . 7 .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7/1/73 5 53 !/ /4 2 1 1 / / 2 2 1 1 / / 7 7 0 0 bVi 0) 6 53/4 1 1 / / 2 2 1 1 / / 7 7 0 0 7 2Vi to 4 years 7....................................................................... 6 Vi 7/1/73 53/4 1/21/70 63/4 0) 6 1/21/70 8 4 to 6 years 8............................................................................ 71/4 11/1/73 IVi 11/1/73 (9) 9 6 to 8 years 8............................................................................ IV2 12/23/74 IVa 11/1/73 73/4 12/23/74 7Vi i1/1/73' 10 8 years or more 8................................................................... 73/4 6/1/78 (6) 6/1/78 (6) 11 Issued to governmental units (all maturities) 10......... 6/1/78 73/4 12/23/74 6/1/78 73/4 *12/23/74 ‘ 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more) 1011...................................... 6/1/78 73/4 7/6/77 6/1/78 73/4 7/6/77 Special variable ceiling rates by maturity 13 6-month money market time deposits i2......................... ('13') (13) 14 2Vi years or more................................................................... 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan or less. Thrift institutions may pay a maximum 9 percent when the six-month bill associations. rate is between 83/4 and 9 percent. Also effective March 15, 1979, interest com­ 2. For authorized states only, federally insured commercial banks, savings and pounding was prohibited on six-month money market time deposits at all offering loan associations, cooperative banks, and mutual savings banks in Massachusetts institutions. The maximum allowable rates in May for commercial banks and thrift and New Hampshire were first permitted to offer negotiable order of withdrawal institutions were as follows: May 5, 15.354; May 12, 15.781; May 19, 15.275; May (NOW) accounts on Jan. 1, 19/4. Authorization to issue NOW accounts was ex­ 23, 15.925. Effective for all six-month money market certificates issued beginning tended to similar institutions throughout New England on Feb. 27, 1976, and in June 5, 1980, the interest rate ceilings will be determined by the discount rate New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Author­ (auction average) of most recently issued six-month U.S. Treasury bills as follows: ization to issue NOW accounts was extended to similar institutions nationwide Bill rate Commercial bank ceiling Thrift ceiling effective Dec. 31, 1980. 8.75 and above bill rate + Va percent bill rate + Va percent 3. For exceptions with respect to certain foreign time deposits see the Federal 8.50 to 8.75 bill rate + Va percent 9.00 Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­ 7.50 to 8.50 bill rate + Va percent bill rate + l/i percent ruary 1968 (p. 167). 7.25 to 7.50 7.75 bill rate + Vi percent 4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts Below 7.25 7.75 7.75 at savings and loan associations was decreased to 14 days and the minimum maturity The prohibition against compounding interest in these certificates continues. period for time deposits at savings and loan associations in excess of $100,000 was 14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice mutual savings banks were authorized to offer variable-ceiling nonnegotiable time period for time deposits was decreased from 30 days to 14 days for mutual savings deposits with no required minimum denomination and with maturities of 2Vi years Banks. or more. The maximum rate for commercial banks is 3/4 percentage point below 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time the yield on 2V^-year U.S. Treasury securities; the ceiling rate for thrift institutions deposits was decreased from 30 days to 14 days for commercial banks. is Va percentage point higher than that for commercial banks. Effective Mar. 1, 6. No separate account category. 1980, a temporary ceiling of ll3/4 percent was placed on these accounts at com­ 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was mercial banks; the temporary ceiling is 12 percent at savings and loan associations required for savings and loan associations, except in areas where mutual savings and mutual savings banks. Effective for all variable ceiling nonnegotiable time banks permitted lower minimum denominations. This restriction was removed for deposits with maturities of 2Vi years or more issued beginning June 2, 1980, the deposits maturing in less than 1 year, effective Nov. 1, 1973. ceiling rates of interest will be determined as follows: 8. No minimum denomination. Until July 1, 1979, minimum denomination was Treasury yield Commercial bank ceiling Thrift ceiling $1,000 except for deposits representing funds contributed to an Individual Retire­ 12.00 and above 11.75 12.00 ment Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal 9.50 to 12.00 Treasury yield - Va percent Treasury yield Revenue Code. The $1,000 minimum requirement was removed for such accounts Below 9.50 9.25 9.50 in December 1975 and November 1976 respectively. Interest may be compounded on these time deposits. The ceiling rates of interest 9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates at which these accounts may be offered vary biweekly. The maximum allowable maturing in 4 years or more with minimum denominations of $1,000; however, the rates in May for commercial banks were as follows: May 12, 11.75; May 23, 11.75. amount of such certificates that an institution could issue was limited to 5 percent The maximum allowable rates in May for thrift institutions were as follows: May of its total time and savings deposits. Sales in excess of that amount, as well as 12, 12.00; May 23, 12.00. certificates of less than $1,000, were limited to the 6Vi percent ceiling on time 15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and deposits maturing in 2Vi years or more. loan associations, and mutual savings banks were authorized to offer variable ceiling Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4 accounts with no required minimum denomination and with maturities of 4 years years or more with minimum denomination of $1,000. There is no limitation on or more. The maximum rate for commercial banks was IVa percentage points below the amount of these certificates that banks can issue. the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions 10. Accounts subject to fixed rate ceilings. See footnote 8 for minimum denom­ was Va percentage point higher than that for commercial banks. ination requirements. Note. Before Mar. 31, 1980, the maximum rates that could be paid by federally 11. Effective January 1, 1980, commercial banks are permitted to pay the same insured commercial banks, mutual savings banks, and savings and loan associations rate as thrifts on IRA and Keogh accounts and accounts of governmental units were established by the Board of Governors of the Federal Reserve System, the when such deposits are placed in the new 2V^-year or more variable ceiling certif­ Board of Directors of the Federal Deposit Insurance Corporation, and the Federal icates or in 26-week money market certificates regardless of the level of the Treasury Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526, bill rate. respectively. Title II of the Depository Institutions Deregulation and Monetary 12. Must have a maturity of exactly 26 weeks and a minimum denomination of Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to $10,000, and must be nonnegotiable. establish maximum rates of interest payable on deposits to the Depository Insti­ 13. Commercial banks, savings and loan associations, and mutual savings banks tutions Deregulation Committee. The maximum rates on time deposits in denom­ were authorized to offer money market time deposits effective June 1, 1978. The inations of $100,000 or more with maturities of 30-89 days were suspended in June ceiling rate for commercial banks on money market time deposits entered into 1970; such deposits maturing in 90 days or more were suspended in May 1973. For before June 5,1980, is the discount rate (auction average) on most recently issued information regarding previous interest rate ceilings on all types of accounts, see six-month U.S. Treasury bills. Until Mar. 15,1979, the ceiling rate for savings and earlier issues of the Federal Reserve Bulletin, the Federal Home Loan Bank loan associations and mutual savings banks was Va percentage point higher than Board Journal, and the Annual Report of the Federal Deposit Insurance Corpo­ the rate for commercial banks. Beginning March 15, 1979, the V4-percentage-point ration. interest differential is removed when the six-month Treasury bill rate is 9 percent or more. The full differential is in effect when the six-month bill rate is 83/4 percent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AlO Domestic Financial Statistics □ June 1981 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1980 1981 Type of transaction 1978 1979 1980 Oct. Nov. Dec. Jan. Feb. Mar. Apr. U.S. Government Securities Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases............................................................ 16,628 15,998 7,668 991 0 1,331 1,100 0 1,607 1,141 2 Gross sales..................................................................... 13,725 6,855 7,331 531 600 0 3,865 357 0 0 3 Exchange....................................................................... 0 0 0 0 0 0 0 0 0 0 4 Redemptions................................................................ 2,033 2,900 3,389 700 500 49 1,000 0 0 0 Others within 1 year1 5 Gross purchases............................................................ 1,184 3,203 912 0 0 100 0 0 0 115 6 Gross sales..................................................................... 0 0 0 0 0 0 0 23 0 0 7 Maturity shift................................................................ -5,170 17,339 12,427 596 2,368 754 462 990 878 522 8 Exchange....................................................................... -11,308 -18,251 -420 -879 -967 0 -1,936 -1,385 -261 9 Redemptions................................................................ } 0 2,600 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases............................................................ 4,188 2,148 2,138 0 0 0 0 0 0 469 11 Gross sales..................................................................... 0 0 0 0 0 0 0 0 0 0 12 Maturity shift................................................................ 1 r- OO -12,693 -8,909 -596 -2,368 -754 -462 -990 -878 -522 13 Exchange ....................................................................... 7,508 13,412 420 500 967 0 1,211 1,385 261 5 to 10 years 14 Gross purchases............................................................ 1,526 523 703 0 0 0 0 0 0 164 15 Gross sales..................................................................... 0 0 0 0 0 0 0 0 0 0 1 17 6 M Ex a c tu h r a it n y g s e h ... i . f . t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,803 -4 2 ,6 ,1 4 8 6 1 -3 2 ,0 ,9 9 7 2 0 0 0 220 0 0 0 0 0 400 0 0 0 0 0 Over 10 years 18 Gross purchases............................................................ 1,063 454 811 0 0 0 0 0 0 89 19 Gross sales..................................................................... 0 0 0 0 0 0 0 0 0 0 2 2 1 0 E M x a c t h u a ri n t g y e s h .. i .. f . t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,545 1,619 0 - 1 4 ,8 2 6 6 9 0 0 15 0 9 0 0 0 0 325 0 0 0 0 0 All maturities1 22 Gross purchases............................................................ 24,591 22,325 12,232 991 0 1,431 1,100 0 1,607 1,977 23 Gross sales..................................................................... 13,725 6,855 7,331 531 600 0 3,865 380 0 0 24 Redemptions................................................................ 2,033 5,500 3,389 700 500 49 1,000 0 0 0 Matched transactions 25 Gross sales..................................................................... 511,126 627,350 674,000 55,787 40,944 79,754 61,427 30,819 32,003 37,251 26 Gross purchases............................................................ 510,854 624,192 675,496 56,462 41,129 78,734 63,062 31,651 30,441 37,295 Repurchase agreements 27 Gross purchases............................................................ 151,618 107,051 113,902 20,145 24,169 11,534 6,108 0 1,623 9,458 28 Gross sales..................................................................... 152,436 106,968 113,040 19,808 23,924 11,381 8,137 0 1,246 9,835 29 Net change in U.S. government securities............. 7,743 6,896 3,869 771 — 67C 516 -4,159 452 422 1,644 Federal Agency Obligations Outright transactions 30 Gross purchases............................................................ 301 853 668 0 0 0 0 0 0 0 31 Gross sales..................................................................... 173 399 0 0 0 0 0 0 0 0 32 Redemptions................................................................. 235 134 145 21 0 22 0 3 15 2 Repurchase agreements 33 Gross purchases............................................................ 40,567 37,321 28,895 5,922 4,825 1,889 652 0 494 1,211 34 Gross sales..................................................................... 40,885 36,960 28,863 5,734 4,880 1,767 1,177 0 437 1,268 35 Net change in federal agency obligations................ -426 681 555 167 -55 99 -525 -3 42 -58 Bankers Acceptances 36 Outright transactions, net............................................. 0 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net........................................ -366 116 73 67 -43 253 -776 0 298 -298 38 Net change in bankers acceptances........................... -366 116 73 67 -43 253 -776 0 298 -298 39 Total net change in System Open Market Account....................................................... 6,951 7,693 4,497 1,005 -768 868 -5,460 450 762 1,287 1. Both gross purchases and redemptions include special certificates created Note. Sales, redemptions, and negative figures reduce holdings of the System when the Treasury borrows directly from the Federal Reserve, as follows (millions Open Market Account; all other figures increase such holdings. Details may not of dollars): March 1979, 2,600. add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1981 1981 Apr. 29 May 6 May 13 May 20 May 27 Mar. Apr. May Consolidated condition statement Assets 1 Gold certificate account.............................................................. 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 2 Special drawing rights certificate account............................. 2,818 2,818 2,818 2,818 2,818 2,818 2,818 2,818 3 Coin.................................................................................................... 412 403 398 403 391 468 412 396 Loans 4 To depository institutions..................................................... 8,572 1,988 3,683 3,847 1,851 656 2,333 1,366 5 Other............................................................................................. 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements.................................... 549 0 0 0 0 298 0 0 Federal agency obligations 7 Bought outright......................................................................... 8,720 8,720 8,720 8,720 8,720 8,722 8,720 8,720 8 Held under repurchase agreements.................................... 566 0 0 0 0 57 0 0 U.S. government securities Bought outright 9 Bills........................................................................................... 43,613 44,363 39,868 45,815 40,769 42,078 43,263 41,887 10 Notes......................................................................................... 59,118 59,118 59,118 58,818 58,818 58,370 59,118 58,818 11 Bonds...................................................................................... 17,306 17,306 17,306 17,606 17,606 17,218 17,306 17,606 12 Total i ....................................................................................... 120,037 120,787 116,292 122,239 117,193 117,666 119,687 118,311 13 Held under repurchase agreements.................................... 2,860 0 0 0 0 377 0 0 14 Total U.S. government securities............................................ 122,897 120,787 116,292 122,239 117,193 118,043 119,687 118,311 15 Total loans and securities.............................................. 141,304 131,495 128,695 134,806 127,764 127,776 130,740 128,397 16 Cash items in process of collection........................................ 11,946 10,142 10,073 9,647 11,963 11,107 9,224 9,096 17 Bank premises................................................................................ 469 469 469 469 470 465 467 470 Other assets 18 Denominated in foreign currencies2................................. 6,848 6,794 6,865 6,854 6,858 7,060 6,768 6,412 19 Allother....................................................................................... 3,301 3,313 3,607 2,562 2,640 2,710 3,321 2,719 20 Total assets................................................................... 178,252 166,588 164,079 168,713 164,058 163,558 164,904 161,462 Liabilities 21 Federal Reserve notes................................................................ 122,088 122,990 123,657 123,401 123,962 120,874 121,852 123,251 Deposits 22 Depository institutions............................................................ 37,813 28,926 25,334 30,877 24,084 26,164 26,063 24,304 23 U.S. Treasury—General account........................................ 5,737 3,141 3,692 3,085 2,880 3,032 4,460 2,288 24 Foreign—Official accounts................................................... 326 312 286 270 299 474 476 346 25 Other............................................................................................. 266 277 240 221 245 313 311 275 26 Total deposits............................................................... 44,142 32,656 29,552 34,453 27,508 29,983 31,310 27,213 27 Deferred availability cash items............................................... 7,020 6,385 6,253 6,207 7,881 7,846 7,068 6,554 28 Other liabilities and accrued dividends3............................... 2,273 1,874 1,903 1,901 1,965 1,952 1,971 1,744 29 Total liabilities.............................................................. 175,523 163,905 161,365 165,962 161,316 160,655 162,201 158,762 Capital Accounts 30 Capital paid in................................................................................ 1,233 1,236 1,234 1,235 1,237 1,227 1,233 1,238 31 Surplus............................................................................................. 1,203 1,203 1,203 1,203 1,203 1,203 1,203 1,203 32 Other capital accounts................................................................ 293 244 277 313 302 473 267 259 33 Total liabilities and capital accounts............................. 178,252 166,588 164,079 168,713 164,058 163,558 164,904 161,462 34 Memo: Marketable U.S. government securities held in custody for foreign and international account........... 101,725 100,425 100,788 100,062 97,516 101,214 100,546 96,635 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) .. 143,634 143,634 143,895 143,881 143,959 142,182 143,716 143,936 36 Less-held by bank4............................................ 21,546 20,644 20,238 20,480 19,997 21,308 21,864 20,685 37 Federal Reserve notes, net................................. 122,088 122,990 123,657 123,401 123,962 120,874 121,852 123,251 Collateral for Federal Reserve notes 38 Gold certificate account......................................... 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 39 Special drawing rights certificate account............... 2,818 2,818 2,818 2,818 2,818 2,818 2,818 2,818 40 Other eligible assets.............................................. 0 0 0 0 9 0 0 0 41 U.S. government and agency securities................. 108,116 109,018 109,588 109,429 109,981 106,902 107,880 109,279 42 Total collateral.......................................................... 122,088 122,990 123,657 123,401 123,962 120,874 121,852 123,251 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes (if any) securities sold and market exchange rates of foreign-exchange commitments. scheduled to be bought back under matched sale-purchase transactions. 4. Beginning September 1980, Federal Reserve notes held by the Reserve Bank 2. Includes U.S. government securities held under repurchase agreement against are exempt from the collateral requirement. receipt of foreign currencies and foreign currencies warehoused for the U.S. Treas­ ury. Assets shown in this line are revalued monthly at market exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics □ June 1981 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity growings 1981 1981 Apr. 29 May 6 May 13 May 20 May 27 Mar. 31 Apr. 30 May 31 1Loans—Total.................................................................................. 8,572 1,988 3,683 3,847 1,851 656 2,333 1,366 2 Within 15 days........................................................................... 8,558 1,896 3,543 3,754 1,810 616 1,905 1,317 3 16 days to 90 days..................................................................... 14 92 140 93 41 40 428 49 4 91 days to 1 year....................................................................... 0 0 0 0 0 0 0 0 5 Acceptances—Total..................................................................... 549 0 0 0 0 298 0 0 6 Within 15 days........................................................................... 549 0 0 0 0 298 0 0 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—Total........................................ 122,897 120,787 116,292 122,239 117,193 118,043 119,687 118,311 10 Within 15 days1......................................................................... 5,771 5,726 6,043 6,566 2,923 2,265 2,098 3,162 11 16 days to 90 days..................................................................... 22,573 20,363 15,510 22,663 20,442 22,904 21,291 21,552 12 91 days to 1 year....................................................................... 29,978 30,384 30,426 29,956 30,774 29,020 31,983 30,543 13 Over 1 year to 5 years............................................................ 35,241 34,981 34,980 34,297 34,297 34,772 34,981 34,297 14 Over 5 years to 10 years....................................................... 13,918 13,918 13,918 13,042 13,042 13,755 13,918 13,042 15 Over 10 years............................................................................. 15,416 15,415 15,415 15,715 15,715 15,327 15,416 15,715 16 Federal agency obligations—Total.......................................... 9,286 8,720 8,720 8,720 8,720 8,779 8,720 8,720 17 Within 15 days1......................................................................... 635 0 131 221 178 266 69 178 18 16 days to 90 days..................................................................... 615 680 549 459 471 397 615 471 19 91 days to 1 year....................................................................... 1,752 1,756 1,756 1,756 1,853 1,843 1,752 1,853 20 Over 1 year to 5 years............................................................ 4,658 4,658 4,658 4,658 4,593 4,613 4,658 4,593 21 Over 5 years to 10 years....................................................... 982 982 982 982 982 975 982 982 22 Over 10 years.............................................................................. 644 644 644 644 643 685 644 643 1. 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. 1980 1981 Bank group, or type of customer 1977 1978 1979' Dec. Jan. Feb. Mar. Apr. Debits to demand deposits1 (seasonally adjusted) 1 All commercial banks.................................................................. 34,322.8 40,297.8 49,775.0 69.950.2 72.402.3 73,174.6 75.487.3 73,621.7 2 Major New York City banks................................................... 13,860.6 15,008.7 18,512.7 27.352.2 29,656.0 29,752.0 30,276.0 29.501.3 3 Other banks.................................................................................... 20,462.2 25,289.1 31,262.3 42,598.0 42.746.3 43,422.5 45.211.3 44.120.4 Debits to sa\angs deposits:2 (not seasonstlly adjusted) 4 ATS/NOW 3 5.5 17.1 83.3 218.3 529.3 526.6 668.7 815.4 5 Business4 .. 21.7 56.7 77.3 119.2 108.2 93.4 112.8 112.4 6 Others5......... 152.3 359.7 515.2 704.2 685.7 553.1 556.8 590.1 7 All accounts 179.5 432.9 675.8 1,041.6 1,323.2 1,173.1 1,338.3 1,517.9 Demand deposit turnover1 (seasonally adjusted) 8 All commercial banks............. 129.2 139.4 163.5 222.7 244.6 253.6 262.9 257.2 9 Major New York City banks 503.0 541.9 646.2 865.8 956.2 952.6 959.5 1,001.9 10 Other banks............................... 85.9 96.8 113.3 150.8 161.3 168.7 176.9 171.8 Savings deposit turnover2 (not seasonally adjusted) 11 ATS/NOW3 6.5 7.0 7.8 10.4 15.1 12.5 14.2 15.2 12 Business4... 4.1 5.1 7.2 11.3 10.9 9.8 11.3 11.6 13 Others5 .... 1.5 1.7 2.7 4.1 4.1 3.4 3.5 3.6 14 All accounts 1.7 1.9 3.1 5.1 6.3 5.5 6.1 6.7 1. Represents accounts of individuals, partnerships, and corporations, and of Note. Historical data for the period 1970 through June 1977 have been estimated; states and political subdivisions. these estimates are based in part on the debits series for 233 SMS As, which were 2. Excludes special club accounts, such as Christmas and vacation clubs. available through June 1977. Back data are available from Publications Services, 3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts Division of Administrative Services, Board of Governors of the Federal Reserve authorized for automatic transfer to demand deposits (ATS). ATS data availability System, Washington, D.C. 20551. Debits and turnover data for savings deposits starts with December 1978. are not available before July 1977. 4. Represents corporations and other profit-seeking organizations (excluding commercial banks but including savings and loan associations, mutual savings banks, credit unions, the Export-Import Bank, and federally sponsored lending agencies). 5. Savings accounts other than NOW; business; and, from December 1978, ATS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A13 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures Item D 19 e 7 c 7 . D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted MeasuresI 1 M-1A........................................... 328.4 351.6 369.8 384.4 388.2 384.4 373.3 366.6 365.0 365.1 2 M-1B........................................... 332.6 360.1 386.9 411.3 414.7 411.3 416.0 419.0 422.9 429.5 3 M-2............................................. 1.294.1 1.401.5 1,526.0 1,668.7 1,667.1 1,668.7 1,681.7 1.695.4 1,717.4' 1,735.5 4 M-3............................................. 1,460.3 1.623.6 1,775.5 1.952.2 1,941.0 1.952.2 1,978.6 1.996.4 2,012.3' 2,028.7 5 L2................................................ 1.720.2 1,934.9 2,151.8 2.365.3 2,346.7 2.365.3 2,398.4' 2,421.5' n.a. n.a. Components 6 Currency...................................... 88.7 97.6 106.3 116.2 115.6 116.2 116.6 117.3 117.9 119.0 7 Demand deposits.......................... 239.7 253.9 263.5 268.2 272.6 268.2 256.7 249.3 247.1 246.1 8 Savings deposits............................ 486.4 475.8 417.0 393.8 406.8 393.8 377.7 370.5 368.1' 367.1 9 Small-denomination time deposits3 454.9 533.8 656.2 759.0 739.3 759.0 777.9 785.1 791.2' 791.7 10 Large-denomination time deposits4 145.2 194.7 219.0 247.0 237.4 247.0 258.1 263.0' 259.1' 257.1 Not seasonally adjusted MeasuresI 11 M-1A................................................... 337.2 360.9 379.4 394.7 391.1 394.7 377.3 358.2 358.3 368.3 12 M-1B................................................... 341.4 369.5 396.4 421.8 417.7 421.8 420.6 409.4 415.1 432.9 13 M-2..................................................... 1,295.9 1,403.6 1,527.7 1,674.7 1,665.7 1,674.7 1,684.7 1,685.1' 1,712.4' 1,743.5 14 M-3..................................................... 1,464.5 1,629.2 1,780.8 1,962.8 1,942.1 1,962.8 1,984.3 1,988.3 2,009.9' 2,035.5 15 U......................................................... 1,723.2 1,938.3 2,154.3 2,372.0 2,344.7 2,372.0 2,401.4' 2,414.7' n.a. n.a. Components 16 Currency.............................................. 90.3 99.4 108.3 118.5 116.6 118.5 115.8 115.9 116.8 118.5 17 Demand deposits.................................. 247.0 261.5 271.2 276.2 274.5 276.2 261.5 242.3 241.4 249.8 18 Other checkable deposits5..................... 4.2 8.6 17.0 27.1 26.6 27.1 43.3 51.2 56.8 64.6 19 Overnight RPs and Eurodollars6.......... 18.6 23.9 25.3 32.2 32.6 32.2 32.5 31.7' 32.9' 33.4 20 Money market mutual funds................. 3.8 10.3 43.6 75.8 77.0 75.8 80.7 92.4 105.6 117.1 21 Savings deposits.................................... 483.1 472.6 414.1 390.9 405.8 390.9 374.9 365.3 365.5' 366.5 22 Small-denomination time deposits3....... 451.3 529.8 651.2 757.4 735.9 757.4 779.1 789.5 796.6' 796.9 23 Large-denomination time deposits4....... 147.7 198.2 222.6 251.5 240.0 251.5 260.7 265.3' 261.7' 255.9 1. Composition of the money stock measures is as follows: 3. Small-denomination time deposits are those issued in amounts of less than M-1A: Averages of daily figures for (1) demand deposits at all commercial banks $100,000. other than those due to domestic banks, the U.S. government, and foreign banks 4. Large-denomination time deposits are those issued in amounts of $100,000 and official institutions less cash items in the process of collection and Federal or more and are net of the holdings of domestic banks, thrift institutions, the U.S. Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and government, money market mutual funds, and foreign banks and official institu­ the vaults of commercial banks. tions. M-1B: M-1A plus negotiable order of withdrawal (NOW) and automatic transfer 5. Includes ATS and NOW balances at all institutions, credit union share draft service (ATS^) accounts at banks and thrift institutions, credit union share draft balances, and demand deposits at mutual savings banks. accounts, ana demand deposits at mutual savings banks. 6. Overnight (and continuing contract) RPs are those issued by commercial M-2: M-1B plus savings and small-denomination time deposits at all depository banks to the nonbank public, and overnight Eurodollars are those issued by Ca­ institutions, overnight repurchase agreements at commercial banks, overnight Eu­ ribbean branches of member banks to U.S. nonbank customers. rodollars held by U.S. residents other than banks at Caribbean branches of member Note. Latest monthly and weekly figures are available from the Board’s H.6(508) banks, and money market mutual fund shares. release. Back data are available from the Banking Section, Division of Research M-3: M-2 plus large-denomination time deposits at all depository institutions and Statistics. The monetary aggregates and their components have been revised and term RPs at commercial banks and savings and loan associations. due to new seasonal adjustment factors 2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents other than banks, bankers acceptances, commercial paper, Treasury bills and other liquid Treasury securities, and U.S. savings bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics □ June 1981 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS1 AND MEMBER BANK DEPOSITS Billions of dollars, averages of daily figures 1980 1981 Item D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . Oct. Nov.2 Dec. Jan. Feb. Mar. Apr. Seasonally adjusted 1 Total reserves3.................................................................................... 41.16 43.46 40.13 41.73 41.23 40.13 40.10 39.76 40.25 40.25 2 Nonborrowed reserves............................................................................................. 40.29 41.98 38.44 40.42 39.17 38.44 38.70 38.45 39.25 38.91 3 Required reserves...................................................................................................... 40.93 43.13 39.58 41.52 40.73 39.58 39.56 39.58 39.87 40.10 4 Monetary base4........................................................................................................... 142.2 153.7 159.8 160.9 160.7 159.8 160.1 160.6 161.3 162.2 5 Member bank deposits subject to reserve requirements5...................... 616.1 644.5 701.8 684.7 694.3 701.8 703.8 704.3 703.6 711.3 6 Time and savings......................................................................................................... 428.7 451.2 485.6 485.5 475.4 485.6 517.4 523.3 524.7 531.1 Demand 7 Private........................................................................................................................ 185.1 191.5 196.0 195.6 198.1 196.0 184.1 178.9 176.9' 177.4 8 U.S. government.................................................................................................... 2.2 1.8 1.9 2.4 2.2 1.9 2.3 2.1 2.0 2.8 Not seasonally adjusted 9 Monetary base4........................................................................................................... 144.6 156.2 162.5 160.6' 161.5r 162.5' 161.0' 158.9 159.6 161.6 10 Member bank deposits subject to reserve requirements5...................... 624.0 652.7 710.3 684.2 694.6 710.3 712.6 701.5 703.2 713.5 11 Time and savings......................................................................................................... 429.6 452.1 486.5 485.7 493.0 505.0 520.5 524.8 527.9 531.6 Demand 12 Private........................................................................................................................ 191.9 198.6 203.2 196.4 199.6 203.3 189.9 174.6 173.2 178.9 13 U.S. government.................................................................................................... 2.5 2.0 2.1 2.1 1.9 2.1 2.1 2.0 2.1 3.0 1. Reserves of depository institutions series reflect actual reserve requirement 2. Reserve measures for November reflect increases in required reserves asso­ rcentages with no adjustment to eliminate the effect of changes in Regulations ciated with the reduction of weekend avoidance activities oi a few large banks. and M. Before Nov. 13, 1980, the date of implementation of the Monetary The reduction in these activities lead to essentially a one-time increase in the Control Act, only the reserves of commercial banks that were members of the average level of required reserves that need to be held for a given level of deposits Federal Reserve System were included in the series. Since that date the series entering the money supply. In November, this increase in required reserves is include the reserves of all depository institutions. In conjunction with the imple­ estimated at $550 to $600 million. mentation of the act, required reserves of member banks were reduced about $4.3 3. Reserve balances with Federal Reserve Banks plus vault cash at institutions billion and required reserves of other depository institutions were increased about with required reserve balances plus vault cash equal to required reserves at other $1.4 billion. Effective Oct. 11, 1979, an 8 percentagepoint marginal reserve re­ institutions. quirement was imposed on “Managed Liabilities.” This action raised required 4. Includes reserve balances at Federal Reserve Banks in the current week plus reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point mar­ vault cash held two weeks earlier used to satisfy reserve requirements at all ginal reserve requirement was raised to 10 percentage points. In addition the base depository institutions plus currency outside the U.S. Treasury, Federal Reserve upon which the marginal reserve requirement was calculated was reduced. This Banks, the vaults of depository institutions, and surplus vault cash at depository action increased required reserves about $1.7 million in the week ending Apr. 2, institutions. 1980. Effective May 29, 1980, the marginal reserve requirement was reduced from 5. Includes total time and savings deposits and net demand deposits as defined 10 to 5 percentage points and the base upon which the marginal reserve requirement by Regulation D. Private demand deposits include all demand deposits except was calculated was raised. This action reduced required reserves about $980 million those due to the U.S. government, less cash items in process of collection and in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal demand balances due from domestic commercial banks. reserve requirement on managed liabilities and the 2 percent supplementary reserve requirement against large time deposits were removed. These actions reduced Note. Latest monthly and weekly figures are available from the Board’s H.3(502) required reserves about $3.2 billion. statistical release. Back data and estimates of the impact on required reserves and changes in reserve requirements are available from the Banking Section, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A15 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1981 1981 Category D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . Mar. Apr. Mar. Apr. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2.......................... 1,013.4* 1,134.6-* 1,237.3* I,262.3r 1,267.0 1,022.5' 1,145.04 1,248.9* l,256.1r 1,265.6 2 U.S. Treasury securities...................................... 93.3 93.8 110.7 114.9 115.3 94.5 95.0 112.1 117.2' 118.9 3 Other securities..................................................... 173.2’ 191.8 213.9 218.2 217.6 173.9’ 192.6 214.8 217.6' 218.0 4 Total loans and leases-........................................ 746.93 848.9-> 912.7s 929.1' 934.2 754.2-' 857.44 922.1? 921.4' 928.7 5 Commercial and industrial loans............... 246.1'1 291.H 324.9? 332.3 333 112 247.7'' 293.04 327.0? 330.4 333.712 6 Real estate loans.............................................. 210.5 241.3-* 260.6" 266.7' 268.3 210.9 241.84 261.1? 265.1' 267.0 7 Loans to individuals........................................ 164.7 184.9 175.2 174.6 174.5 165.6 186.0 176.2 172.0 172.3 8 Security loans..................................................... 19.3 18.6 17.6 18.7'- 19.7 20.6 19.8 18.8 18.6' 19.4 9 Loans to nonbank financial institutions .. 27.17 28. 28.7? 28.7 28.8 27.67 29.34 29 '>? 28.1 28.4 10 Agricultural loans............................................ 28.2 31.1 31.6 31.9' 31.9 28.1 30.9 31.4 31.4' 31.5 11 Lease financing receivables........................... 7.5 9.3 10.9 12.0' 12.1 7.5 9.3 10.9 12.0' 12.1 12 All other loans................................................... 43.61 44.0 63.4 64.3' 65.8 46.2' 47.3 67.5 64.0' 64.4 Mumo: 13 Total loans and securities plus loans sold2 9 . 1,017.1-' 1,137.64 •» 1,240.0* 1,265.1' 1,269.8 1,026.2' 1,148.048 1,251.6* 1,258.9' 1,268.3 750.6-' 851.9-*.« 915.5? 931.9' 936.9 757.93 860.44.8 924.8? 924.2' 931.4 15 Total loans sold to affiliates9........................... 3.7 3.0* 2.7 2.8 2.7 3.7 3.0* 2.7 2.8 2.7 16 Commercial and industrial loans plus loans sold9.................................................................. 248.(K’l" 293.14.x 326.6? 334.1 334.91- 249. (A i" 295.04 * 328.8? 332.2 335.612 17 Commercial and industrial loans sold9 .. . 1.91" 2.0* 1.8 1.9 1.9 1.91" 2.0* 1.8 1.9 1.9 18 Acceptances held............................................ 6.6 8.2 8.1 8.8 9.6 7.3 9.1 8.8 8.8 9.3 19 Other commercial and industrial loans ... 239.5 282.9 316.7 323.5 323.5 240.4 283.9 318.2 321.5 324.4 20 To U.S. addressees11................................. 226.0 264.1 295.2 297.9 297.8 ->->S 9 264.1 295 "> 296.3 298.9 21 To non-U.S. addressees............................. 13.5 18.8 21.5 25.6 25.7 14.5 19.8 23.0 25.2 25.5 22 Loans to foreign banks...................................... 21.5 18.5 23.2 22.8 22.8 23.2 20.0 24.9 22.2 22.1 1. Includes domestically chartered banks; U.S. branches and agencies of foreign 8. As of Dec. 1. 1979. loans sold to affiliates were reduced $800 million and banks. New York investment companies majority owned by foreign banks, and commercial and industrial loans sold were reduced $700 million due to corrections Edge Act corporations owned by domestically chartered and foreign banks. of two banks in New York City. 2. Excludes loans to commercial banks in the United States. 9. Loans sold are those sold outright to a bank's own foreign branches, non­ 3. As of Dec. 31. 1978. total loans and securities were reduced by $0.1 billion. consolidated nonbank affiliates of the bank, the bank's holding company (if not a "Other securities’" were increased by $1.5 billion and total loans were reduced by bank), and nonconsolidated nonbank subsidiaries of the holding companv. $1.6 billion largely as the result of reclassif ications of certain tax-exempt obligations. 10. As of Dec. 31. 1978. commercial and industrial loans sold outright were Most of thc loan reduction was in “all other loans." increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount 4. As of Jan. 3. 1979. as the result of reclassifications, total loans and securities was offset by a balance sheet reduction of $0.1 billion as noted above. and total loans were increased by $0.6 billion. Business loans were increased by 11. United States includes the 50 states and the District of Columbia. $0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were 12. An accounting procedure change bv one bank reduced commercial and in­ reduced by $0.3 billion. dustrial loans by $0.1 billion as of Apr. 1. 1981. 5. Absorption of a nonbank affiliate by a large commercial bank added the following to February figures; total loans and securities. $1.0 billion; total loans Noil. Data are prorated averages of Wednesday estimates for domestically and leases. $1.0 billion; commercial and industrial loans. $.5 billion; real estate chartered banks, based on weekly reports of a sample of domestically chartered loans. $.1 billion; nonbank financial. $.1 billion. banks and quarterly reports of all domestically chartered banks. For foreign related 6. As of Dec. 31. 1978. commercial and industrial loans were reduced $0.1 billion institutions, data are averages of month-end estimates based on weekly reports as a result of reclassifications. from large agencies and branches and quarterly reports from all agencies, branches, 7. As of Dec. 31. 1978. nonbank financial loans were reduced $0.1 billion as investment companies, and Edge Act corporations engaged in banking. the result of reclassification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics □ June 1981 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars December outstanding Outstanding in 1980 and 1981 Source 1977 1978 1979 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total nondeposit funds 1 Seasonally adjusted2............................................... 61.5 91.2 121.1 109.4 114.0 119.9 116.9' 120.5' 124.8' 122.5' 117.6' 112.1 2 Not seasonally adjusted.......................................... 60.1 90.2 119.8 112.3 114.5 120.8 120.1' 119.9' 122.2' 121.7' 117.4' 111.7 Federal funds, RPs, and other borrowings from non-banks3 3 Seasonally adjusted................................................. 58.4 80.7 90.0 96.2 102.2 105.7 105.4' 109.6' 113.7' 111.1' 110.9' 109.7 4 Not seasonally adjusted.......................................... 57.0 79.7 88.7 99.1 102.7 106.6 108.6' 109.0' 111.1' 110.4' 110.6' 109.3 5 Net balances due to foreign-related institutions, not seasonally adjusted...................................... -1.5 6.8 28.1 10.3 8.9 11.4 8.9 8.2 8.3 8.5' 4.0' .3 6 Loans sold to affiliates, not seasonally adjusted4-5.............................................................. 4.7 3.7 3.0 2.9 2.9 2.8 2.6 2.7 2.8 2.8 2.8 2.7 Memo 7 Domestically chartered banks net positions with own foreign branches, not seasonally adjusted6................................................................ -12.5 -10.2 6.5 -10.3 -14.5 -12.9 -14.2 -14.7 -16.2 -14.7' -16.9' -21.3 8 Gross due from balances........................................ 21.1 24.9 22.8 35.8 38.2 38.3 37.3' 37.5 37.5' 36.4' 38.9' 43.1 9 Gross due to balances............................................ 8.6 14.7 29.3 25.5 23.7 25.5 23.1' 22.8' 21.2 21.7' 22.0' 21.8 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7................................................................ 10.9 17.0 21.6 20.6 23.3 24.3 23.1 22.9 24.5 23.2' 20.9 21.0 11 Gross due from balances........................................ 10.7 14.3 28.9 30.9 30.3 30.8 31.0 32.5 31.4 31.7 31.7 33.8 12 Gross due to balances............................................. 21.7 31.3 50.5 51.6 53.6 55.2 54.1 55.4 55.9 54.9' 52.6 54.7 Security RP borrowings 13 Seasonally adjusted^............................................... 36.0 44.8 49.2 57.5 56.2 59.7 58.8 63.4 68.7 67.0 67.1 67.0 14 Not seasonally adjusted.......................................... 35.1 43.6 47.9 59.1 58.7 59.5 60.9 61.7 65.0 65.2 65.8 65.6 U.S. Treasury demand balances9 15 Seasonally adjusted................................................. 4.4 8.7 8.9 11.3 11.3 11.7 8.1 8.3 6.9 8.1 11.6 12.2 16 Not seasonally adjusted.......................................... 5.1 10.3 9.7 9.3 14.2 12.7 6.6 9.0 7.9 8.1 10.2 12.0 Time deposits, $100,000 or more10 17 Seasonally adjusted................................................. 162.0 213.0 227.1 237.1 240.3 242.0 247.8 257.0 268.0 272.5 270.2 272.9 18 Not seasonally adjusted.......................................... 165.4 217.9 232.8 232.1 236.7 241.1 250.8 263.4 272.8 276.8 274.8 272.3 1. Commercial banks are those in the 50 states and the District of Columbia 6. Averages of daily figures for member and nonmember banks. Before October with national or state charters plus agencies and branches of foreign banks. New 1980 nonmember banks were interpolated from quarterly call report data. York investment companies majority owned by foreign banks, and Edge Act cor­ 7. Includes averages of current and previous month-end data until August 1979; porations owned by domestically chartered and foreign banks. beginning September 1979 averages of daily data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 8. Based on daily average data reported by 122 large banks beginning February nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In­ 1980 and 46 banks before February 1980. cludes averages of Wednesday data for domestically chartered banks and averages 9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at of current and previous month-end data for foreign-related institutions. commercial banks. Averages of daily data. 3. Other borrowings are borrowings on any instrument, such as a promissory 10. Averages of Wednesday figures. note or due bill, given for the purpose of borrowing money for the banking business. Note. Movement of federal funds, RPs, and other borrowings from nonbanks This includes borrowings from Federal Reserve Banks and from foreign banks, (lines 3 and 4) is based on fluctuations in security RP borrowings (lines 13 and 14) term federal funds, overdrawn due from bank balances, loan RPs, and participa­ and borrowings from unaffiliated foreign sources (not shown). tions in pooled loans. Includes averages of daily figures for member banks and averages of current and previous month-end data for foreign-related institutions. 4. Loans initially booked by the bank and later sold to affiliates that are still held by affiliates. Averages of Wednesday data. 5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to corrections of two New York City banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A ll 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1980 1981 Account July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Domestically Chartered Commercial Banks* 1 Loans and investments, excluding interbank................................................ 1,095.3 1,108.5 1,117.9 1,134.8 1,150.8 1,177.1 1,166.0 1,167.0 1,169.7 1.187.8 1,194.6 2 Loans, excluding interbank........................ 793.4 801.9 809.1 821.6 832.8 851.4 840.2 839.0 840.8 855.4 862.4 3 Commercial and industrial.................... 257.1 259.5 263.9 269.0 275.7 281.5 277.6 276.3 277.7 285.4 287.9 4 Other.............................................................. 536.3 542.4 545.2 552.6 557.1 569.9 562.6 562.7 563.1 570.1 574.5 5 U.S. Treasury securities............................... 98.7 101.4 103.2 104.4 107.1 111.2 112.0 113.7 112.8 115.8 114.9 6 Other securities.............................................. 203.3 205.2 205.6 208.9 210.9 214.6 213.8 214.3 216.2 216.6 217.3 7 Cash assets, total............................................ 154.3 148.8 156.6 155.9 175.6 194.2 159.3 165.9 166.4 181.8 180.3 8 Currency and coin...................................... 17.5 18.2 17.8 18.3 16.9 19.9 18.7 18.6 17.8 18.8 19.5 9 Reserves with Federal Reserve Banks 32.2 29.0 31.1 31.7 30.4 28.2 25.2 30.4 31.7 38.3 25.2 10 Balances with depository institutions . 45.0 45.9 46.8 47.2 56.1 63.0 54.9 54.6 53.6 57.3 62.0 11 Cash items in process of collection ... 59.6 55.8 60.9 58.8 72.2 83.0 60.5 62.3 63.3 67.4 73.6 12 Other assets2................................................... 143.5 150.3 154.4 151.3 151.3 165.6 155.8 160.1 164.9 167.7 158.8 13 Total assets/total liabilities and capital... 1,393.1 1,407.7 1,428.9 1,442.1 1,477.7 1,537.0 1,481.0 1,493.0 1,501.1 1,537.3 1,533.7 14 Deposits............................................................ 1,053.1 1,062.8 1,077.2 1,092.9 1,126.2 1,187.4 1,128.7 1,132.0 1,136.7 1,151.7 1,170.3 15 Demand....................................................... 363.5 363.4 369.7 375.7 393.0 432.2 351.1 345.5 345.4 356.8 360.7 16 Savings......................................................... 205.5 208.5 209.1 210.9 209.5 201.3 211.9 214.3 220.6 222.7 220.9 17 Time.............................................................. 484.2 490.9 498.5 506.2 523.7 553.8 565.7 572.3 570.7 572.2 588.7 18 Borrowings....................................................... 157.0 158.5 163.7 161.7 157.3 156.4 156.4 163.2 163.7 179.5 155.7 19 Other liabilities.............................................. 74.0 75.4 75.6 74.7 78.1 79.0 76.7 80.3 80.7 81.8 82.3 20 Residual (assets less liabilities).................. 109.0 111.0 112.3 112.7 116.1 114.2 119.3 117.5 120.0 124.3 125.4 Memo: 21 U.S. Treasury note balances included in borrowing................................................. 7.6 8.7 15.7 11.5 4.4 10.2 9.5 8.5 10.2 16.9 5.5 22 Number of banks.......................................... 14,658 14,666 14,678 14,760 14,692 14,693 14.689 14,696 14,701 14,713 14,719 All Commercial Banking Institutions3 23 Loans and investments, excluding interbank................................................. 1,194.3 1,262.4 24 Loans, excluding interbank........................ 881.5 932.5 25 Commercial and industrial.................... 308.1 330.6 26 Other.............................................................. 573.4 601.9 27 U.S. Treasury securities............................... 105.6 113.6 28 Other securities.............................................. 207.2 216.3 29 Cash assets, total............................................ 178.2 218.6 30 Currency and coin...................................... 17.8 20.0 31 Reserves with Federal Reserve Banks 31.6 29.0 32 Balances with depository institutions . n.a. n.a. 66.4 n.a. n.a. 85.0 n.a. n.a. n.a. n.a. n.a. 33 Cash items in process of collection ... 62.4 84.7 34 Other assets2................................................... 204.3 222.7 35 Total assets/total liabilities and capital... 1,576.8 1,703.7 36 Deposits........................................................... 1,122.1 1,239.9 37 Demand....................................................... 388.8 453.6 38 Savings......................................................... 209.5 201.6 39 Time.............................................................. 523.9 584.7 40 Borrowings....................................................... 211.0 210.4 41 Other liabilities.............................................. 129.7 135.5 42 Residual (assets less liabilities).................. 113.9 117.9 Memo: 43 U.S. Treasury note balances included in borrowing................................................. 15.7 9.5 44 Number of banks.......................................... 15,084 15,120 1. Domestically chartered commercial banks include all commercial banks in the Note. Figures are partly estimated. They include all bank-premises subsidiaries United States except branches of foreign banks; included are member and non­ and other significant majority-owned domestic subsidiaries. Data for domestically member banks, stock savings banks, and nondeposit trust companies. chartered commercial banks are for the last Wednesday of the month; data for 2. Other assets include loans to U.S. commercial banks. other banking institutions are for last Wednesday except at end of quarter, when 3. Commercial banking institutions include domestically chartered commercial they are for the last day of the month. banks, branches and agencies of foreign banks. Edge Act and Agreement corpo­ rations, and New York State foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics □ June 1981 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures Account Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29p May 6 p May 13 p May 20p May 21 p 1 Cash items in process of collection................................... 60,389 53,140 62,605 55,882 55,348 56,257 54,165 53,486 59,887 2 Demand deposits due from banks in the United States .................................................................................. 21,624 19,832 21,230 18,762 19,504 19,536 19,680 19,684 19,618 3 All other cash and due from depository institutions.. 31,884 31,793 35,506 38,104 42,604 33,876 30,681 35,538 29,862 4 Total loans and securities......................................... 564,884 559,173 563,476 559,516 558,693 564,727 561,634 559,557 563,308 Securities 5 U.S. Treasury securities........................................................ 41,764 41,786 41,021 40,718 39,720 40,190 39,655 39,560 39,632 6 Trading account................................................................... 7,865 7,247 6,300 6,023 5,440 5,590 4,985 5,108 5,306 7 Investment account, by maturity................................. 33,898 34,539 34,720 34,695 34,280 34,600 34,671 34,452 34,326 8 One year or less.............................................................. 9,686 10,125 10,143 10,078 9,997 10,439 10,359 10,150 10,126 9 Over one through five years...................................... 20,641 20,488 20,651 20,666 20,447 20,367 20,531 20,484 20,393 10 Over five years................................................................ 3,571 3,926 3,926 3,951 3,836 3,794 3,781 3,817 3,807 11 Other securities....................................................................... 78,368 77,696 77,418 77,554 77,624 78,349 76,847 76,795 76,857 12 Trading account................................................................... 3,637 2,976 2,747 2,768 2,671 3,663 2,117 2,079 2,078 13 Investment account............................................................ 74,731 74,720 74,670 74,787 74,954 74,686 74,730 74,716 74,779 14 U.S. government agencies.......................................... 16,513 16,506 16,356 16,369 16,395 16,364 16,411 16,410 16,449 15 States and political subdivision, by maturity .... 55,394 55,397 55,472 55,546 55,668 55,525 55,527 55,495 55,555 16 One year or less.......................................................... 7,048 7,122 7,172 7,208 7,257 7,332 7,288 7,277 7,338 17 Over one year............................................................ 48,346 48,275 48,299 48,338 48,412 48,194 48,239 48,218 48,217 18 Other bonds, corporate stocks and securities.... 2,824 2,817 2,842 2,872 2,890 2,797 2,791 2,811 2,776 Loans 19 Federal funds sold1................................................................ 30,531 30,268 32,661 29,868 26,696 27,266 28,826 26,717 29,213 20 To commercial banks....................................................... 21,216 21,700 23,696 21,014 17,853 18,312 18,830 18,754 19,975 21 To nonbank brokers and dealers in securities......... 7,552 6,660 7,087 6,792 6,605 6,799 6,634 5,961 6,399 22 To others................................................................................ 1,762 1,907 1,877 2,062 2,238 2,155 3,361 2,002 2,840 23 Other loans, gross................................................................... 425,861 421,179 424,138 423,182 426,478 430,780 428,174 428,386 429,529 24 Commercial and industrial............................................... 172,741 171,169 171,061 172,200 174,450 176,872 175,530 174,862 175,448 25 Bankers acceptances and commercial paper......... 4,570 4,267 4,184 4,253 4,414 4,576 3,802 3,758 4,256 26 All other........................................................................... 168,171 166,902 166,877 167,947 170,035 172,296 171,727 171,104 171,192 27 U.S. addressees.......................................................... 160,782 159,826 159,812 160,911 162,849 165,009 164,290 163,818 163,863 28 Non-U.S. addressees................................................. 7,389 7,076 7,065 7,036 7.186 7,287 7,437 7,285 7,328 29 Real estate................................................................................ 114,515 114,607 114,840 115,132 115,320 115,439 116,020 116,214 116,352 30 To individuals for personal expenditures.................. 70,207 70,056 70,218 70,481 70,607 70,466 70,467 70,541 70,643 To financial institutions 31 Commercial banks in the United States................ 4,923 4,874 5,106 4,682 4,907 4,818 4,858 4,419 4,762 32 Banks in foreign countries.......................................... 8,584 8,677 8,402 8,291 8,056 8,452 8,346 9,047 9,039 33 Sales finance, personal finance companies, etc .. 9,517 9,638 9,650 9,667 10,086 10,180 9,906 9,926 9,775 34 Other financial institutions.......................................... 15,229 15.068 15,263 14,964 15,252 15,657 15,688 15,836 15,570 35 To nonbank brokers and dealers in securities......... 7,803 5,664 6,815 6,107 6,351 6,408 5,880 5,617 5,638 36 To others for purchasing and carrying securities2 .. 2,351 2,365 2,374 2,369 2,357 2,509 2,567 2,591 2,572 37 To finance agricultural..................................................... 5,497 5,502 5,567 5,561 5,589 5,654 5,710 5,761 5,780 38 All other................................................................................ 14,494 13,559 14,842 13,727 13,503 14,323 13,203 13,572 13,948 39 Less: Unearned income....................................................... 5,733 5,810 5,809 5,833 5,840 5,803 5,805 5,810 5,834 40 Loan loss reserve........................................................ 5,907 5,946 5,953 5,973 5,986 6,055 6,064 6,091 6,089 41Other loans, net....................................................................... 414,221 409,423 412,376 411,376 414,652 418,922 416,305 416,484 417,606 42 Lease financing receivables................................................. 10,120 10,130 10,112 10,145 10,154 10,130 10,186 10,214 10,232 43 All other assets....................................................................... 93,541 91,970 90,982 92,876 91,640 89,972 88,985 86,752 84,483 44 Total assets............................................................. 782,441 766,038 783,911 775,226 777,945 774,500 765,332 765,231 767,389 Deposits 45 Demand deposits..................................................................... 206,400 192,023 213,531 191,703 188,649 190,282 185,060 182,766 191,496 46 Mutual savings banks....................................................... 774 737 731 581 599 674 579 576 589 47 Individuals, partnerships, and corporations............. 139,814 131,582 140,671 131,679 128,823 129,194 127,776 125,055 130,924 48 States and political subdivisions.................................... 4,946 4,235 5,428 4,539 4,456 4,993 4,002 4,335 4,498 49 U.S. government................................................................ 1,005 1,986 7,845 2,864 2,880 1,829 1,183 3,099 1,132 50 Commercial banks in the United States.................... 38,438 35,735 39,196 33,794 32,839 35,125 35,266 32,788 36,019 51 Banks in foreign countries............................................... 8,797 7,650 8,802 8,306 8,400 7,848 7,615 8,159 9,195 52 Foreign governments and official institutions........... 1,940 1,944 2,043 1,966 1,987 1,992 1,470 1,271 1,558 53 Certified and officers’ checks........................................ 10,686 8,153 8,814 7,975 8,664 8,625 7,169 7,483 7,580 54 Time and savings deposits................................................... 321,791 321,928 322,952 323,316 322,988 326,510 328,552 330,727 321,744 55 Savings.................................................................................... 79,344 80,846 81,139 79,864 77,894 78,439 77,679 77,344 77,093 56 Individuals and nonprofit organizations................ 75,262 76,748 77,063 75,878 73,886 74,480 73,691 73,415 73,162 57 Partnerships and corporations operated for profit......................................................................... 3,433 3,471 3,400 3,379 3,394 3,341 3,311 3,265 3,300 58 Domestic governmental units................................... 631 607 661 590 597 596 655 640 610 59 AH other........................................................................... 18 20 16 18 17 21 22 24 21 60 Time......................................................................................... 242,447 241,082 241,812 243,452 245,094 248,070 250,873 253,382 254,650 61 Individuals, partnerships, and corporations......... 208,365 207,312 208,231 209,625 211,052 213,863 216,054 218,239 219,492 62 States and political subdivisions............................... 19,672 19,656 19.590 19,752 19,924 19,910 20,218 20,311 20,176 63 U.S. government............................................................ 282 283 264 228 228 233 257 253 255 64 Commercial banks in the United States................ 7,849 7,741 7,730 7,835 7,833 7,884 8,147 8,351 8,421 65 Foreign governments, official institutions, and banks ......................................................................... 6,279 6,090 5,996 6,011 6,057 6,180 6,196 6,228 6,307 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks.................. 1,122 138 2,739 741 7,478 965 2,530 2,352 369 67 Treasury tax-and-loan notes.......................................... 8,901 1,871 660 11,468 12,536 10,008 8,742 3,994 3,542 68 All other liabilities for borrowed money3.................. 128,796 136,329 130,600 131,350 128,691 129,504 122,597 124,736 121,908 69 Other liabilities and subordinated notes and debentures......................................................................... 63,926 62,238 62,105 65,428 66,479 65,571 66,139 69,178 66,764 70 Total liabilities........................................................ 730,936 714,527 732,587 724,005 726,821 722,840 713,621 713,753 715,822 71 Residual (total assets minus total liabilities)4............... 51,505 51,511 51,324 51,220 51,123 51,660 51,711 51,478 51,567 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. 3. Includes federal funds purchased and securities sold under agreements to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A19 1.27 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures Account Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29p May. 6p May 13 p May 20 p May 21 p 1 Cash items in process of collection.................................... 57,386 50,342 59,105 52,409 52,165 53,382 51,273 50,775 56,554 2 Demand deposits due from banks in the United States .................................................................................. 20,833 19,151 20,463 18,023 18,855 18,814 19,097 18,825 18,834 3 All other cash and due from depository institutions.. 29,695 29,842 33,482 35,489 39,948 31,915 28,586 33,172 27,596 4 Total loans and securities............................................. 527,247 521,345 525,504 521,989 521,754 526,983 524,639 522,644 526,481 Securities 5 U.S. Treasury securities........................................................ 38,420 38,386 37,622 37,276 36,264 36,752 36,214 36,146 36,231 6 Trading account................................................................... 7,748 7,150 6,204 5,933 5,370 5,525 4,917 5,046 5,244 7 Investment account, by maturity................................. 30,672 31,235 31,418 31,342 30,894 31,227 31,296 31,100 30,987 8 One year or less.............................................................. 8,994 9,425 9,439 9,299 9,813 9,603 9,545 9,354 9,330 9 Over one through five years...................................... 18,482 18,265 18,428 18,467 18,250 18,199 18,346 18,315 18,233 10 Over five years................................................................ 3,196 3,545 3,552 3,577 3,461 3,425 3,406 3,431 3,424 11 Other securities....................................................................... 71,996 71,353 71,152 71,281 71,361 72,105 70,636 70,563 70,635 12 Trading account................................................................... 3,553 2,900 2,679 2,699 2,583 3,571 2,061 2,005 2,017 13 Investment account............................................................ 68,443 68,453 68,473 68,582 68,779 68,534 68,575 68,558 68,618 14 U.S. government agencies.......................................... 15,238 15,227 15,142 15,159 15,199 15,177 15,225 15,234 15,272 15 States and political subdivision, by maturity .... 50,553 50,580 50,659 50,722 50,861 50,731 50,731 50,690 50,747 16 One year or less.......................................................... 6,358 6,443 6,489 6,516 6,555 6,638 6,596 6,587 6,652 17 Over one year............................................................ 44,195 44,136 44,170 44,207 44,306 44,093 44,135 44,103 44,095 18 Other bonds, corporate stocks and securities.... 2,652 2,647 2,671 2,701 2,718 2,626 2,620 2,634 2,599 Loans 19 Federal funds sold1................................................................ 27,189 26,734 28,956 26,768 24,144 23,960 26,187 24,238 26,767 20 To commercial banks........................................................ 18,366 18,632 20,523 18,448 15,779 15,652 16,787 16,826 18,037 21 To nonbank brokers and dealers in securities......... 7,081 6,214 6,580 6,281 6,145 6,181 6,058 5,438 5,918 22 To others................................................................................ 1,742 1,888 1,854 2,039 2,220 2,127 3,342 1,974 2,812 23 Other loans, gross................................................................... 400,307 395,652 398,554 397,485 400,830 405,043 402,484 402,609 402,785 24 Commercial and industrial............................................... 163,930 162,391 162,274 163,312 165.580 167,993 166,638 165,939 166,567 25 Bankers acceptances and commercial paper......... 4,392 4,080 4,010 4,078 4,231 4,398 3,631 3,587 4,087 26 All other........................................................................... 159,538 158,311 158,264 159,234 161,350 163,595 163,006 162,352 162,481 27 U.S. addressees.......................................................... 152,222 151,310 151,268 152,266 154,230 156,375 155,638 155,136 155,221 28 Non-U.S. addressees................................................. 7,316 7,001 6,996 6,967 7,119 7,220 7,368 7,216 7,259 29 Real estate........................................................................... 108,050 108,101 108,301 108,578 108,787 108,916 109,462 109,648 109,800 30 To individuals for personal expenditures.................. 61,785 61,648 61,808 62,033 62,124 61,980 61,992 62,048 62,145 To financial institutions 31 Commercial banks in the United States................ 4,809 4,766 5,001 4,573 4,807 4,713 4,752 4,314 4,663 32 Banks in foreign countries.......................................... 8,522 8,612 8.316 8,185 8,006 8,380 8,287 8,977 8,969 33 Sales finance, personal finance companies, etc .. 9,357 9,480 9,497 9,518 9,943 10,036 9,756 9,774 9,623 34 Other financial institutions.......................................... 14,868 14,720 14,911 14,604 14,894 15,289 15,320 15,462 15,196 35 To nonbank brokers and dealers in securities......... 7,719 5,574 6,721 6,020 6,250 6,320 5,797 5,534 5,552 36 To others for purchasing and carrying securities2 .. 2,138 2,154 2,170 2,164 2,152 2,302 2,365 2,392 2,376 37 To finance agricultural production............................... 5,360 5,364 5,428 5,421 5,449 5,511 5,566 5,617 5,632 38 All other................................................................................ 13,769 12,841 14,126 13,075 12,838 13,601 12,548 12,904 13,261 39 Less: Unearned income....................................................... 5,106 5,180 5,176 5,197 5,210 5,172 5,168 5,172 5,200 40 Loan loss reserve....................................................... 5,560 5,599 5,604 5,625 5,637 5,705 5,714 5,741 5,737 41 Other loans, net....................................................................... 389,641 384,873 387,774 386,664 389,984 394,166 391,602 391,696 392,848 42 Lease financing receivables................................................. 9,838 9,848 9,822 9,855 9,864 9,840 9,897 9,924 9,940 43 All other assets....................................................................... 90,742 89,298 88,381 90,211 88,812 87,222 86,287 84,131 81,705 44 Total assets................................................................... 735,741 719,826 736,757 727,976 731,399 728,156 719,780 719,471 721,110 Deposits 45 Demand deposits..................................................................... 194,026 180,190 200,420 179,029 176,588 178,451 173,661 171,165 179,466 46 Mutual savings banks........................................................ 744 707 697 554 577 642 552 550 561 47 Individuals, partnerships, and corporations............. 130,291 122,332 130,866 122,224 119,683 119,958 118,689 115,922 121,546 48 States and political subdivisions.................................... 4,354 3,724 4,862 3,936 3,901 4,400 3,532 3,784 3,968 49 U.S. government................................................................ 865 1,709 7,078 2,106 2,220 1,628 1,082 2,839 1,005 50 Commercial banks in the United States.................... 36,805 34,358 37,707 32,337 31,553 33,729 33,929 31,498 34,396 51 Banks in foreign countries............................................... 8,717 7,576 8,725 8,234 8,324 7,770 7,536 8,067 9,119 52 Foreign governments and official institutions........... 1,924 1,942 2,042 1,964 1,983 1,989 1,459 1,270 1,556 53 Certified and officers’ checks........................................ 10,327 7,842 8,442 7,673 8,348 8,333 6,881 7,235 7,314 54 Time and savings deposits................................................... 300,228 300,362 301,566 302,035 301,827 305,156 307,131 309,136 310,085 55 Savings.................................................................................... 73,286 74,629 74,813 73,688 71,903 72,407 71,717 71,420 71,196 56 Individuals and nonprofit organizations................ 69,529 70,862 71,114 70,018 68,220 68,768 68,042 67,799 67,571 57 Partnerships and corporations operated for profit......................................................................... 3,162 3,201 3,133 3,115 3,126 3,082 3,052 3,010 3,040 58 Domestic governmental units.................................... 577 546 550 536 540 536 601 587 564 59 All other........................................................................... 18 20 16 18 17 21 22 24 21 60 Time......................................................................................... 226,942 225,733 226,753 228,347 229,924 232,749 235,414 237,715 238,889 61 Individuals, partnerships, and corporations......... 195,055 194,108 195,237 196,585 197,999 200,653 202,700 204,729 205,895 62 States and political subdivisions............................... 17,828 17,856 17,865 18,023 18,154 18,139 18,463 18,512 18,376 63 U.S. government............................................................ 264 264 246 210 207 212 237 235 236 64 Commercial banks in the United States................ 7,516 7,416 7,408 7,519 7,506 7,565 7,817 8,011 8,075 65 Foreign governments, official institutions, and banks ......................................................................... 6,279 6,090 5,996 6,011 6,057 6,180 6,196 6,228 6,307 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks.................. 1,083 133 2,679 711 7,176 951 2,411 2,054 302 67 Treasury tax-and-loan notes.......................................... 8,335 1,716 586 10,710 11,662 9,318 8,134 3,687 3,304 68 All other liabilities for borrowed money3.................. 121,555 128,451 122,811 123,646 121,383 121,883 115,426 117,620 114,606 69 Other liabilities and subordinated notes and debentures..................................................................... 62,402 60,809 60,732 63,989 65,046 64,123 64,708 67,698 65,169 70 Total liabilities.............................................................. 687,630 671,662 668,794 680,121 683,681 679,881 671,471 671,361 672,932 71 Residual (total assets minus total liabilities)4................ 48,112 48,164 47,963 47,855 47,717 48,275 48,309 48,110 48,178 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. 3. Includes federal funds purchased and securities sold under agreement to re­ purchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics □ June 1981 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1981 Account Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29p May bP May 13 p May 20p May 27 p 1 Cash items in process of collection................................... 24.500 20.788 24.272 20.915 21.805 22.135 19.698 19.706 20.653 2 Demand deposits due from banks in the United States .................................................................................. 15.457 13.946 14.942 12.757 13.486 13.249 14.545 13.859 12.866 3 All other cash and due from depository institutions.. 8.016 7.980 9.634 8.114 9.721 10.070 7.139 8.348 5.275 4 Total loans and securities*.............................................. 127,325 123,605 127,576 126,513 126,725 127,833 128,544 127,644 128,801 Securities 7 Investment account, by maturity................................. 8.385 8.753 8.935 8.937 8.735 9.082 9.172 9.152 9.074 8 One year or less.............................................................. 1.771 2.068 2.115 2.100 2.079 2.379 2.352 2.320 2,313 9 Over one through five years..................................... 6.046 5.818 5.941 5.933 5.831 5.928 6.045 6.045 6.000 10 Over five years................................................................ 568 867 879 904 824 775 775 787 761 13 Investment account............................................................ 13.851 13.916 14.001 14.028 14.031 14.084 14.116 14.125 14.162 14 U.S. government agencies.......................................... 2.635 2.634 2.637 2.648 2.637 2.648 2.648 2.628 2,621 15 States and political subdivision, by maturity .... 10.596 10.645 10.722 10.736 10.756 10.814 10.844 10.849 10.884 16 One year or less......................................................... 1.362 1.412 1.437 1.460 1.484 1.524 1.558 1.575 1.604 17 Over one vear............................................................ 9.234 9.232 9.285 9.276 9.272 9.290 9.286 9.274 9.279 18 Other bonds, corporate stocks and securities. .. . 621 638 642 643 638 622 623 648 658 Loans 19 Federal funds sold^................................................................ 7.793 6.547 8.638 8.764 8.034 7.069 8.994 8.251 9.017 20 To commercial banks....................................................... 3.569 2.829 4.636 4.707 3.751 2.812 4.302 4.673 4.502 21 To nonbank brokers and dealers in securities......... 3.678 3.079 3.276 3.270 3.323 3.365 3.294 2.721 3.448 22 To others................................................................................ 545 640 726 787 960 891 1.398 857 1.067 23 Other loans, gross.................................................................. 100.319 97.462 99.083 97.880 99.043 100.709 99.374 99.269 99.690 24 Commercial and industrial.............................................. 51.025 50.323 50.124 50.642 51.431 52.120 51.385 50.956 51.347 25 Bankers acceptances and commercial paper......... 1.494 1.240 1.068 1.156 1.248 1.198 870 936 1.060 26 All other........................................................................... 49.532 49.083 49.055 49.485 50.183 50.922 50.515 50.019 50.288 27 U.S. addressees......................................................... 46.942 46.562 46.623 47.058 47.661 48.385 48.028 47.472 47.714 28 Non-U.S. addressees................................................. 2.590 2.521 2.432 2.427 2.522 2.537 2.486 2.547 2.574 29 Real estate........................................................................... 15.432 15.448 15.469 15.502 15.549 15.596 15.770 15.806 15,866 30 To individuals for personal expenditures.................. 9.550 9.548 9.566 9.699 9.700 9.724 9.767 9.805 9.829 31 To financial institutions Commercial banks in the United States............... 1.205 1.274 1.459 1.355 1.373 1.334 1.250 888 1.172 32 Banks in foreign countries.......................................... 4.251 4.409 4.077 4.073 3.804 4.090 4.024 4.696 4.656 33 Sales finance, personal finance companies, etc... 3.954 4.081 4.079 3.894 4.174 4.300 3.935 4.083 3.983 34 Other financial institutions.......................................... 4.399 4.221 4.231 4.167 4.203 4.388 4.537 4.488 4.543 35 To nonbank brokers and dealers in securities......... 5.370 3.359 4.512 3.743 3.780 3.811 3.645 3.375 3.226 36 To others for purchasing and carrying securities4 .. 497 483 489 482 486 622 635 620 618 37 To finance agricultural production............................... 458 442 448 434 434 431 434 454 449 38 All other................................................................................ 4.178 3.874 4.628 3.889 4.109 4.291 3.992 4.097 4.000 39 Less: Unearned income....................................................... 1.171 1.217 1.210 1.222 1.238 1.218 1.212 1.223 1.238 40 Loan loss reserve....................................................... 1.852 1.856 1.871 1.873 1.880 1.894 1.900 1.909 1.904 41 Other loans, net....................................................................... 97.296 94.389 96.001 94.784 95.926 97.597 96.263 96.137 96.548 42 Lease financing receivables................................................. 2.251 2.253 2 252 2.254 2.255 2.252 2.246 2.247 2.248 43 All other assets?....................................................................... 41.025 39.285 35.721 37.588 36.531 35.708 33.796 33.501 32.158 44 Total assets........................................................................ 218,575 207,858 214,397 208,141 210,523 211,247 205,968 205,326 202,001 Deposits 45 Demand deposits..................................................................... 74.168 65.830 75.578 64.838 64.827 66.281 63.612 62.396 64.631 46 Mutual savings banks....................................................... 398 391 376 277 295 343 304 305 291 47 Individuals, partnerships, and corporations............. 36.998 32.272 34.904 31.849 31.422 32.369 30.043 30.100 32.276 48 States and political subdivisions................................... 470 379 908 362 368 494 351 426 356 49 U.S. government................................................................ 155 373 2.539 744 605 352 452 731 193 50 Commercial banks in the United States.................... 22.134 21.264 24.035 19.791 19.540 20.536 22.277 20.067 19.328 51 Banks in foreign countries.............................................. 6.945 5.959 6.962 6.381 6.587 6.157 5.844 6.303 7.259 52 Foreign governments and official institutions........... 1.633 1.546 1.736 1.629 1.626 1.698 1.229 984 1.299 53 Certified and officers' checks ........................................ 5.434 3.646 4.118 3.805 4.383 4.332 3.111 3.479 3.629 54 Time and savings deposits................................................... 56.985 57.220 58.003 57.798 57.480 58.197 58.608 58.353 57,826 55 Savings.................................................................................... 9.560 9.811 9.908 9.727 9.427 9.454 9.470 9.385 9.399 56 Individuals and nonprofit organizations............... 9.171 9.414 9.511 9.341 9.044 9.062 9.022 8.967 8.966 57 Partnerships and corporations operated for profit......................................................................... 279 278 278 277 272 271 272 272 280 58 Domestic governmental units................................... 108 114 116 106 107 118 173 141 149 59 All other........................................................................... 2 4 2 3 7 3 3 5 3 60 Time......................................................................................... 47.424 47.409 48.096 48.070 48.053 48.743 49.139 48.968 48.428 61 Individuals, partnerships, and corporations......... 40.423 40.438 41.061 40.975 40.791 41.396 41.776 41.692 41.170 62 States and political subdivisions............................... 1.606 1.598 1.636 1.685 1.797 1.806 1.829 1.784 1.706 63 U.S. government............................................................ 37 37 33 33 38 52 51 46 46 64 Commercial banks in the United States............... 2.481 2.498 2.538 2.540 2.568 2.533 2.566 2.524 2,527 65 Foreign governments, official institutions, and banks ......................................................................... 2,876 2.838 2.827 2.837 2.859 2.955 2.917 2.922 2.978 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks.................. 1.860 315 3.162 430 894 67 Treasury tax-and-loan notes.......................................... 2.249 473 149 2.983 3.019 2.405 940 1.041 68 All other liabilities for borrowed money'1.................. 44.770 44.674 38.925 39.540 40.005 41.455 38.158 40.256 37.114 69 Other liabilities and subordinated notes and debentures......................................................................... 24.307 23.576 23.900 26.775 26.299 26.398 26.367 27.355 25.375 70 Total liabilities.................................................................. 202,479 191,774 198,417 192,249 194,793 195,166 189,864 189,301 185,988 71 Residual (total assets minus total liabilities)4............... 16.096 16.084 15.980 15.892 15.730 16.081 16.104 16.025 16,013 1. Excludes trading account securities. 5. Includes trading account securities. 2. Not available due to confidentiality. 6. Includes federal funds purchased and securities sold under agreements to 3. Includes securities purchased under agreements to resell. repurchase 4. Other than financial institutions and brokers and dealers. 7. This is not a measure of equity capital for use in capital adequacy analysis or for other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1981 Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29p May 6p May 13 p May 20p May 27 p Banks with Assets of $750 Million or More 1 Total loans (gross} and securities adjusted1.................. 550,385 544,355 546,434 545,626 547,759 553,455 549,815 548,285 550,494 2 Total loans (gross) adjusted1............................................... 430,253 424,872 427,996 427,353 430,414 434,916 433,312 431,930 434,005 3 Demand deposits adjusted2................................................. 106,568 101,162 103,885 99,223 97,582 97,070 94,446 93,392 94,457 4 Time deposits in accounts of $100,000 or more........... 156,168 155,329 155,592 157,279 158,909 161,485 164,016 165,729 166,788 5 Negotiable CDs................................................................... 111,537 110,966 111,653 113,051 114,195 116,126 118,038 119,009 120,051 6 Other time deposits............................................................ 44,631 44,363 43,938 44,227 44,714 45,358 45,978 46,720 46,738 7 Loans sold outright to affiliates3........................................ 2,730 2,710 2,716 2,691 2,748 2,705 2,754 2,778 2,773 8 Commercial and industrial............................................... 1,842 1,849 1,846 1,854 1,880 1,869 1,917 1,946 1,942 9 Other....................................................................................... 889 861 870 838 868 836 838 831 831 Banks with Assets of $1 Billion or More 10 Total loans (gross) and securities adjusted1.................. 514,738 508,727 510,761 509,789 512,014 517,495 513,981 512,416 514,719 11 Total loans (gross) adjusted1............................................... 404,322 398,988 401,987 401,232 404,388 408,638 407,131 405,707 407,853 12 Demand deposits adjusted2................................................. 98,971 93,781 96,530 92,178 90,650 89,711 87,377 86,053 87,511 13 Time deposits in accounts of $100,000 or more........... 147,495 146,778 147,358 149,025 150,583 153,049 155,454 157,009 157,988 14 Negotiable CDs................................................................... 105,529 105,049 106,021 107,374 108,492 110,339 112,167 113,024 113,990 15 Other time deposits.............................................. 41,966 41,728 41,338 41,651 42,091 42,709 43,287 43,985 43,997 16 Loans sold outright to affiliates3........................................ 2,692 2,675 2,680 2,647 2,692 2,654 2,697 2,726 2,718 17 Commercial and industrial............................................... 1,813 1,822 1,819 1,823 1,842 1,828 1,868 1,904 1,896 18 Other....................................................................................... 880 852 862 824 850 826 829 822 822 Banks in New York City 19 Total loans (gross) and securities adjusted1-4................ 125,575 122,576 124,562 123,547 124,718 126,798 126,104 125,236 126,269 20 Total loans (gross) adjusted1............................................... 103,338 99,907 101,626 100,582 101,953 103,631 102,816 101,959 103,032 21 Demand deposits adjusted2................................................. 27,379 23,406 24,733 23,388 22,877 23,258 21,184 21,892 24,457 22 Time deposits in accounts of $100,000 or more........... 36,907 36,950 37,688 37,763 37,775 38,383 38,667 38,302 37,728 23 Negotiable CDs................................................................... 27,358 27,416 28,194 28,301 28,308 28,666 28,908 28,507 28,020 24 Other time deposits............................................................ 9,548 9,533 9,494 9,463 9,467 9,717 9,759 9,795 9,708 1. Exclusive of loans and federal funds transactions with domestic commercial 3. Loans sold are those sold outright to a bank’s own foreign branches, non­ banks. consolidated nonbank affiliates of the bank, the bank’s holding company (if not a 2. All demand deposits except U.S. government and domestic banks less cash bank), and nonconsolidated nonbank subsidiaries of the holding company. items in process of collection. 4. Excludes trading account securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Financial Statistics □ June 1981 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during Industry classification 1981 1980 1981 1981 Jan. 28 Feb. 25 Mar. 25 Apr. 29 May 27 p 04 01 Mar. Apr. May p 1 Durable goods manufacturing.................. 24.383 24.472 24.654 24.570 24.623 1.170 -30 182 -84 52 2 Nondurable goods manufacturing......... 19.359 18.937 19.401 19.845 20.266 974 - 1.104 464 444 421 3 Food, liquor, and tobacco.................... 4.915 4.529 4.580 4.409 4.577 1.041 -807 52 -171 168 4 Textiles, apparel, and leather............. 4.096 4.364 4.351 4.469 4.603 - 1.054 200 -13 118 134 5 Petroleum refining................................. 3.185 2.929 2.982 3.298 3.457 950 - 655 53 316 159 6 Chemicals and rubber........................... 3.782 3.673 3.838 4.036 3.957 184 -80 165 198 -79 7 Other nondurable goods...................... 3.381 3.442 3.650 3.633 3.672 - 147 237 208 -18 40 8 Mining (including crude petroleum and natural gas).................................... 16.251 15.935 15.750 16.752 17.182 2.470 -677 -185 1.002 430 9 Trade................................................................ 25.550 25.242 25.617 26.778 26.306 1.290 -622 375 1.160 -472 10 Commodity dealers................................. 2.116 1.874 1.950 2.337 1.865 444 -613 76 387 -472 11 Other wholesale...................................... 12.055 11,704 11.875 12.244 12.023 707 -417 170 369 -221 12 Retail............................................................ 11.378 11.663 11.792 12.196 12.418 139 409 129 404 222 13 Transportation, communication. and other public utilities.................. 20.741 20.270 19.973 20.338 20.403 2.081 - 1.330 -297 365 65 14 Transportation.......................................... 8.254 8.139 8.107 8.156 8.343 639 -264 -32 49 187 15 Communication........................................ 3.184 3.097 3.160 3.275 3.462 326 - 160 63 115 186 16 Other public utilities............................... 9.303 9.033 8.705 8.906 8.597 1.116 -906 -328 201 -308 17 Construction................................................... 5.950 6.109 6.225 6.446 6.988 -35 232 116 221 542 18 Services............................................................ 23.242 23.528 23.611 24.074 24.422 1.548 752 83 463 347 19 All other2....................................................... 15.775 15.817 15.181 15.426 15.031 1.166 -1.728 -636 245 -395 20 Total domestic loans.................................... 151,252 150,310 150,413 154,230 155,221 10,665 -4,508 103 3,817 991 21 Memo: Term loans (original maturity more than 1 year) included in do­ mestic loans.......................................... 81.794 80.147 79.298 80.333 82.441 5.247 -2.482 -849 1,036 2,108 1. Adjustment bank amounts represent accumulated adjustments originally made Note. New series. The 134 large weekly reporting commercial banks with do­ to offset the cumulative effects of mergers. These adjustment amounts should be mestic assets of $1 billion or more as of December 31. 1977. are included in this added to outstanding data for any date in the year to establish comparability with series. Thc revised series is on a last-Wednesday-of-the-month basis. Partly esti­ any date in the subsequent year. Changes shown have been adjusted for these mated historical data are available from the Banking Section. Division of Research amounts. and Statistics. Board of Governors of the Federal Reserve System, Washington. 2. Includes commercial and industrial loans at a few banks with assets of $1 D C.. 20551. billion or more that do not classify their loans. NOTES TO TABLE 1.31 1. Figures include cash items in process of collection. Estimates of gross deposits 4. After the end of 1978 the large weekly reporting bank panel was changed to are based on reports supplied by a sample of commercial banks. Types of depositors 170 large commercial banks, each of which had total assets in domestic offices in each category are described in the June 1971 Bulletin, p. 466. exceeding $750 million as of Dec. 31. 1977. See “Announcements,” p. 408 in the 2. Beginning with the March 1979 survey, the demand deposit ownership survey May 1978 Bulletin. Beginning in March 1979. demand deposit ownership esti­ sample was reduced to 232 banks from 349 banks, and the estimation procedure mates for these large banks are constructed quarterly on the basis of 97 sample was modified slightly. To aid in comparing estimates based on the old and new banks and are not comparable with earlier data. The following estimates in billions reporting sample, the following estimates in billions of dollars for December 1978 of dollars for December 1978 have been constructed for the new large-bank panel: have been constructed using the new smaller sample: financial business. 27.0; financial business. 18.2; nonfinancial business. 67.2; consumer. 32.8; foreign, 2.5: nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other. 15.1. other. 6.8. 3. Demand deposit ownership data for March 1981 are subject to greater than normal errors reflecting unusual reporting difficulties associated with funds shifted to NOW accounts authorized at year-end 1980. For the household category, the $15.7 billion decline in demand deposits at all commercial banks between December 1980 and March 1981 has an estimated standard error of $4.8 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deposits and Commercial Paper A23 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks Type of holder 19792 1980 1981 1975 1976 1977 1978 Dec. Dec. Dec. Dec. Dec. Mar. June Sept. Dec. Mar.3 1 All holders—Individuals, partnerships, and corporations................................................... 236.9 250.1 274.4 294.6 302.2 288.4 288.6 302.0 315.5' 280.8 2 Financial business.................................................. 20.1 22.3 25.0 27.8 27.1 28.4 27.7 29.6 29.8 30.8 3 Nonfinancial business............................................. 125.1 130.2 142.9 152.7 157.7 144.9 145.3 151.9 162.3 144.3 4 Consumer.............................................................. 78.0 82.6 91.0 97.4 99.2 97.6 97.9 101.8 102.4 r 86.7 5 Foreign................................................................. 2.4 2.7 2.5 2.7 3.1 3.1 3.3 3.2 3.3 3.4 6 Other.................................................................... 11.3 12.4 12.9 14.1 15.1 14.4 14.4 15.5 17.2' 15.6 Weekly reporting banks 19794 1980 1981 1975 1976 1977 1978 Dec. Dec. Dec. Dec. Dec. Mar. June Sept. Dec. Mar. 7 All holders—Individuals, partnerships, and corporations................................................... 124.4 128.5 139.1 147.0 139.3 133.6 133.9 140.6 147.4 133.2 8 Financial business.................................................. 15.6 17.5 18.5 19.8 20.1 20.1 20.2 21.2 21.8' 21.9 9 Nonfinancial business............................................. 69.9 69.7 76.3 79.0 74.1 69.1 69.2 72.4 78.3' 69.8 10 Consumer.............................................................. 29.9 31.7 34.6 38.2 34.3 34.2 33.9 36.0 35.6' 30.6 11 Foreign................................................................. 2.3 2.6 2.4 2.5 3.0 3.0 3.1 3.1 3.1 3.2 12 Other.................................................................... 6.6 7.1 7.4 7.5 7.8 7.2 7.5 7.9 8.6' 7.7 For notes see bottom of page A22. 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1980 1981 Instrument 1977 1978 19791 1980 Dec. Dec. Dec. Dec. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Commercial paper (seasonally adjusted) 1 All issuers............................................ 65,051 83,438 112,809 125,148 123,009 124,606 125,148 128,656 130,306 132,702 134,229 Financial companies2 Dealer-placed paper3 2 Total................................................ 8,796 12,181 17,377 19.631 19,062 19,591 19,631 19,886 20,859 22,643 24,206 3 Bank-related.................................... 2,132 3,521 2,874 3.561 3,442 3,436 3,561 3,670 3,742 4,163 4,437 Directly placed paper4 4 Total................................................ 40,574 51,647 64,748 67.888 66,612 67,340 67,888 68,956 68,936 69,461 69,537 5 Bank-related.................................... 7,102 12,314 17,598 22.382 21,146 21,939 22,382 22,570 22,331 21,604 22,858 6 Nonfinancial companies5...................... 15,681 19,610 30,684 37.629 37,335 37,675 37,629 39,814 40,511 40,598 40,486 Bankers dollar acceptances (not seasonally adjusted) 7 Total................................................... 25,450 33,700 45,321 54,744 56,610 55,226 54,744 54,465 58,084 60,089 62,320 Holder 8 Accepting banks.................................. 10,434 8,579 9,865 10.564 11,317 10,236 10,564 9,371 9,911 10,117 10,781 9 Own bills......................................... 8,915 7,653 8,327 8,963 9,808 8,837 8,963 7,951 8,770 8,735 9,626 10 Bills bought...................................... 1,519 927 1,538 1.601 1,509 1,399 1,601 1,420 1,141 1,382 1,155 Federal Reserve Banks 11 Own account.................................... 954 1 704 776 566 523 776 0 0 298 0 12 Foreign correspondents..................... 362 664 1,382 1.791 1,915 1,852 1,791 1,771 1,399 1,372 1,383 13 Others.................................................. 13,700 24,456 33,370 41,614 42,813 42,616 41,614 43,323 46,779 48,303 50,156 Basis 14 Imports into United States................... 6,378 8,574 10,270 11.776 12,254 11,774 11,776 11,903 12,976 13,292 13,634 15 Exports from United States................. 5,863 7,586 9,640 12.712 13,445 13,670 12,712 12,816 12,979 13,451 13,368 16 All other.............................................. 13,209 17,540 25,411 30.257 30,911 29,782 30,257 29,746 32,129 33,347 35,319 1. A change in reporting instructions results in offsetting shifts in the dealer- 3. Includes all financial company paper sold by dealers in the open market. placed and directly placed Financial company paper in October 1979. 4. As reported by financial companies that place their paper directly with inves­ 2. Institutions engaged primarily in activities such as, but not limited to, com­ tors. mercial, savings, and mortgage banking; sales, personal, and mortgage financing; 5. Includes public utilities and firms engaged primarily in such activities as com­ factoring, finance leasing, ana other business lending; insurance underwriting; and munications, construction, manufacturing, mining, wholesale and retail trade, other investment activities. transportation, and services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Financial Statistics □ June 1981 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Rate Month Average Month Average rate rate 1980—Dec. 10............... 20.00 1981—Mar. 10............... 18.00 15.25 1980—Oct........................ 13.79 16............... 21.00 17............... 17.50 Feb........................ 15.63 16.06 19............... 21.50 Apr. 2............... 17.00 18.31 20.35 24................ 17.50 19.77 1981—Jan. 2................. 20.50 30................. 18.00 May...................... 16.57 1981—Jan........................ 20.16 9................. 20.00 May 4................. 19.00 June ..................... 12.63 Feb........................ 19.43 Feb. 3................. 19.50 11................. 19.50 July...................... 11.48 Mar....................... 18.05 23................. 19.00 19................. 20.00 Aug....................... 11.12 Apr....................... 17.15 22................. 20.50 Sept....................... 12.23 May..................... 19.61 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 2-7, 1981 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)....................... 16,985,777 817.631 521,319 918,372 2,501,018 751,196 11,476,241 2 Number of loans............................................................. 158,959 111.775 15,982 14,711 13,165 1,192 2,135 3 Weighted-average maturity (months)........................... 1.9 3.3 3.7 4.2 3.6 3.8 1.1 4 Weighted-average interest rate (percent per annum) . 19.91 19.59 19.53 19.77 20.18 20.87 19.83 5 Interquartile range1................................................... 19.12-21.25 17.23-21.94 18.00-21.84 18.77-22.13 19.28-22.51 20.00-21.94 19.18-20.32 Percentage of amount of loans 6 With floating rate........................................................... 38.7 31.0 29.4 42.9 55.6 77.6 33.1 7 Made under commitment............................................. 43.0 23.9 22.1 37.6 39.7 65.8 44.9 8 With no stated maturity............................................... 18.1 10.2 11.7 24.6 18.0 36.9 17.2 Long-Term Commercial and Industrial Loans 9 Amount of loans (thousands of dollars)....................... 2,106,841 238,914 297.407 161,491 1,409,030 10 Number of loans............................................................. 19,309 17,320 1,355 245 389 11 Weighted-average maturity (months).......................... 47.8 33.4 61.8 40.1 48.2 12 Weighted-average interest rate (percent per annum) . 19.26 19.06 19.31 20.48 19.14 13 Interquartile range1................................................... 17.92-21.00 17.00-21.00 16.25-21.00 20.00-21.86 18.28-20.75 Percentage of amount of loans 14 With floating rate........................................................... 73.8 39.4 88.1 85.0 75.4 15 Made under commitment............................................. 76.9 33.5 49.7 77.7 89.9 Construction and Land Development Loans 16 Amount of loans (thousands of dollars)....................... 584,021 55.418 124,270 68,475 133,859 201,999 17 Number of loans............................................................ 12,681 7.442 3,324 1,107 648 160 18 Weighted-average maturity (months).......................... 10.4 6.3 9.9 6.7 11.4 12.4 19 Weighted-average interest rate (percent per annum) . 19.40 18.76 17.40 17.92 20.20 20.77 20 Interquartile range1................................................... 16.00-22.19 16.64-21.50 13.65-22.04 13.28-21.94 20.00-22.50 20.50-22.19 Percentage of amount of loans 21 With floating rate........................................................... 63.9 36.0 31.2 42.1 70.5 94.8 22 Secured by real estate................................................... 89.1 91.9 87.9 94.3 79.7 93.6 23 Made under commitment............................................. 74.5 57.7 84.4 77.0 73.8 72.7 24 With no stated maturity............................................... 10.7 28.6 3.8 6.2 14.0 9.5 Type of construction 25 1-to 4-family.................................................................. 40.3 77.4 54.2 63.7 25.4 23.4 26 Multifamily.................................................................... 15.1 4.7 2.1 9.3 15.0 27.9 27 Nonresidential................................................................ 44.7 18.0 43.7 27.0 59.6 48.7 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over Loans to Farmers 28 Amount of loans (thousands of dollars)....................... 1,083,356 147,558 166,464 200,977 153,148 204,451 210,756 2 3 9 0 N W u e m ig b h e te r d o - f a l v o e a r n ag s e .. . m .... a . t . u .. r .. i . t . y .. . ( .. m ... o ... n .. t . h .. s .. ) . . . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . . . 60,7 6 6 .2 9 39,2 6 4 . 9 4 11,3 6 3 .2 9 5,8 5 7 . 1 9 2,4 6 5 . 6 8 1,4 4 5 . 7 8 3 7 9 .5 8 31 Weighted-average interest rate (percent per annum) . 17.92 17.36 17.71 17.52 17.85 17.92 18.94 32 Interquartile range1................................................... 16.21-19.25 16.10-18.27 16.21-18.81 16.10-18.50 16.46-19.25 16.61-18.81 15.69-20.84 By purpose of loan 33 Feeder livestock............................................................ 17.79 17.54 17.87 18.14 17.37 16.81 18.55 34 Other livestock......................................................... 17.45 16.34 18.06 17.20 17.85 35 Other current operating expenses................................ 17.91 17.42 17.72 17.36 17.53 36 Farm machinery and equipment.................................. 17.37 17.52 17.16 17.58 17.66 (2) 37 Other ............................................................................. 18.31 17.63 17.85 17.22 18.84 18.06 2ol 1. Interest rate range that covers the middle 50 percent of the total dollar amount Note. For more detail, see the Board’s E.2(111) statistical release, of loans made. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A25 1.35 INTEREST RATES Money and Capital Markets Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted. 1981 1981, week ending Instrument 1978 1979 1980 Feb. Mar. Apr. May May 1 May 8 May 15 May 22 May 29 Money Market Rates 1 Federal funds1-2................................................. 7.93 11.19 13.36 15.93 14.70 15.72 18.52 16.28 18.91 18.21 18.89 18.71 Commercial paper3-4 2 1-month............................................................ 7.76 10.86 12.76 15.81 14.15 14.79 17.91 15.70 18.08 18.40 18.07 17.13 3 3-month............................................................ 7.94 10.97 12.66 15.49 13.94 14.56 17.56 15.39 17.70 18.10 17.75 16.77 4 6-month............................................................ 7.99 10.91 12.29 14.87 13.59 14.17 16.66 14.94 16.96 17.21 16.70 15.79 Finance paper, directly placed3-4 5 1-month............................................................ 7.73 10.78 12.44 15.52 13.78 14.24 17.47 15.06 17.53 18.03 17.72 16.78 6 3-month............................................................ 7.80 10.47 11.49 14.45 13.08 13.28 15.56 13.89 15.40 15.87 15.82 15.42 7 6-month............................................................ 7.78 10.25 11.28 14.05 12.89 12.94 14.97 13.63 14.73 15.25 15.22 14.90 Bankers acceptances4-5 8 3-month............................................................ 8.11 11.04 12.78 15.54 13.88 14.65 17.56 15.49 17.78 18.12 17.83 16.68 9 6-month............................................................ n.a. n.a. n.a. 14.89 13.49 14.19 16.26 14.93 16.60 16.80 16.27 15.41 Certificates of deposit, secondary market6 10 1-month............................................................ 7.88 11.03 12.91 16.11 14.33 14.92 18.16 15.73 18.31 18.65 18.38 17.44 11 3-month............................................................ 8.22 11.22 13.07 16.14 14.43 15.08 18.27 15.95 18.36 18.80 18.51 17.57 12 6-month............................................................ 8.61 11.44 12.99 16.00 14.48 15.12 17.66 16.03 18.05 18.29 17.58 16.70 13 Eurodollar deposits, 3-month2.................... 8.78 11.96 14.00 17.18 15.36 15.95 19.06 16.38 18.39 19.56 19.08 19.16 U.S. Treasury bills4 Secondary market7 14 3-month........................................................ 7.19 10.07 11.43 14.79 13.36 13.69 16.30 14.52 16.44 16.75 16.61 15.61 15 6-month....................................................... 7.58 10.06 11.37 14.05 12.81 13.45 15.29 14.09 15.50 15.68 15.52 14.55 16 1-year............................................................ 7.74 9.75 10.89 12.99 12.28 12.79 14.29 13.41 14.44 14.68 14.42 13.67 Auction average8 17 3-month........................................................ 7.221 10.041 11.506 14.905 13.478 13.635 16.295 14.190 15.963 16.433 16.034 16.750 18 6-month....................................................... 7.572 10.017 11.374 14.134 12.983 13.434 15.334 14.042 15.104 15.531 15.025 15.675 19 1-year............................................................ 7.678 9.817 10.748 12.801 11.481 12.991 14.623 14.623 Capital Market Rates U.S. Treasury notes and bonds9 Constant maturities10 20 1-year............................................................ 8.34 10.67 12.05 14.57 13.71 14.32 16.20 15.11 16.36 16.63 16.44 15.44 21 2-year............................................................ 8.34 10.12 11.77 13.92 13.57 14.15 15.46 14.72 15.70 15.79 15.50 14.86 22 2-V2-yearn................................................... 15.55 15.25 23 3-year............................................................ 8.29 9.71 11.55 13.65 13.51 14.09 15.08 14.57 15.35 15.36 15.05 14.55 24 5-year............................................................ 8.32 9.52 11.48 13.41 13.41 13.99 14.63 14.36 14.94 14.88 14.54 14.09 25 7-year............................................................ 8.36 9.48 11.43 13.28 13.24 13.85 14.30 14.17 14.64 14.52 14.14 13.81 26 10-year.......................................................... 8.41 9.44 11.46 13.19 13.12 13.68 14.10 14.01 14.46 14.32 13.92 13.61 27 20-year.......................................................... 8.48 9.33 11.39 12.98 12.94 13.46 13.82 13.75 14.15 14.01 13.64 13.39 28 30-year.......................................................... 8.49 9.29 11.30 12.80 12.69 13.20 13.60 13.50 13.93 13.81 13.42 13.16 Composite12 29 Over 10 years (long-term).................... 7.89 8.74 10.81 12.23 12.15 12.62 12.96 12.89 13.28 13.13 12.80 12.56 State and local notes and bonds Moody’s series13 30 Aaa................................................................ 5.52 5.92 7.85 9.46 9.50 9.78 9.90 10.00 10.00 9.80 9.70 10.00 31 Baa................................................................ 6.27 6.73 9.01 10.15 10.40 10.85 11.28 11.40 11.40 11.20 11.20 11.20 32 Bond Buyer series14.................................... 6.03 6.52 8.59 10.10 10.16 10.62 10.78 10.94 10.90 10.83 10.73 10.64 Corporate bonds Seasoned issues15 33 All industries............................................ 9.07 10.12 12.75 14.22 14.26 14.66 15.15 14.99 15.23 15.23 15.12 14.99 34 Aaa................................................................ 8.73 9.63 11.94 13.35 13.33 13.88 14.32 14.26 14.50 14.53 14.18 14.00 35 Aa.................................................................. 8.92 9.94 12.50 13.89 13.90 14.39 14.88 14.79 15.03 14.89 14.82 14.73 36 A..................................................................... 9.12 10.20 12.89 14.27 14.47 14.82 15.43 15.08 15.43 15.54 15.46 15.31 37 Baa................................................................ 9.45 10.69 13.67 15.37 15.34 15.56 15.95 15.80 15.94 15.96 16.01 15.90 Aaa utility bonds16 38 New issue................................................... 8.96 10.03 12.74 14.90 14.71 15.68 15.81 16.12 15.94 15.80 15.54 8.97 10.02 12.70 14.58 391 4.41 Rec1e5n.t4l8y offere1d5. 4is8sues..1..6....2..6...............1..5..62 15.63 15.29 14.97 Memo: Dividend/price ratio17 40 Preferred stocks............................................ 8.25 9.07 10.57 11.83 11.81 11.80 12.03 12.22 12.22 12.44 12.27 12.25 41 Common stocks............................................ 5.28 5.46 5.25 5.00 4.88 4.84 4.98 5.02 5.02 5.01 4.97 4.92 1. Weekly and monthly figures are averages of all calendar days, where the rate 11. Each weekly figure is calculated on a biweekly basis and is the average of for a weekend or holiday is taken to be the rate prevailing on the preceding business five business days ending on the Monday following the calendar week. The biweekly day. The daily rate is the average of the rates on a given day weighted by the rate is used to determine the maximum interest rate payable in the following twovolume of transactions at these rates. week period on small saver certificates. (See table 1.16.) 2. Weekly figures are statement week averages—that is, averages for the week 12. Unweighted averages for all outstanding notes and bonds neither due nor ending Wednesday. callable in less than 10 years, including several very low yielding “flower” bonds. 3. Unweighted average of offering rates quoted by at least five dealers (in the 13. General obligations only, based on figures for Thursday, from Moody’s case of commercial paper), or finance companies (in the case of finance paper). Investors Service. Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. General obligations only, with 20 years to maturity, issued by 20 state and and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and ISO- local governmental units of mixed quality. Based on figures for Thursday. 179 days for finance paper. 15. Daily figures from Moody’s Investors Service. Based on yields to maturity 4. Yields are quoted on a bank-discount basis, rather than an investment yield on selected long-term bonds. basis (which would give a higher figure). 16. Compilation of the Federal Reserve. Issues included are long-term (20 years 5. Dealer closing offered rates for top-rated banks. Most representative rate or more). New-issue yields are based on quotations on date of offering; those on (which may be, but need not be, the average of the rates quoted by the dealers). recently offered issues (included only for first 4 weeks after termination of under­ 6. Unweighted average of offered rates quoted by at least five dealers early in writer price restrictions), on Friday close-of-business quotations. the day. 17. Standard and Poor's corporate series. Preferred stock ratio based on a sample 7. Unweighted average of closing bid rates quoted by at least five dealers. of ten issues: four public utilities, four industrials, one financial, and one trans­ 8. Rates are recorded in the week in which bills are issued. portation. Common stock ratios on the 500 stocks in the price index. 9. Yields (not compounded) are based on closing bid prices quoted by at least five dealers. 10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields are read from a yield curve at fixed maturities. Based on only recently issued, actively traded securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Financial Statistics □ June 1981 1.36 STOCK MARKET Selected Statistics 1980 1981 Indicator 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. May Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50). 53.76 55.67 68.06 78.15 76.69 76.24 73.52 76.46 77.60 76.28 2 Industrial........................................................ 58.30 61.82 78.64 92.32 90.37 89.23 85.74 89.39 90.57 88.78 3 Transportation.................................................. 43.25 45.20 60.52 77.22 75.74 74.43 72.76 77.09 80.63 76.78 4 Utility............................................................. 39.23 36.46 37.35 38.35 37.84 38.53 37.59 37.78 38.34 38.27 5 Finance............................................................ 56.74 58.65 64.28 67.21 67.46 70.04 68.48 72.82 74.59 74.65 6 Standard & Poor’s Corporation (1941-43 = 10)1.. 96.11 107.94 118.71 135.65 133.48 132.97 128.40 133.19 134.43 131.73 7 American Stock Exchange (Aug. 31, 1973 = 100) 144.56 186.56 300.94 349.97 347.56 344.21 338.28 347.07 363.09 365.52 Volume of tradingjthousands of shares) 8 New York Stock Exchange.................................. 28,591 32,233 44,867 54,895 46,620 45,500 42,963 53,387 54,124 45,272 9 American Stock Exchange.................................. 3,622 4,182 6,377 7,852 6,410 6,024 4,816 5,682 6,339 5,650 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2............ 11,035 11,619 14,721 14,363 14,721 14,242 14,171 14,243 14,869 4 11 Margin stock3........................................................ 10,830 11,450 14,500 14,140 14,500 14,020 13,950 14,020 14,630 I 12 Convertible bonds................................................. 205 167 219 220 219 221 220 222 238 1 13 Subscription issues............................................ 1 2 2 3 2 1 1 1 1 n.a. Free credit balances at brokers4 1 14 Margin-account..................................................... 835 1,105 2,105 2,120 2,105 2,065 2,225 2,340 2,270 1 15 Cash-account........................................................ 2,510 4,060 6,070 5,590 6,070 5,655 5,700 6,530 6,530 t 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........................... 33.0 16.0 14.0 13.0 14.0 20.0 20.0 16.0 20.8 18 40-49................................ 28.0 29.0 30.0 18.0 30.0 30.0 31.0 28.0 26.8 19 50-59................................ 18.0 27.0 25.0 31.0 25.0 22.0 21.0 26.0 23.7 20 60-69................................ 10.0 14.0 14.0 18.0 14.0 13.0 13.0 14.0 12.6 21 70-79................................ 6.0 8.0 9.0 11.0 9.0 8.0 8.0 9.0 8.1 22 80 or more........................ 5.0 7.0 8.0 9.0 8.0 7.0 7.0 8.0 8.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6.. 13,092 16,150 21,690 21,600 21,690 21,686 21,861 22,548 22,748 Distribution by equity status (percent) 24 Net credit status................................ 41.3 44.2 47.8 46.5 47.8 47.0 48.6 50.9 49.3 Debt status, equity of 25 60 percent or more...................... 45.1 47.0 44.4 46.8 44.4 43.9 43.1 41.5 41.7 26 Less than 60 percent..................... 13.6 8.8 7.7 6.7 7.7 9.1 8.3 7.6 9.0 Margin requirements (percent of market value and effective date)7 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 insurance 5. Each customer’s equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 6. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers basedon loan values of other 2. Margin credit includes all credit extended to purchase or carry stocks or related collateral in the customer’s margin account or deposits of cash (usually sales pro­ eauity instruments and secured at least in part by stock. Credit extended is end- ceeds) occur. of-month data for member firms of the New York Stock Exchange. 7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre­ In addition to assigning a current loan value to margin stock generally, Regu­ scribed in accordance with the Securities Exchange Act of 1934, limit the amount lations T and U permit special loan values for convertible bonds and stock acquired of credit to purchase and carry margin stocks that may be extended on securities through exercise of subscription rights. as collateral by prescribing a maximum loan value, which is a specified percentage 3. A distribution of this total by equity class is shown on lines 17-22. of the market value of the collateral at the time the credit is extended. Margin 4. Free credit balances are in accounts with no unfulfilled commitments to the requirements are the difference between the market value (100 percent) and the brokers and are subject to withdrawal by customers on demand. 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 A ll 1.37 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1980 1981 Account 1978 1979 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr .P Savings and loan associations 1Assets..................................................... 523,542 578,962 596,620 603,295 609,320 617,773 623,939 629,829 631,228 634,405 636,859 638,737 2 Mortgages............................................................ 432.808 475.688 482,839 487,036 491,895 496.495 499.973 502.812 504.068 505.309 507.152 509.471 3 Cash and investment securities1.................. 44.884 46.341 52,165 53,336 53.435 56,146 57.302 57.572 57.460 58,401 58.461 56.912 4 Other..................................................................... 45.850 56.933 61.616 62,923 63.990 65.132 66.664 69.445 69.700 70,695 71,246 72.354 5 Liabilities and net worth.......................... 523,542 578,962 596,620 603,295 609,320 617,773 623,939 629,829 631,228 634,405 636,859 638,737 6 Savings capital..................................................... 430.953 470.004 488.896 497.403 496.991 500.861 503.365 510,959 512.946 515.250 518.990 516.078 7Borrowed money............................................... 42.907 55,232 41.239 55.396 58.418 60.727 62.067 64.491 62.938 62.270 64,197 67.667 8 FHLBB ............................................................ 31,990 40.441 39.882 41.005 42.547 44.325 45.505 47.045 46.629 46,360 47,310 49.551 9 Other................................................................ 10.917 14,791 13.579 14.391 15.871 16.402 16.562 17.446 16.309 15.910 16.887 18,116 10 Loans in process................................................. 10,721 9.582 7.112 7.540 8.243 8.654 8.853 8.783 8.120 7.833 7.756 7.859 11 Other ..................................................................... 9.904 11,506 14.364 16.190 12.776 14.502 16.433 12.227 14.104 16.071 13.271 14.850 12 Net worth2............................................................ 29,057 32.638 32.787 32.766 32.892 33.029 33.221 33.319 33.120 32.981 32.645 32.283 13 Memo: Mortgage loan com­ mitments outstanding3............................. 18,911 16,007 18.020 20.278 20.311 19.077 17.979 16,102 15.972 16.279 17,374 18,575 Mutual savings banks4 14Assets..................................................... 158,174 163,405 167,959 168,752 169,409 170,432 171,126 171,564' 171,891 172,349 173,232 Loans 15 Mortgage.......................................................... 95.157 98,908 99.301 99,289 99.306 99.523 99.677 99,865' 99.816 99.739 99.719 16 Other................................................................. 7.195 9.253 11.390 11.122 11.415 11.382 11.477 11.733' 12.199 12.598 13.248 Securities 17 U.S. government5........................................ 4.959 7.658 7.796 8.079 8.434 8.622 8.715 8.949' 9.000 9.032 9,203 18 State and local government...................... 3,333 2.930 2,702 2.709 2.728 2.754 2.736 2.390' 2.378 2.376 2.359 19 Corporate and other6.................................... 39,732 37.086 38,863 39.327 39.609 39.720 39.888 39,282' 39.256 39.223 39.236 20 Cash....................................................................... 3.665 3.156 3,260 3.456 3.153 3.592 3.717 4.334' 4.133 4,205 4.238 21 Other assets.......................................................... 4,131 4.412 4.648 4.770 4.764 4.839 4.916 5,011' 5.107 5,177 5,231 n.a. 22 Liabilities................................................ 158,174 163,405 167,959 168,752 169,409 170,432 171,126 171,564' 171,891 172,3491 173,232 23 Deposits................................................................ 142,701 146,006 149.580 150.187 151,765 151.998 152,133 153.501' 153.143 153,332 154,805 24 Regular7............................................................ 141.170 144,070 147.408 148.018 149,395 149.797 150,109 151.416' 151.051 151,346 152.630 25 Ordinary savings........................................ 71,816 61,123 57.737 58.191 58.658 57.651 56.256 53.971' 52.737 52,035 53.049 26 Time and other.......................................... 69,354 82,947 89.671 89.827 90,736 92.146 93,853 97.445' 98.314 99,311 99.581 27 Other ................................................................. 1,531 1,936 2.172 2.169 2.370 2,200 2,042 2.086' 2.092 1.986 2.174 28 Other liabilities................................................... 4.565 5,873 6,964 7.211 6.299 7.117 7,644 6.695' 7.426 7.753 7.265 29 General reserve accounts............................... 10,907 11,525 11.416 11.353 11.344 11.317 11,349 11.368' 12.957 13.412 11.163 30 Memo: Mortgage loan com­ mitments outstanding8............................. 4.400 3.182 1.939 1.849 1.883 1.817 1.682 1.476' 1.316 1,331 1.379 Life insurance companies 31 Assets..................................................... 389,924 432,282 455,759 459,362 464,483 468,057 473,529 476,190 463,150 482,264 487,067 Securities 32 Government................................................... 20,009 0.338 20.736 20,833 20,853 20.942 21.204 21.453 21.891 22,092 22.132 33 United States9............................................. 4,822 4.888 5.325 5,386 5.361 5.390 5.568 5.753 6.016 6,066 6.024 34 State and local.......................................... 6,402 6.428 6.361 6.421 6,474 6.484 6.568 6,682 6.831 6.900 6.948 35 Foreign10...................................................... 8,785 9,022 9.050 9.026 9,018 9.068 9,068 9.018 9.044 9,126 9.160 36 Business............................................................ 198,105 222.332 228.645 230,477 233,652 236,115 239,150 238,048 240.630 241.600 243,304 n.a. 37 Bonds............................................................ 162,587 178,371 186,385 187.839 189,586 191.229 191,753 191,090 194.889 195.521 196,439 38 Stocks............................................................ 35,518 39,757 42,260 42.638 44,066 44,886 47.397 46.958 45.741 46.079 46.865 39 Mortgages............................................................ 106,167 118.421 126,461 127,357 128,089 128.977 129.878 131.145 131.710 132.445 133,150 40 Real estate............................................................ 11,764 13.007 14,164 14,184 14.460 14.702 15.183 15.247 15.235 16,026 16.370 41 Policy loans.......................................................... 30,146 34.825 39,649 39,925 40,258 40.548 40,878 41,411 42.032 42.604 43,264 42 Other assets.......................................................... 23,733 27.563 26,104 26,586 27.171 26,765 27.236 28,836 26.983 27.497 28.847 Credit unions 43 Total assets/liabilities and capital.............................................. 62,348 65,854 68,429 69,553 70,515 70,702 71,335 71,709 70,754 71,446 73,214 72,783 44Federal................................................................... 34,760 35,934 37,555 38,168 39,219 39.155 39,428 39.801 39.142 39.636 40.624 40,207 45 27,588 29,920 30.856 31,385 31,296 31.547 31.907 31.908 31.612 31,810 32,590 32.576 46 Loans outstanding............................................. 50,269 53,125 47.829 47.884 47,211 47.221 47.299 47,774 47.309 47,451 47,815 47.994 47 Federal.............................................................. 27,687 28,698 25.435 25,401 25,381 25.288 25.273 25,627 25.272 25,376 25,618 25.707 48 State ................................................................... 22,582 24,426 22.394 22.483 21,830 21.933 22.026 22,147 22,037 22,075 22,197 22.287 49 Savings................................................................... 53,517 56,232 60.574 61,403 63,728 63.957 64.304 64,399 63.874 64,357 65,744 65.495 50 Federal (shares)............................................. 29,802 35,530 33,472 33.964 35.961 36.030 36.183 36,348 35.915 36,236 36.898 36.684 51 State (shares and deposits)......................... 23,715 25,702 27,102 27.439 27,767 27.927 28.121 28,051 27.959 28,121 28,846 28,811 For notes see bottom of page A28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics □ June 1981 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1979 1980 1981 1978 1979 1980 H2 HI H2 Feb. Mar. Apr. U.S. budget 1 Receipts'................................................. 401,997 465,940 520,050 233,952 270,864 262,152 38,394 44,623 74,464 2 Outlays12................................................ 450,804 493,635 579,613 263,004 289,905 310,972 53,969 54,217 57,198 3 Surplus, or deficit(-)............................. -48,807 -27,694 -59,563 -29,052 -19,041 -48,821 -15,575 -9,593 17,266 4 Trust funds........................................... 12,693 18,335 8,791 9,679 4,383 -2,551 1,243 -601 1,896 5 Federal funds3...................................... -61,532 -46,069 -67,752 -38,773 -23,418 -46,306 -16,819 -8,992 15,370 Off-budget entities (surplus, or deficit 6 Federal financing Bank outlays............... -10,661 -13,261 -14,549 -5,909 -7,735 -7,552 -1,340 -3,420 -2,088 7 Other4..................................................... 302 793 303 765 -522 376 -148 -35 -73 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-)............................. -59,166 -40,162 -73,808 -34,197 -27,298 -55,998 -17,063 -13,048 15,251 Source or financing 9 Borrowing from the public................... 59,106 33,641 70,515 31,320 24,435 54,764 13,916 15,138 -3,725 10 Cash and monetary assets (decrease, or increase (- )p............................... -3,023 -408 -355 3,059 -3,482 -6,730 3,909 -5,852 -5,122 11 Other6.................................................. 3,083 6,929 3,648 -182 6,345 7,964 762 3,762 6,404 Memo; 12 Treasury operating balance (level, end of period)......................................... 22,444 24,176 20,990 15,924 14,092 12,305 10,106 10,717 21,150 13 Federal Reserve Banks........................ 16,647 6,489 4,102 4,075 3,199 3,062 2,284 3,032 4,460 14 Tax and loan accounts.......................... 5,797 17,687 16,888 11,849 10,893 9,243 7,822 7,685 16,690 1. Effective June 1978, earned income credit payments in excess of an indi­ 6. Includes accrued interest payable to the public; allocations of special drawing vidual’s tax liability, formerly treated as income tax refunds, are classified as outlays rights; deposit funds; miscellaneous liability (including checks outstanding) and retroactive to January 1976. asset accounts; seignorage; increment on gold; net gain/loss for U.S. currency 2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­ valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on classified from an off-budget agency to an on-budget agency in the Department of the sale of gold. Labor. 3. Half-year figures are calculated as a residual (total surplus/deficit less trust Source. “Monthly Treasury Statement of Receipts and Outlays of the U.S. fund surplus/deficit). Government,” Treasury Bulletin, and the Budget of the United States Government, 4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving Fiscal Year 1981. Fund; and Rural Telephone Bank. 5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold tranche drawing rights; loans to International Monetary Fund; and other cash and monetary assets. NOTES TO TABLE 1.37 1. Holdings of stock of the Federal Home Loan Banks are included in “other 10. Issues of foreign governments and their subdivisions and bonds of the In­ assets.” ternational Bank for Reconstruction and Development. 2. Includes net undistributed income, which is accrued by most, but not all, associations. Note. Savings and loan associations: Estimates by the FHLBB for all associations 3. Excludes figures for loans in process, which are shown as a liability. in the United States. Data are based on monthly reports of federally insured 4. The NAMSB reports that, effective April 1979, balance sheet data are not associations and annual reports of other associations. Even when revised, data for strictly comparable with previous months. Beginning April 1979, data are reported current and preceding year are subject to further revision. on a net-of-valuation-reserves basis. Prior to that date, data were reported on a Mutual savings banks: Estimates of National Association of Mutual Savings gross-of-valuation-reserves basis. Banks for all savings banks in the United States. 5. Beginning April 1979, includes obligations of U.S. government agencies. Before Life insurance companies: Estimates of the American Council of Life Insurance that date, this item was included in “Corporate and other.” for all life insurance companies in the United States. Annual figures are annual- 6. Includes securities of foreign governments and international organizations statement asset values, with bonds carried on an amortized basis and stocks at and, prior to April 1979, nonguaranteed issues of U.S. government agencies. year-end market value. Adjustments for interest due and accrued and for differ­ 7. Excludes checking, club, and school accounts. ences between market and book values are not made on each item separately but 8. Commitments outstanding (including loans in process) of banks in New York are included, in total, in “other assets.” State as reported to the Savings Banks Association of the state of New York. Credit unions: Estimates by the National Credit Union Administration for a 9. Direct and guaranteed obligations. Excludes federal agency issues not guar­ group of federal and state-chartered credit unions that account for about 30 percent anteed, which are shown in the table under “Business” securities. of credit union assets. Figures are preliminary and revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Fiscal Source or type year year year 1979 1980 1981 1978 1979 1980 H2 HI H2 Feb. Mar. Apr. Receipts 1 All sources1............................................................. 401,997 465,955 520,050 233,952 270,864 262,152 38,394 44,623 74,464 2 Individual income taxes, net..................... 180,988 217,841 244,069 115,488 119,988 131,962 15,348 13,693 38,659 3 Withheld............................................... 165,215 195,295 223,763 105,764 110,394 120,924 19,076 22,337 20,532 4 Presidential Election Campaign Fund... 39 36 39 3 34 4 4 11 7 5 Nonwithheld......................................... 47,804 56,215 63,746 12,355 49,707 14,592 1,134 3,754 30,674 6 Refunds1............................................... 32,070 33,705 43,479 2,634 40,147 3,559 4,867 12,410 12,644 Corporation income taxes 7 Gross receipts...................................... 65,380 71,448 72,380 29,169 43,434 28,579 1,816 10,203 10,899 8 Refunds................................................ 5,428 5,771 7,780 3,306 4,064 4,518 1,252 1,617 1,528 9 Social insurance taxes and contributions, net.................................................... 123,410 141,591 160,747 71,031 86,597 77,262 17,211 15,784 20,201 10 Payroll employment taxes and contributions2................................. 99,626 115,041 133,042 60,562 69,077 66,831 14,562 14,579 13,843 11 Self-employment taxes and contributions3................................. 4,267 5,034 5,723 417 5,535 188 495 419 3,945 12 Unemployment insurance..................... 13,850 15,387 15,336 6,899 8,690 6,742 1,563 174 1,802 13 Other net receipts4............................... 5,668 6,130 6,646 3,149 3,294 3,502 591 613 612 14 Excise taxes............................................. 18,376 18,745 24,329 9,675 11,383 15,332 3,273 4,210 3,754 15 Customs deposits...................................... 6,573 7,439 7,174 3,741 3,443 3,717 558 661 655 16 Estate and gift taxes................................. 5,285 5,411 6,389 2,900 3,091 3,499 489 572 485 17 Miscellaneous receipts5............................ 7,413 9,252 12,741 5,254 6,993 6,318 951 1,117 1,338 Outlays 18 All types1’6............................................................. 450,804 493,635 579,613 263,004 289,905 310,972 53,969 54,217 57,198 19 National defense...................................... 105,186 117,681 135,856 62,002 69,132 72,457 12,841 13,560 13,274 20 International affairs................................. 5,922 6,091 10,733 4,617 4,602 5,430 1,005 808 1,681 21 General science, space, and technology ... 4,742 5,041 5,722 3,299 3,150 3,205 531 692 505 22 Energy..................................................... 5,861 6,856 6,313 3,281 3,126 3,997 826 475 924 23 Natural resources and environment.......... 10,925 12,091 13,812 7,350 6,668 7,722 1,016 1,093 1,093 24 Agriculture............................................... 7,731 6,238 4,762 1,709 3,193 1,892 352 -54 -304 25 Commerce and housing credit................. 3,324 2,565 7,782 3,002 3,878 3,163 -204 377 321 26 Transportation......................................... 15,445 17,459 21,120 10,298 9,582 11,547 1,468 1,605 1,685 27 Community and regional development.... 11,039 9,482 10,068 4,855 5,302 5,370 620 782 844 28 Education, training, employment, social services............................................. 26,463 29,685 30,767 14,579 16,686 15,221 2,862 2,666 2,564 29 Health..................................................... 43,676 49,614 58,165 26,492 29,299 31,263 5,414 5,757 6,259 30 Income security16.................................... 146,180 160,159 193,100 85,967 94,605 107,912 18,795 19,242 18,768 31 Veterans benefits and services................. 18,974 19,928 21,183 10,113 9,758 11,731 1,955 1,028 2,168 32 Administration of justice.......................... 3,802 4,153 4,570 2,174 2,291 2,299 389 377 465 33 General government................................. 3,737 4,153 4,505 2,103 2,422 2,432 425 749 310 34 General-purpose fiscal assistance.............. 9,601 8,372 8,584 4,286 3,940 4,191 113 98 1,166 35 Interest7.................................................. 43,966 52,556 64,504 29,045 32,658 35,909 6,400 5,835 6,423 36 Undistributed offsetting receipts7 8.......... -15,772 -18,489 -21,933 -12,164 -10,387 -14,769 -838 -875 -949 1. Effective June 1978, earned income credit payments in excess of an individual’s classified from an off-budget agency to an on-budget agency in the Department of tax liability, formerly treated as income tax refunds, are classified as outlays ret­ Labor. roactive to January 1976. 7. Effective September 1976, “Interest” and “Undistributed offsetting receipts” 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. reflect the accounting conversion from an accrual basis to a cash basis for the 3. Old-age, disability, and hospital insurance. interest on special issues for U.S. government accounts. 4. Supplementary medical insurance premiums, federal employee retirement 8. Consists of interest received by trust funds, rents and royalties on the Outer contributions, and Civil Service retirement and disability fund. Continental Shelf, and U.S. government contributions for employee retirement. 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous re­ ceipts. Source. “Monthly Treasury Statement of Receipts and Outlays of the U.S. o. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­ Government” and the Budget of the U.S. Government, Fiscal Year 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics □ June 1981 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1979 1980 1981 Item Mar. 31 June 30 Sept. 30 Dec. 31. Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding.............................................. 804.6 812.2 833.8 852.2 870.4 884.4 914.3 936.7 970.9 2 Public debt securities................................................................... 796.8 804.9 826.5 845.1 863.5 877.6 907.7 930.2 964.5 3 Held by public............................................................................ 630.5 626.4 638.8 658.0 677.1 682.7 710.0 737.7 773.7 4 Held by agencies....................................................................... 166.3 178.5 187.7 187.1 186.3 194.9 197.7 192.5 190.9 5 Agency securities......................................................................... 7.8 7.3 7.2 7.1 7.0 6.8 6.6 6.5 6.4 6 Held by public........................................................................... 6.3 5.9 5.8 5.6 5.5 5.3 5.1 5.0 4.9 7 Held by agencies....................................................................... 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 8 Debt subject to statutory limit....................................... 797.9 806.0 827.6 846.2 864.5 878.7 908.7 931.2 965.5 9 Public debt securities................................................................... 796.2 804.3 825.9 844.5 862.8 877.0 907.1 929.6 963.9 10 Other debt1.................................................................................... 1.7 1.7 1.7 1.7 1.7 1.7 1.6 1.6 1.6 11 Memo: Statutory debt limit........................................................ 798.0 830.0 830.0 879.0 879.0 925.0 925.0 935.1 985.0 1. Includes guaranteed debt of government agencies, specified participation cer- Note. Data from Treasury Bulletin (U.S. Treasury Department), tificates, notes to international lending organizations, and District of Columbia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1981 Type and holder 1977 1978 1979 1980 Jan. Feb. Mar. Apr. May 1 Total gross public debt.................................................. 718.9 789.2 845.1 930.2 934.1 950.5 964.5 964.0 968.5 By type 2 Interest-bearing debt................................................................... 715.2 782.4 844.0 928.9 929.8 946.5 963.2 962.8 964.8 3 Marketable....................................................................................... 459.9 487.5 530.7 623.2 628.5 642.9 661.1 657.9 656.2 4 Bills............................................................................................... 161.1 161.7 172.6 216.1 220.4 229.0 235.3 225.8 224.5 5 Notes............................................................................................. 251.8 265.8 283.4 321.6 321.2 324.5 336.5 341.1 338.4 6 Bonds........................................................................................... 47.0 60.0 74.7 85.4 86.9 89.4 89.3 91.0 93.3 7 Nonmarketable1 ........................................................................... 255.3 294.8 313.2 305.7 301.3 303.5 302.1 304.9 308.6 8 Convertible bonds2................................................................... 2.2 2.2 2.2 9 State and local government series...................................... 13.9 24.3 24.6 23.8 23.7 23.6 23.5 23.4 23.2 10 Foreign issues3............................................................................ 22.2 29.6 28.8 24.0 23.8 24.0 24.2 24.4 24.8 11 Government............................................................................ 21.0 28.0 23.6 17.6 17.4 17.5 17.7 18.0 18.4 12 Public....................................................................................... 1.2 1.6 5.3 6.4 6.4 6.4 6.4 6.4 6.4 13 Savings bonds and notes.................................................. 77.0 80.9 79.9 72.5 71.4 70.7 70.3 69.8 69.5 14 Government account series4................................................. 139.8 157.5 177.5 185.1 182.2 185.0 183.8 187.0 15 Non-interest-bearing debt.......................................................... 3.7 6.8 1.2 1.3 4.2 4.0 1.3 1.2 3.7 By holder5 16 U.S. government agencies and trust funds........................... 154.8 170.0 187.1 192.5 189.5 192.0 190.9 17 Federal Reserve Banks.............................................................. 102.8 109.6 117.5 121.3 116.7 118.4 119.0 18 Private investors............................................................................ 461.3 508.6 540.5 616.4 627.4 639.6 654.6 19 Commercial banks....................................................................... 101.4 93.1 91.5 104.7 108.1 107.4 108.5 20 Mutual savings banks................................................................... 5.9 5.0 4.7 5.8 5.8 5.8 6.0 21 Insurance companies................................................................... 15.1 14.9 14.8 15.2 15.3 15.0 14.8 22 Other companies............................................................................ 22.7 21.2 24.9' 24.6 22.8 22.4 21.5 n.a. n.a. 23 State and local governments..................................................... 55.2 64.4 67.4 74.7 73.0 76.0 77.8 Individuals 24 Savings bonds........................................................................... 76.7 80.7 79.9 72.2 71.4 70.7 70.4 25 Other securities......................................................................... 28.6 30.3 36.2 56.7 62.8 65.5 68.2 26 Foreign and international6.......................................................... 109.6 137.8 123.8 134.3 133.9 136.7 142.7 27 Other miscellaneous investors7................................................. 46.1 58.2 97.4 127.9 134.3 140.0 144.7 1. Includes (not shown separately): Securities issued to the Rural Electrification 6. Consists of investments of foreign balances and international accounts in the Administration, depository bonds, retirement plan bonds, and individual retire­ United States. Beginning with July 1974, the figures exclude non-interest-bearing ment bonds. notes issued to the International Monetary Fund. 2. These nonmarketable bonds, also known as Investment Series B Bonds, may 7. Includes savings and loan associations, nonprofit institutions, corporate pen­ be exchanged (or converted) at the owner’s option for 1V2 percent, 5-year mar­ sion trust funds, dealers and brokers, certain government deposit accounts, and ketable Treasury notes. Convertible bonds that have been so exchanged are re­ government sponsored agencies. moved from this category and recorded in the notes category (line 5). 3. Nonmarketable dollar-denominated and foreign currency-denominated series Note. Gross public debt excludes guaranteed agency securities and, beginning held by foreigners. in July 1974, includes Federal Financing Bank security issues. 4. Held almost entirely by U.S. government agencies and trust funds. Data by type of security from Monthly Statement of the Public Debt of the United 5. Data for Federal Reserve Banks and U.S. government agencies and trust States (U.S. Treasury Department); data by holder from Treasury Bulletin. funds are actual holdings; data for other groups are Treasury estimates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.42 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1981 1981 Type of holder 1979 1980 1979 1980 Feb. Mar. Feb. Mar. All maturities 1 to 5 years 1 All holders................................................................................ 530,731 623,186 642,905 661,142 164,198 197,409 196,029 203,927 2 U.S. government agencies and trust funds.................................. 11,047 9,564 9,293 9,304 2,555 1,990 1,360 1,363 3 Federal Reserve Banks............................................................. 117,458 121,328 118,435 119,039 8,469 35,835 34,492 35,323 4 Private investors........................................................................ 402,226 492,294 515,178 532,800 133,173 159,585 160,177 167,241 5 Commercial banks................................................................. 69,076 77,868 79,931 80,710 38,346 44,482 42,253 41,573 6 Mutual savings banks............................................................. 3,204 3,917 3,930 4,098 1,668 1,925 1,853 1,950 7 Insurance companies............................................................. 11,496 11,930 11,838 11,698 4,518 4,504 4,148 4,171 8 Nonfinancial corporations....................................................... 8,433 7,758 7,600 7,203 2,844 2,203 1,841 1,734 9 Savings and loan associations................................................. 3,209 4,225 4,103 4,163 1,763 2,289 2,496 2,524 10 State and local governments................................................... 15,735 21,058 21,646 22,317 3,487 4,595 4,711 4,818 11 All others.............................................................................. 291,072 365,539 386,130 402,610 80,546 99,577 102,875 110,470 Total, within 1 year 5 to 10 years 12 All holders................................................................................ 255,252 297,385 311,965 318,907 50,440 56,037 58,556 61,995 13 U.S. government agencies and trust funds.................................. 1,629 830 1,188 1,189 871 1,404 1,404 1,411 14 Federal Reserve Banks.............................................................. 63,219 56,858 54,785 54,525 12,977 13,458 13,770 13,797 15 Private investors........................................................................ 190,403 239,697 255,992 263,193 36,592 41,175 43,382 46,786 16 Commercial banks................................................................. 20,171 25,197 28,949 30,106 8,086 5,793 6,054 6,424 17 Mutual savings banks.............................................................. 836 1,246 1,289 1,317 459 455 481 511 18 Insurance companies.............................................................. 2,016 1,940 2,250 2,152 2,815 3,037 3,000 3,146 19 Nonfinancial corporations....................................................... 4,933 4,281 4,337 3,774 308 357 393 461 20 Savings and loan associations................................................. 1,301 1,646 1,453 1,465 69 216 88 111 21 State and local governments................................................... 5,607 7,750 7,974 8,183 1,540 2,030 2,092 2,243 22 All others.............................................................................. 155,539 197,636 209,740 216,196 23,314 29,287 31,275 33,891 Bills, within 1 year 10 to 20 years 23 All holders................................................................................ 172,644 216,104 228,972 235,315 27,588 36,854 38,278 38,238 24 U.S. government agencies and trust funds.................................. 0 1 1 1 4,520 3,686 3,686 3,685 25 Federal Reserve Banks............................................................. 45,337 43,971 42,781 42,632 3,272 5,919 5,903 5,891 26 Private investors........................................................................ 127,306 172,132 186,190 192,681 19,796 27,250 28,690 28,662 27 Commercial banks................................................................. 5,938 9,856 12,803 12,464 993 1,071 1,174 1,166 28 Mutual savings banks.............................................................. 262 394 410 425 127 181 184 186 29 Insurance companies............................................................. 473 672 854 812 1,305 1,718 1,664 1,519 30 Nonfinancial corporations....................................................... 2,793 2,363 2,212 1,879 218 431 436 417 31 Savings and loan associations................................................. 219 818 510 512 58 52 44 39 32 State and local governments................................................... 3,100 5,413 5,154 5,701 1,762 3,597 3,822 3,923 33 All others............................................................................... 114,522 152,616 164,246 170,888 15,332 20,200 21,365 21,413 Other, within 1 year Over 20 years 34 Ail holders................................................................................ 82,608 81,281 82,993 83,592 33,254 35,500 38,076 38,076 35 U.S. government agencies and trust funds.................................. 1,629 829 1,187 1,188 1,472 1,656 1,656 1,656 36 Federal Reserve Banks............................................................. 17,882 12,888 12,004 11,892 9,520 9,258 9,484* 9,503 37 Private investors........................................................................ 63,097 67,565 69,802 70,512 22,262 24,587 26,936 26,918 38 Commercial banks................................................................. 14,233 15,341 16,146 17,641 1,470 1,325 1,501 1,441 39 Mutual savings banks.............................................................. 574 852 879 892 113 110 123 135 40 Insurance companies............................................................. 1,543 1,268 1,396 1,340 842 730 776 710 41 Nonfinancial corporations....................................................... 2,140 1,918 2,124 1,895 130 476 593 816 42 Savings and loan associations................................................. 1,081 828 943 953 19 21 22 25 43 State and local governments................................................... 2,508 2,337 2,820 2,481 3,339 3,086 3,047 3,150 44 All others............................................................................... 41,017 45,020 45,493 45,308 16,340 18,838 20,875 20,640 Note. Direct public issues only. Based on Treasury Survey of Ownership from 458 mutual savings banks, and 723 insurance companies, each about 80 percent; Treasury Bulletin (U.S. Treasury Department). (2) 411 nonfinancial corporations and 476 savings and loan associations, each about Data complete for U.S. government agencies and trust funds and Federal Reserve 50 percent; and (3) 488 state and local governments, about 40 percent. Banks, but data for other groups include only holdings of those institutions that “All others,” a residual, includes holdings of all those not reporting in the report. The following figures show, for each category, the number and proportion Treasury Survey, including investor groups not listed separately. reporting as of Mar. 31, 1981: (1) 5,343 commercial banks, t January data revised to 9.111. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics □ June 1981 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday Item 1978 1979 1980 Feb.P Mar.P Apr.P Apr. 22 Apr. 29 May 6 May 13 May 20 May 27 Immediate delivery1 1 U.S. government securities---- 10,285 13,183 23,487 23,848 21,360 20,421 20,436 20,499 21,306 20,848 By maturity 2 Bills.................................... 6,173 7,915 14,589 14,114 13,134 13,357 12,324 11,994 11,431 11,679 12,745 3 Other within 1 year............ 392 454 444 388 374 363 526 402 510 593 355 4 1-5 years............................. 1,889 2,417 3,904 4,182 3,390 2,793 4,012 3,822 3,550 3,867 4,586 5 5-10 years........................... 965 1,121 2,036 2,758 2,135 1,7% 1,498 2,004 1,916 1,658 1,619 6 Over 10 years...................... 867 1,276 2,514 2,408 2,328 2,112 2,076 2,278 3,900 3,052 2,144 By type of customer 7 U.S. government securities dealers............................. 1,135 1,448 1,520 1,390 1,070 1,030 1,096 1,105 1,061 1,006 1,216 8 U.S. government securities brokers........................... 3,838 5,170 10,987 11,681 10,565 10,130 9,358 10,282 9,885 10,075 9,771 9 All others2......................... 5,312 6,564 10,979 10,776 9,725 9,260 9,981 9,113 10,360 9,767 10,462 10 Federal agency securities........ 1,894 2,723 3,201 3,311 2,864 2,783 3,054 2,548 1,599 3,368 2,837 11 Certificates of deposit............ 4,281 3,717 3,518 3,335 2,921 3,375 2,168 2,823 3,079 12 Bankers acceptances............... 1,880 1,751 1,627 1,546 1,560 1,452 1,169 1,104 1,547 13 Commercial paper................... 5,553 5,073 5,302 5,694 5,033 6,268 5,582 6,193 5,877 Futures and forward positions3- n.a. n.a. n.a. n.a. n.a. 1. Before 1981, data for immediate transactions include forward transactions. 4. Forward transactions are agreements arranged in the over-the-counter market 2. Includes, among others, all other dealers and brokers in commodities and in which securities are purchased (sold) for delivery after 5 business days from the securities, nondealer departments of commercial banks, foreign banking agencies, date of the transaction for government securities (Treasury bills, notes, and bonds) and the Federal Reserve System. or after 30 days for mortgage-backed agency issues. 3. Futures contracts are standardized agreements arranged on an organized ex­ Notes. Averages for transactions are based on number of trading days in the change in which parties commit to purchase or sell securities for delivery at a future period. date. Transactions are market purchases and sales of U.S. government securities deal­ ers reporting to the Federal Reserve Bank of New York. The figures exclude allotments of, and exchanges for, new U.S. government securities, redemptions of called or matured securities, purchases or sales of securities under repurchase agreement, reverse repurchase (resale), or similar contracts. 1.44 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing Averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday Item 1978 1979 1980 Feb.P Mar.P Apr.P Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29 May 6 Positions Net immediate1 1 U.S. government securities......... 2,656 3,223 14,891 17,059 11,570 17,809 16,350 12,043 10,653 7,329 4,651 2 Bills....................................... 2.452 3.813 13.105 13.608 8,471 13,179 12,238 9,276 8,267 4,361 1,944 3 Other within 1 year............... 260 -325 -322 -279 142 -121 80 71 218 232 182 4 1-5 years................................ -92 -455 -369 817 399 1,918 1,114 195 -266 332 428 5 5-10 years............................... 40 160 246 650 530 315 757 564 465 405 246 6 Over 10 years......................... -4 30 n.a. 2,231 2,263 2,027 2,518 2,161 1,937 1,969 1,998 1,850 7 Federal agency securities............ 606 1,471 1,364 1,429 1,710 1,695 1,846 1,826 1,599 1,569 1,716 8 Certificate of deposit................. 2,775 2,794 2,151 2,728 2,117 3,132 2,316 1,889 2,168 1,924 2,310 9 Bankers acceptances................... n.a. n.a. 1,363 1,594 1,705 1,995 1,901 1,591 1,675 1,614 1,686 10 Commercial paper...................... n.a. n.a. 2,374 2,590 2,721 2,866 2,794 2,564 2,8% 2,639 2,503 Futures and forward positions ... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Financing2 Reverse repurchase agreements3 . 4 4 \ 11 Overnight and continuing....... T T 8,080r 8,505 9,658 8,710 9,121 8,972 10,135 10,393 10,693 12 Term agreements................... 1 1 1I 24,917r 24,552 26,033 24,504 24,962 25,742 25,928 27,385 28,370 Repurchase agreements4............ n.a. n.a. n.a. 13 Overnight and continuing....... 1 1 28,558r 32,899 31,958 34,753 33,823 31,518 32,640 29,842 29,223 14 Term agreements................... t 1 26,256r 24,102 24,792 23,583 23,953 24,343 25,136 25,798 25,556 1. Immediate positions are net amounts (in terms of par values) of securities 3. Includes all reverse repurchase agreements, including those that have been owned by nonbank dealer firms and dealer departments of commercial banks on arranged to make delivery on short sales and those for which the securities obtained a commitment, that is, trade-date basis, including any such securities that have have been used as collateral on borrowings, i.e., matched agreements. been sold under agreements to repurchase (RPs). The maturities of some repur­ 4. Includes both repurchase agreements undertaken to finance positions and chase agreements are sufficiently long, however, to suggest that the secunties “matched book” repurchase agreements. involved are not available for tracling purposes. Securities owned, and hence dealer Note. Data for positions are averages of daily figures, in terms of par value, positions, do not include securities to resell (reverse RPs). Before 1981, data for based on the number of trading days in the period. Positions are shown net and immediate positions include forward positions. are on a commitment basis. Data for financing are based on Wednesday figures, 2. Figures cover financing involving U.S. government and federal agency secu­ in terms of actual money borrowed or lent. rities, negotiable CDs, bankers acceptances, and commercial paper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.45 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding Millions of dollars, end of period 1980 1981 Agency 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. 1 Federal and federally sponsored agencies1..................... 103,848 112,472 137,063 188,076 188,743 193,229 195,056 194,926 198,828 2 Federal agencies.......................................................... 22,419 22,760 23,488 27,797 27,941 28,606 28,769 28,596 29,397 3 Defense Department2................................................ 1,113 983 968 636 631 610 600 591 576 4 Export-Import Bank3-4.............................................. 8,574 8,671 8,711 10,715 10,696 11,250 11,239 11,201 11,881 5 Federal Housing Administration5............................. 575 581 588 490 486 477 476 468 464 6 Government National Mortgage Association participation certificates6.................................... 4,120 3,743 3,141 2,842 2,842 2,817 2,817 2,817 2,817 7 Postal Service7.......................................................... 2,998 2,431 2,364 1,770 1,770 1,770 1,770 1,770 1,770 8 Tennessee Valley Authority...................................... 4,935 6,015 7,460 10,835 11,010 11,190 11,375 11,550 11,680 9 United States Railway Association7.......................... 104 336 356 509 506 492 492 199 209 10 Federally sponsored agencies1...................................... 81,429 89,712 113,575 160,279 160,802 164,623 166,287 166,330 169,431 11 Federal Home Loan Banks....................................... 16,811 18,345 27,563 38,819 39,380 41,258 41,819 42,275 43,791 12 Federal Home Loan Mortgage Corporation.............. 1,690 1,686 2,262 2,537 2,537 2,536 2,518 2,514 2,409 13 Federal National Mortgage Association..................... 30,565 31,890 41,080 53,889 53,643 55,185 54,605 54,110 54,666 14 Federal Land Banks.................................................. 17,127 19,118 20,360 12,365 12,365 12,365 11,507 11,507 11,507 15 Federal Intermediate Credit Banks........................... 10,494 11,174 11,469 1,821 1,821 1,821 1,388 1,388 1,388 16 Banks for Cooperatives............................................. 4,330 4,434 4,843 584 584 584 584 584 584 17 Farm Credit Banks1.................................................. 2,548 5,081 47,888 48,021 48,153 50,645 50,675 51,689 18 Student Loan Marketing Association8...................... 410 515 915 2,375 2,450 2,720 3,220 3,275 3,395 19 Other........................................................................ 2 2 2 1 1 1 1 2 2 Memo: 20 Federal Financing Bank debt7’9.................................... 28,711 38,580 51,298 83,903 85,440 87,460 88,420 89,444 94,101 Lending to federal and federally sponsored agencies 21 Export-Import Bank4.................................................... 5,208 5,834 6,898 10,067 10,067 10,654 10,654 10,654 11,346 22 Postal Service7.............................................................. 2,748 2,181 2,114 1,520 1,520 1,520 1,520 1,520 1,520 23 Student Loan Marketing Association8.......................... 410 515 915 2,375 2,450 2,720 3,220 3,275 3,395 24 Tennessee Valley Authority......................................... 3,110 4,190 5,635 9,110 9,285 9,465 9,650 9,825 9,955 25 United States Railway Association7............................. 104 336 356 509 506 492 492 199 209 Other Lending10 26 Farmers Home Administration...................................... 10,750 16,095 23,825 38,466 39,431 39,431 39,271 39,851 41,791 27 Rural Electrification Administration............................. 1,415 2,647 4,604 8,646 8,760 9,196 9,471 10,212 10,443 28 Other........................................................................... 4,966 6,782 6,951 13,210 13,421 13,982 14,142 13,908 15,442 1. In September 1977 the Farm Credit Banks issued their first consolidated bonds, of Housing and Urban Development; Small Business Administration; and the and in January 1979 they began issuing these bonds on a regular basis to replace Veterans Administration. the financing activities of the Federal Land Banks, the Federal Intermediate Credit 7. Off-budget. Banks, and the Banks for Cooperatives. Line 17 represents those consolidated 8. Unlike other federally sponsored agencies, the Student Loan Marketing As­ bonds outstanding, as well as any discount notes that have been issued. Lines 1 sociation may borrow from the Federal Financing Bank (FFB) since its obligations and 10 reflect the addition of this item. are guaranteed by the Department of Health, Education, and Welfare. 2. Consists of mortgages assumed by the Defense Department between 1957 and 9. The FFB, which began operations in 1974, is authorized to purchase or sell 1963 under family housing and homeowners assistance programs. obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs 3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. debt solely for the purpose of lending to other agencies, its debt is not included in 4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. the main portion of the table in order to avoid double counting. 5. Consists of debentures issued in payment of Federal Housing Administration 10. Includes FFB purchases of agency assets and guaranteed loans; the latter insurance claims. Once issued, these securities may be sold privately on the se­ contain loans guaranteed by numerous agencies with the guarantees of any partic­ curities market. ular agency being generally small. The Farmers Home Administration item consists 6. Certificates of participation issued prior to fiscal 1969 by the Government exclusively of agency assets, while the Rural Electrification Administration entry National Mortgage Association acting as trustee for the Farmers Home Admin­ contains both agency assets and guaranteed loans. istration; Department of Health, Education, and Welfare; Department Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Financial Statistics □ June 1981 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1980 1981 Type of issue or issuer. 1978 1979 1980 Oct. Nov. Dec. Jan.' Feb. Mar. 1 All issues, new and refunding!........................................................ 48,607 43,490 48,462 4,496 2,928 3,859 2,672 2,876 3,790 Type of issue 2 General obligation............................................................................ 17,854 12,109 14,100 1,056 734 558 725 872 1,230 3 Revenue ............................................................................................. 30,658 31,256 34,267 3,419 2,183 3,297 1,935 2,001 2,549 4 Housing Assistance Administration2.............................................. 5 U.S. government loans.................................................................... 95 125 95 21 11 4 12 3 11 Type of issuer 6 State ................................................................................................... 6,632 4,314 5,304 195 323 127 478 530 349 7 Special district and statutory authority.......................................... 24,156 23,434 26,972 2,863 1,638 2,332 1,421 1,411 1,887 8 Municipalities, counties, townships, school districts.................... 17,718 15,617 16,090 1,416 955 1,395 761 930 1,545 9 Issues for new capital, total.............................................................. 37,629 41,505 46,736 4,472 2,715 3,760 2,658 2,804 3,766 Use of proceeds 10 Education........................................................................................... 5,003 5,130 4,572 470 211 198 334 294 510 11 Transportation................................................................................... 3,460 2,441 2,621 282 256 53 147 322 237 12 Utilities and conservation................................................................ 9,026 8,594 8,149 903 369 408 630 447 783 13 Social welfare..................................................................................... 10,494 15,968 19,958 1,403 1,076 2,465 772 859 954 14 Industrial aid..................................................................................... 3,526 3,836 3,974 595 412 295 375 274 442 15 Other purposes.................................................................................. 6,120 5,536 7,462 819 391 341 400 608 840 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 contri­ butions to tne local authority. 1.47 NEW SECURITY ISSUES of Corporations Millions of dollars 1980 1981 Type of issue or issuer. or use 1978 1979 1980r Sept. Oct.' Nov. Dec.' Jan. Feb. Mar. 1 All issues1....................................................................... 47,230 51,533 73,688 5,025 5,819 3,936' 5,933 5,581' 4,157 6,667 2 Bonds............................................................................... 36,872 40,208 53,199 2,916 3,284 2,164' 3,044 3,386' 2,834 4,519 Type of offering 3 Public............................................................................. 19,815 25,814 41.587 2,421 2,756 1,405 1,719 2,928 2,408 4,022 4 Private placement.......................................................... 17,057 14,394 11.612 495 528 759' 1,325 458' 426 497 Industry group 5 Manufacturing................................................................ 9,572 9,678 15.409 553 623 132' 609 1,635 1,140 1,204 6 Commercial and miscellaneous.................................... 5,246 3,948 6.688 390 320 442' 509 231 356 212 7 Transportation................................................................ 2,007 3,119 3.329 409 240 147' 165 353 45 172 8 Public utility................................................................... 7,092 8,153 9.556 569 769 565 314 800 593 594 9 Communication.............................................................. 3,373 4,219 6.683 517 763 147' 653 62' 272 958 10 Real estate and financial.............................................. 9,586 11,094 11.534 477 569 732' 793 306 430 1,380 11 Stocks ............................................................................. 10,358 11,325 20,490 2,109 2,535 1,772 2,889 2,195' 1,323 2,148 Type 12 Preferred.......................................................................... 2,832 3,574 3.632 392 543 256 241 364' 149 298 13 Common......................................................................... 7,526 7,751 16.858 1,717 1,992 1,516 2,648 1,831 1,174 1,850 Industry group 14 Manufacturing................................................................ 1,241 1,679 4.839 502 851 418 844 609' 204 735 15 Commercial and miscellaneous.................................... 1,816 2,623 5.245 569 400 509 908 603 589 816 16 Transportation................................................................ 263 255 549 54 117 53 95 124 81 17 17 Public utility.................................................................... 5,140 5,171 6.230 633 526 227 669 562 260 414 18 Communication.............................................................. 264 303 567 6 67 113 65 14 31 19 Real estate and financial.............................................. 1,631 12,931 3.059 345 574 452 308 284 159 167 1. Figures, which represent gross proceeds of issues maturing in more than one 1933, employee stock plans, investment companies other than closed-end, intra­ year. sold for cash in the United States, are principal amount or number of units corporate transactions, and sales to foreigners, multiplied by offering price. Excludes offerings of less than $100,000, secondary offerings, undefined or exempted issues as defined in the Securities Act of Source. Securities and Exchange Commission. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A35 1.48 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1980 1981 Item 1979 1980 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Investment Companies1 1 Sales of own shares2...................................................... 7,495 15,266 1,405 1,523 1,289 1,242 1,676 1,347 1,696 2,000 2 Redemptions of own shares3........................................ 8,393 12,012 1,228 1,362 1,086 1,720 1,193 960 1,112 1,594 3 Net sales.......................................................................... -898 3,254 177 161 203 -478 483 387 584 406 4 Assets4............................................................................ 49,277 58,400 55,779 56,156 60,329 58,400 56,160 56,452 59,146 58,531 5 Cash position5............................................................ 4,983 5,321 5,481 5,460 5,467 5,321 4,636 4,882 4,971 5,068 6 Other............................................................................ 44,294 53,079 50,298 50,696 54,862 53,079 51,524 51,570 54,175 53,463 1. Excluding money market funds. 5. Also includes all U.S. government securities and other short-term debt se­ 2. Includes reinvestment of investment income dividends. Excludes reinvestment curities. of capital gains distributions and share issue of conversions from one fund to another in the same group. Note. Investment Company Institute data based on reports of members, which 3. Excludes share redemption resulting from conversions from one fund to an­ comprise substantially all open-end investment companies registered with the Se­ other in the same group. curities and Exchange Commission. Data reflect newly formed companies after 4. Market value at end of period, less current liabilities. their initial offering of securities. 1.49 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1979 1980 1981 Account 1978 1979 1980 Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Profits before tax............................................................ 223.3 255.4 245.5 262.0 255.4 277.1 217.9 237.6 249.2 258.7 2 Profits tax liability.......................................................... 83.0 87.6 82.3 86.4 87.2 94.2 71.5 78.5 85.1 90.4 3 Profits after tax.............................................................. 140.3 167.7 163.1 173.6 168.2 182.9 146.4 159.1 164.1 168.3 4 Dividends.................................................................... 44.6 50.2 56.0 50.2 51.6 53.9 55.7 56.7 57.7 59.6 5 Undistributed profits................................................ 95.7 117.6 107.1 123.4 116.6 129.0 90.7 102.4 106.4 108.7 6 Capital consumption allowances.................................. 122.9 139.5 158.3 142.6 146.4 151.7 155.4 160.5 165.4 170.6 7 Net cash flow.................................................................. 218.6 257.1 265.4 266.0 263.0 280.7 246.1 267.9 271.8 279.3 Source. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Financial Statistics □ June 1981 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1979 1980 Account 1975 1976 1977 1978 Q3 Q4 Ql Q2 Q3 Q4 1 Current assets................................................................ 759.0 826.8 902.1 1,030.0 1,169.5 1,200.9 1,235.2 1,233.8 1,255.8 1,279.9 2 Cash.................................................................................. 82.1 88.2 95.8 104.5 103.7 116.1 110.2 111.5 113.2 120.8 3 U.S. government securities.......................................... 19.0 23.4 17.6 16.3 15.8 15.6 15.1 13.8 16.3 17.0 4 Notes and accounts receivable.................................... 272.1 292.8 324.7 383.8 453.0 456.8 471.2 464.2 479.2 491.1 5 Inventories...................................................................... 315.9 342.4 374.8 426.9 489.4 501.7 519.5 525.7 525.1 525.1 6 Other................................................................................ 69.9 80.1 89.2 98.5 107.7 110.8 119.3 118.7 122.0 125.9 7 Current liabilities.......................................................... 451.6 494.7 549.4 665.5 777.8 809.1 838.3 828.1 852.1 877.2 8 Notes and accounts payable........................................ 264.2 281.9 313.2 373.7 438.8 456.3 467.9 463.1 477.3 498.2 9 Other................................................................................ 187.4 212.8 236.2 291.7 339.0 352.8 370.4 364.9 374.8 379.0 10 Net working capital........................................................ 307.4 332.2 352.7 364.6 391.7 391.8 397.0 405.7 403.7 402.7 11 Memo: Current ratio 1.................................................. 1.681 1.672 1.642 1.548 1.504 1.484 1.474 1.490 1.474 1.459 1. Ratio of total current assets to total current liabilities. All data in this table reflect the most current benchmarks. Complete data are available upon request from the Flow of Funds Section, Division of Research and Note. For a description of this series, see “Working Capital of Nonfinancial Statistics. Corporations” in the July 1978 Bulletin, pp. 533-37. Source. Federal Trade Commission. 1.51 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1980 1981 Industry 1979 1980 198U Q2 Q3 04 Ql Q21 Q31 Q41 1 Total nonfarm business................................................ 270.46 295.63 320.51 294.36 296.23 299.58 312.24 311.87 322.88 333.09 Manufacturing 2 Durable goods industries.............................................. 51.07 58.91 63.99 59.38 58.19 59.77 61.24 60.28 64.90 68.65 3 Nondurable goods industries........................................ 47.61 56.90 63.89 56.32 58.21 58.86 63.27 61.71 65.56 64.80 Nonmanufacturing 4 Mining.............................................................................. 11.38 13.51 16.91 12.81 13.86 15.28 16.20 15.93 17.51 17.87 Transportation 5 Railroad...................................................................... 4.03 4.25 4.39 4.06 3.98 4.54 4.23 4.10 4.41 4.81 6 Air................................................................................ 4.01 4.01 3.65 4.27 4.06 3.77 3.85 3.17 3.09 4.55 7 Other............................................................................ 4.31 3.82 4.10 3.76 4.18 3.39 3.66 4.21 4.07 4.35 Public utilities 8 Electric........................................................................ 27.65 28.12 28.93 27.91 28.14 27.54 27.69 28.98 30.26 28.73 9 Gas and other............................................................ 6.31 7.32 8.33 7.12 7.44 7.41 8.36 8.40 7.98 8.57 10 Trade and services........................................................ 79.26 81.79 85.22 81.07 81.19 82.91 83.43 84.55 84.12 88.33 11 Communication and other2.......................................... 34.83 36.99 41.09 37.66 36.97 36.11 40.32 40.54 40.97 42.43 1. Anticipated by business. Source. Survey of Current Business (U.S. Dept, of Commerce). 2. “Other” consists of construction; social services and membership organiza­ tions; and forestry, fisheries, and agricultural services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.52 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1980 1981 Account 1975 1976 1977 1978 1979 01 02 03 04 01 Assets Accounts receivable, gross 1 Consumer................................................................................ 36.0 38.6 44.0 52.6 65.7 67.7 70.2 71.7 73.6 76.1 2 Business.................................................................................. 39.3 44.7 55.2 63.3 70.3 70.6 70.3 66.9 72.3 72.7 3 Total.................................................................................... 75.3 83.4 99.2 116.0 136.0 138.4 140.4 138.6 145.9 148.7 4 Less: Reserves for unearned income and losses.... 9.4 10.5 12.7 15.6 20.0 20.4 21.4 22.3 23.3 24.3 5 Accounts receivable, net................................................... 65.9 72.9 86.5 100.4 116.0 118.0 119.0 116.3 122.6 124.5 6 Cash and bank deposits..................................................... 2.9 2.6 2.6 3.5 7 Securities................................................................................ 1.0 1.1 .9 1.3 24.9' 23.7 26.1 28.3 27.5 30.8 8 All other.................................................................................. 11.8 12.6 14.3 17.3 9 Total assets...................................................................... 81.6 89.2 104.3 122.4 140.9 141.7 145.1 144.7 150.1 155.3 Liabilities 10 Bank loans.............................................................................. 8.0 6.3 5.9 6.5 8.5 9.7 10.1 10.1 13.2 13.1 11 Commercial paper................................................................. 22.2 23.7 29.6 34.5 43.3 40.8 40.7 40.5 43.4 44.2 Debt 12 Short-term, n.e.c............................................................... 4.5 5.4 6.2 S.l 8.2 7.4 7.9 7.7 7.5 8.2 13 Long-term, n.e.c............................................................... 27.6 32.3 36.0 43.6 46.7 48.9 50.5 52.0 52.4 51.6 14 Other.................................................................................... 6.8 8.1 11.5 12.6 14.2 15.7 16.0 14.6 14.3 17.3 15 Capital, surplus, and undivided profits........................ 12.5 13.4 15.1 17.2 19.9 19.2 19.9 19.8 19.4 20.9 16 Total liabilities and capital............................................ 81.6 89.2 104.3 122.4 140.9 141.7 145.1 144.7 150.1 155.3 1. Beginning Ql 1979. asset items on lines 6. 7. and 8 are combined. Note. Components may not add to totals due to rounding. 1.53 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments Accounts receivable receivable Type outstanding Mar. 31. 1981 1981 1981 1981' Jan. Feb. Mar. Jan. Feb. Mar. Jan. Feb. Mar. 1 72,650 702 280 -773 16,811 18,207 18,096 16,109 17,927 18,869 2 Retail automotive (commercial vehicles).................................... 11.766 - 126 - 160 -295 921 885 749 1.047 1.045 1.044 3 Wholesale automotive.................................................................... 11.019 -310 -494 - 1.075 5.554 5.351 5.050 5.864 5.845 6.125 4 Retail paper on business, industrial and farm equipment...................................................................... 23.657 458 591 556 1.564 1.800 1.788 1.106 1.209 1.232 5 Loans on commercial accounts receivable and factored com­ mercial accounts receivable.................................................. 7.867 519 -262 178 6.362 7.792 8.142 5.843 8.054 7.964 6 All other business credit................................................................ 18.341 161 605 -137 2.410 2.379 2.367 2.249 1.774 2.504 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Financial Statistics □ June 1981 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1980 1981 Item 1978 1979 1980 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Terms and yields in primary and secondary markets Primary Markets Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars)........................ 62.6 74.4 83.5 84.0 77.1 90.1 87.0 90.3 90.9' 88.5 2 Amount of loan (thousands of dollars)...................... 45.9 53.3 59.3 61.3 56.1 63.0 63.0 65.6 64.5' 64.1 3 Loan/price ratio (percent)............................................ 75.3 73.9 73.3 75.0 75.2 72.9 75.6 75.6 73.9' 74.7 4 Maturity (years)............................................................ 28.0 28.5 28.2 28.2 27.6 28.2 29.1 29.0 28.7 28.6 5 Fees and charges (percent of loan amount)2............ 1.39 1.66 2.10 2.16 2.15 2.40 2.40 2.59 2.64 2.61 6 Contract rate (percent per annum)............................ 9.30 10.48 12.25 12.20 12.62 12.80 12.80 13.02 13.48 13.62 Yield (percent per annum) 7 FHLBB series'.............................................................. 9.54 10.77 12.65 12.60 13.04 13.28 13.26 13.54 14.02 14.15 8 HUD series4.................................................................... 9.68 11.15 13.95 14.10 14.70 15.05 14.95 15.10 15.25 15.75 Secondary Markets Yield (percent per annum) 9 FHA mortgages (HUD series)5.................................. 9.70 10.87 13.42 14.38 14.47 14.08 14.23 14.79 15.04 15.91 10 GNMA securities6.......................................................... 8.98 10.22 12.55 12.91 13.55 13.62 13.50 14.13 14.22 15.31 FNMA auctions7 11 Government-underwritten loans.............................. 9.77 11.17 14.11 14.94 15.53 15.21 14.87 15.24 15.67 16.54 12 Conventional loans.................................................... 10.01 11.77 14.43 14.70 15.30 15.54 14.95 15.05 15.33 15.66 Activity in secondary markets Federal National Mortgage Association Mortgage holdings (end of period) 43,311 51,091 57,327 56,188 56,619 57,327 57,390 57,434 57,362 57,436 1 1 5 4 V FH A A -g - u in a s r u an re te d e .. d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 0 , , 2 5 4 4 3 4 2 1 4 0 , , 4 4 8 9 9 6 38,9698 38,040 38,381 38,969 38,955 38,972 38,878 38,919 16 Conventional.............................................................. 11,524 16,106 18,358 18,148 18,238 18,358 18,435 18,462 18,484 18,517 Mortgage transactions (during period) 17 Purchases........................................................................ 12,303 10,805 8,100 771 579 855 185 161 87 206 18 Sales................................................................................ 9 0 0 0 0 0 0 0 0 0 Mortgage commitments9 19 Contracted (during period).......................................... 18,959 10,179 8,044 514 472 403 241 244 320 383 20 Outstanding (end or period)........................................ 9,185 6,409 3,278 4,399 3,963 3,278 3,063 2,683 2,173 2,031 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered........................................................................ 12,978 8,860 8,605 427.8 252.0 242.1 210.7 155.3 145.3' 139.1 22 Accepted...................................................................... 6,747.2 3,921 4,002 257.7 135.6 110.8 93.0 104.7 104.7' 114.5 Conventional loans 23 Offered........................................................................ 9,933.0 4,495 3,639 107.6 81.6 84.8 32.0 108.6' 149.2' 126.9 24 Accepted...................................................................... 5,111 2,344 1,749 93.9 68.8 54.1 30.3 79.1' 97.6' 92.0 Federal Home Loan Mortgage Corporation Mortgage holdings (end of period)10 3,064 4,035 5,067 4,727 4,843 5,067 5,039 5,107 5,161 5,176 26 FHA/VA...................................................................... 1,243 1,102 1,033 1,044 1,038 1,033 1,029 1,025 1,021 1,017 27 Conventional.............................................................. 1,165 1,957 2,830 3,629 3,715 2,830 2,825 2,883 2,931 2,952 Mortgage transactions (during period) 28 Purchases........................................................................ 6,525 5,717 3,722 398 231 285 152 174 148 125 29 Sales................................................................................ 6,211 4,544 2,526 187 94 48 168 94 127 97 Mortgage commitments11 30 Contracted (during period).......................................... 7,451 5,542 3,859 222 180 126 203 294 768 886 31 Outstanding (end oi period)........................................ 1,410 797 447 726 653 447 487 394 699 678 1. Weighted averages based on sample surveys of mortgages originated by major assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying institutional lender groups. Compiled by the Federal Home Loan Bank Board in the prevailing ceiling rate. Monthly figures are unweighted averages of Monday cooperation with the Federal Deposit Insurance Corporation. quotations for the month. 2. Includes all fees, commissions, discounts, and “points” paid (by the borrower 7. Average gross yields (before deduction of 38 basis points for mortgage serv­ or the seller) in order to obtain a loan. icing) on accepted bids in Federal National Mortgage Association’s auctions of 4- 3. Average effective interest rates on loans closed, assuming prepayment at the month commitments to purchase home mortgages, assuming prepayment in 12 end of 10 years. years for 30-year mortgages. No adjustments are made for FNMA commitment 4. Average contract rates on new commitments for conventional first mortgages, fees or stock related requirements. Monthly figures are unweighted averages for rounded to the nearest 5 basis points; from Department of Housing and Urban auctions conducted withm the month. Development. 8. Beginning March 1980, FHA-insured and VA-guaranteed mortgage holdings 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing in lines 14 and 15 are combined. Administration-insured first mortgages for immediate delivery in the private sec­ 9. Includes some multifamily and nonprofit hospital loan commitments in ad­ ondary market. Any gaps in data are due to periods of adjustment to changes in dition to 1- to 4-family loan commitments accepted in FNMA’s free market auction maximum permissible contract rates. system, and through the FNMA-GNMA tandem plans. 6. Average net yields to investors on Government National Mortgage Associ­ 10. Includes participation as well as whole loans. ation guaranteed, mortgage-backed, fully modified pass-through securities, 11. Includes conventional and government-underwritten loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A39 1.55 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1980 1981 Type of holder, and type of property 1978 1979 1980 Ql Q2 Q3 Q4 Ql 1All holders.............................................................................. 1,169,412 1,326,750 1,451,840 1,357,660 1,380,928 1,414,881 1,451,840 1,473,919' 2 1- to 4-family.......................................................................... 765,217 878,931 960,422 897,608 910,286 935,393 960,422 973,601' 3Multifamily.............................................................................. 121,138 128,852 136,580 130,363 132,194 134,193 136,580 139,047' 4 Commercial............................................................................ 211,851 236,451 258,338 242,776 247,444 251,651 258,338 262,140' 5 71,206 82,516 96,500 86,913 91,004 93,644 96,500 100,115' 6 Major financial institutions.................................................. 848,177 938,567 998,386 951,276 958,750 977,281 998,386 1,008,265' 7 Commercial banks1............................................................ 214,045 245,187 264,602 250,702 253,103 258,003 264,602 268,102' 8 1- to 4-family.................................................................. 129,167 149,460 160,746 152,553 153,753 156,737 160,746 162,872' 9 Multifamily...................................................................... 10,266 11,180 12,304 11,557 11,764 11,997 12,304 12,467 10 Commercial.................................................................... 66,115 75,957 82,688 77,993 79,110 80,626 82,688 83,782 11 Farm................................................................................ 8,497 8,590 8,864 8,599 8,476 8,643 8,864 8,981 12 Mutual savings banks........................................................ 95,157 98,908 99,827 99,151 99,150 99,306 99,827 99,840 13 1- to 4-family.................................................................. 62,252 64,706 65,307 64,865 64,864 64,966 65,307 65,316 14 Multifamily...................................................................... 16,529 17,340 17,180 17,223 17,223 17,249 17,340 17,342 15 Commercial.................................................................... 16,319 16,963 17,120 17,004 17,004 17,031 17,120 17,122 16 Farm................................................................................ 57 59 60 59 59 60 60 60 17 Savings and loan associations.......................................... 432,808 475,688 502,812 478,952 481,042 491,895 502,812 507,040 18 1- to 4-family................................................................. 356,114 394,345 419,446 398,009 399,746 409,896 419,446 422,964 19 Multifamily...................................................................... 36,053 37,579 38,113 37,215 37,329 37,728 38,113 38,443 20 Commercial.................................................................... 40,461 43,764 45,253 43,728 43,967 44,271 45,253 45,633 21 Life insurance companies................................................ 106,167 118,784 131,145 122,471 125,455 128,077 131,145 133,283 22 1- to 4-family.................................................................. 14,436 16,193 17,911 16,850 17,796 17,996 17,911 18,203 23 Multifamily...................................................................... 19,000 19,274 19,614 19,590 19,284 19,357 19,614 19,934 24 Commercial.................................................................... 62,232 71,137 80,776 73,618 75,693 77,995 80,776 82,093 25 Farm................................................................................ 10,499 12,180 12,844 12,413 12,682 12,729 12,844 13,053 26 Federal and related agencies................................................ 81,739 97,084 114,300 103,921 108,539 110,526 114,300 116,306' 27 Government National Mortgage Association................ 3,509 3,852 4,642 3,919 4,466 4,389 4,642 4,966 28 1- to 4-family.................................................................. 877 763 704 749 736 719 704 730 29 Multifamily...................................................................... 2,632 3,089 3,938 3,170 3,730 3,670 3,938 4,236 30 Farmers Home Administration........................................ 926 1,274 3,492 2,845 3,375 3,525 3,492 2,837' 31 1- to 4-family.................................................................. 288 417 916 1,139 1,383 978 916 1,321' 32 Multifamily...................................................................... 320 71 610 408 636 774 610 528' 33 Commercial................................................................... 101 174 411 409 402 370 411 479' 34 Farm................................................................................ 217 612 1,555 889 954 1,403 1,555 509' 35 Federal Housing and Veterans Administration............ 5,305 5,555 5,640 5,621 5,691 5,600 5,640 5,723 36 1- to 4-family.................................................................. 1,673 1,955 2,051 2,022 2,085 1,986 2,051 2,098 37 Multifamily...................................................................... 3,632 3,600 3,589 3,599 3,606 3,614 3,589 3,625 38 Federal National Mortgage Association........................ 43,311 51,091 57,327 53,990 55,419 55,632 57,327 57,362 39 1- to 4-family.................................................................. 37,579 45,488 51,775 48,394 49,837 50,071 51,775 51,842 40 Multifamily............................................ ...................... 5,732 5,603 5,552 5,596 5,582 5,561 5,552 5,520 41 Federal Land Banks.......................................................... 25,624 31,277 38,131 33,311 35,574 36,837 38,131 40,258 42 1- to 4-family.................................................................. 927 1,552 2,099 1,708 1,893 1,985 2,099 2,228 43 Farm................................................................................ 24,697 29,725 36,032 31,603 33,681 34,852 36,032 38,030 44 Federal Home Loan Mortgage Corporation................ 3,064 4,035 5,068 4,235 4,014 4,543 5,068 5,160 45 1- to 4-family.................................................................. 2,407 3,059 3,873 3,210 3,037 3,459 3,873 3,952 46 Multifamily...................................................................... 657 976 1,195 1,025 977 1,084 1,195 1,208 47Mortgage pools or trusts2.................................................... 88,633 119,278 142,258 124,632 129,647 136,583 142,258 147,251' 48 Government National Mortgage Association................ 54,347 76,401 93,874 80,843 84,282 89,452 93,874 97,184 49 1- to 4-family.................................................................. 52,732 74,546 91,602 78,872 82,208 87,276 91,602 94,810 50 Multifamily...................................................................... 1,615 1,855 2,272 1,971 2,074 2,176 2,272 2,374 51 Federal Home Loan Mortgage Corporation................ 11,892 15,180 16,854 15,454 16,120 16,659 16,854 17,100 52 1- to 4-family.................................................................. 9,657 12,149 13,471 12,359 12,886 13,318 13,471 13,680 53 Multifamily...................................................................... 2,235 3,031 3,383 3,095 3,234 3,341 3,383 3,420 54 Farmers Home Administration........................................ 22,394 27,697 31,530 28,335 29,245 30,472 31,530 32,967' 55 1- to 4-family.................................................................. 13,400 14,884 16,683 14,926 15,224 16,226 16,683 16,640' 56 Multifamily...................................................................... 1,116 2,163 2,612 2,159 2,159 2,235 2,612 2,825' 57 Commercial.................................................................... 3,560 4,328 5,271 4,495 4,763 5,059 5,271 5,382' 58 Farm................................................................................ 4,318 6,322 6,964 6,755 7,099 6,952 6,964 8,120' 59 Individual and others3.......................................................... 150,863 171,821 196,896 177,831 183,992 190,491 196,8% 203,121' 60 1- to 4-family...................................................................... 83,708 99,414 113,838 101,952 104,838 109,780 113,838 116,945' 61 Multifamily.......................................................................... 21,351 23,251 26,058 23,755 24,596 25,407 26,058 27,165' 62 Commercial........................................................................ 22,883 24,128 26,819 25,529 26,505 26,299 26,819 27,649' 63 Farm.................................................................................... 22,921 25,028 30,181 26,595 28,053 29,005 30,181 31,362 1. Includes loans held by nondeposit trust companies but not bank trust de­ Note. Based on data from various institutional and governmental sources, with partments. some auarters estimated in part by the Federal Reserve in conjunction with the 2. Outstanding principal balances of mortgages backing securities insured or Federal Home Loan Bank Board and the Department of Commerce. Separation guaranteed by the agency indicated. of nonfarm mortgage debt by type of property, if not reported directly, and in­ 3. Other holders include mortgage companies, real estate investment trusts, state terpolations and extrapolations when required, are estimated mainly by the Federal and local credit agencies, state and local retirement funds, noninsured pension Reserve. Multifamily debt refers to loans on structures of five or more units. funds, credit unions, and U.S. agencies for which amounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Financial Statistics □ June 1981 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1980 1981 Holder, and type of credit 1978 1979 1980 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Amounts outstanding (end of period) 1 Total........................................................... 273,645 312,024 313,435 307,222 308,051 313,435 310,554 309,188 310,766 313,419 By major holder 2 Commercial banks.................................... 136.016 154.177 145,765 145.895 145.147 145.765 143.749 142,030 141,897 142.070 3 Finance companies.................................... 54.298 68.318 76,756 74.985 75.690 76.756 77.131 78.090 79.490 81,033 4 Credit unions.............................................. 44.334 46.517 44.041 43.518 43.606 44.041 43.601 43.776 44,212 44.390 5 Retailers-.................................................... 25.987 28,119 29.410 25.703 26.469 29.410 28.3(H) 27,329 26,965 27,227 6 Savings and loans...................................... 7.097 8.424 9,911 9.611 9.687 9.911 10,023 10,173 10,458 10,792 7 Gasoline companies.................................. 3.220 3.729 4.717 4.736 4.662 4.717 4,929 4.958 4,898 5.046 8 Mutual savings banks................................ 2.693 2.740 2.835 2.774 2.790 2.835 2.821 2,832 2,846 2,861 By major type of credit 9 Automobile................................................ 101.647 116.362 116.327 116.657 116.517 116.327 115.262 115,677 117,517 118,479 10 Commercial banks................................ 60.510 67,367 61.025 62.350 61.848 61.025 59.608 59,061 59,378 59,252 11 Indirect paper.................................... 33.850 38.338 34.857 35.572 35,284 34.857 33,947 33,667 34.016 33,931 12 Direct loans........................................ 26.660 29,029 26.168 26.778 26.564 26.168 25,661 25,394 25.362 25,321 13 Credit unions.......................................... 21.200 22.244 21.060 20.810 20.852 21.060 20.850 20,933 21,142 21,227 14 Finance companies................................ 19.937 26,751 34.242 33.497 33.817 34.242 34.804 35,683 36,997 38,000 15 Revolving.................................................... 48,309 56.937 59.862 54.598 55.304 59.862 58.985 57,566 56,831 57.322 16 Commercial banks................................ 24.341 29,862 30.001 28.331 28.360 30.001 29.952 29,412 29,051 29,127 17 Retailers.................................................. 20.748 23,346 25.144 21.531 22.282 25.144 24.104 23,196 22,882 23,149 18 Gasoline companies.............................. 3.220 3.729 4.717 4.736 4.662 4.717 4.929 4,958 4,898 5,046 19 Mobile home.............................................. 15.235 16,838 17.327 17.276 17.293 17.327 17.244 17,189 17,273 17,422 20 Commercial banks................................ 9.545 10.647 10.376 10,502 10.452 10.376 10,271 10,174 10.153 10,142 21 Finance companies................................ 3.152 3.390 3.745 3.657 3.702 3.745 3,741 3,740 3,762 3,828 22 Savings and loans.................................. 2,067 2.307 2.737 2,654 2.675 2.737 2,768 2,809 2,888 2,980 23 Credit unions.......................................... 471 494 469 463 464 469 464 466 470 472 24 Other............................................................ 108.454 121.887 119,919 118.691 118.937 119,919 119,063 118,756 119,145 120,196 25 Commercial banks................................ 41.620 46.301 44.363 44.712 44.487 44,363 43.918 43,383 43,315 43,549 26 Finance companies................................ 31.209 38.177 38,769 37.831 38.171 38,769 38.586 38.667 38,731 39,205 27 Credit unions.......................................... 22.663 23.779 22.512 22.245 22.290 22.512 22,287 22,377 22,600 22,691 28 Retailers.................................................. 5.239 4.773 4.266 4.172 4.187 4.266 4,196 4,133 4,083 4,078 29 Savings and loans.................................. 5.030 6,117 7.174 6.957 7.012 7.174 7,255 7,364 7.570 7,812 30 Mutual savings banks............................ 2.693 2.740 2.835 2.774 2.790 2.835 2,821 2,832 2,846 2,861 Net change (during period)3 31 Total............................................................ 43,079 38,381 1,410 702 839 1,619 869 1,996 3,108 2,331 By major holder 32 Commercial banks.................................... 23,641 18.161 -8.412 -336 -120 -276 -1.357 -544 612 -345 33 Finance companies.................................... 9.430 14.020 8.438 454 594 860 1,113 1,530 1,539 1.253 34 Credit unions.............................................. 6,729 2.185 -2.475 63 218 378 288 444 287 272 35 Retailers2.................................................... 2.497 2.132 1.291 134 52 316 409 103 253 531 36 Savings and loans...................................... 7 1.327 1.485 246 -14 190 232 254 418 421 37 Gasoline companies.................................. 257 509 988 98 72 83 106 209 -6 141 38 Mutual savings banks................................ 518 47 95 43 37 68 78 0 5 58 By major type of credit 39 Automobile................................................ 18.736 14.715 -35 201 245 302 -63 979 1,682 428 40 Commercial banks................................ 10.933 6,857 -6.342 -348 -138 -491 -1.253 -346 229 -461 41 Indirect paper............................... 6,471 4,488 -3.481 -170 -44 -181 -839 -229 268 -256 42 Direct loans........................................ 4,462 2,369 -2.861 -178 -94 -310 -414 -117 -39 -205 43 Credit unions.......................................... 3.101 1.044 -1.184 18 101 174 206 211 132 142 44 Finance companies............................ 4.702 6,814 7.491 531 282 619 984 1,114 1.321 747 45 Revolving................................................ 9.035 8.628 2.925 273 265 616 557 441 587 838 46 Commercial banks................................ 5.967 5,521 139 -19 121 211 59 166 346 153 47 Retailers............................................. 2.811 2.598 1.798 194 72 322 392 66 247 544 48 Gasoline companies......................... 257 509 988 98 72 83 106 209 -6 141 49 Mobile home.............................................. 286 1.603 488 141 24 66 -24 -47 88 145 50 Commercial banks................................ 419 1.102 -271 -21 -33 -34 -85 -102 -35 -15 51 Finance companies................................ 74 238 355 42 44 48 15 18 25 58 52 Savings and loans.................................. -276 240 430 120 11 47 46 31 97 99 53 Credit unions...................................... 69 23 -25 0 2 5 0 6 1 3 54 Other............................................................ 15,022 13,435 -1.968 87 305 635 399 623 751 920 55 Commercial banks................................ 6.322 4,681 -1.938 52 -70 38 -78 -262 72 -22 56 Finance companies................................ 4,654 6,968 592 -119 268 193 114 398 193 448 57 Credit unions.......................................... 3.559 1,118 -1.266 45 115 199 82 227 154 127 58 Retailers.................................................. -314 -466 -507 -60 -20 -6 17 37 6 -13 59 Savings and loans.................................. 283 1,087 1.056 126 -25 143 186 223 321 322 60 Mutual savings banks............................ 518 47 95 43 37 68 78 0 5 58 1. The Board’s series cover most short- and intermediate-term credit extended 2. Includes auto dealers and excludes 30-day charge credit held by travel and to individuals through regular business channels, usually to finance the purchase entertainment companies. of consumer goods and services or to refinance debts incurred for such purposes, 3. Net change equals extensions minus liquidations (repayments, charge-offs, and scheduled to be repaid (or with the option of repayment) in two or more and other credit): figures for all months are seasonally adjusted. installments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A41 1.57 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations Millions of dollars; monthly data are seasonally adjusted. 1980 1981 Holder, and type of credit 1978 1979 1980 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Extensions 1 297,668 324,777 305.887 27,365 25,991 27,149 27,059 28,706 29,822 28,878 By major holder Commercial banks........................................................ 142.433 154.733 133.605 11.977 11.432 11.484 10.397 11.648 12.676 11.986 3 Finance companies........................................................ 50.505 61.518 60.801 5.323 4.852 5.185 5.904 6.193 5.911 5,218 4 Credit unions.................................................................. 38.111 34.926 29.594 2.872 2.795 3.035 2.994 3.167 3.153 3.181 5 Retailersi........................................................................ 44.571 47.676 50.959 4.291 4.250 4.497 4.673 4.500 4.685 5,002 6 Savings and loans.......................................................... 3.724 5.901 6.621 695 444 658 715 751 1.038 985 7 Gasoline companies...................................................... 16.017 18.005 22.402 2.009 2.024 2.061 2.130 2.284 2.180 2,272 8 Mutual savings banks.................................................... 2.307 2.018 1.905 198 194 229 246 163 179 *”234 B\ major type of credit 9 Automobile.................................................................... 87.981 93.901 83.002 7.544 7.117 7.234 7.237 8.333 8.7(H) 7.205 10 Commercial banks.................................................... 52.969 S^.SS4 40.657 3.791 3.552 3.271 2.598 3.560 4.117 3,438 11 Indirect paper........................................................ 29.342 29.623 22.269 2.135 1.962 1.857 1.230 1.944 2.365 1.929 12 Direct loans........................................................... 23.627 23.931 18.388 1.656 1.590 1.414 1.368 1.616 1.752 1.509 13 Credit unions.............................................................. 18.539 17.397 15.294 1.457 1.402 1.538 1.592 < 1.613 1.586 1,589 14 Finance companies.................................................... 16.473 22.950 27.051 2.296 2.163 2.425 3.047 3.160 2.997 2,178 15 Revolving........................................................................ 105.125 120.174 129.580 11.124 10.953 11.614 11.483 11.867 12.071 12,352 16 Commercial banks.................................................... 51.333 61.048 61.847 5.264 5.155 5.554 5.185 5.602 5.695 5,561 17 Retailers...................................................................... 37.775 41.121 45.331 3.851 3.774 3.999 4.168 3.981 4.196 4,519 18 Gasoline companies.................................................. 16.017 18.005 22.402 2.009 2.024 2.061 2.130 2.284 2.180 2,272 19 Mobile home.................................................................. 5.412 6.471 5.098 513 424 479 383 409 641 551 20 Commercial banks.................................................... 3.697 4.542 2.942 257 243 254 171 185 259 251 21 Finance companies.................................................... 886 797 898 89 93 89 81 88 88 100 ■>? Savings and loans...................................................... 609 948 1.146 159 74 119 119 118 269 184 23 Credit unions.............................................................. 220 184 113 8 14 17 12 18 25 16 24 Other................................................................................ 99.150 104.231 88.207 8.184 7.497 7.822 7.956 8.097 8.410 8,770 25 Commercial banks.................................................... 34.434 35.589 28.159 2.665 2.482 2.405 2.443 2.301 2.605 2.736 26 Finance companies.................................................... 33.146 37.771 32.852 2.938 2.596 2.671 2.776 2.945 2.826 2,940 27 Credit unions.............................................................. 19.352 17.345 14.187 1.407 1.379 1.480 1.390 1.536 1.542 1.576 28 Retailers...................................................................... 6.796 6.555 5.628 440 476 498 505 519 489 483 29 Savings and loans...................................................... 3.115 4.953 5.476 536 370 539 596 633 769 801 30 Mutual savings banks................................................ 2.307 2.018 1.905 198 194 229 246 163 179 234 Liquidations 31 254,589 286,396 304.477 26,663 25,152 25,530 26,190 26,710 26,714 26,547 By major holder 32 Commercial banks........................................................ 118.792 136.572 142.017 12.313 11.552 11.760 11.754 12.192 12.064 12,331 33 Finance companies........................................................ 41.075 47.498 52.363 4.869 4.258 4.325 4.791 4.663 4.372 3.965 34 Credit unions.................................................................. 31.382 32.741 32.069 2.809 2.577 2.657 2.706 2.723 2.866 2,909 35 Retailers1........................................................................ 42.074 45.544 49.668 4.157 4.198 4.181 4.264 4.397 4.432 4,471 36 Savings and loans.......................................................... 3.717 4.574 5.136 449 458 468 483 497 620 564 37 Gasoline companies...................................................... 15.760 17.496 21.414 1.911 1.952 1.978 2.024 2.075 2.186 2.131 38 Mutual savings banks.................................................... 1.789 1.971 1.810 155 157 161 168 163 174 176 By major type of credit 39 Automobile.................................................................... 69.245 79.186 83.037 7.343 6.872 6.932 7.300 7.354 7.018 6.777 40 Commercial banks.................................................... 42.036 46,697 46.999 4.139 3.690 3.762 3.851 3.906 3.888 3.899 41 Indirect paper........................................................ 22.871 25.135 25.750 2.305 2.006 2.038 2.069 2.173 2.097 2.185 42 Direct loans............................................................ 19.165 21.562 21.249 1.834 1.684 1.724 1.782 1.733 1.791 1.714 43 Credit unions.............................................................. 15.438 16.353 16.478 1.439 1.301 1.364 1.386 1.402 1.454 1.447 44 Finance companies.................................................... 11.771 16.136 19.560 1.765 1.881 1.806 2.063 2.046 1.676 1.431 45 Revolving........................................................................ 96.090 111.546 126.655 10.851 10.688 10.998 10.926 11.426 11.484 11.514 46 Commercial banks.................................................... 45.366 55.527 61.708 5.283 5.034 5.343 5.126 5.436 5.349 5.408 47 Retailers...................................................................... 34.964 38.523 43.533 3.657 3.702 3.677 3.776 3.915 3.949 3.975 48 Gasoline companies.................................................. 15.760 17.496 21.414 1.911 1.952 1.978 2.024 2.075 2.186 2.131 49 Mobile home.................................................................. 5.126 4.868 4.610 372 400 413 407 456 553 406 50 Commercial banks.................................................... 3.278 3.440 3.213 278 276 288 256 287 294 266 51 Finance companies.................................................... 812 559 543 47 49 41 66 70 63 42 52 Savings and loans...................................................... 885 708 716 39 63 72 73 87 172 85 53 Credit unions.............................................................. 151 161 138 8 12 12 12 12 24 13 54 Other................................................................................ 84.128 90.796 90.175 8.097 7.192 7.187 7.557 7.474 7.659 7.850 55 Commercial banks.................................................... 28.112 30.908 30.097 2.613 2.S52 2.367 2.521 2.563 2.533 2.758 56 Finance companies.................................................... 28.492 30.803 32.260 3.057 2.328 2.478 2.662 2.547 2.633 2,492 57 Credit unions.............................................................. 15.793 16.227 15.453 1.362 1.264 1.281 1.308 1.309 1.388 1,449 58 Retailers...................................................................... 7.110 7.021 6.135 500 496 504 488 482 483 496 59 Savings and loans...................................................... 2.832 3.866 4.420 410 395 396 410 410 448 479 60 Mutual savings banks................................................ 1.789 1.971 1.810 155 157 161 168 163 174 176 1. Includes auto dealers and excludes 30-day charge credit held by travel and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Financial Statistics □ June 1981 1.58 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1978 1979 1980 Transaction category, sector 1975 1976 1977 1978 1979 1980 HI H2 HI H2 HI' H2r Nonfinancial sectors 1 Total funds raised.......................................................... 210.8 271.9 338.5 400.4 394.9 365.4 384.8 416.0 380.5 408.2 325.8 404.9 2 Excluding equities.......................................................... 200.7 261.0 335.3 398.3 390.6 353.9 387.4 409.2 377.7 402.3 318.0 389.7 By sector and instrument 3 U.S. government............................................................ 85.4 69.0 56.8 53.7 37.4 79.2 61.4 46.0 28.6 46.1 64.7 93.7 4 Treasury securities.................................................... 85.8 69.1 57.6 55.1 38.8 79.8 62.3 47.9 30.9 46.6 65.3 94.3 5 Agency issues and mortgages.................................. -.4 -.1 -.9 -1.4 -1.4 -.6 -.9 -1.9 -2.3 -.5 -.6 -.6 6 All other nonfinancial sectors...................................... 125.4 202.8 281.7 346.7 357.6 286.2 323.4 370.0 351.9 362.1 261.1 311.2 7 Corporate equities.................................................... 10.1 10.8 3.1 2.1 4.3 11.5 -2.6 6.8 2.8 5.9 7.8 15.3 8 Debt instruments........................................................ 115.3 192.0 278.6 344.6 353.2 274.7 326.0 363.2 349.1 356.2 253.4 295.9 9 Private domestic nonfinancial sectors.................... 112.1 182.0 267.8 314.4 336.4 256.7 302.8 326.1 338.6 333.0 231.9 281.5 10 Corporate equities................................................ 9.9 10.5 2.7 2.6 3.5 9.5 -1.8 7.0 2.8 4.1 6.0 13.0 11 Debt instruments.................................................... 102.2 171.5 265.1 311.8 333.0 247.2 304.6 319.1 335.8 328.9 225.9 268.5 12 Debt capital instruments.................................. 98.4 123.5 175.6 196.6 199.9 179.7 188.3 205.0 198.8 201.1 171.9 187.4 13 State and local obligations............................ 16.1 15.7 23.7 28.3 18.9 25.0 27.8 28.7 16.0 21.8 18.5 31.6 14 Corporate bonds............................................ 27.2 22.8 21.0 20.1 21.2 27.9 20.6 19.6 22.4 19.9 33.6 22.3 15 Mortgages........................................................ 55.1 85.0 130.9 148.2 159.9 126.7 139.8 156.7 160.4 159.4 16 Home Mortgages........................................ 39.5 63.6 96.3 104.6 109.1 81.5 100.1 109.1 109.8 108.5 '' 70!7 ’*92.8 17 Multifamily residential.............................. • 1.8 7.4 10.2 8.9 8.7 9.3 11.2 8.1 9.7 8.1 9.0 18 Commercial................................................ 11.0 13.4 18.4 23.3 25.7 21.6 21.2 25.4 26.0 25.4 25.5 19.3 19 Farm............................................................ 4.6 6.1 8.8 10.2 16.2 14.0 9.3 11.1 16.6 15.9 15.5 12.4 20 Other debt instruments.................................... 3.8 48.0 89.5 115.2 133.0 67.2 116.3 114.1 137.0 127.8 54.0 81.1 21 Consumer credit............................................ 9.7 25.6 40.6 50.6 44.2 3.1 50.1 51.0 48.3 39.0 -4.3 8.9 22 Bank loans n.e.c............................................. -12.3 4.0 27.0 37.3 50.6 37.9 43.1 31.4 48.2 52.9 9.7 65.0 23 Open market paper...................................... -2.6 4.0 2.9 5.2 10.9 5.8 5.3 5.1 12.0 9.7 29.7 -18.1 24 Other................................................................ 9.0 14.4 19.0 22.2 27.3 20.4 17.8 26.5 28.4 26.2 18.9 25.2 25 By borrowing sector.............................................. 112.1 182.0 267.8 314.4 336.4 254.2 302.8 326.1 338.6 333.0 231.9 281.5 26 State and local governments............................ 13.7 15.2 20.4 23.6 15.5 20.7 21.0 26.1 13.0 18.0 16.6 30.4 27 Households.......................................................... 49.7 90.5 139.9 162.6 164.9 100.8 156.1 169.1 167.6 161.2 88.7 113.7 48.7 76.3 107.5 128.3 156.0 132.0 125.6 130.9 157.9 153.7 29 Farm.................................................................... 8.8 10.9 14.7 18.1 25.8 19.0 15.3 20.8 23.5 28.1 20.9 14.7 30 Nonfarm noncorporate...................................... 2.0 4.7 12.9 15.4 15.9 12.5 16.4 14.4 15.5 15.9 10.3 15.5 31 Corporate............................................................ 37.9 60.7 79.9 94.8 114.3 101.1 93.9 95.7 118.9 109.7 95.4 107.2 28.0 50.1 77.1 92.2 110.9 91.8 95.7 88.7 116.1 105.6 9.9 10.5 2.7 2.6 3.5 9.5 -1.8 7.0 2.8 4.1 34 Foreign....................................................................... 13.3 20.8 13.9 32.3 21.2 29.9 20.6 43.9 13.3 29.1 29.3 29.7 35 Corporate equities................................................ .2 .3 .4 -.5 .9 2.2 -.8 -.2 * 1.7 1.8 2.3 36 Debt instruments................................................... 13.2 20.5 13.5 32.8 20.3 27.7 21.4 44.1 13.3 27.3 27.5 27.4 37 Bonds.................................................................. 6.2 8.6 5.1 4.0 3.9 .8 5.0 3.0 3.0 4.7 2.0 -.4 38 Bank loans n.e.c................................................. 3.9 6.8 3.1 18.3 2.3 11.8 9.3 27.3 1.0 3.5 4.4 18.7 39 Open market paper.......................................... .3 1.9 2.4 6.6 11.2 10.1 3.6 9.6 6.1 16.3 15.7 4.5 40 U.S. government loans................................... 2.8 3.3 3.0 3.9 3.0 5.0 3.6 4.2 3.1 2.8 5.4 4.6 Credit Market Funds Raised by Financial Sectors 1 Total funds raised.......................................................... 12.7 24.1 54.0 81.4 88.5 70.8 80.7 82.1 86.3 90.7 53.7 84.2 By instrument 2 U.S. government related............................................. 13.5 18.6 26.3 41.4 52.4 47.5 38.5 44.3 45.8 59.0 45.8 48.9 3 Sponsored credit agency securities.......................... 2.3 3.3 7.0 23.1 24.3 24.3 21.9 24.3 21.5 27.0 25.1 23.7 4 5 M Lo o a r n tg s a f g r e o m po U ol . S s . e c g u o r v i e ti r e n s m ... e .. n .. t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. . 3 9 1 - 5 .4 .7 - 2 1 0 . . 2 5 18.3 - 28.1 - 23.2 - 16.6 - 20.1 - 24.2- 32.0 - 20.7- 25.2 - 6 Private financial sectors................................................ -.8 5.5 27.7 40.0 36.1 23.3 42.2 37.8 40.5 31.7 7.9 35.3 7 Corporate equities.................................................... .6 1.0 .9 1.7 2.3 3.4 2.2 1.1 2.0 2.5 2.6 4.3 8 Debt instruments........................................................ -1.4 4.4 26.9 38.3 33.8 19.8 40.0 36.7 38.4 29.2 5.3 31.0 9 Corporate bonds.................................................... 2.9 5.8 10.1 7.5 7.8 7.2 8.5 6.4 8.7 7.0 10.5 3.5 10 Mortgages................................................................ 2.3 2.1 3.1 .9 -1.2 -.9 2.1 -.3 -.5 -1.9 -6.8 4.8 11 Bank loans n.e.c..................................................... -3.7 -3.7 -.3 2.8 -.4 1.0 2.5 3.1 -.7 -.2 1.0 -1.9 12 Open market paper and repurchase agreements...................................................... 1.1 2.2 9.6 14.6 18.4 5.4 13.5 15.7 23.0 13.8 -3.6 14.5 13 Loans from Federal Home Loan Banks............ -4.0 -2.0 4.3 12.5 9.2 7.1 13.2 11.8 7.8 10.5 4.1 10.2 14 Total, by sector.............................................................. 12.7 24.1 54.0 81.4 88.5 69.0 80.7 82.1 86.3 90.7 15 Sponsored credit agencies............................................ 3.2 2.9 5.8 23.1 24.3 24.4 21.9 24.3 21.5 27.0 25.1 23.7 16 Mortgage pools.............................................................. 10.3 15.7 20.5 18.3 28.1 23.2 16.6 20.1 24.2 32.0 20.7 25.2 17 Private financial sectors................................................ -.8 5.5 27.7 40.0 36.1 23.3 42.2 37.8 40.5 31.7 7.9 35.3 18 Commercial banks.................................................... 1.2 2.3 1.1 1.3 1.6 .6 1.5 1.1 1.3 1.8 .8 .3 19 Bank affiliates............................................................ .3 -.8 1.3 6.7 4.5 5.6 5.8 7.6 6.2 2.9 4.5 6.6 20 Savings and loan associations.................................. -2.3 .1 9.9 14.3 11.4 6.4 16.4 12.2 9.9 12.9 -3.1 17.0 21 Other insurance companies...................................... 1.0 .9 .9 1.1 1.0 .8 1.0 1.1 1.0 .9 .8 .7 22 Finance companies.................................................... .5 6.4 17.6 18.6 18.9 8.8 18.9 18.2 23.5 14.3 5.5 10.0 23 REITs......................................................................... -1.4 -2.4 -2.2 -1.0 -.4 -.9 -1.0 -1.0 -.6 -.1 -1.4 -2.0 24 Open-end investment companies............................ -.1 -1.0 -.9 -1.0 -1.0 2.0 -.5 -1.5 -1.0 -.9 .9 2.6 Total credit market funds raised, all sectors, by type 1 Total funds raised, by instrument.............................. 223.6 295.9 392.5 481.8 483.4 434.1 465.5 498.1 466.7 498.9 379.5 489.2 2 Investment company shares........................................ -.1 -1.0 -.9 -1.0 -1.0 2.0 -.5 -1.5 -1.0 -.9 .9 2.6 3 Other corporate equities.............................................. 10.8 12.9 4.9 4.7 7.6 15.0 .1 9.4 5.8 9.3 9.5 17.0 4 Debt instruments............................................................ 212.9 284.1 388.5 478.1 476.8 417.1 465.9 490.2 461.9 490.5 369.1 469.6 5 U.S. government securities...................................... 98.2 88.1 84.3 95.2 89.9 126.8 100.0 90.4 74.5 105.2 110.6 142.8 6 State and local obligations........................................ 16.1 15.7 23.7 28.3 18.9 22.2 27.8 28.7 16.0 21.8 18.5 31.6 7 Corporate and foreign bonds.................................. 36.4 37.2 36.1 31.6 32.9 35.6 34.2 29.1 34.1 31.5 46.1 25.4 8 Mortgages.................................................................... 57.2 87.0 133.9 149.1 158.6 124.8 141.9 156.3 159.8 157.4 113.0 138.2 Digitized for FRA9S ECRo nsumer credit........................................................ 9.7 25.6 40.6 50.6 44.2 3.1 50.1 51.0 48.3 39.0 -4.3 8.9 10 Bank loans n.e.c......................................................... -12.2 7.0 29.8 58.4 52.5 50.7 54.9 61.8 48.6 56.2 15.1 81.7 http://fraser.stlou11i sfeOdp.eonr gm/a rket paper and RPs.................................. -1.2 8.1 15.0 26.4 40.5 21.4 22.4 30.4 41.1 39.8 41.9 .9 Federal Reserve12 BaOntkh eor fl oSatn. sL...o...u...i.s...................................................... 8.7 15.3 25.2 38.6 39.5 32.6 34.6 42.5 39.4 39.5 28.4 40.0

Flow of Funds A43 1.59 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates 1978 1979 1980 Transaction category, or sector 1975 1976 1977 1978 1979 1980 HI H2 HI H2 HI' H2' 1 Total funds advanced in credit markets to nonfinancial sectors .............................................................................. 200.7 261.0 335.3 398.3 390.6 349.8 387.4 409.2 377.7 402.3 318.0 389.7 By public agencies and foreign 2 Total net advances................................................................ 44.6 54.3 85.1 109.7 80.1 95.8 102.8 116.6 47.6 112.5 101.5 90.4 3 U.S. government securities.............................................. 22.5 26.8 40.2 43.9 2.0 22.3 43.7 44.0 -22.1 26.2 24.7 21.3 4 Residential mortgages...................................................... 16.2 12.8 20.4 26.5 36.1 32.0 22.2 30.7 32.6 39.6 33.4 30.7 5 FHLB advances to savings and loans............................ -4.0 -2.0 4.3 12.5 9.2 7.1 13.2 11.8 7.8 10.5 4.1 10.2 6 Other loans and securities................................................ 9.8 16.6 20.2 26.9 32.8 34.5 23.7 30.1 29.2 36.3 39.3 28.3 Total advanced, by sector 7 U.S. government.................................................................... 15.1 8.9 11.8 20.4 22.5 26.0 19.4 21.4 23.8 21.3 29.5 21.6 8 Sponsored credit agencies.................................................... 14.8 20.3 26.8 44.6 57.5 48.6 39.4 49.8 49.9 65.2 43.6 52.9 9 Monetary authorities............................................................ 8.5 9.8 7.1 7.0 7.7 4.5 13.4 .5 .9 14.5 14.6 -5.6 10 Foreign.................................................................................... 6.1 15.2 39.4 37.7 -7.7 16.7 30.6 44.9 -27.0 11.7 13.8 21.5 11 Agency borrowing not included in line 1.......................... 13.5 18.6 26.3 41.4 52.4 47.5 38.5 44.3 45.8 59.0 45.8 48.9 Private domestic funds advanced 12 Total net advances................................................................ 169.7 225.4 276.5 330.0 362.9 301.5 323.2 336.9 375.9 348.8 262.4 348.2 13 U.S. government securities.............................................. 75.7 61.3 44.1 51.3 87.9 104.6 56.3 46.4 96.6 79.1 85.9 121.5 14 State and local obligations................................................ 16.1 15.7 23.7 28.3 18.9 22.2 27.8 28.7 16.0 21.8 18.5 31.6 15 Corporate and foreign bonds.......................................... 32.8 30.5 22.5 22.5 25.6 25.5 24.1 20.9 26.9 24.3 32.6 19.5 16 Residential mortgages...................................................... 23.2 52.6 83.3 88.2 81.8 58.1 87.1 89.5 85.1 78.5 45.2 71.0 17 Other mortgages and loans.............................................. 17.9 63.3 107.3 152.2 157.9 98.2 141.1 163.3 159.1 155.6 84.2 114.7 18 Less: Federal Home Loan Bank advances.................... -4.0 -2.0 4.3 12.5 9.2 7.1 13.2 11.8 7.8 10.5 4.1 10.2 Private financial intermediation 19 Credit market funds advanced by private financial institutions...................................................................... 122.5 190.1 257.0 296.9 292.5 265.6 301.7 292.0 307.5 277.4 230.7 293.0 20 Commercial banking.......................................................... 29.4 59.6 87.6 128.7 121.1 103.5 132.5 125.0 124.6 117.6 57.0 142.4 21 Savings institutions............................................................ 53.5 70.8 82.0 75.9 56.3 57.6 75.8 75.9 57.7 54.9 32.1 81.1 22 Insurance and pension funds............................................ 40.6 49.9 67.9 73.5 70.4 76.4 76.9 70.2 75.4 65.5 86.4 68.0 23 Other finance...................................................................... -1.0 9.8 19.6 18.7 44.7 28.1 16.6 20.9 49.8 39.6 55.2 1.5 24 Sources of funds.................................................................... 122.5 190.1 257.0 296.9 292.5 265.6 301.7 292.0 307.5 277.4 230.7 293.0 25 Private domestic deposits................................................ 92.0 124.6 141.2 142.5 136.7 163.9 138.3 146.7 121.7 151.6 148.3 183.0 26 Credit market borrowing.................................................. -1.4 4.4 26.9 38.3 33.8 19.8 40.0 36.7 38.4 29.2 5.3 31.0 27 Other sources...................................................................... 32.0 61.0 89.0 116.0 122.0 81.9 123.5 108.6 147.3 96.6 77.2 79.0 28 Foreign funds.................................................................. -8.7 -4.6 1.2 6.3 26.3 -20.0 5.7 6.9 49.4 3.2 -18.1 -28.1 29 Treasury balances.......................................................... -1.7 -.1 4.3 6.8 .4 -2.0 1.9 11.6 5.1 -4.3 -2.5 -2.6 30 Insurance and pension reserves.................................. 29.7 34.5 49.4 62.7 49.0 58.5 66.2 59.2 53.9 44.0 62.4 55.6 31 Other, net........................................................................ 12.7 31.2 34.1 40.3 46.3 45.4 49.6 31.0 38.9 53.7 35.4 54.1 Private domestic nonfinancial investors 32 Direct lending in credit markets.......................................... 45.8 39.7 46.3 71.5 104.2 55.7 61.4 81.6 106.8 100.5 36.9 86.1 33 U.S. government securities.............................................. 24.1 16.1 23.0 33.2 57.8 30.7 32.1 34.4 64.1 51.5 15.5 48.8 34 State and local obligations................................................ 8.4 3.8 2.6 4.5 -2.5 -1.8 7.0 2.0 -2.3 -2.7 -1.6 7.9 35 Corporate and foreign bonds.......................................... 8.4 5.8 -3.3 -1.4 11.1 5.4 -3.7 1.0 7.8 14.2 5.2 5.3 36 Commercial paper.............................................................. -1.3 1.9 9.5 16.3 10.7 -2.4 8.2 24.4 12.5 9.0 -5.7 -2.9 37 Other.................................................................................... 6.2 12.0 14.5 18.8 27.1 23.9 17.8 19.8 24.7 28.5 23.6 27.0 38 Deposits and currency.......................................................... 98.1 131.9 149.5 151.8 144.7 173.5 148.7 154.8 131.1 158.1 157.3 194.6 39 Security RPs........................................................................ .2 2.3 2.2 7.5 6.6 4.7 9.8 5.1 18.5 -5.3 5.3 7.4 40 Money market fund shares.............................................. 1.3 * .2 6.9 34.4 29.2 6.1 7.7 30.2 38.6 61.9 -3.4 41 Time and savings accounts.............................................. 84.0 113.5 121.0 115.2 84.7 131.8 110.7 119.8 71.4 97.9 92.3 178.9 42 Large at commercial banks.......................................... -15.8 -13.2 23.0 45.9 .4 12.7 33.9 57.9 -25.3 26.0 -12.0 72.6 43 Other at commercial banks.......................................... 40.3 57.6 29.0 8.2 39.3 62.9 18.4 -1.9 41.3 37.3 60.8 37.7 44 At savings institutions.................................................. 59.4 69.1 69.0 61.1 45.1 56.2 58.5 63.8 55.4 34.7 43.5 68.7 45 Money.................................................................................. 12.6 16.1 26.1 22.2 18.9 7.8 22.1 22.3 10.9 26.8 -2.2 11.8 46 Demand deposits............................................................ 6.4 8.8 17.8 12.9 11.0 -1.8 11.6 14.2 1.6 20.3 -11.3 .2 47 Currency.......................................................................... 6.2 7.3 8.3 9.3 7.9 9.6 10.5 8.1 9.3 6.5 9.0 11.6 48 Total of credit market instruments, deposits and currency .......................................................................... 143.9 171.6 195.8 223.3 248.9 229.1 210.1 236.4 237.9 258.7 194.2 280.8 49 Public support rate (in percent)...................................... 22.2 20.8 25.4 27.5 20.5 27.4 26.5 28.5 12.6 28.0 31.9 23.2 50 Private financial intermediation (in percent)................ 72.2 84.3 93.0 90.0 80.6 88.1 93.4 86.7 81.8 79.5 87.9 84.2 51 Total foreign funds............................................................ -2.6 10.6 40.5 44.0 18.6 -3.3 36.3 51.8 22.4 14.9 -4.3 — 6.6 Memo: Corporate equities not included above 52 Total net issues...................................................................... 10.7 11.9 4.0 3.7 6.6 17.0 -.4 7.9 4.8 8.4 10.4 19.6 53 Mutual fund shares............................................................ -.1 -1.0 -.9 -1.0 -1.0 -2.0 -.5 -1.5 -1.0 -.9 .9 2.6 54 Other equities.................................................................... 10.8 12.9 4.9 4.7 7.6 15.0 .1 9.4 5.8 9.3 9.5 17.0 55 Acquisitions by financial institutions.................................. 9.6 12.3 7.4 7.6 15.7 18.7 .4 14.7 12.5 18.9 10.5 25.1 56 Other net purchases.............................................................. 1.1 -.4 -3.4 -3.8 -9.1 -1.7 -.8 -6.8 -7.7 -10.5 -.1 -5.5 Notes by line number. 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A42. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes 11. Credit market funds raised by federally sponsored credit agencies, and net mortgages. issues of federally related mortgage pool securities. Included below in lines 3, 47. Mainly an offset to line 9. 13, and 33. 48. Lines 32 plus 38, or line 12 less line 27 plus 45. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum 49. Line 2/line 1. of lines 27, 32, 39, 40, 41, and 46. 50. Line 19/line 12. 17. Includes farm and commercial mortgages. 51. Sum of lines 10 and 28. 25. Sum of lines 39, 40, 41, and 46. 52. 54. Includes issues by financial institutions. 26. Excludes equity issues and investment company shares. Includes line 18. Note. Full statements for sectors and transaction types quarterly, and annually 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, for flows and for amounts outstanding, may be obtained from Flow of Funds and liabilities of foreign banking agencies to foreign affiliates. Section, Division of Research and Statistics, Board of Governors of the Federal 29. Demand deposits at commercial banks. Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics □ June 1981 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1980 1981 Measure 1978 1979 1980 Sept. Oct. Nov. Dec. Jan. Feb.' Mar.' Apr May 1 Industrial production1............................ 151.5 152.2 152.8 Market groupings 2 Products, total.......................................... 144.8 150.0 146.8 145.3 147.2 148.7 149.9 150.3' 149.8 150.8 151.6 152.1 3 Final, total............................................ 135.9 147.2 145.4 143.9 145.8 147.5 148.3 148.3' 147.9 149.3 150.4 151.1 4 Consumer goods.............................. 149.1 150.8 145.5 144.3 146.6 148.0 147.7 147.2 146.9 148.2 149.3 150.0 5 Equipment........................................ 132.8 142.2 145.1 143.2 144.8 146.7 149.1 149.8' 149.1 150.8 151.9 152.7 6 Intermediate.......................................... 154.1 160.5 151.9 150.6 152.4 153.5 156.1 157.7' 156.9 156.5 156.0 155.6 7 Materials.................................................... 148.3 156.4 147.7 142.4 146.4 150.5 152.6 153.8' 154.2 154.4 153.4 153.8 Industry groupings 8 Manufacturing.......................................... 153.6 143.4 149.1 151.0 151.7 152.3 152.9 Capacity utilization (percent)1-2 9 Manufacturing...................................... 84.4 85.7 79.0 76.7 78.2 79.4 79.9 80.0 79.8 79.0 80.0 80.1 10 Industrial materials industries............ 85.6 87.4 79.8 76.4 78.4 80.4 81.3 81.7' 81.7 81.7 80.9 81.0 11 Construction contracts (1972 = 100)3.. 174.1 185.6 161.8 163.0 167.0 210.0 193.0 185.0 177.0 183.0 172.0 n.a. 12 Nonagricultural employment, total4 ... 131. 136.6 137.8 137.4 137.9 138.2 138.5 139.0 139.3 139.4 139.0 139.0 13 Goods-producing, total...................... 109. 113.7 110.9 109.3 110.0 110.7 111.1 111.7 111.5 111.6 110.8 110.2 14 Manufacturing, total........................ 105. 108.3 104.7 103.1 103.7 104.3 104.4 104.6 104.8 104.9 105.1 105.0 15 Manufacturing, production-worker 103. 105.4 99.8 97.7 100.7 99.1 99.2 99.4 99.5 99.6 99.8 99.8 16 Service-producing............................... 143. 149.2 152.5 152.7 153.1 153.3 153.5 154.0 154.5 154.6 154.5 154.8 17 Personal income, total............................ 273. 308.5 342.9 350.1 354.7 358.3 361.4 365.2' 367.9 371.1 373.2 n.a. 18 Wages and salary disbursements 258. 289.5 314.7 317.8 323.6 328.0 330.5 335.6' 337.9 340.0 340.7 n.a. 19 Manufacturing.................................. 223. 248.6 261.5 262.9 267.6 273.1 275.8 280.1' 281.3 282.2 285.2 n.a. 20 Disposable personal income5................ 268. 301.5 334.5 348.4 357.6 21 Retail sales6.............................................. 253.8 281.6 300.0 306.0 308.0 313.8 315.8 326.6 331.7 327.6 328.2 Prices7 22 Consumer.............................................. 195.4 217.4 246.8 251.7 253.9 256.2 258.4 260.5 263.2 265.1 266.8 n.a. 23 Producer finished goods...................... 194.6 216.1 246.9 251.4 255.4 256.2' 257.2' 260.4' 262.4 265.3 267.7 268.9 1. The industrial production and capacity utilization series have been revised 6. Based on Bureau of Census data published in Survey of Current Business. back to January 1979. 7. Data without seasonal adjustment, as published in Monthly Labor Review. 2. Ratios of indexes of production to indexes of capacity. Based on data from Seasonally adjusted data for changes in the price indexes may be obtained from Federal Reserve, McGraw-Hill Economics Department, and Department of Com­ the Bureau of Labor Statistics, U.S. Department of Labor. merce. 3. Index of dollar value of total construction contracts, including residential, Note. Basic data (not index numbers) for series mentioned in notes 4, 5, and nonresidential, and heavy engineering, from McGraw-Hill Information Systems 6, and indexes for series mentioned in notes 3 and 7 may also be found in the Company, F. W. Dodge Division. Survey of Current Business. 4. Based on data in Employment and Earnings (U.S. Department of Labor). Figures for industrial production for the last two months are preliminary and Series covers employees only, excluding personnel in the Armed Forces. estimated, respectively. 5. Based on data in Survey of Current Business (U.S. Department of Commerce). Series for disposable income is quarterly. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1980 1981 1980 1981 1980 1981 Series Q2 Q3 Q4 Ql' Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql' Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing........................................................ 143.9 141.0 148.7 151.3 184.8 186.3 187.8 189.3 77.9 75.7 79.2 79.9 2 Primary processing................................................ 145.0 139.6 153.1 157.3 190.0 191.5 193.0 194.3 76.3 72.9 79.4 81.0 3 Advanced processing............................................ 143.3 141.8 146.4 148.2 182.0 183.5 185.0 186.6 78.7 77.3 79.1 79.4 4 Materials.................................................................. 145.1 139.2 149.8 154.1 184.3 185.8 187.2 188.7 78.7 74.9 80.0 81.7 5 Durable goods........................................................ 140.6 131.5 145.1 151.1 188.6 190.0 191.5 192.8 74.6 69.2 75.8 78.4 6 Metal materials.................................................. 100.6 86.6 109.9 117.2 140.8 140.9 141.0 141.1 71.4 61.5 78.0 83.1 7 Nondurable goods.................................................. 166.0 161.9 175.5 179.1 202.0 204.3 206.5 208.5 82.2 79.2 85.0 85.9 8 Textile, paper, and chemical............................ 171.9 165.6 182.7 186.8 211.0 213.7 216.2 218.5 81.5 77.5 84.5 85.5 9 Textile.............................................................. 116.4 113.4 113.2 111.0 139.2 139.6 140.0 140.3 83.7 81.2 80.9 79.1 10 Paper................................................................ 142.1 142.9 148.9 151.2 156.0 157.4 158.8 160.0 91.0 90.7 93.8 94.5 11 Chemical.......................................................... 208.3 197.9 226.9 234.6 264.6 268.7 272.9 276.4 78.7 73.6 83.2 84.9 12 Energy materials.................................................... 130.0 129.6 129.5 130.8 151.8 152.6 153.1 154.1 85.6 85.0 84.6 84.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A45 2.11 Continued Previous cycle1 Latest cycle2 1980 1980 1981 Series High Low High Low May Oct. Nov. Dec. Jan. Feb. r Mar.r Apr.r May Capacity utilization rate (percent) 13Manufacturing...................................... 88.0 69.0 87.2 74.9 77.6 78.2 79.4 79.9 80.0 79.8 79.9 80.0 80.1 14 Primary processing.......................... 93.8 68.2 90.1 70.9 75.8 77.6 79.6 80.8 81.2 81.2 80.5 80.6 80.5 15 Advanced processing........................ 85.5 69.4 86.2 77.1 78.6 78.5 79.2 79.6 79.5 79.1 79.6 79.7 79.9 16Materials................................................ 92.6 69.4 88.8 73.7 78.3 78.4 80.4 81.3 81.7 81.7 81.7 80.9 81.0 17 Durable goods.................................. 91.5 63.6 88.4 68.0 74.1 73.5 76.5 77.3 78.0 78.2 78.9 78.7 78.8 18 Metal materials............................ 98.3 68.6 96.0 58.4 70.0 71.5 81.4 81.0 82.0 83.2 84.1 81.1 81.0 19 Nondurable goods............................ 94.5 67.2 90.9 76.8 81.8 84.4 84.3 86.3 86.7 86.1 84.9 85.4 85.7 20 Textile, paper, and chemical----- 95.1 65.3 91.4 74.5 81.3 83.8 83.7 85.9 86.2 85.8 84.5 85.1 85.4 21 Textile........................................ 92.6 57.9 90.1 79.5 84.5 82.1 80.7 79.8 79.8 79.2 78.2 79.1 79.7 22 Paper .......................................... 99.4 72.4 97.6 88.1 90.8 93.0 94.1 94.2 93.7 94.8 94.9 93.8 93.5 23 Chemical.................................... 95.5 64.2 91.2 69.6 78.3 82.1 82.0 85.4 85.9 85.2 83.6 84.4 84.9 24 Energy materials.............................. 94.6 84.8 88.3 83.1 85.3 83.1 85.5 85.0 84.6 85.2 84.8 80.3 79.7 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July 1980 through October 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1980 1981 Category 1978 1979 1980 Nov. Dec. Jan. Feb. Mar.r Apr. May Household Survey Data 1 Noninstitutional population1........................ 161,058 163,620 166,246 167,201 167,396 167,585 167,747 167,902 168,071 168,272 2 Labor force (including Armed Forces)1 ... 102,537 104,996 106,821 107,404 107,191 107,668 107,802 108,305 108,851 109,533 3 Civilian labor force.................................... 100,420 102,908 104,719 105,285 105,067 105,543 105,681 106,177 106,722 107,406 Employment 4 Nonagricultural industries2.................. 91,031 93,648 93,960 93,999 93,888 94,294 94,646 95,136 95,513 95,882 5 Agriculture.............................................. 3,342 3,297 3,310 3,340 3,394 3,403 3,281 3,276 3,463 3,353 Unemployment 6 Number.......................................................... 6,047 5,963 7,448 7,946 7,785 7,847 7,754 7,764 7,746 8,171 7 Rate (percent of civilian labor force) . 6.0 5.8 7.1 7.5 7.4 7.4 7.3 7.3 7.3 7.6 8 Not in labor force............................................... 58,521 58,623 59,425 59,797 60,205 59,917 59,946 59,598 59,219 58,739 Establishment Survey Data 9 Nonagricultural payroll employment3........ 86,697 89,886 90,652 90,961 91,125 91,481 91,653r 91,705 91,490 91,474 10 Manufacturing................................................ 20,505 21,062 20,365 20,282 20,312 20,345 20,375'' 20,396 20,440 20,412 11 Mining..................................................................... 851 960 1,025 1,054 1,072 1,086 1,095 1,100 949 951 12 Contract construction........................................ 4,229 4,483 4,468 4,475 4,508 4,610 4,518 4,514 4,441 4,315 13 Transportation and public utilities................ 4,923 5,141 5,155 5,132 5,137 5,142 5,156 5,164 5,162 5,163 14 Trade....................................................................... 19,542 20,269 20,571 20,660 20,638 20,762 20,885 20,917 20,808 20,888 15 Finance ............................................................ 4,724 4,974 5,162 5,225 5,245 5,268 5,277 5,284 5,297 5,307 16 Service..................................................................... 16,252 17,078 17,736 17,969 18,068 18,133 18,181 18,212 18,275 18,366 17 Government.................................................... 15,672 15,920 16,171 16,164 16,145 16,135 13,372 16,118 16,118 16,072 1. Persons 16 years of age and over. Monthly figures, which are based on sample 3. Data include all full- and part-time employees who worked during, or data, relate to the calendar week that contains the 12th day; annual data are received pay for, the pay period that includes the 12th day of the month, and averages of monthly figures. By definition, seasonality does not exist in population exclude proprietors, self-employed persons, domestic servants, unpaid family work­ figures. Based on data from Employment and Earnings (U.S. Department of La­ ers, and members of the Armed Forces. Data are adjusted to the March 1979 bor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics □ June 1981 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value i Monthly data are seasonally adjusted. 1967 1980 1981 Grouping pro­ Aver­ p ti o o r n ­ age May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Apr.P May Index (1967 = 100) Major Market 1 Total index...................................... 100.00 147.1 144.0 141.5 140.4 141.8 144.1 146.9 149.4 151.0 151.7 151.5 152.2 152.3 152.8 2 Products............................................ 60.71 146.8 143.7 142.5 142.8 143.8 145.3 147.2 148.7 149.9 150.3 149.8 150.8 151.6 152.1 3 Final products.............................. 47.82 145.4 143.1 142.3 142.4 142.8 143.9 145.8 147.5 148.3 148.3 147.9 149.3 150.4 151.1 4 Consumer goods.................... 27.68 145.5 142.4 142.1 142.0 142.7 144.3 146.6 148.0 147.7 147.2 146.9 148.2 149.3 150.0 5 Equipment.............................. 20.14 145.1 144.0 142.6 142.9 142.9 143.2 144.8 146.7 149.1 149.8 149.1 150.8 151.9 152.7 6 Intermediate products................ 12.89 151.9 146.2 143.5 144.5 147.6 150.6 152.4 153.5 156.1 157.7 156.9 156.5 156.0 155.6 7 Materials.......................................... 39.29 147.7 144.3 140.0 136.5 138.6 142.4 146.4 150.5 152.6 153.8 154.2 154.4 153.4 153.8 Consumer goods 8 Durable consumer goods.............. 7.89 136.5 128.8 128.2 128.3 128.6 132.7 139.6 142.9 141.3 138.8 138.9 143.3 144.0 146.9 9 Automotive products................ 2.83 132.7 118.5 121.6 129.2 121.5 130.6 141.8 145.3 139.1 127.1 129.0 139.4 142.5 149.6 10 Autos and utility vehicles.... 2.03 109.9 92.6 97.1 106.4 94.1 105.5 120.2 124.3 115.9 99.8 103.7 116.7 120.1 129.1 11 Autos.................................... 1.90 103.4 88.4 95.7 105.2 91.3 98.0 110.7 114.3 105.3 90.0 96.0 108.3 113.2 120.8 12 Auto parts and allied goods.. 80 190.4 184.0 183.7 186.9 191.1 194.2 196.8 198.6 198.0 196.6 193.4 196.9 199.4 201.6 13 Home goods................................ 5.06 138.7 134.6 132.0 127.7 132.6 134.0 138.3 141.5 142.6 145.4 144.4 145.5 144.9 145.4 14 Appliances, A/C, and TV ... 1.40 117.1 102.8 105.6 102.3 114.2 116.3 123.5 128.4 126.8 131.2 124.2 127.7 121.5 119.4 15 Appliances and TV............ 1.33 119.5 106.0 108.5 103.4 114.2 117.6 125.6 131.0 129.2 132.7 126.7 129.7 122.9 16 Carpeting and furniture........ 1.07 155.0 154.2 146.7 136.1 141.1 146.1 150.2 154.9 156.3 156.8 159.9 159.3 163.1 17 Miscellaneous home goods... 2.59 143.6 143.8 140.2 138.1 139.1 138.6 141.5 143.0 145.4 148.4 149.0 149.4 150.0 151.0 18 Nondurable consumer goods........ 19.79 149.1 147.7 147.6 147.4 148.3 148.9 149.4 150.1 150.2 150.5 150.1 150.2 151.3 151.2 19 Clothing........................................ 4.29 126.8 127.9 126.7 122.5 123.6 122.1 125.1 127.3 123.7 122.3 119.9 120.0 20 Consumer staples........................ 15.50 155.3 153.2 153.4 154.3 155.1 156.3 156.1 156.4 157.5 158.3 158.5 158.5 159.6 159.3 21 Consumer foods and tobacco 8.33 147.0 146.1 146.2 146.4 146.0 147.0 147.7 148.0 148.9 148.7 149.3 149.7 150.4 22 Nonfood staples...................... 7.17 165.0 161.5 161.7 163.6 165.7 167.1 165.9 166.2 167.6 169.5 169.1 168.8 170.4 170.1 23 Consumer chemical products........................ 2.63 208.7 203.0 202.6 204.3 209.3 213.0 210.2 210.0 212.5 214.7 217.6 220.0 221.2 24 Consumer paper products . 1.92 122.9 120.2 120.6 121.5 122.0 122.3 124.8 127.3 127.0 127.6 129.5 129.1 128.1 25 Consumer energy products 2.62 151.9 150.1 150.9 153.5 153.9 154.0 151.5 150.8 152.3 154.8 149.4 146.5 150.3 26 Residential utilities........ 1.45 171.2 169.8 170.1 176.5 178.6 178.3 175.0 171.8 171.2 174.4 167.0 166.5 Equipment 27 Business............................................ 12.63 173.3 171.9 169.8 170.1 170.3 170.5 172.3 174.5 177.8 178.9 178.3 180.5 182.2 183.3 28 Industrial...................................... 6.77 157.0 157.8 155.2 154.8 154.5 154.2 154.4 157.1 160.7 163.8 165.2 167.3 168.7 169.8 29 Building and mining.............. 1.44 241.3 242.2 241.0 244.4 243.6 243.4 244.3 250.1 255.7 265.9 272.2 279.6 285.2 286.8 30 Manufacturing........................ 3.85 128.5 129.5 126.1 126.0 124.4 123.9 123.9 126.4 130.6 131.1 131.0 132.0 132.5 133.4 31 Power........................................ 1.47 149.0 149.1 147.1 142.0 145.9 146.1 146.1 146.0 146.1 149.1 149.9 149.3 149.2 150.3 32 Commercial transit, farm.......... 5.86 192.1 188.2 186.7 187.8 188.4 189.4 192.8 194.7 197.6 196.3 193.4 195.8 197.8 198.9 33 Commercial.............................. 3.26 237.5 232.0 228.8 229.0 233.6 237.2 242.0 244.0 248.3 249.6 250.9 253.4 253.9 254.9 34 Transit...................................... 1.93 139.4 136.3 138.0 140.9 138.4 133.8 135.0 136.6 137.9 131.7 122.9 126.4 129.4 130.9 35 Farm.......................................... 67 123.2 124.6 121.6 122.5 112.7 116.8 120.2 121.9 123.1 122.9 116.4 115.3 121.7 36 Defense and space.......................... 7.51 97.8 97.2 96.8 97.2 96.9 97.4 98.5 99.8 100.7 101.0 100.2 100.8 101.0 101.4 Intermediate products 37 Construction supplies.................... 6.42 140.7 133.0 128.5 128.6 133.1 137.4 140.5 142.8 144.6 147.4 147.3 147.6 146.4 145.4 38 Business supplies............................ 6.47 162.9 159.4 158.4 160.4 161.9 163.6 164.3 164.2 167.5 168.0 166.5 165.2 165.5 39 Commercial energy products... 1.14 173.6 172.0 168.7 172.1 173.7 175.2 174.6 174.0 179.4 178.3 175.0 174.2 173.6 Materials 40 Durable goods materials................ 20.35 143.1 139.8 133.8 129.0 131.3 134.2 140.4 146.6 148.4 150.2 150.7 152.4 152.4 153.0 41 Durable consumer parts............ 4.58 109.0 100.1 96.0 93.9 98.1 104.2 110.8 115.5 116.3 116.2 115.9 119.9 122.1 123.2 42 Equipment parts........................ 5.44 187.3 190.8 182.5 177.6 176.3 176.0 178.5 184.0 185.8 189.2 188.9 191.5 192.1 193.2 43 Durable materials n.e.c............. 10.34 135.0 130.5 125.0 118.9 122.4 125.4 133.4 140.6 142.9 144.6 146.0 146.2 144.8 145.0 44 Basic metal materials............ 5.57 104.6 100.0 95.9 84.7 89.4 91.7 102.0 114.4 115.0 116.3 118.1 118.1 115.5 45 Nondurable goods materials........ 10.47 170.7 165.2 159.6 156.2 159.8 169.7 173.7 174.1 178.8 180.2 179.6 177.6 179.0 180.0 46 Textile, paper, and chemical materials.................................. 7.62 177.0 171.5 163.4 158.5 163.2 175.1 180.5 181.0 186.5 187.7 187.4 185.3 187.0 188.3 47 Textile materials.................... 1.85 116.0 117.6 114.0 114.4 111.0 114.7 114.9 113.0 111.8 111.9 111.1 109.9 111.2 48 Paper materials...................... 1.62 145.1 141.7 143.4 138.4 142.0 148.2 147.3 149.5 150.0 149.6 151.7 152.2 150.8 49 Chemical materials................ 4.15 216.7 207.3 193.3 186.1 194.9 212.6 222.9 223.8 234.1 236.4 235.5 231.8 235.1 50 Containers, nondurable............ 1.70 165.1 155.8 157.7 159.0 158.8 167.2 168.6 166.6 169.7 172.1 171.0 168.8 169.8 51 Nondurable materials n.e.c. 1.14 137.3 136.4 136.8 136.6 137.9 137.2 135.7 139.1 141.1 142.0 140.4 139.4 139.5 52 Energy materials............................ 8.48 130.0 129.6 130.4 130.4 130.0 128.4 127.2 130.9 130.5 130.2 131.3 130.8 124.2 123.5 53 Primary energy............................ 4.65 115.1 116.2 117.3 115.6 114.0 114.3 113.7 114.5 115.0 114.4 117.5 116.3 105.1 54 Converted fuel materials.......... 3.82 148.2 145.8 146.4 148.4 149.4 145.4 143.6 150.9 149.4 149.4 148.0 148.3 147.4 Supplementary groups 55 Home goods and clothing............ 9.35 133.2 131.5 129.5 125.3 128.5 128.5 132.2 135.0 133.9 134.8 133.2 133.8 134.1 134.6 56 Energy, total.................................... 12.23 138.8 137.9 138.4 139.2 139.2 138.2 136.8 139.2 139.7 139.9 139.2 138.2 134.4 133.9 57 Products........................................ 3.76 158.5 156.7 156.3 159.1 159.9 160.5 158.5 157.9 160.5 161.9 157.1 154.9 157.4 58 Materials...................................... 8.48 130.0 129.6 130.4 130.4 130.0 128.4 127.2 130.9 130.5 130.2 131.3 130.8 124.2 123.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1980 1981 SIC pro­ 1980 Grouping code por­ Avg. tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Apr.P MayP Index (1967 == 100) Major Industry 12.05 150.4 149.6 150.1 150.1 150.5 150.5 150.2 152.8 154.0 155.2 155.2 155.8 152.6 152.5 6.36 132.9 133.4 132.9 130.6 129.6 130.5 132.1 136.0 139.3 141.1 143.3 143.8 136.2 135.7 5.69 169.9 167.7 169.3 171.8 173.8 172.7 170.4 171.5 170.3 171.0 168.5 169.3 170.8 171.3 3.88 189.7 186.0 188.7 192.4 195.4 193.9 190.3 191.5 190.3 191.1 187.4 188.6 190.7 191.2 87.95 146.6 143.4 140.3 139.1 140.6 143.4 146.4 149.1 150.6 151.1 151.0 151.7 152.3 152.9 35.97 161.1 158.0 155.3 154.7 156.9 160.3 161.8 163.3 165.0 165.2 166.1 165.5 166.1 166.6 51.98 136.6 133.3 129.9 128.3 129.4 131.7 135.8 139.3 140.6 141.4 140.7 142.2 142.7 143.5 Mining 8 Metal.......................................... 10 .51 109.1 120.8 120.0 83.1 71.2 73.1 90.8 107.2 122.2 126.3 133.7 131.1 124.9 9 Coal............................................ 11.12 .69 146.7 145.0 150.0 149.8 154.9 148.9 145.7 151.6 155.3 150.3 158.9 151.1 75.8 71.1 10 Oil and gas extraction............ 13 4.40 133.8 133.9 133.2 134.3 133.6 134.7 135.4 137.4 139.1 141.5 142.7 145.0 147.1 147.6 14 .75 131.7 128.1 123.9 123.7 123.5 128.2 129.0 133.0 137.8 140.0 138.9 138.4 135.3 Nondurable manufactures 20 8.75 149.2 149.5 149.0 148.9 148.3 148.6 149.4 150.5 150.7 150.0 151.5 152.2 153.0 21 .67 119.8 116.2 113.9 119.6 117.4 119.1 123.1 125.1 118.8 122.9 123.1 117.3 22 2.68 136.8 137.1 133.6 132.5 132.6 133.0 133.8 135.0 133.9 133.8 135.5 134.0 135.1 15 Apparel products 23 3.31 128.6 128.6 127.2 121.5 123.8 126.7 127.5 128.0 125.1 125.9 124.0 123.6 16 Paper and products.................. 26 3.21 151.0 145.7 146.2 143.6 147.1 152.3 153.0 154.4 156.8 157.2 156.7 156.9 156.2 156.7 17 Printing and publishing.......... 27 4.72 139.6 135.5 135.4 138.6 140.3 140.3 141.5 142.7 144.9 145.5 145.8 144.1 142.7 143.1 18 Chemicals and products.......... 28 7.74 206.7 199.2 191.1 190.3 197.8 206.8 209.1 212.0 218.8 219.2 220.9 219.3 220.5 19 Petroleum prooucts.................. 29 1.79 134.9 133.0 131.3 130.5 126.7 130.5 130.1 131.2 137.5 137.3 134.3 131.4 130.2 128.6 20 Rubber ana plastic products.. 30 2.24 255.8 248.1 242.9 242.5 245.9 253.1 259.2 259.6 259.2 258.2 264.0 266.9 272.7 21 Leather and products.............. 31 .86 70.1 70.1 68.5 67.8 67.7 67.2 70.2 71.2 67.8 68.9 69.4 69.1 67.5 Durable manufactures 22 Ordnance, private and government...................... 19.91 3.64 77.9 77.9 77.5 77.1 77.2 77.1 79.1 79.6 79.5 78.9 78.6 78.3 78.8 79.8 23 Lumber and products.............. 24 1.64 119.3 104.5 109.7 112.8 121.7 122.6 122.2 124.9 122.0 126.3 126.3 125.4 125.0 24 Furniture and fixtures............ 25 1.37 150.0 149.5 143.1 138.6 141.1 144.8 147.2 147.2 149.0 150.5 153.0 153.0 155.5 25 Clay, glass, stone products ... 32 2.74 146.5 140.8 134.5 134.2 135.7 141.4 145.2 147.8 151.4 154.9 154.8 152.9 151.3 26 Primary metals.......................... 33 6.57 101.6 96.1 90.4 81.7 86.0 90.1 100.6 113.4 112.1 113.9 114.2 114.0 112.3 111.0 27 Iron and steel........................ 331.2 4.21 91.7 84.4 75.4 68.1 75.3 79.8 93.3 107.4 103.5 108.0 107.8 106.3 104.8 28 Fabricated metal products----- 34 5.93 135.0 133.2 126.1 123.8 125.8 129.0 132.8 134.1 137.4 137.6 139.1 141.3 141.6 142.1 29 Nonelectrical machinery........ 35 9.15 162.8 162.1 158.3 158.5 158.8 159.1 161.1 163.4 167.5 168.9 169.1 170.7 171.9 172.7 30 Electrical machinery................ 36 8.05 172.7 171.4 166.6 165.0 166.7 167.5 170.0 173.0 174.9 177.9 174.6 177.1 178.4 179.6 31 Transportation equipment----- 37 9.27 116.8 109.8 110.0 110.7 108.3 112.9 118.8 121.7 120.6 117.3 114.9 119.3 120.4 123.5 32 Motor vehicles and parts... 371 4.50 118.8 105.9 106.7 107.9 104.4 113.4 124.2 129.0 126.3 119.2 117.5 127.4 129.8 135.8 33 Aerospace and miscella­ neous transportation equipment...................... 372-9 4.77 114.9 113.5 113.1 113.4 111.9 112.3 113.6 114.8 115.2 115.5 112.5 111.7 111.6 112.0 34 Instruments.............................. 38 2.11 171.0 171.0 169.2 167.5 167.6 167.4 169.6 169.9 172.1 174.0 171.3 169.9 170.2 170.7 35 Miscellaneous manufactures .. 39 1.51 147.8 147.3 43.7 144.7 144.2 142.8 145.0 147.5 149.5 151.8 153.6 154.9 157.5 156.5 Gross value (billions of 1972 dollars, annual rates) Major Market 36 Products, total.......................... 507.4 602.1 588.6 585.0 586.7 585.9 593.3 604.7 610.9 615.5 614.0 612.0 617.4 617.6 621.7 37 Final.......................................... 390.9 465.4 457.3 455.6 456.9 453.0 458.0 467.7 473.0 475.5 472.6 470.4 476.4 477.6 482.4 38 Consumer goods.................. 277.5 313.5 306.3 305.8 307.7 305.1 309.0 316.6 320.0 320.3 317.2 316.5 320.2 321.1 324.0 39 Equipment............................ 113.4 151.9 151.0 149.8 149.2 147.9 149.0 151.1 153.0 155.2 155.4 154.0 156.2 156.5 158.3 40 Intermediate.............................. 116.6 136.7 131.3 129.4 129.9 132.9 135.3 137.1 137.9 140.0 141.5 141.5 140.9 140.0 139.3 Note. Published groupings include some series and subtotals not shown sepa­ rately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), Decem­ ber 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics □ June 1981 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1980 1981 Item 1978 1979 1980 Sept. Oct. Nov. Dec. Jan. Feb.' Mar.' Apr. Private residential real estate activity (thousands of units) New Units 1 Permits authorized.................................... 1,801 1,552 1,191' 1,518' 1,351' 1,366' 1,249' 1,214' 1,165 1,153 1,185 2 1-family.................................................... 1,183 981 710' 884' 820' 809' 753' 715' 667 678 691 3 2-or-more-family.................................... 618 571r 481' 634' 531' 557' 496' 499' 488 475 494 4 Started.......................................................... 2,020 1,745 1,292 1,482 1,519 1,550 1,535 1,660 1,215 1,289 1,343 5 1-family.................................................... 1,433 1,194 852 1,032 1,009 1,019 974 993 791 833 889 6 2-or-more-family.................................... 587 551 440 450 510 531 561 667 424 456 454 7 Under construction, end of period1........ 1,310 1,140 896' 864 886 905 915 940' 941 928 8 1-family.................................................... 765 639 515 495 514 529 535 544 541 535 9 2-or-more-family.................................... 546 501 382' 369 372 376 380 396' 400 393 10 Completed.................................................. 1,868 1,855 1,502' 1,254 1,287 1,274 1,373 1,252' 1,375 1,362 n.a. 11 1-family.................................................... 1,369 1,286 957' 763 823 819 895 903' 961 868 12 2-or-more-family.................................... 499 570 545 491 464 455 478 349' 414 494 13 Mobile homes shipped.............................. 276 277 222 239 236 239 261 233 256 255 Merchant builder activity in 1-family units 14 Number sold.............................................. 818 709 530 563 549 560 514 523' 503 510 441 15 Number for sale, end of period1............ 419 402 340' 335 334 337 336 329' 335 326 329 Price (thousands of dollars)2 Median 16 Units sold................................................ 55.8 62.7 64.9 68.5 66.1 67.1 67.2 67.9' 65.9 67.3 69.3 Average 17 Units sold................................................ 62.7 71.9 76.6 80.3 77.7 82.2 81.5 80.2' 79.6 80.8 84.0 Existing Units (1-family) 18 Number sold.............................................. 3,863 3,701 2,881 3,280 3,120 2,960 2,910 2,580 2,560 2,490 2,640 Price of units sold (thous. of dollars)2 19 Median........................................................ 48.7 55.5 62.1 64.2 62.7 64.3 63.0 64.5 64.1 64.4 65.3 20 Average...................................................... 55.1 64.0 72.7 75.5 73.4 74.9 74.0 76.1 75.7 76.2 77.6 Value of new construction3 (millions of dollars) Construction 21 Total put in place...................................... 205,457 228,948 228,705 223,660 228,831 235,784 247,403 261,916 253,941 251,542 244,632 22 Private.......................................................... 159,555 179,948 173,578 167,882 173,833 182,182 189,153 196,400 193,374 191,223 190,443 23 Residential.............................................. 93,423 99,029 86,903 84,378 89,207 97,007 100,216 103,154 100,603 97,376 97,014 24 Nonresidential, total.............................. 66,132 80,919 86,675 83,504 84,626 85,175 88,937 93,246 92,771 93,847 93,429 Buildings 25 Industrial........................................ 10,993 14,953 14,021 13,102 12,996 13,392 15,079 15,127 15,239 15,652 15,391 26 Commercial.................................... 18,568 24,924 29,344 27,425 28,417 28,888 30,392 33,605 33,071 33,100 33,244 27 Other................................................ 6,739 7,427 8,533 8,447 8,760 8,799 9,086 9,931 9,640 9,728 9,148 28 Public utilities and other.................. 29,832 33,615 34,777 34,530 34,453 34,096 34,380 34,583 34,821 35,367 35,646 29 Public.......................................................... 45,901 49,001 55,128 55,778 54,998 53,602 58,250 65,516 60,567 60,318 54,189 30 Military.................................................... 1,501 1,641 1,853 1,717 2,069 1,765 1,705 2,063 1,980 1,967 2,149 31 Highway.................................................. 10,713 11,915 13,473 13,804 13,550 12,427 13,742 19,882 17,812 15,515 14,144 32 Conservation and development.......... 4,457 4,586 5,083 5,091 4,763 5,109 5,626 6,242 6,197 6,018 5,688 33 Other........................................................ 29,230 30,859 34,719 35,166 34,616 34,301 37,177 37,329 34,578 36,818 32,208 1. Not at annual rates. Note. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing Institute 3. Value of new construction data in recent periods may not be strictly comparable and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing with data in prior periods due to changes by the Bureau of the Census in its units, which are published by the National Association of Realtors. All back ana estimating techniques. For a description of these changes see Construction Reports current figures are available from originating agency. Permit authorizations are (C-30-76-5), issued by the Bureau in July 1976. those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices A49 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 Apr. Item 1980 1981 1980 1981 1981 1980 1981 (1967 Apr. Apr. =100)1 June Sept. Dec. Mar. Dec. Jan. Feb. Mar. Apr. Consumer Prices2 1 All items........................................ 14.7 10.0 11.4 7.8 13.2 9.6 1.0 .7 1.0 .6 .4 266.8 2 Commodities................................ 13.1 9.1 5.4 13.2 11.0 8.6 .7 .6 1.1 .5 .0 250.8 3 Food .......................................... 7.2 9.6 5.8 19.7 13.1 2.1 1.0 -.1 .3 .4 .0 272.9 4 Commodities less food............ 15.7 8.9 5.2 10.6 9.9 12.3 .6 1.0 1.4 .5 .0 238.0 5 Durable.................................. 9.5 7.9 7.5 15.2 11.8 -.7 .4 .3 -.3 -.1 .3 221.1 6 Nondurable.......................... 23.7 10.0 3.8 5.0 6.2 29.8 .7 2.1 3.2 1.3 -.2 258.1 7 Services.......................................... 16.9 11.3 20.5 .7 16.8 10.3 1.4 .9 .8 .8 1.0 295.4 8 Rent............................................ 8.7 9.2 10.0 8.6 9.6 7.0 .7 .7 .5 .5 .6 204.2 9 Services less rent...................... 18.1 11.7 22.1 -.3 17.8 10.9 1.5 .9 .9 .8 1.0 312.8 Other groupings 10 All items less food...................... 16.3 10.1 12.7 5.7 13.2 11.7 1.0 1.0 1.1 .7 .5 264.2 11 All items less food and energy.. 13.0 9.5 14.0 5.8 14.4 5.8 1.1 .6 .4 .4 .6 250.1 12 Homeownership.......................... 22.2 10.3 26.4 -3.5 23.1 3.1 1.5 .5 0 .3 .7 339.3 Producer Prices 13 Finished goods.............................. 13.7 10.6 8.4 13.5 8.3 12.0 .4 1.0' .6' 1.3 .8 267.7 14 Consumer.................................. 14.7 10.6 7.6 14.5 7.4 12.1 .3 .9 ' .6' 1.4 .8 269.6 15 Foods...................................... 1.2 9.3 -1.4 31.0 4.3 .3 0.0 .1' -.8' .8 .0 251.5 16 Excluding foods.................... 22.0 11.1 12.2 7.5 8.9 17.4 .4 1.2' 1.2' 1.6 1.1 275.1 17 Capital equipment.................... 10.5 10.3 10.9 9.9 11.8 11.5 .4 1.1' .9' .7 .9 260.5 18 Intermediate materials3.............. 17.8 10.7 6.2 7.8 12.9 13.2 1.6 1.4' .4' 1.3 1.1 309.0 Crude materials 19 Nonfood.................................... 23.9 24.3 .2 32.3 27.5 35.7 1.8 2.0' 6.3' -.4 1.4 488.8 20 Food .......................................... -6.9 11.7 -.3 73.9 -4.0 -23.1 -2.6 -1.1 -3.3 -2.0 1.5 263.4 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers. animal feeds. Source. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics □ June 1981 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1980 1981 Account 1978 1979 1980 Ql Q2 Q3 Q4 Ql' Gross National Product 1 Total.......................................................................................................... 2,156.1 2,413.9 2,626.1 2,571.7 2,564.8 2,637.3 2,730.6 2,853.8 By source 2 Personal consumption expenditures...................................................... 1,348.7 1,510.9 1,672.8 1,631.0 1,626.8 1,682.2 1,751.0 1,805.8 3 Durable goods...................................................................................... 199.3 212.3 211.9 220.9 194.4 208.8 223.3 237.3 4 Nondurable goods................................................................................ 529.8 602.2 675.7 661.1 664.0 674.2 703.5 752.2 5 Services.................................................................................................. 619.6 696.3 785.2 749.0 768.4 799.2 824.2 843.4 6 Gross private domestic investment...................................................... 375.3 415.8 395.3 415.6 390.9 377.1 397.7 435.4 7 Fixed investment.................................................................................. 353.2 398.3 401.2 413.1 383.5 393.2 415.1 432.8 8 Nonresidential.................................................................................. 242.0 279.7 296.0 297.8 289.8 294.0 302.1 316.1 9 Structures...................................................................................... 78.7 96.3 108.8 108.2 108.4 107.3 111.5 116.7 10 Producers’ durable equipment.................................................. 163.3 183.4 187.1 189.7 181.4 186.8 190.7 199.4 11 Residential structures...................................................................... 111.2 118.6 105.3 115.2 93.6 99.2 113.0 116.7 12 Nonfarm........................................................................................ 106.9 113.9 100.3 110.1 88.9 94.5 107.6 111.3 13 Change in business inventories.......................................................... 22.2 17.5 -5.9 2.5 7.4 -16.0 -17.4 2.6 14 Nonfarm............................................................................................ 21.8 13.4 -4.7 1.5 6.1 -12.3 -14.0 5.0 15 Net exports of goods and services........................................................ -0.6 13.4 23.3 8.2 17.1 44.5 23.3 37.0 16 Exports.................................................................................................. 219.8 281.3 339.8 337.3 333.3 342.4 346.1 376.8 17 Imports.................................................................................................. 220.4 267.9 316.5 329.1 316.2 297.9 322.7 339.8 18 Government purchases of goods and services.................................... 432.6 473.8 534.7 516.8 530.0 533.5 558.6 575.5 19 Federal.................................................................................................. 153.4 167.9 198.9 190.0 198.7 194.9 212.0 221.5 20 State and local...................................................................................... 279.2 305.9 335.8 326.8 331.3 338.6 346.6 354.1 By major type of product 21 Final sales, total...................................................................................... 2,133.9 2,396.4 2,632.0 2,569.1 2,557.4 2,653.4 2,748.0 2,851.2 22 Goods.................................................................................................... 946.6 1,055.9 1,130.4 1,116.9 1,106.4 1,129.4 1,169.0 1,249.9 23 Durable.............................................................................................. 409.8 451.2 458.6 456.4 444.6 456.5 476.7 502.7 24 Nondurable...................................................................................... 536.8 604.7 671.9 660.5 661.8 672.9 692.2 747.3 25 Services.................................................................................................. 976.3 1,097.2 1,229.6 1,178.6 1,205.6 1,249.0 1,285.3 1,316.7 26 Structures.............................................................................................. 233.2 260.8 266.0 276.2 252.8 258.9 276.4 287.1 27 Change in business inventories.............................................................. 22.2 17.5 -5.9 2.5 7.4 -16.0 -17.4 2.6 28 Durable goods...................................................................................... 17.8 11.5 -4.0 -11.8 3.3 -8.4 .7 -4.6 29 Nondurable goods................................................................................ 4.4 6.0 -1.8 14.3 4.1 -7.7 -18.1 7.2 30 Memo: Total GNP in 1972 dollars........................................................ 1,436.9 1,483.0 1,480.7 1,501.9 1,463.3 1,471.9 1,485.6 1,516.0 National Income 31 Total.......................................................................................................... 1,745.4 1,963*3 2,121.4 2,088.5 2,070.0 2,122.4 2,204.8 2,289.3 32 Compensation of employees.................................................................. 1,299.7 1,460.9 1,596.5 1,558.0 1,569.0 1,597.4 1,661.8 1,721.9 33 Wages and salaries.............................................................................. 1,105.4 1,235.9 1,343.6 1,314.5 1,320.4 1,342.3 1,397.3 1,442.4 34 Government and government enterprises.................................... 219.6 235.9 253.6 243.3 250.5 253.9 263.3 267.0 35 Other.................................................................................................. 885.7 1,000.0 1,090.0 1,067.9 1,069.9 1,088.4 1,134.0 1,175.4 36 Supplement to wages and salaries.................................................... 194.3 225.0 252.9 243.5 248.6 255.0 264.5 279.5 37 Employer contributions for social insurance.............................. 92.1 106.4 115.8 112.6 113.6 116.0 121.0 131.4 38 Other labor income........................................................................ 102.2 118.6 137.1 130.9 135.1 139.1 143.5 148.0 39 Proprietors’ income1................................................................................ 117.1 131.6 130.6 133.7 124.9 129.7 134.0 131.8 40 Business and professional1................................................................ 91.0 100.7 107.2 107.9 101.6 107.6 111.6 113.0 41 Farm1.................................................................................................... 26.1 30.8 23.4 25.7 23.3 22.1 22.5 18.8 42 Rental income of persons2.................................................................... 27.4 30.5 31.8 31.2 31.5 32.0 32.4 32.7 43 Corporate profits1.................................................................................... 199.0 196.8 182.7 200.2 169.3 177.9 183.3 202.6 44 Profits before tax3................................................................................ 223.3 255.4 245.5 277.1 217.9 237.6 249.5 258.7 45 Inventory valuation adjustment........................................................ -24.3 -42.6 -45.7 -61.4 -31.1 -41.7 -48.4 -39.2 6 Capital consumption adjustment...................................................... -13.5 -15.9 -17.2 -15.4 -17.6 -17.9 -17.8 -16.9 47 Net interest............................................................................................. 115.8 143.4 179.8 165.4 175.3 185.3 193.3 200.3 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.49. 2. With capital consumption adjustments. Source. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Income Accounts A51 2.17 PERSONAL INCOME AND SAVING Billions of currcnt dollars; quarterly data arc at seasonally adjusted annual rates. Exceptions noted. Ql Q2 Q3 Q4 Ql Personal Income and Saving Total personal income.................................................................................... 1.721.8 2,088.2 2,114.5 2,182.1 2.256.2 2.318.7 Wage and salary disbursements................................................................ 1.105.2 1.236.1 1.343.7 1.314.7 1.320.4 1.341.8 1.397.8 1.442.4 Commodity-producing industries.......................................................... 389.1 437.9 465.4 461.7 456.0 460.1 484.0 501.2 Manufacturing......................................................................................... 299.2 333.4 350.7 347.9 343.2 346.7 364.0 377.3 Distributive industries.............................................................................. 270.5 303.0 328.9 322.6 323.2 329.2 340.6 351.7 Service industries....................................................................................... 226.1 259.2 295.7 283.6 290.8 298.7 310.0 322.5 Government and government enterprises.......................................... 219.4 236.1 253.6 246.8 250.5 253.9 263.3 267.0 Other labor income....................................................................................... 102.2 118.6 137.1 130.9 135.1 139.1 143.5 148.0 Proprietors' income1....................................................................................... 117.2 131.6 130.6 133.7 124.9 129.7 134.0 131.8 Business and professional1 ..................................................................... 91.0 100.8 107.2 107.9 101.6 107.6 111.6 113.0 Farm1 ............................................................................................................. 26.1 30.8 23.4 25.7 23.3 22.1 22.5 18.8 Rental income of persons2......................................................................... 27.4 30.5 31.8 31.2 31.5 32.0 32.4 32.7 Dividends.......................................................................................................... 43.1 48.6 54.4 52.4 54.2 55.1 56.1 58.0 Personal interest income.............................................................................. 173.2 209.6 256.3 239.9 253.6 261.8 269.7 288.3 Transfer payments......................................................................................... 223.3 249.4 294.2 271.7 280.7 310.7 313.9 319.7 Old-age survivors, disability, and health insurance benefits.... 116.2 131.8 153.8 142.0 144.7 163.2 165.3 169.8 Less: Personal contributions for social insurance........................... 69.6 80.6 87.9 86.2 85.9 88.1 91.2 102.2 Equals: Personal income........................................................................... 1.721.8 1.943.8 2.160.2 2.088.2 2.114.5 2.182.1 2.256.2 2.318.7 Less: Personal tax and nontax payments.......................................... 258.8 302.0 338.5 323.1 330.3 341.5 359.2 371.9 Equals: Disposable personal income..................................................... 1.462.9 1.641.7 1.821.7 1.765.1 1.784.1 1.840.6 1.897.0 1.946.9 Less: Personal outlays.............................................................................. 1.386.6 1.555.5 1.720.4 1.678.7 1.674.1 1.729.2 1.799.4 1.854.7 Equals: Personal saving.............................................................................. 76.3 86.2 101.3 86.4 110.0 111.4 97.6 92.2 Memo: Per capita (1972 dollars) Gross national product.............................................................................. 6.568 6.721 6.646 6.768 6.580 6.597 6.641 6.762 Personal consumption expenditures..................................................... 4.136 4.219 4.196 4.251 4.134 4.172 4,232 4.274 Disposable personal income................................................................... 4.487 4.584 4.571 4.600 4.532 4.565 4.585 4,609 Saving rate (percent).................................................................................... 5.2 5.2 5.6 4.9 6.2 6.1 5.1 4.7 Gross Saving Gross saving...................................................................................................... 355.2 412.0 401.9 404.5 394.5 402.0 406.7 446.0 Gross private saving....................................................................................... 355.4 398.9 432.9 413.0 435.9 446.5 436.4 451.3 Personal saving............................................................................................... 76.3 86.2 101.3 86.4 110.0 111.4 97.6 92.2 Undistributed corporate profits1 .............................................................. 57.9 59.1 44.3 52.1 42.1 42.8 40.4 52.6 Corporate inventory valuation adjustment............................................ -24.3 -42.6 -45.7 -61.4 -31.1 -41.7 -48.4 -39.2 Capital consumption allowances Corporate........................................................................................................... 136.4 155.4 175.4 167.1 173.0 178.4 183.2 187.5 Noncorporate.................................................................................................... 84.8 98.2 111.8 107.4 110.7 113.4 115.8 119.0 Wage accruals less disbursements............................................................ .0 .0 .0 .0 .0 S -.5 .0 Government surplus, or deficit (-), national income and product accounts.................................................................................................... -0.2 11.9 -32.1 1.7 -29.6 -45.6 -30.8 -6.4 Federal.......................................................................................................... -29.2 - 14.8 -61.2 -36.3 -66.5 -74.2 -67.9 -44.4 State and local............................................................................................. 29.0 26.7 29.1 26.6 23.9 28.6 37.1 37.9 Capital grants received by the United States, net............................... .0 1.1 1.1 1.1 1.1 1.1 1.1 1.2 Gross investment............................................................................................. 361.6 414.1 401.2 407.3 392.5 405.0 400.1 451.7 Gross private domestic.................................................................................. 375.3 415.8 395.3 415.6 390.9 377.1 397.7 435.4 Net foreign........................................................................................................ - 13.8 - 1.7 5.9 -8.3 1.7 27.8 2.3 16.2 42 Statistical discrepancy.................................................................................... 1. With inventory valuation and capital consumption adjustments. Source. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics □ June 1981 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1979 1980 Item credits or debits 1978 1979 1980 p Q4 Ql Q2 Q3 Q4 p 1 Balance on current account........................................................ -14,259 -705 118 -1,735 -2,621 -2,441 4,493 687 2 Not seasonally adjusted.......................................................... 553 -2,426 -681 102 3,123 3 Merchandise trade balance2.................................................... -33,759 -29,386 -27,354 -9,158 -10,848 -7,503 2,858 -6,145 4 Merchandise exports............................................................ 142,054 182,068 221,781 50,239 54,604 54,605 56,181 56,391 5 Merchandise imports............................................................ -175,813 -211,454 -249,135 -59,397 -65,452 -62,108 -59,039 -62,536 6 Military transactions, net........................................................ 886 -1,274 -3,309 -700 -922 -994 -636 -758 7 Investment income, net3.......................................................... 20,899 32,509 32,534 8,833 10,062 6,102 8,056 8,316 8 Other service transactions, net.............................................. 2,769 3,112 5,206 792 899 1,280 1,458 1,570 9 Remittances, pensions, and other transfers........................ -1,884 -2,142 -2,452 -665 -565 -564 -578 -747 10 U.S. government grants (excluding military)...................... -3,171 -3,524 -4,506 -887 -1,247 -762 -949 -1,549 11 Change in U.S. government assets, other than official re­ serve assets, net (increase, -).......................................... -4,644 -3,783 -5,111 -925 -1,467 -1,191 -1,374 -1,079 12 Change in U.S. official reserve assets (increase, - ) ............ 732 -1,132 -8,155 -649 -3,268 502 -1,109 -4,279 13 Gold............................................................................................ -65 -65 0 -65 0 0 0 0 14 Special drawing rights (SDRs).............................................. 1,269 -1,136 -16 0 -1,152 112 -261 1,285 15 Reserve position in International Monetary Fund.............. 4,231 -189 -1,667 27 -34 -99 -294 -1,240 16 Foreign currencies.................................................................... -4,683 257 -6,472 -611 -2,082 489 -554 -4,324 17 Change in U.S. private assets abroad (increase, -)3............ -57,279 -56,858 -71,236 -11,918 -7,971 -25,019 -16,652 -21,409 18 Bank-reported claims.............................................................. -33,631 -25,868 -46,608 -7,213 -274 -21,051 -12,268 -13,015 19 Nonbank-reported claims........................................................ -3,853 -2,029 n.a. 410 -1,474 147 479 n.a. 20 U.S. purchase of foreign securities, net.............................. -3,450 -4,643 -3,188 -986 -765 -1,246 -805 -371 21 U.S. direct investments abroad, net3.................................... -16,345 -24,318 -20,592 -4,129 -5,458 -2,869 -4,058 -8,207 22 Change in foreign official assets in the United States (increase, +)........................................................................ 33,292 -14,270 16,179 -1,221 -7,215 7,775 7,991 7,628 23 U.S. Treasury securities.......................................................... 23,523 -22,356 9,640 -5,769 -5,357 4,314 3,769 6,914 24 Other U.S. government obligations...................................... 666 465 2,187 41 801 250 549 587 25 Other U.S. government liabilities4........................................ 2,220 -714 1,375 -924 181 737 242 215 26 Other U.S. liabilities reported by U.S. banks.................... 5,488 7,219 -84 4,881 -3,185 1,652 2,006 -557 27 Other foreign official assets5.................................................. 1,395 1,116 3,061 550 345 822 1,425 469 28 Change in foreign private assets in the United States (increase, + )3...................................................................... 30,804 51,845 31,446 5,246 14,409 174 3,772 13,092 29 U.S. bank-reported liabilities................................................ 16,259 32,668 10,687 400 6,355 -4,208 194 8,346 30 U.S. nonbank-reported liabilities.......................................... 1,640 1,692 n.a. 1,050 683 1,331 405 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,197 4,830 2,693 920 3,278 -1,225 -254 894 32 Foreign purchases of other U.S. securities, net.................. 2,811 2,942 7,443 313 2,427 1,194 990 2,832 33 Foreign direct investments in the United States, net3___ 7,896 9,713 8,204 2,563 1,666 3,082 2,437 1,020 34 Allocation of SDRs...................................................................... 0 1,139 1,152 0 1,152 0 0 0 35 Discrepancy.................................................................................. 11,354 23,765 35,605 11,202 6,981 20,200 2,879 5,544 36 Owing to seasonal adjustments.............................................. 2,400 -93 1,465 -4,032 2,658 37 Statistical discrepancy in recorded data before seasonal adjustment........................................................................ 11,354 23,765 35,605 8,802 7,074 18,735 6,911 2,886 Memo: Changes in official assets 38 U.S. official reserve assets (increase, -)............................ 732 -1,132 -8,155 -649 -3,268 502 -1,109 -4,279 39 Foreign official assets in the United States (increase, +).................................................................... 31,072 -13,556 14,804 -297 -7,396 7,038 7,749 7,415 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above).................................................................................... -1,137 5,558 12,985 5,005 2,955 4,749 4,391 890 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above).................................................... 236 305 635 139 144 155 125 211 1. Seasonal factors are no longer calculated for lines 12 through 41. 4. Primarily associated with military sales contracts and other transactions ar- 2. Data are on an international accounts (IA) basis. Differs from the Census ranged with or through foreign official agencies. basis data, shown in table 3.11, for reasons of coverage and timing; military exports 5. Consists of investments in U.S. corporate stocks and in debt securities of are excluded from merchandise data and are included in line 6. private corporations and state and local governments. 3. Includes reinvested earnings of incorporated affiliates. 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 A ssets A53 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1980 1980 Oct. Nov. Dec. Jan. Feb. Mar Apr 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments........................................ 143,682 181,860 220,684 19,214 18,715 19,251 18,825 19,764 21,434 19,818 GENERAL IMPORTS including mer­ chandise for immediate consump­ tion plus entries into bonded warehouses........................................ 174,759 209,458 245,010 20,347 19,860 21,436 23,194 21,922 20,949 22,289 3 Trade balance . -31,075 -27,598 -24,326 -1,134 -1,145 -2,185 -4,369 -2,158 485 -2,471 Note. The data in this table are reported by the Bureau of Census data on a account” in table 3.10, line 6). On the import side, additions are made for gold, free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. Begin­ ship purchases, imports of electricity from Canada and other transactions; military ning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census payments are excluded and shown separately as indicated above. basis trade data; this adjustment has been made for all data shown in the table. The Census basis data differ from merchandise trade data shown in table 3.10, Source. FT900 “Summary of U.S. Export and Import Merchandise Trade” U.S. International Transactions Summary, for reasons of coverage and timing. On (U.S. Department of Commerce, Bureau of the Census). the export side, the largest adjustments are: (a) the addition of exports to Canada not covered in Census statistics, and (b) the exclusion of military sales (which are combined with other military transactions and reported separately in the “service 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1980 1981 Type 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. May p 1 Total1.......................................................... 18,650 18,956 26,756 25,673 26,756 28,316 29,682 30,410 29,693 29,395 2 Gold stock, including Exchange Stabili­ zation Fund1 ...................................... 11,671 11,172 11,160 11,162 11,160 11,159 11,156 11,154 11,154 11,154 3 Special drawing rights2-3.......................... 1,558 2,724 2,610 3,954 2,610 3,628 3,633 3,913 3,712 3,652 4 Reserve position in International Mone­ tary Fund2 .......................................... 1,047 1,253 2,852 1,822 2,852 2,867 3,110 3,448 3,576 3,690 5 Foreign currencies4-5................................ 4,374 3,807 10,134 8,735 10,134 10,662 11,783 11,895 11,251 10,899 1. Gold held under earmark at Federal Reserve Banks for foreign and inter­ 3. Includes allocations by the International Monetary Fund of SDRs as follows: national accounts is not included in the gold stock of the United States; see table $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, 3.22. 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based million on Jan. 1, 1981; plus net transactions in SDRs. on a weighted average of exchange rates for the currencies of member countries. 4. Beginning November 1978, valued at current market exchange rates. From July 1974 through December 1980, 16 currencies were used; from January 5. Includes U.S. government securities held under repurchase agreement against 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position receipt of foreign currencies, if any. in the IMF also are valued on this basis beginning July 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics □ June 1981 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1980 1981 Asset account 1977 1978' 1979 Sept. Oct. Nov. Dec.' Jan.' Feb. Mar .p All foreign countries 1 Total, all currencies.................................. 258,897 306,795 364,233 385,884 383,356' 389,184' 397,233 395,156 399,143 408,362 2 Claims on United States.......................... 11.623 17.340 32.302 29.341 30.476 30.617 28,459 29,517 31.995 30,441 3 Parent bank............................................ 7.806 12.811 25.929 19.685 21.440 22.254 20,202 20,658 21.442 18,967 4 Other........................................................ 3,817 4.529 6.373 9.656 9.036 8.363 8.257 8,859 10,553 11,474 5 Claims on foreigners.................................. 238.848 278.135 317.175 339.204 335.623' 340.848'- 350.993 348.219 349.292 359,772 6 Other branches of parent bank.......... 55,772 70.338 79.661 73.856 72.477'- 74.062'- 76.552 75.309 75,268 77,395 7 Banks..................................................... 91,883 103.111 123.413 139,902 138.296' 139.977' 144.627 144.464 145.825 150,252 8 Public borrowers2.................................. 14,634 23.737 26.072 26.740 26.548 26,935 27,626 27.583 27.938 28,487 9 Nonbank foreigners................................. 76,560 80.949 88.029 98.706 98.302' 99,874' 102.188 100,863 100,261 103,638 10 Other assets................................................ 8,425 11.320 14.756 17.339 17.257'- 17.719' 17.781 17,420 17,856 18,149 11 Total payable in U.S. dollars.................... 193,764 224,940 267,711 282,171 279,827' 284,401' 289,860 291,900 296,339 302,564 12 Claims on United States.......................... 11,049 16.382 31.171 28.138 29.059 29.173 27.190 28,261 30.741 29,248 13 Parent ba"k............................................ 7,692 12.625 25.632 19.414 21.043 21,853 19.896 20,366 21.189 18,752 14 Other....................................................... 3,357 3.757 5.539 8.724 8.016 7.320 7.294 7.895 9.552 10,496 15 Claims on foreigners...................................... 178,896 203.498 229.118 245.588 242.152' 246,363' 253.451 254.113 255,704 263,235 16 Other branches of parent bank.......... 44,256 55.408 61.525 56.603 55.249'- 57.238' 58.273 58.553 57,700 59,648 17 Banks ............................................................ 70,786 78,686 96.261 111.878 109.438' 110.799' 115,984 116,677 118,181 121,169 18 Public borrowers2.................................. 12,632 19,567 21.629 22.305 22.578 22.846 23.398 23.190 23,479 23,976 19 Nonbank foreigners.............................. 51,222 49.837 49.703 54.802 54.887'- 55.480' 55.796 56.693 56,344 58,442 20 Other assets................................................ 3,820 5.060 7.422 8.445 8.616' 8,865' 9.219 9.526 9,894 10,081 United Kingdom 21 Total, all currencies...................................... 90,933 106,593 130,873 137,447 138,158 140,715 142,781 143,609 144,793 145,459 22 Claims on United States.......................... 4,341 5.370 11.117 8.022 8.216 8.771 7.508 7,727 9.211 9,413 23 Parent bank............................................ 3.518 4.448 9.338 5.788 5.969 6,552 5.275 5,278 6.471 6,405 24 Other........................................................ 823 922 1.779 2.234 2.247 2,219 2.233 2.449 2,740 3,008 25 Claims on foreigners.................................. 84.016 98.137 115.123 123.369 123.854 125,859 129.232 130.174 129,646 129,992 26 Other branches of parent bank........... 22.017 27.830 34.291 30.858 31.431 32,267 34.538 35.136 35,406 34,583 27 Banks ...................................................... 39,899 45.013 51.343 57,066 56.723 57.423 57,658 58,489 58,554 58,714 28 Public borrowers2.................................. 2,206 4.522 4.919 6.251 6.113 6,405 6.684 6.620 6,626 6,929 29 Nonbank foreigners.............................. 19,895 20.772 24.570 29.194 29.587 29.764 30,352 29.929 29,060 29,766 30 Other assets..................................................... 2,576 3.086 4.633 6.056 6,088 6,085 6,041 5,708 5,936 6,054 31 Total payable in U.S. dollars.................... 66,635 75,860 94,287 94,784 95,287 97,246 98,913 101,038 103,048 102,933 32 Claims on United States.......................... 4,100 5.113 10.746 7.656 7.647 8.233 7.115 7,304 8,765 9,001 33 Parent bank............................................ 3,431 4.386 9.297 5.744 5.817 6,410 5,229 5,221 6,418 6,381 34 Other........................................................ 669 727 1.994 1.912 1.830 1,823 1,886 2.083 2,347 2,620 35 Claims on foreigners...................................... 61,408 69.416 81.294 84.355 84.849 86.246 88,950 90,682 91,204 90,696 36 Other branches of parent bank........... 18,947 22.838 28.928 24.913 25.593 26.710 28,231 28.768 28,946 28,132 37 Banks...................................................... 28,530 31.482 36.760 40.917 40.312 40,542 41.373 42.887 42,751 42,609 38 Public borrowers2.................................. 1,669 3.317 3.319 4.663 4.551 4,706 4.909 4.816 4,930 5,168 39 Nonbank foreigners.............................. 12,263 11.779 12,287 13.862 14.393 14,288 14.437 14,211 14,577 14,787 40 Other assets..................................................... 1,126 1.331 2,247 2.773 2.791 2.767 2.848 3.052 3,079 3,236 Bahamas and Caymans 41 Total, all currencies.................................. 79,052 91,735 108,977 123,179 119,524 119,367 123,837 123,460 124,809 127,801 42 Claims on United States.......................... 5,782 9.635 19.124 18.305 19.656 18.325 17.751 18,370 19,150 17,547 43 Parent bank............................................ 3,051 6.429 15.196 11.839 13,837 13,071 12,631 12.842 12,417 10,216 44 Other........................................................ 2,731 3.206 3.928 6.466 5,819 5,254 5,120 5,528 6,733 7,331 45 Claims on foreigners.................................. 71,671 79.774 86,718 100.905 95,959 96.800 101,926 100.792 101,199 105,771 46 Other branches of parent bank........... 11,120 12.904 9,689 14.724 13,076 13,118 13,315 12.956 11,998 13,803 47 Banks...................................................... 27,939 33.677 43,189 52.749 49,900 50.626 54,888 54,252 55,280 57,065 48 Public borrowers2.................................. 9,109 11,514 12,905 12.078 12,441 12,213 12,577 12,558 12,605 12,579 49 Nonbank foreigners.............................. 23,503 21.679 20,935 21,354 20,542 20,843 21,146 21,026 21,316 22,324 50 Other assets................................................ 1,599 2,326 3,135 3,969 3,909 4,242 4,160 4.298 4,460 4,483 51 Total payable in U.S. dollars.................... 73,987 85,417 102,368 117,245 113,683 113,560 117,654 117,549 119,007 121,953 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A55 3.13 Continued 1980 1981 Liability account 1977 19781 1979 Sept. Oct. Nov. Dec.' Jan.' Feb. Mar.P All foreign countries 52 Total, all currencies.................................. 285,897 306,795 364,233 385,884 383,356' 389,184' 397,233 395,156 399,143 408,362 53 To United States........................................ 44,154 58,012 66,686 84,068 84,161' 86,589' 90,942 92,186 90,524 97,671 54 Parent bank............................................ 24,542 28,654 24,530 38,456' 37,184' 36,956' 39,135 38,478 36,212 42,977 5 55 6 O N t o h 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 .. .. . . . . . . . . .. .. .. .. . . . . .. .. . 19,613 1 1 7 2 , ,1 18 6 9 9 2 1 8 3 , , 1 9 8 6 8 8 3 1 2 2 , , 9 6 4 6 3 9' 3 1 4 2 , , 1 8 0 7 5 2' 3 1 6 3 , , 2 4 1 2 3 0' 3 1 7 4 , , 2 4 8 7 9 3 4 1 0 3 , , 1 5 1 9 8 0 4 1 0 3 , , 3 9 2 8 4 8 4 1 0 4 , , 3 3 2 7 2 2 57 To foreigners.............................................. 206,579 238,912 283,344 287,810 285,366' 288,385' 291,780 288,797 294,811 296,501 58 Other branches of parent bank.......... 53,244 67,496 77,601 70,689 69,766' 71,554' 73,938 72,729 73,434 74,986 59 Banks ...................................................... 94,140 97,711 122,849 131,022 132,195' 132,281' 130,654 132,517 134,531 133,593 60 Official institutions................................ 28,110 31,936 35,664 33,086 30,722' 31,145' 32,440 28,870 28,529 29,819 61 Nonbank foreigners.............................. 31,085 41,769 47,230 53,013 52,673' 53,405' 54,748 54,681 58,317 58,103 62 Other liabilities.......................................... 8,163 9,871 14,203 14,006 13,829' 14,210' 14,556 14,173 13,808 14,190 63 Total payable in U.S. dollars.................... 198,572 230,810 273,819 289,163 287,318' 292,549' 300,988 302,443 306,832 313,413 64 To United States........................................ 42,881 55,811 64,530 81,125 81,255 83,764 88,123 89,640 88,164 95,321 65 Parent bank............................................ 24,213 27,519 23,403 36,791 ' 35,419' 35,233' 37,496 36,903 34,794 41,527 6 6 6 7 O N t o h 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 . . .. .. .. .. .. .. . . . . .. .. .. .. . . . 18,669 1 1 1 6 , , 9 3 1 7 5 7 2 1 7 3 , , 3 77 5 1 6 3 1 1 2 , , 8 4 9 4 0 4' 3 1 3 2 , , 2 5 4 9 3 3' 3 1 5 3 , , 4 1 0 2 7 4' 3 1 6 4 , , 4 2 2 0 4 3 3 1 9 3 , , 3 4 2 1 1 6 3 1 9 3 , , 6 7 1 5 3 7 3 1 9 4 , , 5 2 5 35 9 68 To foreigners.............................................. 151,363 169,927 201,476 200,281 198,682' 200,937' 204,697 204,575 210,130 209,261 69 Other branches of parent bank.......... 43,268 53,396 60,513 55,146 53,780' 55,599' 56,965 56,629 56,634 58,344 70 Banks...................................................... 64,872 63,000 80,691 85,387 86,994' 86,556' 86,596 89,095 91,412 87,478 71 Official institutions................................ 23,972 26,404 29,048 25,659 23,373' 23,870' 24,691 21,842 21,894 23,109 72 Nonbank foreigners.............................. 19,251 27,127 31,224 34,089 34,535' 34,912' 36,445 37,009 40,190 40,330 73 Other liabilities.......................................... 4,328 5,072 7,813 7,757 7,381 7,848' 8,168 8,228 8,538 8,831 United Kingdom 74 Total, all currencies.................................. 90,933 106,593 130,873 137,447 138,158 140,715 142,781 143,609 144,793 145,459 75 To United States........................................ 7,753 9,730 20,986 19,343 19,157 20,594 21,735 23,226 22,783 24,376 76 Parent bank............................................ 1,451 1,887 3,104 2,951 2,712 3,198 4,176 4,228 3,190 4,242 7 7 8 7 N Ot o h 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 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,302 4 3 , , 1 6 8 5 9 4 1 7 0 , , 6 1 9 8 3 9 1 5 1 , , 3 0 6 3 1 1 1 5 0 , , 8 6 0 45 0 1 5 1 , , 7 6 3 6 2 4 1 5 1 , , 7 8 1 43 6 1 5 3 , , 4 5 3 6 6 2 1 5 3 , , 8 7 6 2 9 4 1 5 4 , , 5 6 1 1 9 5 79 To foreigners.............................................. 80,736 93,202 104,032 112,412 113,539 114,813 115,582 115,236 116,927 115,816 80 Other branches of parent bank.......... 9,376 12,786 12,567 13,706 13,940 13,951 13,933 13,734 13,422 13,913 81 Banks...................................................... 37,893 39,917 47,620 53,776 56,772 58,127 55,928 57,371 57,505 56,110 82 Official institutions................................ 18,318 20,963 24,202 22,444 19,807 20,437 21,412 19,199 19,607 19,765 83 Nonbank foreigners.............................. 15,149 19,536 19,643 22,486 23,020 22,298 24,309 24,932 26,393 26,028 84 Other liabilities.......................................... 2,445 3,661 5,855 5,692 5,462 5,308 5,464 5,147 5,083 5,267 85 Total payable in U.S. dollars.................... 67,573 77,030 95,449 96,832 97,055 99,135 102,300 104,123 106,448 106,636 86 To United States........................................ 7,480 9,328 20,552 18,687 18,551 19,978 21,080 22,597 22,245 23,929 87 Parent bank............................................ 1,416 1,836 3,054 2,892 2,634 3,101 4,078 4,126 3,132 4,160 88 Other banks in United States.............. 6,064 4,101 7,651 5,259 5,714 5,616 5,626 5,343 5,757 5,487 89 Nonbanks................................................ 3,391 9,847 10,536 10,203 11,261 11,376 13,128 13,356 14,282 90 To foreigners.............................................. 58,977 66,216 72,397 75,422 76,114 76,696 78,512 78,768 81,100 79,501 91 Other branches of parent bank.......... 7,505 9,635 8,446 9,588 9,891 9,770 9,600 9,591 9,184 9,297 92 Banks...................................................... 25,608 25,287 29,424 32,891 35,495 35,998 35,177 36,463 37,014 34,553 93 Official institutions................................ 15,482 17,091 20,192 18,046 15,338 15,989 17,024 14,941 15,420 15,738 94 Nonbank foreigners.............................. 10,382 14,203 14,335 14,897 15,390 14,939 16,711 17,773 19,482 19,913 95 Other liabilities.......................................... 1,116 1,486 2,500 2,723 2,390 2,461 2,708 2,758 3,103 3,206 Bahamas and Caymans 96 Total, all currencies.................................. 79,052 91,735 108,977 123,179 119,524 119,367 123,837 123,460 124,809 127,801 97 To United States........................................ 32,176 39,431 37,719 56,317 56,123 56,860 59,666 58,928 58,607 64,159 98 Parent bank............................................ 20,956 20,482 15,267 29,321' 27,666' 26,861' 28,181 26,563 26,222 31,833 1 9 0 9 0 N Ot o h 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 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,220 1 6 2 , , 0 8 7 7 3 6 1 5 7 , , 2 2 0 4 4 8 20 6 , , 8 1 8 0 7 9' 22 5 , , 5 9 0 5 0 7' 23 6 , , 4 5 7 2 1 8' 24 7 , , 1 3 0 7 6 9 2 7 5 , , 1 2 2 3 6 9 2 7 5 , , 1 2 6 2 5 0 24 7, , 8 4 8 4 3 3 101 To foreigners.............................................. 45,292 50,447 68,598 63,966 60,593 59,492 61,218 61,597 63,323 60,737 102 Other branches of parent bank.......... 12,816 16,094 20,875 17,079 16,720 15,878 17,040 17,819 18,781 17,370 103 Banks ...................................................... 24,717 23,104 33,631 32,185 29,202 28,933 29,895 30,050 30,289 28,602 104 Official institutions................................ 3,000 4,208 4,866 4,250 4,610 4,368 4,361 4,204 3,663 4,403 105 Nonbank foreigners.............................. 4,759 7,041 9,226 10,452 10,061 10,313 9,922 9,524 10,590 10,362 106 Other liabilities.......................................... 1,584 1,857 2,660 2,896 2,808 3,015 2,953 2,935 2,879 2,905 107 Total payable in U.S. dollars.................... 74,463 87,014 103,460 118,576 115,166 115,121 119,657 119,214 120,714 123,785 1. In May 1978 the exemption level for branches required to report was increased, eluding corporations that are majority owned by foreign governments, replaced which reduced the number of reporting branches. the previous, more narrowly defined claims on foreign official institutions. 2. In May 1978 a broader category of claims on foreign public borrowers, in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics □ June 1981 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1980 1981 Item 1978 1979 1980 Sept. Oct. Nov. Dec. Jan. Feb. Mar.p 1 Total1................................................................................ 162,625 149,546 164,402 156,894 157,376 163,212 164,402 162,778 162,384 169,732 By type 2 Liabilities reported by banks in the United States2 . 23,326 30,540 30,381 30,841 28,734 29,546 30,381 27,008 24,864 27,372 3 U.S. Treasury bills and certificates3.......................... 67,671 47,666 56,243 49,361 50,392 55,104 56,243 56,522 56,829 60,306 U.S. Treasury bonds and notes 4 Marketable.................................................................. 35,894 37,590 41,431 40,801 41,465 41,765 41,431 42,295 43,699 44,783 5 Nonmarketable4........................................................ 20,970 17,387 14,654 15,254 15,254 15,254 14,654 14,654 14,494 14,294 6 U.S. securities other than U.S. Treasury securities5 14,764 16,363 21,693 20,637 21,531 21,543 21,693 22,299 22,498 22,977 By area 7 Western Europe1............................................................ 93,089 85,633 81,592 76,967 75,989 80,884 81,592 80,434 78,334 79,986 8 Canada ............................................................................ 2,486 1,898 1,562 1,901 1,670 1,393 1,562 1,174 1,089 1,437 9 Latin America and Caribbean.................................... 5,046 6,291 5,688 6,606 6,008 5,722 5,688 5,456 5,241 6,366 10 Asia.................................................................................. 58,854 52,827 70,608 67,671 69,114 70,097 70,608 70,557 72,667 76,702 11 Africa.............................................................................. 2,408 2,412 4,123 3,232 3,520 3,866 4,123 3,973 3,948 4,089 12 Other countries6............................................................ 742 485 829 517 1,077 1,250 829 1,184 1,105 1,152 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored 2. Principally demand deposits, time deposits, bankers acceptances, commercial agencies, and U.S. corporate stocks and bonds. paper, negotiable time certificates of deposit, and borrowings under repurchase 6. Includes countries in Oceania and Eastern Europe. agreements. 3. Includes nonmarketable certificates of indebtedness (including those payable Note. Based on Treasury Department data and on data reported to the Treasury in foreign currencies through 1974) and Treasury bills issued to official institutions Department by banks (including Federal Reserve Banks) and securities dealers in of foreign countries. the United States. 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and notes payable in foreign currencies. 3.15 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1980 1981 Item 1977 1978 1979 Mar. June Sept. Dec. Mar.P 1 Banks’ own liabilities............................................................ 925 2,406 1,918 2,403' 2,739 2,754 3,748 3,268 2 Banks’ own claims1................................................................ 2,356 3,671 2,419 2,772 2,874 3,203 4,206 4,238 3 Deposits.............................................................................. 941 1,795 994 1,212 1,090 1,169 2,507 1,697 4 Other claims........................................................................ 1,415 1,876 1,425 1,560 1,784 2,035 1,699 2,542 5 Claims of banks’ domestic customers2.............................. 358 580 1,058 798 595 962 444 1. Includes claims of banks’ domestic customers through March 1978. Note. Data on claims exclude foreign currencies held by U.S. monetary au- 2. Assets owned by customers of the reporting bank located in the United States thorities. that represent claims on foreigners held by reporting banks for the accounts of their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A57 3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1980 1981 Holder and type of liability 1977 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar.P 1 All foreigners...................................................... 126,168 166,842 187,521 191,149 196,030 204,792 205,295 202,359 201,195' 203,584 2 Banks’ own liabilities........................................ 78,661 117,196 119,117 121,437 125,048 124,789 122,857 121,528' 120,293 3 Demand deposits.............................................. 18,996 19,218 23,303 22,344 22,460 22,847 23,462 22,149 23,300' 21,318 4 Time deposits1.................................................. 11,521 12,427 13.623 14,104 14,113 14,647 15,076 15,898 15,778' 16,272 5 Other2................................................................ 9,705 16,453 18,112 17,181 17,097 17,581 14,685 13,476' 15,948 6 Own foreign offices3........................................ 37,311 63,817 64,557 67,683 70,458 68,670 70,125 68,973r 66,755 7 Banks’ custody liabilities4.................................. 88,181 70,325 73,032 74,594 79,743 80,506 79,501 79,668' 83,291 8 U.S. Treasury bills and certificates5............ 48,906 68,202 48,573 50,731 51,990 56,484 57,595 57,673 58,360' 62,073 9 Other negotiable and readily transferable instruments6.............................................. 17,472 19,396 19,783 20,002 20,624 20,079 19,050 18,350' 18,375 10 Other.................................................................. 2,507 2,356 2,517 2,601 2,635 2,832 2,778 2,959 2,843 11 Nonmonetary international and regional organizations7................................................ 3,274 2,607 2,356 2,549 2,734 2,476 2,342 1,961 2,003 1,859 12 Banks’ own liabilities.......................................... 906 714 476 352 383 442 419 317 293 13 Demand deposits.............................................. 231 330 260 141 115 187 146 212 186 126 14 Time deposits1.................................................. 139 84 151 100 95 92 85 71 76 67 15 Other2................................................................ 492 303 235 143 104 211 137 54 100 16 Banks’ custody liabilities4.................................. 1,701 1,643 2,073 2,382 2,093 1,900 1,542 1,687 1,566 17 U.S. Treasury bills and certificates.............. 706 201 102 316 581 337 254 88 368 333 18 Other negotiable and readily transferable instruments6.............................................. 1,499 1,538 1,757 1,800 1,756 1,646 1,453 1,319 1,233 19 Other.................................................................. 1 2 0 0 0 0 0 0 0 20 Official institutions*............................................ 65,822 90,742 78,206 80,203 79,127 84,650 86,624 83,530 81,693' 87,678 21 Banks’ own liabilities.......................................... 12,165 18,292 18,466 16,101 16,842 17,826 15,222 13,938' 16,201 22 Demand deposits.............................................. 3,528 3,390 4,671 4,229 3,406 3,553 3,771 3,869 3,580' 3,338 23 Time deposits1.................................................. 1,797 2,560 3,050 3,576 3,355 3,588 3,612 3,343 2,997' 2,920 24 Other2................................................................ 6,215 10,571 10,661 9,341 9,700 10,443 8,010 7,361 9,942 25 Banks’ custody liabilities4.................................. 78,577 59,914 61,736 63,025 67,808 68,798 68,308 67,755' 71,477 26 U.S. Treasury bills and certificates5............ 47,820 67,415 47,666 49,361 50,392 55,104 56,243 56,522 56,829 60,306 27 Other negotiable and readily transferable instruments6.............................................. 10,992 12,196 12,312 12,577 12,648 12,501 11,756 10,894' 11,085 28 Other.................................................................. 170 52 63 55 56 54 30 32 86 29 Banks9.................................................................... 42,335 57,423 88,316 90,341 95,296 97,812 96,415 96,659 96,608' 93,065 30 Banks’ own liabilities.......................................... 52,626 83,299 85,093 89,931 91,932 90,456 90,594 90,319' 86,693 31 Unaffiliated foreign banks.............................. 15,315 19,482 20,536 22,248 21,474 21,786 20,469 21,346' 19,938 32 Demand deposits.......................................... 10,933 11,257 13,285 12,989 13,843 13,714 14,188 12,889 14,287' 12,595 33 Time deposits1.............................................. 2,040 1,429 1,667 1,408 1,718 1,782 1,703 1,857 1,813' 2,324 34 Other2............................................................ 2,629 4,530 6,139 6,686 5,978 5,895 5,723 5,245' 5,019 35 Own foreign offices3........................................ 37,311 63,817 64,557 67,683 70,458 68,670 70,125 68,973' 66,755 36 Banks’ custody liabilities4.................................. 4,797 5,017 5,248 5,365 5,880 5,959 6,065 6,289' 6,372 37 U.S. Treasury bills and certificates.............. 141 300 422 361 515 529 623 631 714' 826 38 Other negotiable and readily transferable instruments6.............................................. 2,425 2,415 2,533 2,417 2,883 2,748 2,856 2,850 2,930 39 Other.................................................................. 2,072 2,179 2,354 2,434 2,467 2,588 2,578 2,726' 2,615 40 Other foreigners.................................................. 14,736 16,070 18,642 19,056 18,874 19,854 19,914 20,209 20,891' 20,982 41 Banks’ own liabilities.......................................... 12,964 14,891 15,081 15,052 15,892 16,065 16,623 16,955' 17,106 42 Demand deposits.............................................. 4,304 4,242 5,087 4,986 5,096 5,393 5,356 5,179 5,246 5,259 43 Time deposits.................................................... 7,546 8,353 8,755 9,020 8,945 9,184 9,676 10,628 10,892' 10,961 44 Other2................................................................ 368 1,048 1,076 1,011 1,315 1,033 815 816' 886 45 Banks’ custody liabilities4.................................. 3,106 3,751 3,975 3,822 3,962 3,849 3,586 3,937 3,876 46 U.S. Treasury bills and certificates.............. 240 285 382 693 502 513 474 432 449' 607 47 Other negotiable and readily transferable instruments6.............................................. 2,557 3,247 3,181 3,208 3,337 3,185 2,985 3,287 3,127 48 Other.................................................................. 264 123 100 112 112 190 170 201' 141 49 Memo: Negotiable time certificates of deposit in custody for foreigners............................ 11,007 10,984 10,729 10,799 10,553 10,745 10,267 9,868 9,801 1. Excludes negotiable time certificates of deposit, which are included in “Other 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued negotiable and readily transferable instruments.” Data for time deposits before to official institutions of foreign countries. April 1978 represent short-term only. 6. Principally bankers acceptances, commercial paper, and negotiable time cer­ 2. Includes borrowing under repurchase agreements. tificates of deposit. 3. U.S. banks: includes amounts due to own foreign branches and foreign sub­ 7. Principally the International Bank for Reconstruction and Development, and sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg­ the Inter-American and Asian Development Banks. ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 8. Foreign central banks and foreign central governments and the Bank for banks: principally amounts due to head office or parent foreign bank, and foreign International Settlements. branches, agencies or wholly owned subsidiaries of head office or parent foreign 9. Excludes central banks, which are included in “Official institutions.” bank. 4. Financial claims on residents of the United States, other than long-term se­ curities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics □ June 1981 3.16 Continued 1980 1981 Area and country 1977 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar.P 1Total................................................................................ 126,168 166,842 187,521 192,149 196,030 204,792 205,295 202,359 201,195' 203,584 2Foreign countries............................................................ 122,893 164,235 185,164 189,600 193,296 202,315 202,953 200,398 199,192' 201,724 3Europe............................................................................ 60.295 85,172 90.952 83,513 83,970 90,682 90,897 89,701 89,181' 91,419 4 Austria........................................................................ 318 513 413 432 460 511 523 554 551 522 5 Belgium-Luxembourg................................................ 2,531 2,550 2.375 3,696 3.322 3,696 4,019 4,062 4,782' 4,728 6 Denmark...................................................................... 770 1,946 1.092 528 493 586 497 420 432 463 7 Finland........................................................................ 323 346 398 311 307 363 455 264 355 332 8 France .......................................................................... 5,269 9,214 10.433 12,332 11,654 12,374 12,125 12,168 12,521' 12,972 9 Germany...................................................................... 7,239 17,283 12.935 7,854 7,557 9,168 9,973 10,336 9,296' 12,280 10 Greece.......................................................................... 603 826 635 591 643 711 670 524 563 593 11 Italy.............................................................................. 6,857 7,739 7.782 5,969 6,796 7,308 7,572 6,743 5,987' 3,456 12 Netherlands................................................................ 2,869 2,402 2.337 2,540 2,555 2,783 2,441 2,568 2,540' 2,324 13 Norway........................................................................ 944 1,271 1.267 1.074 1,381 1,444 1,344 899 1,037 1,575 14 Portugal...................................................................... 273 330 557 571 491 437 374 370 358 356 15 Spain............................................................................ 619 870 1.259 1,321 1,520 1.379 1,500 1,416 1,388 1,631 16 Sweden ........................................................................ 2,712 3,121 2.005 1,826 1,813 1,807 1,737 1,365 2,078 2,406 17 Switzerland.................................................................. 12,343 18,225 17.954 13,524 13,695 16,574 16,689 16,631 16,636 16,854 18 Turkey.......................................................................... 130 157 120 237 171 257 242 203 231 235 19 United Kingdom........................................................ 14,125 14,272 24.700 22,830 23,791 24,439 22,680 24,209 24,325' 24,715 20 Yugoslavia.................................................................. 232 254 266 169 203 225 681 296 269 202 21 Other Western Europe1............................................ 1,804 3,440 4.070 7,275 6,865 6,140 6,939 6,225 5,385 5,377 22 U.S.S.R........................................................................ 98 82 52 39 33 64 68 46 84 47 23 Other Eastern Europe2............................................ 236 330 302 392 220 416 370 401 363' 352 24Canada ............................................................................ 4,607 6,969 7.379 10,337 10,039 9,856 10,031 9,802 9,131' 8,624 25 Latin America and Caribbean.................................... 23,670 31,638 49.686 48,945 52,501 53,308 53,170 53,229 52,275' 50,838 26 Argentina.................................................................... 1,416 1,484 1.582 1.875 1,996 1,996 2,132 1,857 1,998 1,917 27 Bahamas...................................................................... 3,596 6,752 15.255 14,096 17,567 16,803 16,381 16,164 15,916' 14,183 28 Bermuda...................................................................... 321 428 430 677 595 555 670 475 804 921 29 Brazil............................................................................ 1,396 1,125 1.005 1,222 1,342 1,248 1,216 1,339 1,266 1,152 30 British West Indies.................................................... 3,998 5,974 11.138 11,392 12,058 12,637 12,766 12,798 12,144 11,576 31 Chile............................................................................ 360 398 468 431 448 456 460 501 431 549 32 Colombia.................................................................... 1,221 1,756 2.617 2,916 3,037 2,962 3,077 3,085 3,087 2,970 33 Cuba............................................................................ 6 13 13 5 5 6 6 6 7 6 34 Ecuador ...................................................................... 330 322 425 381 387 437 371 389 449 511 35 Guatemala3................................................................ 416 414 373 365 359 367 428 461 446 36 Jamaica3...................................................................... 52 76 101 85 78 97 112 101 94 37 Mexico........................................................................ 2,876 3,467 4.185 4,226 4,575 4,580 4,547 4,595 4,600' 4,755 38 Netherlands Antilles.................................................. 196 308 499 360 393 568 413 599 523 436 39 Panama........................................................................ 2,331 2,967 4.483 3,894 3,595 4,575 4,718 4,460 3,984' 4,297 40 Peru.............................................................................. 287 363 383 355 380 345 403 401 447 344 41 Uruguay ...................................................................... 243 231 202 199 220 244 254 290 266 306 42 Venezuela.................................................................... 2,929 3,821 4.192 4,405 3,659 3,662 3,170 3,794 3,925 4,218 43 Other Latin America and Caribbean.................... 2,167 1,760 2.318 2,035 1,793 1,796 2,123 1,936 1,869 2,159 44 Asia.................................................................................. 30,488 36,492 33.005 42,009 41,056 41,999 42,420 41,649 42,721' 44,764 China 45 Mainland.................................................................. 53 67 49 38 46 62 49 55 55 60 46 Taiwan.................................................................... 1,013 502 1.393 1,595 1,610 1,636 1,662 1,821 1,733 1,822 47 Hong Kong.................................................................. 1,094 1,256 1.672 2,347 2,304 2,410 2,548 2,764 3,054 2,440 48 India............................................................................ 961 790 527 529 485 438 416 437 604 576 49 Indonesia.................................................................... 410 449 504 827 811 715 730 1,170 678 1,063 50 Israel ............................................................................ 559 688 707 534 530 548 883 523 557 584 51 Japan............................................................................ 14,616 21,927 8.907 15,434 15,372 15,720 16,281 17,701 17,990' 19,364 52 Korea.......................................................................... 602 795 993 1,994 1,809 1,764 1,528 1,498 1,485 1,382 53 Philippines.................................................................. 687 644 795 817 842 803 919 849 1,057' 1,115 54 Thailand...................................................................... 264 427 277 517 403 440 464 367 404 250 55 Middle-East oil-exporting countries4...................... 8,979 7,534 15.300 15,409 14,611 15,214 14,453 12,216 12,695 13,963 56 Other Asia.................................................................. 1,250 1,414 1.879 1,968 2,232 2,250 2,487 2,249 2,409 2,143 57 2,535 2,886 3.239 3,902 4,246 4,718 5,187 4,358 4,371 4,553 58 Egypt............................................................................ 404 404 475 322 269 374 485 313 496 333 59 Morocco...................................................................... 66 32 33 32 57 38 33 42 30 33 60 South Africa................................................................ 174 168 184 354 288 326 288 327 258 322 61 Zaire............................................................................ 39 43 110 42 36 34 57 48 58 28 62 Oil-exporting countries5............................................ 1,155 1,525 1.635 2,459 2,911 3,211 3,540 2,921 2,833 3,084 63 Other Africa.............................................................. 698 715 804 694 685 735 783 707 697 753 64 Other countries.............................................................. 1,297 1,076 904 894 1,484 1,752 1,247 1,658 1,513 1,526 65 Australia...................................................................... 1,140 838 684 613 1,190 1,419 950 1,304 1,205 1,287 66 All other...................................................................... 158 239 220 281 294 333 297 354 307 240 67 Nonmonetary international and regional organizations.......................................................... 3,274 2,607 2.356 2,549 2,734 2,476 2,342 1,961 2,003 1,859 68 International.............................................................. 2,752 1,485 1,238 1,389 1,586 1,366 1,156 913 995 754 69 Latin American regional.......................................... 278 808 806 837 841 801 890 769 745 768 70 Other regional6.......................................................... 245 314 313 323 307 309 296 279 263 338 1. Includes the Bank for International Settlements. Beginning April 1978, also 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and includes Eastern European countries not listed in line 23. United Arab Emirates (Trucial States). 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­ 5. Comprises Algeria, Gabon, Libya, and Nigeria. ocratic Republic, Hungary, Poland, and Romania. 6. Asian, African, Middle Eastern, and European regional organizations, except 3. Included in “Other Latin America and Caribbean” through March 1978. the Bank for International Settlements, which is included in “Other Western Europe.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A59 3.17 BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1980 1981 Area and country 1977 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar.p 1Total................................................................................ 90,206 115,545 133,943 161,548 163,189 167,525 172,702 167,338 167,825r 179,404 2Foreign countries............................................................ 90,163 115,488 133,906 161,510 163,144 167,487 172,624 167,266 167,746 r 179,330 3Europe............................................................................ 18,114 24,201 28,388 29,667 29,306 32,654 32,155 30,657 30,768r 34,127 4 Austria........................................................................ 65 140 284 264 196 250 236 249 191 174 5 Belgium-Luxembourg................................................ 561 1,200 1,339 1,954 1,680 1,946 1,621 1,739 2,140 2,568 6 Denmark...................................................................... 173 254 147 180 132 165 127 129 172 119 7 Finland........................................................................ 172 305 202 184 253 248 460 322 337 316 8 France.......................................................................... 2,082 3,735 3,322 3,232 2,551 3,506 2,958 2,716 3,067' 3,835 9 Germany...................................................................... 644 845 1,179 1,018 987 1,506 948 985 1,028' 1,074 10 Greece.......................................................................... 206 164 154 221 278 265 256 264 244' 210 11 Italy.............................................................................. 1,334 1,523 1,631 2,560 2,842 3,063 3,364 3,168 3,105' 3,053 12 Netherlands................................................................ 338 677 514 546 557 749 575 642 523 548 13 Norway........................................................................ 162 299 276 248 335 138 227 294 224 223 14 Portugal...................................................................... 175 171 330 330 341 393 331 299 240 247 15 Spain............................................................................ 722 1,120 1,051 1,106 1,113 1,111 993 1,131 1,152' 1,494 16 Sweden........................................................................ 218 537 542 716 763 633 783 688 733 868 17 Switzerland.................................................................. 564 1,283 1,165 1,337 1,564 1,932 1,446 1,753 1,729 1,310 18 Turkey.......................................................................... 360 300 149 144 123 149 145 146 155 235 19 United Kingdom........................................................ 8,964 10,147 13,795 13,015 12,981 13,995 14,917 13,175 12,949' 14,993 20 Yugoslavia.................................................................. 311 363 611 682 684 689 853 863 859 871 21 Other Western Europe1............................................ 86 122 175 245 226 234 179 347 177 176 22 U.S.S.R........................................................................ 413 360 268 241 257 271 281 249 249 265 23 Other Eastern Europe2............................................ 566 657 1,254 1,444 1,443 1,413 1,457 1,490 1,494 1,548 24Canada ............................................................................ 3,355 5,152 4,143 5,072 4,614 4,542 4,810 4,221 4,872' 5,071 25Latin America and Caribbean.................................... 45,850 57,565 67,993 85,935 87,986 89,259 92,992 90,792 89,732' 96,195 26 Argentina.................................................................... 1,478 2,281 4,389 5,629 5,898 6,270 5,689 5,642 5,636' 5,672 27 Bahamas...................................................................... 19,858 21,555 18,918 30,440 30,275 29,679 29,419 28,358 28,749' 33,997 28 Bermuda...................................................................... 232 184 496 216 399 260 218 267 364 322 29 Brazil............................................................................ 4,629 6,251 7,713 9,635 10,131 9,996 10,496 10,260 9,801' 10,208 30 British West Indies.................................................. 6,481 9,694 9,818 12,019 12,948 13,674 15,663 14,546 14,338' 14,226 31 Chile........................................................................... 675 970 1,441 1,627 1,721 1,730 1,951 1,862 1,843' 1,875 32 Colombia.................................................................... 671 1,012 1,614 1,493 1,575 1,582 1,752 1,665 1,435 1,467 33 Cuba............................................................................ 10 0 4 6 3 3 3 4 3 3 34 Ecuador ...................................................................... 517 705 1,025 1,111 1,157 1,157 1,190 1,222 1,179 1,257 35 Guatemala3................................................................ 94 134 105 112 114 137 114 113 208 36 Jamaica3...................................................................... 40 47 33 35 40 36 33 41 77 37 Mexico........................................................................ 4,909 5,479 9,099 11,120 11,745 12,014 12,595 12,687 12,460' 12,405 38 Netherlands Antilles.................................................. 224 273 248 710 799 816 821 835 655 807 39 Panama........................................................................ 1,410 3,098 6,041 4,461 3,972 4,367 4,974 5,033 4,964' 5,640 40 Peru.............................................................................. 962 918 652 671 719 749 890 912 877 786 41 Uruguay ...................................................................... 80 52 105 100 100 105 137 111 107 103 42 Venezuela.................................................................... 2,318 3,474 4,657 4,879 4,710 5,113 5,438 5,515 5,514 5,441 43 Other Latin America and Caribbean.................... 1,394 1,485 1,593 1,681 1,689 1,591 1,583 1,728 1,653 1,702 44 19,236 25,362 30,730 37,716 37,964 37,956 39,140 39,564 39,144' 40,632 China 45 Mainland.................................................................. 10 4 35 117 126 187 195 225 186 201 46 Taiwan.................................................................... 1,719 1,499 1,821 2,492 2,332 2,382 2,469 2,415 2,270' 2,401 47 Hong Kong.................................................................. 543 1,479 1,804 2,243 2,133 2,094 2,247 2,250 2,212 2,330 48 India............................................................................ 53 54 92 84 103 125 142 110 142 127 49 Indonesia.................................................................... 232 143 131 208 214 248 245 280 306 288 50 Israel............................................................................ 584 888 990 916 1,055 1,125 1,172 1,081 829 944 51 Japan............................................................................ 9,839 12,646 16,911 20,666 20,614 20,323 21,361 21,187 22,345' 23,710 52 Korea.......................................................................... 2,336 2,282 3,793 5,565 5,880 5,839 5,697 5,904 5,936 5,830 53 Philippines.................................................................. 594 680 737 1,171 1,084 1,122 989 840 745 605 54 Thailand...................................................................... 633 758 933 947 925 974 876 810 808 835 55 Middle East oil-exporting countries4...................... 1,746 3,125 1,548 1,429 1,258 1,538 1,494 1,435 1,443 1,486 56 Other Asia.................................................................. 947 1,804 1,934 1,876 2,240 1,999 2,252 2,026 1,922' 1,874 57 Africa.............................................................................. 2,518 2,221 1,797 2,029 2,090 1,933 2,377 1,910 1,981 2,271 58 Egypt............................................................................ 119 107 114 123 159 165 151 175 152 137 59 Morocco...................................................................... 43 82 103 166 119 146 223 186 115 153 60 South Africa................................................................ 1,066 860 445 535 440 375 370 337 421 534 61 Zaire............................................................................ 98 164 144 101 123 98 94 96 94 111 62 Oil-exporting countries5............................................ 510 452 391 374 469 402 805 410 425 589 63 Other............................................................................ 682 556 600 729 780 747 734 707 773 746 64 Other cpuntries.............................................................. 1,090 988 855 1,091 1,185 1,143 1,150 1,122 1,250 1,035 65 Australia...................................................................... 905 877 673 879 942 915 859 827 868 870 66 All other...................................................................... 186 111 182 213 243 228 290 295 381 164 67Nonmonetary international and regional organizations6........................................................ 43 56 36 39 44 38 78 72 79 74 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in “Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­ Western Europe.” ocratic Republic, Hungary, Poland, and Romqjiia. 3. Included in “Other Latin America and Caribbean” through March 1978. Note. Data for period prior to April 1978 include claims of banks’ domestic 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and customers on foreigners. United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics □ June 1981 3.18 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 1980 1981 Type of claim 1977 1978 1979 Sept. Oct Nov. Dec. Jan. Feb. Mar. 1 Total.......................................................................... 90,206 126,787 154,030 187,038 198,807 210,455 r 2 Banks’ own claims on foreigners.......................... 115,545 133,943 161,548 163,189 167,525 172,702 167,338 167,825'' 179,404' 3 Foreign public borrowers........................................ 10,346 15,937 19,311 19,478 21,158 20,944 20,969 20,320' 20,830' 4 Own foreign offices1................................................ 41,605 47,428 61,880 62,087 62,507 65,084 64,002 64,910r 74,569' 5 Unaffiliated foreign banks...................................... 40,483 40,927 45,963 46,576 49,066 50,215 46,350 45,905' 46,496' 6 Deposits................................................................ 5,428 6,274 7,211 7,116 7,579 8,254 7,261 7,079' 7,263' 7 Other...................................................................... 35,054 34,654 38,752 39,460 41,488 41,962 39,089 38,826' 39,233' 8 All other foreigners................................................ 23,111 29,650 34,395 35,048 34,794 36,459 36,017 36,690' 37,509' 9 Claims of banks’ domestic customers2................ 11,243 20,088 25,490 26,106 31,052' 10 Deposits.................................................................... 480 955 1,081 885 369' 11 Negotiable and readily transferable instruments3 5,396 13,100 15,260 15,574 19,930' 12 Outstanding collections and other claims4.......... 6,176 5,366 6,032 9,148 9,648 10,752' 13 Memo: Customer liability on acceptances.......... 15,030 18,021 23,433 22,714 24,452' Dollar deposits in banks abroad, reported by non­ banking business enterprises in the United States5.................................................................... 13,162 21,578 22,075 22,771' 24,631' 23,626' 28,304' 30,707' 22,989 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Data for March 1978 and for period prior to that are outstanding collections subsidiaries consolidated in “Consolidated Report of Condition” filed with bank only. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 5. Includes demand and time deposits and negotiable and nonnegotiable certif­ banks: principally amounts due from head office or parent foreign bank, and foreign icates of deposit denominated in U.S. dollars issued by banks abroad. For descrip­ branches, agencies, or wholly owned subsidiaries of head office or parent foreign tion of changes in data reported by nonbanks, see July 1979 Bulletin, p. 550. bank. 2. Assets owned by customers of the reporting bank located in the United States Note. Beginning April 1978, data for banks’ own claims are given on a monthly that represent claims on foreigners held by reporting banks for the account of their basis, but the data for claims of banks’ own domestic customers are available on domestic customers. a quarterly basis only. 3. Principally negotiable time certificates of deposit and bankers acceptances. 3.19 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 1980 1981 Maturity; by borrower and area Dec. Dec. Mar. June Sept. Dec. Mar.P 1 Total............................................................................................................... 73,635 86,181 85,452 93,260 99,022 106,857 104,789 By borrower 2 Maturity of 1 year or less1............................................................................ 58,345 65,152 64,109 71,938 76,231 82,665 80,855 3 Foreign public borrowers.......................................................................... 4,633 7,233 6,812 7,227 8,935 10,036 10,519 4 All other foreigners.................................................................................. 53,712 57,919 57,297 64,711 67,296 72,628 70,336 5 Maturity pf over 1 year1.............................................................................. 15,289 21,030 21,343 21,322 22,791 24,193 23,934 6 Foreign public borrowers.......................................................................... 5,395 8,371 8,593 8,673 9,722 10,152 10,158 7 All other foreigners.................................................................................. 9,894 12,659 12,750 12,649 13,069 14,041 13,775 By area Maturity of 1 year or less1 8 Europe....................................................................................................... 15,169 15,235 13,848 17,215 16,940 18,762 17,306 9 Canada....................................................................................................... 2,670 1,777 1,812 2,047 2,166 2,723 2,358 10 Latin America and Caribbean................................................................ 20,895 24,928 23,042 24,460 28,097 32,034 30,844 11 Asia............................................................................................................. 17,545 21,641 23,737 26,162 26,876 26,748 28,001 12 Africa......................................................................................................... 1,4% 1,077 1,043 1,330 1,401 1,757 1,624 13 All other2................................................................................................... 569 493 627 724 751 640 722 Maturity of over 1 year1 14 Europe....................................................................................................... 3,142 4,160 4,236 4,033 4,705 5,118 5,698 15 Canada ....................................................................................................... 1,426 1,317 1,214 1,199 1,188 1,448 1,184 16 Latin America and Caribbean................................................................ 8,464 12,814 13,388 13,887 14,187 15,075 14,768 17 Asia............................................................................................................. 1,407 1,911 1,728 1,477 2,014 1,865 1,585 18 Africa......................................................................................................... 637 655 620 576 567 507 531 19 All other2................................................................................................... 214 173 157 150 130 179 168 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A61 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1979 1980 1981 Area or country 1977 1978-2 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar. 1 240.0 266.2 263.9 275.6 294.0 303.8 308.5 328.5 338.7 350.1 363.8 2 G-10 countries and Switzerland.......................................................... 116.4 124.7 119.0 125.2 135.7 138.4 141.2 154.2 158.7 161.5 165.5 3 Belgium-Luxembourg........................................................................ 8.4 9.0 9.4 9.7 10.7 11.1 10.8 13.1 13.5 12.9 13.4 4 France .................................................................................................. 11.0 12.2 11.7 12.7 12.0 11.7 12.0 14.0 13.9 14.0 14.3 5 Germany.............................................................................................. 9.6 11.3 10.5 10.8 12.8 12.2 11.4 12.7 12.9 11.5 12.3 6 6.5 6.7 5.7 6.1 6.1 6.4 6.2 6.9 7.2 8.2 7.6 7 Netherlands........................................................................................ 3.5 4.4 3.9 4.0 4.7 4.8 4.3 4.5 4.4 4.4 4.5 8 Sweden ................................................................................................ 1.9 2.1 2.0 2.0 2.3 2.4 2.4 2.7 2.8 2.9 3.2 9 Switzerland.......................................................................................... 3.6 5.3 4.5 4.7 5.0 4.7 4.3 3.3 3.4 4.0 4.0 10 United Kingdom................................................................................ 46.5 47.3 46.4 50.3 53.7 56.4 57.6 64.3 66.6 68.7 68.2 11 Canada ................................................................................................ 6.4 6.0 5.9 5.5 6.0 6.3 6.9 7.2 7.7 8.4 8.5 12 Japan.................................................................................................... 18.8 20.6 19.0 19.5 22.3 22.4 25.4 25.5 26.1 26.5 29.4 13 Other developed countries.................................................................. 18.6 19.4 18.2 18.2 19.7 19.9 18.8 20.3 20.6 21.1 23.0 14 Austria................................................................................................ 1.3 1.7 1.7 1.8 2.0 2.0 1.7 1.8 1.8 1.9 1.8 15 Denmark.............................................................................................. 1.6 2.0 2.0 1.9 2.0 2.1 2.2 2.2 2.2 2.4 16 Finland................................................................................................ 1.2 1.2 1.2 1.1 1.2 1.2 1.1 1.3 1.2 1.4 1.3 17 Greece.................................................................................................. 2.2 2.3 2.3 2.2 2.3 2.4 2.5 2.6 2.8 2.8 18 Norway................................................................................................ 1.9 2.1 2.1 2.1 2.3 2.4 2.4 2.4 2.6 2.8 19 Portugal.............................................................................................. .6 .6 .6 .5 .7 .6 .6 .7 .6 .6 20 Spain.................................................................................................... 3.6 3.5 3.0 3.0 3.3 l.S 3.5 3.9 4.2 4.0 5.1 21 Turkey.................................................................................................. 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.4 1.3 1.5 1.5 22 Other Western Europe.................................................................... .9 1.3 1.1 .9 1.5 1.4 1.4 1.6 1.7 1.7 1.8 23 South Africa........................................................................................ 2.4 2.0 1.7 1.8 1.7 1.3 1.1 1.5 1.2 1.1 1.5 24 Australia.............................................................................................. 1.4 1.4 1.3 1.4 1.3 1.3 1.2 1.2 1.2 1.3 1.4 25 OPEC countries3.................................................................................... 17.6 22.7 22.6 22.7 23.4 22.9 21.8 20.9 21.3 22.8 21.4 26 Ecuador .............................................................................................. 1.1 1.6 1.5 1.6 1.6 1.7 1.8 1.8 1.9 2.1 2.0 27 Venezuela............................................................................................ 5.5 7.2 7.2 7.6 7.9 8.7 7.9 7.9 8.5 9.1 8.3 28 Indonesia............................................................................................ 2.2 2.0 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.8 2.0 29 Middle East countries...................................................................... 6.9 9.5 9.4 9.0 9.2 8.0 7.8 6.9 6.6 6.9 6.4 30 African countries................................................................................ 1.9 2.5 2.6 2.6 2.8 2.6 2.5 2.5 2.4 2.8 2.6 31 Non-OPEC developing countries........................................................ 48.7 52.6 53.9 56.0 58.9 62.9 63.7 67.4 72.8 76.9 80.5 Latin America 32 Argentina............................................................................................ 2.9 3.0 3.1 3.5 4.1 5.0 5.5 5.6 7.6 7.9 8.5 33 Brazil.................................................................................................... 12.7 14.9 14.9 15.1 15.1 15.2 15.0 15.3 15.8 16.2 16.7 34 Chile.................................................................................................... .9 1.6 1.7 1.8 2.2 2.5 2.5 2.7 3.2 3.5 4.0 35 Colombia............................................................................................ 1.3 1.4 1.5 1.5 1.7 2.2 2.1 2.2 2.4 2.6 2.4 36 Mexico................................................................................................ 11.9 10.8 10.9 10.7 11.4 12.0 12.1 13.6 14.4 15.9 17.0 37 1.9 1.7 1.6 1.4 1.4 1.5 1.3 1.4 1.5 1.8 1.8 38 Other Latin America........................................................................ 2.6 3.6 3.5 3.3 3.6 3.7 3.6 3.6 3.9 3.9 4.8 Asia China 39 Mainland.......................................................................................... .0 .0 .1 .1 .1 .1 .1 .1 .1 .2 .2 40 Taiwan............................................................................................ 3.1 2.9 3.1 3.3 3.5 3.4 3.6 3.8 4.2 4.4 41 India.................................................................................................... .3 2 2 .2 .2 .2 .2 .2 .3 .3 42 Israel .................................................................................................... .9 1.0 1.0 .9 1.0 1.3 .9 1.2 1.1 1.5 1.3 43 Korea (South).................................................................................... 3.9 3.9 4.2 5.0 5.3 5.4 6.4 7.1 7.3 7.1 7.7 44 Malaysia4............................................................................................ .7 .6 .6 .7 .7 .9 .8 .9 1.0 1.0 45 Philippines.......................................................................................... 2.5 2.8 3.2 3.7 3.7 4.2 4.4 4.6 5.0 4.7 46 Thailand.............................................................................................. 1.1 1.2 1.2 1.4 1.6 1.5 1.4 1.5 L5 1.4 1.4 47 Other Asia.......................................................................................... .4 ' .2 .4 .4 .4 .5 .5 .5 .6 .4 Africa 48 Egypt.................................................................................................... .3 .4 .5 .7 .6 .6 .7 .7 .7 .8 .8 49 Morocco.............................................................................................. .5 .6 .6 .5 .5 .6 .5 .5 .6 .7 .6 50 Zaire.................................................................................................... .3 2 2 .2 .2 2 .2 .2 2 .2 .4 51 Other Africa5...................................................................................... .7 1.4 1.4 1.5 1.6 1.7 1.7 1.8 2.0 2.0 2.1 52 Eastern Europe...................................................................................... 6.3 6.9 6.7 6.7 7.2 7.3 7.3 7.2 7.3 7.5 8.0 53 U.S.S.R............................................................................................... 1.6 1.3 1.1 .9 .9 .7 .6 .5 .5 .4 .4 54 Yugoslavia.......................................................................................... 1.1 1.5 1.6 1.7 1.8 1.8 1.9 2.1 2.1 2.3 2.4 55 Other.................................................................................................... 3.7 4.1 4.0 4.1 4.6 4.8 4.9 4.5 4.7 4.7 5.1 56 Offshore banking centers...................................................................... 26.1 31.0 33.7 37.0 38.6 40.4 42.6 44.2 44.5 46.5 50.7 57 Bahamas.............................................................................................. 9.9 10.4 12.3 14.4 13.0 13.7 13.9 13.7 13.1 13.3 13.6 58 Bermuda.............................................................................................. .6 .7 .6 .7 .7 .8 .6 .6 .6 .6 .7 59 Cayman Islands and other British West Indies............................ 3.7 7.4 7.1 7.4 9.5 9.4 11.3 9.8 10.1 10.6 11.3 60 Netherlands Antilles.......................................................................... .7 .8 .8 1.0 1.1 1.2 .9 1.2 1.3 2.1 2.1 61 Panama6.............................................................................................. 3.1 3.0 3.5 3.8 3.4 4.3 4.9 5.6 5.6 5.4 6.4 62 Lebanon .............................................................................................. 2 .1 .1 .1 .2 .2 .2 .2 2 .2 .2 63 Hong Kong.......................................................................................... 3.7 4.2 4.8 4.9 5.5 6.0 5.7 6.9 7.5 8.1 8.4 64 Singapore............................................................................................ 3.7 3.9 4.2 4.2 4.9 4.5 4.7 5.9 5.6 5.9 7.2 65 Others7................................................................................................ .5 .5 .4 .4 .4 .4 .4 .4 .4 .3 .9 66 Miscellaneous and unallocated8.......................................................... 5.3 9.1 9.5 9.9 10.6 11.7 13.1 14.3 13.7 13.9 14.8 1. The banking offices covered by these data are the U.S. offices and foreign the claims of the U.S. offices also include customer claims and foreign currency branches of U.S.-owHed banks and of U.S. subsidiaries of foreign-owned banks. claims (amounting in June 1978 to $10 billion). Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. In addition to the Organization of Petroleum Exporting Countries shown (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are ad­ individually, this group includes other members of OPEC (Algeria, Gabon. Iran, justed to exclude the claims on foreign branches held by a U.S. office or another Iraq. Kuwait. Libya. Nigeria, Qatar. Saudi Arabia, and United Arab Emirates) as foreign branch of the same banking institution. The data in this table combine well as Bahrain and Oman (not formally members of OPEC). foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims 4. Foreign branch claims only through December 1976. of U.S. offices in table 3.17 (excluding those held by agencies and branches of 5. Excludes Liberia. foreign banks and those constituting claims on own foreign branches). However, 6. Includes Canal Zone beginning December 1979. see also footnote 2. 7. Foreign branch claims only. 2. Beginning with data for June 1978. the claims of the U.S. offices 8. Includes New Zealand, Liberia, and international and regional organizations. in this table include only banks' own claims payable in dollars. For earlier dates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics □ June 1981 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1981 Country or area 1979 1980 Jan.- Apr. p Oct. Nov. Dec. Jan. Feb. Mar. Apr.P Holdings (end of period)1 1 Estimated total2.......................................... 51,344 57,418 56,558 57,222 57,418 58,453 60,277 61,995 62,364 2 Foreign countries2...................................... 45,915 52,831 52,081 52,872 52,831 53,919 55,655 56,840 57,357 3 Europe2........................................................ 24,824 24,337 24,786 24,711 24,337 25,176 25,466 25,235 24,883 4 Belgium-Luxembourg............................ 60 77 78 74 77 80 88 106 123 5 Germany2................................................ 14,056 12,335 12,823 12,758 12,335 12,791 12,915 12,340 11,925 6 Netherlands............................................ 1,466 1,884 1,658 1,777 1,884 1,954 1,944 1,965 1,950 7 Sweden.................................................... 647 595 607 614 595 555 535 566 567 8 Switzerland2............................................ 1,868 1,485 1,517 1,489 1,485 1,561 1,524 1,527 1,526 9 United Kingdom.................................... 6,236 7,183 7,541 7,414 7,183 7,438 7,745 7,892 7,862 10 Other Western Europe........................ 491 777 562 584 777 796 714 839 930 11 Eastern Europe...................................... 0 0 0 0 0 0 0 0 12 Canada....................................................... 232 449 503 532 449 458 490 478 464 13 Latin America and Caribbean................ 466 999 768 942 999 998 1,074 1,151 939 14 Venezuela................................................ 103 292 292 292 292 292 292 292 292 15 Other Latin America and Caribbean . 200 285 255 278 285 281 341 339 389 16 Netherlands Antilles.............................. 163 421 221 372 421 425 441 519 258 17 Asia.............................................................. 19,805 26,112 25,333 25,968 26,112 26,303 27,467 28,827 29,925 18 Japan........................................................ 11,175 9,479 9,503 9,547 9,479 9,519 9,543 9,543 9,566 19 Africa.......................................................... 591 920 685 715 920 970 1,139 1,140 1,140 20 All other...................................................... -3 14 5 4 14 14 18 9 7 21 Nonmonetary international and regional organizations...................................... 5,429 4,587 4,477 4,350 4,587 4,534 4,622 5,155 5,007 22 International.......................................... 5,388 4,548 4,430 4,302 4,548 4,505 4,586 5,113 4,995 23 Latin American regional...................... 37 36 44 44 36 26 36 36 6 Transactions (net purchases, or sales (-) during period) 24 Total2................................................................................ 6,397 6,075 4,946' 681 664 196 1,035 1,827 1,715 369 25 Foreign countries2.......................................................... 6,099 6,916 4,526' 903 791 -41 1,088 1,736 1,185 517 26 Official institutions.................................................... 1,697 3,840 3,851' 664 301 -336 865 1,404 1,084 498 27 Other foreign2............................................................ 4,403 3,076 675' 240 490 295 223 332 101 19 28 Nonmonetary international and regional organizations.......................................................... 301 -843 419' -222 -126 237 -53 91 529 -148 Memo: Oil-exporting countries 29 Middle East3.................................................................. -1,014 7,762 3,829' 990 561 358 300 1,139 1,322 1,068 30 Africa4.............................................................................. -100 328 220 68 29 205 51 169 0 0 1. Estimated official and private holdings of marketable U.S. Treasury securities 2. Beginning December 1978, includes U.S. Treasury notes publicly issued to with an original maturity of more than 1 year. Data are based on a benchmark private foreign residents denominated in foreign currencies. survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign United Arab Emirates (Trucial States). countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1980 1981 Assets 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. MayP 1 Deposits.......................................................................... 367 429 411 368 411 573 422 474 475 346 Assets held in custody 2 U.S. Treasury securities1.............................................. 117,126 95,075 102,417 102,786 102,417 104,490 106,389 111,859 113,746 109,742 3 Earmarked gold2............................................................ 15,463 15,169 14,965 14,968 14,965 14,893 14,892 14,883 14,886 14,875 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. Note. Excludes deposits and U.S. Treasury securities held for international and Treasury securities payable in dollars and in foreign currencies. regional organizations. Earmarked gold is gold held for foreign and international 2. The value of earmarked gold increased because of the changes in par value accounts and is not included in the gold stock of the United States. 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 A63 3.23 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1981 1980 1981 Transactions, and area or country 1979 1980 A Ja p n r. . P - Oct. Nov. Dec. Jan. Feb. Mar. Apr.P U.S. corporate securities Stocks 1 Foreign purchases.......................................................... 22,781 40,320 14,118 4,438 4,457 4,345 3,422 3,718 3,948 4,031 2 Foreign sales.................................................................. 21,123 34,962 11,711 3,920 3,588 3,701 2,798 2,312 3,313 3,288 3 Net purchases, or sales (-).......................................... 1,658 5,358 2,407 519 869 644 624 406 634 744 4 Foreign countries............................................................ 1,642 5,340 2,377 524 867 623 612 403 626 736 5 Europe............................................................................ 217 3,069 1,723 300 633 254 438 257 605 422 6 France .......................................................................... 122 482 339 53 109 60 62 41 110 126 7 Germany...................................................................... -221 186 89 35 121 8 24 18 31 15 8 Netherlands................................................................ -71 -328 54 -29 -58 -17 43 2 12 -2 9 Switzerland.................................................................. -519 308 296 83 265 -88 105 -24 138 78 10 United Kingdom........................................................ 964 2,503 902 172 251 300 178 220 308 197 11 Canada ............................................................................ 552 865 450 -66 263 247 26 91 103 230 12 Latin America and Caribbean.................................... -19 148 65 132 57 -8 101 -22 14 -27 13 Middle Easti.................................................................. 688 1,206 156 126 -109 177 63 74 -95 114 14 Other Asia...................................................................... 211 16 -14 33 18 -49 -14 -2 0 3 15 Africa.............................................................................. -14 -1 1 2 0 -2 2 0 -1 -1 16 Other countries.............................................................. 7 38 -4 -3 5 2 -5 7 0 -5 17 Nonmonetary international and regional organizations.......................................................... 17 18 30 -6 2 22 12 2 8 8 Bonds2 18 Foreign purchases.......................................................... 8,835 15,425 6,339 1,591 1,193 946 1,549 1,402 1,865 1,522 19 Foreign sales.................................................................. 7,602 9,976 3,545 739 902 826 817 863 1,093 773 20 Net purchases, or sales (-).......................................... 1,233 5,449 2,794 852 291 121 733 539 772 750 21 Foreign countries............................................................ 1,330 5,514 2,763 897 295 107 706 552 797 708 22 Europe............................................................................ 626 1,576 985 263 163 -26 214 311 132 328 23 France.......................................................................... 11 129 -21 2 12 12 4 -42 9 8 24 Germany...................................................................... 58 213 280 30 13 22 49 112 97 23 25 Netherlands................................................................ -202 -65 44 8 -7 17 6 12 14 13 26 Switzerland.................................................................. -118 54 54 1 8 14 22 12 4 17 27 United Kingdom........................................................ 814 1,257 539 228 166 -113 124 207 -22 231 28 Canada............................................................................ 80 135 35 9 21 -7 7 -2 19 12 29 Latin America and Caribbean.................................... 109 185 71 7 11 -5 -3 26 28 19 30 Middle East*.................................................................. 424 3,486 1,755 594 105 113 492 201 723 340 31 Other Asia...................................................................... 88 117 -79 24 -3 32 -1 17 -105 9 32 Africa.............................................................................. 1 5 0 0 0 0 0 0 0 0 33 Other countries.............................................................. 1 10 -4 0 -1 0 -4 0 0 0 34 Nonmonetary international and regional organizations.......................................................... -96 -65 31 -45 -4 14 27 -13 -25 42 Foreign securities 35 Stocks, net purchases, or sales (-)............................ -786 -2,084 -217 -341 129 -68 35 13 -187 -78 36 Foreign purchases...................................................... 4,615 7,885 3,017 795 927 721 696 709 763 849 37 Foreign sales.............................................................. 5,401 9,968 3,234 1,136 798 788 661 697 950 926 38 Bonds, net purchases, or sales (-)............................ -3,855 -846 -1,028 -206 92 274 -237 29 -141 -680 39 Foreign purchases...................................................... 12,672 17,069 5,302 1,651 1,254 1,786 1,142 1,296 1,686 1,177 40 Foreign sales.............................................................. 16,527 17,915 6,330 1,857 1,161 1,512 1,379 1,267 1,827 1,857 41 Net purchases, or sales (-), of stocks and bonds ... -4,641 -2,929 -1,245 -547 221 206 -202 42 -328 -757 42 Foreign countries............................................................ -3,891 -3,806 -1,274 -563 198 -177 -261 24 -340 -698 43 Europe............................................................................ -1,646 -957 -495 126 -30 -86 -116 80 -161 -298 44 Canada ............................................................................ -2,601 -1,948 -300 -651 329 24 -4 76 -101 -271 45 Latin America and Caribbean.................................... 347 126 154 -35 -24 -11 51 52 -68 119 46 Asia.................................................................................. 44 -1,131 -563 -16 -73 -84 -177 -169 9 -226 47 Africa.............................................................................. -61 24 -42 29 -1 -13 -10 -8 -17 -7 48 Other countries.............................................................. 25 80 -28 -16 -3 -7 — 4r -lr -2 -15 49 Nonmonetary international and regional organizations.......................................................... -750 876 28 15 23 383 59 17 12 -60 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, 2. Includes state and local government securities, and securities of U.S. gov- Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). ernment agencies and corporations. Also includes issues of new debt 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

A64 International Statistics □ June 1981 3.24 LIABILITIES TO UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1979 1980 Type, and area or country 1978 1979 June Sept. Dec. Mar. June Sept. 1Total.............................................................................................................. 14,869 16,940 15,510 15,700 16,940 17,352 18,446 18,454 2 Payable in dollars........................................................................................ 11,506 13,922 12,623 12,692 13,922 14,417 15,080 15,214 3Payable in foreign currencies2.................................................................. 3,363 3,018 2,888 3,008 3,018 2,936 3,366 3,239 By type 4Financial liabilities...................................................................................... 6,295 7,302 6,041 6,131 7,302 7,781 8,281 8,125 5 Payable in dollars.................................................................................... 3,831 5,092 3,867 3,877 5,092 5,597 5,725 5,707 6 Payable in foreign currencies................................................................ 2,464 2,210 2,173 2,254 2,210 2,184 2,556 2,418 7 Commercial liabilities................................................................................ 8,574 9,639 9,470 9,568 9,639 9,571 10,165 10,328 8 Trade payables........................................................................................ 4,008 4,380 4,302 4,051 4,380 4,138 4,265 4,369 9 Advance receipts and other liabilities.................................................. 4,566 5,258 5,168 5,518 5,258 5,433 5,899 5,960 10 Payable in dollars.................................................................................... 7,675 8,830 8,755 8,815 8,830 8,819 9,355 9,507 11 Payable in foreign currencies................................................................ 899 808 715 754 808 752 810 821 By area or country Financial liabilities 12 Europe...................................................................................................... 3,903 4,574 3,582 3,713 4,574 4,808 5,392 5,214 13 Belgium-Luxembourg........................................................................ 289 345 355 317 345 360 422 404 14 France.................................................................................................... 167 168 134 126 168 188 341 327 15 Germany.............................................................................................. 366 497 283 381 497 520 657 557 16 Netherlands.......................................................................................... 390 828 401 542 828 795 783 766 17 Switzerland.......................................................................................... 248 170 235 190 170 174 238 224 18 United Kingdom.................................................................................. 2,110 2,372 1,955 1,957 2,372 2,568 2,783 2,761 19 Canada...................................................................................................... 244 445 290 304 445 383 482 456 20 Latin America and Caribbean.............................................................. 1,357 1,483 1,395 1,347 1,483 1,764 1,633 1,718 21 Bahamas................................................................................................ 478 375 477 390 375 459 434 412 22 Bermuda.............................................................................................. 4 81 2 2 81 83 2 1 23 Brazil.................................................................................................... 10 18 19 14 18 22 25 20 24 British West Indies.............................................................................. 194 514 189 198 514 694 700 685 25 Mexico.................................................................................................. 102 121 131 122 121 101 101 108 26 Venezuela............................................................................................ 49 72 68 71 72 70 72 74 27 780 790 764 757 790 805 750 705 28 Japan .................................................................................................... 714 723 706 700 723 737 680 615 29 Middle East oil-exporting countries3.............................................. 32 31 25 19 31 26 31 37 30 Africa........................................................................................................ 5 4 6 5 4 11 10 11 31 Oil-exporting countries4.................................................................... 2 1 2 1 1 1 1 1 32 All other5.................................................................................................. 5 4 5 5 4 10 15 21 Commercial liabilities 33 Europe...................................................................................................... 3,033 3,621 3,303 3,393 3,621 3,682 4,008 4,066 34 Belgium-Luxembourg................................................................................ 75 137 81 103 137 117 132 109 35 France.................................................................................................... 321 467 353 394 467 503 485 501 36 Germany.............................................................................................. 529 534 471 539 534 533 714 693 37 Netherlands.......................................................................................... 246 227 230 206 227 288 245 276 38 Switzerland.......................................................................................... 302 310 439 348 310 382 462 452 39 United Kingdom.................................................................................. 824 1,073 997 1,015 1,073 994 1,120 1,033 40 Canada...................................................................................................... 667 868 663 717 868 720 591 590 41 Latin America.......................................................................................... 997 1,323 1,335 1,401 1,323 1,253 1,271 1,361 42 Bahamas................................................................................................ 25 69 65 89 69 4 26 8 43 Bermuda.............................................................................................. 97 32 82 48 32 47 107 114 44 Brazil.................................................................................................... 74 203 165 186 203 228 151 156 45 British West Indies.............................................................................. 53 21 121 21 21 20 37 12 46 Mexico.................................................................................................. 106 257 216 270 257 235 272 324 47 Venezuela............................................................................................ 303 301 323 359 301 211 210 293 48 2,932 2,865 3,034 2,996 2,865 2,912 3,053 2,909 49 Japan .................................................................................................... 448 488 516 517 488 578 411 502 50 Middle East oil-exporting countries3.............................................. 1,523 1,017 1,225 1,070 1,017 901 1,019 944 51 Africa........................................................................................................ 743 728 891 775 728 742 875 1,006 52 Oil-exporting countries4.................................................................... 312 384 410 370 384 382 498 633 53 All other5.................................................................................................. 203 233 243 287 233 263 367 396 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 1979 Bulletin, p. 550. United Arab Emirates (Trucial States). 2. Before December 1978, foreign currency data include only liabilities denom- 4. Comprises Algeria, Gabon, Libya, and Nigeria. inated in foreign currencies with an original maturity of less than one year. 5. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A65 3.25 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1979 1980 Type, and area or country 1978 1979 June Sept. Dec. Mar. June Sept. 1 Total.............................................................................................................. 27,864 30,899 30,318 30,949 30,899 31,984 31,894 31,458 2 Payable in dollars........................................................................................ 24,881 27,734 27,418 28,280 27,734 28,984 28,852 28,280 3 Payable in foreign currencies2.................................................................. 2,984 3,165 2,900 2,668 3,165 3,000 3,042 3,178 By type 4 Financial claims.......................................................................................... 16,528 18,139 19,321 19,176 18,139 19,260 18,543 18,164 5 Deposits.................................................................................................... 11,069 12,493 13,661 13,730 12,493 13,586 12,702 12,099 6 Payable in dollars................................................................................ 10,000 11,584 12,706 12,830 11,584 12,612 11,822 11,018 7 Payable in foreign currencies............................................................ 1,068 909 956 901 909 974 879 1,081 8 Other financial claims............................................................................ 5,459 5,646 5,660 5,446 5,646 5,673 5,841 6,065 9 Payable in dollars................................................................................ 3,874 3,803 4,079 4,030 3,803 4,055 4,103 4,395 10 Payable in foreign currencies............................................................ 1,584 1,843 1,581 1,416 1,843 1,619 1,737 1,670 11 Commercial claims...................................................................................... 11,337 12,760 10,997 11,773 12,760 12,724 13,352 13,294 12 Trade receivables.................................................................................... 10,778 12,072 10,368 11,061 12,072 12,079 12,656 12,605 13 Advance payments and other claims.................................................. 559 688 628 712 688 645 695 688 14 Payable in dollars.................................................................................... 11,006 12,347 10,633 11,421 12,347 12,317 12,926 12,867 15 Payable in foreign currencies................................................................ 331 413 363 352 413 407 425 427 By area or country Financial claims 16 Europe...................................................................................................... 5,218 6,129 5,640 6,562 6,129 5,840 5,835 5,576 17 Betgium-Luxembourg........................................................................ 48 32 54 33 32 19 23 14 18 France.................................................................................................... 178 177 183 191 177 290 307 381 19 Germany.............................................................................................. 510 409 363 393 409 300 190 168 20 Netherlands.......................................................................................... 103 53 62 51 53 39 37 30 21 Switzerland.......................................................................................... 98 73 81 85 73 89 96 41 22 United Kingdom.................................................................................. 4,023 5,064 4,650 5,522 5,064 4,790 4,855 4,546 23 Canada...................................................................................................... 4,482 4,812 5,146 4,767 4,812 4,882 4,778 4,798 24 Latin America and Caribbean.............................................................. 5,672 6,204 7,448 6,682 6,204 7,516 6,851 6,671 25 Bahamas................................................................................................ 2,959 2,684 3,648 3,284 2,684 3,450 3,007 2,757 26 Bermuda.............................................................................................. 80 30 57 31 30 34 25 65 27 Brazil.................................................................................................... 151 163 141 133 163 128 120 116 28 British West Indies.............................................................................. 1,288 2,001 2,407 1,838 2,001 2,591 2,393 2,283 29 Mexico.................................................................................................. 163 158 159 156 158 169 178 192 30 Venezuela............................................................................................ 157 143 155 139 143 134 139 128 31 Asia............................................................................................................ 920 697 800 818 697 713 758 792 32 Japan .................................................................................................... 305 190 217 222 190 226 253 269 33 Middle East oil-exporting countries3.............................................. 18 16 17 21 16 18 16 20 34 Africa........................................................................................................ 181 253 227 277 253 265 256 260 35 Oil-exporting countries4.................................................................... 10 49 23 41 49 40 35 29 36 All other5.................................................................................................. 55 44 61 69 44 43 65 68 Commercial claims 37 Europe...................................................................................................... 3,985 4,901 3,833 4,127 4,901 4,756 4,820 4,655 38 Belgium-Luxembourg........................................................................ 144 203 170 179 203 208 255 230 39 France.................................................................................................... 609 727 470 518 727 703 662 707 40 Germany.............................................................................................. 399 584 421 448 584 515 504 569 41 Netherlands.......................................................................................... 267 298 307 262 298 347 297 289 42 Switzerland.......................................................................................... 198 269 232 224 269 349 429 333 43 United Kingdom.................................................................................. 827 905 731 818 905 924 908 988 44 Canada...................................................................................................... 1,096 843 1,106 1,164 843 862 895 929 45 Latin America and Caribbean.............................................................. 2,547 2,855 2,410 2,595 2,855 2,992 3,281 3,375 46 Bahamas................................................................................................ 109 21 98 16 21 19 19 53 47 Bermuda.............................................................................................. 215 197 118 154 197 135 133 81 48 Brazil.................................................................................................... 629 647 503 568 647 656 697 710 49 British West Indies.............................................................................. 9 16 25 13 16 11 9 17 50 Mexico.................................................................................................. 506 700 588 648 700 835 921 981 51 Venezuela............................................................................................ 292 342 296 346 342 349 394 388 52 Asia............................................................................................................ 3,082 3,365 2,967 3,116 3,365 3,370 3,540 3,395 53 Japan .................................................................................................... 976 1,127 1,005 1,128 1,127 1,209 1,130 1,094 54 Middle East oil-exporting countries3.............................................. 717 766 685 701 766 718 829 837 55 Africa........................................................................................................ 447 556 487 549 556 518 567 669 56 Oil-exporting countries4.................................................................... 136 133 139 140 133 114 115 135 57 All other5.................................................................................................. 179 240 194 220 240 225 249 270 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 1979 Bulletin, p. 550. United Arab Emirates (Trucial States). 2. Prior to December 1978, foreign currency data include only liabilities denom- 4. Comprises Algeria, Gabon, Libya, and Nigeria. inated in foreign currencies with an original maturity of less than one year. 5. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics □ June 1981 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on May 31, 1981 Rate on May 31. 1981 Rate on May 31, 1981 Country Country Country Per­ Month Per­ Month Per­ Month cent effective cent effective cent effective Argentina 172.87 May 1981 France1 .................... 22.0 May 1981 Sweden .......... 12.0 Jan. 1981 Austria .. 6.75 Mar. 1980 Germany. Fed. Rep. of 7.5 May 1980 Switzerland..... 5.0 May 1981 Belgium.. 13.0 May 1981 Italy ........................ 19.0 Mar. 1981 United Kingdom 12.0 Mar. 1981 Brazil.... 40.0 June 1980 Japan...................... 6.25 Mar. 1981 Venezuela....... 10.0 July 1980 Canada .. 18.68 May 1981 Netherlands.............. 9.0 Mar. 1981 Denmark. 11.00 Oct. 1980 Norway.................... 9.0 Nov. 1979 1. As from February 1981, the rate at which the Bank of France discounts government securities for commercial banks or brokers. For countries with Treasury bills for 7 to 10 days. more than one rate applicable to such discounts or advances, the rate Note. Rates shown are mainly those at which the central bank either shown is the one at which it is understood the central bank transacts the discounts or makes advances against eligible commercial paper and/or largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1981 Country, or type Feb. Mar. Apr. May 1 Eurodollars...... 8.74 11.96 14.00 16.46 19.47 18.07 17.18 15.36 15.95 19.06 2 United Kingdom 9.18 13.60 16.59 15.84 14.64 14.20 13.12 12.58 12.26 12.34 3 Canada .......... 8.52 11.91 13.12 12.96 16.83 16.98 17.28 16.85 17.35 18.96 4 Germany........ 3.67 6.64 9.45 9.37 10.11 9.41 10.74 13.44 13.12 13.06 5 Switzerland...... 0.74 2.04 5.79 5.53 6.61 5.68 7.09 8.33 8.67 9.87 6 Netherlands .... 6.53 9.33 10.60 9.59 9.69 9.36 9.78 10.61 10.41 11.76 7 France ........... 8.10 9.44 12.18 11.26 11.52 11.38 11.87 12.56 13.00 15.75 8 Italy.............. 11.40 11.85 17.50 17.51 17.47 17.34 17.50 18.22 19.92 19.92 9 Belgium.......... 7.14 10.48 14.06 12.40 12.75 12.41 12.52 13.93 17.16 16.90 10 Japan............. 4.75 6.10 11.45 9.74 9.60 9.00 8.52 7.87 6.83 7.22 Note. Rates are for 3-month interbank loans except for the following: Canada, finance company paper; Belgium. 3-month Treasury bills: and Japan. Gensaki rate. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1980 1981 Country/currency 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Australia/dollar.................. 114.41 111.77 114.00 116.75 116.86 118.19 116.26 116.29 115.32 114.06 2 Austria/schilling.................. 6.8958 7.4799 7.7349 7.3433 7.1549 7.0297 6.6033 6.6959 6.5355 6.1722 3 Belgium/franc..................... 3.1809 3.4098 3.4247 3.2457 3.1543 3.0962 2.8972 2.8966 2.8220 2.6742 4 Canada/dollar..................... 87.729 85.386 85.530 84.286 83.560 83.974 83.442 83.936 83.966 83.265 5 Denmark/krone.................. 18.156 19.010 17.766 16.962 16.573 16.181 15.152 15.109 14.683 13.864 6 Finland/markka.................. 24.337 27.732 26.892 26.452 25.903 25.752 24.656 24.612 23.059 23.207 7 France/franc...................... 22.218 23.504 23.694 22.515 21.925 21.539 20.142 20.147 19.548 18.225 8 Germany/deutsche mark....... 49.867 54.561 55.089 52.113 50.769 49.771 46.757 47.498 46.219 43.601 9 India/rupee........................ 12.207 12.265 12.686 12.868 12.608 12.567 12.164 12.131 12.060 11.900 10 Ireland/pound.................... 191.84 204.65 205.77 194.59 189.01 185.54 173.31 173.25 168.46 159.49 11 Italv/lira........................... .11782 .12035 .11694 .11000 .10704 .10478 .09807 .09699 .09280 .08766 12 Japan/yen ......................... .47981 .45834 .44311 .46928 .47747 .49419 .48615 .47897 .46520 .45332 13 Malaysia/ringgit.................. 43.210 45.720 45.967 46.187 45.406 44.994 44.196 43.830 43.182 42.752 14 Mexico/peso...................... 4.3896 4.3826 4.3535 4.3166 4.3071 4.2792 4.2544 4.2238 4.1880 4.1500 15 Netherlands/guilder.............. 46.284 49.843 50.369 48.102 46.730 45.810 42.870 42.912 41.660 39.224 16 New Zealand/dollar............. 103.64 102.23 97.337 96.770 95.404 96.137 93.414 91.999 90.273 88.150 17 Norway/krone.................... 19.079 19.747 20.261 19.938 19.370 19.087 18.485 18.540 18.271 17.652 18 Portugal/escudo.................. 2.2782 2.0437 1.9980 1.9178 1.8773 1.8591 1.7722 1.7621 1.7178 1.6449 19 South Africa/rand............... 115.01 118.72 128.54 133.20 132.83 133.69 129.27 126.50 123.32 119.35 20 Spain/peseta...................... 1.3073 1.4896 1.3958 1.3085 1.2653 1.2409 1.1686 1.1672 1.1395 1.0953 21 Sri Lanka/rupee.................. 6.3834 6.4226 6.1947 5.8139 5.7379 5.9525 5.5975 5.5527 5.4185 5.4422 22 Sweden/krona.................... 22.139 23.323 23.647 23.240 22.722 22.490 21.734 21.704 21.309 20.450 23 Switzerland/franc................. 56.283 60.121 59.697 57.942 56.022 54.907 51.502 52.043 50.664 48.400 24 United Kingdom/pound........ 191.84 212.24 232.58 239.41 234.59 240.29 229.41 223.19 217.53 208.84 Memo: 25 United States/dollar1 ........... 92.39 88.09 87.39 89.31 90.99 91.38 96.02 96.22 98.80 103.59 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 page rencies of other G-10 countries plus Switzerland. March 1973 = 100. 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

A67 Guide to Tabular Presentation, Statistical Releases, and Special Tables 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 heading IPCs Individuals, partnerships, and corporations when more than half of figures in that column REITs Real estate investment trusts are changed.) RPs Repurchase agreements Amounts insignificant in terms of the last decimal SMSAs Standard metropolitan statistical areas place shown in the table (for example, less thati Cell not applicable 500,000 when the smallest unit given is millions) General Information Minus signs are used to indicate (1) a decrease, (2) a negative gations of the Treasury. “State and local government” also figure, or (3) an outflow. includes municipalities, special districts, and other political “U.S. government securities” may include guaranteed is­ subdivisions. sues of U.S. government agencies (the flow of funds figures In some of the tables details do not add to totals because of also include not fully guaranteed issues) as well as direct obli­ rounding. Statistical Releases List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases ................................................................. December 1980 A80 Special Tables Published Irregularly, with Latest Bulletin Reference Commercial bank assets and liabilities, call dates, December 31, 1978, to March 31, 1980 October 1980 A71 Commercial bank assets and liabilities, June 30, 1980............................................................ December 1980 A68 Commercial bank assets and liabilities, September 30, 1980.................................................. February 1981 A68 Commercial bank assets and liabilities, December 31, 1980 .................................................. April 1981 A72 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1980. June 1981 A68 Special tables begin on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables □ June 1981 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, Dec. 31, 19801 Millions of dollars All states2 New York Cali­ Other states2 Item fornia, Illinois, Total Branches Agencies Branches Agencies total3 branches Branches Agencies 1 Total assets4.......................................................................... 147,966 89,878 58,088 78,116 24,765 30,995 6,733 5,003 2,354 2 Cash and due from depository institutions...................... 19,562 15,253 4,309 14,243 3,978 270 881 125 65 3 Currency and coin (U.S. and foreign)........................ 16 13 3 11 1 1 1 2 0 4 Balances with Federal Reserve Banks........................ 200 167 32 150 22 8 9 8 3 5 Balances with other central banks................................ 0 0 0 0 0 0 0 0 0 6 Demand balances with commercial banks in United States.......................................................................... 8,550 5,666 2,884 5,560 2,752 113 65 41 20 7 All other balances with depository institutions in United States and with banks in foreign countries.................................................................... 10,033 8,884 1,149 8,005 965 145 803 73 42 8 Time and savings balances with commercial banks in United States.................................................... 4,668 4,053 615 3,830 541 69 147 73 8 9 Balances with other depository institutions in United States........................................................ 606 601 5 601 5 0 0 0 0 10 Balances with banks in foreign countries................ 4,759 4,230 529 3,574 419 76 656 0 34 11 Foreign branches of U.S. banks............................ 1,196 954 242 794 209 6 160 0 27 12 Other banks in foreign countries.......................... 3,563 3,276 287 2,780 210 69 496 0 7 13 Cash items in process of collection.............................. 762 522 241 517 238 3 3 2 0 14 Total securities, loans, and lease financing receivables.. 94,837 61,761 33,076 53,137 15,511 15,396 5,375 3,234 2,184 15 Total securities, book value.............................................. 3,477 2,077 1,400 1,805 1,299 101 149 123 0 16 U.S. Treasury.................................................................. 2,277 1,317 960 1,146 907 54 52 118 0 17 Obligations of other U.S. government agencies and corporations.............................................................. 336 100 235 92 219 17 6 2 0 18 Obligations of states and political subdivisions in United States............................................................ 177 175 2 150 1 2 23 2 0 19 Other bonds, notes, debentures and corporate stock 687 485 203 416 174 29 68 0 0 20 Federal funds sold and securities purchased under agreements to resell.................................................... 6,677 4,166 2,511 3,913 1,944 559 211 41 8 By holder 21 Commercial banks in United States............................ 6,269 3,939 2,330 3,725 1,764 559 172 41 8 22 Others................................................................................ 408 228 180 188 180 0 40 0 0 By type 23 One-day maturity or continuing contract.................... 6,600 4,115 2,484 3,879 1,917 559 195 41 8 24 Securities purchased under agreements to resell... 97 55 42 33 23 19 22 0 0 25 Other.............................................................................. 6,503 4,060 2,442 3,846 1,895 539 173 41 8 26 Other securities purchased under agreements to resell.......................................................................... 77 51 27 35 27 0 16 0 0 27 Total loans, gross................................................................ 91,488 59,764 31,724 51,406 14,228 15,327 5,230 3,113 2,185 28 Less: Unearned income on loans...................................... 130 81 49 75 16 32 4 1 1 29 Equals: Loans, net............................................................ 91,358 59,683 31,676 51,331 14,212 15,295 5,225 3,111 2,184 Total loans, gross, by category 30 Real estate loans.................................................................. 2,219 262 1,958 114 862 783 18 120 323 31 Loans to financial institutions............................................ 31,737 23,957 7,780 22,246 3,330 4,366 1,574 137 84 32 Commercial banks in United States............................ 17,015 12,800 4,216 11,684 1,444 2,762 991 125 10 33 U.S. branches and agencies of other foreign banks 16,084 12,043 4,041 11,017 1,390 2,651 955 71 0 34 Other commercial banks............................................ 932 757 175 666 54 111 36 54 10 35 Banks in foreign countries.............................................. 13,825 10,522 3,303 10,037 1,702 1,552 479 6 49 36 Foreign branches of U.S. banks................................ 1,557 971 586 $28 357 230 42 0 0 37 Other.............................................................................. 12,268 9,551 2,717 9,108 1,345 1,323 437 6 49 38 Other financial institutions............................................ 897 636 261 525 184 52 104 6 25 39 Loans for purchasing or carrying securities.................... 822 457 364 432 324 41 25 0 0 40 Commercial and industrial loans...................................... 45,767 27,202 18,565 21,030 7,710 9,153 3,368 2,801 1,706 41 U.S. addressees (domicile)............................................ 29,227 16,855 12,372 12,021 4,655 6,230 2,992 1,838 1,491 42 Non-U.S. addressees (domicile).................................... 16,540 10,347 6,193 9,008 3,056 2,922 376 963 215 43 Loans to individuals for household, family, and other personal expenditures.................................................. 134 83 51 53 23 29 8 20 1 44 AH other loans...................................................................... 10,809 7,803 3,006 7,531 1,979 956 237 34 71 45 Loans to foreign governments and official institutions................................................................ 8,767 5,968 2,799 5,730 1,810 920 218 19 70 46 Other.................................................................................. 2,042 1,835 207 1,801 169 36 19 15 1 47 Lease financing receivables................................................ 1 1 0 1 0 0 0 0 0 48 All other assets.................................................................... 26,890 8,698 18,192 6,823 3,332 14,770 266 1,603 97 49 Customers’ liability on acceptances outstanding........ 7,827 4,085 3,742 3,955 2,767 950 57 74 25 50 U.S. addressees (domicile)........................................ 3,909 2,210 1,699 2,162 898 788 41 6 14 51 Non-U.S. addressees (domicile)................................ 3,918 1,875 2,043 1,793 1,869 162 16 67 12 52 Net due from related banking institutions5................ 14,856 1,655 13,201 185 10 13,167 0 1,471 24 53 Other.................................................................................. 4,207 2,958 1,250 2,684 555 653 209 58 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A69 4.30 Continued Item Total A B l r l a s n t c a h te e s s 2 Agencies Branc N he e s w Y A or g k encies f t o C o r t a n a l i i l a ­ 3 , b I r l a li n n c o h is e , s Bran O ch th e e s r st A at g e e s n 2 cies 54 Total liabilities4.................................................................... 147,966 89,878 58,088 78,116 24,765 30,995 6,733 5,003 2,354 55 Total deposits and credit balances.................................... 43,128 38,729 4,398 34,700 3,448 850 983 3,039 107 56 Individuals, partnerships, and corporations................ 24,067 23,269 798 19,592 279 444 747 2,925 81 57 U.S. addressees (domicile)........................................ 21,384 21,220 164 17,647 95 57 693 2,874 19 58 Non-U.S. addressees (domicile)................................ 2,683 2,049 634 1,945 184 387 54 51 62 59 U.S. government, states, and political subdivisions in United States........................................................ 95 95 0 33 0 0 2 60 0 60 All other............................................................................ 18,971 15,370 3,600 15,076 3,169 406 235 60 26 61 Foreign governments and official institutions........ 3,241 2,910 332 2,769 72 259 128 13 0 62 Commercial banks in United States........................ 6,374 5,597 777 5,548 741 23 40 9 14 63 U.S. branches and agencies of other foreign banks.................................................................. 1,268 1,227 42 1,201 5 22 26 0 14 64 Other commercial banks in United States.......... 5,106 4,370 736 4,348 735 0 13 9 0 65 Banks in foreign countries.......................................... 2,965 2,519 446 2,497 368 72 13 9 6 66 Foreign branches of U.S. banks............................ 50 49 1 47 0 1 0 2 0 67 Other banks in foreign countries.......................... 2,915 2,470 445 2,450 368 71 13 7 6 68 Certified and officers’ checks, travelers checks, and letters of credit sold for cash...................... 6,390 4,344 2,045 4,262 1,987 53 54 28 6 69 Demand deposits.................................................................. 12,466 10,375 2,091 10,087 1,987 100 152 135 6 70 Individuals, partnerships, and corporations................ 1,418 1,390 28 1,195 0 30 91 102 0 71 U.S. addressees (domicile)........................................ 862 859 3 680 0 5 85 92 0 72 Non-U.S. addressees (domicile)................................ 556 531 25 515 0 25 6 10 0 73 U.S. government, states, and political subdivisions in United States........................................................ 16 16 0 15 0 0 0 0 0 74 All other............................................................................ 11,032 8,970 2,062 8,877 1,987 70 61 32 6 75 Foreign governments and official institutions........ 643 632 11 628 0 10 2 3 0 76 Commercial banks in United States........................ 3,029 3,029 0 3,027 0 0 1 1 0 77 U.S. branches and agencies of other foreign banks.................................................................. 52 52 0 52 0 0 0 0 0 78 Other commercial banks in United States.......... 2,977 2,977 0 2,976 0 0 1 1 0 79 Banks in foreign countries.......................................... 970 964 6 960 0 6 4 0 0 80 Certified and officers’ checks, travelers checks, and letters of credit sold for cash...................... 6,390 4,344 2,045 4,262 1,987 53 54 28 6 81 Time deposits........................................................................ 28,697 28,101 596 24,412 0 599 812 2,874 0 82 Individual, partnerships, and corporations.................. 21,965 21,627 338 18,196 0 341 637 2,792 0 83 U.S. addressees (domicile)........................................ 20,172 20,172 0 16,826 0 2 591 2,753 0 84 Non-U.S. addressees (domicile)................................ 1,793 1,455 339 1,371 0 338 46 38 0 85 U.S. government, states, and political subdivisions in United States........................................................ 79 79 0 18 0 0 1 60 0 86 All other............................................................................ 6,654 6,395 259 6,198 0 258 174 22 0 87 Foreign governments and official institutions........ 2,470 2,277 193 2,141 0 193 126 10 0 88 Commercial banks in United States........................ 2,563 2,563 0 2,521 0 0 39 4 0 89 U.S. branches and agencies of other foreign banks.................................................................. 1,175 1,175 0 1,149 0 0 26 0 0 90 Other commercial banks in United States.......... 1,388 1,388 0 1,372 0 0 12 4 0 91 Banks in foreign countries.......................................... 1,620 1,555 65 1,537 0 65 10 9 0 92 Savings deposits.................................................................... 276 253 23 202 0 25 20 30 0 93 Individuals, partnerships, and corporations................ 276 252 23 201 0 25 20 30 0 94 U.S. addressees (domicile)........................................ 189 189 0 142 0 2 17 28 0 95 Non-U.S. addressees (domicile)................................ 87 64 23 59 0 24 2 2 0 % U.S. government, states, and political subdivisions in United States........................................................ 0 0 0 0 0 0 0 0 0 97 All other............................................................................ 0 0 0 0 0 0 0 0 0 98Credit balances.................................................................... 1,688 1 1,687 0 1,461 126 0 1 100 99 Individuals, partnerships, and corporations................ 409 1 408 0 279 48 0 1 82 100 U.S. addressees (domicile)........................................ 162 1 161 0 95 48 0 1 19 101 Non-U.S. addressees (domicile)................................ 247 0 247 0 184 0 0 0 62 102 U.S. government, states, and political subdivisions in United States........................................................ 0 0 0 0 0 0 0 0 0 103 All other............................................................................ 1,279 0 1,279 0 1,182 78 0 0 19 104 Foreign governments and official institutions........ 128 0 128 0 72 56 0 0 0 105 Commercial banks in United States........................ 777 0 777 0 741 22 0 0 14 106 U.S. branches and agencies of other foreign banks.................................................................. 42 0 42 0 5 22 0 0 14 107 Other commercial banks in United States.......... 736 0 736 0 735 0 0 0 0 108 Banks in foreign countries.......................................... 375 0 375 0 368 0 0 0 6 For notes see page A71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables □ June 1981 4.30 Continued Item All states2 New York fo C r a n l i i a ­ , Illinois, Other states2 Total Branches Agencies Branches Agencies total3 branches Branches Agencies 109 Federal funds purchased and sold under agreement to repurchase.................................................................... 10,178 5,385 4,793 4,654 1,511 3,096 622 110 186 By holder 110 Commercial banks in United States............................ 8,893 4,593 4,300 3,876 1,213 3,024 607 110 64 111 Others................................................................................ 1,285 792 493 111 298 72 15 0 122 By type 112 One*day maturity or continuing contract.................... 9,485 4,720 4,765 4,001 1,482 3,096 610 110 186 113 Securities sold under agreements to repurchase ... 197 172 25 166 15 11 0 5 0 114 Other.............................................................................. 9,288 4,549 4,739 3,834 1,468 3,085 610 105 186 115 Other securities sold under agreements to repurchase................................................................ 693 665 29 653 29 0 12 0 0 116 Other liabilities for borrowed money.............................. 43,459 15,691 27,768 13,460 5,487 22,211 1,658 573 70 117 Owed to banks................................................................ 40,084 13,444 26,640 11,386 5,246 21,330 1,603 455 64 118 U.S. addressees (domicile)........................................ 34,008 8,773 25,234 7,500 4,542 20,633 820 452 59 119 Non-U.S. addressees (domicile)................................ 6,076 4,671 1,406 3,885 703 697 783 3 5 120 Owed to others................................................................ 3,380 2,252 1,128 2,075 241 881 56 122 6 121 U.S. addressees (domicile)........................................ 2,478 1,602 877 1,471 52 824 25 106 0 122 Non-U.S. addressees (domicile)................................ 902 651 251 603 189 56 31 16 6 123 All other liabilities.............................................................. 51,196 30,067 21,129 25,303 14,319 4,838 3,469 1,276 1,991 124 Acceptances executed and outstanding........................ 8,649 4,289 4,360 4,152 2,850 1,483 64 72 27 125 Net due to related banking institutions5...................... 39,012 23,080 15,932 18,707 11,065 2,946 3,207 1,147 1,941 126 Other.................................................................................. 3,536 2,699 837 2,443 405 409 198 57 23 Memo 127 Time deposits of $100,000 or more.................................. 27,824 27,357 467 23,908 0 469 612 2,836 0 128 Certificates of deposit (CDs) in denominations of $100,000 or more.................................................... 22,261 21,874 387 18,669 0 389 524 2,679 0 129 Other.................................................................................. 5,563 5,483 79 5,240 0 79 87 157 0 130 Savings deposits authorized for automatic transfer and now accounts................................................................ 14 10 4 5 0 4 1 3 0 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 99 93 6 55 0 5 15 23 0 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months.................................................. 1,235 1,154 82 999 0 82 14 141 0 133 Acceptances refinanced with a U.S.-chartered bank ... 1,943 1,175 769 1,016 451 318 0 159 0 134 Statutory or regulatory asset pledge requirement.......... 59,809 47,853 11,956 42,548 11,911 46 5,192 112 0 135 Statutory or regulatory asset maintenance requirement 7,094 6,770 324 4,480 144 0 207 2,083 179 136 Commercial letters of credit.............................................. 8,324 4,713 3,611 4,334 1,192 2,369 214 164 52 137 Standby letters of credit, total.......................................... 4,529 3,367 1,163 2,917 514 514 267 182 135 138 U.S. addressees (domicile)............................................ 3,364 2,544 820 2,315 325 435 141 88 60 139 Non-U.S. addressees (domicile).................................... 1,165 822 343 602 189 79 126 94 75 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit)............................................................................ 886 854 32 843 5 27 8 2 0 141 Holdings of commercial paper included in total gross loans .............................................................................. 1,187 1,029 158 1,019 83 76 9 0 0 142 Holdings of acceptances included in total commercial ana industrial loans...................................................... 4,775 2,450 2,324 2,384 1,097 1,220 32 35 7 143 Immediately available funds with a maturity greater than one day (included in other liabilities for bor­ rowed money).............................................................. 22,901 7,185 15,716 5,991 2,659 13,031 929 264 26 144 Gross due from related banking institutions5................ 54,886 23,042 31,844 20,060 14,236 17,446 945 2,038 162 145 U.S. addressees (domicile)............................................ 20,233 5,420 14,813 3,254 2,017 12,747 248 1,918 49 146 Branches and agencies in United States.................. 19,941 5,329 14,612 3,177 1,967 12,596 235 1,918 48 147 In the same state as reporter................................ 500 121 378 103 0 371 0 19 7 148 In other states.......................................................... 19,442 5,207 14,234 3,074 1,967 12,226 235 1,899 41 149 U.S. banking subsidiaries6........................................ 292 91 201 77 50 151 14 0 0 150 Non-U.S. addressees (domicile).................................... 34,653 17,622 17,031 16,806 12,219 4,699 696 120 113 151 Head office and non-U.S. branches and agencies.. 33,333 16,400 16,933 15,623 12,139 4,686 659 118 108 152 Non-U.S. banking companies and offices................ 1,320 1,222 98 1,182 80 13 38 1 5 153 Gross due to related banking institutions5...................... 79,042 44,467 34,575 38,582 25,290 7,225 4,152 1,714 2,079 154 U.S. addressees (domicile)............................................ 21,154 10,259 10,895 6,914 6,794 3,274 2,256 1,089 827 155 Branches and agencies in United States.................. 20,942 10,180 10,762 6,847 6,700 3,245 2,246 1,087 816 156 In the same state as reporter................................ 547 173 375 157 0 374 0 16 0 157 In other states.......................................................... 20,394 10,007 10,387 6,690 6,700 2,871 2,246 1,071 816 158 U.S. banking subsidiaries6........................................ 213 80 133 67 94 29 10 2 11 159 Non-U.S. addressees (domicile).................................... 57,887 34,208 23,680 31,667 18,496 3,951 1,896 625 1,252 160 Head office and non-U.S. branches and agencies.. 55,604 32,233 23,371 29,771 18,218 3,928 1,828 614 1,245 161 Non-U.S. banking companies and offices................ 2,283 1,975 309 1,896 278 23 68 10 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A ll 4.30 Continued Item Total A B l r l a s n t c a h te e s s 2 Agencies Branc N he e s w Y A or g k encies f t o C o r a t n a l i i l a ­ 3 , b I r l a li n n c o h is e , s Bran O ch th e e s r st A at g e e s n 3 cies Average for 30 calendar days (or calendar month) ending with report date 162 Total assets............................................................................ 148,824 87,688 61,136 75,941 29,576 29,466 6,815 4,904 2,122 163 Cash and due from depository institutions...................... 16,227 12,776 3,451 11,782 3,084 315 884 106 56 164 Federal funds sold and securities purchased under agreements to resell.................................................... 6,765 4,036 2,729 3,899 2,269 449 120 18 11 165 Total loans............................................................................ 87,083 57,225 29,859 49,198 13,700 14,379 5,125 2,891 1,790 166 Loans to banks in foreign countries................................ 13,040 9,936 3,104 9,405 1,711 1,345 524 6 48 167 Total deposits and credit balances.................................... 39,423 35,923 3,500 32,242 2,594 806 774 2,901 106 168 Time CDs in denominations of $100,000 or more........ 22,700 22,221 479 19,141 71 377 387 2,692 31 169 Federal funds purchased and securities sold under agreements to repurchase.......................................... 8,441 5,139 3,302 4,437 1,250 1,911 617 85 141 170 Other liabilities for borrowed money.............................. 41,965 15,664 26,301 13,398 4,823 21,406 1,687 579 72 171 Number of reports filed7.................................................... 322 145 177 85 61 91 32 26 27 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, able through the G.ll statistical release, gross balances were included in total assets “Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks.” and total liabilities. Therefore, total asset and total liability figures in this table are This form was first used for reporting data as of June 30, 1980. From November not comparable to those in the G.ll tables. 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 5. “Related banking institutions” includes the foreign head office and other U.S. monthly FR 886a report. Aggregate data from that report were available through and foreign branches and agencies of the bank, the bank’s parent holding company, the Federal Reserve statistical release G.ll, last issued on July 10, 1980. Data in and majority-owned banking subsidiaries of the bank and of its parent holding this table and in the G.ll tables are not strictly comparable because of differences company (including subsidiaries owned both directly and indirectly). Gross amounts in reporting panels and in definitions of balance sheet items. due from and due to related banking institutions are shown as memo items. 2. Includes the District of Columbia. 6. “U.S. banking subsidiaries” refers to U.S. banking subsidiaries majority- 3. Agencies account for virtually all of the assets and liabilities reported in owned by the foreign bank and by related foreign banks and includes U.S. offices California. of U.S.-chartered commercial banks, of Edge Act and Agreement corporations, 4. Total assets and total liabilities include net balances, if any, due from or due and of New York State (Article XII) investment companies. to related banking institutions in the United States and in foreign countries (see 7. In some cases two or more offices of a foreign bank within the same met­ footnote 5). On the former monthly branch and agency report, avail­ ropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Board of Governors Paul A. V olcker, Chairman Henry C. W allich Frederick H. Schultz, Vice Chairman J. C harles Partee Office of Board Members Office of Staff Director for Monetary and Financial Policy Joseph R. Coyne, Assistant to the Board Donald J. Winn, Assistant to the Board Stephen H. Axilrod, Staff Director Anthony F. Cole, Special Assistant to the Board Edward C. Ettin, Deputy Staff Director William R. Maloni, Special Assistant to the Board Murray Altmann, Assistant to the Board Frank O’Brien, Jr., Special Assistant to the Board Peter M. Keir, Assistant to the Board Joseph S. Sims, Special Assistant to the Board Stanley J. Sigel, Assistant to the Board James L. Stull, Manager, Operations Review Program Normand R. V. Bernard, Special Assistant to the Board Legal Division Division of Research and Statistics Robert E. Mannion, Deputy General Counsel James L. Kichline, Director J. Virgil Mattingly, Jr., Associate General Counsel Joseph S. Zeisel, Deputy Director Gilbert T. Schwartz, Associate General Counsel Michael J. Prell, Associate Director Michael E. Bleier, Assistant General Counsel Robert A. Eisenbeis, Senior Deputy Associate Director Cornelius K. Hurley, Jr., Assistant General Counsel Jared J. Enzler, Senior Deputy Associate Director Maryellen A- Brown, Assistant to the General Counsel Eleanor J. Stockwell, Senior Deputy Associate Director Charles R. McNeill, Assistant to the General Counsel Donald L. Kohn, Deputy Associate Director J. Cortland G. Peret, Deputy Associate Director Office of the Secretary Helmut F. Wendel, Deputy Associate Director Martha Bethea, Assistant Director J B a a m r e b s a r M a c R A . f L ee o , w A r s e si y s , t a A n s t s i S s e ta c n re t ta S r e y c retary J R o o e b e M r . t C M l . e a F v is e h r e , r A , s A si s s s t i a s n ta t n D t i D re i c r t e o c r tor *D. Michael Manies, Assistant Secretary D La a w vi r d e n E c . e L i S n l d if s m ey a , n A , s A s s is s t i a st n a t n D t i D re ir c e to c r tor Frederick M. Struble, Assistant Director Division of Consumer Stephen P. Taylor, Assistant Director Levon H. Garabedian, Assistant Director (Administration) and Community Affairs Janet O. Hart, Director Division of International Finance Griffith L. Garwood, Deputy Director Jerauld C. Kluckman, Associate Director Edwin M. Truman, Director Glenn E. Loney, Assistant Director Robert F. Gemmill, Associate Director Dolores S. Smith, Assistant Director Charles J. Siegman, Associate Director Samuel Pizer, Staff Adviser Dale W. Henderson, Assistant Director Division of Banking Larry J. Promisel, Assistant Director Supervision and Regulation Ralph W. Smith, Jr., Assistant Director John E. Ryan, Director Frederick R. Dahl, Associate Director William Taylor, Associate Director William W. Wiles, Associate Director Jack M. Egertson, Assistant Director Robert A. Jacobsen, Assistant Director Don E. Kline, Assistant Director Robert S. Plotkin, Assistant Director Thomas A. Sidman, Assistant Director Samuel H. Talley, Assistant Director Laura M. Homer, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 and Official Staff Nancy H. T eeters L yle E. G ram ley Em m ett J. Rice Office of Office of Staff Director for Staff Director for Management Federal Reserve Bank Activities John M. Denkler, Staff Director Theodore E. Allison, Staff Director Edward T. Mulrenin, Assistant Staff Director Harry A. Guinter, Assistant Director for Contingency Joseph W. Daniels, Sr. , Director of Equal Employment Op- Planning portunity Division of Federal Reserve Division of Data Processing Bank Operations Charles L. Hampton, Director Clyde H. Farnsworth, Jr., Director Bruce M. Beardsley, Deputy Director Lorin S. Meeder, Associate Director Uyless D. Black, Associate Director Raymond L. Teed, Associate Director Glenn L. Cummins, Assistant Director Walter Althausen, Assistant Director Neal H. Hillerman, Assistant Director Charles W. Bennett, Assistant Director C. William Schleicher, Jr., Assistant Director Richard B. Green, Assistant Director Robert J. Zemel, Assistant Director Elliott C. McEntee, Assistant Director David L. Robinson, Assistant Director P. D. Ring, Adviser Division of Personnel David L. Shannon, Director John R. Weis, Assistant Director Charles W. Wood, Assistant Director Office of the Controller John Kakalec, Controller George E. Livingston, Assistant Controller Division of Support Services Donald E. Anderson, Director Walter W. Kreimann, Associate Director Robert E. Frazier, Assistant Director *On loan from the Federal Reserve Bank of Kansas City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin □ June 1981 FOM C and Advisory Councils Federal Open Market Committee Paul A. Volcker, Chairman Anthony M. Solomon, Vice Chairman Edward G. Boehne Lyle E. Gramley Frederick H. Schultz Robert H. Boykin J. Charles Partee Nancy H.Teeters E. Gerald Corrigan Emmett J. Rice Henry C. Wallich Stephen H. Axilrod, Staff Director John P. Danforth, Associate Economist Murray Altmann, Secretary Richard G. Davis, Associate Economist Normand R. V. Bernard, Assistant Secretary Edward C. Ettin, Associate Economist Nancy M. Steele, Deputy Assistant Secretary Peter M. Keir, Associate Economist James H. Oltman, Deputy General Counsel Donald J. Mullineaux, Associate Economist Robert E. Mannion, Assistant General Counsel Michael J. Prell, Associate Economist James L. Kichline, Economist Karl L. Scheld, Associate Economist Alan R. Holmes, Adviser for Market Operations Edwin M. Truman, Associate Economist Joseph E. Burns, Associate Economist Joseph S. Zeisel, Associate Economist Peter D. Sternlight, Manager for Domestic Operations, System Open Market Account Scott E. Pardee, Manager for Foreign Operations, System Open Market Account Federal Advisory Council Merle E. Gilliand, Fourth District, President Chauncey E. Schmidt, Twelfth District, Vice President William S. Edgerly, First District Robert M. Surdam, Seventh District Donald C. Platten, Second District Ronald Terry, Eighth District John H. Walther, Third District Clarence G. Frame, Ninth District J. Owen Cole, Fifth District Gordon E. Wells, Tenth District Robert Strickland, Sixth District T. C. Frost, Jr., Eleventh District Herbert V. Prochnow, Secretary William J. Korsvik, Associate Secretary Consumer Advisory Council Ralph J. Rohner, Washington D.C., Chairman Charlotte H. Scott, Charlottesville, Virginia, Vice Chairman Arthur F. Bouton, Little Rock, Arkansas F. Thomas Juster, Ann Arbor, Michigan Julia H. Boyd, Alexandria, Virginia Richard F. Kerr, Cincinnati, Ohio Ellen Broadman, Washington, D.C. Harvey M. Kuhnley, Minneapolis, Minnesota James L. Brown, Milwaukee, Wisconsin The Rev. Robert J. McEwen, S.J., Chestnut Hill, Mark E. Budnitz, Atlanta, Georgia Massachusetts Joseph N. Cugini, Westerly, Rhode Island Stan L. Mularz, Chicago, Illinois Richard S. D’Agostino, Philadelphia, Pennsylvania William J. O’Connor, Buffalo, New York Susan Pierson De Witt, Springfield, Illinois Margaret Reilly-Petrone, Upper Montclair, New Jersey Joanne S. Faulkner, New Haven, Connecticut Rene Reixach, Rochester, New York Luther Gatling, New York, New York Florence M. Rice, New York, New York vernard W. Henley, Richmond, Virginia Henry B. Schechter, Washington, D.C. Juan Jesus Hinojosa, McAllen, Texas Peter D. Schellie, Washington, D.C. Shirley T. Hosoi, Los Angeles, California Nancy Z. Spillman, Los Angeles, California George S. Irvin, Denver, Colorado Richard A. Van Winkle, Salt Lake City, Utah Mary W. Walker, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 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 P. Henderson Frank E. Morris Thomas I. Atkins James A. McIntosh NEW YORK* ............ .10045 Robert H. Knight, Esq. Anthony M. Solomon Boris Yavitz Thomas M. Timlen Buffalo........................14240 Frederick D. Berkeley, III John T. Keane PHILADELPHIA 19105 John W. Eckman Edward G. Boehne Jean A. Crockett Richard L. Smoot CLEVELAND* ..44101 J. L. Jackson Willis J. Winn William H. Knoell Walter H. MacDonald Cincinnati...................45201 Martin B. Friedman Robert E. Showalter Pittsburgh...................15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* ..............23219 Maceo A. Sloan Robert P. Black Steven Muller Jimmie R. Monhollon Baltimore...................21203 Joseph H. McLain Robert D. McTeer, Jr. Charlotte ...................28230 Naomi G. Albanese Stuart P. Fishbume Culpeper Communications and Records Center 22701 Albert D. Tinkelenberg ATLANTA ................. 30301 William A. Fickling, Jr. William F. Ford John H. Weitnauer, Jr. Robert P. Forrestal Birmingham ............ 35202 Louis J. Willie Hiram J. Honea Jacksonville ............ ,32231 Jerome P. Keuper Charles D. East Miami ........................33152 Roy W. Vandegrift, Jr. F. J. Craven, Jr. Nashville ...................37203 John C. Bolinger, Jr. Jeffrey J. Wells New Orleans............ 70161 Horatio C. Thompson James D. Hawkins CHICAGO*................. 60690 John Sagan Vacancy Stanton R. Cook Daniel M. Doyle Detroit......................,,48231 Herbert H. Dow William C. Conrad ST. LOUIS .................,.63166 Armand C. Stalnaker Lawrence K. Roos William B. Walton Donald W. Moriarty, Jr. Little Rock.............. 72203 E. Ray Kemp, Jr. John F. Breen Louisville................. 40232 Sister Eileen M. Egan Donald L. Henry Memphis ...................38101 Patricia W. Shaw Robert E. Matthews MINNEAPOLIS........ 55480 Stephen F. Keating E. Gerald Corrigan William G. Phillips Thomas E. Gainor Helena...................... 59601 Norris E. Hanford Betty J. Lindstrom KANSAS CITY ,.64198 Paul H. Henson Roger Guffey Doris M. Drury Henry R. Czerwinski Denver....................... 80217 Caleb B. Hurtt Wayne W. Martin Oklahoma City..........,.73125 Christine H. Anthony William G. Evans Omaha....................... 68102 Robert G. Lueder Robert D. Hamilton DALLAS .................... .75222 Gerald D. Hines Robert H. Boykin John V. James William H. Wallace El Paso....................... 79999 Josefina A. Salas-Porras Joel L. Koonce, Jr. Houston.................... 77001 Jerome L. Howard J. Z. Rowe San Antonio ............. 78295 Lawrence L. Crum Thomas H. Robertson SAN FRANCISCO 94120 Cornell C. Maier John J. Balles Caroline L. Ahmanson John B. Williams Los Angeles ..............90051 Harvey A. Proctor Richard C. Dunn Portland.................... 97208 John C. Hampton Angelo S. Carella Salt Lake City.......... 84130 Wendell J. Ashton A. Grant Holman Seattle....................... 98124 George H. Weyerhaeuser 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

A76 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, payable to the order of the Board of Governors of the Federal Room MP-510, Board of Governors of the Federal Reserve Reserve System. Remittance from foreign residents should System, Washington, D.C. 20551. When a charge is indicat­ be drawn on a U.S. bank. Stamps and coupons are not ed, remittance should accompany request and be made accepted. The Federal Reserve System—Purposes and Func­ Joint Treasury-Federal Reserve Study of the Gov­ tions. 1974. 125 pp. ernment Securities Market; Staff Studies—Part Annual Report. 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 Federal Reserve Bulletin. Monthly. $20.00 per year or each. Part 2, 1971. 153 pp. and Part 3, 1973. 131 pp. Each $2.00 each in the United States, its possessions, Canada, volume $1.00; 10 or more to one address, $.85 each. and Mexico; 10 or more of same issue to one address, Open Market Policies and Operating Procedures— $18.00 per year or $1.75 each. Elsewhere, $24.00 per Staff Studies. 1971. 218 pp. $2.00 each; 10 or more to year or $2.50 each. one address, $1.75 each. Banking and Monetary Statistics. 1914-1941. (Reprint Reappraisal of the Federal Reserve Discount Mecha­ of Part I only) 1976. 682 pp. $5.00. nism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. Banking and Monetary Statistics, 1941-1970. 1976. 1972. 220 pp. Each volume $3.00; 10 or more to one ad­ 1,168 pp. $15.00. dress, $2.50 each. The Econometrics of Price Determination Confer­ Annual Statistical Digest ence, October 30-31, 1970, Washington, D.C. 1972. 397 1971-75. 1976. 339 pp. $4.00 per copy for each paid sub­ pp. Cloth ed. $5.00 each; 10 or more to one address, scription to Federal Reserve Bulletin; all others $5.00 $4.50 each. Paper ed. $4.00 each; 10 or more to one ad­ each. dress, $3.60 each. 1972-76. 1977. 377 pp. $10.00 per copy. Federal Reserve Staff Study: Ways to Moderate 1973-77. 1978* 361 pp. $12.00 per copy. Fluctuations in Housing Construction. 1972. 487 1974-78. 1980. 305 pp. $10.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1970-79. 1981. 587 pp. $20.00 per copy. Lending Functions of the Federal Reserve Banks. 1973. 271 pp. $3.50 each; 10 or more to one address, Federal Reserve Chart Book. Issued four times a year in $3.00 each. February, May, August, and November. Subscription includes one issue of Historical Chart Book. $7.00 per Improving the Monetary Aggregates: Report of the year or $2.00 each in the United States, its possessions, Advisory Committee on Monetary Statistics 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 Canada, and Mexico. Elsewhere, $10.00 per year or each. $3.00 each. Historical Chart Book. Issued annually in Sept. Subscrip­ Ann R ua eg l u l P at e i r on c e Z n ) t a V g o e l. R I a ( t R e e g T ul a a b r l T e r s a n (T sa r c u t t i h o n i s n ) . L 1 e 9 n 6 d 9 i . n g 10 — 0 tion to Federal Reserve Chart Book includes one issue. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each $1.25 each in the United States, its possessions, Canada, volume $1.00; 10 or more of same volume to one ad­ and Mexico; 10 or more to one address, $1.00 each. Else­ dress, $.85 each. where, $1.50 each. Federal Reserve Measures of Capacity and Capacity Sele r c ie t s e d o f I n C t h e a r r e t st s. a W n e d e k E ly x . c $ h 1 a 5 n .0 g 0 e p e R r a y t e e a s r — or W $ e .4 e 0 k e l a y c h S e in ­ a U d t d i r l e i s z s a , t $ i 1 o .5 n 0 . 1 e 9 a 7 c 8 h . . 40 pp. $1.75 each; 10 or more to one the United States, its possessions, Canada, and Mexico; 10 or more of same issue to one address, $13.50 per year The Bank Holding Company Movement to 1978: A or $.35 each. Elsewhere, $20.00 per year or $.50 each. Compendium. 1978. 289 pp. $2.50 each; 10 or more to one address, $2.25 each. The Federal Reserve Act, as amended through December 1976, with an appendix containing provisions of certain Improving the Monetary Aggregates: Staff Papers. other statutes affecting the Federal Reserve System. 307 1978. 170 pp. $4.00 each; 10 or more to one address, pp. $2.50. $3.75 each. Regulations of the Board of Governors of the Fed­ 1977 Consumer Credit Survey. 1978. 119 pp. $2.00 each. eral Reserve System Flow of Funds Accounts. 1949-1978. 1979. 171 pp. $1.75 each; 10 or more to one address, $1.50 each. Published Interpretations of the Board of Gover­ nors, as of June 30, 1980. $7.50. Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; Bank Credit-Card and Check-Credit Plans. 1968. 102 10 or more to one address, $1.25 each. pp. $1.00 each; 10 or more to one address, $.85 each. Public Policy and Capital Formation. 1981. 326 pp. Report of the Joint Treasury-Federal Reserve Study $13.50 each. of the U.S. Government Securities Market. 1969. New Monetary Control Procedures: Federal Re­ 48 pp. $.25 each; 10 or more to one address, $.20 each. serve Staff Study. 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 Consumer Education Pamphlets The GNMA-Guaranteed Passthrough Security: Mar­ Short pamphlets suitable for classroom use. Multiple cop­ ket Development and Implications for the ies available without charge. Growth and Stability of Home Mortgage Lend­ ing, by David F. Seiders. Dec. 1979. 65 pp. Alice in Debitland Foreign Ownership and the Performance of U.S. The Board of Governors of the Federal Reserve System Banks, by James V. Houpt. July 1980. 27 pp. Consumer Handbook To Credit Protection Laws Performance and Characteristics of Edge Corpora­ The Equal Credit Opportunity Act and . . . Age tions, by James V. Houpt. Feb. 1981. 56 pp. The Equal Credit Opportunity Act and . . . Credit Rights in Banking Structure and Performance at the State Housing Level during the 1970s, by Stephen A. Rhoades. Mar. The Equal Credit Opportunity Act and . . . Doctors, Law­ 1981. 26 pp. yers, Small Retailers, and Others Who May Provide In­ cidental Credit The Equal Credit Opportunity Act and . . . Women Fair Credit Billing The Federal Open Market Committee Reprints Federal Reserve Bank Board of Directors Most of the articles reprinted do not exceed 12 pages. Federal Reserve Banks Federal Reserve Glossary Measures of Security Credit. 12/70. How to File A Consumer Credit Complaint Revision of Bank Credit Series. 12/71. If You Borrow To Buy Stock Assets and Liabilities of Foreign Branches of U.S. Banks. If You Use A Credit Card 2/72. Truth in Leasing Bank Debits, Deposits, and Deposit Turnover—Revised Se­ U.S. Currency ries. 7/72. What Truth in Lending Means to You Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corporations. 10/73. The Structure of Margin Credit. 4/75. Staff Studies Industrial Electric Power Use. 1/76. Studies and papers on economic and financial subjects that Revised Series for Member Bank Deposits and Aggregate Re­ are of general interest. serves. 4/76. Industrial Production—1976 Revision. 6/76. Summaries Only Printed in the Bulletin Federal Reserve Operations in Payment Mechanisms: A Requests to obtain single copies of the full text or to be Summary. 6/76. added to the mailing list for the series may be sent to Pub­ The Federal Budget in the 1970’s. 9/78. lications Services. Redefining the Monetary Aggregates. 1/79. Implementation of the International Banking Act. 10/79. Tie-ins Between the Granting of Credit and Sales of Perspectives on Personal Saving. 8/80. The Impact of Rising Oil Prices on the Major Foreign Indus­ Insurance by Bank Holding Companies and Other Lenders, by Robert A. Eisenbeis and Paul R. Schweit­ trial Countries. 10/80. zer. Feb. 1979. 75 pp. Federal Reserve and the Payments System: Upgrading Elec­ Measures of Capacity Utilization: Problems and tronic Capabilities for the 1980s. 2/81. Tasks, by Frank de Leeuw, Lawrence R. Forest, Jr., U.S. International Transactions in 1980. 4/81. Richard D. Raddock, and Zoltan E. Kenessey. July Survey of Finance Companies, 1980. 5/81. 1979. 264 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 A n t ic ip a t e d S c h e d u l e o f R e l e a s e D a t e s f o r P e r io d ic R e l e a s e s — B o a r d o f G o v e r n o r s o f t h e F e d e r a l R e se r v e S y st e m 1 Date or period Approximate to which data Weekly Releases release days refer Aggregate Reserves and Member Bank Deposits. H.3 (502) [1.22] Monday Week ended previous Wednesday Actions of the Board; Applications and Reports. H.2 (501) Friday Week ended previous Saturday Assets and Liabilities of Domestically Chartered Commercial Banks. Tuesday Wednesday, 2 weeks H.8 (510) [1.25] earlier Changes in State Member Banks. K.3 (615) Tuesday Week ended previous Saturday Factors Affecting Reserves of Depository Institutions and Condition Friday Week ended previous Statement of Federal Reserve Banks. H.4.1 (503) [1.11] Wednesday Foreign Exchange Rates. H. 10 (512) [3.28] Monday Week ended previous Friday Money Stock Measures and Liquid Assets. H.6 (508) [1.21] Friday Week ended Wednes­ day of previous week Selected Borrowings in Immediately Available Funds of Large Member Thursday Week ended Thursday Banks. H.5 (507) [1.13] of previous week Selectecl Interest Rates. H.15 (519) [1.35] Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Banks Friday Wednesday, 1 week and Domestic Subsidiaries. H.4.2 (504) [1.29] earlier Weekly Summary of Banking and Credit Measures. H.9 (511) Friday Week ended previous Wednesday; and week ended Wednes­ day of previous week Monthly Releases Capacity Utilization: Manufacturing and Materials. G.3 (402) [2.11] Mid-month Previous month Changes in Status of Banks and Branches. G.4.5 (404) 25th of month Previous month Commercial and Industrial Loans to U.S. Addresses Excluding 1st Wednesday of Last Wednesday of pre­ Bankers’ Acceptances and Commercial Paper by Industry. G.27 (429) month vious month Consumer Installment Credit. G. 19 (421) [1.56, 1.57] 3rd working day of 2nd month previous month Debits and Deposit Turnover at Commercial Banks. G.6 (406) [1.20] 25th of month Previous month Finance Companies. G.20 (422) [1.52, 1.53] 5th working day of 2nd month previous month Foreign Exchange Rates. G.5 (405) [3.28] 1 st of month Previous month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The Bulletin table that reports these data is designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Date or period Approximate to which data Monthly Releases — Continued release days refer Industrial Production. G.12.3 (414) [2.13] Mid-month Previous month Loan Commitments at Selected Large Commercial Banks. G.21 (423) 20th of month 2nd month previous Loans and Securities at all Commercial Banks. G.7 (407) [1.23] 20th of month Previous month Major Nondeposit Funds of Commercial Banks. G.10 (411) [1.24] 20th of month Previous month Maturity Distribution of Outstanding Negotiable Time Certificates of 24th of month Last Wednesday of pre­ Deposit. G.9 (410) vious month Research Library—Recent Acquisitions. G.15 (417) 1st of month Previous month Selected Interest Rates. G.13 (415) [1.35] 6th of month Previous month Summary of Equity Security Transactions. G.16 (418) Last week of month Release date Quarterly Releases Agricultural Finance Databook E.15 (125) End of February, January, April, July, and May, August, and October November Automobile Credit. E.4 (114) 14th of April, July, Previous quarter October, and January Finance Rates and Other Terms on Selected Types of Consumer 25th of January, 2nd month previous Installment Credit Extended by Major Finance Companies. April, July and E.10 (120) October Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) 15th of February, Previous quarter [1.58, 1.59] May, August, and November Geographical Distribution of Assets and Liabilities of Major Foreign 15th of March, June, Previous quarter Branches of U.S. Banks. E.ll (121) September, and December Finance Rates on Selected Consumer Installment Loans at Reporting 15th of March, June, February, May, Au­ Commercial Banks. E.12 (122) September, and gust, and November December Survey of Terms of Bank Lending. E.2 (111) [1.34] 15th of March, June, February, May, Au­ September, and gust, and November December Semiannual Releases Assets and Liabilities of Commercial Banks, by Classs of Bank. E.3.4 May and November End of previous De­ (113) [1.26, 1.27, 1.28] cember and June Check Collection Services-Federal Reserve System. E.9 (119) February and July Previous 6 months Country Exposure Lending Survey. E. 16 (126) May and November End of previous De­ cember and June List of OTC Margin Stocks. E.7 (117) April and October Release date Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and November End of previous De­ Savings Banks—Reports of Call (Joint Release of the Federal cember and June Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Date or period Approximate to which data Annual Releases release days refer Aggregate Summaries of Annual Surveys of Security Credit Extension. February End of previous June C.2 (101) Bank Holding Companies and Subsidiary Banks. C.6 (105) March Previous year Insured Bank Income by Size of Bank. C.4 (103) End of May Previous year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Index to Statistical Tables References are to pages A-3 through A-71 although the prefix “A" is omitted in this index ACCEPTANCES, bankers, 10, 23, 25 Demand deposits—Continued Agricultural loans, commercial banks, 18,19, 20, 24 Subject to reserve requirements, 14 Assets and liabilities (See also Foreigners) Turnover, 12 Banks, by classes, 17, 18-21, 27 Depository institutions Domestic finance companies, 37 Reserve requirements, 8 Federal Reserve Banks, 11 Reserves, 3, 4, 5, 14 Foreign banks, U.S. branches and agencies, 68-71 Deposits (See also specific types) Nonfinancial corporations, current, 36 Banks, by classes, 3, 17, 18-21, 27 Automobiles Federal Reserve Banks,11 Consumer installment credit, 40,41 Turnover, 12 Production, 46,47 Discount rates at Reserve Banks (See Interest rates) Discounts and advances by Reserve Banks (See Loans) BANKERS balances, 17, 18-20 {See also Foreigners) Dividends, corporate, 35 Banks for Cooperatives, 33 Bonds (See also U.S. government securities) EMPLOYMENT, 44, 45 New issues, 34 Eurodollars, 25 Yields, 3 Branch banks, 15, 21, 54, 68-71 FARM mortgage loans, 39 Business activity, nonfinancial, 44 Farmers Home Administration, 39 Business expenditures on new plant and equipment, 36 Federal agency obligations, 4,10, 11, 12, 32 Business loans (See Commercial and industrial loans) Federal and federally sponsored credit agencies, 33 Federal finance Debt subject to statutory limitation and types and CAPACITY utilization, 44 ownership of gross debt, 30 Capital accounts Receipts and outlays, 28,29 Banks, by classes, 17 Treasury operating balance, 28 Federal Reserve Banks, 11 Federal Financing Bank, 28,33 Central banks, 66 Federal funds, 3,6, 18, 19, 20,25, 28 Certificates of deposit, 21,25 Federal Home Loan Banks, 33 Commercial and industrial loans Federal Home Loan Mortgage Corporation, 33, 38, 39 Commercial banks, 15, 24 Federal Housing Administration, 33, 38, 39 Weekly reporting banks, 18-21,22 Federal Intermediate Credit Banks, 33 Commercial banks Federal Land Banks, 33, 39 Assets and liabilities, 3, 15, 17, 18-21 Federal National Mortgage Association, 33, 38, 39 Business loans, 24 Federal Reserve Banks Commercial and industrial loans, 22,24 Condition statement, 11 Consumer loans held, by type, 40,41 Discount rates (See Interest rates) Loans sold outright, 21 U.S. government securities held, 4, 11, 12, 30, 31 Nondeposit funds, 16 Federal Reserve credit, 4, 5,11, 12 Number, 17 Federal Reserve notes, 11 Real estate mortgages held, by holder and property, 39 Federally sponsored credit agencies, 33 Commercial paper, 3, 23, 25,37 Finance companies Condition statements (See Assets and liabilities) Assets and liabilities, 37 Construction, 44,48 Business credit, 37 Consumer installment credit, 40,41 Loans, 18, 19, 20, 40, 41 Consumer prices, 44, 49 Paper, 23,25 Consumption expenditures, 50,51 Financial institutions, loans to, 18, 19, 20 Corporations Float, 4 Profits and their distribution, 35 Flow of funds, 42,43 Security issues, 34, 63 Foreign Cost of living (See Consumer prices) Credit unions, 27,40,41 Banks, assets and liabilities of U.S. branches and agencies, 68-71 Currency and coin, 5, 17 Currency in circulation, 4,13 Currency operations, 11 Customer credit, stock market, 26 Deposits in U.S. banks, 4,11,18,19,20 Exchange rates, 66 Trade,53 DEBITS to deposit accounts, 12 Foreigners Debt (See specific types of debt or securities) Claims on, 54,56, 59,60,61,65 Demand deposits Liabilities to, 21, 54-58, 62-64 Adjusted, commercial banks, 12,14 Banks, by classes, 17, 18-21 GOLD Ownership by individuals, partnerships, and Certificates, 11 corporations, 23 Stock, 4,53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Government National Mortgage Association, 33, 38, 39 REAL estate loans Gross national product, 50, 51 Banks, by classes, 18-20,27, 29 Life insurance companies, 27 HOUSING, new and existing units, 48 Mortgage terms, yields, and activity, 3, 38 Type of holder and property mortgaged, 39 INCOME, personal and national, 44, 50, 51 Repurchase agreements and federal funds, 6, 18, 19, 20 Industrial production, 44,46 Reserve requirements, 8 Installment loans, 40, 41 Reserves Insurance companies, 27, 30, 31, 39 Commercial banks, 17 Interbank loans and deposits, 17 Depository institutions, 3, 4, 5, 14 Interest rates Federal Reserve Banks, 11 Bonds, 3 Member banks, 14 Business loans of banks, 24 U.S. reserve assets, 53 Federal Reserve Banks, 3,7 Residential mortgage loans, 38 Foreign countries, 66 Retail credit and retail sales, 40, 41, 44 Money and capital markets, 3, 25 Mortgages, 3, 38 SAVING Prime rate, commercial banks, 24 Time and savings deposits, 9 Row of funds, 42, 43 International capital transactions of the United States, 54-65 National income accounts, 51 International organizations, 54-59, 62-65 Savings and loan assns., 3, 9,27, 31, 39,42 Savings deposits (See Time deposits) Inventories, 50 Savings institutions, selected assets, 27 Investment companies, issues and assets, 35 Securities (See also U.S. government securities) Investments (See also specific types) Federal and federally sponsored agencies, 33 Banks, by classes, 17, 27 Foreign transactions, 63 Commercial banks, 3, 15, 17, 18-20 New issues, 34 Federal Reserve Banks, 11,12 Prices, 26 Life insurance companies, 27 Special drawing rights, 4,11, 52, 53 Savings and loan associations, 27 State and local governments Deposits, 18, 19, 20 LABOR force, 45 Holdings of U.S. government securities, 30, 31 Life insurance companies (See Insurance companies) New security issues, 34 Loans (See also specific types) Ownership of securities of, 18, 19, 20, 27 Banks, by classes, 17,18-21,27 Yields of securities, 3 Commercial banks, 3, 15, 17, 18-21, 22, 24 Stock market, 26 Federal Reserve Banks, 3,4, 5,7,11, i2 Stocks (See also Securities) Insurance companies, 27, 39 New issues, 34 Insured or guaranteed by United States, 38, 39 Prices, 26 Savings and loan associations, 27 MANUFACTURING TAX receipts, federal, 29 Capacity utilization, 44 Time deposits, 3, 9, 12, 14, 17, 18-21 Production, 44, 47 Trade, foreign, 53 Margin requirements, 26 Treasury currency, Treasury cash, 4 Member banks Treasury deposits, 4, 11, 28 Assets and liabilities, by classes, 17 Treasury operating balance, 28 Borrowings at Federal Reserve Banks, 5,11 Federal funds and repurchase agreements, 6 UNEMPLOYMENT, 45 Reserve requirements, 8 U.S. balance of payments, 52 Reserves and related items, 14 U.S. government balances Mining production, 47 Commercial bank holdings, 18, 19, 20 Mobile home shipments, 48 Member bank holdings, 14 Monetary aggregates, 3, 14 Treasury deposits at Reserve Banks, 4,11, 28 Money and capital market rates (See Interest rates) U.S. government securities Money stock measures and components, 3,13 Bank holdings, 17, 18-20, 27, 30, 31 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 32 Mutual funds (See Investment companies) Federal Reserve Bank holdings, 4, 11, 12, 30, 31 Mutual savings banks, 3, 9,18-20, 27, 30, 31, 39 Foreign and international holdings and transactions, 11, 30, 62 NATIONAL defense outlays, 29 Open market transactions, 10 National income, 50 Outstanding, by type and ownership, 30, 31 Rates, 3, 25 OPEN market transactions, 10 Utilities, production, 47 PERSONAL income, 51 VETERANS Administration, 38, 39 Prices Consumer and producer, 44, 49 Stock market, 26 WEEKLY reporting banks, 18-22 Prime rate, commercial banks, 24 Wholesale (producer) prices, 44,49 Production, 44,46 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories M inneapolis Detroit Chicago Cleje'Vi \Salt Lake City Omaha* Louisville Kansas C ity if. Louis SashvilU '"getes ittle Rock Birmingham^®ianfa Houston, tan Antonio ALASKA Legend Boundaries of Federal Reserve Districts Federal Reserve Bank Cities Boundaries of Federal Reserve Branch Federal Reserve Branch Cities Territories Federal Reserve Bank Facility © Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis