Federal Reserve Bulletin, 1981-07

Volume 67 □ Number 7 □ July 1981 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. Publications Committee Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ Michael Bradfield John M. Denkler □ Janet O. Hart □ James L. Kichline □ Edwin M. Truman Naomi P. Salus, Coordinator _ ^ 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 529 The Consumer Advisory Council: market funds when such shares serve as The First Five Years transaction balances and to enforce a clear­ er distinction between transaction balances The work of the Consumer Advisory Coun­ and other liquid savings, before the Sub­ cil is reviewed on the eve of its fifth anni­ committee on Domestic Monetary Policy of versary. the House Committee on Banking, Finance and Urban Affairs, June 25, 1981. 535 An Approach to Regulator y Simplification 555 Lyle E. Gramley, Member, Board of Gov­ ernors, discusses some of the issues in­ The Board is simplifying all of its regula­ volved in recent mergers within the finan­ tions and has completed its revision of cial services industry and says that Regulation Z (Truth in Lending). developments need to be monitored careful­ ly to ensure that such changes as recent 539 Recent Revisions conglomerate mergers do not result in mo­ in the M oney Stock nopolies or monopoly power at some time The Board has devised an econometric pro­ in the future, before the Subcommittee on cedure for preadjusting some components Monopolies and Commercial Law of the of the money stock, revised the benchmark House Committee on the Judiciary, July 8, for the monetary aggregates, and construct­ 1981. ed a measure of Ml-B that abstracts from shifts to negotiable order of withdrawal 561 Announcements accounts in 1981. Revision of the monetary aggregates. 543 Industrial Production Amendments to Regulations D and Q to Output declined about 0.1 percent in June. permit the establishment of international banking facilities in the United States (see 545 Statements to Congress Legal Developments). Frederick H. Schultz, Vice Chairman, Proposed amendments to Regulation T con­ Board of Governors, discusses the implica­ cerning margin requirements for trading of tions of Federal Reserve policy for the options on government and government agricultural sector and says that the farm agency debt issues; proposed amendment sector is not facing a significant problem to Regulation Y to include the issuance of with respect to credit availability, before traveler’s checks in the list of nonbanking the Subcommittee on Conservation, Credit, activities permissible for bank holding com­ and Rural Development of the House Com­ panies; proposed amendments to Regula­ mittee on Agriculture, June 23, 1981. tions G, T, and U concerning margin re­ quirements. 548 Paul A. Volcker, Chairman, Board of Gov­ ernors, presents the Board’s views on the Changes in Board staff. role of money market funds in the nation’s Meeting of Consumer Advisory Council. financial structure and recommends that the Federal Reserve be authorized to impose Admission of seven state banks to member­ reserve requirements on shares of money ship in the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

565 Record of Policy A ctions of the 571 Legal Developments Federal Open Market Committee Amendments to Regulations D, Q, and T; At its meeting on May 18, 1981, the Com­ various bank holding company and bank mittee decided to seek behavior of reserve merger orders; and pending cases. aggregates associated with growth of Ml-B from April to June at an annual rate of 3 Al Financial and Business Statistics percent or lower, after allowance for the impact of flows into negotiable order of A3 Domestic Financial Statistics withdrawal (NOW) accounts, and growth in A44 Domestic Nonfinancial Statistics M2 at an annual rate of about 6 percent. A A52 International Statistics shortfall in growth of Ml-B from the two- A68 Special Tables month rate of 3 percent would be accept­ able, in light of the rapid growth in April A67 Guide to Tabular Presentation, and the objective adopted by the Commit­ Statistical Releases, and Special tee on March 31 for growth from March to Tables June at an annual rate of 5x/i percent or somewhat less. The members recognized A82 Board of Governors and Staff that shifts into NOW accounts would con­ tinue to distort measured growth in Ml-B to A84 Federal Open Market Committee an unpredictable extent and that operation­ and Staff; Advisory Councils al paths would have to be developed in the light of evaluation of those distortions. The A85 Federal Reserve Banks, Chairman might call for Committee consul­ Branches, and Offices tation if it appeared to the Manager for Domestic Operations that pursuit of the A86 Federal Reserve Board monetary objectives and related reserve P ublications paths during the period before the next meeting was likely to be associated with a A88 Index to Statistical Tables federal funds rate persistently outside a range of 16 to 22 percent. A90 Map of Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Consumer Advisory Council The First Five Years This article was prepared by Marcia A. Hakala, tee to assist the Board in drafting the implement­ former vice chairman of the Board’s Consumer ing Regulation Z. As the Board’s responsibilities Advisory Council, with the assistance of Ann in consumer regulations expanded, it seemed Marie Bray, Kay Oliver, and Dolores S. Smith of only natural to supplant the committee with a the Board staff. group that had a broader focus. At the suggestion of the Board, the Congress added to the Equal In its role as the nation’s central banker the Credit Opportunity Act Amendments of 1976 a Board of Governors of the Federal Reserve provision creating the Consumer Advisory System has a significant impact on the daily lives Council. According to that provision, the council of American consumers. The Board’s decisions was to advise and consult with the Board in the on monetary policy can exert a force on interest exercise of its functions under the Consumer rates, on the availability of credit, and on the rate Credit Protection Act and in other consumerof inflation. related matters that the Board might place before Over the past 13 years, the Board has become the membership. involved in yet other ways in consumer affairs. The rationale behind the formation of these With the passage by the Congress in 1968 of the advisory bodies was to open a channel through first federal legislation for the protection of indi­ which the Federal Reserve Board could receive, vidual consumer-borrowers, the Board began from specialists in the field, advice and informa­ under statutory fiat to assume a major role in the tion to help it carry out its consumer-related writing and enforcement of rules governing the responsibilities. The council could also act as a rights and responsibilities of consumers in their public sounding board to assist the Federal Re­ dealings with the financial and credit industry. serve in uncovering implications of particular With each new mandate—first truth in lending proposals. disclosures, then credit card rules, equal credit opportunity, fair credit billing rights, consumer leasing, and so on—the Board’s involvement in Membership and Organization consumer matters has deepened. In a parallel development the organized participation of pri­ The law that created the Consumer Advisory vate citizens as advisers to the Board in the Council instructed the Federal Reserve Board to exercise of these functions has expanded—first “seek to achieve a fair representation of the under the aegis of the Advisory Committee on interests of creditors and consumers.” Beyond Truth in Lending, and currently through the that, it left the Board wide flexibility regarding Board’s Consumer Advisory Council. The ap­ the council’s membership and organization. The proach of the fifth anniversary of the Consumer rules of organization and procedure that the Advisory Council provides an appropriate occa­ Board subsequently adopted with respect to the sion for a status report. council’s operations made these points: • The council would consist of no more than Origin of the Council thirty members. • Members would serve for staggered three- In 1968, the Congress established, as part of the year terms. truth in lending legislation, an advisory commit­ • The council would have a chairman, a vice Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 Federal Reserve Bulletin □ July 1981 chairman, and a secretary, the last selected from Members of the Consumer Advisory Council, by the Board’s staff. professional affiliation, 1976-81 • Meetings would be open to the public. T ...... ■ • Members of the public would have the oppor­ Type of representative Number tunity to submit written comments on the topics Creditor representatives Commercial banks...............................................*........j 6 to be discussed at council meetings. 3 3 Three individuals have headed the council thus Savings and loan associations....................................... 2 Mutual savings banks.................................................... 1 far. Leonor K. Sullivan, a member of the Con­ Credit unions................................................................. 2 Consumer finance companies........................................ 2 gress for twenty-four years, was the first chair­ Mortgage banking companies........................................ 1 3 man. For twelve years, from 1963 to 1975, Mrs. Automobile dealers........................................................ 2 Sullivan was Chairman of the Subcommittee on 3 Credit bureaus............................................................... 2 Consumer Affairs of the House Banking and Bank credit-card systems.............................................. 1 Currency Committee. She was one of the princi­ Consumer representatives pal authors of the 1968 Consumer Credit Protec­ Organized labor............................................................. 2 1 tion Act, and in 1970 she sponsored the Fair Government agencies for civil rights and consumer protection............................................................... 4 Credit Reporting Act. In 1974, she proposed Credit counseling services............................................. 1 legislation to prohibit discrimination in the exten­ Legal aid societies......................................................... 2 Consumer education..................................................... 2 sion of credit based on age, color, race, religion, Consumer and community interest groups................. 9 4 sex, or marital status. The Equal Credit Opportu­ Academicians and others......................................... 7 nity Act grew out of her proposal. The second chairman was William D. Warren, a well-known scholar and author in the field of consumer and commercial law, and dean of the liability structure, its size, and the nature of its School of Law at the University of California at assets and revenues can go a long way to deter­ Los Angeles. He served as a consultant on mining its concerns with respect to consumer debtor-creditor and consumer law to the Nation­ regulations. Small organizations often point out al Commission on Consumer Finance, and was that some of the provisions of Regulation E reporter-draftsman of the Uniform Consumer (Electronic Fund Transfers), Regulation Z (Truth Credit Code between 1964 and 1974. in Lending), and Regulation BB (Community Since January 1981, the chairman has been Reinvestment), and the federal programs to en­ Ralph J. Rohner, professor of law at the Colum­ force such regulations, can be a tremendous bus School of Law at the Catholic University of burden and can place them at a competitive America. Professor Rohner served as counsel to disadvantage because they lack the legal staffs the Subcommittee on Consumer Affairs of the and the economic resources of larger organiza­ Senate Committee on Banking, Housing, and tions. Recognizing these differences, the Board Urban Affairs, and has written extensively on has named individuals to the council from di­ federal consumer credit legislation. verse institutions. The mission of the Consumer Advisory Coun­ Consumer representatives have had even more cil was to lend the Board its expertise with heterogeneous backgrounds. Some of them have respect to the development and implementation been founders and long-time leaders of the con­ of consumer-related regulations and programs, sumer movement. Representatives of state and striving for equity, effectiveness, and minimum local consumer protection and civil rights offices burden. In keeping with that mission the council have offered expertise from their special vantage has been characterized since its inception by a points. Consumer education specialists have broad range of backgrounds and locales. (See the been a valuable resource because consumer edu­ table and the map.) This diversity has been cation is usually at least part of the solution for useful. Among creditors, for example, the needs many consumer problems raised at council ses­ and problems of different types and sizes of sions. Educators and attorneys on the council organizations can diverge, even to the point of have included articulate, nationally recognized conflict. The clientele of a creditor, its asset and spokespersons for consumer rights. The knowl- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Consumer Advisory Council: The First Five Years 531 Geographic distribution of CAC membership, 1976-81 Washington Maine Montana North Dakota Minnesota Wisconsin. South Dakota Michigan Wyoming Nebraska Nevada Illinois i Indiana! Ohio | Delaware Colorado District of Kansas Virginia Columbia California 'entucl Maryland North Carol Arizona Oklahoma New Mexico Alabama Louisiana. Shaded areas indicate home states of Consumer Advisory Council members; darker shading shows first council. edge and efforts of other members with low- Procedures and Operations income clients have enabled them to make their own special contributions. Through the nearly five years of its existence, Academicians have constituted a third catego­ the Consumer Advisory Council has explored ry of council members. In appointing law profes­ ways of enhancing its value to the Board and of sors, economists, and other academicians, the making service on the council more meaningful Board has drawn on individuals who cannot be to its members. Experience with the many and neatly categorized as consumer or creditor repre­ often complex issues in the regulation of con­ sentatives, but who can provide a neutral force in sumer credit and financial services has led to the council’s deliberations and a special perspec­ refined procedures and streamlined operations. tive on complicated consumer finance issues. In October 1977, the council established a task To say that most council members can be force on procedures. Working with the Board’s characterized by their affiliations as creditor rep­ Committee on Consumer Affairs, it recommend­ resentatives or consumer representatives does ed, among other things, that the council have not mean that the positions they take during the fuller discussions of fewer topics at each meet­ council’s discussions can be characterized that ing. With Board concurrence, the task force also way. One member of the Board commented that urged that council members participate more in listening to the council’s discussions he was directly in selecting agenda topics. Consequent­ often unable to tell which members represented ly, a formal procedure known as the Delphi consumers and which represented creditors. technique was adopted. This balloting technique Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 Federal Reserve Bulletin □ July 1981 permits a systematic compilation of opinions for did not appear to be complying with its mandate group decisionmaking that is well suited to the to advise the Board. Others believed that no needs of the geographically dispersed members. useful purpose would be served by voting be­ Council members are asked to suggest topics, all cause members would feel obligated to cast of which are listed and voted upon in order of ballots along consumer-creditor “party lines;” preference. Items receiving the highest totals are inasmuch as the council was balanced, votes by placed on the agenda. Other topics may be added creditor representatives would cancel out those by the council’s chairman and vice chairman and cast by consumer representatives. Voting, some by Board members. thought, might even inhibit members in express­ Task forces and committees have proven use­ ing their views because meetings are open to the ful, time-saving mechanisms for fuller council public. involvement in complex issues and Board activi­ As the council gained experience, an objective ties. A small group of council members can take problem-solving system began to develop. Mem­ a concentrated look at a specific issue or play a bers not only were freely expressing their own specialized role in gathering information about positions on issues, but also were understanding an issue. In addition, council members expert in the concerns of the “opposing” side and engag­ a particular area can be tapped to serve on or to ing in a real dialogue. Discussions sometimes head a group looking into that area. Such groups became heated; but on some occasions, when the report on their activities and bring their recom­ council had at last reached a consensus, mem­ mendations to the full council. bers on both sides had been persuaded to accept Currently, the council has two standing com­ a middle ground. The council had thus become a mittees. The Economic Impact Analysis Com­ forum for informed discussions about issues of mittee was established in June 1979 to explore public interest. the role that the council could play in the costbenefit analysis of consumer financial-protection regulations. So far the committee has considered Agenda Items whether better (cheaper, clearer, more timely) alternatives exist to the disclosure now given By law, the council advises the Board with consumers under the Fair Credit Billing Act, and respect to the Board’s responsibilities under the whether charges for error resolution on alleged Consumer Credit Protection Act and other con­ errors in electronic fund transfers have a “chill­ sumer-related matters on which the Board seeks ing” effect or other influence on the behavior of advice. In addition, through use of the Delphi consumers. ballot process the council has voted to discuss a The Legislation Committee was created in wide variety of other topics: consumer bankrupt­ October 1979 to advise the council on proposed cy, state usury ceilings, negotiable order of with­ legislation. It is currently identifying issues con­ drawal accounts, and interstate banking, to name cerning competition and structure in financial a few. markets (impact of money market mutual funds, Over the past five years the council has devot­ interstate banking activities, and so on), usury ed a substantial portion of its time to various ceilings and the costs of credit to consumers, and aspects of three major consumer regulations: the multiple sources of regulatory requirements. Regulation Z, Regulation E, and Regulation B This year an ad hoc committee was named by (Equal Credit Opportunity). In particular, it has the chairman to develop a consumer education grappled often with proposals to amend the truth item for discussion at a future council meeting. in lending rules, with the development of en­ This group has the mandate of identifying as­ forcement policies, and with the implications of pects of consumer education that it feels the credit-scoring practices for consumers and for council should address. the industry. In the early days, some members expressed Because the council was already in existence frustration because the council did not take votes in 1978, when the Electronic Fund Transfer Act on issues after its discussions and consequently was passed, it was able to advise the Board about Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Consumer Advisory Council: The First Five Years 533 the implementing regulation from the beginning. program at more than half of the Federal Reserve More recently, the council has considered ways Banks. In addition, council members have pro­ to reconcile the conflicts between certain provi­ vided editorial help in preparation of the Board’s sions of that regulation and the corresponding educational pamphlets and have suggested wider provisions of Regulation Z. The council recently avenues of distribution for consumer materials. recommended that the Board not attempt to Council input also appears to affect rules is­ integrate those provisions until the Permanent sued by the Board. In some instances the issue Editorial Board for the Uniform Commercial has been relatively simple. A good example is the Code completed its efforts to make appropriate council’s consideration of a rule in truth in changes in the uniform state laws, changes that lending that deals with customer reimbursement the council thought ought to precede any revi­ for computational overcharges. The Board had sion in Federal Reserve regulations. The Federal asked for the council’s views on the amount Reserve Board has followed the council’s sug­ below which a creditor should not be required to gestion. repay the consumer. The council proposed a one-dollar figure, which the Board later set. Other times the issues have been complex, IMPACT with far-reaching implications for consumers. In one such case, the Board reconsidered a rule in Assessing the impact of group deliberations on Regulation Z, in part because of a request from the decisionmaking process is extremely diffi­ council members. The rule defined the consum­ cult. But the work of one council task force er’s right to rescind a credit transaction if the affords a glimpse of ways in which the council creditor was taking a security interest in the aids the Board. consumer’s home. This right was intended to Even during the formative stages of the coun­ give consumers an opportunity to reconsider the cil, members expressed concern to the Board transaction because a default could result in the that consumers might not be fully benefiting from loss of the home. protections afforded them because they lacked The Board had published a proposal for an information regarding consumer credit legisla­ amendment to the rule generally limiting the cir­ tion. To test this hypothesis the council estab­ cumstances in which the consumer could rescind lished a Consumer Education Task Force to do a transaction under an open-end credit plan. In some regional research. Members representing a due course, the Board adopted the amended rule. cross-section of states—California, Maryland, Protests followed—from consumer groups and Michigan, Nebraska, Iowa, Texas, and Virgin­ also from council members, who wanted to have ia—surveyed educational systems in their areas more direct input into the decision. to explore these questions: Were consumer edu­ At its next scheduled meeting, the council cation courses being taught? If so, to what extent expressed grave concern about the possible con­ and to whom? Were they required or elective? sequences of the rule for consumers and urged The task force also gathered examples of instruc­ the Board to reverse its position. Soon after, the tional materials. Board reopened the rulemaking proceedings and The study confirmed the need for broader asked for public comment on whether it should dissemination of consumer information. After suspend, repeal, or modify the rescission amend­ further deliberation, the council urged the Board ment. to respond to a particular need—that of reaching The Board ultimately revoked the amendment, young people—through educating teachers about noting its consideration of “the concern ex­ consumer credit protections. pressed by . . . the Board’s Consumer Advisory Participants in the first teacher workshop, held Council [and others] . . . that consumers might in Washington in February 1979, found it particu­ be led unawares into more debt than they could larly helpful, and five more seminars have been afford and might as a result lose their homes—a held with metropolitan Washington school dis­ consequence that the right of rescission is intend­ tricts. Teacher workshops are now an ongoing ed to help prevent.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 Federal Reserve Bulletin □ July 1981 The council has also been valuable to the sumers themselves. In these kinds of delibera­ Board for the “grass roots” information that tions, the council has been of special value to the members have been able to offer from around the Board; thus its impact cannot be measured solely country. Although the Board solicits public com­ by the instances in which its positions have ment on proposed regulations or amendments to prevailed in final Board actions. existing regulations in an effort to determine the impact they will have on consumers, comments by council members have a first-hand freshness that is sometimes lacking in the written com­ In Conclusion ments from the public. The varied experiences and contacts of council members also serve the In the nearly five years since the council began, a Board in uncovering consumer concerns that its solid working relationship, ensuring that council formal procedures might miss. input is considered by the Board in making Since all consumers are not alike (what bene­ consumer-related decisions, has been estab­ fits one group may hurt another), the Board must lished between the council and the Board and its weigh not only the anticipated effect of its deci­ staff. At the same time, those who have served sions on consumers as a group against the antici­ on the council have derived from their experi­ pated effect on other segments of the society, but ence a deeper understanding of the infinite com­ also the sometimes conflicting effects on con­ plexity of the Board’s regulatory functions. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

535 An Approach to Regulatory Simplification This article was prepared by Jesse B. Filkins, Jr., legislation further the cause of regulatory reform of the Board's Division of Consumer and Com­ while retaining the basic protections for consum­ munity Affairs. ers mandated by the Congress? This article looks at the Federal Reserve Board’s approach to Over the recent past, industry practices at all regulatory simplification in general and focuses levels have been permeated by government regu­ on the implementation of the Truth in Lending lation. The last decade has been a particularly Simplification and Reform Act. active period of regulation in the consumer credit industry. Federal statutes now require creditors to disclose a great deal of information to consum­ Regulatory Improvement ers about the credit being offered while, at the same time, restricting lenders in their practices. Mindful of the burdens regulation imposes on Many of these statutes have been implemented business and individuals, the Federal Reserve by the Board of Governors of the Federal Re­ Board in 1975 enlisted some of its former officers serve System.1 to review its regulations and make recommenda­ Lately, a consensus has emerged that the tions for their improvement. In 1978, this review proliferation of government regulation exacts a was restructured as a full-scale Regulatory Im­ toll from industry that may be too high, particu­ provement Project under the Office of the Secre­ larly for small businesses; and the mood of the tary and was charged with improving the Board’s country has begun to swing in favor of less regulations and rulemaking procedures. The pro­ regulation. The Congress has expressed its con­ ject coordinates the efforts of Reserve Bank and cern for legislative and regulatory reform Board staff in the zero-based reviews of all of the through passage of the Truth in Lending Simplifi­ Board’s regulations and provides substantive cation and Reform Act, the Financial Regulation and editorial review of regulatory revisions and Simplification Act of 1980, and the Regulatory amendments in compliance with the Financial Flexibility Act.2 In light of these laws how can a Regulation Simplification Act and the Regulatory regulatory agency charged with implementing Flexibility Act. In addition, the Board has established a Feder­ al Reserve Regulatory Service designed to sim­ 1. The Board’s major responsibilities in the consumer plify the presentation of regulatory material and credit area are implementation of the Truth in Lending Act (Regulation Z), beginning in 1968; the Equal Credit Opportu­ broaden access to it. The service has published nity Act (Regulation B), in 1976; and the Electronic Fund all Board regulations, interpretations, and rulings Transfer Act (Regulation E), in 1978. It also has rule writing in a single two-volume reference set. authority under the Home Mortgage Disclosure Act (Regula­ tion C), 1975; the Magnuson-Moss Warranty-Federal Trade The Board has also expanded its rulemaking Commission Improvement Act (Regulation AA), 1975; and procedures to encourage more and earlier public the Community Reinvestment Act (Regulation BB), 1977. involvement. Since January 1979, the rulemaking 2. The Truth in Lending Simplification and Reform Act is Title VI of the Depository Institutions Deregulation and procedures have provided for advance notice of Monetary Control Act of 1980, Public Law 96-221, 94 Stat. rulemaking; identification of areas in which the 168, amending 15 U.S.C. 1601 et seq. (1968). The Financial Regulation Simplification Act is Title VIII of the Depository Institutions Deregulation and Monetary Control Act of 1980, ty Act is Public Law 96-354, 94 Stat. 1164 (1980), amending 5 Public Law 96-221, 94 Stat. 191; it requires federal financial U.S.C. 551 et seq. (1946); it provides that agencies must regulatory agencies to review their regulations to minimize consider the impact of their regulations on small businesses compliance costs, to avoid conflicts and duplication, and to and attempt to fit regulatory requirements to the scale of the promote clarity and understanding. The Regulatory Flexibili- business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 Federal Reserve Bulletin □ July 1981 Board particularly wants comment; open confer­ complexity. Statutes were passed dealing with ences or informal public hearings; and direct nondiscrimination in consumer credit, disclo­ solicitation of the views of interested persons or sures of residential mortgage lending, consumer groups, with emphasis on getting views from rights in the emerging electronic banking field, diverse sources. and unfair and deceptive acts by banks. The Truth in Lending Act was amended in 1970, 1974, and 1976 to include new provisions on Truth in Lending credit cards, resolution of billing errors, and consumer leasing. The regulation grew from Truth in Lending offers an example of how the about 32 pages to more than 76 pages containing Board has simplified one of its regulations. many complex, technical requirements. The Depository Institutions Deregulation and While consumer protection was increasing, so Monetary Control Act of 1980 required the was the regulatory burden on the credit industry. Board to conduct an extensive analysis and Forms became unwieldy and expensive to pro­ reevaluation of several of its major regulations. duce because of the number of disclosures re­ Title VI, the Truth in Lending Simplification and quired and the frequent changes in requirements. Reform Act, called for extensive revision of the Moreover, because of the technical provisions of lending rules embodied in Regulation Z. the act and the regulation and because of the Truth in Lending, like so much of the consum­ statutory penalties imposed for violations, credi­ er protection legislation, started out as a re­ tors requested more and more guidance. By sponse to perceived abuses by creditors. The 1980, the Board and its staff had issued more Congress was concerned that creditors were not than 1,500 interpretations and letters. Compli­ providing enough information about credit, that ance difficulties were compounded by decisions the terminology used in the industry was so in the more than 15,000 Truth in Lending civil varied that consumers shopping for credit be­ lawsuits filed in federal courts since 1969, many came confused and thus were at a disadvantage, of them based on technicalities.4 and that ultimately free competition among lend­ ers was hindered. The Congress therefore re­ quired creditors to provide sufficient information Simplification and Reform in uniform, simple terms so that consumers could make an informed choice among sources of cred­ In March 1980, the Congress, concerned about it. The bill that became the Truth in Lending Act the impact of this large and complex statutory was designed to “insure a full disclosure of the and regulatory scheme on consumers and on cost of credit,” “improve and strengthen the free creditors, particularly small businesses, passed competition system,” and prevent “deception the Truth in Lending Simplification and Reform and confusion in connection with disclosing the Act. This act was designed to ease compliance actual cost of credit.”3 To these ends it focused by eliminating ambiguities in the law, by simpli­ on disclosure of certain information in easily fying and reducing the number of disclosures understood, common terms such as the “finance required, and by providing for model forms and charge” (the dollar amount of the cost of credit), clauses that would assure compliance when they and it introduced the term “annual percentage were used properly by creditors. rate” as a uniform indicator of the cost of credit. Passage of the act, however, posed a formida­ To fulfill its responsibility for implementing the ble question for the Board’s staff: how were they act, the Board in 1969 issued Regulation Z. to simplify a regulatory apparatus of the magni­ Over the next decade, legislation affecting tude of Truth in Lending? The complexity of the consumer credit grew both in volume and in act and of the industry that it regulates precluded 3. See the remarks of Senator William Proxmire, Congres­ 4. Based on a compilation of data published in the Annual sional Record (daily edition), Jan. 31, 1967, pp. S-1202, 1203, Report of the Director of the Administrative Office of the 1204. United States Courts, from 1972 through 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Approach to Regulatory Simplification 537 a brief, simple regulation. Despite the attempt by could be achieved through good-faith efforts. the Congress, the Truth in Lending Act was still Thus, creditors could provide earlier disclosures far from simple: the statute remained more than to consumers and make shopping for credit 15,000 words long. The variety of credit pro­ easier. grams that the regulation addresses had expand­ ed so much that it was difficult to write an uncomplicated regulation. And to maintain con­ Principles Applied sistency with past decisions, any revision of the regulation would have to take into account the A set of working principles was developed to relevant interpretations and letters. organize the project, set central themes, and furnish specific guidance on how to reach simpli­ fication goals. Goals of Simplification One working principle was that the regulation contain precise, simple rules rather than ambigu­ Although the Regulatory Improvement Project ous language that required clarification by inter­ has responsibility for coordinating the review pretation. For example, the old regulation ap­ function for regulatory improvement, the task of plied to a person who “in the ordinary course of revising Regulation Z was assigned to the Divi­ business regularly extends” consumer credit. sion of Consumer and Community Affairs, the The revised regulation defines “regularly” to division responsible for drafting the Board’s con­ mean the extending of credit more than twentysumer regulations. five times per year (or five times per year for A first step was to establish goals for the loans secured by real estate). revision of Regulation Z that could serve as a Another principle was that the regulation em­ basis for regulatory efforts. One goal was to phasize the disclosures most relevant to credit reduce substantially the burden of compliance on decisionmaking. Disclosure regulations have of­ creditors. A second was to simplify the regula­ ten been criticized on the ground of “information tory format by consolidating the interpretations overload,” when consumers are so inundated and letters into a single comprehensive docu­ with disclosures that they cannot properly ana­ ment. And a third was to make disclosures more lyze their statements. One way the regulation understandable for consumers. Some individuals controls the amount of information supplied to were concerned that consumers were having as consumers is by eliminating detailed disclosures much difficulty in understanding Truth in Lend­ concerning consumer defaults. It also removes ing disclosures as they had in understanding the requirement for disclosing minor changes transactions without them; moreover, the origi­ made in outstanding contracts. nal goal of facilitating credit shopping was Because of the detailed requirements of the old thought to be thwarted by the complexity of the regulation, creditors’ disclosure forms were of­ required disclosures. ten complex and confusing and, far from helping Another aspect was to adopt the often-stated consumers, may have inhibited their understand­ congressional objective of providing specific re­ ing of the credit terms. In the new regulation, lief for small businesses, when possible. Thus, creditors were to be given increased flexibility in one goal was to recognize in the regulation that making their disclosures. The hope was that an the needs of small institutions, with simple credit easing of regulatory rigidity would allow credi­ plans, are different from those of large institu­ tors to create clearer, more understandable tions with complex plans. The compliance efforts forms for the basic information. For instance, the of small businesses could also be facilitated by old regulation prescribed in detail an example of simplifying the language, focusing on the most the effects of a rate increase in a variable-rate important basic disclosures, and deemphasizing loan. The new regulation permits creditors to the technical areas. design their own illustrations. Finally, the staff adopted a goal of encouraging Applying these principles, the Board has pro­ improved and voluntary compliance, which duced a regulation that is 40 percent shorter than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 Federal Reserve Bulletin □ July 1981 the old one, that is easier to read and understand, check several sources to determine whether they and that affords creditors more freedom to tailor are in compliance with the regulation. Creditors the disclosure to their own credit plans. The who act in conformity with the commentary are result should be more meaningful disclosures to protected from civil liability.6 consumers and thus better informed credit shop­ Inclusion of model forms and clauses was ping, one of the primary goals of the original another step toward making the regulation easier Truth in Lending legislation. to use. This idea had been high on the list of Board recommendations made in congressional hearings before passage of the simplification A Simplified Structure amendments. In developing the forms, the Board consulted suppliers of forms to the credit indus­ Clarifying the language of the regulation and try. It also took account of “Plain English” reducing the complexity and volume of disclo­ requirements in state laws. Use of the model sure were only part of the simplification process. forms and clauses is optional; however, there is a It was also decided that a simpler, better orga­ presumption of compliance when they are prop­ nized format would make Regulation Z easier to erly used. use and thereby improve compliance. In the past, users had been forced to peruse the regula­ tion, check the Board interpretations, look for A C ontinuing P rocess slip sheets, and sort through hundreds of official and unofficial staff letters. To alleviate this prob­ Although the revision of Regulation Z is now lem the revised regulation groups together all complete, simplification remains an essential rules regarding credit-related programs. Provi­ part of the regulatory process. The Regulatory sions related to consumer leasing, previously Improvement Project has ongoing responsibility found in several parts of the regulation, have to ensure that the Board’s regulations meet the been removed from Regulation Z altogether and goals of the Financial Regulation Simplification consolidated into a new regulation, Regulation M Act. During the past two years the staff of the (Consumer Leasing). This change helps the users project has coordinated zero-based reviews and of the leasing provisions while simplifying Regu­ cooperated with Reserve Bank and Board staff in lation Z because leasing and credit generally are substantive revisions of a number of Board regu­ subject to separate provisions. lations and is currently working on others, in­ The staff also made the regulation easier to cluding those on bank holding companies and follow by instituting a “commentary” that inter­ margin credit. Project members will continue to prets the regulation. Previously, interpretations explore better means of presenting regulatory were offered in individual official and unofficial proposals to reduce paperwork. □ staff letters. Now the commentary permits all of the interpretive material to be presented in a single document, which will normally be updated interpretations be made only once a year. These changes only once a year.5 Users need not constantly should be promulgated at least six months before the October 1 effective date. 5. The amended act contains a similar concept requiring 6. 15 U.S.C. 1640(f) (1976); Ford Motor Credit Co. v. that any changes to the regulation, the amendments, or the Milhollin, 444 U.S. 555 (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

539 Recent Revisions in the Money Stock Benchmark, Seasonal Adjustment, and Calculation of Shift-Adjusted Ml-B Thomas D. Simpson, John R. Williams, and Benchmark other members of the staff of the Board's Divi­ sion of Research and Statistics prepared this Measures of the money stock have been bencharticle. marked to incorporate data from the June, Sep­ tember, and December 1980 call reports and In May and June of this year the Federal Reserve certain data on deposits collected as a result of announced updated seasonal adjustment meth­ the Monetary Control Act (MCA). In addition, ods and benchmark revisions for the money the inclusion of traveler’s checks of nonbank stock, as well as a procedure for calculating a issuers has raised the levels of Ml-A and the measure of Ml-B that abstracts from shifts to broader aggregates although it has had minimal negotiable order of withdrawal accounts autho­ effects on their growth rates. rized in 1981. Whereas seasonal adjustment fac­ The bulk of the new data called for by the tors are updated regularly, recent revisions were MCA are now used in computing the money complicated by the growing importance of the stock. New reports of deposits for institutions other checkable deposits component and by un­ with total deposits of between $2 million and $15 usual patterns of deposit flows in 1980 during and million have been incorporated; in January 1981, after the special credit restraint program.1 these institutions began reporting for one week Benchmark revisions involved the conversion to each quarter with one-third of them reporting use of new reports of deposits collected by the each month. The benchmark also incorporates Federal Reserve under the Monetary Control daily data on deposits reported since November Act of 1980, as well as the usual adjustments 1980 for foreign-related institutions—U.S. based on quarterly call report data; in addition, branches and agencies of foreign banks and Edge traveler’s checks were added to Ml-A and the Act corporations—and for other checkable de­ broader aggregates. posits (OCD) at thrift institutions with total de­ This article briefly describes the benchmark posits greater than $15 million as of December revisions and their effects on the pattern of 1979. Daily deposit data of nonmember commer­ monetary growth. It also describes in general cial banks with deposits greater than $15 million terms the methodology for calculating the sea­ had been incorporated at the time of the preced­ sonal factors, particularly the procedures used to ing benchmark revision in January 1981. Efforts avoid distortions of seasonal factors resulting are currently under way to convert to the use of from unusual deposit flows in the spring and daily data on time and savings deposits at thrift summer of 1980. Finally, it discusses the proce­ institutions. dure for constructing a measure of Ml-B that The largest revisions to growth in Ml-A and abstracts from shifts to NOW accounts in 1981.2 Ml-B were for early 1981 (table 1). Ml-A growth was lowered in the first quarter of this year, 1. Other checkable deposits consist of NOW (negotiable order of withdrawal) and ATS (automatic transfer service) mainly because of the new reports by quarterly accounts at commercial banks and thrift institutions, credit reporting banks. Growth in Ml-B also was low­ union share draft accounts, and demand deposit accounts at ered as an upward revision in OCD at quarterly thrift institutions. 2. A more detailed description of the methods used in reporting institutions did not offset the down­ these revisions has been prepared and is available on request ward revisions to demand deposits at these insti­ from the Board of Governors of the Federal Reserve System, tutions and to NOW accounts at savings and loan Division of Research and Statistics, Banking Section, Wash­ ington, D.C. 20551. associations. The pattern of revisions to growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 Federal Reserve Bulletin □ July 1981 1. Comparison of old and revised growth rates of However, seasonal adjustment factors that are the monetary aggregates, 1979-81 derived using standard programs tend to be dis­ Quarterly averages, seasonally adjusted at annual rates, in torted by unusual or deviant patterns.3 Thus the percent updating of seasonal adjustment factors using Aggregate and Old rate Revised rate Difference data for 1980 was complicated by the extraordi­ quarter nary, and probably nonrecurring, patterns of Ml-A deposit flows in the spring and summer associat­ 1979: 4 . 4.2 4.0 2 1980: 1 . 5.2 5.2 0 ed with the implementation and subsequent re­ 2 . -4.8 -4.9 1 3 . 11.5 11.3 2 moval of the special credit restraint program.4 In 4 . 8.0 8.2 2 addition, special treatment was given to the 1981: 1 . -18.6 - 20.8 -2.2 changing composition of Ml-B brought about by Ml-B 1979: 4 . 4.7 4.6 1 expansion of OCD in recent years. 1980: 1 . 6.8 6.8 0 Table 2 compares the old seasonal factors with 2 . -2.9 -3.0 1 3 . 13.9 13.9 0 the new factors produced by standard seasonal 4 . 10.9 10.8 1 1981: 1 r 6.6 4.9 adjustment procedures incorporating data for l.l1 1980, both for the demand deposit component of M2 Ml-A and for the Ml-B transaction component 1979: 4 . 6.1 6.1 0 1980: 1 . 8.9 8.7 2 defined as demand deposits plus two-thirds of 2 . 5.4 5.1 3 3 . 15.7 15.4 3 OCD. The standard procedures produced new 4 . 8.1 8.1 0 seasonal factors for demand deposits that were 1981: 1 . 8.4 8.2 2 lower than the old factors—in some cases, mark­ M3 1979: 4 . 8.0 7.9 1 edly so—for the March-to-July period, while new 1980: 1 . 9.1 9.1 0 2 . 6.9 6.0 0 factors for most remaining months were higher 3 . 13.1 13.1 0 (compare columns 1 and 2 or columns 4 and 5). 4 . 10.3 11.3 0 1981: 1 . 12.0 12.4 .4 Preventing distortions to seasonal factors, there­ fore, requires a modification of these proce­ 1. Adjusted for shifts in 1981 into other checkable deposits from sources other than demand deposits. See the text for a discussion of dures. shift adjustment. In the context of the X-ll method used by the Board, an appropriate procedure is to preadjust rates for shift-adjusted Ml-B is similar to that for the series to minimize the effects of the uncom­ Ml-B. Benchmark revisions to M2 growth in mon fluctuations in 1980 on the seasonal adjust­ 1981 have been relatively small. Growth in M3 ment factors. Preadjustment consists of remov­ was raised for late 1980 and early 1981, primarily ing from each series the estimated distortion as a result of the new daily data on large- during the period of credit controls and its afterdenomination time deposits at foreign-related institutions. 3. While the X-ll program seeks to identify and eliminate outliers, distinguishing a run of consecutive unusual observa­ tions from the trend-cycle or seasonal elements of series is Seasonal Adjustment Methods difficult or impossible for an automatic procedure. In particu­ lar, a sharp upswing or downswing that persists for a few months and then ceases or reverses itself will tend to be Ordinarily, updating seasonal factors for com­ interpreted in part as a seasonal movement; moreover, sea­ ponents of the monetary aggregates involves sonal factors in adjacent years also will be affected. application of standard programs—specifically, 4. For analyses of evidence of the effects of this program on the demand for money, see Board of Governors of the the X-ll package—to historical data series incor­ Federal Reserve System, New Monetary Control Proce­ porating data received since the last updating. dures, a Federal Reserve Staff Study (The Board, February Revised monthly seasonal factors are derived 1981), especially Stephen Axilrod, “Overview of Findings and Evaluation” (vol. I); and David Lindsey and others, directly for each series. Weekly seasonal factors “Monetary Control Experience under the New Operating are then constructed from the monthly factors on Procedures;” Lawrence Slifman and Edward McKelvey, the basis of historical intramonthly patterns and “The New Operating Procedures and Economic Activity since October 1979,” and Peter Tinsley and others, “Money the particular timing of weeks within each Market Impacts of Alternative Operating Procedures” (all in month. vol. II). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Revisions to the Money Stock 541 2. Seasonal factors for the transaction deposit components of Ml-A and Ml-B, 1980 Ml-A Ml-B (demand deposits) (demand deposits plus 2/3 of other checkable deposits) Month Old factor New factor Old factor New factor based on data based on data through 19791 Without pre­ With pre­ through 19792 Without pre­ With pre­ adjustment adjustment adjustment adjustment (1) (2) (3) (4) (5) (6) January............. 1.021 1.022 1.019 1.021 1.022 1.020 February........... .974 .974 .973 .975 .974 .972 March............... .978 .976 .978 .978 .977 .977 April................. 1.014 1.012 1.015 1.014 1.012 1.013 May................... .979 .973 .980 .980 .974 .978 June................... .995 .993 .996 .996 .993 .997 July................... 1.005 1.003 1.004 1.003 1.003 1.005 August............. .991 .991 .991 .989 .992 .992 September....... .998 1.003 1.000 .998 1.002 1.001 October............. 1.007 1.009 1.006 1.005 1.008 1.007 November....... 1.007 1.010 1.007 1.007 1.009 1.007 December......... 1.029 1.032 1.030 1.031 1.031 1.029 1. Previously published seasonal factors used for demand deposits 2. These factors were computed for illustrative purposes and have in both Ml-A and Ml-B. never been used in the construction of the aggregates. math; seasonal factors are then calculated using deposit component of Ml-B, which consists of the preadjusted series. the total of demand deposits and two-thirds of The technique chosen to estimate the distor­ OCD (that part of OCD estimated to have shifted tions is the “intervention analysis” of Box and out of demand deposits before 1981). In most Tiao.5 This procedure employs a model of the months revisions in seasonal factors are smaller data series, such as an ARIMA (autoregressive with the intervention technique than with the integrated moving average) model, and augments standard seasonal adjustment procedure. it by a functional form suitable for capturing the effects of the “intervention,” in this case the imposition and subsequent removal of credit controls.6 Each affected series is preadjusted by Constructing Ml-B and Shiftremoving that part of the fitted combined model Adjusted Ml-B in 1981 representing the intervention. The seasonal fac­ tors are obtained by applying the standard X-ll The nationwide extension of NOW accounts at program to the resulting series. These factors are year-end 1980 has led to a significant further then applied to the original data to obtain the adjustment of the public’s asset portfolios to seasonally adjusted series. newly available deposit accounts. In particular, The seasonal adjustment factors derived by households have been shifting funds from sav­ the preadjustment procedure are shown in table ings deposits and other sources outside demand 2, column 3 for the demand deposit component deposits into NOW accounts, thereby raising of Ml-A and in column 6 for the transaction Ml-B. As a consequence, growth in Ml-B in early 1981 has tended to overstate the underlying expansion in the public’s transaction balances. 5. George E. P. Box and George C. Tiao, “Intervention During this transitional period, the Federal Re­ Analysis with Applications to Economic and Environmental Problems,” Journal of the American Statistical Association, serve has been publishing both Ml-B and an vol. 70 (March 1975), pp. 70-79. adjusted Ml-B, which abstracts from shifts to 6. The use of models in seasonally adjusting the monetary newly opened OCD accounts. Basically, this aggregates was recommended in a report recently submitted procedure removes from Ml-B inflows to OCD by the Board’s Committee of Experts on Seasonal Adjust­ ment Techniques, and thus the present method of interven­ accounts in 1981 estimated to have originated in tion analysis is in accordance with the committee’s recom­ sources other than demand deposits. mendations. See Seasonal Adjustment of the Monetary The procedure for constructing the shift- Aggregates (Board of Governors of the Federal Reserve System, forthcoming). adjusted measure of the narrow money stock Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 Federal Reserve Bulletin □ July 1981 involves estimating inflows to OCD accounts trend growth in 1981, the sum of demand depos­ after allowing for trend growth and seasonal its and OCD estimated to have come from de­ variations in those accounts in existence at the mand deposits during 1981, and OCD estimated end of 1980. Estimated inflows to OCD accounts to have come from sources other than demand that were opened in 1981 are then apportioned deposits during 1981. From this total, subtraction between inflows from demand deposits and those of a consolidation component representing the from savings and other sources outside demand amount of demand deposits owned by thrift deposits on the basis of evidence from samples of institutions estimated to be used in servicing depository institutions and households and their OCD liabilities yields seasonally adjusted econometric techniques.7 This evidence suggests Ml-B.8 Finally, the shift-adjusted measure of that the proportion of growth in OCD—above Ml-B equals Ml-B seasonally adjusted less sea­ that attributable to accounts in existence before sonally adjusted OCD estimated to have come 1981—that was shifted or diverted from sources from sources other than demand deposits during other than demand deposits was about 20 to 25 1981.9 percent in January and 25 to 30 percent in later Other checkable deposits seasonally adjusted months. can be derived as the difference between Ml-B Calculations of Ml-B and shift-adjusted Ml-B, seasonally adjusted and Ml-A seasonally adjust­ both seasonally adjusted, are based on the mid­ ed, plus the Ml-B consolidation component. points of those ranges. The following seasonally Ml-A seasonally adjusted is constructed by sum­ adjusted components are summed in deriving the ming the following seasonally adjusted compo­ seasonally adjusted level of Ml-B: currency, nents: currency, traveler’s checks, and demand traveler’s checks, the level of OCD accounts in deposits using the seasonal factor for demand existence at the end of 1980 plus their estimated deposits (rather than the factor for transaction deposits used in constructing Ml-B). Because 7. About 100 commercial banks provided information on the behavior of demand deposits has been domi­ the sources of new OCD balances in January, February and nated increasingly by variations in corporate and early March, and April; in May, nearly 400 banks were sampled. In addition, cross-section econometric techniques other nonhousehold accounts as households were applied to changes in demand deposits and changes in have shifted to OCD, the seasonal factor for OCD at about 9,000 banks that report weekly; the slope demand deposits differs slightly from the transac­ coefficient of the regression of changes in demand deposits on changes in OCD represents an estimate of the proportion of tion factor used in constructing Ml-B (table 1). OCD growth coming from demand deposits. About 100 savings and loan associations provided data on the sources of inflows to new NOW accounts for January, March, and May. 8. Such demand deposits are removed in order to avoid Finally, the Survey Research Center of the University of double-counting since demand deposits of thrift institutions Michigan conducted surveys of about 700 households in appear in the demand deposit component. February, March, and April and of about 5,000 households in 9. The seasonal factor for commercial bank savings depos­ June. its is used to seasonally adjust this item. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

543 Industrial Production Released for publication July 15 ment, but somewhat larger declines in transit, commercial, and power equipment. Production Industrial production edged down 0.1 percent in of defense equipment was essentially unchanged June on a seasonally adjusted basis, as declines for the second month. Output of construction occurred in the output of construction supplies, supplies was reduced 1.4 percent in June after home goods, and durable and nondurable materi­ small declines in the previous two months. als. There was a post-strike rebound in coal Seasonally adjusted, ratio scale, 1967= 100 production and moderate increases in other ener­ gy materials and in automotive products. In addition, utility output advanced strongly be­ cause of a greater-than-seasonal surge in electric­ ity generation. Output in manufacturing de­ creased perceptibly. At 152.7 percent of the 1967 average, the total index in June was 7.9 percent above the recession-affected level of a year earli­ er and 0.7 percent above the level of January 1981. In market groupings, output of consumer goods declined 0.3 percent in June. A rise in auto production was more than offset by decreases in the output of home goods such as appliances and nondurable consumer goods—particularly food and other staples. Autos were assembled at an annual rate of 7.4 million units, 1.4 percent above May. Output of business equipment continued to lose momentum; production was essentially un­ changed in June, reflecting slight increases in Federal Reserve indexes, seasonally adjusted. Latest fig­ building and mining and manufacturing equip­ ures: June. Auto sales and stocks include imports. Major market groupings 1967 = 100 Percentage change from preceding month Percentage change, Grouping 1981 1981 June 1980 to Mayp June6 Feb. Mar. Apr. May June June 1981 Total industrial production..... 152.8 152.7 -.1 .5 .0 .4 -.1 7.9 Products, total......................... 151.9 151.4 -.3 .6 .5 .3 -.3 6.2 Final products...................... 150.9 150.7 -.3 .9 .7 .4 -.1 5.9 Consumer goods............... 149.8 149.4 -.2 .9 .7 .4 -.3 5.1 Durable.......................... 146.5 145.8 .1 3.2 .5 1.7 -.5 13.7 Nondurable................... 151.1 150.8 -.3 .0 .8 -.1 -.2 2.2 Business equipment......... 183.2 183.0 -.3 1.2 .9 .6 -.1 7.8 Defense and space........... 100.9 100.9 -.8 .3 .3 .1 .0 4.2 Intermediate products......... 155.3 154.3 -.5 -.4 -.3 -.4 -.6 7.5 Construction supplies...... 146.4 144.4 -.1 .2 -.5 -.3 -1.4 12.4 Materials................................... 154.3 154.7 .3 .1 -.8 .7 .3 10.5 p Preliminary. e Estimated. Note. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 Federal Reserve Bulletin □ July 1981 Major industry groupings 1967 = 100 Percentage change from preceding month Percentage change, Grouping 1981 1981 June 1980 to Mayp June6 Feb. Mar. Apr. May June June 1981 Manufacturing................. 152.9 152.2 -.1 .5 .4 .4 -.5 8.5 Durable........................ 143.6 142.7 -.5 1.1 .3 .7 -.6 9.9 Nondurable................. 166.4 165.9 .5 -.4 .4 .1 -.3 6.8 Mining............................. 135.9 141.3 1.6 .1 -5.4 .1 4.0 6.3 Utilities............................ 170.5 172.5 -1.5 .5 .0 .6 1.2 1.9 p Preliminary. e Estimated. Note. Indexes are seasonally adjusted. Output of materials increased 0.3 percent, as a was reduced 0.5 percent in June, reflecting de­ rise of 4.1 percent in the production of energy clines of 0.6 percent in durable goods manufac­ materials—due mainly to the post-strike surge in turing and 0.3 percent in nondurable goods in­ coal mining—more than offset declines in output dustries. Reductions were widespread among of 0.7 percent in durable materials and 0.3 per­ industries but most notable in primary metals, cent in nondurable materials. lumber, and paper. Mining was up 4.0 percent, In industry groupings, manufacturing output and utility output increased 1.2 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

545 Statements to Congress Statement by Frederick H. Schultz, Vice Chair- 1979, having climbed in the late 1970s from the 55 many Board of Governors of the Federal Reserve percent area that had prevailed throughout the System, before the Subcommittee on Conserva­ period from 1968 to 1975. Many agricultural tion, Credit, and Rural Development of the Com­ bankers believed that they might be unable to mittee on Agriculture, £/.S. House of Represen­ accommodate the increased loan demands they tatives, Jime 25, 795/. expected from farmers in the spring of 1980. However, even during this period of concern, I appreciate this opportunity to appear before changes were in train in deposit and loan trends your committee to discuss Federal Reserve poli­ that subsequently alleviated the liquidity cy and the implications for the agricultural sec­ squeeze. On the deposit side, favorable 1979 tor. The Board recognizes the critical role of farm income and the availability of the attractive agriculture in meeting fundamental human needs new six-month money market certificate (MMC) here and abroad; we also are conscious of the helped to maintain a substantial inflow of lendimportance of a vital farm sector for the strength able funds. Meanwhile, with interest rates on and stability of the American economy. We loans at banks rising faster than those posted by know, too, that many segments of the agricultur­ production credit associations and the Farmers al community are experiencing difficult times, in Home Administration early last year, demands part because of financial conditions. for production credit were diverted from the I would note that the Federal Reserve has banks. The business recession also cut into non­ greatly enhanced its collection of data on farm farm loan demands. As a result of all these credit conditions and has become a significant developments, agricultural banks saw their loansource of timely information in this area. In the deposit ratio fall sharply last year, to 60 percent. mid-1970s, when it became evident that the vola­ Thus far in 1981, loan growth at these banks has tility of agricultural commodity prices and of picked up a bit, but deposit growth has kept pace credit conditions had increased, several regional so that liquidity positions in the aggregate have Reserve Banks joined in conducting quarterly not deteriorated. surveys of trends at agricultural banks. Then, in However, as I noted, the more comfortable 1977, the Federal Reserve began a quarterly credit availability situation has not isolated farm­ national survey of interest rates and other terms ers from the stresses of high interest rates. of bank loans to farmers. Most recently, an Indeed, the direction of change in recent years Agricultural Finance Databook was established has been toward a greater integration of the as a regular quarterly publication of the Board of credit markets, lowering the old sectoral and Governors. geographic barriers. Credit developments across An examination of the available data indicates the economy tend now to follow a similar course. quite clearly that, while the farm sector—like In the case of agricultural banks, the six-month others—is confronted today with a problem of MMC has been a major factor in linking the local high credit costs, it is not facing a significant farm loan market to the national credit market. problem with respect to credit availability. You The MMC has enabled agricultural banks to will recall the serious concerns about shortages remain competitive in the market for savings, of agricultural credit supply at rural banks in late and in the process it has transformed their liabil­ 1979 and early 1980. For agricultural banks na­ ity structure. The MMC was introduced in midtionwide, the average loan-deposit ratio—one 1978, and by March 1981 it accounted for 27 indicator of banks’ capacity to make additional percent of the total resources of agricultural loans—had reached 68 percent by the fall of banks; with large-denomination certificates of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 Federal Reserve Bulletin □ July 1981 deposit ($100,000 plus) accounting for another 7 of less than $100,000 averaged 17.5 percent while percent, roughly a third of the banks’ footings those on larger loans averaged 18.2 percent. At were in the form of short-term deposits carrying small banks this difference has narrowed in re­ market-related rates. cent quarters, but it remains in evidence at large The shift into MMCs from passbook savings banks. and other low-rate instruments resulted in a On the whole, our figures indicate that farm marked upward adjustment of the average cost of borrowers at banks have, on average, paid some­ funds for agricultural banks, and that cost is what lower rates than most business borrowers much more responsive than it was in the past to when market rates of interest have risen to high swings in money market rates. Traditionally, levels. This does not, however, alter the fact that loan rates at rural banks have been based on the interest charges have risen significantly for most average cost of funds, rather than on what the farmers, especially for those who are heavy banks could earn in the money market at any users of short-term production credit. These given time. This sluggishness of average costs in higher interest costs inhibit agricultural invest­ the pre-MMC era was mirrored in a comparative ment and production just as they do investment stability of farm loan rates, but the transforma­ and production in other sectors of the economy. tion of bank liability structure that has occurred Under the circumstances it is natural to ask over the past three years has changed this picture whether economic policies are being directed drastically. For example, in our quarterly survey toward easing the pressures on interest rates. of bank lending to farmers, the effective average In answering this question, it is necessary to rate charged by smaller banks reached 17.1 per­ recognize that inflation is the major source of the cent in May 1980—in a week when the national high interest rates we have today. We are faced business prime rate was 18 percent. It then fell to with a deeply entrenched inflation and inflation­ 13.7 percent in August, when the prime rate was ary psychology that has created major imbal­ 11 percent. In the latest survey, made this May, ances and inefficiencies in our economy. Indeed, the effective loan rate at the smaller banks was by now it is widely accepted that ending the 17.5 percent at a time when the prime was 19 inflation is absolutely essential if we are to put percent. Thus, farm loan rates at these banks, the nation securely on a path of balanced eco­ which account for about five-sixths of farm lend­ nomic growth and high employment. ing, have been fluctuating much more than in the Inflation leaves its imprint on financial mar­ past, though not so much as the business prime kets as surely as it does on the markets for rate. commodities and labor. In an inflationary envi­ At very large banks that are active in national ronment, nominal sales and incomes must rise in money markets and that account for the remain­ order to maintain the same real levels of activity, ing one-sixth of farm lending, the average farm and so too must the nominal volumes of money loan rate follows the prime quite closely, and is and credit. The inflated credit demands will be usually slightly above it. In the May survey, met by lenders only if nominal interest rates rise effective farm loan rates at these banks averaged enough to compensate for the expected lower 19.5 percent, just above the national business purchasing power of the dollars with which debts prime. are repaid—and borrowers are willing to pay that Of course, individual loans show a substantial price when they share those expectations. dispersion of rates. In May, for example, 13 Once an inflation has gathered momentum, the percent of the farm loan volume was reported at monetary authority has, at least in principle, effective rates of less than 16 percent, and 16 several options available to it, none of which are percent had rates above 20 percent. Thus, the especially appealing. It can seek to accommo­ interest rate experience of individual farmers has date the enlarged demands for money and thus varied considerably. I might also note that, on attempt to sustain the real growth of the econo­ average, operators of small farms may have been my. This approach has at least two major pitfalls. able to borrow at somewhat lower rates than First, the history of inflation suggests that it is large farmers. At least, for example, the May difficult to achieve a “steady state”—inflation survey data show that the effective rates on loans tends to escalate. Second, even a steady inflation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 547 tends, over time, in an economy like ours to place upward pressure on market interest rates— result in significant distortions and dislocations especially shorter-term rates. As the availability that impose real economic costs. of money falls short of what is demanded, inter­ Another option—one that some people have est rates tend to rise as businesses, households, advocated—is to apply a shock treatment by and others compete for the available supply. In completely shutting off the supply of money for a time, the higher rates also tend to damp spend­ period. Unfortunately, when inflationary expec­ ing, and thereby to ease inflationary pressures— tations are deeply embedded in contractual and a process that may involve some economic slack. other arrangements, such a drastic approach may This is the circumstance in which we seem to rend the financial fabric and exact an unaccept­ find ourselves today. The degree and duration of able toll in terms of lost economic production. that slack can be greatly reduced if, on observing A third option, and the one we are pursuing, is the commitment of government to anti-inflation in effect a middle course: We are putting the policy, people adapt their wage and price deci­ economy on a strict monetary diet—a regimen sions quickly to the underlying economic reali­ that will over time squeeze out the inflationary ties. fat from our financial flows and force adjust­ As inflation and inflationary expectations be­ ments on the part of business and labor consis­ gin to wind down, the groundwork will be laid for tent with a return to price stability. Such a a moderation of interest rates. Over the long gradual approach is not without its risks. If the haul, the size of the so-called inflation premium commitment to the strategy is questioned, the is a major determinant of nominal interest rate adjustments of wage and price behavior will be levels. In this respect, it is fair to say that the slower and the economic costs correspondingly Federal Reserve is pursuing a policy that offers greater. There also is the risk of misestimating the best hope for a sustained reduction of interest the effects of the selected policy targets, with the rates. consequence that more or less pressure may be It is to be emphasized, however, that the path placed on the economy than is desirable. While to lower interest rates will be shorter and less the scope for fine-tuning clearly is very limited, it bumpy if other governmental policies move in must be recognized that in a world of rapidly directions that are complementary to the thrust changing financial institutions, technology, and of monetary policy. The most critical area in this practices, a need exists to stay alert to the regard is the federal budget. An expansive feder­ possibility that a given monetary growth rate al budget stimulates aggregate demand and, at may vary in its impact on financial markets and least initially, results in an enlarged deficit and a the economy. greater federal call on the credit markets by the On balance, however, the risks of this gradual federal government. Higher interest rates are the approach are outweighed by its advantages. Con­ result, so long as the Federal Reserve does not sequently, the Federal Reserve intends to contin­ deviate from its targets in order to accommodate ue seeking a slowing in monetary expansion. We the government’s financial demands. Thus, be­ have set objectives for the growth of money this cause our economy is already being taxed by year that imply a significant deceleration from high interest rates—and I speak not only of the pace of recent years, and we anticipate agriculture, but of a good many other major further progress toward noninflationary rates of sectors—I urge you to place a top priority on monetary growth in the years ahead. maintaining the current momentum toward cur­ The consequences of this policy for interest tailment of the growth of federal spending. I rates cannot be predicted with any precision. would urge you as well to exercise caution with Moreover, it must be emphasized that our poli­ respect to tax cuts, to take care that any cuts are cies are not aimed at attaining any particular not so great as to offset the deficit-reducing effect level or structure of interest rates. However, of the expenditure restraint and that they are knowing the concern of the committee about the focused as much as possible on fostering greater outlook for interest rates, let me make a few productivity. In this latter regard, I believe that general remarks. The first would be that the the greatest productivity gains per dollar of re­ initial direct impact of monetary restraint is to duced taxes are available if tax cuts are directed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 Federal Reserve Bulletin □ July 1981 at the business sector, including the business of would underscore again that it is crucial for the agriculture; I recognize, however, that the high Congress to keep an eye on the overall balance of personal tax burdens that have developed also the spending-revenue package to ensure that call for some remedy, and that well-designed financial markets are not further strained in this action on this front could well have a significant critical period of transition to a less inflationary payoff in terms of enhanced productivity. But I economy. □ Statement by Paul A. Volcker, Chairman, Board among various savings outlets. Given the regula­ of Governors of the Federal Reserve System, tory and economic constraints on long-estab­ before the Subcommittee on Domestic Monetary lished savings and payments instruments, the Policy of the Committee on Banking, Finance search for yield and liquidity has increasingly led and Urban Affairs, U.S. House of Representa­ to the issue of close substitutes for traditional tives', June 25, 1981. deposit instruments. The resultant blurring of the distinctions between what has traditionally been I appreciate the opportunity to appear before you considered money and these close substitutes to give the Federal Reserve Board’s views con­ could result in potentially serious complications cerning the role of money market funds in our for the conduct of monetary policy—particularly nation’s financial structure and the question of for a policy approach that focuses on the mone­ what, if any, additional regulatory action is tary aggregates. Considerations of equity and fair called for. treatment among institutions offering compara­ Money market mutual funds have increased by ble services arise as well. In a broader sense, I more than $100 billion since the end of 1978, am also concerned about the structural implica­ obviously becoming a significant competitive tions for the financial system of more and more force and institutional presence in financial mar­ short-term liabilities subject to rapid shifting kets. The rapid growth of money market mutual among institutions. funds over this period reflects a particular con­ Clearly, erosion of the distinctions between stellation of market forces—especially the high services offered by depository and other finan­ level of short-term interest rates, relative to both cial institutions has occurred. This erosion un­ past experience and longer-term interest rates, doubtedly reduces the impact, from the stand­ and the regulatory framework applicable to es­ point of the economy as a whole, of many bank tablished depository institutions. Whether mon­ and thrift institution regulations, and raises ques­ ey market mutual funds would remain so strong a tions concerning the continued rationale of such competitive force in a different market environ­ regulations. Among the regulations in question ment is not clear, but as matters now stand, it is are those governing the geographic expansion of evident that the rapid growth of these funds is banks and thrift institutions, the range of serv­ having strong implications for the competitive ices they can offer, and restrictions on their positions of financial institutions, the cost and assets and liabilities. Alternatively, to the extent availability of credit to certain borrowers, and such regulations clearly remain important in the the implementation of monetary policy. public interest, we are forced to consider wheth­ As important as money market funds have er their application needs to be extended to become, their expansion can be seen as part of newer institutions. broader developments in U.S. financial markets I will be touching upon a number of these in recent years. Against the background of infla­ issues this morning in the course of suggesting a tion and interest rate pressures and uncertain­ logical framework for the regulatory treatment of ties, a progressive shortening in the effective money market funds, but you will recognize that maturity of financial assets has occurred, in part many of the issues extend well beyond the scope through much greater use of floating interest rate of my testimony today. Even so, actions taken to arrangements and greater sensitivity to interest affect money market funds must be formulated rate differentials in the shifting of investor funds with this broader background in mind. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 549 Background Federal Reserve and other rules. Many institu­ tions are also limited in their capability to pay The growth of money market funds and other market interest rates on all their deposits be­ newer short-term financial assets has been fos­ cause they hold longer-term fixed-rate assets tered by the economic, interest rate, and regula­ acquired earlier when inflation and interest rates tory environment of the late 1970s and early were lower. Money market funds are not respon­ 1980s. Our economy has suffered from rising sible for the inability of many depository institu­ inflation over many years; as borrowers and tions to meet the current preferences of inves­ lenders have adapted to the more rapid pace of tors, but they have benefited from this condition. price increases, interest rates have risen. The Money market funds offer a high-yielding asset higher rates of inflation and interest have in­ that also is highly liquid in that it can be re­ creased the penalty for holding demand deposits deemed quickly by a variety of methods without or other assets whose yields are constrained, the penalties associated with early withdrawal of whether directly by regulation, by other regula­ time deposits and with only a small risk of tory burdens, or by the inability of some institu­ declines in the market value of the investment. tions to pay higher rates because they are locked The funds have attracted a diverse group of into older, lower-yielding assets. The increase in shareholders. For many institutional investors— rates has been more pronounced for shorter-term such as bank trust departments—the appeal of assets than for longer-term ones, leaving short­ money market funds derives from the asset di­ term yields above those that can be earned on versification and professional management the longer-term assets—the opposite of the relation­ funds offer at low cost. For these investors, the ship usually prevailing since the 1930s—so that funds primarily provide an alternative to direct new institutions dealing in short-dated instru­ purchases of money market instruments. For ments on both sides of the balance sheet have households and small businesses, on the other had an advantage. The public’s desire to hold hand, the low minimum purchase requirements highly liquid short-term assets also appears to of the funds allow access to money market yields have been boosted by a heightened sense of by investors who otherwise would find their uncertainty about the future course of the econo­ short-term options quite circumscribed. A signif­ my and financial markets. This uncertainty is icant portion of the flows into money market fundamentally related to the strength and persis­ funds from these sectors has been diverted from tence of inflation and its consequences for eco­ depository institutions. nomic and financial activity. High and volatile Funds moving into money market funds are interest rates have been one reflection of these simply recycled into purchases of money market uncertainties. With less confidence among bor­ assets, both domestically and internationally. rowers, lenders, and intermediaries about their Since most of these assets are issued by banks or ability to predict the future level of interest rates, their large business customers, the growth of the a tendency exists to minimize individual risks by funds does not appear to have added to liquidity avoiding long-term credit agreements or by uti­ pressures on depositories as a whole. But money lizing floating-rate arrangements. However, it is market funds do tend to concentrate their invest­ an open question, to say the least, whether the ments with the larger banks and corporations. To individual “self-protective” tendencies, which the extent that money market funds are diverting only serve to redistribute risks, contribute to the deposits from small banks and thrift institutions, broader stability and solidity of the financial and the effect is in the first instance to channel funds economic system as a whole. away from the borrowers and geographic areas Due to regulatory and economic constraints, more dependent on these institutions. While traditional deposit instruments have not satisfied market incentives will tend to redistribute the the public’s demand for high-yielding liquid as­ funds to the point of demand, at least for a time sets. From a regulatory perspective, the institu­ the distribution of credit is affected. tions have been limited by interest rate ceilings The tendency for money funds to divert re­ on deposits and, to a lesser extent, by the sources from small banks and thrift institutions requirement to hold nonearning reserves at the remains of concern to the Federal Reserve. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 Federal Reserve Bulletin □ July 1981 Board appreciates the industry efforts that have pared to compete for savers’ dollars but are been made to broaden the number of banking and prevented from doing so by regulations, such as thrift institutions from which the money funds interest rate ceilings and reserve requirements, will purchase negotiable certificates of deposit that directly affect rates of return they can pay (CDs). We also understand that those efforts the public. Some aspects of the operations of have been impeded by a variety of problems money market funds are closely regulated by the involved with soliciting, packaging, and placing Securities and Exchange Commission, but the CD issues from a large number of relatively small impact of these rules on the yields that the funds institutions that have not ordinarily raised funds can offer to shareholders is small compared with in money markets. Private initiatives to over­ those limiting banks and thrift institutions. The come these problems should be encouraged. resulting disparity raises serious questions about Thus far, the evidence suggests that a greater the ability of the deposit-taking institutions to proportion of the shares of money market funds, compete on an equal footing with intermediaries taken as a whole, seem to substitute for time or offering newer instruments. savings deposits—as well as purchases of short­ I don’t think we can take lightly the erosion of term securities—than for transaction balances. the competitive position of our banks and thrift Despite the easy redeemability of money market institutions or of regulatory coverage. These fund shares, available aggregate data indicate institutions have long been at the core of our that such shares on the average turn over only financial system and have many customers, es­ about three times each year—roughly compara­ pecially for the particular types of credit they ble to savings accounts—and that only a few extend, who have no easy alternatives. More­ checks are drawn on the “average” account over, the regulations circumscribing their actions each year. However, these averages undoubted­ were not conceived arbitrarily. Reserve require­ ly mask a significant amount of transaction activ­ ments, for instance, are a key part of the appara­ ity. Moreover, indications are that such activity tus for the conduct of monetary policy and may become more important. For one, several presumably will be maintained permanently. brokerage houses apparently are contemplating Other regulations, particularly those governing offering combined margin and money market interest rates, may now be seen to be no longer fund accounts with checking account capabili­ necessary, desirable, or effective over time; ties. If similar to accounts of this type currently many of these are in the process of being phased available, they will have no minimum denomina­ out. We are in the midst of a difficult transition tion for checks and will be accessible by a credit period in that respect, but we should not lose card, greatly increasing the opportunity for them sight of the desirability of equalizing competitive to be used extensively for transaction purposes. conditions by removing regulatory burdens in The use of money fund balances for transactions instances when that corresponds with sound, would be further encouraged if the discussions long-range policy. now under way to link credit cards and money market funds outside the context of margin ac­ counts come to fruition. Moreover, even the M onetary Policy Considerations relatively infrequent use of large checks against a money market fund can enable a customer to In recent years there has been a deepening reduce his balance in a traditional checking ac­ recognition of the importance of controlling mon­ count by bunching his “small” checks on that etary growth. This widely accepted approach account after a transfer from a money market toward monetary policy depends, of course, both fund. on our ability to define and measure the growth of “money” and on our ability to control effec­ tively that growth over reasonable periods of Competitive Considerations time. The difficulties of defining and controlling money are greater to the extent that institutional Because they have been able to restructure their change is rapid and new forms of “money” assets, many traditional intermediaries are pre­ become larger relative to the traditionally de­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 551 fined monetary aggregates. For those reasons, current structure of regulation and control— the rapid growth of the money market funds, or recognizing that some important regulations, similar developments that blur distinctions be­ those affecting interest rates on consumer depos­ tween transaction and nontransaction accounts, its, are in any event being phased out. Indeed, it have become potentially significant for monetary can be pointed out that the competitive pressures policy. of money market funds and other innovations These considerations are not new; concerns of help assure the rapid phaseout of interest rate this kind lay behind the enactment last year of ceilings, which would offer the consumer maxi­ the Monetary Control Act, which extended re­ mum advantage. serve requirements to transaction balances of all But compelling disabilities to that approach depository institutions and to some extent clari­ exist. Reserve requirements, which from the fied the definition of transaction balances. At viewpoint of a depository institution are analo­ that time, the decision was made to stop short of gous to a tax on transaction account business, money market funds in the coverage of reserve are a permanent part of the regulatory apparatus. requirements. Such funds have doubled since In that sense, money market mutual funds have that time, growing from $60 billion to $120 bil­ an artificial and continuing competitive advan­ lion. tage, so long as interest is not paid on reserve I would not suggest that the effectiveness of balances. Other things being equal, money funds monetary control has been crucially affected so would continue to expand more rapidly and their far. We have, however, had to make increasingly greater use as transaction accounts would be difficult judgments about the implications of this induced. Traditional intermediaries would con­ growth for the defined monetary aggregates. The tinue at a “permanent” disadvantage in attract­ prospect for continued rapid growth of shares, in ing some types of deposits, and small businesses money market funds, particularly should their and other borrowers dependent on thrift institu­ significance as transaction balances rise, as tions and non-money-center banks for credit seems likely, makes the issue much more point­ extensions might find funds more expensive, or ed. A clear logical case exists for closing a gap in less available, than otherwise. The increasing a monetary control system built on the premise use of money market funds for transaction pur­ that reserves should be assessed against transac­ poses would make interpretation of incoming tion balances wherever they might be held. Giv­ monetary data even more difficult, and the Fed­ en recent and prospective developments, the eral Reserve’s control over a true transaction point has strong practical, as well as logical, aggregate would erode. significance. If we are unwilling to cope with the At another extreme would be the imposition of problems raised by the growth of these instru­ stringent controls and regulations on the newer ments, we have to recognize and be prepared to instruments—placing the same regulatory con­ live with the consequences for the meaning and straints on them as now prevent banks and thrift control of particular monetary aggregates. institutions from responding fully to investors’ Competitive and equity considerations point in desires. For money market funds, this might the same direction. We should not be surprised entail subjecting them to interest rate ceilings, that money market fund assets rise relatively putting all their shares under reserve require­ rapidly when those funds do not bear regulatory ments, or restricting their investments. Imple­ costs associated with similar instruments in de­ menting this approach could make the money pository institutions. funds so unattractive that shareholders would abandon them in favor of a return to direct investment in money market instruments and POSSIBLE RESPONSES deposits at banks and thrift institutions. The resources available to depository institutions Faced with these concerns, lawmakers and regu­ would be greater, although their profitability lators have a number of possible responses open might not be benefited significantly because to them. One conceivable course is to do nothing much of the additional growth in deposits un­ at all—to let the market take its course within the doubtedly would be concentrated in those tied to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 Federal Reserve Bulletin □ July 1981 market rates. Any such inflow would be circum­ of interest payments on demand deposits, which scribed by the strong continuing incentive to find will still affect business customers, and the hold­ other methods to avoid the effects of regulations. ing of non-interest-earning reserves against Considering the ingenuity of markets, we can be transaction and nonpersonal time deposits. If full quite confident that it would not be too long competitive equity is to be sought by removing before this subcommittee would once again be restraints from banks and thrift institutions, the holding hearings to discuss extending regulations Congress would have to allow market forces to to new intermediaries or instruments. Moreover, determine returns on demand as well as time and this approach would significantly penalize some savings deposits. Reserve requirements, on the savers—reducing the returns available to them other hand, must be left in place to facilitate and the variety of instruments they can invest Federal Reserve control of the money stock. The in—at a time when concern is widespread about constraint of holding sterile reserves on the abili­ the inadequacy of savings flows in the economy. ty of banks and thrift institutions to compete for The effect of these actions on the aggregate level funds would have to be eliminated by congres­ of savings would not likely be large, but the sional sanction for the Federal Reserve to pay direction would be clear and could be interpreted market rates of interest on required reserves. as signalling a lack of concern about factors If all these actions were taken, banks and thrift tending to discourage savings. institutions would be in a far better situation to A third possible approach might be to provide meet competition. Newer instruments, such as for a greater degree of competitive equity among money market funds, would not lose their appeal institutions by reducing regulation of banks and entirely, but the potential for massive shifts into thrift institutions. With respect to interest rate these funds, causing their explosive growth and ceilings on time and savings deposits, such a attendant difficulties in defining and controlling course already has been legislated to occur over the money supply, would be greatly reduced. the next few years. Removal of these ceilings will However, I doubt that such changes are practi­ greatly enhance the ability of depository institu­ cally feasible over a relevant time period. More­ tions to compete with money market funds and over, we would still face a transition period of other innovative savings instruments. The speed some years. with which the deregulation can be accomplished has been constrained by the earnings positions of many institutions—that is, their holdings of lowyielding, longer-term assets will preclude their Recommended Approach soon being able to pay current market rates for a much larger share of their liabilities. That con­ The approach I am proposing is designed to straint will become less binding over time as provide a framework for fair competition be­ existing assets mature, and the Depository Insti­ tween money market funds and established de­ tutions Deregulation Committee (DIDC) has pository institutions over time, to protect against some leeway for permitting more competitive erosion in our ability to measure and control the instruments. The DIDC has several suggestions money stock, and to maintain attractive incen­ regarding the overall strategy of deregulation for tives for savings. The proposal does not under­ discussion at its meeting this afternoon. The mine the legitimate competitive role of money reality is that the condition of the thrift industry market funds, nor should it be viewed as “the limits the possible rapidity of prudent change, answer” to the immediate pressures on thrift but great progress can be made in this direction institutions. over time. Specifically, the logic of the situation points to We also must recognize that, even after inter­ legislation authorizing the Federal Reserve to est rate ceilings are liberalized, banks and thrift impose reserve requirements on those money institutions still will be subject to important market fund shares that in fact serve as the regulations that put them at a competitive disad­ functional equivalent of transaction balances, vantage relative to money market funds. Two of and to enforce a clearer distinction between the most significant of these are the prohibition transaction balances and other liquid savings. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 553 other words, we are requesting that the basic would be removed. These objectives are all fully premise of the Monetary Control Act be kept consistent with the philosophic framework of the intact by extending its reserve requirement pro­ Monetary Control Act. visions to encompass those money market mutu­ The approach proposed would in no way im­ al fund shares that provide the function of trans­ pair the returns available to individuals looking action balances. to money market mutual funds as an attractive In our implementation of the Monetary Con­ savings vehicle; such “nontransaction” ac­ trol Act, we have designated a transaction ac­ counts would not be subject to reserve require­ count as one that is accessible by check or debit ments. The fact is, even for those for whom the card or one that can be used with some frequen­ transaction characteristics are important, yields cy for third-party transfers by other means, such on transaction-oriented money market funds in as by telephone. The distinction between a trans­ current circumstances would still exceed those action account and other accounts payable on available on such accounts at other institutions. demand is inevitably difficult at the margin, and I There is no reason to believe that an approach believe the Federal Reserve should retain suffi­ along the lines of our proposal would lead to ciently flexible authority to put forward defini­ substantial shifts in the current distribution of tions to include the many new types of plans with funds among depository institutions and money transaction capability that are likely to be devel­ market funds, although one perverse regulatory oped. An example might include plans that in­ incentive to the use of these funds as transaction volve an integral coupling of a credit card and a balances would be removed. In time, as interest money market fund or other account, even if the rate ceilings are phased out and as the constella­ money market fund is accessed only once each tion of interest rates changes, the relative advan­ month to pay accumulated charges. tages and disadvantages of money market funds Our expectation would be that money market vis-a-vis depository institutions would reflect funds would react to the imposition of such market competition. Meanwhile, individuals and reserve requirements on shares that can be used businesses would be left with a full range of for transaction purposes by segregating such choices. accounts, subject to reserves, from accounts The implementation of our proposal—straight­ without “checking” privileges. Customers forward and simple in concept—would require would be offered a choice among types of funds, the resolution of some difficult definitional and with the “transaction balance” account offering other issues. Transaction accounts, as applied to a somewhat lower yield. During the short period money funds, would need to be precisely de­ last year when marginal reserve requirements fined. More broadly, given the rapid pace of were imposed on money market funds, fund innovation in our financial system and the blur­ managements demonstrated the feasibility and ring distinctions among institutions, we should relative ease of “cloning” their funds to accom­ recognize that other types of institutions may modate changes in the regulatory environment. also come to issue transaction-type accounts, Regulatory incentives to separate accounts particularly if the traditional institutions remain with transaction capabilities from those provid­ shackled by regulatory restraints and no interest ing a convenient and relatively liquid outlet for is paid on reserve balances. Our proposal is savings would have several beneficial conse­ confined to money market funds, in which quences. They would provide more positive growth and competitive disparities are so evident identification of the transaction component of at present. We recognize that other new develop­ money market fund shares for statistical and ments would eventually raise sensitive questions analytical purposes. Specifically, the “Ml” defi­ of monetary control and competitive equity. nition of money would be cleaner. Monetary That possibility will be reduced to the extent control would not be complicated by movements unnecessary constraints are removed from exist­ among different types of transaction accounts. ing institutions, but we will, in any event, need to As a matter of equity, one important artificial keep these developments under review. incentive favoring the use of money market Similar treatment of money market fund funds over traditional depository institutions shares and deposits for reserve requirement pur­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 Federal Reserve Bulletin □ July 1981 poses may raise the question of whether money without transaction privileges but were nonethe­ market funds might have access to Federal Re­ less immediately redeemable. serve services and to federal insurance on share The growth of these close substitutes for trans­ accounts. We do not believe that is either neces­ action balances has implications for the conduct sary or desirable. Reserve requirements are a of monetary policy since shifts between actual part of the apparatus of monetary control and, in transaction balances and these near-transaction one significant respect, would “level the playing balances can change the relationship between the field” in competition for transaction business. monetary target and spending patterns. At the However, those reserve requirements would not same time, excessive reliance on what are in otherwise impinge on the characteristics of the effect demand obligations by financial institu­ funds or on their investment portfolios. Banks tions may be an element of weakness in the and thrift institutions will be facing regulatory financial structure. ceilings on time and savings deposit rates for One approach to creating a more definitive line some time and on demand deposit rates for the between transaction and nontransaction ac­ foreseeable future. Their asset acquisitions and counts would be to encourage a practice that other operations must conform to a host of other intermediary claims not subject to transaction regulations, including, for instance, the Commu­ reserve requirements, significant price risk, or nity Reinvestment Act. In other words, in impor­ early-withdrawal penalties have either a fixed or tant respects depository institutions and money minimum maturity or a notice requirement—that funds are, and will remain, very different institu­ is, some minimum mandatory waiting period tions; comparable treatment with respect to re­ between a request for redemption and the receipt serve requirements does not, in our judgment, of funds, perhaps of a few days. Such a require­ require the same treatment in all respects; in­ ment would force savers to decide which funds deed, extending Federal Reserve services and they might want to have immediately available to federal insurance privileges to the funds would make purchases, and which they were putting seem to imply that we also take the further step away for longer periods. That approach—with of invoking the whole panoply of banking-type the exception of savings deposits, on which controls, a step that would seem clearly unneces­ payment on demand has long been the custom— sary and undesirable. has traditionally been embedded in banking prac­ Although our proposal addresses some of the tice and regulation. Market and competitive concerns generated by the growth of money pressures, however, seem to be working in the market mutual funds, we recognize that it does other direction. In my judgment, sound legisla­ not come fully to grips with a number of the tive and regulatory practice would encourage issues raised by the broader trends I discussed either notice or maturity requirements on non­ earlier in my testimony. For example, it does not transaction accounts, including any new short­ address the questions of limits on bank services term accounts authorized for established institu­ and geographical location. In addition, it does tions, and a similar approach would be relevant nothing to stem the movement toward shorter* for money market fund shares. term assets and liabilities and deals only partially with the resulting problem of differentiating transaction and nontransaction balances. Al­ Concluding Comments though it would treat those balances directly accessible by transaction instruments as transac­ I am struck, and in many respects encouraged, tion balances, it does little to distinguish such by the ability of our economic system to generate balances from very liquid short-term assets that new ideas and products to meet emerging needs. are nearly equivalent to transaction balances “New” is not, however, always synonymous because they can be converted almost instantly with constructive. When the motive of change is with little or no capital risk. Examples of such simply to escape from outmoded and unneces­ balances might include overnight repurchase sary regulation, the regulation should be agreements, savings accounts, and any varieties changed; when the regulatory principle is sound, of money market fund shares that might arise evasion should be prevented. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 555 Recent changes have in major part been stimu­ system and to the wisdom of allowing wide lated by the strong incentives growing out of high latitude for this system to operate. and variable interest rates. Those incentives As lawmakers and regulators, our responsibil­ should recede as we are successful in coping with ity is to see to it that this process of innovation inflation, but it may take some time for rates to does not impair the requirements of monetary decline and a more stable economic environment policy formulation and implementation, nor in­ to emerge. Moreover, advances in technology, terfere with the necessity to protect the safety greater freedom for international flows of funds, and soundness of the financial system and the and the new packages of financial services facili­ public’s confidence in it. The proposals I have tated by combinations of firms in different sec­ reviewed today should be viewed in that light— tors of the financial markets are likely to give rise not as a futile effort to turn back the clock, to to further rapid developments in instruments and discourage change, or to stifle a new institution, techniques whatever the course of inflation, the but rather to provide a framework within which economy, and interest rates. That they will do so change can be consistent with the continuing is testimony to the vitality of our free market needs of public policy. □ Statement by Lyle E. Gramley, Member, Board these developments, however, is perhaps better of Governors of the Federal Reserve System, understood from a longer-term perspective. Let before the Subcommittee on Monopolies and me therefore begin by reviewing some major Commercial Law of the Committee on the Judi­ trends in the financial services industry over the ciary, U.S. House of Representatives, July 8, past quarter-century. 1981. During that period, the rate of inflation has gone up sharply and has carried interest rates to I am pleased to be here today, on behalf of the ever-higher levels in its wake. The premium on Federal Reserve Board, to discuss issues of maximizing the returns earned on financial assets concern to this committee regarding recent merg­ has therefore been greatly increased. House­ ers within the financial services industry. News holds and businesses have paid increasing atten­ reports of recent and proposed affiliations sug­ tion to protecting the real value of their assets gest a rapid pace of change in the structure of this and have become increasingly sophisticated in industry. This committee is not alone in being cash management techniques. The rapid pace of concerned with these developments. Commer­ technological change in the computer and com­ cial banks and thrift institutions are uneasy about munications fields has contributed to these de­ the increasing incursions into their traditional velopments by opening new opportunities for domain. The Federal Reserve Board is also keen­ aggressive and competitive entrepreneurs to make ly interested for a number of reasons. It is one of innovations in financial services. And as econo­ the financial regulatory agencies charged—to­ mies of major nations have become increasingly gether with the Comptroller of the Currency and interlocked, pressures of foreign competition the Federal Deposit Insurance Corporation— have encouraged changes in financial institutions with responsibilities for preserving healthy com­ and the structure of financial markets. petition in the financial sector and for a safe and Because of the increased sophistication of sound banking system. In addition, it must be customers and their heightened sensitivity to alert to developments in financial markets that interest rate differentials, depository institutions have a bearing on its responsibilities for the can no longer expect an automatic flow of depos­ conduct of monetary policy. its into zero-interest checking and low-interest Public attention has recently been captured by passbook savings accounts. Consequently, these a few mergers of large firms in the financial institutions have sought to circumvent legislated services industry, and by announcements of affil­ or regulatory interest rate ceilings by more ex­ iations between brokerage firms and firms pro­ tensive use of liabilities not subject to ceiling, viding “bank-life” services. The significance of such as large, negotiable certificates of deposit, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 Federal Reserve Bulletin □ July 1981 or by offering imaginative new services, such as led to a diminution of alternatives available to automatic transfer accounts. New institutions, consumers. In fact, just the opposite has oc­ such as the money market mutual funds, have curred. A wide array of different types of retail also sprung up. Major regulatory changes—such brokerage firms have come into existence. Some as the authorization of money market certificates firms provide a complete line of products, includ­ (MMCs) in 1978 and the phasing out of deposit- ing investment research and advice. Others pro­ rate ceilings just announced by the Depository vide securities transaction services at sizable Institutions Deregulation Committee—have been discounts and very little else. The result has been made in response to these circumstances. As a an increase in the options available to the inves­ result, an enormous expansion has taken place in tor at lower prices. The investor can choose the variety of financial assets available to savers. between full service or limited services, high or As I noted earlier, technological advances are low commissions, massive investment research playing an important role in this changing struc­ or none at all. ture of the financial services industry. Without These developments in the brokerage industry advances in the computer and telecommunica­ help to explain the shrinking differentiation be­ tion industries, automatic transfer, pay-by- tween brokerage firms and other financial institu­ phone, and similar services would be prohibitive­ tions. They also illustrate that change and con­ ly expensive. Automation of data production and solidation may result in increased competition, transmission will continue to have a major role in new services, and lower prices for consumers in shaping the financial industry. An increasing the financial services industry. volume of financial transactions will be cleared Let me now turn to your question regarding electronically through automated clearing­ the possible effects of these trends on banks and houses, or transferred by wire. These technologi­ thrift institutions, and particularly on the smallcal developments will allow virtually instanta­ and medium-sized institutions. How will these neous flows of funds between financial institutions fare in a world of increased competi­ instruments and institutions at very low cost. tion? The record of the past two decades and Pressures to provide more and better financial longer, when competition among financial insti­ services have blurred the distinctions between tutions was steadily increasing, attests to the classes of financial institutions and between fi­ basic strength of our nation’s depository institu­ nancial and nonfinancial firms. This develop­ tions and their capacity to adapt to a changing ment is still far from complete. Differences re­ environment. main between banks and savings and loan Table 1 shows, for example, that banks sup­ associations, although these differences are nar­ plied 27 percent of the total credit borrowed by rowing. And the once-firm boundaries between the nonfinancial sector in the five years from depository institutions and other types of finan­ 1976 to 1980. This percentage is lower than the cial firms and between financial and nonfinancial share banks provided in the 1960s and in the first businesses are also weakening. The recent merg­ ers are, thus, one more illustration of a general trend that has been under way for a number of 1. Credit supplied to nonfinancial sectors as years. percentage of total borrowing by nonfinancial sectors1 Viewed from the perspective of securities mar­ Five-year averages kets, another important forerunner of recent affiliations between brokerage firms and other Mutual savings Commercial banks and financial institutions was the introduction of Period banks savings and Credit unions competitive brokerage rates on securities in loans 1975. This change reduced the profit margins on 1951-55 20.0 18.8 .9 1956-60 20.8 22.1 1.4 traditional lines of brokerage business and en­ 1961-65 31.4 23.3 1.2 couraged aggressive firms to diversify their ac­ 1966-70 . 31.2 13.1 1.4 1971-75 29.5 18.5 1.6 tivities. Some firms could not survive, and a 1976-80 26.9 15.6 1.6 substantial number of mergers have occurred in 1. Data based on annual flows, excluding equities. the brokerage industry. This has not, however, Source. Flow of funds data, Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 557 2. Acquisition of deposits from the household Further indication of the ability of commercial sector as percentage of total household banks to compete can be found in the history of acquisitions of deposits and credit market their earnings. Rates of return on assets and instruments1 equity capital for the banking industry are pre­ Five-year averages sented in table 3. For the industry as a whole, Mutual savings profitability has risen over the past 30 years. Commercial banks and Period banks2 savings and Credit unions Evidently, the commercial banking system has loans coped quite successfully with innovation and 1951-55............. 32.4 39.5 2.4 change. 1956-60 ........... 25.5 38.6 2.6 For most of the past decade, thrift institutions 1961-65 ........... 43.3 38.5 2.6 1966-70 ........... 43.3 22.8 2.6 also held their own (table 4); their earnings were 1971-75............. 39.1 34.3 3.4 1976-80 ........... 34.2 29.6 3.3 close to those of earlier periods. Earnings of thrift institutions, however, are very sensitive to 1. Data based on annual flows. 2. Includes demand, savings, and time deposits. changes in rates of interest. During the past year Source. Flow of funds data, Federal Reserve Board. or so, the combined effects of rapid increases in interest rates and the imbalance between the five years of the 1970s, but it is well above the 20 maturity of assets and liabilities of thrift institu­ percent share that prevailed in the 1950s. tions have sharply reduced earnings in the thrift The share of total credit supplied by mutual industry. Thrift institutions will be subject to savings banks, savings and loan associations, earnings problems until they are able to make and credit unions, on the other hand, has not more new, higher-yielding mortgage loans, and changed markedly during the past 15 years, but is in other ways to diversify their asset portfolios. below what it was in the 1950s and early 1960s. The share of total household savings in the 4. Net income to average assets for thrift institutions form of deposits and credit market instruments Five-year averages or annual data, in percent captured by commercial banks has also de­ creased from the level of the 1960s, as table 2 Period Savings and Mutual savings loans1 banks indicates. Again, however, this share is higher than it was in the 1950s. The thrift industry’s 1961-65 .......................... .80 .45 1966-70 .......................... .56 .30 share of household savings in these forms, how­ 1971-75............................ .65 .47 1976-80 .......................... .61 .40 ever, has declined over the 30-year period. These 1979.................................. .67 .47 1980................................. .14 -.10 data do not, of course, reflect the influence on deposit shares of negotiable order of withdrawal 1. Data for savings and loans insured by the Federal Savings and (NOW) accounts and share draft accounts. Loan Insurance Corporation before 1976. All savings and loans included for 1976 and later. Moreover, the gradual removal of Regulation Q Sources. National Association of Mutual Savings Banks and interest rate ceilings may help to reverse this Federal Home Loan Bank Board. downward trend at thrift institutions. The earnings experience of all banks or thrifts, 3. Profit data for commercial banks however, need not reflect the problems of small­ er institutions. Data for these smaller institutions Five-year averages in percent are more difficult to obtain but table 3 shows Net income to Net income to total total assets equity capital earnings of small banks over the past decade. Period Earnings were higher for the small banks in the All banks Small banks1 All banks Small banks1 second half of the decade than in the first, and 1951-55 .58 8.03 higher also than for large banks. Indeed, even 1956-60 ....... .68 8.50 1961-65 .... .72 8.80 ratios of earnings to capital for small banks 1966-70 . .78 10.80 1971-75. . . .83 .95 12.36 12 * 52 exceed those for large banks, despite the fact 1976-80 .78 1.06 12.56 13.16 that ratios of capital to assets of small banks are 1. Includes all banks insured by the Federal Deposit Insurance roughly double those of larger banks. Corporation with assets of less than $100 million and excludes new Other evidence also supports the view that banks in the year of their formation. Data not available before 1970. Source. Federal Reserve Board. small banks can survive in the current environ­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 Federal Reserve Bulletin □ July 1981 ment. For 1980, a detailed sample of small banks and choose between institutions, services, and shows that in 156 of 265 standard metropolitan pricing systems. For example, savers are able, statistical areas the smallest size category of more readily, to obtain market rates of return on banks in each area earned a higher average a larger part of their financial assets. Nationwide return on assets than the largest size group in expansion of NOW accounts carries this process each area. Thus, even in these large and highly another step by enabling households to receive competitive urban markets small banks have interest on checking accounts. At the same time, been competing effectively. consumers are learning to shop among institu­ How is it possible for a small bank with, for tions imposing different minimum balances and example, less than $100 million of assets to hold service charges. Previously, many of these its own against multi-billion-dollar banks? Part of charges were, in effect, netted against low or the answer is that relatively few economies of zero interest payments on accounts rather than large-scale operations exist in commercial bank­ appearing explicitly. ing. That conclusion has emerged from a number Similarly, financial services increasingly are of careful empirical studies. being unbundled. Rather than dealing with one In addition, small banks offer many of the institution for all services, the consumer has the unique services of the specialty shop. A custom­ option to deal with a variety of service vendors. er may be able to talk directly to the senior bank The services of a checking account may be officers, rather than to a branch manager who purchased from a commercial bank while the has limited decisionmaking power. Moreover, if saver has the option to place temporarily idle a customer requires a specialized bank service balances in a money market mutual fund and that cannot be supplied by the small bank direct­ obtain a consumer loan from yet another type of ly, arrangements can often be made to provide it financial institution. One-stop shopping may still through one of the small bank’s correspondents. appeal to many consumers, but other attractive I would hazard the guess that a substantial alternatives are available as well. demand will continue for the specialized services Can we be sure that these benefits extend to all that small banks provide. Consider for a moment classes of customers—including farmers, local the evidence from other industries. In the retail communities, minorities, and small businesses? trade sector, giant chain department stores offer Or will the needs of customers for credit and a wide range of products in outlets across the other financial services be neglected? The an­ nation. Also, small specialty shops offer one or swer to that question requires weighing benefits two product lines. Similarly, retail food outlets and costs. On the benefit side of the ledger, these differ markedly in their size and degree of spe­ specific groups of customers can expect to gain, cialization. And, although high rates of business much as consumers in general, from heightened births and deaths occur in retailing, many exam­ competition, from the ability to obtain market ples of competition exist among long-established rates of interest on financial assets, and from the stores of differing sizes. Yet another, more strik­ unbundling and more explicit pricing of services. ing illustration can be found in the steel indus­ In addition, business and household borrowers try—in which small firms, using new technology, generally can expect to gain because more and are able to compete effectively with industrial more banks are entering new market areas by giants both here and abroad. opening loan production offices, Edge Act affili­ Let me turn next to the question of how ates, and commercial lending subsidiaries. Also, consumers of financial services are affected by thrift institutions are beginning to offer types of recent trends. Thus far, consumers have clearly loans previously available primarily at commer­ benefited from the interwoven effects of product cial banks. innovation and institutional deregulation. More Recent changes in financial practices have also firms are competing in the sale of more financial altered significantly the way in which a limited services than before. Some of them are old-line supply of credit is allocated among potential financial firms; others are new or predominantly borrowers. Interest rates have increasingly re­ nonfinancial firms offering financial services. placed nonprice limitations as a means of ration­ The consumer has increased freedom to pick ing the available amount of credit. Before the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 559 authorization of money market certificates and What conclusions for antitrust policy flow the subsequent additional modifications in de­ from this assessment of developments in the posit interest rate ceilings, individuals would financial services industry? Let me point out, divert funds from depository institutions to mar­ first, that we see hundreds of mergers and acqui­ ket securities in periods of sharply rising interest sitions in banking each year. Fortunately, how­ rates. This shift in savings flows would result in a ever, hundreds of new banks are also estab­ sharply reduced availability of loans—for mort­ lished, and the number of banking organizations gage and construction financing, and for farmers, has changed little in the past decade. Actually, small businesses, and others. Recent regulatory the proportion of total bank deposits held by the changes and financial innovations have substan­ largest banks has declined slightly over the tially reduced the extent to which monetary years. restraint results in sharp reductions in the avail­ Will these highly publicized recent mergers ability of credit to particular borrowers. But this between nonbank financial firms squeeze out has been done at the expense of much higher competitors? To do so the merged firms must interest rates to these borrowers. first produce successful operational entities. It is This point can be illustrated as it relates to still too early to tell whether this development credit costs and availability to local communities will occur. Many mergers do not produce the and to the agricultural sector. Before the six- expected cost reductions or profit growth. The month MMCs were introduced in mid-1978, results are sometimes disappointing, even when small rural banks found that they often lost the merging firms produce the same or closely deposits to the pull of higher interest rates in the related products. In other cases, years elapse central money markets, and they sometimes had before the benefits of the merger are realized. difficulty in meeting the loan demands of their For example, in the 1960s great concern arose regular customers. The MMC has enabled agri­ about industrial conglomerates, but many of cultural banks to remain more competitive in the those conglomerate firms never achieved the market for savings—and it has played a particu­ expected profit results, and in some cases the larly important role in enabling rural banks to acquired firms were later divested. compete against money market mutual funds, The success of recent financial conglomerates which may tend to divert funds to urban areas. has yet to be proven. Can a salesperson in a By March of this year, slightly less than three brokerage office be as knowledgeable about years after it was introduced, the MMC account­ money market funds, life insurance, and real ed for 27 percent of the total resources of agricul­ estate as he is about stocks and bonds? That is tural banks. not clear. The specialist in each of these areas The shift into MMCs from passbook savings may have an advantage in information and expe­ and other low-rate instruments, however, has rience. In addition, the commission system may resulted in a marked increase in the average cost orient the salesperson toward his major product of funds at these banks, and it has made their rather than other less remunerative lines. costs much more responsive to swings in money Market factors frequently result in the market market rates. Consequently, farm loan rates share of a combitied firm being less than the sum have risen sharply and now tend to fluctuate in of the market shares of the merging firms. For response to changes in the overall level of inter­ example, the merger between American Express est rates. and Shearson may cause some banks to regard Thus, when financial markets provide savers American Express as a major competitor and to with more opportunities to earn market interest reduce their willingness to purchase services rates, credit flows more freely to borrowers. supplied to banks by American Express. More­ Financial markets operate more efficiently in over, if a particular merger is successful, new channeling funds to the highest bidder. But, entry by competitors into the most profitable when inflation pushes interest rates to extremely service lines will be encouraged. high levels, this market efficiency imposes se­ These considerations suggest that recent vere cost increases on those sectors of the econ­ trends in the structure of the financial services omy most dependent on credit. industry do not raise immediate alarms about the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 Federal Reserve Bulletin □ July 1981 resulting effects on the pricing and availability of financial institutions, on the one hand, and the financial services to the public. The developing advantages of unfettered competition, on the pattern of conglomerate mergers bears watching, other, may entail a different range of commercial but it is much too early to suggest a need for bank activities today than it appeared to permit policy actions. These developments do raise when the Glass-Steagall Act was passed in the questions for the Federal Reserve, however, 1930s. Similarly, the question of the appropriate regarding how to preserve equitable competition mix of activities now applies to the broader class among different types of financial institutions of institutions that provides bank-like services. while maintaining their safety and soundness and Finally, recent developments also have impli­ the effective operation of monetary policy. I cations for monetary policy. As Chairman would like to discuss these issues briefly. Volcker testified on June 25, measurement and One important question is how to achieve an control of the monetary aggregates are compli­ equitable environment for competition among cated by the existence of money market mutual commercial banks, thrift institutions, and other funds. The Board believes in the desirability of producers of financial services. The Monetary legislation authorizing the Federal Reserve to Control Act of 1980 set in motion some important impose reserve requirements on those money steps toward this goal. Reserve requirements will market fund shares that serve as the functional be adjusted so as ultimately to impose a uniform equivalent of transaction balances and to enforce requirement on all regulated institutions. The act a cleaner distinction between transaction bal­ also required the Federal Reserve to charge ances and other liquid savings. In addition, we explicit prices that cover costs for the financial believe the Federal Reserve should have the services it provides and to permit private firms to authority to define transaction accounts for pur­ compete with it in providing check-clearing and poses of reserve requirements so as to include other services. The schedule for phasing out the many new types of plans with transaction interest rate ceilings adopted by the Depository capability that may develop. Institutions Deregulation Committee at its June In concluding, I would like to emphasize that 25 meeting provides a program for adjusting the Board of Governors believes that recent interest rates to market levels. Now, institutions developments in the financial service industry can plan their full transition to the new deregulat­ have, on balance, enhanced competition despite ed environment. the other complicated regulatory questions they Banks and thrift institutions, nevertheless, re­ raise. These innovations are a sign of a healthy, main more closely regulated than other financial dynamic, and innovative financial sector. To be institutions with which they now compete. Ques­ sure, we need to monitor developments carefully tions arise concerning the constraints on geo­ to ensure that changes such as the recent con­ graphic expansion by depository institutions. glomerate mergers do not result in the develop­ When money funds and nonbank providers of ment of monopolies or monopoly power at some financial services can operate nationwide, is it future time. But the principal questions these equitable to restrain banks to states or smaller developments raise relate less to the maintenance areas? of competitive markets for financial services than Limitations on the securities underwriting ac­ to the need to provide a more level playing field for tivities of commercial banks and other similar depository institutions and their competitors, to limitations imposed by the Glass-Steagall Act maintain appropriate standards of prudence and may also need to be reexamined. A proper safety, and to ensure that the monetary controls of balance between the safety and soundness of the Federal Reserve are not undermined. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

561 Announcements Revision of Monetary Aggregates commercial banks. Much larger downward revi­ sions in demand deposits for the first five months The money stock and related series (shown in of 1981 reflect new reports of quarterly reporting tables 1.10 and 1.21, pages A3 and A13 in this banks. Bulletin) have been benchmarked to incorpo­ The other checkable deposit (OCD) compo­ rate data from recent call reports and other nent of Ml-B has been raised. The bulk of sources. In addition, traveler’s checks of non­ revisions before 1981 reflects more comprehen­ bank issuers, not previously included in the sive definitions and detail on OCD balances of series because of lack of data availability, have thrift institutions collected on MCA-related de­ been added to the historical series for Ml-A and posit reports. These changes affect historical the broader aggregates. This adjustment affects data back to the beginning of the series. Since growth rates only minimally. early 1981, the OCD series has been revised Data on commercial bank deposits have been further upward, as an increase in OCD at quar­ benchmarked to the June, September, and De­ terly reporting commercial banks more than off­ cember 1980 call reports. Moreover, daily depos­ set a downward revision in negotiable order of it data for foreign-related institutions—specifi­ withdrawal (NOW) accounts at savings and cally, U.S. agencies and branches of foreign loans. banks and Edge Act corporations—and for other Relatively minor downward revisions have checkable deposits at thrift institutions have been made in savings and small-denomination been incorporated. Such data have been reported time deposits. More substantial upward revisions since November 1980 as a consequence of the have been made in the large-denomination time Monetary Control Act of 1980 (MCA). Daily deposit series—especially in late 1980 and the deposit data of nonmember commercial banks first five months of 1981—which reflect primarily with deposits greater than $15 million had been new daily deposit data on large time deposits at incorporated at the time of the previous bench­ foreign-related institutions. Also, recently avail­ mark in January 1981. able MCA-related data on interinstitutional hold­ The current revision also incorporates new ings of demand deposits have led to revisions in data on deposits for institutions with total depos­ the Ml-B and M2 consolidation components. its between $2 million and $15 million as of The level of the narrow money stock has been December 1979. These institutions report such raised by the inclusion of traveler’s checks. data for one week each quarter, based on a Revisions in growth rates for the narrow money staggered schedule under which one-third of all stock—which have been greatest in early 1981— such institutions report each month. All of these primarily reflect other adjustments. Growth of smaller institutions reported in January 1981 and Ml-B in January and February has been lowered since that time one-third reported in March, while in April it has been raised. Quarterly another third in April, and the remaining third in average growth in shift-adjusted Ml-B in the first May. quarter of 1981 has been reduced nearly 2 per­ The benchmark has lowered the level of de­ centage points, to minus 3A percent at an annual mand deposits. Revisions for late 1979 and rate, and growth from the fourth quarter of 1980 1980—which at a maximum lowered monthly to May 1981 has been lowered 3A percentage levels $1 billion or about lA percent of Ml-B— point. The effects of the benchmark on M2 mainly reflect changes in demand deposit levels growth in 1981 have been quite small. Growth in of foreign-related institutions and nonmember M3 has been raised, by nearly Vi percentage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 Federal Reserve Bulletin □ July 1981 point, expressed annually, in the first quarter of ing offices will enhance the international compet­ 1981 and by 3A percentage point for the period itive position of banking institutions in the Unit­ from the fourth quarter of 1980 to May 1981. ed States. Benchmark revisions also have raised the level The Board made its action effective December of the broad measure of liquid assets, L. 3, 1981, in order to give all interested banking Revised historical data are available on re­ institutions time to make necessary arrange­ quest from the Banking Section, Board of Gover­ ments for implementation of IBFs. nors of the Federal Reserve System, Washing­ In amending its regulations respecting reserve ton, D.C., 20551. Seasonal factors for the new requirements and interest rate ceilings to permit traveler’s check component for 1981 are shown the establishment of IBFs, the Board made a in the accompanying table. general statement of policy regarding the use of IBF deposits and IBF loans. Seasonal factors for traveler’s checks, 1981 The policy statement said, in part: Month Seasonal factor The Board expects that, with respect to nonbank January....................................................................... .940 customers located outside the United States, IBFs will February......................................... ........................ .944 accept only deposits that support the customer’s oper­ March......................................................................... .945 April................................................. ........................ .943 ations outside the United States and will extend credit May................................................... ........................ .959 only to finance the customer’s non-U.S. operations. June................................................. ........................ 1.042 Deposits should not be used as a means of circumvent­ July............................................................................. 1.130 August............................................. ........................ 1.123 ing interest rate restrictions or reserve require­ September....................................... ........................ 1.065 ments. . . . October........................................... ........................ 1.012 November....................................... ........................ .959 December....................................... ........................ .937 This policy, the Board specified, must be communicated in writing to all IBF nonbank customers when a credit or deposit relationship is first established, and the Board supplied a Regulations D and Q: Amendments model statement that could be used for this purpose. In addition, IBFs are required to obtain The Federal Reserve Board has amended its acknowledgment of receipt of such notice from Regulations D (Reserve Requirements of Deposi­ nonbank customers that are foreign affiliates of tory Institutions) and Q (Interest on Deposits) to U.S. residents whenever a deposit or credit permit the establishment of international banking relationship is first established with an IBF. The facilities (IBFs) in the United States. Board also supplied a model statement for ac­ The Board acted after consideration of com­ knowledgment by the IBFs. ment received on its December proposal to re­ Under the rules established by the Board, vise its regulations to permit the establishment of IBFs may, free of federal reserve requirements IBFs. or interest rate limitations, do the following: IBFs may be established, subject to conditions 1. Offer to foreign nonbank residents time specified by the Board, by U.S. depository insti­ deposits with a minimum maturity, or required tutions, by Edge and Agreement corporations notice period prior to withdrawal, of two busi­ (domestically chartered corporations authorized ness days. Such deposit accounts require mini­ to engage in international or foreign banking, or mum deposits and withdrawals of $100,000. other international or foreign operations), and by 2. Offer time deposits to foreign offices of U.S. branches and agencies of foreign banks. U.S. depository institutions or foreign banks, to In general, under the rules adopted by the other IBFs, or to the parent institution of an IBF Board, an IBF may accept deposits from and with a minimum one-day (overnight) maturity. extend credit to foreign residents or other IBFs. 3. Extend credit to foreign residents (includ­ All such funds will be exempt from reserve ing banks), to other IBFs, or to the parent requirements of Regulation D and from interest institution of an IBF. rate limitations of Regulation Q. The Board IBF loans and deposits may be denominated believes that establishment of IBFs at U.S. bank­ either in U.S. dollars or in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 563 Advances by an IBF to U.S. offices of its advises the Board on its responsibilities regard­ parent institution will be subject to the reserve ing consumer credit protection legislation. The requirement on Eurocurrency liabilities of the Council generally meets four times a year. U.S. office in the same manner as advances from a foreign office to its U.S. office. IBFs will be subject to the same examination Changes in Board Staff and supervisory procedures as apply to other operations of its parent institution. The Board The Board of Governors has announced the may require special reports from IBFs for moni­ following staff changes. toring monetary and credit conditions and for William W. Wiles, Associate Director in the other purposes. Division of Banking Supervision and Regulation, named Secretary of the Board, effective June 15, 1981. Proposed Actions Larry J. Promisel, Assistant Director, Division of International Finance, promoted to Senior The Federal Reserve Board has published for Deputy Associate Director, effective June 22, comment two alternative proposed amendments 1981. to its Regulation T (Credit by Brokers and Deal­ Dale W. Henderson, Assistant Director, Divi­ ers) concerning margin requirements for trading sion of International Finance, appointed Deputy of options on government and government agen­ Associate Director, effective June 22, 1981. cy debt issues. The Board asked for comment by August 3, 1981. The Board has also announced the retirement The Board has also invited comment on a of Charles R. McNeill, Assistant to the General proposal to amend its Regulation Y (Bank Hold­ Counsel, on April 18, 1981. ing Companies and Change in Bank Control) to include the issuance of traveler’s checks in the list of nonbanking activities permissible for bank holding companies. The Board invited comment System Membership: by August 31, 1981. Admission of State Banks The Federal Reserve Board has proposed for comment amendments to Regulation G (Securi­ The following banks were admitted to member­ ties Credit by Persons Other Than Banks, Bro­ ship in the Federal Reserve System during the kers, or Dealers), Regulation T (Credit by Bro­ period June 11 through July 10, 1981: kers and Dealers), and Regulation U (Credit by Banks for the Purpose of Purchasing or Carrying Florida Margin Stocks) concerning margin requirements. Miami ............................................. Safra Bank The Board requested comment by September 15, New York 1981. New York .... Gotham Bank of New York Oklahoma Edmond ............. Citizens Bank of Edmond Meeting of Consumer Advisory Oregon Council North Bend .. Citizens Bank of North Bend Virginia The Federal Reserve Board has announced that Phenix ................Bank of Charlotte County its Consumer Advisory Council met on July 29 Richmond ... Consolidated Bank and Trust and 30, 1981. Company The Council, with 30 members who represent Wyoming a broad range of consumer and creditor interests, Riverton....................... Riverton State Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

565 Record of Policy Actions of the Federal Open Market Committee Meeting Held on May 18, 1981 put of business equipment and space and defense products exhibited con­ Domestic Policy Directive siderable strength. A strike cut pro­ The information reviewed at this duction of coal in half and limited the meeting suggested that growth of rise in the total industrial production real gross national product was index by about 0.3 percentage point. slowing in the current quarter from Nonfarm payroll employment the rapid pace in the first quarter, changed little in March and April but activity currently appeared after adjustment for strikes, and the stronger than had been projected at unemployment rate was stable at 7.3 the time of the Committee’s meeting percent. In April employment con­ on March 31. Real GNP had grown tinued to expand in service indus­ at an annual rate of 6V2 percent in the tries but declined considerably in first quarter, according to prelimi­ retail trade establishments and in nary estimates of the Commerce De­ construction. Small employment partment, and additional data that gains were recorded in the manufac­ became available after release of the turing sector, and the average fac­ preliminary estimates suggested that tory workweek edged up 0.1 hour to growth had been even more rapid. 40.1 hours. Average prices, as measured by the Private housing starts in March fixed-weight price index for gross remained at the annual rate of about domestic business product, have VA million units recorded in Febru­ continued to rise rapidly in the cur­ ary; during the preceding six rent quarter, but somewhat less so months, housing starts had been in a than earlier in the year. range of 1.4 million to 1.6 million The dollar value of total retail units. Sales of new homes in March sales increased slightly further in continued at the reduced pace of March but declined appreciably in recent months, and sales of existing April, reflecting mainly a sharp drop homes declined further. in sales of new cars in response to Producer prices of finished goods the ending of manufacturers’ price rose at an annual rate of W2 percent rebates. Unit sales of new automo­ in April, compared with an average biles fell from an annual rate of 10.3 rate of 12 percent during the first million units in March to 8.1 million quarter. The surge of energy prices units in April. The value of sales that had characterized earlier excluding automobiles and building months of the year abated in April, materials registered sizable gains in and prices of consumer foods were both March and April. unchanged. Prices of crude food­ The index of industrial produc­ stuffs, however, rose sharply. The tion, which had increased 0.5 per­ rise in the consumer price index cent in March, rose 0.4 percent in slowed in March, reflecting a slow­ April. An increase in auto assem­ ing in price increases of energy items blies, to a rate substantially above and continued moderate increases in the recent pace of sales, was a major food prices and homeownership factor in the April advance, and out­ costs. Prices of other consumer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 Federal Reserve Bulletin □ July 1981 items continued to rise at a relatively strained availability of reserves by rapid pace. Over the first four reducing excess reserves and by in­ months of 1981, the rise in the index creasing borrowings from the Feder­ of average hourly earnings of private al Reserve. In the two statement nonfarm production workers was weeks ending May 6, member bank slightly less rapid than the pace re­ borrowings averaged about $2.4 bil­ corded during 1980. lion, compared with an average of In foreign exchange markets the about $1 billion in the first three trade-weighted value of the dollar statement weeks after the meeting against major foreign currencies had on March 31; and the federal funds risen by about 8 Vi percent since the rate, which had averaged around final days of March to its highest 15 Vi percent in the first three weeks level in 3 Vi years. In March the U.S. of April, fluctuated within a range of trade deficit declined sharply, bring­ 17 to 20 percent in the last days of ing the first-quarter deficit to a level April and the first days of May. On well below the average in 1980. The May 4 the Board of Governors an­ value and volume of exports rose nounced an increase from 13 to 14 substantially from the fourth quar­ percent in Federal Reserve basic dis­ ter, and the value of imports in­ count rates and an increase from 3 to creased moderately. 4 percentage points in the surcharge At its meeting on March 31, the on frequent borrowings of large in­ Committee had decided that open stitutions. market operations in the period until In a telephone conference on May this meeting should be directed to­ 6, the Committee agreed that in the ward behavior of reserve aggregates brief period before the next regular consistent with growth in M-lB from meeting scheduled for May 18, the March to June at an annual rate of reserve path would continue to be 5 Vi percent or somewhat less, after set on the basis of the short-run allowance for the impact of flows objectives for monetary growth es­ into NOW accounts, and growth in tablished on March 31. It was recog­ M-2 at an annual rate of about 10 V2 nized that for a time monetary percent. If it appeared during the growth might be high in relation to period before the next regular meet­ those objectives and that the federal ing that fluctuations in the federal funds rate might continue to exceed funds rate, taken over a period of the upper end of the range indicated time, within a range of 13 to 18 for consultation. In the period re­ percent were likely to be inconsis­ maining until this meeting, bank re­ tent with the monetary and related serve positions remained under pres­ reserve paths, the Manager for Do­ sure, and federal funds typically mestic Operations was promptly to traded between 18 and 19 percent. notify the Chairman, who would Growth in M-1B, adjusted for the then decide whether the situation estimated effects of shifts into NOW called for supplementary instruc­ accounts, accelerated sharply in tions from the Committee. April to an annual rate of about 14 In the latter part of April, incom­ percent. But adjusted M-1B had ing data suggested that M-1B, after grown from the fourth quarter of adjustment for the estimated effects 1980 to the first quarter of 1981 at an of shifts into NOW accounts, was annual rate of only 1 percent, and its growing at a rate well above the level in April was well within the short-run objectives set forth by the Committee’s longer-run range for Committee. Consequently, required that aggregate. M-2 had continued to reserves increased more than the grow rapidly in April, and its level supply of reserves being made avail­ continued above the upper end of its able through open market opera­ longer-run range. Growth in the non­ tions. Banks adjusted to the con­ transaction component of M-2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 567 slowed markedly, however, as the erably greater strength in activity in total of savings and small-denomina- the first quarter than had been ex­ tion time deposits was about un­ pected, and they continued to stress changed and inflows into money the difficulties of economic forecast­ market mutual funds slowed. ing currently and the importance of Total credit outstanding at U.S. adhering to longer-term objectives. commercial banks registered a slight While generally anticipating a sub­ decline in March and grew at an stantial slowing of growth from the annual rate of about 4Vi percent in exceptionally rapid pace now indi­ April. Holdings of investments cated for the first quarter, a number changed little over the two months, of members expressed the view that and growth in loans, particularly expansion in activity over the rest of business loans, was quite weak. Net the year was likely to continue to issues of commercial paper by nonfi­ exceed the rates typically being fore­ nancial corporations declined in cast. The observation was made that April, following expansion at a rapid weakness in demands and activity pace in the first quarter. Issuance of appeared to be confined to a few publicly offered bonds remained sectors, albeit such major ones as heavy during April, and the volume housing and automobiles, and that of new equity offerings rose consid­ the risks of a significant decline in erably. overall activity appeared to be tem­ Short-term market interest rates pered by the prospect that some had risen substantially over the peri­ accumulated backlogs of demands od since the Committee’s meeting on would be activated whenever inter­ March 31: yields on Treasury bills est rates declined. It was also sug­ moved up 23A to 4 percentage points gested, on the other hand, that high while yields on private short-term and volatile interest rates could be­ market instruments increased 4V2 to gin to have a cumulative effect in 5lA percentage points. Most long­ dampening activity, and that little term interest rates rose to record was known about the effects of fi­ levels and on balance advanced nancial stress that might be develop­ about 1 percentage point. Over the ing. intermeeting interval, the prime rate At its meeting on February 2-3, charged by commercial banks on the Committee had adopted the fol­ short-term business loans was raised lowing ranges for growth of the mon­ in steps from 17 V2 percent to 19 V2 etary aggregates over the period percent. In home mortgage markets, from the fourth quarter of 1980 to the average rates on new commitments fourth quarter of 1981: M-l A and for fixed-rate loans at savings and M-1B, 3 to 5Vi percent and 3Vz to 6 loan associations rose above 16 per­ percent respectively, after adjust­ cent, from 15.40 percent at the end ment for the estimated effects of of March. flows into NOW accounts; M-2, 6 to The staff projections presented at 9 percent; and M-3, 6V2 to 9V2 per­ this meeting suggested that the surge cent. It was understood that the dis­ in growth of real GNP in the first torting effects of shifts into NOW quarter would be followed by much accounts would change during the slower growth over the rest of 1981. year and that other short-run factors The rise in the fixed-weight price might cause considerable variation index for gross domestic business in annual rates of growth from one product was projected to moderate month to the next and from one as the year progressed but neverthe­ quarter to the next. less to remain rapid. In the Committee’s discussion of In the Committee’s discussion of policy for the period immediately the economic situation and outlook, ahead, it was emphasized that on members commented on the consid­ March 31 the Committee had estab­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 Federal Reserve Bulletin □ July 1981 lished an objective for growth of gregates was already somewhat high M-1B (adjusted for the estimated ef­ relative to the Committee’s ranges fects of shifts into NOW accounts) for the year. The indications of some over the three months from March to slowing of the rise in the consumer June at an annual rate of 5V2 percent price index did not appear to reflect or somewhat less, and that growth in as yet any clear relaxation of under­ April had greatly exceeded that lying inflationary pressures, and em­ pace. According to a staff analysis, phasis was placed on the importance some retardation of M-1B growth of conveying a clear sense of re­ over the remaining two months of straint at a critical time with respect the quarter was to be expected, in to inflation and inflationary expecta­ light of the greater pressure on bank tions. reserve positions that had developed With respect to the federal funds recently and the apparent slowing of rate, it was again stressed that the growth in nominal GNP in the cur­ specification of an intermeeting rent quarter. But growth of M-1B range for fluctuations over a period over the two-month period would of time provided a mechanism for have to be negligible if the specifica­ initiating timely consultations be­ tions adopted on March 31 were to tween regularly scheduled meetings be realized. when it appeared that fluctuations The staff analysis also suggested within the specific range were prov­ that growth of M-2 would be less ing to be inconsistent with the objec­ rapid over the second quarter than tives for the behavior of the reserve had been anticipated earlier, reflect­ and monetary aggregates. The ing a slowing of growth in savings ranges proposed for the period deposits and small-denomination ahead typically were from 16 or 17 time deposits as well as continued percent to 21 or 22 percent. weakness in money market mutual At the conclusion of the discus­ funds. Thus, growth of the broader sion, the Committee decided to seek monetary aggregates might begin to behavior of reserve aggregates asso­ move down toward their target ciated with growth of M-1B from ranges for growth over the year from April to June at an annual rate of 3 the fourth quarter of 1980 to the percent or lower, after allowance for fourth quarter of 1981. the impact of flows into NOW ac­ In considering objectives for mon­ counts, and growth in M-2 at an etary growth over the remainder of annual rate of about 6 percent. A the quarter, the members in general shortfall in growth of M-lB from the agreed that a posture of restraint two-month rate of 3 percent would needed to be maintained. They gen­ be acceptable, in light of the rapid erally agreed with the view that it growth in April and the objective was particularly important to reduce adopted by the Committee on March growth of the monetary aggregates 31 for growth from March to June at rather quickly, and initial differences an annual rate of 5V2 percent or in views concerning the precise somewhat less. The members recog­ specifications for monetary growth nized that shifts into NOW accounts were relatively narrow. In the dis­ would continue to distort measured cussion, a number of points were growth in M-lB to an unpredictable emphasized. The indications of con­ extent and that operational paths tinuing strength in economic activity would have to be developed in the combined with the recent exception­ light of evaluation of those distor­ al rise in the income velocity of tions. The Chairman might call for money posed the risk of pressure for Committee consultation if it ap­ excessive expansion in money and peared to the Manager for Domestic credit as the year developed. Operations that pursuit of the mone­ Growth of the broader monetary ag­ tary objectives and related reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 569 paths during the period before the conditions that will help to reduce infla­ next meeting was likely to be associ­ tion, promote economic growth, and contribute to a sustaihable pattern of ated with a federal funds rate persis­ international transactions. At its meeting tently outside a range of 16 to 22 in early February, the Committee agreed percent. that these objectives would be furthered The following domestic policy di­ by growth of M-l A, M- IB, M-2, and M-3 from the fourth quarter of 1980 to the rective was issued to the Federal fourth quarter of 1981 within ranges of 3 Reserve Bank of New York: to 5Vi percent, 2>Vi to 6 percent, 6 to 9 The information reviewed at this meet­ percent, and 6V2 to W2 percent respec­ tively, abstracting from the impact of ing suggests that real GNP will grow introduction of NOW accounts on a na­ much less rapidly in the current quarter, tionwide basis. The associated range for following the substantial expansion in bank credit was 6 to 9 percent. These the first quarter; prices on the average ranges will be reconsidered as conditions have continued to rise rapidly, although warrant. somewhat less so most recently than In the short run the Committee seeks earlier in the year. The dollar value of behavior of reserve aggregates consis­ total retail sales increased slightly fur­ tent with a substantial deceleration of ther in March, but it declined apprecia­ growth in M-lB from April to June to an bly in April when sales of new cars fell in annual rate of 3 percent or lower, after response to the ending of price conces­ allowance for the impact of flows into sions. Industrial production rose moder­ NOW accounts, and with growth in M-2 ately in both months, while nonfarm at an annual rate of about 6 percent. The payroll employment changed little, after shortfall in growth of M-1B from the adjustment for strikes, and the unem­ two-month rate specified above would ployment rate was stable at 7.3 percent. be acceptable, in light of the rapid In March housing starts remained at a growth in April and the objective adopt­ reduced pace. Over the first four months ed by the Committee on March 31 for of 1981, the rise in the index of average growth from March to June at an annual hourly earnings was slightly less rapid rate of 5Yi percent or somewhat less. It is than during 1980. recognized that shifts into NOW ac­ The weighted average value of the counts will continue to distort measured dollar against major foreign currencies growth in M-1B to an unpredictable ex­ has risen steadily since the end of March tent, and operational reserve paths will to its highest level in three and a half be developed in the light of evaluation of years. The U.S. trade deficit declined those distortions. The Chairman may sharply in March, bringing the first-quar­ call for Committee consultation if it ap­ ter deficit to a level well under the 1980 pears to the Manager for Domestic Oper­ average. ations that pursuit of the monetary ob­ Growth in M-1B, adjusted for the esti­ jectives and related reserve paths during mated effects of shifts into NOW ac­ the period before the next meeting is counts, accelerated sharply in April and likely to be associated with a federal growth in M-2 remained rapid. Since funds rate persistently outside a range of March, both short-term and long-term 16 to 22 percent. market interest rates have risen substan­ tially. On May 4 the Board of Governors announced an increase in Federal Re­ Votes for this action: Messrs. serve discount rates from 13 to 14 per­ Volcker, Solomon, Boehne, Boykin, cent and an increase in the surcharge Corrigan, Gramley, Partee, Rice, from 3 to 4 percentage points on frequent Schultz, Mrs. Teeters, Messrs. Wal­ borrowings of large institutions. lich, and Winn. Votes against this ac­ The Federal Open Market Committee tion: None. (Mr. Winn voted as an seeks to foster monetary and financial alternate member.) s|e s|e sfc sfe 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

571 Legal Developments Amendments to Regulations D and Q (1) For a depository institution or an Edge or Agree­ ment Corporation organized under the laws of the Part 204—Reserve Requirements of Depository United States, the sum, if positive, of the following: Institutions (i) net balances due to its non-United States of­ fices and its international banking facilities Part 217—Interest on Deposits (“IBFs”) from its United States offices; (ii)(A) for a depository institution organized under International Banking Facilities the laws of the United States, assets (including participations) acquired from its United States The Board of Governors has amended Regulation D— offices and held by its non-United States of­ Reserve Requirements of Depository Institutions fices, by its IBF, or by non-United States (12 CFR Part 204) and Regulation Q—Interest on offices of an affiliated Edge or Agreement Cor­ Deposits (12 CFR Part 217) to authorize beginning poration;1 or December 3, 1981, the establishment in the United (B) for an Edge or Agreement Corporation, States of international banking facilities (“IBFs”) by assets (including participations) acquired from U.S. depository institutions, Edge and Agreement its United States offices and held by its non- Corporations, and branches and agencies of foreign United States offices, by its IBF, by non-United banks located in the United States. Under the rules States offices of its U.S. or foreign parent adopted by the Board, an IBF may accept deposits institution, or by non-United States offices of from foreign residents (including banks) or from other an affiliated Edge or Agreement Corporation;1 IBFs. Such funds will be exempt from reserve require­ and ments of Regulation D and from interest rate limita­ (iii) credit outstanding from its non-United States tions of Regulation Q. IBFs will be permitted to offer offices to United States residents (other than to foreign nonbank residents large denomination time assets acquired and net balances due from its deposits with a minimum maturity or required notice United States offices), except credit extended (A) period prior to withdrawal of at least two business from its non-United States offices in the aggregate days. In addition, IBFs will be permitted to offer amount of $100,000 or less to any United States overnight time deposits to foreign offices of U.S. resident, (B) by a non-United States office that at depository institutions or foreign banks, to other IBFs, no time during the computation period had credit foreign central banks, or to the institution establishing outstanding to United States residents exceeding the IBF. Funds raised by an IBF could be used only to $1 million, (C) to an international banking facility, extend credit to foreign residents, to other IBFs, or to or (D) to an institution that will be maintaining the institution establishing the IBF. Funds derived by reserves on such credit pursuant to this Part. an institution from its own IBF would be subject to Credit extended from non-United States offices or Eurocurrency reserve requirements. The Board be­ from IBFs to a foreign branch, office, subsidiary, lieves that the establishment of IBFs at U.S. banking affiliate or other foreign establishment (“foreign offices will enhance the international competitive posi­ affiliate”) controlled by one or more domestic tion of banking institutions located in the United corporations is not regarded as credit extended to States. a United States resident if the proceeds will be used to finance the operations outside the United 1. Effective December 3, 1981, Regulation D (12 CFR States of the borrower or of other foreign affiliates Part 204) is amended as follows: of the controlling domestic corporation(s). Section 204.2—Definitions 1 This subparagraph does not apply to assets (1) that were acquired * * * * * before October 7, 1979, or (2) that were acquired by an IBF from its establishing entity before the end of the fourth reserve computation (h) “Eurocurrency liabilities” means: period after its establishment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 Federal Reserve Bulletin □ July 1981 (2) For a United States branch or agency of a States of another depository institution orga­ foreign bank, the sum, if positive, of the following: nized under the laws of the United States or (i) net balances due to its foreign bank (including of an Edge or Agreement Corporation; offices thereof located outside the United States) (2) any office located outside the United and its international banking facility after deduct­ States of a foreign bank; ing an amount equal to 8 per cent of the following: (3) a United States office or a non-United the United States branch’s or agency’s total as­ States office of the entity establishing the sets less the sum of (A) cash items in process of IBF; collection; (B) unposted debits; (C) demand bal­ (4) another IBF; or ances due from depository institutions organized (5) an institution whose time deposits are under the laws of the United States and from exempt from interest rate limitations under other foreign banks; (D) balances due from for­ section 217.3(g) or Regulation Q (12 CFR eign central banks; and (E) positive net balances 217.3(g)); or due from its IBF, its foreign bank, and the foreign (ii)(A) that is payable bank’s United States and non-United States of­ (1) on a specified date not less than two fices; and business days after the date of deposit; (ii) assets (including participations) acquired from (2) upon expiration of a specified period of the United States branch or agency (other than time not less than two business days after the assets required to be sold by Federal or State date of deposit; or supervisory authorities) and held by its foreign (3) upon written notice that actually is re­ bank (including offices thereof located outside the quired to be given by the depositor not less United States), by its parent holding company, by than two business days prior to the date of non-United States offices or an IBF of an affiliated withdrawal; Edge or Agreement Corporation, or by its IBFs.1 (B) that represents funds deposited to the credit of a non-United States resident or a foreign 2. In section 204.2(t), footnote 1 is redesignated as branch, office, subsidiary, affiliate, or other footnote 2. foreign establishment (“foreign affiliate”) con­ trolled by one or more domestic corporations 3. Section 204.8 is redesignated section 204.9. provided that such funds are used only to support the operations outside the United 4. By adding a new section 204.8, as follows: States of the depositor or of its affiliates located outside the United States; and Section 204.8—International Banking Facilities (C) that is maintained under an agreement or arrangement under which no deposit or with­ (a) Definitions. For purposes of this Part, the follow­ drawal of less than $100,000 is permitted, ex­ ing definitions apply: cept that a withdrawal of less than $100,000 is permitted if such withdrawal closes an account. (1) International banking facility or IBF means a set of asset and liability accounts segregated on the (3) International banking facility extension of credit books and records of a depository institution, Unit­ or IBF loan means any transaction where an IBF ed States branch or agency of a foreign bank, or an supplies funds by making a loan, or placing funds in Edge or Agreement Corporation that includes only a deposit account. Such transactions may be repre­ international banking facility time deposits and in­ sented by a promissory note, security, acknowledg­ ternational banking facility extensions of credit. ment of advance, due bill, repurchase agreement, or any other form of credit transaction. Such credit (2) International banking facility time deposit or may be extended only to IBF time deposit means a deposit, placement, bor­ (i) any office located outside the United States of rowing or similar obligation represented by a prom­ another depository institution organized under the issory note, acknowledgment of advance, or similar laws of the United States or of an Edge or instrument that is not issued in negotiable or bearer Agreement Corporation; form, and (ii) any office located outside the United States of (i)(A) that must remain on deposit at the IBF at a foreign bank; least overnight; and (iii) a United States or a non-United States office (B) that is issued to of the institution establishing the IBF; (1) any office located outside the United (iv) another IBF; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 573 (v) an institution whose time deposits are exempt and recordkeeping and accounting requirements. Fail­ from interest rate limitations under section ure to comply with the requirements of this Part shall 217.3(g) of Regulation Q (12 CFR 217.3(g)); or subject the institution to reserve requirements under (vi) a non-United States resident or a foreign this Part and to interest payment limitations that may branch, office, subsidiary, affiliate or other for­ be applicable under Regulation Q (12 CFR Part 217) on eign establishment (“foreign affiliate”) controlled its IBF time deposits, or result in the revocation of the by one or more domestic corporations provided institution’s ability to operate an IBF. that the funds are used only to finance the opera­ tions outside the United States of the borrower or (f) Recordkeeping requirements. A depository institu­ of its affiliates located outside the United States. tion shall segregate on its books and records the asset and liability accounts of its IBF and submit reports (b) Acknowledgment of use of IBF deposits and exten­ concerning the operations of its IBF as required by the sions of credit. An IBF shall provide written notice to Board. each of its customers (other than those specified in § 204.8(a)(2)(i)(B) and § 204.8(a)(3)(i) through (v)) at 5. In sections 204.3(a), 204.3(a)(l)(ii), 204.3(a)(2)(ii), the time a deposit relationship or a credit relationship 204.3(c), 204.4(b)(1), 204.4(b)(l)(ii), 204.4(b)(2), is first established that it is the policy of the Board of 204.4(b)(2)(ii), 204.4(d), 204.4(g)(2)(ii)(A), 204.4(g)(2) Governors of the Federal Reserve System that depos­ (ii)(B), and 204.4(g)(2)(iii), references to sections its received by international banking facilities may “204.8,” “204.8(a),” or “204.8(b)” are redesignated be used only to support the depositor’s opera­ as references to sections “204.9,” “204.9(a),” or tions outside the United States as specified in “204.9(b),” respectively. § 204.8(a)(2)(ii)(B) and that extensions of credit by IBFs may be used only to finance operations outside Effective December 3, 1981, Regulation Q (12 CFR of the United States as specified in § 204.8(a)(3)(vi). In Part 217) is amended as follows: the case of loans to or deposits from foreign affiliates of U.S. residents, receipt of such notice must be Section 217.1—Definitions acknowledged in writing whenever a deposit or credit relationship is first established with the IBF. For purposes of this Part, the following definitions apply unless otherwise specified: (c) Exemption from reserve requirements. An institu­ tion that is subject to the reserve requirements of this (a) Demand deposit. The term “any deposit which is Part is not required to maintain reserves against its payable on demand,” hereinafter referred to as a IBF time deposits or IBF loans. Deposit-taking activi­ “demand deposit,” includes every deposit that is not a ties of IBFs are limited to accepting only IBF time “time deposit,” “international banking facility time deposits and lending activities of IBFs are restricted to deposit,” or “savings deposit,” as defined in this making only IBF loans. section. (d) Establishment of an international banking facility. (b) Time deposit. The term “time deposit” means A depository institution, an Edge or Agreement Cor­ “time certificates of deposit,” “time deposits, open poration or a United States branch or agency of a account,” and “international banking facility time foreign bank may establish an IBF in any location deposit,” as defined in this section. where it is legally authorized to engage in IBF busi­ ness. However, only one IBF may be established for each reporting entity that is required to submit a (1) International banking facility time deposit or Report of Transaction Accounts, Other Deposits and IBF time deposit means a deposit, placement, bor­ Vault Cash (Form FR 2900). rowing or similar obligation represented by a prom­ issory note, acknowledgment of advance, or similar (e) Notification to Federal Reserve. At least fourteen instrument that is not issued in negotiable or bearer days prior to the first reserve computation period that form and an institution intends to establish an IBF it shall notify (1) that is payable the Federal Reserve Bank of the district in which it is (A) on a specified date not less than two busi­ located of its intent. Such notification shall include a ness days after the date of deposit; statement of intention by the institution that it will (B) upon expiration of a specified period of comply with the rules of this Part concerning IBFs, time not less than two business days after the including restrictions on sources and uses of funds, date of deposit; or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 Federal Reserve Bulletin □ July 1981 (C) upon written notice that actually is required Section 220.6—Certain Technical Details to be given by the depositor not less than two business days prior to the date of withdrawal; (2) that represents funds deposited to the credit of a non-United States resident or a foreign branch, (j) Innocent mistakes. If any failure to comply with office, subsidiary, affiliate, or other foreign estab­ this part results from a mechanical mistake made in lishment (“foreign affiliate”) controlled by one or good faith in executing a transaction, recording, deter­ more domestic corporations provided that such mining, or calculating any loan, balance market price funds are used only to support the operations or loan value, or other similar mechanical mistake, the outside the United States of the depositor or of its creditor shall not be deemed guilty of a violation of this affiliates located outside the United States; and part if promptly after the discovery of such mistake he (3) that is held under an agreement or arrange­ takes whatever action may be practicable in the cir­ ment under which no deposit or withdrawal of less cumstances to remedy such mistake. than $100,000 is permitted, except that a with­ drawal of less than $100,000 is permitted if such (k) Credit related to portion of a security. Credit for withdrawal closes an account. the purpose of purchasing or carrying any part of an investment contract security (for example, but not * * * * * limited to, the cattle ownership portion of a program to own and feed cattle, or the condominium ownership Section 217.7—Maximum Rates of Interest part of a program to own and rent a unit through a Payable by Member Banks on Time and rental pool or otherwise) shall be deemed to be credit Savings Deposits on the entire security. (a) Time deposits of $100,000 or more and IBF time Bank Holding Company and Bank Merger deposits. There is no maximum rate of interest pres­ Orders Issued by the Board of Governors ently prescribed on any time deposit of $100,000 or more or on IBF time deposits issued under section Orders Under Section 3 of Bank Holding 217.1(1). Company Act Buhl Bancorporation, Inc., Buhl, Minnesota Amendment to Regulation T Order Denying Formation of a Bank Holding Part 220—Credit by Brokers and Dealers Company Amendment to Delete Provision Permitting Use Buhl Bancorporation, Inc., Buhl, Minnesota, has ap­ of Foreign Currency in a Margin Account plied for the Board’s approval under section 3(a)(1) of the Bank Holding Company Act (12 U.S.C. The Board of Governors has amended its Regulation T § 1842(a)(1)) of formation of a bank holding company (12 CFR § 220) to delete the paragraph permitting the by acquiring 95.1 percent of the voting shares of The use of foreign currency in a margin account. It has First National Bank of Buhl, Buhl, Minnesota been called to the Board’s attention that the existing (“Bank”). language of section 220.6, paragraph (j) may permit the Notice of the application, affording opportunity for speculative holding of foreign currency and securities interested persons to submit comments and views, has in a margin account. By deleting section 220.6, para­ been given in accordance with section 3(b) of the Act. graph (j), the Board clarifies that such a possibility is The time for filing comments and views has expired, prohibited and that such transactions in foreign cur­ and the Board has considered the application and all rency should be effected in the Special Commodities comments received in light of the factors set forth in Account or the Special Miscellaneous Account, since section 3(c) of the Act (12 U.S.C. § 1842(c)). in either case, they would be insulated from securities Applicant, a nonoperating corporation with no sub­ credit transactions. sidiaries, was organized for the purpose of becoming a Effective July 13, 1981, the Board of Governors has bank holding company by acquiring Bank, which holds amended Section 220.6 by deleting paragraph (j) in its deposits of $5.3 million.1 Upon acquisition of Bank, entirety, and redesignating paragraphs (k) and (1) as paragraphs 0) and (k) respectively. 1. All banking data are as of September 30, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 575 Applicant would control the 551st largest bank in tainty inherent in relying upon earnings projected a Minnesota and would hold approximately 0.02 percent number of years into the future premised upon the of the total commercial bank deposits in the state. short earnings cycle under present management, Bank is the 13th largest of 15 banking organizations makes it difficult for the Board to conclude that this in the relevant banking market and holds approximate­ proposal warrants approval. Accordingly, based on ly 1.2 percent of the total deposits in commercial the record with respect to this proposal, the Board banks in the market.2 While a principal of Applicant concludes that Bank is unlikely to generate sufficient and Bank is also a principal in another banking organi­ earnings to enable Applicant to service its debt while zation, it does not compete in the relevant banking maintaining adequate capital in Bank, as well as af­ market. It appears from the facts of record that fording Applicant the flexibility to meet any unfore­ consummation of the proposal would not result in any seen problems that might arise at Bank. While Bank adverse effects upon competition or increase the con­ has shown considerable improvement under Bank’s centration of banking resources in any relevant area. present management, and managerial considerations Accordingly, the Board concludes that competitive may be viewed as lending weight for approval, it is the considerations are consistent with approval of the Board’s judgment that Applicant’s principals, never­ application. theless, have not established a sufficiently long record The Board has indicated on previous occasions that of performance at Bank to mitigate the significant a holding company should serve as a source of finan­ adverse financial considerations associated with the cial and managerial strength to its subsidiary bank(s), application. Accordingly, the Board is of the opinion and that the Board would closely examine the condi­ that the considerations relating to financial resources tion of an applicant in each case with this consider­ and future prospects of Applicant and Bank weigh ation in mind. In this case it is the Board’s judgment significantly against approval of the application. that the record with respect to this proposal presents No significant changes in services offered by Bank adverse financial considerations that warrant denial of are expected to follow from consummation of the the application. proposed transaction. Consequently, convenience and With regard to financial considerations, the Board needs factors are consistent with, but lend no weight notes that in connection with this proposal Applicant toward, approval of this application. would incur a sizable debt, which it proposes to On the basis of the above and all the facts of record service over a 16-year period through dividends to be on this application, the Board concludes that the declared by Bank, tax savings to be derived from filing banking considerations associated with this proposal consolidated tax returns, and projected improvements present significant adverse factors bearing upon the in Bank’s earnings. The reliability of Applicant’s pro­ financial resources and future prospects of Applicant jections of Bank’s deposits and earnings growth, and Bank. Such adverse factors are not outweighed by which bear on Bank’s future capital needs, is of any procompetitive effects or by benefits to the conve­ considerable importance. Applicant anticipates reach­ nience and needs of the community to be served. ing a debt-to-equity ratio of less than 30 percent by the Accordingly, it is the Board’s judgment that approval end of the twelfth year, while maintaining an adequate of the application would not be in the public interest capital level in Bank. In this regard, the Board is of the and that the application should be denied. view that Applicant’s overall projections, which are On the basis of the facts of record, the application is based on Bank’s recent performance, are somewhat denied for the reasons summarized above. optimistic. The Board notes that since the acquisition By order of the Board of Governors, effective of Bank by Applicant’s principal in August 1978, June 25, 1981. Bank’s overall operations have improved. However, it is the Board’s judgment that Bank has not demonstrat­ Voting for this action: Vice Chairman Schultz and Gover­ ed a favorable record of performance over a sufficient­ nors Rice and Teeters. Voting against this action: Governor ly long period of time to support Applicant’s projec­ Gramley. Absent and not voting: Chairman Volcker and tions. Specifically, Applicant’s projections of Bank’s Governors Wallich and Partee. earnings appear to be overly optimistic, while its projections of growth are unrealistically low; this is (Signed) James M cAfee, particularly apparent when compared to the earnings [seal] Assistant Secretary of the Board. and growth of the other banks located in Bank’s FDIC area, as well as the earnings and growth of Applicant’s Dissenting Statement of Governor Gramley affiliated banking organization. Moreover, the uncer­ In light of recent improvements in Bank’s overall condition under Applicant’s management and control, 2. The relevant banking market is approximated by St. Louis County less its southern one-third and northwestern one-eighth parts. I would approve this application. Prior to Applicant’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 Federal Reserve Bulletin □ July 1981 acquisition of Bank in 1978, Bank was in an unsatisfac­ Trust Company, Saugus, Massachusetts; Security Na­ tory condition. Applicant’s principal borrowed funds tional Bank, Lynn, Massachusetts; and Northeast to purchase Bank and to increase Bank’s capital. National Bank, Amesbury, Massachusetts (collective­ Within a two-year period, Bank’s condition has im­ ly referred to as “Protestant Banks”), in light of the proved significantly: net earnings have risen substan­ factors set forth in section 3(c) of the Bank Holding tially, and the ratio of classified assets to capital has Company Act. In addition to the numerous objections fallen. Although Applicant’s projections may be opti­ to this proposal interposed by MURAG and Protestant mistic, they do not seem unrealistically so in light of Banks, MURAG has requested that the Board order a Bank’s recent performance. Also, I note that Appli­ formal hearing on the Community Reinvestment Act cant’s principal has committed to inject his personal (“CRA”) issues raised by this application. resources into Bank, if it becomes necessary, to With regard to MURAG’s request for a hearing, maintain Bank’s capital-to-asset ratio at an adequate neither the CRA, nor section 3(b) of the Bank Holding level. Unless Applicant’s projections are widely at Company Act requires the Board to hold a formal variance with actual developments, moreover, the hearing concerning an application, except when the amount of his personal resources needed for this appropriate banking authority makes a timely written purpose would be small relative to what Applicant’s recommendation of denial of an application. In this principal has already invested in Bank. case, no such recommendation has been received from This commitment by Applicant’s principal, his dem­ the Comptroller of the Currency and thus, no formal onstrated managerial abilities, and the recent improve­ hearing is required. After considering the record of ment in Bank’s condition are, in my judgment, ade­ this application, the Board has determined that quate safeguards to protect Bank. I therefore conclude MURAG’s objections do not present any material that applicant should be given the opportunity to factual differences, but, rather concern the interpreta­ consummate its proposal. tion or significance that should be accorded to certain facts in the record, judgments that the Board is June 25, 1981 charged by statute with making.1 Inasmuch as all parties have been afforded the opportunity to present their arguments in written submissions to the record, First National Boston Corporation, the Board has determined that MURAG’s objections Boston, Massachusetts do not warrant a hearing, and that its request for a formal hearing should be denied. Accordingly, the Order Approving the Acquisition of a Bank Board will proceed to consider the merits of the application, including the objections raised by First National Boston Corporation, Boston, Massa­ MURAG, as well as Protestant Banks. chusetts, a bank holding company within the meaning Applicant, the largest commercial banking organiza­ of the Bank Holding Company Act, has applied for the tion in Massachusetts, controls nine domestic banking Board’s approval under section 3(a)(3) of the Bank subsidiaries with aggregate deposits of $4.2 billion, Holding Company Act (12 U.S.C. § 1842(a)(3)) to representing 22.5 percent of the total commercial bank acquire 100 percent of the voting shares, less direc­ deposits in the state.2 Acquisition of Bank, with de­ tors’ qualifying shares, of the successor by merger to posits of $39.8 million, would increase Applicant’s The Haverhill National Bank, Haverhill, Massachu­ share of commercial bank deposits in Massachusetts setts (“Bank”). The bank into which Bank is to be by 0.2 percent. Thus, consummation of the proposal merged has no significance except as a means to would not have a significant effect upon concentration facilitate the acquisition of the voting shares of Bank. of banking resources in Massachusetts. Accordingly, the proposed acquisition of shares of the Bank, with seven banking offices, is the thirtieth successor organization is treated herein as the pro­ largest of 73 commercial banking organizations in the posed acquisition of shares of Bank. Boston banking market,3 and holds 0.3 percent of the Notice of the application, affording an opportunity for interested persons to submit comments and views, has been given in accordance with section 3(b) of the 1. In this regard, the Board notes that Protestant Banks, MURAG Act. The time for filing comments and views has and Applicant have had ample opportunity to resolve any material expired and the Board has considered the application factual differences concerning issues similar to those raised in this case during hearings conducted by the Massachusetts Board of Bank and all comments received, including those of the Incorporation (“Massachusetts Board”) on August 12, September 4, Massachusetts Urban Reinvestment Advisory Group, and September 17, 1980. 2. All banking data are as of June 30, 1980. Inc., Boston, Massachusetts (“MURAG”); Essex- 3. The Boston banking market, which is approximated by the bank, Peabody, Massachusetts; Saugus Bank and Boston Ranally Metro Area, extends over the entire east coast of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 577 commercial bank deposits in the market. With five (12 U.S.C. § 2901) and Regulation BB (12 C.F.R. subsidiary banks, Applicant is the largest banking § 228). In so doing, the Board has examined the organization in the Boston banking market. Applicant objections of MURAG relating to Applicant’s record has total market deposits of $3.8 billion, representing of performance with respect to CRA factors, and 27.9 percent of the total commercial bank deposits. particularly Applicant’s lead bank, First National Protestant Banks contend that the proposed acquisi­ Bank of Boston. In approving a recent acquisition by tion would eliminate substantial existing competition, Applicant, the Board had occasion to consider the and claim that it would substantially increase Appli­ merits of MURAG’s objections, which were essential­ cant’s domination of banking resources in the market. ly identical to those presented in this case. Inasmuch Inasmuch as Applicant and Bank operate in the as MURAG’s objections to this application and to the same banking market, consummation of the proposed Applicant’s prior acquisition were entered at the same transaction will result in the elimination of some time, and MURAG has not raised any additional issues existing competition between the two. In general, the or presented any significant new evidence, the Board Board views with great concern any acquisition by finds that MURAG’s specific claims are without merit Applicant of another competitor in the Boston banking for the reasons cited in the Board’s recent order market. However, based on the facts of record in this approving Applicant’s acquisition of The Country application, the Board regards Bank as only a marginal Bank, National Association, Shelburne Falls, Massa­ competitor, particularly in view of Bank’s limited chusetts.5 Moreover, based on findings of the Comp­ financial and managerial resources, and the circum­ troller of the Currency with respect to First National scribed range of services it offers to banking customers Bank of Boston, as well as Applicant’s other subsidiar­ in the Haverhill area. Moreover, while consummation ies, the Board finds Applicant’s record of performance of the proposal would increase Applicant’s share of under CRA to be satisfactory. market deposits to 28.2 percent, the Board notes that With respect to other convenience and needs con­ Applicant’s share of market deposits has decreased siderations, the Board notes that Bank’s affiliation over the past several years.4 Accordingly, based on with Applicant will enhance Bank’s otherwise limited the record in this application, including Bank’s unique ability to serve the convenience and needs of the competitive position in the Boston banking market, it Haverhill community. For example, Applicant will is the Board’s judgment that the overall effects of this cause Bank to raise the interest paid on regular pass­ proposal on competition are not so serious as to book savings accounts and 90-day notice passbook warrant denial of the application. accounts to the legal maximum. It will also cause Bank The financial and managerial resources of Applicant to provide overdraft protection on NOW accounts. In and its subsidiaries are considered satisfactory, and addition, Applicant will introduce 90 percent mort­ their future prospects appear favorable. The financial gages to Bank’s customers and Bank’s residential and managerial resources of Bank are generally satis­ mortgage portfolio will be substantially increased. factory, and in the Board’s judgment its future pros­ Finally, affiliation with Applicant will enable Bank to pects will be enhanced as a result of its acquisition by develop its services to commercial customers, as well Applicant. as trust services. In the Board’s view, the benefits to In considering the effects of the proposed acquisi­ the public that may be expected from consummation tion on the convenience and needs of the community of the proposed transaction, including banking factors to be served, the Board has considered the record of and convenience and needs considerations, are favor­ Applicant’s banking subsidiaries in meeting the credit able and lend sufficient weight toward approval of the needs of their communities, as provided in the CRA application to outweigh any adverse effects on compe­ tition that may result. Accordingly, it is the Board’s judgment that the Massachusetts, except Cape Cod, as well as portions of Southern New Hampshire. The market includes the major metropolitan areas of proposed transaction would be in the public interest Boston, Brockton, Lowell and Lawrence—Haverhill, and encom­ and that the application should be approved for the passes Suffolk County, Essex County, most of Middlesex, Norfolk and Plymouth Counties, and small segments of Worcester and Bristol reasons summarized above. This transaction shall not Counties, Massachusetts. Bank is located on the northern fringe of the be made before the thirtieth calendar day following the market, approximately 40 miles from Boston, the market’s center. effective date of this Order, or later than three months 4. The Board also has evaluated the impact of thrift institutions within the Boston banking market. Although thrifts are numerous in from the effective date of this Order, unless such the market and in some cases hold large deposits, the Board is of the period is extended for good cause by the Board, or the opinion that thrift institutions do not compete actively with commer­ Federal Reserve Bank of Boston, pursuant to delegat­ cial banks over a sufficient range of financial services to consider them full competitors of commercial banks. Nevertheless, the relative size ed authority. and nature of their operations are such that the Board regards their presence in the market as a mitigating factor to reduce the effects on competition that would result from this proposal. 5. 67 Federal Reserve Bulletin 253 (1981). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 Federal Reserve Bulletin □ July 1981 By order of the Board of Governors, effective tiate Haverhill National from numerous other small June 4, 1981. banks in the Boston market. Approval, therefore, will set a precedent enabling Applicant to acquire a large Voting for this action: Vice Chairman Schultz and Gover­ number of the remaining healthy independent banks nors Partee and Gramley. Voting against this action: Gover­ with market shares less than that of Haverhill nors Teeters and Rice. Absent and not voting: Chairman National. Volcker and Governor Wallich. In light of these considerations, we would deny this application. (Signed) James M cAfee, [seal] Assistant Secretary of the Board. June 4, 1981 Dissenting Statement of Governors Teeters and Rice San Saba National Corporation, We would deny the application by First National San Saba, Texas Boston Corporation to acquire The Haverhill National Bank. We believe that consummation of the proposal Order Denying Formation of a Bank Holding would have substantially adverse competitive effects, Company entrenching the position of a banking institution that already dominates both the state and the local banking San Saba National Corporation, San Saba, Texas, has market, eliminating a viable independent competitor, applied for the Board’s approval under section 3(a)(1) and setting the stage for additional acquisitions by of the Bank Holding Company Act (12 U.S.C. Applicant within the Boston banking market. More­ § 1842(a)(1)) of formation of a bank holding company over, in our judgment, the record of this proposal does by acquiring at least 80 percent of the voting shares of not demonstrate that the increased benefits to the The San Saba National Bank, San Saba, Texas. convenience and needs of the community to be served Notice of the application, affording an opportunity will be sufficient to offset its overall adverse competi­ for interested persons to submit comments and views, tive effects. has been given in accordance with section 3(b) of the We are concerned that the majority’s decision may Act. The time for filing comments and views has encourage Applicant, as well as other large bank expired, and the Board has considered the application holding companies in Massachusetts and elsewhere, to and all comments received in light of the factors set eschew reasonable branching alternatives in the belief forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). that the Board will approve less competitive horizontal Applicant, a nonoperating corporation with no sub­ acquisitions. In this case, we note that Applicant is not sidiaries, was organized for the purpose of becoming a prohibited by law from branching into the Haverhill bank holding company by acquiring Bank, which holds area, and we believe that it would be preferable for deposits of $15.6 million.1 Upon acquisition of Bank, Applicant to enter by that means. Applicant would control the 674th largest bank in Applicant is a dominant banking institution in the Texas and would hold approximately 0.02 percent of Boston banking market, where it controls approxi­ the total deposits in commercial banks in the state. mately 28 percent of the commercial bank deposits, Bank is the smaller of two banking organizations in twice that of its largest competitor. Even if thrift the relevant market and holds 49.2 percent of the total deposits were included with those of commercial deposits in commercial banks in the market.2 It ap­ banks, Applicant’s share of total deposits would still pears from the facts of record that consummation of be twice that of its largest competitor. Because of its the proposal would not result in any adverse effects dominant position, Applicant’s acquisitions within the upon competition, or increase the concentration of market historically have been restricted either to se­ banking resources in any relevant area. Accordingly, verely financially troubled institutions, or to banks the Board concludes that competitive considerations located outside its branching area. Allowing Applicant are consistent with approval of the application. to acquire a healthy bank within its branching area The Board has indicated on previous occasions that constitutes a radical departure from established poli­ a holding company should serve as a source of finan­ cies. Such a departure could spark a new trend in cial and managerial strength to its subsidiary banks, Applicant’s expansion strategy, since the mitigating and that the Board would closely examine the condifactors in this case that is, the relatively small size of Bank, its location on the fringe of the Boston market, its lackluster performance, and the presence of numer­ 1. All banking data as of December 31, 1979. 2. The relevant banking market is the San Saba banking market, ous thrifts in the market, are not sufficient to differen­ which is approximated by San Saba County, Texas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 579 tion of an applicant in each case with this consider­ Order Under Section 4 of Bank Holding ation in mind. In this case, the Board concludes that Company Act the record presents adverse considerations that war­ rant denial of the proposal to form a bank holding First Maryland Bancorp., coippany. Baltimore, Maryland With regard to financial considerations, the Board notes that Applicant would incur a sizable debt in Order Approving Formation of First Maryland connection with this proposal. Applicant proposes to Cheque Corporation service this debt over a 12-year period through divi­ dends to be declared by Bank, and tax savings to be First Maryland Bancorp., Baltimore, Maryland, a derived from filing consolidated tax returns. Applicant bank holding company within the meaning of the Bank has also proposed a capital injection for Bank as a part Holding Company Act (“Act”), has applied for the of its acquisition of Bank. Applicant anticipates that Board’s approval, under section 4(c)(8) of the Act this capital injection, its projected improvements in (12 U.S.C. § 1843(c)(8)), and section 225.4(b)(2) of the Bank’s assets, asset growth and earnings, and certain Board’s Regulation Y (12 C.F.R. § 225.4(b)(2)), to management and policy changes would allow Appli­ engage through its de novo subsidiary, First Maryland cant to service its acquisition debt while maintaining Cheque Corporation (“Corporation”), in the issuance an adequate capital level in Bank. However, in light of and sale of travelers checks. Bank’s historical performance and other facts of re­ The retail sale of travelers checks as proposed by cord, Bank’s earnings and growth projections appear Applicant is included on the Board’s list in Regulation optimistic. It is the Board’s view that Bank is unlikely Y of permissible activities for bank holding companies to have sufficient actual earnings to enable Applicant (12 C.F.R. § 225.4(a)(13)). While the Board has not to service its debt while maintaining adequate capital amended its Regulation Y to include the issuance of in Bank, as well as affording Applicant the flexibility to travelers checks as a permissible activity,1 in connec­ meet any unforeseen problems that might arise at tion with six earlier applications the Board determined Bank. Accordingly, the Board is of the opinion that the by order that the activity of issuing travelers checks is considerations relating to financial and managerial closely related to banking and would be in public resources and future prospects lend weight toward interest. Seafirst Corporation, 67 Federal Reserve denial of the application. B ulletin 517 (1981); The Chase Manhattan Corpora­ No significant changes in the services offered by tion, 66 Federal Reserve B ulletin 983 (1980); First Bank are expected to follow from consummation of Chicago Corporation, 65 Federal Reserve B ulle­ the proposed transaction. Consequently, convenience tin 937 (1979); Citicorp, 65 Federal Reserve B ul­ and needs factors are consistent with, but lend no letin 666 (1979); BankAmerica Corporation, 59 Fed­ weight toward, approval of this application. eral Reserve B ulletin 544 (1973); and Republic of On the basis of the circumstances concerning this Texas Corporation, 62 Federal Reserve B ulletin application, the Board concludes that the banking 630 (1976). As noted in these earlier Board decisions, considerations involved in this proposal present ad­ banks have, in fact, engaged in the issuance of travel­ verse factors bearing upon the financial and manageri­ ers checks, and generally have engaged in activities al resources and future prospects of Applicant and that are operationally and functionally similar to the Bank. Such adverse factors are not outweighed by any proposed activity. Accordingly, the Board has deter­ procompetitive effects, or by benefits that would result mined that issuing travelers checks as Applicant pro­ in better serving the convenience and needs of the poses is clearly related to banking.2 community. Accordingly, it is the Board’s judgment Notice of application, affording interested persons that approval of the application would not be in the an opportunity to submit comments and views on the public interest and the application should be denied. public interest factors, has been duly published (46 On the basis of the facts of record, the application is Federal Register 26,177 (1981)). The time for filing denied for the reasons summarized above. comments and views has expired, and the Board has By order of the Board of Governors, effective considered the application and all comments received June 30, 1981. Voting for this action: Chairman Volcker and Governors Schultz, Teeters, Rice, and Gramley. Absent and not voting: 1. The Board has published for comment in the Federal Register a Governors Wallich and Partee. proposal to add the issuance of travelers checks to the list of permissible activities for bank holding companies contained in Regula­ tion Y. (Signed) William W. Wiles, 2. See National Courier Association v. Board of Governors of the [seal] Secretary of the Board. Federal Reserve System, 516 F.2d 1229 (D.C. Cir. 1975). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Federal Reserve Bulletin □ July 1981 in light of the public interest factors set forth in section By order of the Board of Governors, effective 4(c)(8) of the Act. June 23, 1981. Applicant is a one-bank holding company by virtue of its control of First National Bank of Maryland, Voting for this action: Vice Chairman Schultz and Gover­ Baltimore, Maryland (deposits of $1.4 billion), the 3rd nors Teeters, Rice, and Gramley. Absent and not voting: largest banking organization in Maryland, controlling Chairman Volcker and Governors Wallich and Partee. 11.3 percent of total deposits in commercial banks in that state.3 Applicant also engages in mortgage bank­ (Signed) James M cAfee, ing, commercial lending and leasing, construction fi­ [seal] Assistant Secretary of the Board. nance activities and credit related insurance activities. Applicant proposes to issue and sell travelers check through the Visa Travelers Cheque Program. Under Orders Issued Under Section 2 of Bank Holding the program, Applicant’s name and the Visa symbol Company Act would appear on each check, and customers would have access to the international service network estab­ Exchange Bancorporation, lished under the Visa program. Applicant proposes to Tampa, Florida sell the checks through agents, including its subsidiaries. Order Granting Determination Under the Bank The travelers check industry is highly concentrated, Holding Company Act with the largest issuer, American Express, accounting for 50 percent of the market. The Board has previously Exchange Bancorporation, Tampa, Florida (“Bancor­ determined, in view of the limited number of competi­ poration”), a bank holding company within the mean­ tors currently servicing this industry, that it would be ing of the Bank Holding Company Act of 1956, as in the public interest for bank holding companies amended, (12 U.S.C. § 1841 et seq.) (the “Act”), has having the capability, to engage in the issuance of requested a determination, pursuant to the provisions travelers checks. Applicant’s entry into this industry of section 2(g)(3) of the Act, that with respect to the should serve to enhance competition in providing this sale by Bancorporation of the assets of Exchange service. Accordingly, it is the Board’s view that ap­ Travel Service, Inc., Tampa, Florida (“Travel Ser­ proval of this application would produce benefits to vice”) to Pepsi-Cola Bottling Company of Tampa the public and would be in the public interest. Further­ (“Pepsi Company”), Bancorporation is not in fact more, there is no evidence in the record to indicate capable of controlling Pepsi Company or Travel Ser­ that Applicant’s engaging in this activity would lead to vice, notwithstanding the fact that Pepsi Company and any undue concentration of resources, unfair competi­ a subsidiary of Bancorporation have a common tion, conflicts of interests, unsound banking practices, director. or 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 any bank reflected in the record, the Board has determined that holding company to a transferree that has one or more the balance of the public interest factors the Board is officers, directors, trustees, or beneficiaries in com­ required to consider under section 4(c)(8) is favorable. mon with or subject to control by the transferor are Accordingly, the application is hereby approved. This deemed to be indirectly owned or controlled by the determination is subject to the conditions set forth in transferor unless the Board, after opportunity for section 225.4(c) of Regulation Y, and to the Board’s hearing, determines that the transferor is not in fact authority to require such modification or termination capable of controlling the transferee. of the activities of a holding company or any of its No request for a hearing was made by Bancorpora­ subsidiaries as the Board finds necessary to assure tion. Bancorporation has submitted to the Board evi­ compliance with the provisions and purposes of the dence to show that it is not in fact capable of control­ Act, and the Board’s regulations and orders issued ling Travel Service or Pepsi Company, and the Board thereunder, or to prevent evasion thereof. has received no contradictory evidence. It is hereby The transaction shall be made not later than three determined that Bancorporation is not in fact capable months after the effective date of this Order, unless of controlling Travel Service or Pepsi Company. This such period is extended for good cause by the Board or determination is based upon the evidence of record in by the Federal Reserve Bank of Richmond. this matter including the following facts. The sale of the assets of Travel Service to Pepsi Company was the result of arm’s-length negotiations 3. All banking data are as of June 30, 1980. and competitive bidding. Pepsi Company paid cash for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 581 the assets of Travel Service and is not otherwise the meaning of the Bank Holding Company Act of indebted to Bancorporation. Although Pepsi Company 1956, as amended, (12 U.S.C. § 1841 et seq.) (“Act”), has borrowed funds from Bancorporation from time to has requested a determination under section 2(g)(3) of time in the past, and may do so in the future, Pepsi the Act (12 U.S.C. § 1841(g)(3)) that FOBC is not in Company has substantial financial resources, and has fact capable of controlling the divested assets of three repaid all previous indebtedness in a timely manner. subsidiaries that had been engaged primarily in real Although Pepsi Company maintains a deposit relation­ estate investment and development, notwithstanding ship with a Bancorporation subsidiary, Pepsi Compa­ the indebtedness on the part of the purchasers of some ny’s deposits represent less than one half of one of these assets to FOBC, and notwithstanding the fact percent of Bancorporation’s total deposits. that two purchasers are offices and directors of FOBC. The individual who is a director of Bancorporation Under the provisions of section 2(g)(3) of the Act, and Pepsi-Company is not involved in the day-to-day shares1 transferred after January 1, 1966, by a bank management of the operations of Bancorporation. holding company to a transferee that is indebted to the Although this individual is indebted to Bancorpora­ transferor or has one or more officers, directors, tion, such indebtedness is current and is small in trustees, or beneficiaries in common with or subject to relation to his net worth. Furthermore, there is no control by the transferor, are deemed to be indirectly indication that this individual would serve as Bancor­ owned or controlled by the transferor unless the poration’s representative with regard to Pepsi Compa­ Board, after opportunity for a hearing, determines that ny or Travel Service. Accordingly, inasmuch as this the transferor is not in fact capable of controlling the individual has no significant share ownership in Ban­ transferee. corporation, the continued service by this individual The three subsidiaries involved in this determination as an independent outside director on the board of are First Oklahoma Realty Investment Corporation Bancorporation will not render the divestiture ineffec­ (“FORIC”), L&R Enterprises Inc. (“L&R”), and tive. Southwest Property Management Corporation In view of the facts of record, it is determined that (“Southwest”). In the early 1970s each of these sub­ Bancorporation is not capable of controlling Travel sidiaries held numerous parcels of real estate and Service or Pepsi Company. Accordingly, it is ordered certain other assets. The Board ordered the divestiture that the request of Bancorporation for a determination of this real estate and other assets in 1974. This pursuant to section 2(g)(3) is granted. This determina­ property was divested over a seven year period, in tion is based on the representations made to the Board approximately 100 unrelated transactions involving a by Bancorporation. In the event that the Board should variety of purchasers. Many of these transactions did hereafter determine that facts material to this determi­ not raise the presumption of section 2(g)(3), because nation are otherwise than as represented, or that neither indebtedness nor management interlocks were Bancorporation has failed to disclose to the Board involved.2 other material facts, this determination may be re­ With a few exceptions, the 31 transactions covered voked, and any change in the facts and circumstances by this order did involve indebtedness or interlocks. relied upon by the Board in making this determination The property divested in these 31 transactions is listed could result in the Board reconsidering the determina­ in Appendix A. Inasmuch as a number of these 31 tion made herein. transactions involved a transfer of shares or a separate By order of the Board of Governors, acting through business activity, the presumption of section 2(g)(3) is its Acting General Counsel, pursuant to delegated applicable to those transactions. With respect to the authority (12 C.F.R. § 265.2(b)(1)), effective June 17, remainder of the transactions covered by this order, 1981. they are not technically within the ambit of section 2(g)(3) because they involved undeveloped land. How­ (Signed) James M cAfee, ever, where assets required to be disposed of, either [seal] Assistant Secretary of the Board. under one of the provisions of the Bank Holding First Oklahoma Bancorporation, Inc., Oklahoma City, Oklahoma 1. For purposes of section 2(g)(3), the Board deems the transfer of all or substantially all of the assets of a company, or the disposition Order Granting a Determination Under the Bank of a separate activity of a company, to involve a transfer of shares, (12 C.F.R. § 225.139(c)(3)). Holding Company Act 2. As is explained below, a few of the 31 transactions covered by this order also did not involve indebtedness or management inter­ First Oklahoma Bancorporation, Inc., Oklahoma City, locks. The section 2(g)(3) presumption thus is not applicable to these transactions, and there is no other evidence that these transactions do Oklahoma (“FOBC”), a bank holding company within not involve an adequate divestiture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 Federal Reserve Bulletin □ July 1981 Company Act or by specific Board order, are trans­ that in the event it should repossess any of the ferred, and one or more of the relationships described divested property, it will promptly dispose of such in section 2(g)(3) of the Act exists, the transferring property in a manner that will not give rise to a section company must bear a burden similar to that found in 2(g)(3) presumption.3 the usual section 2(g)(3) context. That is, the transfer­ There is no debt associated with transaction 30, but ring company must make a clear and convincing the two purchasers are both officers and directors of demonstration that the divestiture is complete and was FOBC. A bank holding company that transfers proper­ not made in an effort to evade the Act, and that control ty to an officer or an “inside” director must carry a of the divested asset is not likely to be reacquired. particularly heavy burden to overcome the presump­ Thus, for purposes of simplicity, all of the 31 transac­ tion of section 2(g)(3). FOBC has provided evidence to tions are discussed in this order. demonstrate that it made a good faith attempt to sell FOBC has not requested a hearing regarding the this property to an unrelated party, and that it negoti­ adequacy of these divestitures. Instead, FOBC has ated a sale to officer/directors only after these attempts submitted evidence to the Board to show that it is not failed. These officer/directors paid the full asking price in fact capable of controlling the divested property, or in cash. Finally, in light of the nature of the property its respective purchasers, and the Board has received transferred, there is no basis for believing that its no contradictory evidence. transfer by FOBC to officer/directors was intended to On the basis of the facts of record, it is hereby perpetuate FOBC’s control of such property. determined that FOBC is not in fact capable of con­ The loan associated with transaction 31 is in default. trolling the assets sold by FORIC, L&R and South­ However, FOBC has committed that neither it nor any west, or the purchasers of those assets. Each of the 31 of its officers or directors will bid on the property at transactions appear to have been negotiated at arms- the foreclosure sale that will soon take place, and this length and there is no evidence that any of the trans­ sale will thus extinguish the section 2(g)(3) presump­ fers were designed to evade the requirements of the tion, since it will eliminate FOBC’s security interest in Board’s 1974 order. Moreover, FOBC has undertaken the property, and FOBC will not provide financing to that it will not attempt to exercise control over the the new purchaser. assets sold or the purchasers of such assets. Accordingly, it is ordered that the request of FOBC Transactions 1 through 11 (see Appendix A) either for a determination pursuant to section 2(g)(3) is did not involve indebtedness, or any indebtedness has granted. This determination is based on the represen­ been paid in full. Moreover, with respect to each of tations made to the Board by FOBC. In the event that these transactions, no interlocking relationships exist the Board should hereafter determine that facts mate­ between FOBC and its subsidiaries, on one hand, and rial to this determination are otherwise than represent­ the transferred property and its purchasers, on the ed, or that FOBC has failed to disclose to the Board other. In transactions 12 through 28, there are also no other material facts, this determination may be re­ interlocking relationships. However, in these transac­ voked, and any change in the facts and circumstances tions either the purchaser or the transferred property relied upon by the Board in making this determination itself is indebted to FOBC. From the record, it appears could result in the Board reconsidering the determina­ that in each of these transactions the debt is current, tion made herein. and regular payments on the debt have been made for By order of the Board of Governors, acting through at least one year. Moreover, in each case, either the its Acting General Counsel, pursuant to delegated purchaser, or a party that controls the purchaser and authority (12 C.F.R. § 265.2(b)(1)), effective June 9, has guaranteed the debt, has net worth equal to or 1981. greater than the debt. With respect to transaction 29, while the net worth of the purchaser is not significant (Signed) James M cAfee, in relation to the amount of indebtedness, the debt is [seal] Assistant Secretary of the Board. current and regular payments have been made for more than two years. Moreover, income derived from 3. FOBC also has a right to receive 30 percent of any profit derived the transferred property appears ample to service this from resale of the property involved in transaction 28. The debt associated with this transaction bears interest at the rate of 6 percent debt, and no management interlocks are associated annually. This below market rate reflects the relatively undesirable with transaction 29. The terms governing the debt nature of the property transferred. FOBC’s right to share in profits is relationships in transactions 11 through 29 are those intended to compensate FOBC for the low interest rate by effectively allowing FOBC to realize a more reasonable rate of interest if reasonably required in accordance with sound and conditions change. However, FOBC has retained no right to control accepted banking practices. Although many of these or influence the factors that would determine profitability, such as operating expenses and capital improvements. FOBC also has no right debt relationships provide a security interest in the to disapprove a sale of the property, regardless of the profit (or lack divested property to FOBC, FOBC has committed thereof) associated with the sale. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 583 Appendix A West Financial Management Corporation, Lincoln, Nebraska (“Mid-West”), in connection with the trans­ The 31 transactions covered by this Order are those in fer by Company of the assets and liabilities of the which the following assets of FORIC, L&R, and insurance agency business of Company (“Havelock Southwest were divested: Insurance”) to Mid-West, notwithstanding the fact 1. Southwest Property Management, Corporation that Mr. Roger L. Anderson is an officer and director (parent company only) of both Company and Mid-West. 2. Cross winds Land Company Under section 2(g)(3) of the Act, shares1 transferred 3. Crosswinds Inn Joint Venture after January 1, 1966, by any bank holding company to 4. Turtle Creek Joint Venture a transferee that is indebted to the transferor, or has 5. Capital Joint Venture one or more officers, directors, trustees, or beneficia­ 6. Colonial Estates, McGowan and Spanish Lands ries in common with or subject to control by the 7. Enterprise Building and North Place Land transferor, are deemed to be indirectly owned or 8. Skyline Development, Inc. controlled by the transferor unless the Board, after 9. Forms business of First Oklahoma Financial opportunity for hearing, determines that the transferor Services is not in fact capable of controlling the transferee. 10. Lake view Terrace Land Company made no request for a hearing. Company has 11. Chantilly Heights Land submitted to the Board evidence to support its conten­ 12. Henderson Properties, Inc. tion that it is not in fact capable of controlling Mid- 13. Chisholm Trail Joint Venture West, and the Board has received no contradictory 14. Hungry Peddler Joint Venture evidence. 15. Mall Development Company It is hereby determined that Company is not in fact 16. Val Gene’s Addition Joint Venture capable of controlling Mid-West. This determination is 17. Greenwood Plaza Shopping Center based upon the evidence of record in this matter, 18. Town and Country Shopping Center including the following facts. Company is a small 19. Northwest Plaza Shopping Center closely-held corporation, 85 percent of the shares of 20. Evans Furniture Warehouse which are owned by Mr. Roger L. Anderson, or 21. Norman Land members of his immediate family. Mr. Anderson owns 22. Founders Bank and Trust Company Stock 100 percent of the shares of Mid-West. Mr. Anderson (transferred by FOBC) is also the President and Chairman of the Board of 23. Fisher Land Directors for both Company and Mid-West. Company 24. Harris Land divested its interest in Havelock Insurance by trans­ 25. Ken-Del Ltd. ferring Havelock Insurance to Mid-West on Decem­ 26. North Creek Land ber 31, 1980, and Company presently has no interest in 27. Royal Oaks Land Havelock Insurance. Moreover, inasmuch as Mr. An­ 28. Miscellaneous assets of L&R sold to National derson is a director, officer, and principal shareholder Properties, Inc. of both Company and Mid-West, the divestiture of 29. Rainbow Travel Service (transferred by FOBC) Havelock Insurance does not appear to have been a 30. Sirloin Stockade means for perpetuating Company’s control of Have­ 31. Indian Land lock Insurance. On the basis of the above and other facts of record, it is concluded that control of Compa­ ny resides with Mr. Anderson individually, and that Havelock Investment Company, Company does not control and is not in fact capable of Lincoln, Nebraska controlling Mid-West as transferee of Havelock Insur­ ance. Order Granting Determination Under the Bank Accordingly, it is ordered that the request of Com­ Holding Company Act pany for a determination pursuant to section 2(g)(3) be Havelock Investment Company, Lincoln, Nebraska (“Company”), a bank holding company within the meaning of section 2(a) of the Bank Holding Company 1. Although section 2(g)(3) refers to transfers of “shares,” the Board has previously taken the position that a transfer of all, or Act of 1956, as amended (12 U.S.C.§ 1841(a), the substantially all of the assets of a company, or the transfer of such a (“Act”), has requested a determination under sec­ significant volume of assets that the transfer may in effect constitute the disposition of a separate activity of a company, is deemed to tion 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)), that involve a transfer of “shares” of that company. (12 C.F.R. Company is not in fact capable of controlling Mid- § 225.139(c)(3)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 Federal Reserve Bulletin □ July 1981 granted. This determination is based on representa­ It is hereby determined that Invesco is not, in fact, tions made to the Board by Company and Mid-West. capable of controlling Transferees or S&M. This de­ In the event that the Board should hereafter determine termination is based on the evidence of record in this that facts material to this determination are otherwise matter, including the following facts. Invesco divested than as represented, or that Company or Mid-West has its interest in S&M by distributing the shares of S&M failed to disclose to the Board other material facts, this on a pro rata basis to Invesco’s shareholders, some of determination may be revoked, and any change in the whom are officers and directors of Invesco. Invesco facts and circumstances relied upon by the Board in now holds no interest in S&M, and all officer/director making this determination would result in the Board interlocks between Invesco and S&M have been ter­ reconsidering the determination made herein. minated. Furthermore, Invesco has terminated all By order of the Board of Governors, acting through business relationships between itself and S&M. The its Acting General Counsel, pursuant to delegated fact that, after a spin off, the officers and directors of a authority (12 C.F.R. § 265.2(b)(1)), effective June 22, bank holding company own shares of a divested com­ 1981. pany is the predictable result of a pro rata distribution, and that distribution does not appear to have been a (Signed) James M cAfee, means of perpetuating Invesco’s control over S&M. [seal] Assistant Secretary of the Board. Moreover, Invesco’s board of directors has adopted a resolution that it cannot control and will not attempt to control S&M or Transferees. Investment Corporation of America, Inc., Accordingly, it is ordered that the request of Minneapolis, Minnesota Invesco for a determination pursuant to section 2(g)(3) be and hereby is granted. This determination is based Order Granting Determination Under the Bank upon the representations made to the Board by Holding Company Act Invesco. In the event the Board should hereafter determine that facts material to this determination are Investment Corporation of America, Inc., Minneapo­ otherwise than as represented, or that Invesco has lis, Minnesota (“Invesco”), a bank holding company failed to disclose to the Board other material facts, this within the meaning of section 2(a) of the Bank Holding determination may be revoked, and any change in the Company Act of 1956, as amended, 12 U.S.C. § 1841 facts or circumstances relied upon by the Board in et seq., (the “Act”), by virtue of its ownership and making this determination could result in the Board control of River Forest State Bank, River Forest, reconsidering the determination made herein. Illinois, has requested a determination pursuant to the By order of the Board of Governors, acting through provisions of section 2(g)(3) of the Act (12 U.S.C. its Acting General Counsel, pursuant to delegated § 1841(g)(3)) that Invesco is not in fact capable of authority (12 C.F.R. § 265.2(b)(1)), effective June 8, controlling certain individuals (“Transferees”) to 1981. whom it transferred its interest in S&M Company, Minneapolis, Minnesota (“S&M”), or S&M itself, (Signed) James M cAfee, notwithstanding the fact that Transferees are officers [seal] Assistant Secretary of the Board. and/or directors of Invesco. Pursuant to the provisions of section 2(g)(3) of the Act, shares transferred after January 1, 1966, by any The Lewistown Company, bank holding company to a transferee that is indebted Lewistown, Illinois to the transferor or has one or more officers, directors, trustees, or beneficiaries in common with or subject to Order Granting a Determination Under the Bank the control by the transferor are deemed to be indirect­ Holding Company Act ly owned or controlled by the transferor unless the Board, after opportunity for hearing, determines that The Lewistown Company (“Company”), Lewistown, the transferor is not in fact capable of controlling the Illinois, a bank holding company within the meaning of transferee.1 the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) (the “Act”), has requested a determination un­ der section 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) 1. In its interpretation of this provision, the Board stated that the presumption arises not only where the transferee or transferred that Company is not in fact capable of controlling company has an officer, director, or trustee “in common with” the transferor, but where the transferee himself holds such a position with the transferor. (12 C.F.R. § 225.139). Since Invesco’s officers and stock of S&M, Invesco is presumed to continue to control Transferees directors will receive in the aggregate more than 25 percent of the and S&M. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 585 Warren Potter or Spoon River Insurance Center, Inc. Accordingly, it is ordered that the request of Com­ (“Insurance Center”), Lewistown, Illinois, notwith­ pany for a determination pursuant to section 2(g)(3) standing the fact that Mr. Potter is indebted to the should be and hereby is granted. This determination is Lewistown Bank, Lewistown, Illinois, a subsidiary of based on representations made to the Board by Com­ Company, as a result of his purchase of shares of pany and Mr. Potter. In the event that the Board Insurance Center formerly owned by Company.1 should hereafter determine that facts material to this Under the provisions of section 2(g)(3) of the Act, determination are otherwise than as represented, or shares transferred after January 1, 1966, by any bank that Company or Mr. Potter has failed to disclose to holding company to a transferee that is indebted to the the Board other material facts, this determination may transferor, are deemed to be indirectly owned or be revoked, and any change in the facts and circum­ controlled by the transferor unless the Board, after stances relied upon by the Board in making this opportunity for hearing, determines that the transferor determination could result in the Board reconsidering is not in fact capable of controlling the transferee. No the determination made herein. request for a hearing was made by Company. Instead, By order of the Board of Governors, acting through Company has submitted evidence to the Board to its Acting General Counsel, pursuant to delegated support its contention that it is not in fact capable of authority (12 C.F.R. § 265.2(b)(1)), effective June 23, controlling Mr. Potter, and the Board has received no 1981. contradictory evidence. It is hereby determined that Company is not in fact (Signed) James M cAfee, capable of controlling Mr. Potter. This determination [seal] Assistant Secretary of the Board. is based on the evidence of record in this matter, including the following facts: The sale of the shares of Insurance Center was effected through arm’s-length negotiations between Noble Bancshares, Inc., Company’s principal and Mr. Potter, and the terms Noble, Oklahoma governing the debt relationship between Bank and Mr. Potter consist of provisions reasonably required Order Granting Determination Under the Bank for the protection of Bank’s interests as a creditor. Holding Company Act Although Mr. Potter is indebted to Company for a substantial portion of the purchase price of Insurance Noble Bancshares, Inc. (formerly Noble Insurance Center, it appears that his personal financial resources Agency, Inc.), Noble, Oklahoma (“Noble”), a bank are substantial enough to support the conclusion that holding company within the meaning of section 2(a) of Company is not in fact capable of controlling the Bank Holding Company Act of 1956, as amended Mr. Potter or Insurance Center by reason of that (12 U.S.C. § 1841 et seq.) (“Act”), has requested a indebtedness. In addition, Company has stated that determination pursuant to section 2(g)(3) of the Act should it reacquire the shares of Insurance Center as a that, with respect to the sale for cash by Noble of all of result of Mr. Potter’s default, it will advise the Federal its insurance agency business to Noble Insurance Reserve System and promptly dispose of such shares. Agency, Inc., Noble, Oklahoma (“Agency”), that Furthermore, there are no employee, officer, or direc­ Noble is not in fact capable of controlling Kenneth L. tor interlocks between Company, including its subsid­ King, Elizabeth King, Paul D. King (“Kings”) or iary bank, and Insurance Center. Finally, Company’s Agency, notwithstanding the fact that the Kings are board of directors has adopted a resolution that Com­ officers and directors of both Noble and Agency. pany does not, and will not attempt to, exercise Under the provisions of section 2(g)(3) of the Act, control over Insurance Center or Mr. Potter. shares transferred after January 1, 1966, by a bank holding company to a transferee that is indebted to the transferor or has one or more officers, directors, 1. Although the shares of Insurance Center were sold to Mr. Potter trustees, or beneficiaries in common with or subject to by Company’s principal shareholder-director and not Company, the control by the transferor, are deemed to be indirectly shares remain attributable to Company because of the circumstances owned or controlled by the transferor unless the of the original transfer of the shares to Company’s principal. In 1978, Company sold its shares of Insurance Center to its principal share- Board, after opportunity for hearing, determines that holder-director. This sale was not an effective divestiture, since the transferor is not in fact capable of controlling the Company was unable to rebut to presumption of continued control, transferee. No request for a hearing was made by under section 2(g)(3) of the Act, that arose by virtue of the interlocking director and debt relationship between Company and its principal. Noble. Instead, Noble has submitted evidence to the Thus, the subsequent sale of Insurance Center to Mr. Potter, and his Board to support its contention that it is incapable of resulting indebtedness to Lewistown Bank, subjects the sale to the presumption of continued control created by section 2(g)(3) of the Act. controlling the Kings or Agency either directly or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 Federal Reserve Bulletin □ July 1981 indirectly. The Board has received no contradictory wholly-owned subsidiary of Heller. This request has evidence. been made in connection with a sale to KWW by It is hereby determined that Noble is not in fact Heller of all of the issued and outstanding shares of capable of controlling the Kings or Agency. This Knoll International, Inc. (“Knoll”), a manufacturer of determination is based upon the evidence in the mat­ designer furniture and furnishings. ter, including the following facts. Noble is a closely- Under section 2(g)(3) of the act, shares transferred held corporation. Kenneth L. King owns 100 percent after January 1, 1966, by any bank holding company to of Noble. Kenneth L. King and Elizabeth King each a transferee that is indebted to the transferor, are own 50 percent of Agency. The Kings are the only deemed to be owned or controlled by the transferor officers, directors, and shareholders of both Agency unless the Board, after opportunity for hearing, deter­ and Noble. The divestiture does not appear to have mines that the transferor is not in fact capable of been a means of perpetuating Noble’s control over controlling the transferee. Heller has not requested a Agency. On the basis of the above and other facts of hearing, but it has submitted to the Board evidence to record, the Board concludes that control of Noble and support its contention that Heller and its affiliates are Agency resides with the Kings as individuals, and that not in fact capable of controlling KWW. Noble does not control and is not in fact capable of On the basis of the following facts of record, it is controlling the Kings in their capacities as sharehold­ hereby determined that Heller and its affiliates are not, ers, directors and officers of Agency. in fact, capable of controlling KWW. At the time Accordingly, it is ordered that the request of Noble Heller applied to the Board to become a bank holding for a determination pursuant to section 2(g)(3) is company, Heller was required to divest itself of Knoll granted. This determination is based on the represen­ and three other manufacturing interests held by Heller tations made to the Board by Noble and the Kings. In Industries.1 In 1977 Heller sold all the shares of Knoll the event the Board should hereafter determine that to KWW for a total purchase price of $23 million, of facts material to this determination are otherwise than which $8.5 million was represented by an unsecured as represented, or that Noble, or the Kings have failed subordinated debenture from KWW to Knoll. The to disclose to the Board other material facts, this record reflects that the sale of Knoll to KWW in 1977 determination may be revoked, and any change in the was negotiated at arm’s-length, and that there are no facts and circumstances relied upon by the Board in officer or director interlocks between Heller or its making this determination could result in the Board affiliates, and KWW or its affiliates. Moreover, from reconsidering the determination made herein. the record it appears that the debenture is being repaid By order of the Board of Governors, acting through in accordance with its terms and there is no indication its Acting General Counsel, pursuant to delegated that KWW will be unable to continue with its timely authority (12 C.F.R. § 265.2(b)(1)), effective June 17, payments. Finally, Heller’s board of directors has 1981. adopted a resolution that it does not, and will not attempt to, exercise control over KWW or Knoll, and (Signed) James M cAfee, KWW has filed a resolution to the effect that Heller [seal] Assistant Secretary of the Board. and its affiliates are not capable of controlling KWW. Accordingly, it is ordered that the request of Heller for a determination pursuant to section 2(g)(3) is Walter E. Heller International Corporation, granted. This determination is based on representa­ Chicago, Illinois tions made to the Board by Heller and KWW. In the event that the Board should hereafter determine that Order Granting Determination Under the Bank facts material to this determination are otherwise than Holding Company Act as represented, or that Heller or KWW has failed to disclose to the Board other material facts, this deter­ Walter E. Heller International Corporation (“Hell­ mination may be revoked, and any change in the facts er”), Chicago, Illinois, a bank holding company within and circumstances relied upon in making this determi­ the meaning of the Bank Holding Company Act, has nation could result in the Board’s reconsideration of requested a determination under section 2(g)(3) of the this determination. Act (12 U.S.C. § 1841(g)(3)), that Heller is not in fact capable of directly or indirectly controlling General Felt Industries, New York, New York, or its indirect subsidiary KWW, Inc. (“KWW”), New York, New 1. Walter E. Heller International Corporation, 59 Federal Re­ York, notwithstanding the fact that KWW is indebted serve Bulletin 463, 464 (1973). While Heller originally had two years to divest itself of its manufacturing interests, the Board had to Walter E. Heller Industries (“Heller Industries”), a given Heller extensions of time to divest itself of Knoll. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 587 By order of the Board of Governors, acting through within the meaning of section 1103(c) of the Code ; its General Counsel, pursuant to delegated authority and (12 C.F.R. § 265.2(b)(1)), effective June 1, 1981. C. The distribution of the shares of S&M is necessary or appropriate to effectuate section 4 of (Signed) James M cAfee, the Bank Holding Company Act. [seal] Assistant Secretary of the Board. 3. On December 31, 1980, Invesco distributed to its shareholders, on a pro rata basis, all of its shares of S&M. Invesco does not currently own any shares of Certifications Pursuant to the Bank Holding S&M. Company Tax Act of 1976 4. Invesco terminated its management interlocks with S&M on December 31, 1978, as was required Investment Corporation of America, Inc., by the Board’s Order. Minneapolis, Minnesota 5. Invesco has represented that it does not exercise a controlling influence over the management or Final Certification Pursuant to the Bank Holding policies of S&M. Company Tax Act of 1976 6. Invesco has represented that it holds no other property the disposition of which is required by Investment Corporation of America, Inc., Minneapo­ section 4 of the Bank Holding Company Act. lis, Minnesota (“Invesco”), has requested a final On the basis of the foregoing information, it is certification pursuant to section 1101(e) of the Internal hereby certified that Invesco has, before the expira­ Revenue Code (“Code”), as amended by section 2(a) tion of the period prohibited property is permitted of the Bank Holding Tax Act of 1976 (the “Tax Act”), under the Bank Holding Company Act to be held by a that it has, before the expiration of the period prohibit­ bank holding company, disposed of all of the property ed property is permitted under the Bank Holding the disposition of which is necessary or appropriate to Company Act, 12 U.S.C. § 1841 et seq., to be held by effectuate section 4 of the Bank Holding Company a bank holding company, disposed of all the property Act. the disposition of which is necessary or appropriate to This certification is based upon the representations effectuate section 4 of the Bank Holding Company made to the Board by Invesco and upon the facts set Act. forth above. In the event the Board should determine In connection with this request, the following infor­ that facts material to this certification are otherwise mation is deemed relevant for purposes of issuing the than as represented by Invesco, or that Invesco has requested certification.1 failed to disclose to the Board other material facts, it 1. Effective November 15, 1978, the Board issued a may revoke this certification. prior certification pursuant to section 1101(a) of the By order of the Board of Governors, acting through Code with respect to the proposed divestiture by its Acting General Counsel, pursuant to delegated Company of 40,000 voting shares of The S&M authority (12 C.F.R. § 265.2(b)(3)), effective June 8, Company, Minneapolis, Minnesota (“S&M”) then 1981. held by Invesco, through the pro rata distribution of such shares to the shareholders of Invesco.2 (Signed) James M cAfee, 2. The Board’s Order certified that: [seal] Assistant Secretary of the Board. A. Invesco is a qualified bank holding corpora­ tion within the meaning of section 1103(b) of the Code, and satisfies the requirements of that sub­ Noble Bancshares, Inc., section; Noble, Oklahoma B. The shares of S&M are “prohibited property” Final Certification Pursuant to the Bank Holding Company Tax Act of 1976 1. This information derives from Invesco’s communications with the Board concerning its request for this certification, Invesco’s Noble Bancshares, Inc. (formerly Noble Insurance Registration Statement filed with the Board pursuant to the Bank Holding Company Act, and other records of the Board. Agency, Inc.), Noble, Oklahoma (“Noble”), has re­ 2. On July 30, 1980, S&M increased its number of outstanding quested a final certification pursuant to section shares to 1,064,787, the number of Invesco shares then outstanding. Invesco has indicated that these additional shares were acquired by 6158(c)(2) of the Internal Revenue Code (“Code”), as Invesco in a transaction in which gain was not recognized under amended by section 3(a) of the Bank Holding Compa­ section 305(a) of the Code. Under section 1101(c) of the Code, these ny Tax Act of 1976, (“Tax Act”) that it has (before the additional shares would be eligible for tax benefits if they were received in such a transaction. expiration of the period prohibited property is permit­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 Federal Reserve Bulletin □ July 1981 ted under the Bank Holding Company Act (12 U.S.C. disposed of all of its nonbanking property and that it § 1841 et. seq.) to be held by a bank holding company) does not own or control any nonbanking shares or divested all of its prohibited property. property or engage in any nonbanking activities. In connection with request, the following informa­ On the basis of the foregoing information, it is tion is deemed relevant for the purposes of issuing the hereby certified that Noble has (before the expiration requested certification.1 of the period prohibited property is permitted under 1. Effective November 6, 1980, the Board issued a the Bank Holding Company Act to be held by a bank prior certification pursuant to section 6158(a) of the holding company) disposed of all property the disposi­ Code with respect to Noble’s proposed sale of all of tion of which is necessary or appropriate to effectuate its insurance agency business to Noble Insurance section 4 of the Bank Holding Company Act. Agency, Inc., Noble, Oklahoma (“Agency”). This certification is based upon representations 2. The Board’s Order certified that: made to the Board by Noble and upon the facts set A. Noble is a qualified bank holding company forth above. In the event the Board should hereafter within the meaning of section 1103(b) of the Code, determine that facts material to this certification are and satisfies the requirements of that subsection. otherwise than as represented by Noble or that Noble B. The insurance agency business that Noble has failed to disclose to the Board other material facts proposes to sell is “prohibited property” within or to fulfill any commitments made to the Board in the meaning of section 1103(c) of the Code. connection herewith, it may revoke this certification. C. The sale of the insurance agency business is By order of the Board of Governors, acting through necessary or appropriate to effectuate section 4 of its Acting General Counsel, pursuant to delegated the Bank Holding Company Act. authority (12 C.F.R. § 265.2(b)(3)), effective June 17, 3. On December 30, 1980, following prior certifica­ 1981. tion of the transaction by the Board of Governors, acting through its General Counsel, Noble sold all of its insurance agency business to Agency. (Signed) James M cAfee, 4. Noble has represented to the Board that it has [seal] Assistant Secretary of the Board. Orders Approving Applications Under the Bank Holding Company Act and Bank Merger Act By the Board of Governors During June 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) Crosstown Holding Company, Crosstown State Bank of Ham Lake Inc., June 3, 1981 Ham Lake, Minnesota Ham Lake, Minnesota Shelbyville Bancshares, Inc., Farmers and Merchants Bank of Green June 10, 1981 Shelbyville, Missouri Ridge, Green Ridge, Missouri Southeast Financial Bankstock Corporation, McGehee Bank, June 22, 1981 McGehee, Arkansas McGehee, Arkansas Southwest Bancshares, Inc., Copperfield National Bank, June 16, 1981 Houston, Texas Harris County, Texas 1. This information derives from Noble’s communications with the tion Statement filed with the Board pursuant to the Bank Holding Board concerning its request for this certification, Noble’s Registra- Company Act, and other records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 589 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Texas American Bancshares Inc., Empire Bank, June 29, 1981 Fort Worth, Texas Dallas, Texas Texas American Bancshares Inc., The Collin County National June 2, 1981 Fort Worth, Texas Bank of McKinney, McKinney, Texas 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 Allied Bancshares, Inc., Jetero Bank, Dallas June 25, 1981 Houston, Texas Houston, Texas American Exchange Company, American Exchange Bank, Kansas City May 21, 1981 Elmwood, Nebraska Elmwood, Nebraska Banclndependent Incorporated, First Colbert National Bank, Atlanta June 12, 1981 Sheffield, Alabama Sheffield, Alabama Bancshares of New Jersey, Inc., The Bank of New Jersey, Philadelphia May 29, 1981 Wilmington, Delaware Camden, New Jersey The Bank of New Jersey, N.A., Moorestown, New Jersey Prospect Park National Bank, Wayne, New Jersey Bel Tower Financial, Incorporated, Union Trust & Savings Bank, Chicago June 8, 1981 Stan wood, Iowa Stan wood, Iowa Cen-La Bancshares, Inc., Central Louisiana Bank & Trust Atlanta June 23, 1981 Marks ville, Louisiana Company, Marks ville, Louisiana Citizens Bancorporation, Gillett State Bank, Chicago June 8, 1981 Sheboygan, Wisconsin Gillett, Wisconsin Columbine Valley Corporation, Columbine Valley Bank and Trust, Kansas City May 29, 1981 Littleton, Colorado Littleton, Colorado Community Banks, Inc., The American Exchange Bank of Chicago June 16, 1981 Middleton, Wisconsin Madison, Wisconsin, Madison, Wisconsin Consolidated Bancshares, Inc., Abilene National Bank, Dallas June 5, 1981 Abilene, Texas Abilene, Texas Country Hill Bancshares, Inc., Country Hill State Bank, Kansas City May 15, 1981 Lenexa, Kansas Lenexa, Kansas Crown Bancshares, Inc., The First National Bank of Law­ Kansas City June 12, 1981 Kansas City, Missouri rence, Lawrence, Kansas The Merchants National Bank of To­ peka, Topeka, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 Federal Reserve Bulletin □ July 1981 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Eaton Capital Corporation, The Eaton Bank, Kansas City June 19, 1981 Eaton, Colorado Eaton, Colorado Farmers State Bankshares, Inc., The Farmers State Bank of Burns, Kansas City June 8, 1981 Burns, Wyoming Burns, Wyoming First Abilene Bankshares, Inc., First National Bank, Sweetwater, Dallas June 9, 1981 Abilene, Texas Texas Sweetwater, Texas First Bancshares of Seguin, Inc., First National Bank of Seguin, Dallas June 25, 1981 Seguin, Texas Seguin, Texas First Broken Arrow Corporation, The First National Bank of Broken Kansas City June 12, 1981 Broken Arrow, Oklahoma Arrow, Broken Arrow, Oklahoma First Eastex Bancshares, Inc., East Texas State Bank, Dallas June 26, 1981 Buna, Texas Buna, Texas First Florida Banks, Inc., First Florida, Atlanta June 10, 1981 Tampa, Florida Tampa, Florida Multi-Line, Inc., Tampa, Florida First State Bancshares, Inc., First State Bank, San Francisco June 9, 1981 Port Orchard, Washington Port Orchard, Washington Good Thunder Bancshares, Inc., First State Bank of Good Thunder, Minneapolis June 2, 1981 Good Thunder, Minnesota Good Thunder, Minnesota Guaranty Bancorp, Guaranty Bank & Trust Company, Atlanta June 19, 1981 Zachary, Louisiana Zachary, Louisiana Harrisonville Bancshares, Inc., Allen Bank and Trust Company, Kansas City June 19, 1981 Harrisonville, Missouri Harrisonville, Missouri Harvard Tower Holding Harvard Tower Bank, Kansas City June 12, 1981 Corporation, Tulsa, Oklahoma Tulsa, Oklahoma Hawkeye Bancorporation, Jackson State Bank and Trust Com- Chicago June 19, 1981 Des Moines, Iowa pany, Maquoketa, Iowa King Bancshares, Inc., The First National Bank of King­ Kansas City June 12, 1981 Kingman, Kansas man, Kingman, Kansas Kingman County Financial Corp., The Farmers State Bank of Nor­ Kansas City June 19, 1981 Norwich, Kansas wich, Norwich, Kansas Lafourche Bancshares, Inc., South Lafourche Bank and Trust Atlanta June 18, 1981 Larose, Louisiana Company, Larose, Louisiana Lee County Bancorp., Inc., Lee County Savings Bank, Chicago May 29, 1981 Fort Madison, Iowa Fort Madison, Iowa Lorenzo Bancshares, Inc., Lorenzo State Bank at Lorenzo, Dallas June 26, 1981 Lorenzo, Texas Lorenzo, Texas Manufacturers Bancorp, Inc., First National Bank of Franklin St. Louis June 26, 1981 St. Louis, Missouri County, Union, Missouri Metro Bancorp, Inc., Metropolitan National Bank of Far- Chicago June 16, 1981 Farmington Hills, Michigan mington, Farmington Hills, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 591 Section 3—Continued A i ✓ \ Reserve Effective Appl,cant Bank(s) Bank date Northern National Corporation, Bancshares of New Jersey, Inc., Philadelphia May 29, 1981 Moorestown, New Jersey Wilmington, Delaware Northern National Corporation, The Bank of New Jersey, National Philadelphia May 29, 1981 Moorestown, New Jersey Association, Bancshares of New Jersey, Inc., Moorestown, New Jersey Wilmington, Delaware Northshore Bancshares, Inc., Northshore Bank, Dallas June 26, 1981 Houston, Texas Houston, Texas North Texas Bancshares, Inc., Bank of North Texas, Dallas June 11, 1981 North Richland Hills, Texas North Richland Hills, Texas, Meadowbrook National Bank, Fort Worth, Texas Olivia Bancorporation, Inc., American State Bank of Olivia, Minneapolis June 22, 1981 Olivia, Minnesota Olivia, Minnesota One Valley Bancorp of West Kanawha Valley Bank, N.A., Richmond June 15, 1981 Virginia, Inc., Charleston, West Virginia Charleston, West Virginia Pagosa Springs Holding Company, The Citizens Bank of Pagosa Kansas City June 12, 1981 Pagosa Springs, Colorado Springs, Pagosa Springs, Colorado Peoples Banking Corporation, Community Bank, Chicago May 29, 1981 Bay City, Michigan Bad Axe, Michigan Quitman Bancshares, Inc., Bank of Quitman, Atlanta June 26, 1981 Quitman, Georgia Quitman, Georgia Remer Bancorporation, Inc., Security State Bank of Remer, Minneapolis June 26, 1981 Remer, Minnesota Remer, Minnesota Republic Bancshares Corporation, The Republic Bank, Atlanta June 2, 1981 Clearwater, Florida Clearwater, Florida Ruston Bancshares, Inc., Ruston State Bank & Trust Dallas June 8, 1981 Ruston, Louisiana Company, Ruston, Louisiana Salem National Bancorporation, Salem National Bank, St. Louis June 26, 1981 Inc., Salem, Illinois Salem, Illinois Security Holding Company Security Bank and Trust Company, Kansas City May 19, 1981 Miami, Oklahoma Miami, Oklahoma Shidler Bancshares, Inc., Shidler State Bank, Kansas City June 12, 1981 Shidler, Oklahoma Shidler, Oklahoma Steele BanCorp., The Steele State Jank, Chicago June 19, 1981 Cherokee, Iowa Cherokee, IoVa Texas Commerce Bancshares, Inc., Friendswood Bank, Dallas June 12, 1981 Houston, Texas Friendswood, Texas Verdigre State Company, The Verdigre Agency, Inc., Kansas City May 15, 1981 Verdigre, Nebraska Verdigre, Nebraska Bank of Verdigre, Verdigre, Nebraska Walker Ban Co., First National Bank of Walker, Minneapolis June 19, 1981 Walker, Minnesota Walker, Minnesota Winthrop Bancshares, Inc., Winthrop State Bank, Minneapolis June 15, 1981 Winthrop, Minnesota Winthrop, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 Federal Reserve Bulletin □ July 1981 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Woodland Bancorp, Inc., Woodland Bank, Kansas City May 20, 1981 Tulsa, Oklahoma Tulsa, Oklahoma Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) Flora Financial Corpo­ Bank of Flora to act as agent or broker Atlanta June 23, 1981 ration, Flora, Mississippi in the sale of credit Flora, Mississippi life and credit accident and health insurance directly related to ex­ tensions of credit. Leitchfield Deposit Leitchfield Deposit to engage in the sale of St. Louis June 3, 1981 Bancshares, Inc., Bank and Trust insurance directly re­ Leitchfield, Ken­ Company, lated to extensions of tucky Leitchfield, Ken­ credit made by Bank tucky through B.S. Alexan­ der Insurance Agency, Inc., Leitchfield, Ken­ tucky Wood Lake Bancorpo­ Wood Lake Corpora­ to retain the general in­ Minneapolis June 24, 1981 ration, tion surance agency of the Wood Lake, Minne­ Wood Lake, Minne­ corporation which op­ sota sota erates in a community with a population not exceeding 5,000. Section 4 Nonbanking Effective Applicant company date (or activity) Nortonville Bancshares, Inc., Northeast Kansas Agency, Inc., June 12, 1981 Nortonville, Kansas Nortonville, Kansas, to engage in the sale of general insurance in a community of less than 5,000 population. Pending Cases Involving the Board of Governors* *This list of pending cases does not include suits Wilshire Oil Company of Texas v. Board of Gover­ against the Federal Reserve Banks in which the Board nors, et al., filed April 1981, U.S.C.A. for the Third of Governors is not named a party. Circuit. People of the State of Arkansas v. Board of Gover­ Louis J. Roussel v. Board of Governors, filed May nors, et al., filed March 1981, U.S.C.A. for the 1981, U.S.C.A. for the District of Columbia. Western District of Arkansas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 593 First Bank & Trust Company v. Board of Governors, A. G. Becker, Inc. v. Board of Governors, et al., filed filed February 1981, U.S.D.C. for the Eastern Dis­ August 1980, U.S.D.C. for the District of Columbia. trict of Kentucky. Otero Savings and Loan Association v. Board of Ellis E. St. Rose & James H. Sibbet v. Board of Governors, filed August 1980, U.S.D.C. for the Governors, filed February 1981, U.S.D.C. for the District of Columbia. District of Columbia. Edwin F. Gordon v. Board of Governors, et al., filed Option Advisory Service, Inc. v. Board of Governors, August 1980, U.S.C.A. for the Fifth Circuit. et al., filed February 1981, U.S.C.A. for the Second U.S. League of Savings Associations v. Depository Circuit. Institutions Deregulation Committee, et al., filed 9 to 5 Organization for Women Office Workers v. June 1980, U.S.D.C. for the District of Columbia. Board of Governors, filed December 1980, Berkovitz, et al. v. Government of Iran, et al., filed U.S.D.C. for the District of Massachusetts. June 1980, U.S.D.C. for the Northern District of Securities Industry Association v. Board of Gover­ California. nors, et al., filed October 1980, U.S.D.C. for the Mercantile Texas Corporation v. Board of Governors, District of Columbia. filed May 1980, U.S.C.A. for the Fifth Circuit. Securities Industry Association v. Board of Gover­ Corbin, Trustee v. United States, filed May 1980, nors, et al., filed October 1980, U.S.C.A. for the United States Court of Claims. District of Columbia. Ulyssess S. Crockett v. United States, et al., filed A. G. Becker, Inc. v. Board of Governors, et al., filed April 1980, U.S.D.C. for the Eastern District of October 1980, U.S.D.C. for the District of Colum­ North Carolina. bia. County National Bancorporation and TGB Co. v. A. G. Becker, Inc. v. Board of Governors, et al., filed Board of Governors, filed September 1979, October 1980, U.S.C.A. for the District of Colum­ U.S.C.A. for the Eighth Circuit. bia. Donald W. Riegel, Jr. v. Federal Open Market Com- Independent Insurance of America and Independent mitee, filed July 1979, U.S.D.C. for the District of Insurance Agents of Missouri v. Board of Gover­ Columbia. nors, filed September 1980, U.S.C. A. for the Eighth Security Bancorp and Security National Bank v. Circuit. Board of Governors, filed March 1978, U.S.C.A. for Independent Insurance Agents of America and Inde­ the Ninth Circuit. pendent Insurance Agents of Virginia v. Board of Roberts Farms, Inc. v. Comptroller of the Currency, Governors, filed September 1980, U.S.C.A. for the et al., filed November 1975, U.S.D.C. for the South­ Fourth Circuit. ern District of California. Nebraska Bankers Association, et al. v. Board of David Merrill, et al. v. Federal Open Market Commit­ Governors, et al., filed September 1980, U.S.D.C. tee, filed May 1975, U.S.D.C. for the District of for the District of Nebraska. Columbia. Republic of Texas Corporation v. Board of Governors, filed September 1980, U.S.C.A. for the Fifth Cir­ cuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al Financial and Business Statistics Contents Domestic Financial Statistics Weekly Reporting Commercial Banks A3 Monetary aggregates and interest rates Assets and liabilities A4 Reserves of depository institutions, reserve, A18 All reporting banks bank credit A19 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 Policy Instruments Financial Markets Al Federal Reserve Bank interest rates A8 Depository institutions reserve requirements A23 Commercial paper and bankers dollar A9 Maximum interest rates payable on time and acceptances outstanding savings deposits at federally insured institutions A24 Prime rate charged by banks on short-term A10 Federal Reserve open market transactions business loans A24 Terms of lending at commercial banks A25 Interest rates in money and capital markets Federal Reserve Banks A26 Stock market—Selected statistics A27 Savings institutions—Selected assets and All Condition and Federal Reserve note statements liabilities A12 Maturity distribution of loan and security holdings Federal Finance Monetary and Credit Aggregates A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlay A12 Bank debits and deposit turnover A30 Federal debt subject to statutory limitation A13 Money stock measures and components A30 Gross public debt of U.S. Treasury—Types and A14 Aggregate reserves of depository institutions ownership and member bank deposits A31 U.S. government marketable securities— A15 Loans and securities of all commercial banks Ownership, by maturity A32 U.S. government securities dealers— Transactions, positions, and financing Commercial Banks A33 Federal and federally sponsored credit agencies—Debt outstanding A16 Major nondeposit funds A17 Assets and liabilities, last Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin □ July 1981 Securities Markets 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 Reported by Banks in the United States asset position A56 Liabilities to and claims on foreigners A3 5 Corporate profits and their distribution A57 Liabilities to foreigners A36 Nonfinancial corporations—Assets and A59 Banks’ own claims on foreigners liabilities A60 Banks’ own and domestic customers’ claims on A36 Total nonfarm business expenditures on new foreigners plant and equipment A60 Banks’ own claims on unaffiliated foreigners A37 Domestic finance companies—Assets and A61 Claims on foreign countries—Combined liabilities; business credit domestic offices and foreign branches Real Estate Securities Holdings and Transactions A38 Mortgage markets A62 Marketable U.S. Treasury bonds and notes— A39 Mortgage debt oustanding Foreign holdings and transactions A62 Foreign official assets held at Federal Reserve Banks Consumer Installment Credit A63 Foreign transactions in securities A40 Total outstanding and net change A41 Extension and liquidations Reported by Nonbanking Business Enterprises in the United States Flow of Funds A64 Liabilities to unaffiliated foreigners A65 Claims on unaffiliated foreigners A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit markets Interest and Exchange Rates A66 Discount rates of foreign central banks Domestic Nonfinancial Statistics A66 Foreign short-term interest rates A66 Foreign exchange rates A44 Nonfinancial business activity—Selected measures A44 Output, capacity, and capacity utilization A45 Labor force, employment, and unemployment A67 Guide to Tabular Presentationy A46 Industrial production—Indexes and gross value Statistical Releases, and Special A48 Housing and construction Tables A49 Consumer and producer prices A50 Gross national product and income A51 Personal income and saving Special Tables A68 Survey of time and savings deposits at International Statistics commercial banks, April 29, 1981 A72 Commercial bank assets and liabilities, March 31, A52 U.S. international transactions—Summary 1981 A53 U.S. foreign trade A78 Assets and liabilities of U.S. branches and agen­ A53 U.S. reserve assets cies of foreign banks, March 31, 1981 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 02 03 04 Ql' Apr.' May 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 -.9 -14.7 11.9 .0 12.6 2 Required......................................................................... .7 5.8 15.2 2.5 -.7 -4.0 6.0 7.2 9.0 3 Nonborrowed................................................................. 7.4 12.4 7.2 6.8 8.2 -12.4 21.9 -10.4 -14.6 4 Monetary base2............................................................ 5.6 9.5 10.6 5.5 4.9 2.2 7.5 7.3 9.8 Concepts of money and liquid assets3 5 Ml-A.............................................................................. -4.9' 11.3' 8.2' -20.8 -39.0 -25.3 -4.6 2.6 -5.6 6 Ml-B.................................................................................. -3.0' 13.9 10.8' 4.9 10.4 5.7 13.1 22.3 -6.1 7 M2...................................................................................... 5.1' 15.4' 8.1 8.2 8.2 10.6 16.1 13.5 4.1 8 M3...................................................................................... 6.0 13.1 11.3' 12.4 15.2 11.8 10.8 10.9 9.1 9 L........................................................................................... 6.8 9.9 11.5' 12.6 15.5 11.5 5.5 n.a. Time and savings deposits Commercial banks 10 Total.............................................................................. 10.7' 6.1' 15.4' 17.0 21.3 9.8 2.0 6.8 19.1 11 Savings4......................................................................... -21.8' 22.2' 1.5' -30.5 -51.2 -22.3 -10.4 -2.8 -16.0 12 Small-denomination time5..................................... 32.7' 2.1' 16.2' 30.2 41.0 16.3 16.4 5.4 15.8 13 Large-denomination time6..................................... 13.2' -1.2' 25.4' 37.5 50.6 23.8 -5.9 13.7 44.3 14 Thrift institutions7.......................................................... 4.7 10.1 9.7 5.3 3.5 3.0 1.5 -2.5 2.8 15 Total loans and securities at commercial banks8. .0 6.7 14.7 11.8 15.8 8.1 4.5 11.6 1980 Q3 Q4 Ql Q2 Apr. May June Interest rates (levels, percent per annum) Short-term rates 16 Federal funds9.......................................... 9.83 15.85 16.57 17.78 15.93 14.70 15.72 18.52 19.10 17 Discount window borrowing10.............. 10.35 11.78 13.00 13.62 13.00 13.00 13.00 13.87 14.00 18 Treasury bills (3-month market yield)11 9.15 13.61 14.39 14.91 14.79 13.36 13.69 16.30 14.73 19 Commercial paper (3-month)11,12........ 9.65 15.26 15.34 16.15 15.49 13.94 14.56 17.56 16.32 Long-term rates Bonds 20 U.S. government13.............................. 10.95 12.23 12.74 13.49 12.98 12.94 13.46 13.82 13.20 21 State and local government14............ 8.58 9.59 9.97 10.69 10.10 10.16 10.62 10.78 10.67 22 Aaa utility (new issue)15.................... 12.20 13.49 14.45 15.41 14.90 14.71 15.68 15.81 14.76 23 Conventional mortgages16...................... 13.12 14.62 15.10 n.a. 15.10 15.25 15.70 16.35 n.a. 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 are adjusted for discon­ 5. Small-denomination time deposits are those issued in amounts of less than tinuities in series that result from changes in Regulation D. $100,000. 2. Includes reserve balances at Federal Reserve Banks in the current week plus 6. Large-denomination time deposits are those issued in amounts of $100,000 or vault cash held two weeks earlier used to satisfy reserve requirements at all deposi­ more. tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks, 7. Savings and loan associations, mutual savings banks, and credit unions. the vaults of depository institutions, and surplus vault cash at depository institu­ 8. Changes calculated from figures shown in table 1.23. tions. 9. Averages of daily effective rates (average of the rates on a given date weighted 3. Ml-A: Averages of daily figures for (1) demand deposits at all commercial by the volume of transactions at those rates). banks other than those due to domestic banks, the U.S. government, and foreign 10. Rate for the Federal Reserve Bank of New York. banks and official institutions less cash items in the process of collection and Federal 11. Quoted on a bank-discount basis. Reserve float; (2) currency outside the Treasury, Federal Reserve Banks, and the 12. Unweighted average of offering rates quoted by at least five dealers. vaults of commercial banks; and (3) travelers checks of nonbank issuers. 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. Ml-B: Ml-A plus negotiable order of withdrawal and automated transfer service 14. Bond Buyer series for 20 issues of mixed quality. accounts at banks and thrift institutions, credit union share draft accounts, and 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by demand deposits at mutual savings banks. Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­ M2: Ml-B plus savings and small-denomination time deposits at all depository pilations. institutions, overnight repurchase agreements at commercial banks, overnight Eu­ 16. Average rates on new commitments for conventional first mortgages on new rodollars held by U.S. residents other than banks at Caribbean branches of member homes in primary markets, unweighted and rounded to nearest 5 basis points, from banks, and money market mutual fund shares. Dept, of Housing and Urban Development. M3: M2 plus large-denomination time deposits at all depository institutions and Note. The monetary aggregates have been revised to reflect new benchmark term RPs at commercial banks and savings and loan associations. data and a definitional change to include outstanding travelers checks issued by L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents nonbanks. See “Announcements” in this bulletin for details. 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 □ July 1981 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week-ending Factors 1981 1981 Apr.P May p June p May 13 p May 20 p May 27 p June 3 p June 10/> June 17 p June 24 p Supplying Reserve Funds 1 Reserve Bank credit outstanding.................. 143,648 144,065 144,999 143,559 145,173 143,987 143,574 142,889 144,653 145,949 2 U.S. government securities1.......................... 120,008 119,937 120,637 118.191 121.587 120,112 119.447 118.900 120.655 121,618 3 Bought outright............................................ 119,468 119,819 120,333 118.191 121.587 120,112 119.447 118.900 120.655 120,971 540 118 304 647 5 Federal agency securities................................ 8,775 8,738 8,733 8.720 8.720 8.720 8.720 8.718 8.707 8,891 6 Bought outright............................................ 8,720 8,720 8,710 8.720 8.720 8.720 8.720 8.718 8.707 8,707 55 18 63 184 69 20 155 142 9 Loans.................................................................. 1,343 2,154 2,038 1,734 1,975 2,923 1,954 2,207 1,895 2,305 10 Float .................................................................. 3,195 3,085 3,474 4,295 3,039 2,368 3,962 3,647 3,628 2,577 11 Other Federal Reserve assets........................ 10,258 10,131 9,922 10,619 9,851 9,864 9,491 9,418 9,769 10,415 12 Gold stock........................................................ 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 13 Special drawing rights certificate account... 2,818 2,818 2,826 2,818 2,818 2,818 2,818 2,818 2,818 2,818 14 Treasury currency outstanding...................... 13,538 13,544 13,567 13,539 13,543 13,551 13,557 13,561 13,567 13,571 Absorbing Reserve Funds 15 Currency in circulation................................................. 134,553 135,631 136,710 135,775 135,742 135,958 136,168 136,653 136,956 136,647 16 Treasury cash holdings.................................... 498 509 499 514 509 506 502 506 502 504 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury........................................................ 3,353 3,210 3,049 3,299 3,119 2,830 2,982 2,613 3,196 3,021 18 Foreign.......................................................... 411 342 292 555 274 258 314 323 258 310 19 Other.............................................................. 295 283 367 271 276 241 401 346 391 321 20 Other Federal Reserve liabilities and capital........................................................ 4,875 4,784 4,810 4,711 4,938 4,884 4,515 4,368 4,636 5,259 21 Reserve accounts2............................................ 27,173 26,822 26,819 25,944 27,829 26,832 26,220 26,612 26,254 27,430 End of month figures Wednesday figures 1981 1981 Apr. May June May 13 May 20 May 27 June 3 June 10 June 17 June 24 Supplying Reserve Funds 22 Reserve bank credit outstanding............................ 143,452 140,540 142,934 143,456 148,131 141,814 150,192 142,721 151,595 144,646 23 U.S. government securities1.................................... 119.687 118.311 120.017 116.292 122.239 117.193 121.375 116.749 121.346 119.360 24 Bought outright............................................ 119.687 118.311 120.017 116.292 122.239 117.193 121.375 116.749 121.346 119.360 25 Held under repurchase agreements.......... 26 Federal agency securities................................ 8.720 8.720 8.694 8.720 8.720 8.720 8.720 8.707 8.707 8.707 27 Bought outright............................................................ 8.720 8.720 8.694 8.720 8.720 8.720 8.720 8.707 8.707 8.707 28 Held under repurchase agreements.............. 29 Acceptances . .......................... 30 Loans.......................................................................................... 2,333 1,366 1,010 3,683 3,847 8,851 5,742 3,613 6,357 1,803 31 Float.......................................................................................... 2,156 2,542 2,506 3,820 3,440 4,082 4,833 4,077 4,660 4,315 32 Other Federal Reserve assets........................ 10,556 9,601 10,707 10,941 9,885 9,968 9,522 9,575 10,525 10,461 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 3,068 2,818 2,818 2,818 2,818 2,818 2,818 2,818 35 Treasury currency outstanding...................... 14,061 13,555 13,580 13,539 13,549 13,555 13,559 13,565 13,570 13,575 Absorbing Reserve Funds 36 Currency in circulation.................................................. 134,991 135,908 137,499 136,285 136,040 136,624 136,655 137,372 137,127 136,918 37 Treasury cash holdings.................................................. 508 502 484 512 507 501 504 505 498 505 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury........................................................ 4,460 2,288 2,923 3,692 3,085 2,880 4,127 2,391 5,215 2,909 39 Foreign............................................................................... 476 346 338 286 270 299 186 238 196 237 40 Other..................................................................................... 311 275 536 240 221 245 441 400 435 284 41 Other Federal Reserve liabilities and capital................ ....................................................... 4,674 4,444 5,330 4,617 4,652 4,707 4,224 4,340 4,714 5,217 42 Reserve accounts2............................................................ 26,063 24,304 23,626 25,334 30,877 24,084 31,586 25,011 30,951 26,122 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

Depository Institutions A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages of daily figures Reserve classification 1979 1980 1981 Dec. Oct. Nov. Dec. Jan .p Feb.P Mar.P Apr.P MayP June/7 1 Reserve balances with Reserve Banks1....... 32,473 29,976 29,215 26,664 27,114 26,591 26,722 27,117 26,822 26,819 15.311 18,149 19,293 17,824 17,327 17,189 17,773 18,198 3 Vault cash at institutions with required reserve balances2................................ 11,344 11,678 11,876 12,602 13,587 12,187 11,687 11,687 12,124 12,396 4 Vault cash equal to required reserves at other institutions................................ n.a. n.a. 439 704 700 763 1,237 1,204 1,310 1,350 5 Surplus vault cash at other institutions3 .. n.a. n.a. 2,996 4,843 5,006 4,874 4,403 4,298 4,339 4,452 6 Reserve balances + total vault cash4......... 43,972 41,815 44,674 44,940 46,520 44,524 44,155 44,395 44,683 45,100 7 Reserve balances + total vault cash used to satisfy reserve requirements4,5......... na. n.a. 41,678 40,097 41,514 39,650 39,752 40,097 40,344 40,648 8 Required reserves (estimated)..................... 43,578 41,498 40,723 40,067 41,025 39,448 39,372 40,071 40,213 40,098 9 Excess reserve balances at Reserve Banks4,6. 394 317 955 30 489 202 380 26 131 550 10 Total borrowings at Reserve Banks......... 1,473 1,335 2,156 1,617 1,405 1,278 1,004 1,343 2,154 2,038 11 Seasonal borrowings at Reserve Banks 82 67 99 116 120 148 197 161 259 291 Large commercial banks 12 Reserves held................................................. 24,940 26,267 24,874 24,772 24,894 25,033 25,332 13 Required.................................................... 25,819 26,605 25,328 25,145 25,519 25,450 25,315 28 Excess............................................................ -879 -338 -454 -373 -625 -417 17 Small commercial banks 15 Reserves held................................................. 13,719 13,935 13,305 13,386 13,628 13,773 13,683 16 Required..................................................... 13,523 13,690 13,235 13,229 13,558 13,633 13,549 17 Excess........................................................ n.a. n.a. n.a. 196 245 70 157 70 140 134 U.S. agencies and branches 18 Reserves held................................................. 260 253 388 461 444 576 651 19 Required..................................................... 230 228 366 450 432 545 628 20 Excess........................................................ 30 25 22 11 12 31 23 All other institutions 21 Reserves held................................................. 494 513 502 605 611 649 646 22 Required.................................................... 495 502 519 548 562 585 606 23 Excess........................................................ -1 11 -17 57 49 64 40 Weekly averages of daily figures for week ending Apr. 22p Apr. 29p May 6 p May 13p May 20 p May 27 p June 3 p June 10p June 17 p June 24p 24 Reserve balances with Reserve Banks1....... 28,258 27,940 27,741 25,944 27,834 26,835 26,220 25,612 26,254 27,430 25 Total vault cash (estimated)........................ 16,155 17,353 17,947 18,562 16,711 17,627 18,249 18,312 18,846 17,306 26 Vault cash at institutions with required reserve balances2................................ 10,971 11,845 12,298 12,686 11,449 11,940 12,379 12,379 12,756 11,907 27 Vault cash equal to required reserves at other institutions................................ 1,186 1,238 1,298 1,311 1,187 1,384 1,414 1,433 1,417 1,230 28 Surplus vault cash at other institutions3 .. 3,998 4,270 4,351 4,565 4,075 4,303 4,456 4,500 4,673 4,169 29 Reserve balances + total vault cash4......... 44,503 45,379 45,776 44,591 44,635 44,552 44,556 44,011 45,185 44,818 30 Reserve balances + total vault cash used to satisfy reserve requirements4,5......... 40,505 41,109 41,425 40,026 40,560 40,249 40,100 39,511 40,512 40,649 31 Required reserves (estimated)..................... 40,739 41,004 41,089 39,928 40,356 39,810 39,855 39,262 40,223 40,285 32 Excess reserve balances at Reserve Banks4,6. -234 105 336 98 204 439 245 249 289 364 33 Total borrowings at Reserve Banks......... 864 2,278 2,471 1,734 1,975 2,923 1,954 2,207 1,895 2,305 34 Seasonal borrowings at Reserve Banks 149 175 198 226 271 309 287 277 279 306 Large commercial banks 35 Reserves held................................................. 24,806 25,501 26,381 24,507 25,166 25,056 24,494 24,506 25,119 25,768 36 Required..................................................... 25,935 26,031 26,174 25,367 25,482 25,032 25,185 24,788 25,458 25,391 37 Excess........................................................ —1,129 -530 207 -860 -316 24 -691 -282 -339 377 Small commercial banks 38 Reserves held................................................. 13,696 14,131 14,088 13,679 13,706 13,724 13,638 13,349 13,645 13,754 39 Required..................................................... 13,787 13,990 13,937 13,547 13,618 13,572 13,462 13,222 13,494 13,682 40 Excess........................................................ -91 141 151 132 88 152 176 127 151 72 U.S. agencies and branches 41 Reserves held................................................. 436 435 429 476 654 669 668 695 663 617 42 Required..................................................... 430 422 408 430 643 627 636 651 648 610 43 Excess........................................................ 6 13 21 46 11 42 32 44 15 7 All other institutions 44 Reserves held................................................. 611 630 602 625 648 735 631 657 640 645 45 Required..................................................... 587 561 570 584 613 579 572 601 623 602 46 Excess........................................................ 24 69 32 41 35 156 59 56 17 43 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 □ July 1981 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banksi Averages of daily figures, in millions of dollars 1981, week ending Wednesday By maturity and source Apr. 29 May 6 May 13 May 20 May 27 r June 3 June 10 June 17 June 24 One day and continuing contract 1 Commercial banks in United States................................ 49,914 52,324 49,016 45,222 44,392 46,911 50,831 50,506 47,880 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 13,021 13,716 12,875 13,812 13,651 14,048 14,878 15,463 16,955 3 Nonbank securities dealers.............................................. 3,166 3,265 2,816 2,561 2,768 3,250 3,000 2,375 2,919 4 All other............................................................................ 20,316 19,922 19,090 19,403 19,708 19,942 20,339 21,159 21,219 All other maturities 5 Commercial banks in United States................................ 3,520 3,524 3,639 3,788 3,467 3,516 3,715 3,734 4,077 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,247 7,064 7,365 7,591 7,434 7,492 7,239 7,120 7,137 7 Nonbank securities dealers.............................................. 4,390 4,435 4,780 5,183 5,200 5,139 4,968 5,126 5,125 8 All other............................................................................ 10,403 10,143 10,497 10,549 10,643 10,880 11,550 11,216 10,582 Memo: Federal funds and resale agreement loans in ma­ turities of one day or continuing contract 9 Commercial banks in United States................................ 14,508 13,795 13,348 14,214 13,932 15,240 16,233 14,787 14,988 10 Nonbank securities dealers............................................... 3,010 2,854 2,884 2,602 2,662 3,033 2,502 2,814 2,611 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 6/30/81 date rate 6/30/81 date rate 6/30/81 date rate 6/30/81 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 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1972................. 4 Vi AVl 1976— Jan. 19................... 51/2-6 5Vi 1979— Sept. 19................... iote-11 11 1973— Jan. 15............................ 5 5 23.................. 5 Vi 5Vi 21................... 11 11 Feb. 26............................ 5-5 Vi 5Vi Nov. 22.................. 51/4-5 5Va Oct. 8................... 11-12 12 Mar. 2............................ 5Vi 5Vi 26................... 51/4 5Va 10................... 12 12 Apr. 23............................ 5i/>-53/4 5Vz Mfay 4............................ 53/4 53/4 1977_ Aug. 30................... 5!/4-53/4 5Va 1980— Feb. 15................... 12-13 13 11............................ 53/4-6 6 31................... 5!/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 6VS Oct. 26................... 6 6 30................... 12 12 15............................ 6 Vi 6V2 June 13................... 11-12 11 July 2............................ 1 1 1978— Jan. 9.................. 6-6!'/1 61A 16................... 11 11 Aug. 14............................ 7-71/2 IVi 20.................. 6V1 61/2 July 28................... 10-11 10 23............................ 7 Vi IVi May 11................... bVi-1 7 29................... 10 10 12.................. 1 7 Sept. 26................... 11 11 1974— Apr. 25............................ 7Vi-% 8 July 3................... 1-IVa IVa Nov. 17................... 12 12 30............................ 8 8 July 10................... IVa IVa Dec. 5................... 12-13 13 Dec. 9............................ 73/4-8 VA Aug. 21................... VA VA 8................... 13 13 16............................ VA VA Sept. 22................... 8 8 Oct. 16................... 8-81/2 8 Vi 1981— May 5................... 13-14 14 1975— Jan. 6............................ IVa IVa 20................... 81h 81/2 May 8................... 14 14 10............................ IVa IVa Nov. 1................... 8Vz-91/2 91/2 24............................ IVa IVa 3.................. 9 Vi 9Vi Feb. 5............................ &/A-1VA 63/4 7............................ 63/4 63/4 1979— July 20................... 10 10 Mar. 10............................ 6V'4-63/4 6V4 Aug. 17................... 10-10V^ 10V4 14............................ 61/4 6Va 20................... lOVi 10V5> May 16............................ 6-61/4 6 In effect June 30, 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 or $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 In 1980 and 1981, the Federal Reserve applied a surcharge to short-term ad­ ulation A. justment credit borrowings by institutions with deposits of $500 million or more 3. Applicable to emergency advances to individuals, partnerships, and corpo­ that 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; the surcharge was subsequently raised to 3 percent on Dec. 5,1980 and to 4 percent on May 5,1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics □ July 1981 1.15 DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS! 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 Effective date Effective date Net demand2 Net transaction accounts6 0-2................................... 7 12/30/76 $0-$25 million.................... 3 11/13/80 2-10................................. 9Vi 12/30/76 Over $25 million................ 12 11/13/80 10-100.......................... ll3/4 12/30/76 100-400.......................... 123/4 12/30/76 Nonpersonal time deposits7 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 2Vi 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 Apr. 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) ana 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 IVi 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 oanks. 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 June 30, 1981 Previous maximum In effect June 30, 1981 Previous maximum Effective Effective Effective Percent Effective date date date date 1 Savings.................................................................................. 51/4 7/1/79 7/1/73 51/2 7/1/79 51/4 0) 2 Negotiable order of withdrawal accounts 2.................... 51/4 12/31/80 1/1/74 51/4 12/31/80 5 1/1/74 Time accounts 3 Fixed ceiling rates by maturity 4 4 3 9 1 0 4 - d 8 a 9 y s d a t y o s 1 5 y ... e .. a .. r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 3 V / 4 4 8 1 / / 1 1 / / 7 8 9 0 5 51/2 7 7 / / 1 1 / / 7 7 3 3 6 (6) 1/1/80 (6) 5 3./4 (0 6 5 2 1 t t o o 2 2 V y i e y a e rs a rs ' . 7 .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7/1/73 5 5 1 3 / / 2 4 1 1 / / 2 2 1 1 / / 7 7 0 0 6 Vi 0) 6 53/4 1 1 / / 2 2 1 1/ /7 7 0 0 7 2Vi to 4 years 1................................................................ 6V2 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 (9) IVi 11/1/73 (9) 9 6 to 8 years 8.................................................................... IVi 12/23/74 71/4 11/1/73 73/4 12/23/74 IVi ii/i/73 1 11 0 8 Is s y u e e a d rs to o r g m ov o e r r e n m 8 e .. n .. t .. a . l .. . u .. n .. i .. t . s . .. ( . a .. l . l .. . m .... a .. t . u .. r . i .. t . i . e .. s .. ) . .. 1 .. 0 ... . . . . . . . . . . . . . . . 73/4 6 6 / / 1 1 / / 7 7 8 8 (66)) 73./4 12/23/74 ’ 6 6 / / 1 1 / / 7 7 8 8 (6) 73 , / 4 '12/23/74' 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more) 10,n.................................. 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...................... 14 2 Vi 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 June for commercial banks and thrift and New Hampshire were first permitted to offer negotiable order of withdrawal institutions were as follows: June 2, 14.741; June 9, 14.250; June 16, 13.606; June (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex­ 23, 14.189; June 30, 13.871. Effective for all six-month money market certificates tended to similar institutions throughout New England on Feb. 27, 1976, and in issued beginning June 5, 1980, the interest rate ceilings will be determined by the New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Author­ discount rate (auction average) of most recently issued six-month U.S. Treasury ization to issue NOW accounts was extended to similar institutions nationwide bills as followseffective Dec. 31, 1980. Bill rate Commercial bank ceiling thrift ceiling 3. For exceptions with respect to certain foreign time deposits see the Federal 8.75 and above bill rate + Va percent bill rate + V4 percent Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­ 8.50 to 8.75 bill rate + V\ percent 9.00 ruary 1968 (p. 167). 7.50 to 8.50 bill rate + l/4 percent bill rate + Vi percent 4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts 7.25 to 7.50 7.75 bill rate + Vi percent at savings and loan associations was decreased to 14 days and the minimum maturity Below 7.25 7.75 7.75 period for time deposits at savings and loan associations in excess of $100,000 was The prohibition against compounding interest in these certificates continues. decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice 14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and Ceriod for time deposits was decreased from 30 days to 14 days for mutual savings mutual savings banks were authorized to offer variable-ceiling nonnegotiable time anks. deposits with no required minimum denomination and with maturities of 2Vi years 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time or more. The maximum rate for commercial banks is 3A percentage point below deposits was decreased from 30 days to 14 days for commercial banks. the yield on 2Vi-year U.S. Treasury securities; the ceiling rate for thrift institutions 6. No separate account category. is V4 percentage point higher than that for commercial banks. Effective Mar. 1, 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was 1980, a temporary ceiling of ll3/4 percent was placed on these accounts at com­ required for savings and loan associations, except in areas where mutual savings mercial banks; the temporary ceiling is 12 percent at savings and loan associations banks permitted lower minimum denominations. This restriction was removed for and mutual savings banks. Effective for all variable-ceiling nonnegotiable time deposits maturing in less than 1 year, effective Nov. 1, 1973. deposits with maturities of 2Vi years or more issued beginning June 2, 1980, the 8. No minimum denomination. Until July 1, 1979, minimum denomination was ceiling rates of interest will be determined as follows: $1,000 except for deposits representing funds contributed to an Individual Retire­ Treasurv yield Commercial bank ceiling Thrift ceiling ment Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal 12.00 and above 11.75 12.00 Revenue Code. The $1,000 minimum requirement was removed for such accounts 9.50 to 12.00 Treasury yield less V4 percent Treasury yield in December 1975 and November 1976 respectively. Below 9.50 9.25 9.50 9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates Interest may be compounded on these time deposits. The ceiling rates of interest maturing in 4 years or more with minimum denominations of $1,000; however, the at which these accounts may be offered vary biweekly. The maximum allowable amount of such certificates that an institution could issue was limited to 5 percent rates in June for commercial banks were as follows: June 9, 11.75; June 23, 11.75. of its total time and savings deposits. Sales in excess of that amount, as well as The maximum allowable rates in June for thrift institutions were as follows: June certificates of less than $1,000, were limited to the 6 Vi percent ceiling on time 9, 12.00; June 23, 12.00. deposits maturing in 2Vi years or more. 15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4 loan associations, and mutual savings banks were authorized to offer variable ceiling years or more with minimum denomination of $1,000. There is no limitation on accounts with no required minimum denomination and with maturities of 4 years the amount of these certificates that banks can issue. or more. The maximum rate for commercial banks was VA percentage points below 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom­ the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions ination requirements. was lA percentage point higher than that for commercial banks. 11. Effective January 1, 1980, commercial banks are permitted to pay the same Note. Before Mar. 31, 1980, the maximum rates that could be paid by federally rate as thrifts on IRA and Keogh accounts and accounts of governmental units insured commercial banks, mutual savings banks, and savings and loan associations when such deposits are placed in the new 2V^-year or more variable-ceiling certif­ were established by the Board of Governors of the Federal Reserve System, the icates or in 26-week money market certificates regardless of the level of the Treasury Board of Directors of the Federal Deposit Insurance Corporation, and the Federal bill rate. Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 re­ 12. Must have a maturity of exactly 26 weeks and a minimum denomination of spectively. Title II of the Depository Institutions Deregulation and Monetary Con­ $10,000, and must be nonnegotiable. trol Act of 1980 (P.L. 96—221) transferred the authority of the agencies to establish 13. Commercial banks, savings and loan associations, and mutual savings banks maximum rates of interest payable on deposits to the Depository Institutions De­ were authorized to offer money market time deposits effective June 1, 1978. The regulation Committee. The maximum rates on time deposits in denominations of ceiling rate for commercial banks on money market time deposits entered into $100,000 or more with maturities of 30-89 days were suspended in June 1970; such before June 5, 1980, is the discount rate (auction average) on most recently issued deposits maturing in 90 days or more were suspended in May 1973. For information six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings and regarding previous interest rate ceilings on all types of accounts, see earlier issues loan associations and mutual savings banks was V'4 percentage point higher than of the Federal Reserve Bulletin, the Federal Home Loan Bank Board Journal, the rate for commercial banks. Beginning March 15, 1979, the V^-percentage-point and the Annual Report of the Federal Deposit Insurance Corporation. 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

A10 Domestic Financial Statistics □ July 1981 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1980 1981 Type of transaction 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. May U.S. Government Securities Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases...................................................... 16,628 15,998 7,668 0 1,331 1,100 0 1,607 1,141 790 2 Gross sales.............................................................. 13,725 6,855 7,331 600 0 3,865 357 0 0 0 3 Exchange ................................................................ 0 0 0 0 0 0 0 0 0 0 4 Redemptions.......................................................... 2,033 2,900 3,389 500 49 1,000 0 0 0 0 Others within 1 year1 5 Gross purchases...................................................... 1,184 3,203 912 0 100 0 0 0 115 0 6 Gross sales.............................................................. 0 0 0 0 0 0 23 0 0 0 7 Maturity shift.......................................................... -5,170 17,339 12,427 2,368 754 462 990 878 522 2,900 8 Exchange ................................................................ 0 -11,308 -18,251 -879 -967 0 -1,936 -1,385 -261 -1,281 9 Redemptions.......................................................... 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 0 469 0 11 Gross sales.............................................................. 0 0 0 0 0 0 0 0 0 0 1 1 2 3 E M x a c t h u a ri n t g y e s h .. i .. f . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -178 -12 7 , , 6 5 9 0 3 8 -8 13 ,9 ,4 0 1 9 2 -2,3 5 6 0 8 0 -7 9 5 6 4 7 -462 0 - 1 9 ,2 9 1 0 1 - 1 8 ,3 7 8 8 5 -5 2 2 6 2 1 -1,7 6 2 8 4 1 5 to 10 years 14 Gross purchases...................................................... 1,526 523 703 0 0 0 0 0 164 0 15 Gross sales.............................................................. 0 0 0 0 0 0 0 0 0 0 1 17 6 M Ex a c t h u a ri n t g y e s h .. i .. f . t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,803 -4 2 ,6 ,1 4 8 6 1 -3 2 ,0 ,9 9 7 2 0 220 0 0 0 0 0 400 0 0 0 0 0 -1,1 3 7 0 6 0 Over 10 years 18 Gross purchases...................................................... 1,063 454 811 0 0 0 0 0 89 0 19 Gross sales.............................................................. 0 0 0 0 0 0 0 0 0 0 20 Maturity shift.......................................................... 2,545 0 -426 0 0 0 0 0 0 0 21 Exchange ................................................................ 1,619 1,869 159 0 0 325 0 0 300 All maturities1 22 Gross purchases...................................................... 24,591 22,325 12,232 0 1,431 1,100 0 1,607 1,977 790 23 Gross sales.............................................................. 13,725 6,855 7,331 600 0 3,865 380 0 0 0 24 Redemptions.......................................................... 2,033 5,500 3,389 500 49 1,000 0 0 0 0 Matched transactions 25 Gross sales.............................................................. 511,126 627,350 674,000 40,944 79,754 61,427 30,819 32,003 37,251 45,658 26 Gross purchases...................................................... 510,854 624,192 675,496 41,129 78,734 63,062 31,651 30,441 37,295 43,492 Repurchase agreements 27 Gross purchases...................................................... 151,618 107,051 113,902 24,169 11,534 6,108 0 1,623 9,458 1,219 28 Gross sales.............................................................. 152,436 106,968 113,040 23,924 11,381 8,137 0 1,246 9,835 1,219 29 Net change in U.S. government securities............ 7,743 6,896 3,869 -670 516 -4,159 452 422 1,644 -1,376 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 0 22 0 3 15 2 * Repurchase agreements 33 Gross purchases...................................................... 40,567 37,321 28,895 4,825 1,889 652 0 494 1,211 186 34 Gross sales.............................................................. 40,885 36,960 28,863 4,880 1,767 1,177 0 437 1,268 186 35 Net change in federal agency obligations.............. -426 681 555 -55 99 -525 -3 42 -58 0 Bankers Acceptances 36 Outright transactions, net........................................ 0 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net.................................... -366 116 73 -43 253 -776 0 298 -298 0 38 Net change in bankers acceptances........................ -366 116 73 -43 253 -776 0 298 -298 0 39 Total net change in System Open Market Account............................................................ 6,951 7,693 4,497 -768 868 -5,460 450 762 1,287 -1,376 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 May 27 June 3 June 10 June 17 June 24 Apr. May June 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 3,068 3 Coin.......................................................................................... 391 378 382 388 397 412 396 380 Loans 4 To depository institutions................................................ 1,851 5,742 3,613 6,357 1,803 2,333 1,366 1,010 5 Other.................................................................................... 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements................................ 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright.................................................................. 8,720 8,720 8,707 8,707 8,707 8,720 8,720 8,694 8 Held under repurchase agreements................................ 0 0 0 0 0 0 0 0 U.S. government securities Bought outright 9 Bills.................................................................................. 40,769 44,951 40,325 44,922 42,936 43,263 41,887 43,593 10 Notes................................................................................ 58,818 58,818 58,818 58,818 58,818 59,118 58,818 58,818 11 Bonds.............................................................................. 17,606 17,606 17,606 17,606 17,606 17,306 17,606 17,606 12 Total i .............................................................................. 117,193 121,375 116,749 121,346 119,360 119,687 118,311 120,017 13 Held under repurchase agreements................................ 0 0 0 0 0 0 0 0 14 Total U.S. government securities........................................ 117,193 121,375 116,749 121,346 119,360 119,687 118,311 120,017 15 Total loans and securities................................................... 127,764 135,837 129,069 136,410 129,870 130,740 128,397 129,721 16 Cash items in process of collection.................................... 11,963 11,113 9,318 11,256 11,270 9,224 9,096 11,297 17 Bank premises........................................................................ 470 470 471 472 474 467 470 475 Other assets 18 Denominated in foreign currencies2.............................. 6,858 6,412 6,468 6,494 6,496 6,768 6,412 6,430 19 All other.............................................................................. 2,640 2,640 2,636 3,559 3,491 3,321 2,719 3,802 20 Total assets......................................................................... 164,058 170,822 162,316 172,551 165,970 164,904 161,462 166,327 Liabilities 21 Federal Reserve notes.......................................................... 123,962 123,978 124,695 124,444 124,246 121,852 123,251 124,783 Deposits 22 Depository institutions...................................................... 24,084 31,586 25,011 30,951 26,122 26,063 24,304 23,626 23 U.S. Treasury—General account.................................... 2,880 4,127 2,391 5,215 2,909 4,460 2,288 2,923 24 Foreign—Official accounts.............................................. 299 186 238 196 237 476 346 338 25 Other.................................................................................... 245 441 400 435 284 311 275 536 26 Total deposits..................................................................... 27,508 36,340 28,040 36,797 29,552 31,310 27,213 27,423 27 Deferred availability cash items.......................................... 7,881 6,280 5,241 6,596 6,955 7,068 6,554 8,791 28 Other liabilities and accrued dividends3............................ 1,965 1,677 1,615 1,956 2,455 1,97* 1,744 2,387 29 Total liabilities................................................................... 161,316 168,275 159,591 169,793 163,208 162,201 158,762 163,384 Capital Accounts 30 Capital paid in........................................................................ 1,237 1,235 1,237 1,244 1,246 1,233 1,238 1,246 31 Surplus.................................................................................... 1,203 1,203 1,203 1,203 1,203 1,203 1,203 1,203 32 Other capital accounts.......................................................... 302 109 285 311 313 267 259 494 33 Total liabilities and capital accounts................................ 164,058 170,822 162,316 172,551 165,970 164,904 161,462 166,327 34 Memo: Marketable U.S. government securities held in custody for foreign and international account.......... 97,516 96,536 97,410 95,853 95,846 100,546 96,635 97,549 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) .... 143,959 144,094 144,091 144,354 144,704 143,716 143,936 145,062 36 Less-held by bank4........................................................ 19,997 20,116 19,396 19,910 20,458 21,864 20,685 20,279 37 Federal Reserve notes, net.......................................... 123,962 123,978 124,695 124,444 124,246 121,852 123,251 124,783 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 3,068 40 Other eligible assets.......................................................... 9 0 109 0 0 0 0 27 41 U.S. government and agency securities........................ 109,981 110,006 110,614 110,472 110,274 107,880 109,279 110,534 42 Total collateral.................................................................... 123,962 123,978 124,695 124,444 124,246 121,852 123,251 124,783 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 □ July 1981 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity groupings 1981 1981 May 27 June 3 June 10 June 17 June 24 Apr. 30 May 31 June 30 1Loans—Total..................................................................... 1,851 5,742 3,613 6,357 1,803 2,333 1,366 1,010 2 Within 15 days................................................................ 1,810 5,592 3,481 6,245 1,769 1,905 1,317 964 3 16 days to 90 days.......................................................... 41 150 132 109 34 428 49 46 4 91 days to 1 year............................................................ 0 0 0 3 0 0 0 0 5Acceptances—Total.......................................................... 0 0 0 0 0 0 0 0 6 Within 15 days................................................................ 0 0 0 0 0 0 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 9U.S. government securities—Total.................................. 117,193 121,375 116,749 121,346 119,360 119,687 118,311 120,017 10 Within 15 days1.............................................................. 2,923 6,294 5,450 5,754 3,617 2,098 3,162 1,714 11 16 days to 90 days.......................................................... 20,442 21,666 17,704 23,092 21,843 21,291 21,552 23,875 12 91 days to 1 year............................................................ 30,774 30,309 30,489 29,394 30,794 31,983 30,543 31,742 13 Over 1 year to 5 years.................................................. 34,297 34,349 34,349 34,349 34,349 34,981 34,297 33,928 14 Over 5 years to 10 years............................................... 13,042 13,042 13,042 13,042 13,042 13,918 13,042 13,042 15 Over 10 years................................................................. 15,715 15,715 15,715 15,715 15,715 15,416 15,715 15,716 16Federal agency obligations—Total.................................... 8,720 8,720 8,707 8,707 8,707 8,720 8,720 8,694 17 Within 15 days1.............................................................. 178 88 0 217 217 69 178 207 18 16 days to 90 days.......................................................... 471 533 533 449 449 615 471 446 19 91 days to 1 year............................................................ 1,853 1,867 1,912 1,779 1,779 1,752 1,853 1,779 20 Over 1 year to 5 years................................................... 4,593 4,607 4,636 4,636 4,636 4,658 4,593 4,636 21 Over 5 years to 10 years............................................... 982 982 982 982 982 982 982 982 22 Over 10 years................................................................. 643 643 644 644 644 644 643 644 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. 1981 Bank group, or type of customer 1978 1979 Jan. Feb. Mar. Apr. May Debits to demand deposits1 (seasonally adjusted) 1 All commercial banks........... 40,297.8 49,775.0 63.013.4 72.402.3 73,174.6 75.487.3 73,621.7 74.800.5 2 Major New York City banks 15,008.7 18,512.7 25.192.5 29,656.0 29,752.0 30,276.0 29.501.3 29,610.9 3 Other banks.......................... 25,289.1 31,262.3 37,820.9 42.746.3 43,422.5 45.211.3 44.120.4 45.189.6 Debits to sa\rings deposits2 (not seasonsilly adjusted) 4 ATS/NOW 3 17.1 83.3 158.4 529.3 526.6 668.7 815.4 693.3 5 Business4 ... 56.7 77.3 93.4 108.2 93.4 112.8 112.4 112.0 6 Others5___ 359.7 515.2 605.3 685.7 553.1 556.8 590.1 518.3 7 All accounts 432.9 675.8 857.2 1,323.2 1,173.1 1,338.3 1,517.9 1,323.6 Demand deposit turnover1 (seasonally adjusted) 8 All commercial banks........... 139.4 163.5 201.6 244.6 253.6 262.9 257.2 260.9 9 Major New York City banks 541.9 646.2 813.7 956.2 952.6 959.5 1,001.9 975.1 10 Other banks.......................... 96.8 113.3 134.3 161.3 168.7 176.9 171.8 176.3 Savings deposit turnover2 (not seasonally adjusted) 11 ATS/NOW3 7.0 7.8 9.7 15.1 12.5 14.2 15.2 13.5 12 Business4__ 5.1 7.2 9.3 10.9 9.8 11.3 11.6 11.7 13 Others*.... 1.7 2.7 3.4 4.1 3.4 3.5 3.6 3.3 14 All accounts 1.9 3.1 4.2 6.3 5.5 6.1 6.7 6.0 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 ana 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 1981 1977 1978 1979 1980 Dec.r Dec.' Dec.r Dec.r Jan.T Feb.r Mar.' Apr.r May Seasonally adjusted Measures1 1 Ml-A............................................................................. 331.4 354.8 372.7 387.7 375.1 367.2 365.8 366.6 364.9 2 Ml-B............................................................................. 336.4 364.2 390.5 415.6 419.2 421.2 425.8 433.7 431.5 3 M2................................................................................ 1,296.4 1,404.2 1,525.2 1,669.4 1,680.8 1,695.7 1,718.4 1,737.8 1,743.7 4 M3................................................................................ 1,462.5 1,625.7 1,775.1 1,963.5 1,988.3 2,007.9 2,025.9 2,044.3 2,059.8 5 L2.................................................................................. 1,722.7 1,936.5 2,151.1 2,377.4 2,408.1 2,431.2 2,442.3 n.a. n.a. Components 6 Currency....................................................................... 88.6 97.4 106.1 116.1 116.6 117.2 117.9 118.9 119.8 7 Demand deposits.......................................................... 239.7 253.9 262.8 267.4 254.4 245.8 243.5 243.1 240.7 8 Travelers checks3........................................................ 3.1 3.5 3.8 4.2 4.2 4.2 4.4 4.6 4.4 9 Savings deposits............................................................ 486.5 475.5 416.5 393.0 376.9 370.8 368.3 367.0 361.0 10 Small-denomination time deposits4............................ 453.8 533.3 652.7 756.8 775.7 783.3 789.4 790.0 798.6 11 Large-denomination time deposits5............................ 145.1 194.0 219.7 256.8 268.0 273.9 271.0 269.5 278.6 Not seasonally adjusted Measures1 12 Ml-A.................................................................................. 340.1 364.2 382.5 397.7 378.9 358.7 358.9 369.5 359.4 13 Ml-B.................................................................................. 345.1 373.6 400.6 425.9 423.5 411.5 417.8 436.7 424.4 14 M2...................................................................................... 1,299.0 1,409.0 1,531.3 1,675.2 1,683.6 1,685.1 1,713.3 1,745.4 1,737.7 15 M3...................................................................................... 1,467.7 1,634.6 1,785.5 1,974.0 1,993.9 1,999.8 2,023.5 2,050.8 2,052.8 16 L2........................................................................................ 1,726.7 1,943.6 2,158.8 2,384.0 2,411.0 2,424.3 2,443.1 n.a. n.a. Components 17 Currency............................................................................ 90.3 99.4 108.3 118.4 115.7 115.8 116.8 118.4 119.3 18 Demand deposits.............................................................. 247.0 261.5 270.8 275.4 259.2 238.9 237.9 246.8 235.9 19 Travelers checks3............................................................ 2.9 3.3 3.5 3.9 4.0 4.0 4.2 4.3 4.2 20 Other checkable deposits6.............................................. 5.0 9.4 18.2 28.3 44.8 53.0 59.2 67.5 65.3 21 Overnight RPs and Eurodollars7.................................. 18.6 23.9 25.4 32.4 32.7 31.9 33.2 34.0 38.5 22 Money market mutual funds.......................................... 3.8 10.3 43.6 75.8 80.7 92.4 105.6 117.1 118.1 23 Savings deposits................................................................ 483.1 472.6 413.9 390.2 374.2 365.6 365.7 366.4 359.6 24 Small-denomination time deposits4.............................. 451.3 531.7 651.4 755.2 776.9 787.7 794.8 795.2 801.1 25 Large-denomination time deposits5.............................. 147.7 198.1 223.9 261.4 270.8 276.3 273.8 268.3 277.7 1. Composition of the money stock measures is as follows: 4. Small-denomination time deposits are those issued in amounts of less than Ml-A: 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 5. 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; (2) currency outside the Treasury, Federal Reserve Banks, and the government, money market mutual funds, and foreign banks and official institu­ vaults of commercial banks; and (3) travelers checks of nonbank issuers. tions. Ml-B: Ml-A plus negotiable order of withdrawal (NOW) and automatic transfer 6. 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. 7. Overnight (and continuing contract) RPs are those issued by commercial M2: Ml-B 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 banks, and money market mutual fund shares. Note. Latest monthly and weekly figures are available from the Board’s H.6(508) M3: M2 plus large-denomination time deposits at all depository institutions and release. Back data are available from the Banking Section, Division of Research term RPs at commercial banks and savings and loan associations. and Statistics. The monetary aggregates and their components have been revised 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents due to benchmark revisions made on June 26, 1981; for more information see H.6 other than banks, bankers acceptances, commercial paper, Treasury bills and other statistical release, June 26, 1981, or “Announcements,” this Bulletin. liquid Treasury securities, and U.S. savings bonds. 3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics □ July 1981 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MEMBER BANK DEPOSITS1 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. May Seasonally adjusted 1 Total reserves*........................................................................... 41.16 43.46 40.13 41.73 41.23 40.13 40.10 39.76 40.25 40.25 40.81 2 Nonborrowed reserves.............................................................. 40.29 41.98 38.44 40.42 39.17 38.44 38.71'- 38.45 39.25 38.91 38.58 3 Required reserves..................................................................... 40.93 43.13 39.58 41.52 40.73 39.58 39.56 39.57 39.87 40.10 40.55 4 Monetary base4......................................................................... 142.2 153.7 159.8 160.9 160.7 159.8 160.1 160.6 161.3 162.2 163.6 5 Member bank deposits subject to reserve requirements*....... 616.1 644.5 701.8 684.7 694.3 701.8 703.8 704.3 703.4 711.2 715.0 6 Time and savings....................................................................... 428.7 451.2 485.6 485.5 475.4 485.6 517.5 523.4 524.7 531.1 538.1 Demand 7 Private.................................................................................... 185.1 191.5 196.0 195.6 198.1 196.0 184.1 178.8 176.7r 177.4 174.7 8 U.S. government................................................................... 2.2 1.8 1.9 2.4 2.2 1.9 2.3 2.1 2.0 2.8 2.2 Not seasonally adjusted 9 Monetary base4......................................................................... 144.6 156.2 162.5 160.6 161.5 162.5 161.0 158.9 159.6 161.7 162.7 10 Member bank deposits subject to reserve requirements*....... 624.0 652.7 710.3 684.2 694.6 710.3 712.6 701.5 702.9 713.5 710.0 11 Time and savings....................................................................... 429.6 452.1 486.5 485.7 493.0 505.0 520.6 524.9 527.8 531.6 538.1 Demand 12 Private.................................................................................... 191.9 198.6 203.2 196.4 199.6 203.3 189.9 174.5 173.0 178.9 169.8 13 U.S. government................................................................... 2.5 2.0 2.1 2.1 1.9 2.1 2.1 2.0 2.1 3.0 2.1 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 of 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 million 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 . Apr. May Apr. May Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2.............................. 1,013.4^ 1,134.6-* 1,237.3s 1,267.0 1,279.3 1,022.53 1,145.(H 1,248.95 1,265.6 1,276.1 2 U.S. Treasury securities.................................. 93.3 93.8 110.7 115.3 117.7 94.5 95.0 112.1 118.9 118.4 3 Other securities................................................ 173.23 191.8 213.9 217.6 218.6 173.93 192.6 214.8 218.0 219.0 4 Total loans and leases2.................................... 746.93 848.94 912.75 934.2 943.0 754.23 857.44 922.15 928.7 938.7 5 Commercial and industrial loans.............. 246.16 291.I4 324.95 333. Vr 335.0 247.76 293.04 327.05 333.77 335.8 6 Real estate loans.......................................... 210.5 241.34 260.65 268.3 270.4 210.9 241.84 261.15 267.0 269.3 7 Loans to individuals.................................... 164.7 184.9 175.2 174.5 173.9 165.6 186.0 176.2 172.3 172.5 8 Security loans................................................ 19.3 18.6 17.6 19.7 20.0 20.6 19.8 18.8 19.4 19.1 9 Loans to nonbank financial institutions .. 27.18 28.84 28.75 28.8 29.3 27.68 29.34 29.25 28.4 29.1 10 Agricultural loans........................................ 28.2 31.1 31.6 31.9 32.1 28.1 30.9 31.4 31.5 32.0 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.............................................. 43.63 44.0 63.4 65.8 70.2 46.23 47.3 67.5 64.4 68.8 Memo: 13 Total loans and securities plus loans sold2-9 . 1,017.P 1,137.6410 1,240.05 1,269.7' 1,282.1 1,026.23 1,148.04 io 1,251.65 1,268.3 1,278.9 14 Total loans plus loans sold2’9........................ 750.63 851.94 10 915.55 936.9 945.8 757.93 860.44-io 924.85 931.4 941.4 15 Total loans sold to affiliates9........................ 3.7 3.08',0 2.7 2.7 2.8 3.7 3.08-10 2.7 2.7 2.8 16 Commercial and industrial loans plus loans sold9............................................................ 248.06.il 293.14-io 326.65 334.97 336.9 249.66.li 295.04-io 328.85 335.67 337.7 17 Commercial and industrial loans sold9 ... 1.911 2.010 1.8 1.9 1.9 1.911 2.010 1.8 1.9 1.9 18 Acceptances held........................................ 6.6 8.2 8.1 9.6 9.4 7.3 9.1 8.8 9.3 9.1 19 Other commercial and industrial loans... 239.5 282.9 316.7 323.5 325.6 240.4 283.9 318.2 324.4 326.7 20 To U.S. addressees12.............................. 226.0 264.1 295.2 297.8 300.7 225.9 264.1 295.2 298.9 302.1 21 To non-U.S. addressees.......................... 13.5 18.8 21.5 25.7 24.9 14.5 19.8 23.0 25.5 24.7 22 Loans to foreign banks.................................. 21.5 18.5 23.2 22.8 23.7 23.2 20.0 24.9 22.1 22.9 1. Includes domestically chartered banks; U.S. branches and agencies of foreign 8. As of Dec. 1, 1978, nonbank financial loans were reduced $0.1 billion as the banks, New York investment companies majority owned by foreign banks, and result of reclassification. Edge Act corporations owned by domestically chartered and foreign banks. 9. Loans sold are those sold outright to a bank’s own foreign branches, non­ 2. Excludes loans to commercial banks in the United States. consolidated nonbank affiliates of the bank, the bank’s holding company (if not a 3. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion. bank), and nonconsolidated nonbank subsidiaries of the holding company. “Other securities” were increased by $1.5 billion and total loans were reduced by 10. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and $1.6 billion largely as the result of reclassifications of certain tax-exempt obligations. commercial and industrial loans sold were reduced $700 million due to corrections Most of the loan reduction was in “all other loans.” of two banks in New York City. 4. As of Jan. 3, 1979, as the result of reclassifications, total loans and securities 11. As of Dec. 31, 1978, commercial and industrial loans sold outright were and total loans were increased by $0.6 billion. Business loans were increased by increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount $0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were was offset by a balance sheet reduction of $0.1 billion as noted above. reduced by $0.3 billion. 12. United States includes the 50 states and the District of Columbia. 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 Note. 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. An accounting procedure change by one bank reduced commercial and in­ investment companies, and Edge Act corporations engaged in banking. dustrial loans by $0.1 billion as of Apr. 1, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics □ July 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Total nondeposit funds 1 Seasonally adjusted2....................................... 61.5 91.2 121.1 114.0 119.9 116.9 120.5 124.7' 122.3' 117.5' 112.0' 118.5 2 Not seasonally adjusted.................................... 60.1 90.2 119.8 114.5 120.8 120.1 119.9 122.2 121.5' 117.2' 111.6' 122.9 Federal funds, RPs, and other borrowings from non-banks3 3 Seasonally adjusted......................................... 58.4 80.7 90.0 102.2 105.7 105.4 109.6 113.6' 110.9' 110.7' 109.6' 106.8 4 Not seasonally adjusted.................................... 57.0 79.7 88.7 102.7 106.6 108.6 109.0 111.1 110.2' 110.5' 109.2' 111.2 5 Net balances due to foreign-related institutions, not seasonally adjusted................................ -1.5 6.8 28.1 8.9 11.4 8.9 8.2 8.3 8.5 4.0 -.3 8.9 6 Loans sold to affiliates, not seasonally adjusted4,5.................................................... 4.7 3.7 3.0 2.9 2.8 2.6 2.7 2.8 2.8 2.8 2.7 2.8 Memo 7 Domestically chartered banks net positions with own foreign branches, not seasonally adjusted6...................................................... -12.5 -10.2 6.5 -14.5 -12.9 -14.2 -14.7 -16.2 -14.7 -16.9 -21.2' -13.4 8 Gross due from balances.................................. 21.1 24.9 22.8 38.2 38.3 37.3 37.5 37.5 36.4 38.9 43.3' 44.3 9 Gross due to balances..................................... 8.6 14.7 29.3 23.7 25.5 23.1 22.8 21.2 21.7 22.0 22.1' 30.9 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7...................................................... 10.9 17.0 21.6 23.3 24.3 23.1 22.9 24.5 23.2 20.9 20.9' 22.3 11 Gross due from balances.................................. 10.7 14.3 28.9 30.3 30.8 31.0 32.5 31.4 31.7 31.7 33.5' 34.7 12 Gross due to balances..................................... 21.7 31.3 50.5 53.6 55.2 54.1 55.4 55.9 54.9 52.6 54.4' 57.0 Security RP borrowings 13 Seasonally adjusted*....................................... 36.0 44.8 49.2 56.2 59.7 58.8 63.4 68.7 67.0 67.1 67.0 64.4 14 Not seasonally adjusted.................................... 35.1 43.6 47.9 58.7 59.5 60.9 61.7 65.0 65.2 65.8 65.6 67.7 U.S. Treasury demand balances9 15 Seasonally adjusted......................................... 4.4 8.7 8.9 11.0' 11.5' 8.1' 8.4' 6.9' 8.2' 11.7' 12.3' 14.2 16 Not seasonally adjusted.................................... 5.1 10.3 9.7 13.8' 12.6' 6.7' 9.0' 8.0' 8.1' 10.3' 12.1' 12.4 Time deposits, $100,000 or more™ 17 Seasonally adjusted......................................... 162.0 213.0 227.1 244.7' 247.8' 254.9' 265.8' 277.0' 282.5' 281.1' 284.3' 294.8 18 Not seasonally adjusted.................................... 165.4 217.9 232.8 241.0' 246.8' 257.9' 272.4' 282.0' 287.0' 285.9' 283.7' 293.6 1. Commercial banks are those in the 50 states and the District of Columbia 5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to with national or state charters plus agencies and branches of foreign banks, New corrections of two New York City banks. York investment companies majority owned by foreign banks, and Edge Act cor­ 6. Averages of daily figures for member and nonmember banks. Before October porations owned by domestically chartered and foreign banks. 1980 nonmember banks were interpolated from quarterly call report data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 7. Includes averages of current and previous month-end data until August 1979; nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In­ beginning September 1979 averages oi daily data. cludes averages of Wednesday data for domestically chartered banks and averages 8. Based on daily average data reported by 122 large banks beginning February of current and previous month-end data for foreign-related institutions. 1980 and 46 banks before February 1980. 3. Other borrowings are borrowings on any instrument, such as a promissory 9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at note or due bill, given for the purpose of borrowing money for the banking business. commercial banks. Averages of daily data. This includes borrowings from Federal Reserve Banks and from foreign banks, 10. Averages of Wednesday figures. term federal funds, overdrawn due from bank balances, loan RPs, and participa­ tions in pooled loans. Includes averages of daily figures for member banks and Note. Movement of federal funds, RPs, and other borrowings from nonbanks averages of current and previous month-end data for foreign-related institutions. (lines 3 and 4) is based on fluctuations in security RP borrowings (lines 13 and 14) 4. Loans initially booked by the bank and later sold to affiliates that are still and borrowings from unaffiliated foreign sources (not shown) after October 1980. held by affiliates. Averages of Wednesday data. U.S. Treasury demand balances (lines 15 and 16) and time deposits of $100,000 or more (lines 17 and 18) have revised beginning July 1980 to reflect benchmarking to the June, September and December 1980 call reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A17 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.' Apr. May June Domestically Chartered Commercial Banks1 1 Loans and securities, excluding interbank............................................ 1,108.5 1,117.9 1,134.8 1,150.8 1,177.1 1,166.0 1,167.0 1,169.5 1,187.8 1,194.6 1,205.3 2 Loans, excluding interbank...................... 801.9 809.1 821.6 832.8 851.4 840.2 839.0 840.6 855.4 862.4 872.2 3 Commercial and industrial.................. 259.5 263.9 269.0 275.7 281.5 277.6 276.3 277.5 285.4 287.9 293.1 4 Other........................................................ 542.4 545.2 552.6 557.1 569.9 562.6 562.7 563.1 570.1 574.5 579.1 5 U.S. Treasury securities............................ 101.4 103.2 104.4 107.1 111.2 112.0 113.7 112.9 115.8 114.9 116.1 6 Other securities.......................................... 205.2 205.6 208.9 210.9 214.6 213.8 214.3 216.0 216.6 217.3 216.9 7 Cash assets, total........................................ 148.8 156.6 155.9 175.6 194.2 159.3 165.9 167.9 181.8 180.3 169.8 8 Currency and coin.................................. 18.2 17.8 18.3 16.9 19.9 18.7 18.6 17.8 18.8 19.5 19.1 9 Reserves with Federal Reserve Banks 29.0 31.1 31.7 30.4 28.2 25.2 30.4 31.8 38.3 25.2 25.4 10 Balances with depository institutions . 45.9 46.8 47.2 56.1 63.0 54.9 54.6 55.1 57.3 62.0 60.7 11 Cash items in process of collection ... 55.8 60.9 58.8 72.2 83.0 60.5 62.3 63.3 67.4 73.6 64.6 12 Other assets2.............................................. 150.3 154.4 151.3 151.3 165.6 155.8 160.1 163.4 167.7 158.8 168.6 13 Total assets/total liabilities and capital... 1,407.7 1,428.9 1,442.1 1,477.7 1,537.0 1,481.0 1,493.0 1,500.9 1,537.3 1,533.7 1,543.7 14 Deposits...................................................... 1,062.8 1,077.2 1,092.9 1,126.2 1,187.4 1,128.7 1,132.0 1,136.5 1,151.7 1,170.3 1,165.9 15 Demand.................................................. 363.4 369.7 375.7 393.0 432.2 351.1 345.5 345.3 356.8 360.7 350.9 16 Savings.................................................... 208.5 209.1 210.9 209.5 201.3 211.9 214.3 220.5 222.7 220.9 220.7 17 Time........................................................ 490.9 498.5 506.2 523.7 553.8 565.7 572.3 570.7 572.2 588.7 594.3 18 Borrowings.................................................. 158.5 163.7 161.7 157.3 156.4 156.4 163.2 163.8 179.5 155.7 169.3 19 Other liabilities.......................................... 75.4 75.6 74.7 78.1 79.0 76.7 80.3 80.6 81.8 82.3 81.8 20 Residual (assets less liabilities)................ 111.0 112.3 112.7 116.1 114.2 119.3 117.5 120.0 124.3 125.4 126.7 Memo: 21 U.S. Treasury note balances included in borrowing............................................ 8.7 15.7 11.5 4.4 9.5' 9.5 8.5 10.2 16.9 5.5 17.4 22 Number of banks...................................... 14,666 14,678 14,760 14,692 14,693 14,689 14,696 14,701 14,713 14,719 14,719 All Commercial Banking Institutions3 23 Loans and securities, excluding interbank............................................ 1,194.3 1,262.4 1,253.8 24 Loans, excluding interbank...................... 881.5 932.5 920.9 25 Commercial and industrial.................. 308.1 330.6 329.3 26 Other........................................................ 573.4 601.9 591.6 27 U.S. Treasury securities............................ 105.6 113.6 115.2 28 Other securities.......................................... 207.2 216.3 217.7 29 Cash assets, total........................................ 178.2 218.6 193.6 30 Currency and coin.................................. 17.8 20.0 17.8 31 Reserves with Federal Reserve Banks 31.6 29.0 32.7 32 Balances with depository institutions . 66.4 85.0 77.9 n.a. 33 Cash items in process of collection ... 62.4 84.7 65.3 34 Other assets2 204.3 222.7 225.5 35 Total assets/total liabilities and capital... 1,576.8 1,703.7 1,673.0 36 Deposits...................................................... 1,122.1 1,239.9 1,190.6 37 Demand.................................................. 388.8 453.6 367.4 38 Savings.................................................... 209.5 201.6 220.7 39 Time........................................................ 523.9 584.7 602.5 40 Borrowings ................................................ 211.0 210.4 223.3 41 Other liabilities.......................................... 129.7 135.5 137.2 42 Residual (assets less liabilities)................ 113.9 117.9 121.9 Memo: 43 U.S. Treasury note balances included in borrowing............................................ 15.7 9.5 10.2 44 Number of banks...................................... 15,084 15,120 15,147 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 the last day of the quarter. 3. Commercial banking institutions include domestically chartered commercial 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 □ July 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. 29 May 6 May 13 May 20 May 27 p June 30 p June 10 p June 17p June 24 p 1 Cash items in process of collection.............................. 55,348 56,242 54,134 53,492 59,894 57,965 56,568 66,599 53,159 2 Demand deposits due from banks in the United States ..................................................................... 19,504 19,536 19,680 19,684 19,536 21,964 19,478 19,027 21,507 3 All other cash and due from depository institutions.. 42,633 33,910 30,714 35,571 29,911 36,154 30,776 37,279 31,538 4 Total loans and securities............................................. 558,677 564,716 561,613 559,536 563,300 571,413 572,730 573,191 571,939 Securities 5 U.S. Treasury securities............................................... 39,720 40,190 39,655 39,560 39,632 42,128 43,334 43,138 40,945 6 Trading account........................................................ 5,440 5,590 4,985 5,108 5,306 7,685 8,879 8,836 7,071 7 Investment account, by maturity............................ 34,280 34,600 34,671 34,452 34,326 34,444 34,455 34,303 33,874 8 One year or less.................................................... 9,997 10,439 10,359 10,150 10,126 10,627 10,788 10,758 10,506 9 Over one through five years................................ 20,447 20,367 20,531 20,484 20,393 19,994 19,840 19,708 19,596 10 Over five years...................................................... 3,836 3,794 3,781 3,817 3,807 3,823 3,827 3,836 3,772 11 Other securities............................................................ 77,596 78,317 76,813 76,761 76,857 78,914 78,092 77,593 77,000 12 Trading account........................................................ 2,671 3,663 2,117 2,079 2,078 3,711 2,945 2,723 2,353 13 Investment account................................................... 74,925 74,654 74,696 74,682 74,779 75,202 75,148 74,870 74,648 14 U.S. government agencies.................................... 16,395 16,364 16,411 16,410 16,449 16,556 16,406 16,364 16,256 15 States and political subdivision, by maturity---- 55,680 55,537 55,527 55,495 55,555 55,882 55,970 55,745 55,672 16 One year or less................................................. 7,269 7,344 7,288 7,277 7,338 7,733 7,767 7,502 7,398 17 Over one year................................................... 48,412 48,194 48,239 48,218 48,217 48,149 48,203 48,242 48,274 18 Other bonds, corporate stocks and securities___ 2,849 2,753 2,757 2,777 2,776 2,764 2,771 2,761 2,720 Loans 19 Federal funds soldi...................................................... 26,696 27,266 28,826 26,717 29,213 28,491 32,141 27,334 29,959 20 To commercial banks............................................... 17,853 18,312 18,830 18,754 19,975 19,753 22,469 19,136 20,965 21 To nonbank brokers and dealers in securities....... 6,605 6,799 6,634 5,961 6,399 6,714 6,427 6,266 6,432 22 To others................................................................... 2,238 2,155 3,361 2,002 2,840 2,024 3,245 1,932 2,563 23 Other loans, gross........................................................ 426,478 430,788 428,174 428,386 429,509 433,858 431,209 437,230 436,122 24 Commercial and industrial....................................... 174,456 176,899 175,545 174,878 175,464 176,639 176,005 178,296 178,750 25 Bankers acceptances and commercial paper....... 4,414 4,576 3,803 3,758 4,256 4,209 4,217 4,585 4,878 26 All other................................................................ 170,042 172,322 171,743 171,119 171,208 172,430 171,788 173,711 173,873 27 U.S. addressees................................................. 162,838 165,018 164,289 163,817 163,862 165,033 164,226 166,140 166,320 28 Non-U.S. addressees......................................... 7,203 7,304 7,454 7,302 7,345 7,397 7,562 7,570 7,553 29 Real estate................................................................... 115,342 115,453 116,033 116,227 116,365 116,635 116,918 117,237 117,519 30 To individuals for personal expenditures............... 70,598 70,458 70,486 70,532 70,634 70,708 70,720 70,875 71,026 To financial institutions 31 Commercial banks in the United States............. 4,917 4,828 4,868 4,430 4,773 5,274 4,870 5,321 5,363 32 Banks in foreign countries.................................... 8,055 8,450 8,344 9,045 9,038 8,783 8,746 8,741 8,386 33 Sales finance, personal finance companies, etc .. 10,084 10,178 9,904 9,924 9,773 9,841 9,894 9,822 9,812 34 Other financial institutions.................................... 15,225 15,631 15,661 15,810 15,543 15,966 15,907 16,114 15,948 35 To nonbank brokers and dealers in securities....... 6,344 6,401 5,872 5,610 5,630 7,796 6,105 7,866 6,906 36 To others for purchasing and carrying securities2 .. 2,357 2,509 2,567 2,591 2,572 2,592 2,616 2,539 2,509 37 To finance agricultural............................................. 5,590 5,656 5,712 5,763 5,782 5,823 5,821 5,844 5,902 38 All other................................................................... 13,509 14,325 13,181 13,577 13,934 13,799 13,604 14,575 13,998 39 Less: Unearned income............................................... 5,840 5,803 5,805 5,810 5,834 5,838 5,880 5,914 5,921 40 Loan loss reserve............................................... 5,973 6,042 6,051 6,078 6,076 6,139 6,166 6,192 6,166 41 Other loans, net............................................................ 414,664 418,943 416,318 416,498 417,598 421,880 419,162 425,125 424,035 42 Lease financing receivables......................................... 10,142 10,124 10,173 10,201 10,218 10,242 10,259 10,269 10,272 43 All other assets............................................................ 91,751 90,099 89,140 86,871 84,580 87,779 90,940 91,260 90,285 44 Total assets................................................................... 778,056 774,628 765,455 765,357 767,440 785,518 780,752 797,625 778,700 Deposits 45 Demand deposits.......................................................... 188,649 190,281 185,036 182,768 191,452 195,134 192,070 200,130 188,279 46 Mutual savings banks............................................... 599 674 579 576 589 689 495 521 517 47 Individuals, partnerships, and corporations........... 128,823 129,194 127,775 125,053 130,954 130,752 131,013 133,582 125,959 48 States and political subdivisions.............................. 4,456 4,993 4,002 4,335 4,498 4,262 4,306 4,734 4,427 49 U.S. government...................................................... 2,880 1,829 1,183 3,099 1,104 3,312 1,913 2,098 3,193 50 Commercial banks in the United States................. 32,839 35,125 35,242 32,792 35,972 36,735 35,232 34,059 36,122 51 Banks in foreign countries....................................... 8,400 7,847 7,616 8,159 9,195 8,674 8,488 9,408 9,126 52 Foreign governments and official institutions......... 1,987 1,992 1,469 1,271 1,558 1,725 1,990 1,623 1,492 53 Certified and officers’ checks.................................. 8,664 8,625 7,169 7,483 7,580 8,985 8,633 14,105 7,441 54 Time and savings deposits........................................... 322,988 326,510 328,552 330,722 331,715 334,602 333,130 331,623 334,260 55 Savings....................................................................... 77,894 78,439 77,679 77,344 77,064 77,797 77,822 77,719 76,796 56 Individuals and nonprofit organizations............. 73,904 74,480 73,691 73,415 73,133 73,903 73,953 73,920 72,919 57 Partnerships and corporations operated for profit.............................................................. 3,376 3,341 3,311 3,265 3,300 3,244 3,273 3,180 3,194 58 Domestic governmental units.............................. 597 596 655 640 610 633 579 599 662 59 All other................................................................ 17 21 22 24 21 16 18 21 22 60 Time........................................................................... 245,094 248,070 250,873 253,378 254,650 256,805 255,308 253,904 257,463 61 Individuals, partnerships, and corporations....... 211,052 213,863 216,054 218,236 219,492 221,968 220,914 220,197 223,663 62 States and political subdivisions.......................... 19,924 19,910 20,218 20,309 20,176 19,852 19,626 19,250 19,268 63 U.S. government................................................... 228 233 257 253 255 258 240 264 271 64 Commercial banks in the United States............. 7,833 7,884 8,147 8,351 8,421 8,394 8,272 7,934 8,020 65 Foreign governments, official institutions, and banks.............................................................. 6,057 6,180 6,196 6,228 6,307 6,333 6,256 6,258 6,241 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks............... 7,478 965 2,530 2,352 369 4,843 2,669 5,447 616 67 Treasury tax-and-loan notes.................................... 12,536 10,008 8,743 4,009 3,568 2,023 2,536 11,360 12,578 68 All other liabilities for borrowed money3............... 128,539 129,508 122,596 124,728 121,896 128,969 132,092 130,599 124,707 69 Other liabilities and subordinated notes and debentures.............................................................. 66,742 65,697 66,287 69,300 66,858 67,971 66,201 66,872 66,369 70 Total liabilities.............................................................. 726,932 722,969 713,744 713,879 715,856 733,542 728,699 746,031 726,809 71 Residual (total assets minus total liabilities)4............. 51,123 51,659 51,711 51,478 51,584 51,976 52,054 51,594 51,891 1. Includes securities purchased under agreements to resell. 4. Not a measure of equity capital for use in capital adequacy analysis or for 2. Other than financial institutions and brokers and dealers. 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 Digitized for FRAmoSreE oRn Dec. 31, 1977, see table 1.13. 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. 29 May 6 May 13 May 20 May 27 p June 3 p June 10 p June 17 p June 24 p 1 Cash items in process of collection.............................. 52,165 53,367 51,272 50,781 56,561 54,958 53,977 63,404 50,128 2 Demand deposits due from banks in the United States ..................................................................... 18,855 18,814 19,097 18,825 18,751 21,319 18,943 18,424 20,739 3 All other cash and due from depository institutions.. 39,977 31,948 28,620 33,206 27,646 34,016 28,755 34,846 29,378 4 Total loans and securities............................................. 521,738 526,972 524,618 522,624 526,474 533,782 534,896 535,397 534,105 Securities 5 U.S. Treasury securities............................................... 36,264 36,752 36,214 36,146 36,231 38,733 39,925 39,707 37,526 6 Trading account........................................................ 5,370 5,525 4,917 5,046 5,244 7,613 8,801 8,750 6,993 7 Investment account, by maturity............................ 30,894 31,227 31,296 31,100 30,987 31,120 31,124 30,958 30,533 8 One year or less.................................................... 9,183 9,603 9,545 9,354 9,330 9,790 9,925 9,884 9,632 9 Over one through five years................................ 18,250 18,199 18,346 18,315 18,233 17,881 17,742 17,607 17,498 10 Over five years...................................................... 3,461 3,425 3,406 3,431 3,424 3,449 3,457 3,467 3,403 11 Other securities............................................................ 71,333 72,073 70,602 70,529 70,635 72,593 71,818 71,358 70,740 12 Trading account........................................................ 2,583 3,571 2,061 2,005 2,017 3,632 2,886 2,659 2,284 13 Investment account................................................... 68,750 68,502 68,542 68,524 68,618 68,961 68,932 68,699 68,456 14 U.S. government agencies.................................... 15,199 15,177 15,225 15,234 15,272 15,372 15,222 15,190 15,082 15 States and political subdivision, by maturity .... 50,873 50,743 50,731 50,690 50,747 51,001 51,115 50,925 50,831 16 One year or less................................................. 6,567 6,650 6,596 6,587 6,652 6,970 6,992 6,772 6,661 17 Over one year................................................... 44,306 44,093 44,135 44,103 44,095 44,031 44,123 44,153 44,170 18 Other bonds, corporate stocks and securities.... 2,678 2,582 2,586 2,600 2,599 2,588 2,594 2,584 2,543 Loam 19 Federal funds soldi...................................................... 24,144 23,960 26,187 24,238 26,767 25,378 28,695 24,045 26,625 20 To commercial banks............................................... 15,779 15,652 16,787 16,826 18,037 17,124 19,543 16,328 18,182 21 To nonbank brokers and dealers in securities........ 6,145 6,181 6,058 5,438 5,918 6,252 5,928 5,797 5,900 22 To others................................................................... 2,220 2,127 3,342 1,974 2,812 2,002 3,224 1,919 2,542 23 Other loans, gross........................................................ 400,830 405,051 402,484 402,610 403,765 408,068 405,513 411,393 410,302 24 Commercial and industrial....................................... 165,587 168,009 166,643 165,944 166,573 167,730 167,120 169,429 169,922 25 Bankers acceptances and commercial paper....... 4,231 4,398 3,631 3,587 4,087 4,028 4,040 4,404 4,701 26 All other................................................................ 161,356 163,611 163,012 162,358 162,486 163,702 163,080 165,025 165,221 27 U.S. addressees................................................. 154,220 156,374 155,627 155,125 155,210 156,373 155,587 157,524 157,739 28 Non-U.S. addressees......................................... 7,136 7,237 7,385 7,233 7,276 7,329 7,494' 7,500 7,482 29 Real estate................................................................ 108,810 108,940 109,485 109,670 109,823 110,103 110,382 110,669 110,944 30 To individuals for personal expenditures............... 62,115 61,973 62,011 62,039 62,136 62,196 62,198 62,343 62,462 To financial institutions 31 Commercial banks in the United States............. 4,817 4,724 4,763 4,325 4,673 5,165 4,764 5,173 5,216 32 Banks in foreign countries.................................... 8,004 8,378 8,286 8,976 8,968 8,700 8,662 8,671 8,316 33 Sales finance, personal finance companies, etc .. 9,941 10,034 9,755 9,772 9,621 9,692 9,746 9,684 9,684 34 Other financial institutions.................................... 14,868 15,263 15,294 15,435 15,170 15,608 15,542 15,734 15,562 35 To nonbank brokers and dealers in securities....... 6,242 6,313 5,789 5,526 5,544 7,710 6,017 7,774 6,817 36 To others for purchasing and carrying securities2 .. 2,152 2,302 2,365 2,392 2,376 2,393 2,418 2,336 2,306 37 To finance agricultural production.......................... 5,450 5,513 5,568 5,619 5,634 5,679 5,679 5,697 5,755 38 All other................................................................... 12,844 13,603 12,525 12,910 13,246 13,092 12,985 13,883 13,318 39 Less: Unearned income............................................... 5,210 5,172 5,168 5,172 5,200 5,207 5,246 5,274 5,277 40 Loan loss reserve............................................... 5,624 5,692 5,700 5,728 5,724 5,783 5,809 5,833 5,811 41 Other loans, net............................................................ 389,997 394,187 391,615 391,709 392,840 397,078 394,458 400,286 399,213 42 Lease financing receivables......................................... 9,852 9,834 9,884 9,911 9,927 9,949 9,965 9,974 9,978 43 All other assets............................................................ 88,923 87,349 86,412 84,250 81,803 85,101 88,293 88,641 87,465 44 Total assets................................................................... 731,510 728,285 719,903 719,597 721,161 739,125 734,829 750,687 731,794 Deposits 45 Demand deposits.......................................................... 176,588 178,450 173,637 171,168 179,422 183,224 180,717 188,270 176,405 46 Mutual savings banks............................................... 577 642 552 550 561 651 474 500 498 47 Individuals, partnerships, and corporations........... 119,683 119,959 118,688 115,921 121,577 121,589 122,054 124,459 116,981 48 States and political subdivisions.............................. 3,901 4,400 3,532 3,784 3,968 3,732 3,830 4,075 3,865 49 U.S. government...................................................... 2,220 1,628 1,082 2,839 977 3,057 1,699 1,767 2,652 50 Commercial banks in the United States................. 31,553 33,729 33,906 31,502 34,349 35,223 33,934 32,735 34,706 51 Banks in foreign countries....................................... 8,324 7,769 7,537 8,067 9,119 8,578 8,386 9,319 9,053 52 Foreign governments and official institutions......... 1,983 1,989 1,458 1,270 1,556 1,724 1,988 1,615 1,485 53 Certified and officers’ checks.................................. 8,348 8,333 6,881 7,235 7,314 8,669 8,351 13,800 7,165 54 Time and savings deposits........................................... 301,827 305,156 307,131 309,131 310,056 312,687 311,242 309,698 312,275 55 Savings....................................................................... 71,903 72,407 71,717 71,420 71,167 71,810 71,864 71,778 70,880 56 Individuals and nonprofit organizations............. 68,238 68,768 68,042 67,799 67,542 68,233 68,301 68,270 67,348 57 Partnerships and corporations operated for profit.............................................................. 3,108 3,082 3,052 3,010 3,040 2,989 3,017 2,927 2,943 58 Domestic governmental units.............................. 540 536 601 587 564 571 528 560 568 59 All other................................................................ 17 21 22 24 21 16 18 21 22 60 Time........................................................................... 229,924 232,749 235,414 237,711 238,889 240,877 239,379 237,920 241,395 61 Individuals, partnerships, and corporations....... 197,999 200,653 202,700 204,726 205,895 208,190 207,121 206,279 209,671 62 States and political subdivisions.......................... 18,154 18,139 18,463 18,510 18,376 18,084 17,882 17,572 17,578 63 U.S. government................................................... 207 212 237 235 236 241 224 250 258 64 Commercial banks in the United States............. 7,506 7,565 7,817 8,011 8,075 8,030 7,895 7,562 7,647 65 Foreign governments, official institutions, and banks .............................................................. 6,057 6,180 6,196 6,228 6,307 6,333 6,256 6,258 6,241 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks............... 7,176 951 2,411 2,054 302 4,731 2,546 5,314 578 67 Treasury tax-and-loan notes.................................... 11,662 9,318 8,136 3,698 3,327 1,856 2,365 10,510 11,560 68 All other liabilities for borrowed money3............... 121,231 121,887 115,424 117,617 114,597 121,597 124,642 123,233 117,686 69 Other liabilities and subordinated notes and debentures.......................................................... 65,309 64,248 64,855 67,819 65,262 66,446 64,689 65,484 64,811 70 Total liabilities.............................................................. 683,792 680,011 671,594 671,487 672,966 690,541 686,201 702,509 683,315 71 Residual (total assets minus total liabilities)4............. 47,717 48,274 48,309 48,110 48,195 48,584 48,628 48,178 48,479 1. Includes securities purchased under agreements to resell. 4. Not a measure of equity capital for use in capital adequacy analysis or for 2. Other than financial institutions and brokers and dealers. 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 Digitized for mFoRreA oSn EDRec. 31, 1977, see table 1.13. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics □ July 1981 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures Account Apr. 29 May 6 May 13 May 20 May 21 p June 3 p June 10/> June 17p June 24 P 1 Cash items in process of collection.............................. 21,805 22,135 19,698 19,706 20,653 21,808 24,382 30,078 20,189 2 Demand deposits due from banks in the United States..................................................................... 13,486 13,249 14,545 13,859 12,866 15,950 13,698 13,129 15,709 3 All other cash and due from depository institutions.. 9,721 10,070 7,139 8,348 5,275 9,853 8,514 10,211 5,394 4 Total loans and securities1........................................... 126,725 127,833 128,544 127,664 128,801 130,759 129,003 130,349 129,182 Securities 5 U.S. Treasury securities2............................................. 6 Trading account2...................................................... 7 Investment account, by maturity............................ 8,735 9,082 9,172 9,152 9,074 9,239 9,164 9,062 8,873 8 One year or less.................................................... 2,079 2,379 2,352 2,320 2,313 2,371 2,371 2,368 2,294 9 Over one through five years................................ 5,831 5,928 6,045 6,045 6,000 6,077 5,979 5,884 5,785 10 Over five years...................................................... 824 775 775 787 761 791 814 810 793 11 Other securities2.......................................................... 12 Trading account2...................................................... 13 Investment account.................................................. 14,031 14,084 14,116 14,125 14,162 14,575 14,718 14,605 14,456 14 U.S. government agencies.................................... 2,637 2,648 2,648 2,628 2,621 2,663 2,642 2,642 2,588 15 States and political subdivision, by maturity__ 10,756 10,814 10,844 10,849 10,884 11,260 11,424 11,314 11,260 16 One year or less................................................. 1,484 1,524 1,558 1,575 1,604 1,948 2,007 1,878 1,842 17 Over one year................................................... 9,272 9,290 9,286 9,274 9,279 9,312 9,416 9,436 9,418 18 Other bonds, corporate stocks and securities___ 638 622 623 648 658 652 651 649 608 Loans 19 Federal funds sold3...................................................... 8,034 7,069 8,994 8,251 9,017 7,400 8,110 6,372 7,549 20 To commercial banks............................................... 3,751 2,812 4,302 4,673 4,502 2,737 3,903 2,464 3,427 21 To nonbank brokers and dealers in securities....... 3,323 3,365 3,294 2,721 3,448 3,720 2,998 2,954 2,953 22 To others................................................................... 960 891 1,398 857 1,067 943 1,210 954 1,169 23 Other loans, gross........................................................ 99,043 100,709 99,374 99,269 99,690 102,726 100,231 103,567 101,558 24 Commercial and industrial....................................... 51,431 52,120 51,385 50,956 51,347 52,150 51,696 52,622 51,994 25 Bankers acceptances and commercial paper....... 1,248 1,198 870 936 1,060 1,259 1,354 1,562 1,578 26 All other............................................................... 50,183 50,922 50,515 50,019 50,288 50,890 50,342 51,059 50,415 27 U.S. addressees................................................. 47,661 48,385 48,028 47,472 47,714 48,322 47,663 48,405 47,859 28 Non-U.S. addressees......................................... 2,522 2,537 2,486 2,547 2,574 2,568 2,679 2,654 2,556 29 Real estate............................................................... 15,549 15,596 15,770 15,806 15,866 15,875 15,856 15,951 16,020 30 To individuals for personal expenditures............... 9,700 9,724 9,767 9,805 9,829 9,890 9,914 9,950 9,974 31 To financial institutions Commercial banks in the United States............. 1,373 1,334 1,250 888 1,172 1,618 1,025 1,364 1,428 32 Banks in foreign countries.................................... 3,804 4,090 4,024 4,696 4,656 4,501 4,419 4,417 4,040 33 Sales finance, personal finance companies, etc... 4,174 4,300 3,935 4,083 3,983 4,036 3,982 4,036 4,088 34 Other financial institutions.................................... 4,203 4,388 4,537 4,488 4,543 4,651 4,724 4,716 4,606 35 To nonbank brokers and dealers in securities....... 3,780 3,811 3,645 3,375 3,226 5,136 3,715 5,170 4,294 36 To others for purchasing and carrying securities4 .. 486 622 635 620 618 628 647 614 584 37 To finance agricultural production.......................... 434 431 434 454 449 440 428 417 407 38 All other................................................................... 4,109 4,291 3,992 4,097 4,000 3,800 3,826 4,308 4,122 39 Less: Unearned income............................................... 1,238 1,218 1,212 1,223 1,238 1,249 1,267 1,289 1,303 40 Loan loss reserve............................................... 1,880 1,894 1,900 1,909 1,904 1,932 1,953 1,969 1,950 41 Other loans, net............................................................ 95,926 97,597 96,263 96,137 96,548 99,545 97,011 100,309 98,305 42 Lease financing receivables......................................... 2,255 2,252 2,246 2,247 2,248 2,240 2,242 2,241 2,241 43 All other assets5............................................................ 36,531 35,708 33,796 33,501 32,158 36,951 40,611 39,387 37,270 44 Total assets................................................................... 210,523 211,247 205,968 205,326 202,001 217,563 218,450 225,396 209,986 Deposits 45 Demand deposits.......................................................... 64,827 66,281 63,612 62,396 64,631 69,242 70,236 75,627 67,360 46 Mutual savings banks............................................... 295 343 304 305 291 330 246 241 266 47 Individuals, partnerships, and corporations........... 31,422 32,369 30,043 30,100 32,276 32,696 34,225 35,546 31,038 48 States and political subdivisions.............................. 368 494 351 426 356 417 511 467 476 49 U.S. government...................................................... 605 352 452 731 193 865 395 697 766 50 Commercial banks in the United States................. 19,540 20,536 22,277 20,067 19,328 22,094 22,232 20,196 22,870 51 Banks in foreign countries....................................... 6,587 6,157 5,844 6,303 7,259 6,748 6,580 7,381 7,357 52 Foreign governments and official institutions......... 1,626 1,698 1,229 984 1,299 1,450 1,704 1,342 1,176 53 Certified and officers’ checks.................................. 4,383 4,332 3,111 3,479 3,629 4,642 4,344 9,756 3,410 54 Time and savings deposits........................................... 57,480 58,197 58,608 58,353 57,826 58,767 58,452 58,022 59,073 55 Savings....................................................................... 9,427 9,454 9,470 9,385 9,399 9,328 9,334 9,394 9,262 56 Individuals and nonprofit organizations............. 9,044 9,062 9,022 8,967 8,966 8,929 8,946 9,005 8,871 57 Partnerships and corporations operated for profit.............................................................. 272 271 272 272 280 271 271 264 261 58 Domestic governmental units.............................. 107 118 173 141 149 125 115 120 124 59 All other................................................................ 2 3 3 5 3 2 2 5 6 60 Time........................................................................... 48,053 48,743 49,139 48,968 48,428 49,439 49,117 48,628 49,811 61 Individuals, partnerships, and corporations....... 40,791 41,396 41,776 41,692 41,170 42,060 41,757 41,451 42,484 62 States and political subdivisions.......................... 1,797 1,806 1,829 1,784 1,706 1,811 1,826 1,722 1,708 63 U.S. government.................................................. 38 52 51 46 46 46 35 60 65 64 Commercial banks in the United States............. 2,568 2,533 2,566 2,524 2,527 2,513 2,546 2,479 2,679 65 Foreign governments, official institutions, and banks .............................................................. 2,859 2,955 2,917 2,922 2,978 3,008 2,952 2,916 2,875 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks............... 3,162 430 894 3,085 1,070 3,085 67 Treasury tax-and-loan notes.................................... 3,019 2,405 2,225 940 1,042 389 741 3,031 2,964 68 All other liabilities for borrowed money6............... 40,005 41,455 38,158 40,256 37,114 43,716 46,910 44,314 39,588 69 Other liabilities and subordinated notes and debentures.............................................................. 26,299 26,398 26,367 27,355 25,375 26,077 24,777 25,232 24,982 70 Total liabilities.............................................................. 194,793 195,166 189,864 189,301 185,988 201,275 202,186 209,312 193,967 71 Residual (total assets minus total liabilities)7............. 15,730 16,081 16,104 16,025 16,013 16,288 16,264 16,084 16,019 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. 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 Apr. 29 May 6 May 13 May 20 may 27 p June 3 p June 10 p June 17 p June 24p Banks with Assets of $750 Million or More 1 Total loans (gross} and securities adjusted1................ 547,720 553,421 549,770 548,241 550,463 558,363 557,437 560,839 557,699 2 Total loans (gross) adjusted1.......................................... 430,405 434,914 433,302 431,920 433,974 437,321 436,011 440,108 439,753 3 Demand deposits adjusted2............................................ 97,582 97,085 94,476 93,385 94,480 97,121 98,357 97,373 95,804 4 Time deposits in accounts of $100,000 or more.......... 158,915 161,485 164,026 165,734 166,792 168,079 166,411 164,915 169,072 5 Nejgotiable CDs............................................................ 114,194 116,126 118,038 119,009 120,051 120,636 118,938 117,544 121,226 6 Other time deposits...................................................... 44,722 45,358 45,988 46,725 46,741 47,443 47,473 47,371 47,846 7 Loans sold outright to affiliates3.................................... 2,748 2,705 2,754 2,778 2,773 2,880 2,902 2,837 2,799 8 Commercial and industrial.......................................... 1,880 1,869 1,917 1,946 1,942 2,027 2,071 1,995 1,960 9 Other.............................................................................. 868 836 838 831 831 853 831 843 838 Banks with Assets of $1 Billion or More 10 Total loans (gross} and securities adjusted1................ 511,975 517,461 513,937 512,372 514,688 522,483 521,644 525,003 521,795 11 Total loans (gross) adjusted1.......................................... 404,379 408,636 407,121 405,696 407,822 411,157 409,902 413,937 413,528 12 Demand deposits adjusted2............................................ 90,650 89,726 87,377 86,046 87,534 89,985 91,107 90,364 88,919 13 Time deposits in accounts of $100,000 or more.......... 150,589 153,049 155,464 157,014 157,988 159,193 157,529 155,998 160,042 14 Negotiable CDs............................................................ 108,490 110,339 112,167 113,024 113,990 114,537 112,878 111,448 115,067 15 Other time deposits...................................................... 42,099 42,709 43,297 43,990 43,997 44,656 44,651 44,550 44,975 16 Loans sold outright to affiliates3.................................... 2,692 2,654 2,697 2,726 2,718 2,824 2,841 2,775 2,732 17 Commercial and industrial.......................................... 1,842 1,828 1,868 1,904 1,896 1,980 2,018 1,943 1,906 18 Other.............................................................................. 850 826 829 822 822 844 822 832 826 Banks in New York City 19 Total loans (gross} and securities adjusted1,4.............. 124,718 126,798 126,104 125,236 126,269 129,584 127,295 129,778 127,580 20 Total loans (gross) adjusted1.......................................... 101,953 103,631 102,816 101,959 103,032 105,771 103,413 106,111 104,252 21 Demand deposits adjusted2............................................ 22,877 23,258 21,184 21,892 24,457 24,474 23,227 24,655 23,535 22 Time deposits in accounts of $100,000 or more.......... 37,775 38,383 38,667 38,302 37,728 38,572 38,226 37,694 39,021 23 Nejgotiable CDs............................................................ 28,308 28,666 28,908 28,507 28,020 28,363 27,991 27,553 28,831 24 Other time deposits...................................................... 9,467 9,717 9,759 9,795 9,708 10,209 10,235 10,141 10,191 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 □ July 1981 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during Industry classification 1981 1981 1981 Feb. 25 Mar. 25 Apr. 29 May 27 June 24 p Ql Q2 p Apr. May Junep 1 Durable goods manufacturing............... 24,650 24,654 24,570 24,623 25,274 -217 620 -84 52 651 2 Nondurable goods manufacturing........ 19,051 19,401 19,845 20,266 20,618 -1,229 1,217 444 421 352 3 Food, liquor, and tobacco................. 4,544 4,580 4,409 4,577 4,404 -834 -176 -171 168 -173 4 Textiles, apparel, and leather........... 4,365 4,351 4,469 4,603 4,920 200 569 118 134 317 5 Petroleum refining............................ 3,005 2,982 3,298 3,457 3,412 -724 430 316 159 -45 6 Chemicals and rubber....................... 3,690 3,838 4,036 3,957 4,055 -100 217 198 -79 98 7 Other nondurable goods................... 3,446 3,650 3,633 3,672 3,826 230 176 -18 40 154 8 Mining (including crude petroleum and natural gas).............................. 15,974 15,750 16,752 17,182 18,194 -695 2,444 1,002 430 1,012 9 Trade...................................................... 25,316 25,617 26,778 26,306 26,107 -729 490 1,160 -472 -199 10 Commodity dealers............................ 1,874 1,950 2,337 1,865 1,499 -613 -451 387 -472 -366 11 Other wholesale................................ 11,735 11,875 12,244 12,023 12,087 -467 212 369 -221 65 12 Retail.................................................. 11,707 11,792 12,196 12,418 12,520 352 728 404 222 102 13 Transportation, communication, and other public utilities............... 20,428 19,973 20,338 20,403 20,824 -1,518 851 365 65 421 14 Transportation.................................... 8,235 8,107 8,156 8,343 8,196 -377 89 49 187 -147 15 Communication.................................. 3,110 3,160 3,275 3,462 3,542 -174 381 115 186 79 16 Other public utilities.......................... 9,082 8,705 8,906 8,597 9,086 -967 381 201 -308 489 17 Construction........................................... 6,126 6,225 6,446 6,988 6,984 218 758 221 542 -4 18 Services.................................................. 23,719 23,611 24,074 24,422 24,546 555 934 463 347 124 19 All other2............................................... 15,046 15,181 15,416 15,020 15,192 -878 11 234 -396 173 20 Total domestic loans.............................. 150,310 150,413 154,220 155,210 157,739 -4,492 7,326 3,807 990 2,529 21 Memo: Term loans (original maturity more than 1 year) included in do­ mestic loans .................................... 80,147 79,298 80,333 82,441 83,481 -2,492 4,183 1,036 2,108 1,040 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. The 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 Si 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 tlomestic 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 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.3 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 All. 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. Nov. Dec. Jan. Feb. Mar. Apr. May Commercial paper (seasonally adjusted) 1 AH issuers....................... 65,051 83,438 112,809 125,148 124,606 125,148 128,656 130,306 132,702 134,229 141,466 Financial companies2 Dealer-placed paper3 2 Total.......................... 8,796 12,181 17,377 19.631 19,591 19,631 19,886 20,859 22,643 24,206 25,061 3 Bank-related............. 2,132 3,521 2,874 3,561 3,436 3,561 3,670 3,742 4,163 4,437 4,800 Directly placed paper4 4 Total.......................... 40,574 51,647 64,748 67,888 67,340 67,888 68,956 68,936 69,461 69,537 71,842 5 Bank-related............. 7,102 12,314 17,598 22,382 21,939 22,382 22,570 22,331 21,604 22,858 23,880 6 Nonfinancial companies5 15,681 19,610 30,684 37,629 37,675 37,629 39,814 40,511 40,598 40,486 44,563 Bankers dollar acceptances (not seasonally adjusted) 7 Total.................................... 25,450 33,700 45,321 54,744 55,226 54,744 54,465 58,084 60,089 62,320 60,551 Holder 8 Accepting banks................. 10,434 8,579 9,865 10,564 10,236 10,564 9,371 9,911 10,117 10,781 10,138 9 Own bills........................ 8,915 7,653 8,327 8,963 8,837 8,963 7,951 8,770 8,735 9,626 9,049 10 Bills bought..................... 1,519 927 1,538 1,601 1,399 1,601 1,420 1,141 1,382 1,155 1,088 Federal Reserve Banks 11 Own account................... 954 1 704 776 523 776 0 0 298 0 0 12 Foreign correspondents .. 362 664 1,382 1,791 1,852 1,791 1,771 1,399 1,372 1,383 1,255 13 Others.................................. 13,700 24,456 33,370 41,614 42,616 41,614 43,323 46,779 48,303 50,156 49,158 Basis 14 Imports into United States . 6,378 8,574 10,270 11,776 11,774 11,776 11,903 12,976 13,292 13,634 12,775 15 Exports from United States 5,863 7,586 9,640 12,712 13,670 12,712 12,816 12,979 13,451 13,368 13,057 16 All other.............................. 13,209 17,540 25,411 30,257 29,782 30,257 29,746 32,129 33,347 35,319 34,768 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, and 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 □ July 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. 17................. 17.50 1980—Apr......................... 19.77 1981—Jan........................... 20.16 16................. 21.00 Apr. 2 ................. 17.00 May........................ 16.57 19.43 19................. 21.50 24................. 17.50 June ....................... 12.63 Mar......................... 18.05 30................... 18.00 JAu lJy........................ 11.48 Apr.......................... 17.15 1981—Jan. 2................... 20.50 May 4................... 19.00 Aug......................... 11.12 May........................ 19.61 9................... 20.00 11................... 19.50 Sept......................... 12.23 20.03 Feb. 3................... 19.50 19................... 20.00 Oct.......................... 13.79 23................... 19.00 22................... 20.50 Nov......................... 16.06 Mar. 10................. 18.00 June 3 ................. 20.00 Dec.......................... 20.35 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 4-9, 1981 Size of loan (in thousands of dollars) Item s A iz l e l s 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)........................ 16,840,794 853,190 481,971 767,519 2,118,788 1,041,775 11,577,551 2 Number of loans................................................................. 164,452 121,015 14,694 12,003 12,686 1,706 2,346 3 Weighted-average maturity (months)............................ 2.0 3.1 3.8 3.5 3.2 3.3 1.4 4 Weighted-average interest rate (percent per annum) . 19.99 19.45 19.87 19.10 19.93 19.58 20.14 5 Interquartile range1....................................................... 19.00-20.85 17.85-21.15 18.83-21.74 17.00-21.00 18.95-21.49 18.39-20.75 19.36-20.85 Percentage of amount of loans 6 With floating rate............................................................... 49.0 30.1 41.2 43.2 64.7 60.7 47.2 7 Made under commitment................................................. 52.8 24.6 33.1 48.1 49.1 56.7 56.4 8 With no stated maturity................................................... 21.6 13.4 12.6 21.4 20.7 29.5 22.0 Long-Term Commercial and Industrial Loans 9 Amount of loans (thousands of dollars)........................ 3,633,958 280,677 450,944 175,691 2,726,645 10 Number of loans................................................................. 21,441 17,936 2,725 277 503 11 Weighted-average maturity (months)............................ 50.6 35.4 53.1 43.8 52.2 12 Weighted-average interest rate (percent per annum) . 19.25 19.22 19.34 19.48 19.23 13 Interquartile range1....................................................... 19.00-20.00 17.87-21.34 18.68-20.16 19.00-20.74 19.00-19.76 Percentage of amount of loans 14 With floating rate............................................................... 78.6 49.5 68.4 87.1 82.7 15 Made under commitment................................................. 77.2 25.7 34.6 78.0 89.5 Construction and Land Development Loans 16 Amount of loans (thousands of dollars)........................ 874,542 74,010 81,222 169,763 223,133 326,415 17 Number of loans................................................................. 13,956 7,690 2,363 2,333 1,332 237 18 Weighted-average maturity (months)............................ 13.2 3.3 4.1 17.7 12.0 16.1 19 Weighted-average interest rate (percent per annum) . 19.09 19.83 19.06 16.10 20.74 19.35 20 Interquartile range1....................................................... 18.00-21.94 18.00-21.91 15.00-21.74 8.25-18.40 20.40-22.54 19.00-21.55 Percentage of amount of loans 21 With floating rate............................................................... 66.3 58.5 42.3 19.4 83.2 87.0 22 Secured by real estate....................................................... 93.1 93.3 85.5 97.9 92.4 93.0 23 Made under commitment................................................. 64.8 63.5 62.3 19.8 80.9 78.1 24 With no stated maturity................................................... 10.5 20.6 5.2 4.7 4.0 17.0 Type of construction 25 1-to 4-family....................................................................... 32.3 64.1 85.5 12.5 24.0 27.7 26 Multifamily......................................................................... 13.1 2.9 3.3 3.0 10.1 25.2 27 Nonresidential..................................................................... 54.7 33.0 11.2 84.5 65.9 47.2 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)........................ 1,419,090 188,183 236,302 220,646 180,935 281,187 311,838 29 Number of loans................................................................. 77,593 50,065 15,850 6,450 2,740 1,957 531 30 Weighted-average maturity (months)............................ 6.8 6.8 6.4 6.6 6.3 7.7 6.8 31 Weighted-average interest rate (percent per annum) . 17.88 17.50 17.59 17.67 17.78 17.97 18.46 32 Interquartile range1....................................................... 16.53-19.10 16.64-18.68 16.64-18.81 16.64-18.50 16.64-18.50 16.53-18.77 16.10-20.75 By purpose of loan 33 Feeder livestock................................................................. 18.44 17.98 18.43 17.91 18.07 18.49 18.93 34 Other livestock................................................................... 17.98 17.28 18.42 17.39 18.75 17.64 n(§ 35 Other current operating expenses.................................. 17.73 17.46 17.36 17.65 17.88 18.27 36 Farm machinery and equipment.................................... 17.61 17.53 17.62 17.63 17.01 nS 19.9] 37 Other................................................................................... 17.68 17.30 17.25 17.58 17.22 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(lll) 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 Mar. Apr. May June June 5 June 12 June 19 June 26 July 3 Money Market Rates 1 Federal funds1,2............................................ 7.93 11.19 13.36 14.70 15.72 18.52 19.10 18.40 19.33 19.10 19.20 18.84 Commercial paper3,4 2 1-month...................................................... 7.76 10.86 12.76 14.15 14.79 17.91 17.34 17.81 17.41 17.32 17.03 17.29 3 3-month...................................................... 7.94 10.97 12.66 13.94 14.56 17.56 16.32 16.90 16.24 15.99 16.24 16.35 4 6-month...................................................... 7.99 10.91 12.29 13.59 14.17 16.66 15.22 15.72 15.12 14.90 15.12 15.46 Finance paper, directly placed3,4 5 1-month...................................................... 7.73 10.78 12.44 13.78 14.24 17.47 16.66 17.27 16.90 16.21 16.36 16.78 6 3-month...................................................... 7.80 10.47 11.49 13.08 13.28 15.56 14.58 15.13 14.87 14.25 14.21 14.21 7 6-month...................................................... 7.78 10.25 11.28 12.89 12.94 14.97 14.13 14.65 14.37 13.85 13.79 13.79 Bankers acceptances4,5 8 3-month...................................................... 8.11 11.04 12.78 13.88 14.65 17.56 16.27 16.71 16.10 16.09 16.21 16.53 9 6-month...................................................... n.a. n.a. n.a. 13.49 14.19 16.26 15.02 15.33 14.78 14.89 15.04 15.46 Certificates of deposit, secondary market6 10 1-month...................................................... 7.88 11.03 12.91 14.33 14.92 18.16 17.55 17.78 17.61 14.78 17.49 17.43 11 3-month...................................................... 8.22 11.22 13.07 14.43 15.08 18.27 16.90 17.37 16.72 16.60 16.97 17.10 12 6-month...................................................... 8.61 11.44 12.99 14.48 15.12 17.66 16.09 16.49 15.88 15.79 16.21 16.42 13 Eurodollar deposits, 3-month2.................. 8.78 11.96 14.00 15.36 15.95 19.06 17.86 17.98 18.04 17.35 18.00 18.01 U.S. Treasury bills4 Secondary market7 14 3-montn.................................................. 7.19 10.07 11.43 13.36 13.69 16.30 14.73 15.69 14.79 14.31 14.39 14.34 15 6-month.................................................. 7.58 10.06 11.37 12.81 13.45 15.29 14.09 14.62 13.99 13.86 13.98 14.04 16 1-year...................................................... 7.74 9.75 10.89 12.28 12.79 14.29 13.22 13.53 13.15 13.03 13.20 13.30 Auction average8 17 3-month.................................................. 7.221 10.041 11.506 13.478 13.635 16.295 14.557 15.456 14.982 13.451 14.337 13.909 18 6-month.................................................. 7.572 10.017 11.374 12.983 13.434 15.334 13.947 14.491 14.000 13.356 13.939 13.621 19 1-year...................................................... 7.678 9.817 10.748 11.481 12.991 14.623 13.146 13.146 Capital Market Rates U.S. Treasury notes and bonds9 Constant maturities10 20 1-year...................................................... 8.34 10.67 12.05 13.71 14.32 16.20 14.86 15.22 14.73 14.67 14.86 14.94 21 2-year...................................................... 8.34 10.12 11.77 13.57 14.15 15.46 14.51 14.65 14.37 14.36 14.61 14.74 22 2-V2-year11.............................................. 14.50 14.35 14.65 23 3-year...................................................... 8.29 9.71 11.55 13.51 14.09 15.08 14.29 14.42 14.16 14.15 14.39 14.58 24 5-year...................................................... 8.32 9.52 11.48 13.41 13.99 14.63 13.95 14.06 13.83 13.81 14.05 14.28 25 7-year...................................................... 8.36 9.48 11.43 13.24 13.85 14.30 13.67 13.72 13.56 13.49 13.76 14.10 26 10-year.................................................... 8.41 9.44 11.46 13.12 13.68 14.10 13.47 13.53 13.34 13.29 13.61 13.88 27 20-year.................................................... 8.48 9.33 11.39 12.94 13.46 13.82 13.20 13.28 13.06 13.01 13.32 13.61 28 30-year.................................................... 8.49 9.29 11.30 12.69 13.20 13.60 12.96 13.08 12.85 12.76 13.05 13.31 Composite12 29 Over 10 years (long-term).................. 7.89 8.74 10.81 12.15 12.62 12.96 12.39 12.48 12.30 12.18 12.48 12.76 State and local notes and bonds Moody’s series13 30 Aaa.......................................................... 5.52 5.92 7.85 9.50 9.78 9.90 9.86 10.00 9.75 9.75 9.95 9.80 31 Baa.......................................................... 6.27 6.73 9.01 10.40 10.85 11.28 11.21 11.20 11.20 11.20 11.25 11.25 32 Bond Buyer series14................................ 6.03 6.52 8.59 10.16 10.62 10.78 10.67 10.59 10.63 10.73 10.74 10.85 Corporate bonds Seasoned issues15 33 All industries........................................ 9.07 10.12 12.75 14.26 14.66 15.15 14.76 14.86 14.78 14.65 14.72 14.91 34 Aaa.......................................................... 8.73 9.63 11.94 13.33 13.88 14.32 13.75 13.84 13.73 13.61 13.77 14.04 35 Aa............................................................ 8.92 9.94 12.50 13.90 14.39 14.88 14.41 14.65 14.47 14.21 14.28 14.51 36 A.............................................................. 9.12 10.20 12.89 14.47 14.82 15.43 15.08 15.18 15.14 15.02 15.00 15.11 37 Baa.......................................................... 9.45 10.69 13.67 15.34 15.56 15.95 15.80 15.78 15.76 15.75 15.82 15.97 Aaa utility bonds16 38 New issue.............................................. 8.96 10.03 12.74 14.71 15.68 15.81 14.76 14.93 15.01 14.35 39 Recently offered issues........................ 8.97 10.02 12.70 14.41 15.48 15.48 14.81 15.03 14.74 14.59 14.79 14.94 Memo: Dividend/price ratio17 40 Preferred stocks........................................ 8.25 9.07 10.57 11.81 11.80 12.03 12.23 12.29 12.36 12.11 12.17 12.23 41 Common stocks........................................ 5.28 5.46 5.25 4.88 4.84 4.98 5.03 5.08 5.03 4.98 5.02 5.03 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 l.lo.) 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 150— 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 quotecl bv 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 □ July 1981 1.36 STOCK MARKET Selected Statistics 1980 1981 Indicator 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 76.69 76.24 73.52 76.46 77.60 76.28 76.80 2 Industrial.................................................................... 58.30 61.82 78.64 90.37 89.23 85.74 89.39 90.57 88.78 88.63 3 Transportation............................................................ 43.25 45.20 60.52 75.74 74.43 72.76 77.09 80.63 76.78 76.71 4 Utility.......................................................................... 39.23 36.46 37.35 37.84 38.53 37.59 37.78 38.34 38.27 39.23 5 Finance ........................................................................ 56.74 58.65 64.28 67.46 70.04 68.48 72.82 74.59 74.65 79.79 6 Standard & Poor’s Corporation (1941-43 = 10)1... 96.11 107.94 118.71 133.48 132.97 128.40 133.19 134.43 131.73 132.28 7 American Stock Exchange (Aug. 31, 1973 = 100) . 144.56 186.56 300.94 347.56 344.21 338.28 347.07 363.09 365.52 369.64 Volume of trading (thousands of shares) 8 New York Stock Exchange.......................................... 28,591 32,233 44,867 46,620 45,500 42,963 53,387 54,124 45,272 50,517 9 American Stock Exchange.......................................... 3,622 4,182 6,377 6,410 6,024 4,816 5,682 6,339 5,650 6,096 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2. 11,035 11,619 14,721 14,721 14,242 14,171 11 Margin stock3.................................................... 10,830 11,450 14,500 14,500 14,020 13,950 14,020 14,630 14,700 12 Convertible bonds............................................ 205 167 219 219 221 220 222 238 251 13 Subscription issues.......................................... 1 2 2 2 1 1 1 1 1 Free credit balances at brokers4 14 Margin-account................................................ 835 1,105 2,105 2,105 2,065 2,225 2,340 2,270 2,340 15 Cash-account.................................................... 2,510 4,060 6,070 6,070 5,655 5,700 6,530 6,530 6,150 Margin-account debt at brokers (percentage distribution, end of period) 16 Total...................................... 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 14.0 20.0 20.0 16.0 20.8 21.3 18 40-49...................................... 28.0 29.0 30.0 30.0 30.0 31.0 28.0 26.8 25.3 19 50-59...................................... 18.0 27.0 25.0 25.0 22.0 21.0 26.0 23.7 25.3 2 21 0 6 7 0 0 - - 6 7 9 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 0 . . 0 0 1 8 4 . . 0 0 1 9 4 . . 0 0 1 9 4 . . 0 0 1 8 3 . . 0 0 1 8 3 . . 0 0 1 9 4 . . 0 0 1 8 2 . . 1 6 1 8 2 . . 0 7 22 80 or more............................ 5.0 7.0 8.0 8.0 7.0 7.0 8.0 8.0 7.4 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)*.. 13,092 16,150 21,690 21,690 21,686 21,861 22,548 22,748 23,930 Distribution by equity status (percent) 24 Net credit status.................................. 41.3 44.2 47.8 47.8 47.0 48.6 50.9 49.3 50.2 Debt status, equity of 25 60 percent or more.......................... 45.1 47.0 44.4 44.4 43.9 43.1 41.5 41.7 41.0 26 Less than 60 percent........................ 13.6 8.8 7.7 7.7 9.1 8.3 7.6 9.0 8.8 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 27 Margin stocks........ 70 65 55 65 50 28 Convertible bonds. 50 50 50 50 50 29 Short sales............ 70 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 based on 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 equity 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May/7 Savings and loan associations 1 Assets.......................................................... 523,542 578,962 603,295 609,320 617,773 623,939 629,829 631,228 634,405 636,859 639,827 644,362 2 Mortgages................................................... 432,808 475,688 487,036 491,895 496,495 499,973 502,812 504,068 505,309 507,152 509,525 511,986 3 Cash and investment securities1............... 44,884 46,341 53,336 53,435 56,146 57,302 57,572 57,460 58,401 58,461 56,886 58,871 4 Other.......................................................... 45,850 56,933 62,923 63,990 65,132 66,664 69,445 69,700 70,695 71,246 72,416 73,505 5 Liabilities and net worth............................ 523,542 578,962 603,295 609,320 617,773 623,939 629,829 631,228 634,405 636,859 639,827 644,362 6 Savings capital............................................. 430,953 470,004 497,403 496,991 500,861 503,365 510,959 512,946 515,250 518,990 516,071 517,541 7 Borrowed money....................................... 42,907 55,232 55,396 58,418 60,727 62,067 64,491 62,938 62,270 64,197 67,704 69,832 8 FHLBB................................................... 31,990 40,441 41,005 42,547 44,325 45,505 47,045 46,629 46,360 47,310 49,607 50,961 9 Other...................................................... 10,917 14,791 15,871 16,402 16,562 17,446 16,309 15,910 16,887 18,097 18,097 18,871 10 Loans in process......................................... 10,721 9,582 8,243 8,654 8,853 8,783 8,120 7,833 7,756 7,840 7,840 7,997 11 Other.......................................................... 9,904 11,506 16,190 12,776 14,502 16,433 12,227 14,104 16,071 13,271 14,946 17,129 12 Net worth2................................................... 29,057 32,638 32,787 32,892 33,029 33,221 33,319 33,120 32,981 32,645 32,266 31,863 13 Memo: Mortgage loan com­ mitments outstanding3........................ 18,911 16,007 20,278 20,311 19,077 17,979 16,102 15,972 16,279 17,374 18,552 18,553 Mutual savings banks4 14 Assets.......................................................... 158,174 163,405 168,752 169,409 170,432 171,126 171,564' 171,891 172,349 173,232 172,837 Loans 15 Mortgage................................................. 95,157 98,908 99,289 99,306 99,523 99,677 99,865' 99,816 99,739 99,719 99,798 16 Other...................................................... 7,195 9,253 11,122 11,415 11,382 11,477 11,733' 12,199 12,598 13,248 12,756 Securities 17 U.S. government5.................................. 4,959 7,658 8,079 8,434 8,622 8,715 8,949' 9,000 9,032 9,203 9,262 18 State and local government................... 3,333 2,930 2,709 2,728 2,754 2,736 2,390' 2,378 2,376 2,359 2,314 19 Corporate and other6.............................. 39,732 37,086 39,327 39,609 39,720 39,888 39,282' 39,256 39,223 39,236 39,247 20 Cash............................................................ 3,665 3,156 3,456 3,153 3,592 3,717 4,334' 4,133 4,205 4,238 4,172 n.a. 21 Other assets................................................. 4,131 4,412 4,770 4,764 4,839 4,916 5,011' 5,107 5,177 5,231 5,288 22 Liabilities.................................................... 158,174 163,405 168,752 169,409 170,432 171,126 171,564' 171,891 172,349 173,232 172,837 23 Deposits...................................................... 142,701 146,006 150,187 151,765 151,998 152,133 153,501' 153,143 153,332 154,805 153,692 24 Regular7................................................... 141,170 144,070 148,018 149,395 149,797 150,109 151,416' 151,051 151,346 152,630 151,429 25 Ordinary savings.................................. 71,816 61,123 58,191 58,658 57,651 56,256 53,971' 52,737 52,035 53,049 52,331 26 Time and other.................................... 69,354 82,947 89,827 90,736 92,146 93,853 97,445' 98,314 99,311 99,581 99,098 27 Other...................................................... 1,531 1,936 2,169 2,370 2,200 2,042 2,086' 2,092 1,986 2,174 2,264 28 Other liabilities........................................... 4,565 5,873 7,211 6,299 7,117 7,644 6,695' 7,426 7,753 7,265 8,103 29 General reserve accounts.......................... 10,907 11,525 11,353 11,344 11,317 11,349 11,368' 12,957 13,412 11,163 11,042 30 Memo: Mortgage loan com­ mitments outstanding8........................ 4,400 3,182 1,849 1,883 1,817 1,682 1,476' 1,316 1,331 1,379 1,614 Life insurance companies 31 Assets.......................................................... 389,924 432,282 459,362 464,483 468,057 473,529 476,190 463,150 482,264 487,067 489,431 Securities 32 Government........................................... 20,009 0,338 20,833 20,853 20,942 21,204 21,453 21,891 22,092 22,132 21,646 33 United States 9...................................... 4,822 4,888 5,386 5,361 5,390 5,568 5,753 6,016 6,066 6,024 5,369 34 State and local.................................... 6,402 6,428 6,421 6,474 6,484 6,568 6,682 6,831 6,900 6,948 7,103 35 Foreign10............................................. 8,785 9,022 9,026 9,018 9,068 9,068 9,018 9,044 9,126 9,160 9,174 36 Business................................................... 198,105 222,332 230,477 233,652 236,115 239,150 238,048 240,630 241,600 243,304 245,498 n.a. 37 Bonds................................................... 162,587 178,371 187,839 189,586 191,229 191,753 191,090 194,889 195,521 196,439 198,385 38 Stocks................................................... 35,518 39,757 42,638 44,066 44,886 47,397 46,958 45,741 46,079 46,865 47,113 39 Mortgages................................................... 106,167 118,421 127,357 128,089 128,977 129,878 131,145 131,710 132,445 133,150 133,659 40 Real estate................................................... 11,764 13,007 14,184 14,460 14,702 15,183 15,247 15,235 16,026 16,370 16,575 41 Policy loans................................................. 30,146 34,825 39,925 40,258 40,548 40,878 41,411 42,032 42,604 43,264 43,795 42 Other assets................................................. 23,733 27,563 26,586 27,171 26,765 27,236 28,836 26,983 27,497 28,847 27,934 Credit unions 43 Total assets/liabilities and capital................................................... 62,348 65,854 69,553 70,515 70,702 71,335 71,709 70,754 71,446 73,214 72,783 73,565 44 Federal........................................................ 34,760 35,934 38,168 39,219 39,155 39,428 39,801 39,142 39,636 40,624 40,207 40,648 45 State............................................................ 27,588 29,920 31,385 31,296 31,547 31,907 31,908 31,612 31,810 32,590 32,576 32,917 46 Loans outstanding...................................... 50,269 53,125 47,884 47,211 47,221 47,299 47,774 47,309 47,451 47,815 47,994 48,499 47 Federal..................................................... 27,687 28,698 25,401 25,381 25,288 25,273 25,627 25,272 25,376 25,618 25,707 26,038 48 State........................................................ 22,582 24,426 22,483 21,830 21,933 22,026 22,147 22,037 22,075 22,197 22,287 22,461 49 Savings........................................................ 53,517 56,232 61,403 63,728 63,957 64,304 64,399 63,874 64,357 65,744 65,495 65,988 50 Federal (shares)...................................... 29,802 35,530 33,964 35,961 36,030 36,183 36,348 35,915 36,236 36,898 36,684 36,967 51 State (shares and deposits)..................... 23,715 25,702 27,439 27,767 27,927 28,121 28,051 27,959 28,121 28,846 28,811 29,021 For notes see bottom of page A28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics □ July 1981 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1978 1979 1980 1979 1980 1981 H2 HI H2 Mar. Apr. May U.S. budget 1 Receipts1.......................................................... 401,997 465,940 520,050 233,952 270,864 262,152 44,623 74,464 38,514 2 Outlays1-2........................................................ 450,804 493,635 579,613 263,004 289,905 310,972 54,217 57,198 54,608 3 Surplus, or deficit( - ) .................................. -48,807 -27,694 -59,563 -29,052 -19,041 -48,821 -9,593 17,266 -16,094 4 Trust funds.................................................. 12,693 18,335 8,791 9,679 4,383 -2,551 -601 1,896 3,639 5 Federal funds3............................................ -61,532 -46,069 -67,752 -38,773 -23,418 -46,306 -8,992 15,370 -19,733 Off-budget entities (surplus, or deficit 6 Federal Financing Bank outlays.................. -10,661 -13,261 -14,549 -5,909 -7,735 -7,552 -3,420 -2,088 -1,943 7 Other4.............................................................. 302 793 303 765 -522 376 -35 -73 -342 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 -13,048 15,251 -18,379 Source or financing 9 Borrowing from the public...................... 59,106 33,641 70,515 31,320 24,435 54,764 15,138 -3,725 539 10 Cash and monetary assets (decrease, or increase (- ))*.................................... -3,023 -408 -355 3,059 -3,482 -6,730 -5,852 -5,122 22,809 11 Other6.......................................................... 3,083 6,929 3,648 -182 6,345 7,964 3,762 6,404 -4,969 Memo: 12 Treasury operating balance (level, end of period)................................................ 22,444 24,176 20,990 15,924 14,092 12,305 10,717 21,150 5,702 13 Federal Reserve Banks............................ 16,647 6,489 4,102 4,075 3,199 3,062 3,032 4,460 2,288 14 Tax and loan accounts.............................. 5,797 17,687 16,888 11,849 10,893 9,243 7,685 16,690 3,414 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 Mar. Apr. May Receipts 1 All sources*................................................... 401,997 465,955 520,050 233,952 270,864 262,152 44,623 74,464 38,514 2 Individual income taxes, net........................ 180,988 217,841 244,069 115,488 119,988 131,962 13,693 38,659 10,496 3 Withheld...................................................... 165,215 195,295 223,763 105,764 110,394 120,924 22,337 20,532 20,260 4 Presidential Election Campaign Fund... 39 36 39 3 34 4 11 7 8 5 Nonwithheld................................................ 47,804 56,215 63,746 12,355 49,707 14,592 3,754 30,674 2,451 6 Refunds!...................................................... 32,070 33,705 43,479 2,634 40,147 3,559 12,410 12,644 12,222 Corporation income taxes 7 Gross receipts............................................ 65,380 71,448 72,380 29,169 43,434 28,579 10,203 10,203 1,894 8 Refunds........................................................ 5,428 5,771 7,780 3,306 4,064 4,518 1,617 1,617 883 9 Social insurance taxes and contributions, net............................................................ 123,410 141,591 160,747 71,031 86,597 77,262 15,784 20,201 20,694 10 Payroll employment taxes and contributions2...................................... 99,626 115,041 133,042 60,562 69,077 66,831 14,579 13,843 15,026 11 Self-employment taxes and contributions3...................................... 4,267 5,034 5,723 417 5,535 188 419 3,945 419 12 Unemployment insurance........................ 13,850 15,387 15,336 6,899 8,690 6,742 174 1,802 4,660 13 Other net receipts4.................................... 5,668 6,130 6,646 3,149 3,294 3,502 613 612 588 14 Excise taxes.................................................... 18,376 18,745 24,329 9,675 11,383 15,332 4,210 3,754 3,953 15 Customs deposits............................................ 6,573 7,439 7,174 3,741 3,443 3,717 661 655 625 16 Estate and gift taxes...................................... 5,285 5,411 6,389 2,900 3,091 3,499 572 485 647 17 Miscellaneous receipts5................................ 7,413 9,252 12,741 5,254 6,993 6,318 1,117 1,338 1,087 Outlays 18 All types*,*................................................... 450,804 493,635 579,613 263,004 289,905 310,972 54,217 57,198 54,608 19 National defense............................................ 105,186 117,681 135,856 62,002 69,132 72,457 13,560 13,274 13,810 20 International affairs...................................... 5,922 6,091 10,733 4,617 4,602 5,430 808 1,681 737 21 General science, space, and technology ... 4,742 5,041 5,722 3,299 3,150 3,205 692 505 536 22 Energy.............................................................. 5,861 6,856 6,313 3,281 3,126 3,997 475 924 1,106 23 Natural resources and environment............ 10,925 12,091 13,812 7,350 6,668 7,722 1,093 1,093 1,017 24 Agriculture...................................................... 7,731 6,238 4,762 1,709 3,193 1,892 -54 -304 -151 25 Commerce and housing credit.................... 3,324 2,565 7,782 3,002 3,878 3,163 377 321 -269 26 Transportation................................................ 15,445 17,459 21,120 10,298 9,582 11,547 1,605 1,685 1,581 27 Community and regional development----- 11,039 9,482 10,068 4,855 5,302 5,370 782 844 687 28 Education, training, employment, social services .................................................... 26,463 29,685 30,767 14,579 16,686 15,221 2,666 2,564 2,677 29 Health.............................................................. 43,676 49,614 58,165 26,492 29,299 31,263 5,757 6,259 5,645 30 Income security 1,6.......................................... 146,180 160,159 193,100 85,967 94,605 107,912 19,242 18,768 18,576 31 Veterans benefits and services.................... 18,974 19,928 21,183 10,113 9,758 11,731 1,028 2,168 1,670 32 Administration of justice.............................. 3,802 4,153 4,570 2,174 2,291 2,299 377 465 343 33 General government...................................... 3,737 4,153 4,505 2,103 2,422 2,432 749 310 393 34 General-purpose fiscal assistance................ 9,601 8,372 8,584 4,286 3,940 4,191 98 1,166 253 35 Interest7.......................................................... 43,966 52,556 64,504 29,045 32,658 35,909 5,835 6,423 7,024 36 Undistributed offsetting receipts7,8............ -15,772 -18,489 -21,933 -12,164 -10,387 -14,769 -875 -949 -1,029 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, were classified as outlays Labor. retroactive 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. 6. 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 □ July 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 debti....................................................................... 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 Feb. Mar. Apr. May June 1 Total gross public debt...................................................... 718.9 789.2 845.1 930.2 950.5 964.5 964.0 968.5 971.2 By type 2 Interest-bearing debt........................................................ 715.2 782.4 844.0 928.9 946.5 963.2 962.8 964.8 969.9 3 Marketable......................................................................... 459.9 487.5 530.7 623.2 642.9 661.1 657.9 656.2 660.8 4 Bills................................................................................. 161.1 161.7 172.6 216.1 229.0 235.3 225.8 224.5 218.8 5 Notes............................................................................... 251.8 265.8 283.4 321.6 324.5 336.5 341.1 338.4 348.8 6 Bonds............................................................................. 47.0 60.0 74.7 85.4 89.4 89.3 91.0 93.3 93.2 7 Nonmarketable1................................................................ 255.3 294.8 313.2 305.7 303.5 302.1 304.9 308.6 309.2 8 Convertible bonds2........................................................ 2.2 2.2 2.2 9 State and local government series................................ 13.9 24.3 24.6 23.8 23.6 23.5 23.4 23.2 23.2 10 Foreign issues3................................................................ 22.2 29.6 28.8 24.0 24.0 24.2 24.4 24.8 23.5 11 Government................................................................ 21.0 28.0 23.6 17.6 17.5 17.7 18.0 18.4 17.1 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 70.7 70.3 69.8 69.5 69.2 14 Government account series4......................................... 139.8 157.5 177.5 185.1 185.0 183.8 187.0 190.8 193.0 15 Non-interest-bearing debt................................................. 3.7 6.8 1.2 1.3 4.0 1.3 1.2 3.7 1.3 By holder5 16 U.S. government agencies and trust funds...................... 154.8 170.0 187.1 192.5 192.0 190.9 193.9 17 Federal Reserve Banks.................................................... 102.8 109.6 117.5 121.3 118.4 119.0 119.7 18 Private investors................................................................ 461.3 508.6 540.5 616.4 639.6 654.6 650.4 19 Commercial banks............................................................ 101.4 93.1 91.5 104.7 107.4 108.5 104.8 20 Mutual savings banks........................................................ 5.9 5.0 4.7 5.8 5.8 6.0 6.2 21 Insurance companies........................................................ 15.1 14.9 14.8 15.2 15.0 14.8 14.8 22 Other companies................................................................ 22.7 21.2 24.9r 24.6 22.4 21.5 21.8 n.a. n.a. 23 State and local governments............................................. 55.2 64.4 67.4 74.7 76.0 77.8 79.1 Individuals 24 Savings bonds................................................................ 76.7 80.7 79.9 72.2 70.7 70.4 69.8 25 Other securities.............................................................. 28.6 30.3 36.2 56.7 65.5 68.2 68.3 26 Foreign and international6................................................ 109.6 137.8 123.8 134.3 136.7 142.7 142.8 27 Other miscellaneous investors7........................................ 46.1 58.2 97.4 127.9 140.0 144.7 142.8 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 l1^ 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 Mar. Apr. Mar. Apr. All maturities 1 to 5 years 1 All holders........................................................................................ 530,731 623,186 661,142 657,906 164,198 197,409 203,927 203,931 2 U.S. government agencies and trust funds........................................ 11,047 9,564 9,304 9,228 2,555 1,990 1,363 1,363 3 Federal Reserve Banks........................................................................ 117,458 121,328 119,039 119,687 8,469 35,835 35,323 34,981 4 Private investors.................................................................................... 402,226 492,294 532,800 528,992 133,173 159,585 167,241 167,588 5 Commercial banks............................................................................ 69,076 77,868 80,710 77,913 38,346 44,482 41,573 41,218 6 Mutual savings banks........................................................................ 3,204 3,917 4,098 4,204 1,668 1,925 1,950 2,008 7 Insurance companies........................................................................ 11,496 11,930 11,698 11,661 4,518 4,504 4,171 4,224 8 Nonfinancial corporations................................................................ 8,433 7,758 7,203 7,342 2,844 2,203 1,734 1,392 9 Savings and loan associations.......................................................... 3,209 4,225 4,163 4,330 1,763 2,289 2,524 2,654 10 State and local governments............................................................ 15,735 21,058 22,317 22,756 3,487 4,595 4,818 5,218 11 All others............................................................................................ 291,072 365,539 402,610 400,787 80,546 99,577 110,470 110,873 Total, within 1 year 5 to 10 years 12 All holders........................................................................................ 255,252 297,385 318,907 311,001 50,440 56,037 61,995 64,945 13 U.S. government agencies and trust funds........................................ 1,629 830 1,189 1,113 871 1,404 1,411 1,411 14 Federal Reserve Banks........................................................................ 63,219 56,858 54,525 55,373 12,977 13,458 13,797 13,918 15 Private investors.................................................................................... 190,403 239,697 263,193 254,515 36,592 41,175 46,786 49,616 16 Commercial banks............................................................................ 20,171 25,197 30,106 27,183 8,086 5,793 6,424 6,695 17 Mutual savings banks........................................................................ 836 1,246 1,317 1,340 459 455 511 521 18 Insurance companies........................................................................ 2,016 1,940 2,152 1,992 2,815 3,037 3,146 3,207 19 Nonfinancial corporations................................................................ 4,933 4,281 3,774 3,768 308 357 461 516 20 Savings and loan associations.......................................................... 1,301 1,646 1,465 1,489 69 216 111 127 21 State and local governments............................................................ 5,607 7,750 8,183 7,819 1,540 2,030 2,243 2,491 22 All others............................................................................................ 155,539 197,636 216,196 210,924 23,314 29,287 33,891 36,060 Bills, within 1 year 10 to 20 years 23 All holders........................................................................................ 172,644 216,104 235,315 225,849 27,588 36,854 38,238 38,202 24 U.S. government agencies and trust funds........................................ 0 1 1 1 4,520 3,686 3,685 3,685 25 Federal Reserve Banks........................................................................ 45,337 43,971 42,632 43,263 3,272 5,919 5,891 5,929 26 Private investors.................................................................................... 127,306 172,132 192,681 182,585 19,796 27,250 28,662 28,587 27 Commercial banks............................................................................ 5,938 9,856 12,464 9,504 993 1,071 1,166 1,190 28 Mutual savings banks........................................................................ 262 394 425 426 127 181 186 182 29 Insurance companies........................................................................ 473 672 812 730 1,305 1,718 1,519 1,528 30 Nonfinancial corporations................................................................ 2,793 2,363 1,879 1,900 218 431 417 839 31 Savings and loan associations.......................................................... 219 818 512 526 58 52 39 37 32 State and local governments............................................................ 3,100 5,413 5,701 5,150 1,762 3,597 3,923 4,014 33 All others............................................................................................ 114,522 152,616 170,888 164,349 15,332 20,200 21,413 20,798 Other, within 1 year Over 20 years 34 All holders........................................................................................ 82,608 81,281 83,592 85,153 33,254 35,500 38,076 39,827 35 U.S. government agencies and trust funds........................................ 1,629 829 1,188 1,112 1,472 1,656 1,656 1,656 36 Federal Reserve Banks........................................................................ 17,882 12,888 11,892 12,110 9,520 9,258 9,503 9,486 37 Private investors.................................................................................... 63,097 67,565 70,512 71,931 22,262 24,587 26,918 28,685 38 Commercial banks............................................................................ 14,233 15,341 17,641 17,680 1,470 1,325 1,441 1,627 39 Mutual savings banks........................................................................ 574 852 892 914 113 110 135 153 40 Insurance companies........................................................................ 1,543 1,268 1,340 1,262 842 730 710 709 41 Nonfinancial corporations................................................................ 2,140 1,918 1,895 1,868 130 476 816 828 42 Savings and loan associations.......................................................... 1,081 828 953 963 19 21 25 23 43 State and local governments............................................................ 2,508 2,337 2,481 2,669 3,339 3,086 3,150 3,213 44 All others............................................................................................ 41,017 45,020 45,308 46,574 16,340 18,838 20,640 22,132 Note. Direct public issues only. Based on Treasury Survey of Ownership from mutual savings banks, and 723 insurance companies, each about 80 percent; (2) Treasury Bulletin (U.S. Treasury Department). 411 nonfinancial corporations and 474 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 Apr. 30, 1981: (1) 5,342 commercial banks, 457 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics □ July 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 Mar. p Apr./7 May/> May 20 May 27 June 3 June 10 June 17 June 24 Immediate delivery1 1 U.S. government securities......... 10,285 13,183 23,848 21,360 21,554 20,848 21,449 24,992 23,287 21,664 24,215 Bv maturity 2 Bills.............................................. 6,173 7,915 14,114 13.134 12,359 11,679 12,745 15,045 13,680 13,314 14,011 3 Other within 1 year.................. 392 454 388 374 459 593 355 406 451 584 304 4 1-5 years...................................... 1,889 2,417 4.182 3,390 3,954 3,867 4,586 3,905 3,586 3,008 5,525 5 5-10 years.................................... 965 1,121 2.758 2,135 1,982 1,658 1,619 3,270 2,836 2,386 2,118 6 Over 10 years.............................. 867 1,276 n.a. 2.408 2,328 2,574 3,052 2.144 2,364 2,732 2,371 2,257 By type of customer 7 U.S. government securities dealers.................................. 1,135 1,448 1.390 1,070 1,108 1,006 1.216 1,181 1,491 1,311 1,454 8 U.S. government securities brokers................................ 3,838 5,170 11.681 10.565 10,226 10,075 9.771 11.796 11,104 10,635 11,715 9 All others2.................................. 5,312 6,564 10.776 9,725 10,221 9,767 10,462 12.014 10,692 9,718 11,047 10 Federal agency securities............. 1,894 2,723 3,311 2,864 2,806 3,368 2,837 4,269 3,996 3,724 3,938 11 Certificates of deposit.................. n.a. n.a. 3.717 3,518 2,992 2,823 3.079 4,004 3,686 4,168 4,829 12 Bankers acceptances...................... 1.751 1,627 1,363 1,104 1,547 1.651 1,887 1,986 1,528 13 Commercial paper.......................... 5.073 5,302 6,047 6,193 5,877 6,572 5,669 6,652 5,834 Futures and forward positions3,4 . n.a. n.a. n.a. n.a. 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, week ending Wednesday Item 1978 Mar./> Apr.P May/7 Apr. 29 May 6 May 13 May 20 May 27 June 3 Positions Net immediate1 1 U.S. government securities ... 2,656 3,223 17,059 11,570 4,646 7,329 4,651 4,161 4,128 4,689 6,317 2 Bills........................................ 2.452 3.813 13.608 8,471 1.820 4,361 1.944 1,176 1,745 1,635 3,215 3 Other within 1 year............ 260 -325 -279 142 226 232 182 485 198 112 88 4 1-5 years................................ -92 -455 817 399 499 332 428 441 221 994 329 5 5-10 years.............................. 40 160 650 530 157 405 246 46 31 -14 735 6 Over 10 years........................ -4 30 2.263 2,027 1,944 1,998 1,850 2,013 1,932 1,962 1,950 7 Federal agency securities....... 606 1,471 1,429 1,710 1,680 1,569 1,716 1,538 1,701 1,521 2,115 8 Certificates of deposit............ 2,775 2,794 2.728 2,117 1,965 1,924 2.310 1,871 1,724 1,746 2,419 9 Bankers acceptances................ n.a. n.a. 1.594 1,705 1,278 1,614 1.686 1,270 1,121 1,040 1,370 10 Commercial paper.................... n.a. n.a. 2.590 2,721 2,373 2,639 2,503 2,402 1,959 2,180 3,190 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 11 Overnight and continuing---- 8,392 9,466 10,667 10,393 10,693 10,926 10,123 11,256 12 Term agreements.................... 24,529 25,704 30,592 27,385 28,370 31,332 31,342 28,715 Repurchase agreements4............ n.a. n.a. n.a. 13 Overnight and continuing .... 32.456 32,515 28,075 29,842 29,223 27,343 28,393 28,393 14 Term agreements.............. 24,252 24,563 27,716 25,798 25,556 28,231 28,845 27,281 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 securities “matched book” repurchase agreements. involved are not available for trading 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 Nov. Dec. Jan. Feb. Mar. Apr. 1 Federal and federally sponsored agencies1........................ 103,848 112,472 137,063 188,743 193,229 195,056 194,926 198,828 200,434 2 Federal agencies.................................................................... 22,419 22,760 23,488 27,941 28,606 28,769 28,596 29,397 29,502 3 Defense Department2........................................................ 1,113 983 968 631 610 600 591 576 566 4 Export-Import Bank3,4.................................................... 8,574 8,671 8,711 10,696 11,250 11,239 11,201 11,881 11,868 5 Federal Housing Administration5.................................. 575 581 588 486 477 476 468 464 459 6 Government National Mortgage Association participation certificates6.......................................... 4,120 3,743 3,141 2,842 2,817 2,817 2,817 2,817 2,775 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 11,010 11,190 11,375 11,550 11,680 11,845 9 United States Railway Association7.............................. 104 336 356 506 492 492 199 209 219 10 Federally sponsored agencies1............................................ 81,429 89,712 113,575 160,802 164,623 166,287 166,330 169,431 170,932 11 Federal Home Loan Banks.............................................. 16,811 18,345 27,563 39,380 41,258 41,819 42,275 43,791 44,357 12 Federal Home Loan Mortgage Corporation................ 1,690 1,686 2,262 2,537 2,536 2,518 2,514 2,409 2,409 13 Federal National Mortgage Association........................ 30,565 31,890 41,080 53,643 55,185 54,605 54,110 54,666 54,183 14 Federal Land Banks.......................................................... 17,127 19,118 20,360 12,365 12,365 11,507 11,507 11,507 10,583 15 Federal Intermediate Credit Banks................................ 10,494 11,174 11,469 1,821 1,821 1,388 1,388 1,388 1,388 16 Banks for Cooperatives.................................................... 4,330 4,434 4,843 584 584 584 584 584 220 17 Farm Credit Banks1.......................................................... 2,548 5,081 48,021 48,153 50,645 50,675 51,689 54,345 18 Student Loan Marketing Association8.......................... 410 515 915 2,450 2,720 3,220 3,275 3,395 3,445 19 Other.................................................................................... 2 2 2 1 1 1 2 2 2 Memo: 20 Federal Financing Bank debt1,9.......................................... 28,711 38,580 51,298 85,440 87,460 88,420 89,444 94,101 96,489 Lending to federal and federally sponsored agencies 21 Export-Import Bank4............................................................ 5,208 5,834 6,898 10,067 10,654 10,654 10,654 11,346 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 2,450 2,720 3,220 3,275 3,395 3,445 24 Tennessee Valley Authority................................................ 3,110 4,190 5,635 9,285 9,465 9,650 9,825 9,955 10,120 25 United States Railway Association7.................................. 104 336 356 506 492 492 199 209 219 Other Lending10 26 Farmers Home Administration............................................ 10,750 16,095 23,825 39,431 39,431 39,271 39,851 41,791 43,456 27 Rural Electrification Administration.................................. 1,415 2,647 4,604 8,760 9,196 9,471 10,212 10,443 10,652 28 Other........................................................................................ 4,966 6,782 6,951 13,421 13,982 14,142 13,908 15,442 15,731 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 □ July 1981 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1980 1981 Type of issue or issuer, 1978 1979 1980 Nov. Dec. Jan.' Feb.' Mar.' Apr. 1 All issues, new and refunding1.................................................... 48,607 43,490 48,462 2,928 3,859 2,695 2,916 3,885 5,060 Type of issue 2 General obligation........................................................................... 17,854 12,109 14,100 734 558 736 876 1,249 1,323 3 Revenue.............................................................................................. 30,658 31,256 34,267 2,183 3,297 1,952 2,037 2,625 3,731 4 Housing Assistance Administration2.............................................. 5 U.S. government loans................................................................... 95 125 95 11 4 7 3 11 6 Type of issuer 6 State.................................................................................................... 6,632 4,314 5,304 323 127 478 530 349 544 7 Special district and statutory authority.......................................... 24,156 23,434 26,972 1,638 2,332 1,437 1,437 1,986 2,697 8 Municipalities, counties, townships, school districts.................... 17,718 15,617 16,090 955 1,395 773 945 1,540 1,813 9 Issues for new capital, total.......................................................... 37,629 41,505 46,736 2,715 3,760 2,686 2,843 3,851 4,891 Use of proceeds 10 Education............................................................................................ 5,003 5,130 4,572 211 198 334 292 515 484 11 Transportation............................................................................................ 3,460 2,441 2,621 256 53 147 322 238 118 12 Utilities and conservation....................................................................... 9,026 8,594 8,149 369 408 630 452 784 1,258 13 Social welfare...................................................................................... 10,494 15,968 19,958 1,076 2,465 784 869 960 997 14 Industrial aid...................................................................................... 3,526 3,836 3,974 412 295 386 296 514 1,284 15 Other purposes.................................................................................. 6,120 5,536 7,462 391 341 405 612 840 750 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 1980 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 All issues1........................................................................ 47,230 51,533 73,688 5,819 3,936 5,933 5,581 4,157 6,423' 6,511 2 Bonds................................................................................ 36,872 40,208 53,199 3,284 2,164 3,044 3,386 2,834 4,275' 4,273 Type of offering 3 Public.............................................................................. 19,815 25,814 41,587 2,756 1,405 1,719 2,928 2,408 3,788' 3,668 4 Private placement.......................................................... 17,057 14,394 11,612 528 759 1,325 458 426 497 605 Industry group 5 Manufacturing................................................................ 9,572 9,678 15,409 623 132 609 1,635 1,140 1,064' 1,355 6 Commercial and miscellaneous.................................... 5,246 3,948 6,688 320 442 509 231 356 212 301 7 Transportation................................................................ 2,007 3,119 3,329 240 147 165 353 45 172 105 8 Public utility.................................................................... 7,092 8,153 9,556 769 565 314 800 593 594 774 9 Communication.............................................................. 3,373 4,219 6,683 763 147 653 62 272 958 553 10 Real estate and financial.............................................. 9,586 11,094 11,534 569 732 793 306 430 1,276' 1,181 11 Stocks .............................................................................. 10,358 11,325 20,490 2,535 1,772 2,889 2,195 1,323 2,148 2,238 Type 12 Preferred..................................................................... 2,832 3,574 3,632 543 256 241 364 149 298 85 13 Common.......................................................................... 7,526 7,751 16,858 1,992 1,516 2,648 1,831 1,174 1,850 153 Industry group 14 Manufacturing................................................................ 1,241 1,679 4,839 851 418 844 609 204 735 531 15 Commercial and miscellaneous.................................... 1,816 2,623 5,245 400 509 908 603 589 816 477 16 Transportation................................................................ 263 255 549 117 53 95 124 81 17 146 17 Public utility.................................................................... 5,140 5,171 6,230 526 227 669 562 260 414 717 18 Communication.............................................................. 264 303 567 67 113 65 14 31 56 19 Real estate and financial.............................................. 1,631 12,931 3,059 574 452 308 284 159 167 310 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Investment CompaniesI 1 Sales of own shares2...................................................... 7,495 15,266 1,523 1,289 1,242 1,676 1,347 1,696 2,000 1,789 2 Redemptions of own shares3........................................ 8,393 12,012 1,362 1,086 1,720 1,193 960 1,112 1,594 1,282 3 Net sales.......................................................................... -898 3,254 161 203 -478 483 387 584 406 507 4 Assets4............................................................................ 49,277 58,400 56,156 60,329 58,400 56,160 56,452 59,146 58,531 60,067 5 Cash position5............................................................ 4,983 5,321 5,460 5,467 5,321 4,636 4,882 4,971 5,099' 5,441 6 Other............................................................................ 44,294 53,079 50,696 54,862 53,079 51,524 51,570 54,175 53,432' 54,626 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' Qlr 1 Profits before tax........................................................ 223.3 255.4 245.5 262.0 255.4 277.1 217.9 237.6 249.5 259.1 2 Profits tax liability.......................................................... 83.0 87.6 82.3 86.4 87.2 94.2 71.5 78.5 85.2 91.1 3 Profits after tax.............................................................. 140.3 167.7 163.1 173.6 168.2 182.9 146.4 159.1 164.3 168.0 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 90.7 102.4 106.6 108.4 6 Capital consumption allowances.................................. 122.9 139.5 158.3 142.6 146.4 151.7 155.4 160.5 165.4 170.7 7 Net cash flow.................................................................. 218.6 257.1 265.4 266.0 263.0 280.7 246.1 267.9 272.0 279.1 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 □ July 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 *.................................................. 1.681 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 19811 Q2 Q3 Q4 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 Ql Q2 Q3 Q4 Ql 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 24.91 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 8.1 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 Apr. 30, 1981 1981 1981 19811 Feb. Mar. Apr. Feb. Mar. Apr. Feb. Mar. Apr. 1 Total............................................................................................ 74,065 280 -773 1,409 18,207 18,096 18,133 17,927 18,869 16,724 2 Retail automotive (commercial vehicles).................................... 11,646 -160 -295 -213 885 749 790 1,045 1,044 1,003 3 Wholesale automotive.................................................................... 11,669 -494 -1,075 890 5,351 5,050 5,865 5,845 6,125 4,975 4 Retail paper on business, industrial and farm equipment...................................................................... 23,872 591 556 56 1,800 1,788 1,384 1,209 1,232 1,328 5 Loans on commercial accounts receivable and factored com­ mercial accounts receivable.................................................. 8,019 -262 178 139 7,792 8,142 7,735 8,054 7,964 7,596 6 All other business credit................................................................ 18,859 605 -137 537 2,379 2,367 2,359 1,774 2,504 1,822 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Financial Statistics □ July 1981 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1980 1981 Item 1978 1979 1980 Dec. Jan. Feb. Mar. Apr. May June 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 90.1 87.0 90.3 90.9 88.5 88.9 94.5 2 Amount of loan (thousands of dollars)........ 45.9 53.3 59.3 63.0 63.0 65.6 64.5 64.1 65.5 67.9 3 Loan/price ratio (percent).............................. 75.3 73.9 73.3 72.9 75.6 75.6 73.9 74.7 76.7 74.0 4 Maturity (years).............................................. 28.0 28.5 28.2 28.2 29.1 29.0 28.7 28.6 28.5 28.1 5 Fees and charges (percent of loan amount)2 1.39 1.66 2.10 2.40 2.40 2.59 2.64 2.61 2.60 2.47 6 Contract rate (percent per annum).............. 9.30 10.48 12.25 12.80 12.80 13.02 13.48 13.62 13.56 14.07 Yield (percent per annum) 1 FHLBB series3................................................ 9.54 10.77 12.65 13.28 13.26 13.54 14.02 14.15 14.10 14.54 8 HUD series4...................................................... 9.68 11.15 13.95 15.05 14.95 15.10 15.25 15.70' 16.35 16.40 Secondary Markets Yield (percent per annum) 9 FHA mortgages (HUD series)5.................... 9.70 10.87 13.42 14.08 14.23 14.79 15.04 15.91 16.03 16.31 10 GNMA securities6............................................ 8.98 10.22 12.55 13.62 13.50 14.13 14.22 14.69r 15.31 15.02 FNMA auctions7 11 Government-underwritten loans................ 9.77 11.17 14.11 15.21 14.87 15.24 15.67 16.54 16.43 16.17 12 Conventional loans...................................... 10.01 11.77 14.43 15.54 14.95 15.05 15.33 15.66 16.44 16.30 Activity in seccindary marlkets Federal National Mortgage Association Mortgage holdings (end of period) 13 Total.............................................................................. 43,311 51,091 57,327 57,327 57,390 57,434 57,362 57,436 57,586 1 1 5 4 F V H A A -g - u in a s r u a r n e t d ee .. d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 0 , , 2 5 4 4 3 4 2 1 4 0 , , 4 4 8 9 9 6 38,9698 38,969 38,955 38,972 38,878 38,919 39,030 16 Conventional............................................................ 11,524 16,106 18,358 18,358 18,435 18,462 18,484 18,517 18,556 Mortgage transactions (during period) 1 1 7 8 S Pu a r le c s h . a .. s .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,303 9 10,805 0 8,100 0 855 0 185 0 161 0 206 0 283 0 Mortgage commitments9 19 Contracted (during period)........................................ 18,959 10,179 8,044 403 241 244 320 383 802 20 Outstanding (end or period)...................................... 9,185 6,409 3,278 3,278 3,063 2,683 2,173 2,031 2,328 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered...................................................................... 12,978 8,860 8,605 242.1 210.7 155.3 145.3 139.1 2,048 237.6 22 Accepted.................................................................... 6,747.2 3,921 4,002 110.8 93.0 104.7 104.7 114.5 179.1 216.1 Conventional loans 23 Offered...................................................................... 9,933.0 4,495 3,639 84.8 32.0 108.6 149.2 126.9 281.3 307.1 24 Accepted.................................................................... 5,111 2,344 1,749 54.1 30.3 79.1 97.6 92.0 113.2 142.0 Federal Home Loan Mortgage Corporation Mortgage holdings (end of period)10 25 Total.............................................................................. 3,064 4,035 5,067 5,067 5,039 5,107 5,161 5,176 5,223 26 FHA/VA.................................................................... 1,243 1,102 1,033 1,033 1,029 1,025 1,021 1,017 1,013 27 Conventional............................................................ 1,165 1,957 2,830 2,830 2,825 2,883 2,931 2,952 2,988 Mortgage transactions (during period) 28 Purchases...................................................................... 6,525 5,717 3,722 285 152 174 148 125 480 29 Sales.............................................................................. 6,211 4,544 2,526 48 168 94 127 97 422 Mortgage commitments11 30 Contracted (during period)........................................ 7,451 5,542 3,859 126 203 294 768 886 1,016 31 Outstanding (end of period)...................................... 1,410 797 447 653 487 394 699 678 322 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 within 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 1,474,943c 2 1- to 4-family.......................................................................... 765,217 878,931 960,422 897,608 910,286 935,393 960,422 973,601 3 Multifamily.............................................................................. 121,138 128,852 136,580 130,363 132,194 134,193 136,580 139,087‘ 4Commercial............................................................................ 211,851 236,451 258,338 242,776 247,444 251,651 258,338 262,140 5Farm........................................................................................ 71,206 82,516 96,500 86,913 91,004 93,644 96,500 100,115 6Major 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 47 Mortgage 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.......................................................... 150,863 171,821 196,896 177,831 183,992 190,491 196,896 203,121 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 quarters 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 □ July 1981 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1980 1981 Holder, and type of credit 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. May Amounts outstanding (end of period) 1 Total............................................................ 273,645 312,024 313,435 308,051 313,435 310,554 309,188 310,766 313,419 315,465 By major holder 2 Commercial banks.................................... 136,016 154,177 145,765 145,147 145,765 143,749 142,030 141,897 142,070 142,143 3 Finance companies.................................... 54,298 68,318 76,756 75,690 76,756 77,131 78,090 79,490 81,033 81,794 4 Credit unions.............................................. 44,334 46,517 44,041 43,606 44,041 43,601 43,776 44,212 44,390 45,055 5 Retailers2.................................................... 25,987 28,119 29,410 26,469 29,410 28,300 27,329 26,965 27,227 27,319 6 Savings and loans...................................... 7,097 8,424 9,911 9,687 9,911 10,023 10,173 10,458 10,792 11,148 7 Gasoline companies.................................. 3,220 3,729 4,717 4,662 4,717 4,929 4,958 4,898 5,046 5,157 8 Mutual savings banks................................ 2,693 2,740 2,835 2,790 2,835 2,821 2,832 2,846 2,861 2,849 By major type of credit 9 Automobile................................................ 101,647 116,362 116,327 116,517 116,327 115,262 115,677 117,517 118,479 118,932 10 Commercial banks................................ 60,510 67,367 61,025 61,848 61,025 59,608 59,061 59,378 59,252 59,169 11 Indirect paper.................................... 33,850 38,338 34,857 35,284 34,857 33,947 33,667 34,016 33,931 33,913 12 Direct loans........................................ 26,660 29,029 26,168 26,564 26,168 25,661 25,394 25,362 25,321 25,256 13 Credit unions.......................................... 21,200 22,244 21,060 20,852 21,060 20,850 20,933 21,142 21,227 21,545 14 Finance companies................................ 19,937 26,751 34,242 33,817 34,242 34,804 35,683 36,997 38,000 38,218 15 Revolving.................................................... 48,309 56,937 59,862 55,304 59,862 58,985 57,566 56,831 57,322 57,524 16 Commercial banks................................ 24,341 29,862 30,001 28,360 30,001 29,952 29,412 29,051 29,127 29,096 17 Retailers.................................................. 20,748 23,346 25,144 22,282 25,144 24,104 23,196 22,882 23,149 23,271 18 Gasoline companies.............................. 3,220 3,729 4,717 4,662 4,717 4,929 4,958 4,898 5,046 5,157 19 Mobile home.............................................. 15,235 16,838 17,327 17,293 17,327 17,244 17,189 17,273 17,422 17,626 20 Commercial banks................................ 9,545 10,647 10,376 10,452 10,376 10,271 10,174 10,153 10,142 10,159 21 Finance companies................................ 3,152 3,390 3,745 3,702 3,745 3,741 3,740 3,762 3,828 3,909 22 Savings and loans.................................. 2,067 2,307 2,737 2,675 2,737 2,768 2,809 2,888 2,980 3,079 23 Credit unions.......................................... 471 494 469 464 469 464 466 470 472 479 24 Other............................................................ 108,454 121,887 119,919 118,937 119,919 119,063 118,756 119,145 120,196 121,383 25 Commercial banks................................ 41,620 46,301 44,363 44,487 44,363 43,918 43,383 43,315 43,549 43,719 26 Finance companies................................ 31,209 38,177 38,769 38,171 38,769 38,586 38,667 38,731 39,205 39,667 27 Credit unions.......................................... 22,663 23,779 22,512 22,290 22,512 22,287 22,377 22,600 22,691 23,031 28 Retailers.................................................. 5,239 4,773 4,266 4,187 4,266 4,196 4,133 4,083 4,078 4,048 29 Savings and loans.................................. 5,030 6,117 7,174 7,012 7,174 7,255 7,364 7,570 7,812 8,069 30 Mutual savings banks............................ 2,693 2,740 2,835 2,790 2,835 2,821 2,832 2,846 2,861 2,849 Net change (during period)3 31 Total............................................................ 43,079 38,381 1,410 839 1,619 869 1,996 3,108 2,331 1,346 By major holder 32 Commercial banks.................................... 23,641 18,161 -8,412 -120 -276 -1,357 -544 612 -345 -14 33 Finance, companies.................................... 9,430 14,020 8,438 594 860 1,113 1,530 1,539 1,253 409 34 Credit unions.............................................. 6,729 2,185 -2,475 218 378 288 444 287 272 391 35 Retailers2.................................................... 2,497 2,132 1,291 52 316 409 103 253 531 -3 36 Savings and loans...................................... 7 1,327 1,485 -14 190 232 254 418 421 519 37 Gasoline companies.................................. 257 509 988 72 83 106 209 -6 141 67 38 Mutual savings banks................................ 518 47 95 37 68 78 0 5 58 -23 By major type of credit 39 Automobile................................................ 18,736 14,715 -35 245 302 -63 979 1,682 428 -195 40 Commercial banks................................ 10,933 6,857 -6,342 -138 -491 -1,253 -346 229 -461 -208 41 Indirect paper.................................... 6,471 4,488 -3,481 -44 -181 -839 -229 268 -256 -83 42 Direct loans........................................ 4,462 2,369 -2,861 -94 -310 -414 -117 -39 -205 -125 43 Credit unions.......................................... 3,101 1,044 -1,184 101 174 206 211 132 142 160 44 Finance companies................................ 4,702 6,814 7,491 282 619 984 1,114 1,321 747 -147 45 Revolving................................................ 9,035 8,628 2,925 265 616 557 441 587 838 350 46 Commercial banks............................ 5,967 5,521 139 121 211 59 166 346 153 230 47 Retailers.................................................. 2,811 2,598 1,798 72 322 392 66 247 544 53 48 Gasoline companies.......................... 257 509 988 72 83 106 209 -6 141 67 49 Mobile home.............................................. 286 1,603 488 24 66 -24 -47 88 145 243 50 Commercial banks................................ 419 1,102 -271 -33 -34 -85 -102 -35 -15 7 51 Finance companies............................ 74 238 355 44 48 15 18 25 58 78 52 Savings and loans.............................. -276 240 430 11 47 46 31 97 99 152 53 Credit unions.......................................... 69 23 -25 2 5 0 6 1 3 6 54 Other............................................................ 15,022 13,435 -1,968 305 635 399 623 751 920 948 55 Commercial banks................................ 6,322 4,681 -1,938 -70 38 -78 -262 72 -22 -43 56 Finance companies................................ 4,654 6,968 592 268 193 114 398 193 448 478 57 Credit unions.......................................... 3,559 1,118 -1,266 115 199 82 227 154 127 225 58 Retailers.................................................. -314 -466 -507 -20 -6 17 37 6 -13 -56 59 Savings and loans.................................. 283 1,087 1,056 -25 143 186 223 321 322 367 60 Mutual savings banks............................ 518 47 95 37 68 78 0 5 58 -23 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 Nov. Dec. Jan. Feb. Mar. Apr. May Extensions 1 Total........................................................................... 297,668 324,777 305,887 25,991 27,149 27,059 28,706 29,822 28,878 28,149 By major holder 2 Commercial banks........................................................ 142,433 154,733 133,605 11,432 11,484 10,397 11,648 12,676 11,986 12,055 3 Finance companies........................................................ 50,505 61,518 60,801 4,852 5,185 5,904 6,193 5,911 5,218 4,937 4 Credit unions.................................................................. 38,111 34,926 29,594 2,795 3,035 2,994 3,167 3,153 3,181 3,212 5 Retailers1........................................................................ 44,571 47,676 50,959 4,250 4,497 4,673 4,500 4,685 5,002 4,486 6 Savings and loans.......................................................... 3,724 5,901 6,621 444 658 715 751 1,038 985 1,068 7 Gasoline companies...................................................... 16,017 18,005 22,402 2,024 2,061 2,130 2,284 2,180 2,272 2,243 8 Mutual savings banks.................................................... 2,307 2,018 1,905 194 229 246 163 179 234 148 By major type of credit 9 Automobile.................................................................... 87,981 93,901 83,002 7,117 7,234 7,237 8,333 8,700 7,205 7,320 10 Commercial banks.................................................... 52,969 53,554 40,657 3,552 3,271 2,598 3,560 4,117 3,438 3,627 11 Indirect paper........................................................ 29,342 29,623 22,269 1,962 1,857 1,230 1,944 2,365 1,929 2,071 12 Direct loans............................................................ 23,627 23,931 18,388 1,590 1,414 1,368 1,616 1,752 1,509 1,556 13 Credit unions.............................................................. 18,539 17,397 15,294 1,402 1,538 1,592 c 1,613 1,586 1,589 1,608 14 Finance companies.................................................... 16,473 22,950 27,051 2,163 2,425 3,047 3,160 2,997 2,178 2,085 15 Revolving........................................................................ 105,125 120,174 129,580 10,953 11,614 11,483 11,867 12,071 12,352 11,904 16 Commercial banks.................................................... 51,333 61,048 61,847 5,155 5,554 5,185 5,602 5,695 5,561 5,613 17 Retailers...................................................................... 37,775 41,121 45,331 3,774 3,999 4,168 3,981 4,196 4,519 4,048 18 Gasoline companies.................................................. 16,017 18,005 22,402 2,024 2,061 2,130 2,284 2,180 2,272 2,243 19 Mobile home.................................................................. 5,412 6,471 5,098 424 479 383 409 641 551 609 20 Commercial banks.................................................... 3,697 4,542 2,942 243 254 171 185 259 251 250 21 Finance companies.................................................... 886 797 898 93 89 81 88 88 100 112 22 Savings and loans...................................................... 609 948 1,146 74 119 119 118 269 184 230 23 Credit unions.............................................................. 220 184 113 14 17 12 18 25 16 17 24 Other................................................................................ 99,150 104,231 88,207 7,497 7,822 7,956 8,097 8,410 8,770 8,316 25 Commercial banks.................................................... 34,434 35,589 28,159 2,482 2,405 2,443 2,301 2,605 2,736 2,565 26 Finance companies.................................................... 33,146 37,771 32,852 2,596 2,671 2,776 2,945 2,826 2,940 2,740 27 Credit unions.............................................................. 19,352 17,345 14,187 1,379 1,480 1,390 1,536 1,542 1,576 1,587 28 Retailers...................................................................... 6,796 6,555 5,628 476 498 505 519 489 483 438 29 Savings and loans...................................................... 3,115 4,953 5,476 370 539 596 633 769 801 838 30 Mutual savings banks................................................ 2,307 2,018 1,905 194 229 246 163 179 234 148 Liquidations 31 Total........................................................................... 254,589 286,396 304,477 25,152 25,530 26,190 26,710 26,714 26,547 26,803 By major holder 32 Commercial banks........................................................ 118,792 136,572 142,017 11,552 11,760 11,754 12,192 12,064 12,331 12,069 33 Finance companies........................................................ 41,075 47,498 52,363 4,258 4,325 4,791 4,663 4,372 3,965 4,528 34 Credit unions.................................................................. 31,382 32,741 32,069 2,577 2,657 2,706 2,723 2,866 2,909 2,821 35 Retailers1........................................................................ 42,074 45,544 49,668 4,198 4,181 4,264 4,397 4,432 4,471 4,489 36 Savings and loans.......................................................... 3,717 4,574 5,136 458 468 483 497 620 564 549 37 Gasoline companies...................................................... 15,760 17,496 21,414 1,952 1,978 2,024 2,075 2,186 2,131 2,176 38 Mutual savings banks.................................................... 1,789 1,971 1,810 157 161 168 163 174 176 171 By major type of credit 39 Automobile.................................................................... 69,245 79,186 83,037 6,872 6,932 7,300 7,354 7,018 6,777 7,515 40 Commercial banks.................................................... 42,036 46,697 46,999 3,690 3,762 3,851 3,906 3,888 3,899 3,835 41 Indirect paper........................................................ 22,871 25,135 25,750 2,006 2,038 2,069 2,173 2,097 2,185 2,154 42 Direct loans.................... .................................... 19,165 21,562 21,249 1,684 1,724 1,782 1,733 1,791 1,714 1,681 43 Credit unions.............................................................. 15,438 16,353 16,478 1,301 1,364 1,386 1,402 1,454 1,447 1,448 44 Finance companies.................................................... 11,771 16,136 19,560 1,881 1,806 2,063 2,046 1,676 1,431 2,232 45 Revolving........................................................................ 96,090 111,546 126,655 10,688 10,998 10,926 11,426 11,484 11,514 11,554 46 Commercial banks.................................................... 45,366 55,527 61,708 5,034 5,343 5,126 5,436 5,349 5,408 5,383 47 Retailers...................................................................... 34,964 38,523 43,533 3,702 3,677 3,776 3,915 3,949 3,975 3,995 48 Gasoline companies.................................................. 15,760 17,496 21,414 1,952 1,978 2,024 2,075 2,186 2,131 2,176 49 Mobile home.................................................................. 5,126 4,868 4,610 400 413 407 456 553 406 366 50 Commercial banks.................................................... 3,278 3,440 3,213 276 288 256 287 294 266 243 51 Finance companies.................................................... 812 559 543 49 41 66 70 63 42 34 52 Savings and loans...................................................... 885 708 716 63 72 73 87 172 85 78 53 Credit unions.............................................................. 151 161 138 12 12 12 12 24 13 11 54 Other................................................................................ 84,128 90,796 90,175 7,192 7,187 7,557 7,474 7,659 7,850 7,368 55 Commercial banks.................................................... 28,112 30,908 30,097 2,552 2,367 2,521 2,563 2,533 2,758 2,608 56 Finance companies.................................................... 28,492 30,803 32,260 2,328 2,478 2,662 2,547 2,633 2,492 2,262 57 Credit unions.............................................................. 15,793 16,227 15,453 1,264 1,281 1,308 1,309 1,388 1,449 1,362 58 Retailers...................................................................... 7,110 7,021 6,135 496 504 488 482 483 496 494 59 Savings and loans...................................................... 2,832 3,866 4,420 395 396 410 410 448 479 471 60 Mutual savings banks................................................ 1,789 1,971 1,810 157 161 168 163 174 176 171 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 □ July 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 H2 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 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 16 Multifamily residential.............................. * 1.8 7.4 10.2 8.9 8.7 9.3 11.2 8.1 9.7 8.1 9.0 17 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 18 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 19 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 20 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 21 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 22 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 23 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 24 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 25 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 26 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 27 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 28 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 29 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 30 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 31 Corporate equities................................................ .2 .3 .4 -.5 .9 2.2 -.8 -.2 * 1.7 1.8 2.3 32 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 33 Bonds.................................................................. 6.2 8.6 5.1 4.0 3.9 .8 5.0 3.0 3.0 4.7 2.0 -.4 34 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 35 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 36 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 Financial sectors 37 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 38 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 39 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 40 Mortgage pool securities.......................................... 10.3 15.7 20.5 18.3 28.1 23.2 16.6 20.1 24.2 32.0 20.7 25.2 41 Loans from U.S. government.................................. .9 -.4 -1.2 - - - - 42 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 43 Corporate equities.................................................... .6 1.0 .9 1.7 2.3 3.4 2.2 1.1 2.0 2.5 2.6 4.3 44 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 45 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 46 Mortgages................................................................ 2.3 2.1 3.1 .9 -1.2 -.9 2.1 -.3 -.5 -1.9 -6.8 4.8 47 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 48 Open market paper and RPs.............................. 1.1 2.2 9.6 14.6 18.4 5.4 13.5 15.7 23.0 13.8 -3.6 14.5 49 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 By sector 50 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 51 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 52 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 53 Commercial banks.................................................... 1.2 2.3 1.1 1.3 1.6 .6 1.5 1.1 1.3 1.8 .8 .3 54 Bank affiliates............................................................ .3 -.8 1.3 6.7 4.5 5.6 5.8 7.6 6.2 2.9 4.5 6.6 55 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 56 Other insurance companies...................................... 1.0 .9 .9 1.1 1.0 .8 1.0 1.1 1.0 .9 .8 .7 57 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 58 REITs.......................................................................... -1.4 -2.4 -2.2 -1.0 -.4 -.9 -1.0 -1.0 -.6 -.1 -1.4 -2.0 59 Open-end investment companies............................ -.1 -1.0 -.9 -1.0 -1.0 2.0 -.5 -1.5 -1.0 -.9 .9 2.6 All sectors 60 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 61 Investment company shares........................................ -.1 -1.0 -.9 -1.0 -1.0 2.0 -.5 -1.5 -1.0 -.9 .9 2.6 62 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 63 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 64 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 65 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 66 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 67 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 68 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 69 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 70 Open market 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 71 Other loans................................................................ 8.7 15.3 25.2 38.6 39.5 32.6 34.6 42.5 39.4 39.5 28.4 40.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 □ July 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 Oct. Nov. Dec. Jan. Feb. Mar.' Apr.' May June 1 Industrial production1....................................... 146.1 152.5 147.1 146.9 149.4 151.0 151.7 152.2 152.2 152.2 152.8 152.7 Market groupings 2 Products, total........................................................ 144.8 150.0 146.8 147.2 148.7 149.9 150.3 149.8 150.7 151.5 151.9 151.4 3 Final, total.......................................................... 135.9 147.2 145.4 145.8 147.5 148.3 148.3 147.9 149.2 150.3 150.9 150.7 4 Consumer goods............................................ 149.1 150.8 145.5 146.6 148.0 147.7 147.2 146.9 148.2 149.2 149.8 149.4 5 Equipment...................................................... 132.8 142.2 145.1 144.8 146.7 149.1 149.8 149.1 150.7 151.7 152.5 152.4 6 Intermediate........................................................ 154.1 160.5 151.9 152.4 153.5 156.1 157.7 156.9 156.3 155.9 155.3 154.3 7 Materials.................................................................. 148.3 156.4 147.7 146.4 150.5 152.6 153.8 154.2 154.4 153.2 154.3 154.7 Industry groupings 8 Manufacturing........................................................ 146.8 153.6 146.6 146.4 149.1 150.6 151.1 151.0 151.7 152.3 152.9 152.2 Capacity utilization (percent)1,2 9 Manufacturing.................................................... 84.4 85.7 79.0 78.2 79.4 79.9 80.0 79.8 79.9 80.0 80.1 79.6 10 Industrial materials industries.......................... 85.6 87.4 79.8 78.4 80.4 81.3 81.7 81.7 81.7 80.9 81.3 81.3 11 Construction contracts (1972 = 100)3................ 174.1 185.6 161.8 167.0 210.0 193.0 185.0 177.0 183.0 172.0 160.0 12 Nonagricultural employment, total4.................. 131.8 136.5r 137.6' 137.8' 138.1' 138.2' 138.4' 138.7' 138.8 139.0 139.1 139.1 13 Goods-producing, total.................................... 109.8 113.5r 110.3' 109.5' 110.0' 110.0' 110.0' 110.1' 110.3 110.3 110.2 110.6 14 Manufacturing, total...................................... 105.4 108.2' 104.4' 103.4' 103.8' 103.7' 103.7' 103.8' 103.8 104.6 105.0 104.9 15 Manufacturing, production-worker............ 103.0 105.3' 99.4' 98.0' 98.4' 98.3' 98.2' 98.2' 98.4 99.2 99.6 99.7 16 Service-producing.............................................. 143.8 149.1' 152.6' 153.3' 153.5' 153.7' 154.0' 154.4' 154.5 154.7 154.9 154.8 17 Personal income, total.......................................... 273.3 308.5 342.9 354.7 358.3 361.4 365.2 368.0' 371.5 373.6 275.7 n.a. 18 Wages and salary disbursements.................... 258.8 289.5 314.7 323.6 328.0 330.5 335.6 337.9 340.2 341.4 242.9 n.a. 19 Manufacturing................................................ 223.1 248.6 261.5 267.6 273.1 275.8 280.1 281.3 382.9 285.8 288.4 n.a. 20 Disposable personal income5.............................. 267.0 299.6 332.5 339.3 343.2 346.4 349.2 352.5 355.3 358.7 360.5 362.4 21 Retail sales6............................................................ 253.8 281.6 300.0 308.0 313.8 315.8 326.6 331.7 3.348 3.281 3.260 3.300 Prices7 22 Consumer............................................................ 195.4 217.4 246.8 253.9 256.2 258.4 260.5 263.2 265.1 226.8 269.0 n.a. 23 Producer finished goods.................................... 194.6 216.1 246.9 255.4 256.2 257.2 260.4 262.4 265.3 267.7 268.9 269.9 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). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1980 1981 1980 1981 1980 1981 Series Q3 04 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 01 Q2 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing..................................................... 141.0 148.7 151.3 152.5 186.3 187.8 189.3 190.8 75.7 79.2 79.9 79.9 2 Primary processing................................................ 139.6 153.1 157.3 157.2 191.5 193.0 194.3 195.4 72.9 79.4 81.0 80.5 3 Advanced processing............................................ 141.8 146.4 148.2 149.7 183.5 185.0 186.6 188.3 77.3 79.1 79.4 79.5 4 Materials.............................................................. 139.2 149.8 154.1 154.1 185.8 187.2 188.7 189.8 74.9 80.0 81.7 81.1 5 Durable goods........................................................ 131.5 145.1 151.1 152.9 190.0 191.5 192.8 194.0 69.2 75.8 78.4 78.8 6 Metal materials.................................................. 86.6 109.9 117.2 n.a. 140.9 141.0 141.1 n.a. 61.5 78.0 83.1 n.a. 7 Nondurable goods.................................................. 161.9 175.5 179.1 179.7 204.3 206.5 208.5 210.1 79.2 85.0 85.9 85.5 8 Textile, paper, and chemical............................ 165.6 182.7 186.8 188.6 213.7 216.2 218.5 220.4 77.5 84.5 85.5 85.6 9 Textile.............................................................. 113.4 113.2 111.0 n.a. 139.6 140.0 140.3 n.a. 81.2 80.9 79.1 n.a. 10 Paper................................................................ 142.9 148.9 151.2 n.a. 157.4 158.8 160.0 n.a. 90.7 93.8 94.5 n.a. 11 Chemical.......................................................... 197.9 226.9 234.6 n.a. 268.7 272.9 276.4 n.a. 73.6 83.2 84.9 n.a. 12 Energy materials.................................................... 129.6 129.5 130.8 125.0 152.6 153.1 154.1 155.0 85.0 84.6 84.9 80.7 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 June Nov. Dec. Jan. Feb. Mar. Apr. May June Capacity utilization rate (percent) 13 Manufacturing...................................... 88.0 69.0 87.2 74.9 75.7 79.4 79.9 80.0 79.8 79.9 80.0 80.1 79.6 14 Primary processing.......................... 93.8 68.2 90.1 70.9 72.7 79.6 80.8 81.2 81.2 80.5 80.6 80.5 80.2 15 Advanced processing........................ 85.5 69.4 86.2 77.1 77.4 79.2 79.6 79.5 79.1 79.6 79.7 79.9 79.3 16Materials................................................ 92.6 69.4 88.8 73.7 75.7 80.4 81.3 81.7 81.7 81.7 80.9 81.0 81.3 17 Durable goods.................................. 91.5 63.6 88.4 68.0 70.8 76.5 77.3 78.0 78.2 78.9 78.7 78.8 78.6 18 Metal materials............................ 98.3 68.6 96.0 58.4 67.0 81.4 81.0 82.0 83.2 84.1 81.1 81.0 n.a. 19 Nondurable goods............................ 94.5 67.2 90.9 76.8 78.7 84.3 86.3 86.7 86.1 84.9 85.4 85.7 85.3 20 Textile, paper, and chemical.... 95.1 65.3 91.4 74.5 77.1 83.7 85.9 86.2 85.8 84.5 85.1 85.4 85.5 21 Textile........................................ 92.6 57.9 90.1 79.5 81.8 80.7 79.8 79.8 79.2 78.2 79.1 79.7 n.a. 22 Paper .......................................... 99.4 72.4 97.6 88.1 91.6 94.1 94.2 93.7 94.8 94.9 93.8 93.5 n.a. 23 Chemical.................................... 95.5 64.2 91.2 69.6 72.7 82.0 85.4 85.9 85.2 83.6 84.4 84.9 n.a. 24 Energy materials.............................. 94.6 84.8 88.3 83.1 85.8 85.5 85.0 84.6 85.2 84.8 80.3 79.7 82.7 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 Dec. Jan. Feb. Mar. Apr. May June Household Survey Data 1 Noninstitutional population1........................ 161,058 163,620 166,246 167,396 167,585 167,747 167,902 168,071 168,272 168,480 2 Labor force (including Armed Forces)1 ... 102,537 104,996 106,821 107,191 107,668 107,802 108,305 108,851 109,533 108,307 3 Civilian labor force........................................ 100,420 102,908 104,719 105,067 105,543 105,681 106,177 106,722 107,406 106,176 Employment 4 Nonagricultural industries2.................... 91,031 93,648 93,960 93,888 94,294 94,646 95,136 95,513 95,882 95,127 5 Agriculture................................................... 3,342 3,297 3,310 3,394 3,403 3,281 3,276 3,463 3,353 3,265 Unemployment 6 Number.................................................... 6,047 5,963 7,448 7,785 7,847 7,754 7,764 7,746 8,171 7,784 7 Rate (percent of civilian labor force) . 6.0 5.8 7.1 7.4 7.4 7.3 7.3 7.3 7.6 7.3 8 Not in labor force.......................................... 58,521 58,623 59,425 60,205 59,917 59,946 59,598 59,219 58,739 60,173 Establishment Survey Data 9 Nonagricultural payroll employment3....... 86,697 89,823 r 90,564r 90,949r 91,091r 91,258r 91,347r 91,458r 91,530 r 91,516 10 Manufacturing................................................ 20,505 21,040' 20,300' 20,175' 20,174' 20,177' 20,171' 20,332' 20,413' 20,405 11 Mining.............................................................. 851 958' 1,020' 1,069' 1,083' 1,091' 1,098' 950' 955' 1,106 12 Contract construction.................................... 4,229 4,463' 4,399' 4,387' 4,390' 4,389' 4,416' 4,418' 4,322' 4.263 13 Transportation and public utilities.............. 4,923 5,136' 5,143' 5,118' 5,124' 5,135' 5,139' 5,161' 5,141' 5.167 14 Trade................................................................ 19,542 20,192' 20,386' 20,470' 20,529' 20,600' 20,635' 20,636' 20,714' 20,681 15 Finance ............................................................ 4,724 4,975' 5,168' 5,254' 5,268' 5,283' 5,293' 5,316' 5,322' 5,329 16 Service.............................................................. 16,252 17,112' 17,901' 18,240' 18,300' 18,343' 18,371' 18,475' 18,536' 18,548 17 Government.................................................... 15,672 15,947' 16,249' 16,236' 16,223' 16,240' 16,204' 16,170' 16,127' 16,017 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 □ July 1981 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value* Monthly data are seasonally adjusted. 1967 1980 1980 1981 Grouping p p ti r o o o r n ­ ­ a a v g e e r­ June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. MayP June* Index (1967 = 100) Major Market 1 Total index.................................... 100.00 147.1 141.5 140.4 141.8 144.1 146.9 149.4 151.0 151.7 151.5 152.2 152.2 152.8 152.7 2 Products............................................ 60.71 146.8 142.5 142.8 143.8 145.3 147.2 148.7 149.9 150.3 149.8 150.7 151.5 151.9 151.4 3 Final products.............................. 47.82 145.4 142.3 142.4 142.8 143.9 145.8 147.5 148.3 148.3 147.9 149.2 150.3 150.9 150.7 4 Consumer goods.................... 27.68 145.5 142.1 142.0 142.7 144.3 146.6 148.0 147.7 147.2 146.9 148.2 149.2 149.8 149.4 5 Equipment.............................. 20.14 145.1 142.6 142.9 142.9 143.2 144.8 146.7 149.1 149.8 149.1 150.7 151.7 152.5 152.4 6 Intermediate products................ 12.89 151.9 146.2 144.5 147.6 150.6 152.4 153.5 156.1 157.7 156.9 156.3 155.9 155.3 154.3 7 Materials.......................................... 39.29 147.7 140.0 136.5 138.6 142.4 146.4 150.5 152.6 153.8 154.2 154.4 153.2 154.3 154.7 Consumer goods 8 Durable consumer goods.............. 7.89 136.5 128.2 128.3 128.6 132.7 139.6 142.9 141.3 138.8 138.9 143.3 144.0 146.5 145.8 9 Automotive products................ 2.83 132.7 121.6 129.2 121.5 130.6 141.8 145.3 139.1 127.1 129.0 139.4 143.6 151.3 152.4 10 Autos and utility vehicles.... 2.03 109.9 97.1 106.4 94.1 105.5 120.2 124.3 115.9 99.8 103.7 116.7 120.1 129.9 131.6 11 Autos.................................... 1.90 103.4 95.7 105.2 91.3 98.0 110.7 114.3 105.3 90.0 96.0 108.3 113.2 120.8 122.2 12 Auto parts and allied goods.. 80 190.4 184.0 183.7 186.9 191.1 194.2 196.8 198.6 198.0 196.6 196.9 203.2 205.9 205.2 13 Home goods................................ 5.06 138.7 134.6 132.0 127.7 132.6 134.0 138.3 141.5 142.6 145.4 145.5 144.3 143.8 142.1 14 Appliances, A/C, and TV ... 1.40 117.1 105.6 102.3 114.2 116.3 123.5 128.4 126.8 131.2 124.2 127.7 120.8 119.0 117.0 15 Appliances and TV............ 1.33 119.5 108.5 103.4 114.2 117.6 125.6 131.0 129.2 132.7 126.7 129.7 122.3 120.1 16 Carpeting and furniture........ 1.07 155.0 146.7 136.1 141.1 146.1 150.2 154.9 156.3 156.8 159.9 159.3 164.1 165.1 17 Miscellaneous home goods... 2.59 143.6 140.2 138.1 139.1 138.6 141.5 143.0 145.4 148.4 149.0 149.4 148.9 148.4 146.6 18 Nondurable consumer goods........ 19.79 149.1 147.6 147.4 148.3 148.9 149.4 150.1 150.2 150.5 150.1 150.1 151.3 151.1 150.8 4.29 126.8 126.7 122.5 123.6 122.1 125.1 127.3 123.7 122.3 119.9 120.0 120.3 20 Consumer staples........................ 15.50 155.3 153.4 154.3 155.1 156.3 156.1 156.4 157.5 158.3 158.5 158.5 159.9 159.4 159.3 21 Consumer foods and tobacco 8.33 147.0 146.2 146.4 146.0 147.0 147.7 148.0 148.9 148.7 149.3 149.6 151.0 149.9 22 Nonfood staples...................... 7.17 165.0 161.7 163.6 165.7 167.1 165.9 166.2 167.6 169.5 169.1 168.8 170.2 170.5 171.2 23 Consumer chemical products........................ 2.63 208.7 202.6 204.3 209.3 213.0 210.2 210.0 212.5 214.7 217.6 220.0 222.9 223.6 24 Consumer paper products . 1.92 122.9 120.6 121.5 122.0 122.3 124.8 127.3 127.0 127.6 129.5 129.1 127.4 126.7 25 Consumer energy products 2.62 151.9 150.9 153.5 153.9 154.0 151.5 150.8 152.3 154.8 149.4 146.5 148.8 149.3 26 Residential utilities........ 1.45 171.2 170.1 176.5 178.6 178.3 175.0 171.8 171.2 174.4 167.0 166.5 170.3 Equipment 27 Business............................................ 12.63 173.3 169.8 170.1 170.3 170.5 172.3 174.5 177.8 178.9 178.3 180.5 182.1 183.2 183.0 28 Industrial...................................... 6.77 157.0 155.2 154.8 154.5 154.2 154.4 157.1 160.7 163.8 165.2 167.3 168.6 170.0 170.1 29 Building and mining.............. 1.44 241.3 241.0 244.4 243.6 243.4 244.3 250.1 255.7 265.9 272.2 279.6 285.4 289.2 289.4 30 Manufacturing........................ 3.85 128.5 126.1 126.0 124.4 123.9 123.9 126.4 130.6 131.1 131.0 132.0 131.9 133.1 133.3 31 Power........................................ 1.47 149.0 147.1 142.0 145.9 146.1 146.1 146.0 146.1 149.1 149.9 149.3 149.9 149.7 149.4 32 Commercial transit, farm.......... 5.86 192.1 186.7 187.8 188.4 189.4 192.8 194.7 197.6 196.3 193.4 195.9 197.6 198.5 197.9 33 Commercial.............................. 3.26 237.5 228.8 229.0 233.6 237.2 242.0 244.0 248.3 249.6 250.9 253.4 254.4 256.0 255.7 34 Transit...................................... 1.93 139.4 138.0 140.9 138.4 133.8 135.0 136.6 137.9 131.7 122.9 126.6 129.4 130.6 129.8 35 Farm.......................................... 67 123.2 121.6 122.5 112.7 116.8 120.2 121.9 123.1 122.9 116.4 115.3 117.9 114.5 36 Defense and space.......................... 7.51 97.8 96.8 97.2 96.9 97.4 98.5 99.8 100.7 101.0 100.2 100.5 100.8 100.9 100.9 Intermediate products 37 Construction supplies.................... 6.42 140.7 128.5 128.6 133.1 137.4 140.5 142.8 144.6 147.4 147.3 147.6 146.9 146.4 144.4 38 Business supplies............................ 6.47 162.9 158.4 160.4 161.9 163.6 164.3 164.2 167.5 168.0 166.5 164.8 164.8 164.2 39 Commercial energy products... 1.14 173.6 168.7 172.1 173.7 175.2 174.6 174.0 179.4 178.3 175.0 174.4 174.1 174.2 Materials 40 Durable goods materials................ 20.35 143.1 133.8 129.0 131.3 134.2 140.4 146.6 148.4 150.2 150.7 152.4 152.4 153.7 152.7 41 Durable consumer parts............ 4.58 109.0 96.0 93.9 98.1 104.2 110.8 115.5 116.3 116.2 115.9 119.9 121.9 123.0 123.3 42 Equipment parts........................ 5.44 187.3 182.5 177.6 176.3 176.0 178.5 184.0 185.8 189.2 188.9 191.5 192.1 194.6 194.1 43 Durable materials n.e.c.............. 10.34 135.0 125.0 118.9 122.4 125.4 133.4 140.6 142.9 144.6 146.0 146.2 144.9 145.8 143.9 44 Basic metal materials............ 5.57 104.6 95.9 84.7 89.4 91.7 102.0 114.4 115.0 116.3 118.1 118.1 114.7 115.3 45 Nondurable goods materials........ 10.47 170.7 159.6 156.2 159.8 169.7 173.7 174.1 178.8 180.2 179.6 177.7 179.1 180.3 179.8 46 Textile, paper, and chemical materials.................................. 7.62 177.0 163.4 158.5 163.2 175.1 180.5 181.0 186.5 187.7 187.4 185.4 187.2 189.6 189.0 47 Textile materials.................... 1.85 116.0 114.0 114.4 111.0 114.7 114.9 113.0 111.8 111.9 111.1 109.9 112.3 113.1 48 Paper materials...................... 1.62 145.1 143.4 138.4 142.0 148.2 147.3 149.5 150.0 149.6 151.7 152.2 150.9 151.3 49 Chemical materials................ 4.15 216.7 193.3 186.1 194.9 212.6 222.9 223.8 234.1 236.4 235.5 232.1 235.0 238.7 50 Containers, nondurable............ 1.70 165.1 157.7 159.0 158.8 167.2 168.6 166.6 169.7 172.1 171.0 168.8 170.1 167.6 51 Nondurable materials n.e.c. ... 1.14 137.3 136.8 136.6 137.9 137.2 135.7 139.1 141.1 142.0 140.4 139.4 138.3 137.1 52 Energy materials............................ 8.48 130.0 130.4 130.4 130.0 128.4 127.2 130.9 130.5 130.2 131.3 130.7 123.3 123.4 128.4 53 Primary energy............................ 4.65 115.1 117.3 115.6 114.0 114.3 113.7 114.5 115.0 114.4 117.5 116.2 103.9 104.0 54 Converted fuel materials.......... 3.82 148.2 146.4 148.4 149.4 145.4 143.6 150.9 149.4 149.4 148.0 148.3 146.8 146.9 Supplementary groups 55 Home goods and clothing............ 9.35 133.2 129.5 125.3 128.5 128.5 132.2 135.0 133.9 134.8 133.2 133.8 133.3 133.4 132.1 56 Energy, total.................................... 12.23 138.8 138.4 139.2 139.2 138.2 136.8 139.2 139.7 139.9 139.2 138.1 133.5 133.7 137.8 57 Products........................................ 3.76 158.5 156.3 159.1 159.9 160.5 158.5 157.9 160.5 161.9 157.1 155.0 156.5 156.8 58 Materials...................................... 8.48 130.0 130.4 130.4 130.0 128.4 127.2 130.9 130.5 130.2 131.3 130.7 123.3 123.4 128.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1980 1981 Grouping c S o I d C e pro- 1 a 9 v 8 g 0 . tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. MayP June* Index (1967 == 100) Major Industry 12.05 150.4 150.1 150.1 150.5 150.5 150.2 152.8 154.0 155.2 155.2 155.8 151.7 152.2 156.1 6.36 132.9 132.9 130.6 129.6 130.5 132.1 136.0 139.3 141.1 143.3 143.5 135.8 135.9 141.3 5.69 169.9 169.3 171.8 173.8 172.7 170.4 171.5 170.3 171.0 168.5 169.4 169.4 170.5 172.5 3.88 189.7 188.7 192.4 195.4 193.9 190.3 191.5 190.3 191.1 187.4 188.7 188.5 190.0 192.9 87.95 146.6 140.3 139.1 140.6 143.4 146.4 149.1 150.6 151.1 151.0 151.7 152.3 152.9 152.2 35.97 161.1 155.3 154.7 156.9 160.3 161.8 163.3 165.0 165.2 166.1 165.5 166.2 166.4 165.9 51.98 136.6 129.9 128.3 129.4 131.7 135.8 139.3 140.6 141.4 140.7 142.2 142.6 143.6 142.7 Mining 10 .51 109.1 120.0 83.1 71.2 73.1 90.8 107.2 122.2 126.3 133.7 131.1 123.6 121.6 9 Coal............................................ 11.12 .69 146.7 150.0 149.8 154.9 148.9 145.7 151.6 155.3 150.3 158.9 151.1 75.8 76.9 124.1 10 Oil and gas extraction............ 13 4.40 133.8 133.2 134.3 133.6 134.7 135.4 137.4 139.1 141.5 142.7 144.8 146.8 147.2 148.3 14 .75 131.7 123.9 123.7 123.5 128.2 129.0 133.0 137.8 140.0 138.9 137.4 134.8 133.1 Nondurable manufactures 20 8.75 149.2 149.0 148.9 148.3 148.6 149.4 150.5 150.7 150.0 151.5 152.1 153.0 152.5 13 Tobacco products.................... 21 .67 119.8 113.9 119.6 117.4 119.1 123.1 125.1 118.8 122.9 123.1 115.8 120.7 22 2.68 136.8 133.6 132.5 132.6 133.0 133.8 135.0 133.9 133.8 135.5 134.0 135.9 135.7 15 Apparel products.................... 23 3.31 128.6 127.2 121.5 123.8 126.7 127.5 128.0 125.1 125.9 124.0 123.6 124.0 16 Paper and products.................. 26 3.21 151.0 146.2 143.6 147.1 152.3 153.0 154.4 156.8 157.2 156.7 156.9 156.7 155.6 153.6 17 Printing and publishing.......... 27 4.72 139.6 135.4 138.6 140.3 140.3 141.5 142.7 144.9 145.5 145.8 143.6 141.4 140.4 139.3 18 Chemicals and products.......... 28 7.74 206.7 191.1 190.3 197.8 206.8 209.1 212.0 218.8 219.2 220.9 219.5 220.7 222.4 19 Petroleum products.................. 29 1.79 134.9 133.0 130.5 126.7 130.5 130.1 131.2 137.5 137.3 134.3 131.4 130.4 128.9 128.8 20 Rubber and plastic products.. 30 2.24 255.8 242.9 242.5 245.9 253.1 259.2 259.6 259.2 258.2 264.0 267.9 273.8 276.0 21 Leather and products.............. 31 .86 70.1 68.5 67.8 67.7 67.2 70.2 71.2 67.8 68.9 69.4 69.1 68.8 70.0 Durable manufactures 22 Ordnance, private and government...................... 19.91 3.64 77.9 77.5 77.1 77.2 77.1 79.1 79.6 79.5 78.9 78.6 78.3 78.4 78.9 79.2 23 Lumber and products.............. 24 1.64 119.3 109.7 112.8 121.7 122.6 122.2 124.9 122.0 126.3 126.3 125.4 126.2 126.2 24 Furniture and fixtures............ 25 1.37 150.0 143.1 138.6 141.1 144.8 147.2 147.2 149.0 150.5 153.0 153.0 157.1 158.9 25 Clay, glass, stone products ... 32 2.74 146.5 134.5 134.2 135.7 141.4 145.2 147.8 151.4 154.9 154.8 152.4 152.4 151.6 26 Primary metals.......................... 33 6.57 101.6 90.4 81.7 86.0 90.1 100.6 113.4 112.1 113.9 114.2 114.3 112.1 112.2 109.8 27 Iron and steel........................ 331.2 4.21 91.7 75.4 68.1 75.3 79.8 93.3 107.4 103.5 108.0 107.8 107.3 105.5 105.9 28 Fabricated metal products----- 34 5.93 135.0 126.1 123.8 125.8 129.0 132.8 134.1 137.4 137.6 139.1 141.3 141.0 141.0 140.4 29 Nonelectrical machinery........ 35 9.15 162.8 158.3 158.5 158.8 159.1 161.1 163.4 167.5 168.9 169.1 170.7 171.5 173.2 173.5 30 Electrical machinery................ 36 8.05 172.7 166.6 165.0 166.7 167.5 170.0 173.0 174.9 177.9 174.6 177.1 178.4 179.2 177.4 31 Transportation equipment.... 37 9.27 116.8 110.0 110.7 108.3 112.9 118.8 121.7 120.6 117.3 114.9 119.4 120.2 123.3 123.2 32 Motor vehicles and parts... 371 4.50 118.8 106.7 107.9 104.4 113.4 124.2 129.0 126.3 119.2 117.5 127.4 129.7 136.1 136.5 33 Aerospace and miscella­ neous transportation equipment...................... 372-9 4.77 114.9 113.1 113.4 111.9 112.3 113.6 114.8 115.2 115.5 112.5 111.9 111.2 111.2 110.5 34 Instruments.............................. 38 2.11 171.0 169.2 167.5 167.6 167.4 169.6 169.9 172.1 174.0 171.3 169.9 170.0 170.6 169.5 35 Miscellaneous manufactures .. 39 1.51 147.8 43.7 144.7 144.2 142.8 145.0 147.5 149.5 151.8 153.6 154.9 156.0 153.5 152.5 Gross value (billions of 1972 dollars, annual rates) Major Market 36 Products, total........................ 507.4 602.1 585.0 586.7 585.9 593.3 604.7 610.9 615.5 614.0 612.0 617.8 617.4 620.1 618.4 37 Final.......................................... 390.9 465.4 455.6 456.9 453.0 458.0 467.7 473.0 475.5 472.6 470.4 476.7 477.8 480.9 480.3 38 Consumer goods.................. 277.5 313.5 305.8 307.7 305.1 309.0 316.6 320.0 320.3 317.2 316.5 320.4 321.4 323.2 322.7 39 Equipment............................ 113.4 151.9 149.8 149.2 147.9 149.0 151.1 153.0 155.2 155.4 154.0 156.3 156.4 157.7 157 6 40 Intermediate............................. 116.6 136.7 129.4 129.9 132.9 135.3 137.1 137.9 140.0 141.5 141.5 141.2 139.6 139.1 138.1 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 □ July 1981 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1981 Item Oct. Nov. Dec. Jan. Feb. Apr. May Private residential real estate activity (thousands of units) New Units 1 Permits authorized.............................. 1,801 1,552 1,191' 1,351' 1,366' 1,249' 1,214' 1,165 1,153 1,186' 1,182' 2 1-family.............................................. 1,183 981 710' 820' 809' 753' 715' 677 678 689' 655' 3 2-or-more-family.............................. 618 571' 481' 531' 557' 496' 499' 488 475 497' 528' 4 Started.................................................... 2,020 1,745 1,292 1,519 1,550 1,535 1,660 1,215 1,297' 1,340' 1,152' 5 1-family.............................................. 1,433 1,194 852 1,009 1,019 974 993 791 838' 900' 753' 6 2-or-more-family.............................. 587 551 440 510 531 561 667 424 459' 440' 399' 7 Under construction, end of period1.. 1,310 1,140 896' 886 905 915 940' 938' 924' 916' 8 1-family................................................... 765 639 515 514 529 535 544 541' 533' 531' 9 2-or-more-family................................. 546 501 382' 373' 376 381' 397' 397' 390' 386' 10 Completed............................................ 1,868 1,855 1.502' 1,287 1.274 1,373 1,252' 1,389' 1,354' 1,449' 11 1-family................................................... 1,369 1,286 957' 823 819 895 903' 965' 872' 932' 12 2-or-more-family.............................. 498' 569' 545 464 455 478 349' 424' 482' 567' 13 Mobile homes shipped........................ 233 256 255 265 Merchant builder activity in 1-family units 14 Number sold........................................ 818 709 530 549 560 514 523' 500' 507' 436' 504 15 Number for sale, end of period1 .... 419 402 340' 334 337 336 329' 334' 325' 329 326 Price (thousands of dollars)2 Median 16 Units sold.......................................... 55.8 62.7 64.9 66.1 67.1 67.2 67.9 65.8' 67.1' 69.0' 72.6 Average 17 Units sold.......................................... 62.7 71.9 76.6 77.7 82.2 81.5 80.2' 80.1' 81.0' 83.4' 83.9 Existing Units (1-family) 18 Number sold........................................ 3,863 3,701 2,881 3,120 2.960 2,910 2,580 2,560 2,490 2,610' Price of units sold (thous. of dollars)2 19 Median.................................................. 48.7 55.5 62.1 62.7 64.3 63.0 64.5 64.1 64.4 65.3' 66.4 20 Average................................................ 55.1 64.0 72.7 73.4 74.9 74.0 76.1 75.7 76.2 77.3 78.6 Value of new construction3 (millions of dollars)' Construction 21 Total put in place............................. 205,559 230,781 230,273 228,932 234,275 245,433 259,049 254,458 250,274 248,948 237,322 22 Private.............................................. 159,664 181,690 174,896 174,913 180.882 187,875 193,877 193,155 189,641 192,509 186,500 23 Residential.................................. 93.423 99,032 87.260 89,826 95.617 98,898 100,686 99,684 96,266 98,330 94,115 24 Nonresidential, total.................. 66,241 82,658 87.636 85,087 85,265 88,977 93,191 93,471 93,375 94,179 92,385 Buildings 25 Industrial............................ 10,993 14,953 13,839 12,449 12,916 14,293 15,339 15,094 15,380 15,504 14,876 26 Commercial........................ 18,561 24,919 29,940 29,086 29,572 30,763 32,955 33,379 33,307 33,395 31,544 27 Other.................................... 6,739 7,427 8.654 8,786 8.961 9,268 9,891 9,938 9,588 9,196 8,947 28 Public utilities and other 29,948 35,359 35,203 34,766 33,816 34,653 35,006 35,060 35,100 36,084 37,018 29 Public.............................................. 45,896 49,090 55,375 54,018 53,393 57.558 65,173 61,302 60,633 56,439 50,822 30 Military........................................ 1,501 1,648 1.880 2,025 1.770 1.743 1,810 2,173 1,685 1,915 1,749 31 Highway...................................... 10,708 11,998 13,784 12,963 12.786 13,127 19,882 17,812 15,515 14,144 n.a. 32 Conservation and development 4,457 4,586 5,089 4,885 5.177 5,383 6,242 6,197 6,018 5,688 n.a. 33 Other............................................ 29,230 30,858 34,622 34,145 33.660 37,305 37,239 35,120 37,415 34,692 n.a. 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 and 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 May Item 1980 1981 1981 1981 1980 1981 (1967 May May =100)1 June Sept. Dec. Mar. Jan. Feb. Mar. Apr. May Consumer Prices2 1 All items................................................................. 14.4 9.8 11.4 7.8 13.2 9.6 .7 1.0 .6 .4 .7 269.0 2 Commodities.................................................. 12.4 8.9 5.4 13.2 11.0 8.9' .6 1.1 .5 .0 .2 251.9 3 Food ............................................................ 6.9 8.8 5.8 19.7 13.1 2.1 -.1 .3 .4 .0 -.2 272.5 4 Commodities less food.............................. 14.9 8.8 5.2 10.6 9.9 12.3 1.0 1.4 .5 .0 .4 239.6 5 Durable.................................................... 9.5 8.1 7.5 15.2 11.8 -.7 .3 -.3 -.1 .3 .9 223.9 6 Nondurable............................................ 21.9 9.6 3.8 5.0 6.2 29.8 2.1 3.2 1.3 -.2 -.2 258.2 7 Services............................................................ 17.3 11.3 20.5 .7 16.8 10.3 .9 .8 .8 1.0 1.4 299.6 8 Rent.............................................................. 8.7 9.0 10.0 8.6 9.6 7.0 .7 .5 .5 .6 .8 205.9 9 Services less rent........................................ 18.6 11.6 22.1 -.3 17.8 10.9 .9 .9 .8 1.0 1.5 317.4 Other groupings 10 All items less food........................................ 16.1 10.1 12.7 5.7 13.2 11.7 1.0 1.1 .7 .5 .9 267.0 11 All items less food and energy.................... 13.2 9.5 14.0 5.8 14.4 5.8 .6 .4 .4 .6 1.1 253.0 12 Homeownership............................................ 22.8 10.3 26.4 -3.5 23.1 3.1 .5 .0 .3 .7 1.7 345.0 Producer Prices 13 Finished goods................................................ 13.5 10.5 8.4 13.5 8.3 12.0 1.2' .8' .9' .8 .4 268.9 14 Consumer.................................................... 14.5 10.4 7.6 14.5 7.4 12.1 1.2' .7' 1.0' .8 .2 270.6 15 Foods........................................................ 2.5 8.7 -1.4 31.0 4.3 .3 .1 -.6' .6' .0 .0 252.0 16 Excluding foods...................................... 20.9 10.9 12.2 7.5 8.9 17.4 1.6' 1.3' 1.2' 1.1 .3 276.1 17 Capital equipment...................................... 10.2 10.9 10.9 9.9 11.8 11.5 1.2' .9 .6' .9 .9 262.6 18 Intermediate materials3................................ 16.7 11.1 6.2 7.8 12.9 13.2 1.4 .6' 1.1' 1.1 .6 310.5 Crude materials 19 Nonfood...................................................... 20.6 26.1 .2 32.3 27.5 35.7 2.0 7.0' -1.1' 1.4 1.5 488.6 20 Food ............................................................ -4.1 7.2 -.3 73.9 -4.0 -23.1 -1.1 -3.3 -2.0 1.5 -2.2 260.6 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 □ July 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 2,853.0 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 1,810.0 3 Durable goods...................................................................................... 199.3 212.3 211.9 220.9 194.4 208.8 223.3 238.3 4 Nondurable goods................................................................................ 529.8 602.2 675.7 661.1 664.0 674.2 703.5 726.0 5 Services.................................................................................................. 619.6 696.3 785.2 749.0 768.4 799.2 824.2 845.8 6 Gross private domestic investment...................................................... 375.3 415.8 395.3 415.6 390.9 377.1 397.7 437.1 7 Fixed investment.................................................................................. 353.2 398.3 401.2 413.1 383.5 393.2 415.1 432.7 8 Nonresidential.................................................................................. 242.0 279.7 296.0 297.8 289.8 294.0 302.1 315.9 9 Structures...................................................................................... 78.7 96.3 108.8 108.2 108.4 107.3 111.5 117.2 10 Producers’ durable equipment.................................................. 163.3 183.4 187.1 189.7 181.4 186.8 190.7 198.7 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 94.5 107.6 111.4 13 Change in business inventories.......................................................... 22.2 17.5 -5.9 2.5 7.4 -16.0 -17.4 4.5 14 Nonfarm............................................................................................ 21.8 13.4 -4.7 1.5 6.1 -12.3 -14.0 6.8 15 Net exports of goods and services........................................................ -0.6 13.4 23.3 8.2 17.1 44.5 23.3 29.2 16 Exports.................................................................................................. 219.8 281.3 339.8 337.3 333.3 342.4 346.1 367.4 17 Imports.................................................................................................. 220.4 267.9 316.5 329.1 316.2 297.9 322.7 338.2 18 Government purchases of goods and services.................................... 432.6 473.8 534.7 516.8 530.0 533.5 558.6 576.5 19 Federal.................................................................................................. 153.4 167.9 198.9 190.0 198.7 194.9 212.0 221.6 20 State and local...................................................................................... 279.2 305.9 335.8 326.8 331.3 338.6 346.6 354.9 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 2,848.5 22 Goods.................................................................................................... 946.6 1,055.9 1,130.4 1,116.9 1,106.4 1,129.4 1,169.0 1,247.5 23 Durable.............................................................................................. 409.8 451.2 458.6 456.4 444.6 456.5 476.7 501.4 24 Nondurable...................................................................................... 536.8 604.7 671.9 660.5 661.8 672.9 692.2 746.1 25 Services.................................................................................................. 976.3 1,097.2 1,229.6 1,178.6 1,205.6 1,249.0 1,285.3 1,317.1 26 Structures.............................................................................................. 233.2 260.8 266.0 276.2 252.8 258.9 276.4 288.4 27 Change in business inventories.............................................................. 22.2 17.5 -5.9 2.5 7.4 -16.0 -17.4 4.5 28 Durable goods...................................................................................... 17.8 11.5 -4.0 -11.8 3.3 -8.4 .7 -4.2 29 Nondurable goods................................................................................ 4.4 6.0 -1.8 14.3 4.1 -7.7 -18.1 8.6 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 2,291.1 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 1,722.4 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 1,442.9 34 Government and government enterprises.................................... 219.6 235.9 253.6 243.3 250.5 253.9 263.3 267.1 35 Other.................................................................................................. 885.7 1,000.0 1,090.0 1,067.9 1,069.9 1,088.4 1,134.0 1,175.7 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.............................. 92.1 106.4 115.8 112.6 113.6 116.0 121.0 131.5 38 Other labor income........................................................................ 102.2 118.6 137.1 130.9 135.1 139.1 143.5 148.0 39 Proprietors’ income1................................................................................ 117.1 131.6 130.6 133.7 124.9 129.7 134.0 132.1 40 Business and professional1................................................................ 91.0 100.7 107.2 107.9 101.6 107.6 111.6 113.2 41 Farm1.................................................................................................... 26.1 30.8 23.4 25.7 23.3 22.1 22.5 18.9 42 Rental income of persons2.................................................................... 27.4 30.5 31.8 31.2 31.5 32.0 32.4 32.7 43 Corporate profits1.................................................................................... 199.0 196.8 182.7 200.2 169.3 177.9 183.3 203.0 44 Profits before tax3................................................................................ 223.3 255.4 245.5 277.1 217.9 237.6 249.5 259.1 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.............................................................................................. 115.8 143.4 179.8 165.4 175.3 185.3 193.3 200.8 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 current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1980 1981 Account 1978 1979 1980 Ql Q2 Q3 Q4 Qlr Personal Income and Saving 1 Total personal income......................................................................... 1,721.8 1,943.8 2,160.2 2,088.2 2,114.5 2,182.1 2,256.2 2,319.8 2 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 1,442.9 3 Commodity-producing industries............................................................ 389.1 437.9 465.4 461.7 456.0 460.1 484.0 501.3 4 Manufacturing........................................................................................... 299.2 333.4 350.7 347.9 343.2 346.7 364.0 377.4 5 Distributive industries................................................................................ 270.5 303.0 328.9 322.6 323.2 329.2 340.6 351.9 6 Service industries......................................................................................... 226.1 259.2 295.7 283.6 290.8 298.7 310.0 322.5 7 Government and government enterprises............................................ 219.4 236.1 253.6 246.8 250.5 253.9 263.3 267.1 8 Other labor income......................................................................................... 102.2 118.6 137.1 130.9 135.1 139.1 143.5 148.0 9 Proprietors’ income i......................................................................................... 117.2 131.6 130.6 133.7 124.9 129.7 134.0 132.1 10 Business and professional!....................................................................... 91.0 100.8 107.2 107.9 101.6 107.6 111.6 113.2 11 Farm1............................................................................................................... 26.1 30.8 23.4 25.7 23.3 22.1 22.5 18.9 12 Rental income of persons2............................................................................ 27.4 30.5 31.8 31.2 31.5 32.0 32.4 32.7 13 Dividends............................................................................................................. 43.1 48.6 54.4 52.4 54.2 55.1 56.1 58.0 14 Personal interest income................................................................................ 173.2 209.6 256.3 239.9 253.6 261.8 269.7 288.7 15 Transfer payments........................................................................................... 223.3 249.4 294.2 271.7 280.7 310.7 313.9 319.6 16 Old-age survivors, disability, and health insurance benefits......... 116.2 131.8 153.8 142.0 144.7 163.2 165.3 169.8 17 Less: Personal contributions for social insurance............................. 69.6 80.6 87.9 86.2 85.9 88.1 91.2 102.3 18 Equals: Personal income.............................................................................. 1,721.8 1,943.8 2,160.2 2,088.2 2,114.5 2,182.1 2,256.2 2,319.8 19 Less: Personal tax and nontax payments............................................ 258.8 302.0 338.5 323.1 330.3 341.5 359.2 372.0 20 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 1,947.8 21 Less: Personal outlays................................................................................ 1,386.6 1,555.5 1,720.4 1,678.7 1,674.1 1,729.2 1,799.4 1,858.9 22 Equals: Personal saving................................................................................ 76.3 86.2 101.3 86.4 110.0 111.4 97.6 88.9 Memo: Per capita (1972 dollars) 23 Gross national product................................................................................ 6,568 6,721 6,646 6,768 6,580 6,597 6,641 6,764 24 Personal consumption expenditures....................................................... 4,136 4,219 4,196 4,251 4,134 4,172 4,232 4,283 25 Disposable personal income..................................................................... 4,487 4,584 4,571 4,600 4,532 4,565 4,585 4,609 26 Saving rate (percent)....................................................................................... 5.2 5.2 5.6 4.9 6.2 6.1 5.1 4.6 Gross Saving 27 Gross saving........................................................................................ 355.2 412.0 401.9 404.5 394.5 402.0 406.7 442.7 28 Gross private saving......................................................................................... 355.4 398.9 432.9 413.0 435.9 446.5 436.4 447.7 29 Personal saving.................................................................................................. 76.3 86.2 101.3 86.4 110.0 111.4 97.6 88.9 30 Undistributed corporate profitsi................................................................ 57.9 59.1 44.3 52.1 42.1 42.8 40.4 52.3 31 Corporate inventory valuation adjustment............................................... -24.3 -42.6 -45.7 -61.4 -31.1 -41.7 -48.4 -39.2 Capital consumption allowances 32 Corporate............................................................................................................. 136.4 155.4 175.4 167.1 173.0 178.4 183.2 187.5 33 Noncorporate...................................................................................................... 84.8 98.2 111.8 107.4 110.7 113.4 115.8 119.0 34 Wage accruals less disbursements.............................................................. .0 .0 .0 .0 .0 .5 -.5 .0 35 Government surplus, or deficit ( —), national income and product accounts...................................................................................................... -0.2 11.9 -32.1 1.7 -29.6 -45.6 -30.8 -6.2 36 Federal............................................................................................................. -29.2 -14.8 -61.2 -36.3 -66.5 -74.2 -67.9 -43.3 37 State and local................................................................................................ 29.0 26.7 29.1 26.6 23.9 28.6 37.1 37.0 38 Capital grants received by the United States, net................................. .0 1.1 1.1 1.1 1.1 1.1 1.1 1.2 39 Gross investment................................................................................. 361.6 414.1 401.2 407.3 392.5 405.0 400.1 446.0 40 Gross private domestic..................................................................................... 375.3 415.8 395.3 415.6 390.9 377.1 397.7 437.1 41 Net foreign........................................................................................................... -13.8 -1.7 5.9 -8.3 1.7 27.8 2.3 8.9 42 Statistical discrepancy......................................................................... 6.4 2.2 -.7 2.8 -1.9 3.0 -6.6 3.4 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 □ July 1981 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1980' 1981 Item credits or debits 1978 1979' 1980 Ql Q2 Q3 Q4 Ql p 1 Balance on current account........................................................ -14,075' 1,414 3,723 -2,095 -545 4,975 1,390 3,087 2 Not seasonally adjusted.......................................................... -1,575 905 1,149 3,244 3,368 3 Merchandise trade balance2.................................................... -33,759 -27,346 -25,342 -10,126 -6,744 -2,902 -5,570 -4,602 4 Merchandise exports........................................................... 142,054 184,473 223,966 54,898 55,667 56,252 57,149 61,117 5 Merchandise imports............................................................ -175,813 -211,819 -249,308 -65,024 -62,411 -59,154 -62,719 -65,719 6 Military transactions, net........................................................ 738' -1,947 -2,515 -918 -427 -455 -715 -701 7 Investment income, net3.......................................................... 21,400' 33,462 32,762 9,836 6,518 8,154 8,257 8,869 8 Other service transactions, net.............................................. 2,613' 2,839 5,874 991 1,440 1,681 1,762 1,033 9 Remittances, pensions, and other transfers........................ -1,884 -2,057 -2,397 -542 -545 -591 -720 -562 10 U.S. government grants (excluding military)...................... -3,183' -3,536 -4,659 -1,336 -787 -912 -1,624 -950 11 Change in U.S. government assets, other than official re­ serve assets, net (increase, -).......................................... -4,644 -3,767 -5,165 -1,456 -1,187 -1,427 -1,094 -1,358 12 Change in U.S. official reserve assets (increase, - ) ............ 732 -1,132 -8,155 -3,268 -502 -1,109 -4,279 -4,529 13 Gold............................................................................................ -65 -65 0 0 0 0 0 0 14 Special drawing rights (SDRs).............................................. 1,249 -1,136 -16 -1,152 -112 -261 1,285 -1,441 15 Reserve position in International Monetary Fund.............. 4,231 -189 -1,667 -34 -99 -294 -1,240 -707 16 Foreign currencies.................................................................... -4,683 257 -6,472 -2,082 489 -554 -4,324 -2,381 17 Change in U.S. private assets abroad (increase, -)3............ -57,158' -57,739 -71,456 -7,915 -24,152 -16,766 -22,622 -12,633 18 Bank-reported claims.............................................................. -33,667' -26,213 -46,947 -1,203 -20,165 -12,440 -13,139 -11,163 19 Nonbank-reported claims........................................................ -3,853 -3,026 -2,653 -1,083 92 343 -2,005 n.a. 20 U.S. purchase of foreign securities, net.............................. -3,582' -4,552 -3,310 -766 -1,369 -818 -356 -488 21 U.S. direct investments abroad, net3.................................... -16,056' -23,948 -18,546 -4,863 -2,710 -3,851 -7,122 -982 22 Change in foreign official assets in the United States (increase, + )........................................................................ 33,561' -13,757 15,492 -7,462 -7,557 7,686 7,712 5,384 23 U.S. Treasury securities.......................................................... 23,555' -22,435 9,683 -5,357 -4,360 3,769 6,911 7,055 24 Other U.S. government obligations...................................... 666 463 2,187 801 250 549 587 454 25 Other U.S. government liabilities4........................................ 2,359' -133 636 -68 420 80 205 55 26 Other U.S. liabilities reported by U.S. banks.................... 5,551' 7,213 -159 -3,198 -1,676 1,823 -460 -3,009 27 Other foreign official assets5.................................................. 1,4530' 1,135 3,145 360 851 1,465 469 829 28 Change in foreign private assets in the United States (increase, +)3...................................................................... 30,187' 52,703 34,769 14,971 -326 3,965 16,157 2,157 29 U.S. bank-reported liabilities................................................ 16,141' 32,607 10,743 6,599 -4,509 916 7,737 -3,662 30 U.S. nonbank-reported liabilities.......................................... 1,717' 2,065 5,109 416 1,092 373 3,228 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,178' 4,820 2,679 3,300 -1,260 -254 893 1,405 32 Foreign purchases of other U.S. securities, net.................. 2,254' 1,334 5,384 2,435 468 241 2,240 2,449 33 Foreign direct investments in the United States, net3 .... 7,896 11,877 10,853 2,221 3,883 2,689 2,059 1,965 34 Allocation of SDRs...................................................................... 0 1,139 1,152 1,152 0 0 0 1,093 35 Discrepancy.................................................................................. 11,398' 21,140 29,640 6,073 18,151 2,676 2,736 6,799 36 Owing to seasonal adjustments.............................................. -206 1,355 -3,291 2,139 -344 37 Statistical discrepancy in recorded data before seasonal adjustment........................................................................ 11,398 21,140 29,640 6,279 16,796 5,967 597 7,143 Memo: Changes in official assets 38 U.S. official reserve assets (increase, -)............................ 732 -1,132 -8,155 -3,268 502 -1,109 -4,279 -4,529 39 Foreign official assets in the United States (increase, +).................................................................... 31,202 -13,624 14,856 -7,394 7,137 7,606 7,507 5,329 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) .................................................................................... -1,137 5,543 12,744 2,988 4,617 4,115 1,024 5,188 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above).................................................... 236 305 635 144 155 125 211 193 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 Assets A53 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1980 1981 Item 1978 1979 1980 Nov. Dec. Jan. Feb. Mar Apr. May 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments............................................ 143,682 181,860 220,684 18,715 19,251 18,825 19,764 21,434 19,818 18,869 2 GENERAL IMPORTS including mer­ chandise for immediate consump­ tion plus entries into bonded warehouses.......................................... 174,759 209,458 245,010 19,860 21,436 23,194 21,922 20,949 22,289 21,310 3 Trade balance......................................... -31,075 -27,598 -24,326 -1,145 -2,185 -4,369 -2,158 485 -2,471 -2,441 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 1 Total*...................................................... 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 19/4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics □ July 1981 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1980 1981 Asset account 1977 19781 1979 Oct. Nov. Dec. Jan. Feb. Mar. Apr .p All foreign countries 1 Total, all currencies................................ 258,897 306,795 364,233 383,356 389,184 397,233 397,167r 401,050r 409,891 409,275 2 Claims on United States.......................... 11,623 17,340 32,302 30,476 30,617 28,459 29,522r 32,008' 30,256 34,514 3 Parent bank............................................ 7,806 12,811 25,929 21,440 22,254 20,202 20,662' 21,454' 18,781 23,091 4 Other........................................................ 3,817 4,529 6,373 9,036 8,363 8,257 8,860' 10,554' 11,475 11,423 5 Claims on foreigners.................................. 238,848 278,135 317,175 335,623 340,848 350,993 349,920' 350,973' 361,229 356,365 6 Other branches of parent bank.......... 55,772 70,338 79,661 72,477 74,062 76,552 75,609' 75,510' 77,603 76,988 7 Banks...................................................... 91,883 103,111 123,413 138,296 139,977 144,627 144,753' 146,152' 150,596 146,800 8 Public borrowers2.................................. 14,634 23,737 26,072 26,548 26,935 27,626 21,129 r 28,068' 28,727 28,090 9 Nonbank foreigners.............................. 76,560 80,949 88,029 98,302 99,874 102,188 101,829' 101,243' 104,303 104,487 10 Other assets................................................ 8,425 11,320 14,756 17,257 17,719 17,781 17,725' 18,069' 18,406 18,396 11 Total payable in U.S. dollars................... 193,764 224,940 267,711 279,827 284,401 289,860 292,524r 296,913r 302,667 306,290 12 Claims on United States.......................... 11,049 16,382 31,171 29,059 29,173 27,190 28,266' 30,754' 29,063 33,301 13 Parent bank............................................ 7,692 12,625 25,632 21,043 21,853 19,896 20,370' 21,201' 18,566 22,844 14 Other........................................................ 3,357 3,757 5,539 8,016 7,320 7,294 7,896' 9,553' 10,497 10,457 15 Claims on foreigners.................................. 178,896 203,498 229,118 242,152 246,363 253,451 254,721' 256,234' 263,468 262,488 16 Other branches of parent bank.......... 44,256 55,408 61,525 55,249 57,238 58,273 58,836' 57,922' 59,850 59,618 17 Banks...................................................... 70,786 78,686 96,261 109,438 110,799 115,984 116,900' 118,392' 121,475 119,583 18 Public borrowers2.................................. 12,632 19,567 21,629 22,578 22,846 23,398 23,208' 23,500' 24,004 23,739 19 Nonbank foreigners.............................. 51,222 49,837 49,703 54,887 55,480 55,796 55,777' 56,420' 58,139 59,548 20 Other assets................................................ 3,820 5,060 7,422 8,616 8,865 9,219 9,537' 9,925' 10,136 10,501 United Kingdom 21 Total, all currencies................................ 90,933 106,593 130,873 138,158 140,715 142,781 143,609 144,793 145,459 142,599 22 Claims on United States.......................... 4,341 5,370 11,117 8,216 8,771 7,508 7,727 9,211 9,413 8,518 23 Parent bank............................................ 3,518 4,448 9,338 5,969 6,552 5,275 5,278 6,471 6,405 5,766 24 Other........................................................ 823 922 1,779 2,247 2,219 2,233 2,449 2,740 3,008 2,752 25 Claims on foreigners............................ 84,016 98,137 115,123 123,854 125,859 129,232 130,174 129,646 129,992 128,095 26 Other branches of parent bank .......... 22,017 27,830 34,291 31,431 32,267 34,538 35,136 35,406 34,583 34,614 27 Banks................................................ 39,899 45,013 51,343 56,723 57,423 57,658 58,489 58,554 58,714 56,816 28 Public borrowers2.................................. 2,206 4,522 4,919 6,113 6,405 6,684 6,620 6,626 6,929 6,844 29 Nonbank foreigners.............................. 19,895 20,772 24,570 29,587 29,764 30,352 29,929 29,060 29,766 29,821 30 Other assets................................................ 2,576 3,086 4,633 6,088 6,085 6,041 5,708 5,936 6,054 5,986 31 Total payable in U.S. dollars................... 66,635 75,860 94,287 95,287 97,246 98,913 101,038 103,048 102,933 101,523 32 Claims on United States.......................... 4,100 5,113 10,746 7,647 8,233 7,115 7,304 8,765 9,001 8,080 33 Parent bank............................................ 3,431 4,386 9,297 5,817 6,410 5,229 5,221 6,418 6,381 5,715 34 Other........................................................ 669 727 1,449c 1,830 1,823 1,886 2,083 2,347 2,620 2,365 35 Claims on foreigners.................................. 61,408 69,416 81,294 84,849 86,246 88,950 90,682 91,204 90,696 90,199 36 Other branches of parent bank.......... 18,947 22,838 28,928 25,593 26,710 28,231 28,768 28,946 28,132 28,393 37 Banks...................................................... 28,530 31,482 36,760 40,312 40,542 41,373 42,887 42,751 42,609 41,767 38 Public borrowers2.................................. 1,669 3,317 3,319 4,551 4,706 4,909 4,816 4,930 5,168 5,093 39 Nonbank foreigners.............................. 12,263 11,779 12,287 14,393 14,288 14,437 14,211 14,577 14,787 14,946 40 Other assets................................................ 1,126 1,331 2,247 2,791 2,767 2,848 3,052 3,079 3,236 3,244 Bahamas and Caymans 41 Total, all currencies................................ 79,052 91,735 108,977 119,524 119,367 123,837 123,460 124,809 127,801 132,137 42 Claims on United States.......................... 5,782 9,635 19,124 19,656 18,325 17,751 18,370 19,150 17,348 22,473 43 Parent bank............................................ 3,051 6,429 15,196 13,837 13,071 12,631 12,842 12,417 10,017 14,913 44 Other........................................................ 2,731 3,206 3,928 5,819 5,254 5,120 5,528 6,733 7,331 7,560 45 Claims on foreigners.................................. 71,671 79,774 86,718 95,959 96,800 101,926 100,792 101,199 105,970 105,075 46 Other branches of parent bank.......... 11,120 12,904 9,689 13,076 13,118 13,315 12,956 11,998 14,002 13,526 47 Banks...................................................... 27,939 33,677 43,189 49,900 50,626 54,888 54,252 55,280 57,065 56,489 48 Public borrowers2.................................. 9,109 11,514 12,905 12,441 12,213 12,577 12,558 12,605 12,579 12,205 49 Nonbank foreigners.............................. 23,503 21,679 20,935 20,542 20,843 21,146 21,026 21,316 22,324 22,855 50 Other assets................................................ 1,599 2,326 3,135 3,909 4,242 4,160 4,298 4,460 4,483 4,589 51 Total payable in U.S. dollars................... 73,987 85,417 102,368 113,683 113,560 117,654 117,549 119,007 121,900 126,503 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr.p All foreign countries 52 Total, all currencies................................ 285,897 306,795 364,233 383,356 389,184 397,233 397,167r 401,050' 409,891 409,275 53 To United States........................................ 44,154 58,012 66,686 84,161 86,589 90,942 92,362' 90,685' 97,674 105,761 54 Parent bank............................................ 24,542 28,654 24,530 37,184 36,956 39,135 38,653' 36,373' 43,023 45,335 5 5 5 6 N O o th n e b r a b n a k n s k .. s .. . i . n .. .. U ... n .. i . t . e .. d ... . S ... t . a .. t .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,613 1 1 2 7 , , 1 1 6 8 9 9 2 1 8 3 , , 1 9 8 6 8 8 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 47 8 3 9 4 1 0 3 , , 1 5 1 9 8 1' 4 1 0 3 , , 3 9 2 8 4 8 4 1 0 4 , , 2 3 7 7 9 2 4 1 4 5 , , 9 4 5 7 5 1 57 To foreigners.............................................. 206,579 238,912 283,344 285,366 288,385 291,780 290,527' 296,445' 297,801 288,733 58 Other branches of parent bank.......... 53,244 67,496 77,601 69,776^ 71,554 73,938 73,003' 73,710' 75,138 74,416 59 Banks...................................................... 94,140 97,711 122,849 132,195 132,281 130,654 132,859' 134,835' 133,715 127,551 60 Official institutions................................ 28,110 31,936 35,664 30,722 31,145 32,440 28,938' 28,609' 29,871 28,026 61 Nonbank foreigners.............................. 31,085 41,769 47,230 52,673 53,405 54,748 55,727' 58,291' 59,077 58,740 62 Other liabilities.......................................... 8,163 9,871 14,203 13,829 14,210 14,556 14,278' 13,920' 14,416 14,781 63 Total payable in U.S. dollars.................... 198,572 230,810 273,819 287,318 292,549 300,988 303,223' 307,530 r 313,427 317,651 64 To United States........................................ 42,881 55,811 64,530 81,255 83,764 88,123 89,756' 88,267' 95,263 103,329 65 Parent bank............................................ 24,213 27,519 23,403 35,419 35,233 37,496 37,018' 34,897' 41,512 43,876 6 67 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 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,669 1 1 1 6 , , 9 3 1 7 5 7 2 1 7 3 , , 3 77 5 1 6 3 1 3 2 , , 2 59 4 3 3 3 1 5 3 , , 4 1 0 2 7 4 3 1 6 4 , , 4 2 2 03 4 3 1 9 3 , , 3 4 2 1 1 7' 3 1 9 3 , , 6 7 1 5 3 7 3 1 9 4 , , 5 2 1 3 6 5 4 1 4 5 , , 1 2 5 9 5 8 68 To foreigners.............................................. 151,363 169,927 201,476 198,682 200,937 204,697 205,200' 210,690 209,280 204,789 69 Other branches of parent bank.......... 43,268 53,396 60,513 53,780 55,599 56,965 56,894' 56,895' 58.328 58,044 70 Banks...................................................... 64,872 63,000 80,691 86,994 86,556 86,596 89,405' 91,654' 87,521 85,278 71 Official institutions................................ 23,972 26,404 29,048 23,373 23,870 24,691 21,861' 21,911' 23,102 21,444 72 Nonbank foreigners.............................. 19,251 27,127 31,224 34,535 34,912 36,445 37,040' 40,230' 40.329 40,023 73 Other liabilities.......................................... 4,328 5,072 7,813 7,381 7,848 8,168 8,267' 8,573' 8,884 9,533 United Kingdom 74 Total, all currencies.................................. 90,933 106,593 130,873 138,158 140,715 142,781 143,609 144,793 145,459 142,599 75 To United States........................................ 7,753 9,730 20,986 19,157 20,594 21,735 23,226 22,783 24,374 26,006 76 Parent bank............................................ 1,451 1,887 3,104 2,712 3,198 4,176 4,228 3,190 4,242 4,540 7 7 7 8 N O o th n e b r a b n a k n s k .. s . .. i . n .. .. U ... n .. i . t . e .. d ... . S ... t . a .. t .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,302 4 3 , , 1 6 8 5 9 4 1 7 0 , , 6 1 9 8 3 9 1 5 0 , , 8 6 0 45 0 1 5 1 , , 7 6 3 6 2 4 1 5 1 , , 7 8 1 4 6 3 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 3 1 5 5 , , 9 5 1 51 5 79 To foreigners.............................................. 80,736 93,202 104,032 113,539 114,813 115,582 115,236 116,927 115,816 111,486 80 Other branches of parent bank.......... 9,376 12,786 12,567 13,940 13,951 13,933 13,734 13,422 13,913 13,491 81 Banks...................................................... 37,893 39,917 47,620 56,772 58,127 55,928 57,371 57,505 56,110 53,563 82 Official institutions................................ 18,318 20,963 24,202 19,807 20,437 21,412 19,199 19,607 19,743 18,385 83 Nonbank foreigners.............................. 15,149 19,536 19,643 23,020 22,298 24,309 24,932 26,393 26,050 26,047 84 Other liabilities.......................................... 2,445 3,661 5,855 5,462 5,308 5,464 5,147 5,083 5,269 5,107 85 Total payable in U.S. dollars.................... 67,573 77,030 95,449 97,055 99,135 102,300 104,123 106,448 106,637 105,864 86 To United States........................................ 7,480 9,328 20,552 18,551 19,978 21,080 22,597 22,245 23,927 25,497 87 Parent bank............................................ 1,416 1,836 3,054 2,634 3,101 4,078 4,126 3,132 4,160 4,445 8 88 9 N O o th n e b r a b n a k n s k .. s . .. i . n .. .. U ... n .. i . t .. e . d ... . S ... t . a ... t . e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,064 4 3 , , 1 3 0 9 1 1 7 9 , , 6 8 5 4 1 7 1 5 0 , , 7 2 1 0 4 3 1 5 1 , , 6 2 1 61 6 1 5 1 , , 6 3 2 7 6 6 1 5 3 , , 3 1 4 2 3 8 1 5 3 , , 7 3 5 5 7 6 1 5 4 , , 4 2 8 8 7 0 1 5 5 , , 8 2 4 1 1 1 90 To foreigners.............................................. 58,977 66,216 72,397 76,114 76,696 78,512 78,768 81,100 79,501 77,212 91 Other branches of parent bank.......... 7,505 9,635 8,446 9,891 9,770 9,600 9,591 9,184 9,297 9,168 92 Banks...................................................... 25,608 25,287 29,424 35,495 35,998 35,177 36,463 37,014 1 5 34,553 34,117 93 Official institutions................................ 15,482 17,091 20,192 15,338 15,989 17,024 14,941 15,420 15,718 14,473 94 Nonbank foreigners.............................. 10,382 14,203 14,335 15,390 14,939 16,711 17,773 19,482 19,933 19,454 95 Other liabilities.......................................... 1,116 1,486 2,500 2,390 2,461 2,708 2,758 3,103 3,209 3,155 Bahamas and Caymans % Total, all currencies................................ 79,052 91,735 108,977 119,524 119,367 123,837 123,460 124,809 127,801 132,137 97 To United States........................................ 32,176 39,431 37,719 56,123 56.860 59,666 58,928 58,607 64,031 69,576 98 Parent bank............................................ 20,956 20,482 15,267 27,666 26.861 28,181 26,563 26,222 31,746 33,034 1 9 0 9 0 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 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,220 1 6 2 , , 0 8 7 7 3 6 1 5 7 , , 2 2 0 4 4 8 2 5 2 , , 9 5 5 0 7 0 2 6 3, , 4 5 7 2 1 8 2 7 4 , , 3 1 7 0 9 6 2 7 5 , , 1 2 2 3 6 9 2 7 5 , , 1 2 6 2 5 0 2 7 4 , , 8 4 8 0 3 2 27 8 , , 9 61 2 8 4 101 To foreigners.............................................. 45,292 50,447 68,598 60,593 59,492 61,218 61,597 63,323 60,875 59,326 102 Other branches of parent bank.......... 12,816 16,094 20,875 16,720 15,878 17,040 17,819 18,781 17,436 18,150 103 Banks...................................................... 24,717 23,104 33,631 29,202 28,933 29,895 30,050 30,289 28,671 26,753 104 Official institutions................................ 3,000 4,208 4,866 4,610 4,368 4,361 4,204 3,663 4,403 4,079 105 Nonbank foreigners.............................. 4,759 7,041 9,226 10,061 10,313 9,922 9,524 10,590 10,365 10,344 106 Other liabilities.......................................... 1,584 1,857 2,660 2,808 3,015 2,953 2,935 2,879 2,895 3,235 107 Total payable in U.S. dollars.................... 74,463 87,014 103,460 115,166 115,121 119,657 119,214 120,714 123,785 128,309 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 □ July 1981 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1980 1981 Item 1978 1979 1980 Dec. Jan. Feb. Mar.^ Apr.P MayP 1 Total1........................................................................... 162,625 149,546 164,402 164,402 162,778 162,384 169,726 169,746 170,351 165,075 By type 2 Liabilities reported by banks in the United States2 . 23,326 30,540 30,381 30,381 27,008 24,864 27,366 27,386 25,729 23,657 3 U.S. Treasury bills and certificates3.......................... 67,671 47,666 56,243 56,243 56,522 56,829 60,306 60,306 61,431 57,612 U.S. Treasury bonds and notes 4 Marketable.................................................................. 35,894 37,590 41,431 41,431 42,295 43,699 44,783 44,783 45,278 45,599 5 Nonmarketable4........................................................ 20,970 17,387 14,654 14,654 14,654 14,494 14,294 14,294 14,294 14,294 6 U.S. securities other than U.S. Treasury securities5 14,764 16,363 21,693 21,693 22,299 22,498 22,977 22,977 23,619 23,913 By area 7 Western Europe1............................................................ 93,089 85,633 81,592 81,592 80,434 78,334 79,981 79,999 78,423 71,602 8 Canada ............................................................................ 2,486 1,898 1,562 1,562 1,174 1,089 1,437 1,437 1,177 1,365 9 Latin America and Caribbean.................................... 5,046 6,291 5,688 5,688 5,456 5,241 6,365 6,365 5,919 5,496 10 Asia.................................................................................. 58,854 52,827 70,608 70,608 70,557 72,667 76,702 76,705 78,806 80,559 11 Africa.............................................................................. 2,408 2,412 4,123 4,123 3,973 3,948 4,089 4,088 4,188 3,928 12 Other countries6............................................................ 742 485 829 829 1,184 1,105 1,152 1,152 1,838 2,125 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. Data in the two columns for this date differ because of changes in reporting 3. Includes nonmarketable certificates of indebtedness (including those payable coverage. Figures in the first column are comparable in coverage with those shown in foreign currencies through 1974) and Treasury bills issued to official institutions for the preceding month; figures in the second column are comparable with those of foreign countries. for the following month. 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and notes payable in foreign currencies. Note. Based on Treasury Department data and on data reported to the Treasury Department by banks (including Federal Reserve Banks) and securities dealers in the United States. 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 June Sept. Dec. Mar.j^ 1 Banks’ own liabilities............................................................ 925 2,406 1,918 2,739 2,754 3,748 3,268 3,262 2 Banks’ own claims1................................................................ 2,356 3,671 2,419 2,874 3,203 4,206 4,238 4,245 3 Deposits.............................................................................. 941 1,795 994 1,090 1,169 2,507 1,697 1,758 4 Other claims........................................................................ 1,415 1,876 1,425 1,784 2,035 1,699 2,542 2,488 5 Claims of banks’ domestic customers2.............................. 358 580 798 595 962 444 444 1. Includes claims of banks’ domestic customers through March 1978. A Data in the two columns for this date differ because of changes in reporting 2. Assets owned by customers of the reporting bank located in the United States coverage. Figures in the first column are comparable in coverage with those shown that represent claims on foreigners held by reporting banks for the accounts of for the preceding quarter; figures in the second column are comparable with those their domestic customers. for the following quarter. Note. Data on claims exclude foreign currencies held by U.S. monetary au­ thorities. 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 1981 Holder and type of liability 1977 1978 1979 1980 Jan. Feb. Mar.^ Apr. MayP 1 All foreigners.............................................................. 126,168 166,842 187,521 205,295 202,359 201,195 203,359r 204,993 213,025 213,255 78,661 117,196 124,789 122,857 121,528 120,217' 120,425 128,046 132,014 3 Demand deposits........................................................ 18,996 19,218 23.303 23,462 22,149 23,300 21,308' 21,216 22,644 22,257 4 Time deposits1............................................................ 11,521 12,427 13.623 15,076 15,898 15,778 16,272 16,304 15,970 16,026 5 Other2 ........................................................................ 9,705 16,453 17,581 14,685 13,476 15,947' 16,199 14,532 12,347 37,311 63,817 68,670 70,125 68,973 66,690' 66,707 74,901 81,384 88,181 70,325 80,506 79,501 79,668 83,142' 84,568 84,979 81,241 8 U.S. Treasury bills and certificates5...................... 48,906 68,202 48,573 57,595 57,673 58,360 62,073 62,156 63,034 59,336 9 Other negotiable and readily transferable 17,472 19,396 20,079 19,050 18,350 18,226' 18,207 18,127 17,604 2,507 2,356 2,832 2,778 2,959 2,843 4,205 3,818 4,301 11 Nonmonetary international and regional organizations7...................................................... 3,274 2,607 2,356 2,342 1,961 2,003 1,854r 1,854 1,804 1,803 906 714 442 419 317 293 293 655 498 13 Demand deposits........................................................ 231 330 260 146 212 186 126 126 178 149 14 Time deposits1............................................................ 139 84 151 85 71 76 67 67 81 78 15 Other2 ........................................................................ 492 303 211 137 54 100 100 396 271 1,701 1,643 1,900 1,542 1,687 1,561' 1,561 1,149 1,304 17 U.S. Treasury bills and certificates........................ 706 201 102 254 88 368 333 333 63 213 18 Other negotiable and readily transferable instruments6 ... ...................... 1,499 1,538 1,646 1,453 1,319 1,228' 1,228 1,086 1,091 19 Other ...................................................................... 1 2 0 0 0 0 0 0 0 20 Official institutions8................................................... 65,822 90,742 78,206 86,624 83,530 81,693 87,672 r 87,692 87,160 81,269 21 Banks’ own liabilities ...................... 12,165 18,292 17,826 15,222 13,938 16,200' 16,220 14,678 13,412 22 Demand deposits........................................................ 3,528 3,390 4,671 3,771 3,869 3,580 3,338 3,232 3,768 3,444 23 Time deposits1............................................................ 1,797 2,560 3,050 3,612 3,343 2,997 2,920 2,938 2,660 2,642 24 Other2 ...................................................................... 6,215 10,571 10,443 8,010 7,361 9,941' 10,050 8,250 7,326 25 Banks’ custody liabilities4 .................................. 78,577 59,914 68,798 68,308 67,755 71,472' 71,472 72,482 67,857 26 U.S. Treasury bills and certificates5...................... 47,820 67,415 47,666 56,243 56,522 56,829 60,306 60,306 61,431 57,612 27 Other negotiable and readily transferable instruments6........................................................ 10,992 12,196 12,501 11,756 10,894 11,080' 11,080 11,026 10,223 28 Other ...................................................................... 170 52 54 30 32 86 86 25 22 29 Banks9......................................................................... 42,335 57,423 88,316 96,415 96,659 96,608 93,018' 94,338 102,493 108,454 30 Banks’ own liabilities.................................................... 52,626 83,299 90,456 90,594 90,319 86,649' 86,620 95,046 100,327 31 Unaffiliated foreign banks........................................ 15,315 19,482 21,786 20,469 21,346 19,958' 19,914 20,145 18,943 10,933 321 1,257Dema1n3,d2 8d5eposit1s4..,.1.8..8...........1..2..,.8..8..9...........1..4..,.2..8..7...... 12,585' 12,588 13,493 13,394 33 Time deposits1........................................................ 2,040 1,429 1,667 1,703 1,857 1,813 2,324 2,305 1,551 1,687 34 Other2...................................................................... 2,629 4,530 5,895 5,723 5,245 5,049' 5,021 5,101 3,862 35 Own foreign offices3.................................................. 37,311 63,817 68,670 70,125 68,973 66,690' 66,707 74,901 81,384 36 Banks’ custody liabilities4............................................ 4,797 5,017 5,959 6,065 6,289 6,369' 7,717 7,446 8,127 141 37 30U0.S. Trea4su22ry bills an62d3 certifica6t3e1s..............7..1..4...... 826 827 839 940 38 Other negotiable and readily transferable instruments6........................................................ 2,425 2,415 2,748 2,856 2,850 2,928' 2,913 2,932 3,053 39 Other ...................................................................... 2,072 2,179 2,588 2,578 2,726 2,615 3,977 3,675 4,134 40 Other foreigners........................................................ 14,736 16,070 18,642 19,914 20,209 20,891 20,816r 21,109 21,569 21,730 41 Banks’ own liabilities.................................................... 12,964 14,891 16,065 16,623 16,955 17,076' 17,291 17,667 17,777 4,304 4,242 5,087 425 ,35D6emand5 ,d17e9posits...5..,.2..4..6...........5..,.2..5..9...............5..,.2..7..0...... 5,205 5,270 43 Time deposits.............................................................. 7,546 8,353 8,755 9,676 10,628 10,892 10,961 10,995 11,678 11,620 44 Other2.......................................................................... 368 1,048 1,033 815 816 856' 1,027 784 888 45 Banks’ custody liabilities4............................................ 3,106 3,751 3,849 3,586 3,937 3,740' 3,817 3,902 3,952 ........................ 240 285 382 46 47U4.S. Trea4s3u2ry bills a4n4d9 certific6a0t7es 690 701 571 47 Other negotiable and readily transferable instruments6........................................................ 2,557 3,247 3,185 2,985 3,287 2,991' 2,986 3,083 3,237 48 Other ...................................................................... 264 123 190 170 201 141 141 119 145 49 Memo: Negotiable time certificates of deposit in custody for foreigners...................................... 11,007 10,984 10,745 10,267 9,868 9,893' 9,887 9,777 9,620 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. A Data in the two columns for this date differ because of changes in reporting 4. Financial claims on residents of the United States, other than long-term se­ coverage. Figures in the first column are comparable in coverage with those shown curities, held by or through reporting banks. for the preceding month; figures in the second column are comparable with those for the following month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics □ July 1981 3.16 Continued 1981 Area and country 1977 1978 1979 1980 Jan. Feb. Mar.^ Apr. May? 1Total........................................................................... 126,168 166,842 187,521 205,295 202,359 201,195 203,359r 204,993 213,025 213,255 2Foreign countries........................................................ 122,893 164,235 185,164 202,953 200,398 199,192 201,505r 203,139 211,221 211,452 3Europe............................................................................ 60,295 85,172 90,952 90,897 89,701 89,181 91,338'' 92,495 90,083 87,345 4 Austria........................................................................ 318 513 413 523 554 551 522 522 526 497 5 Belgium-Luxembourg................................................ 2,531 2,550 2,375 4,019 4,062 4,782 4,698' 4,698 4,967 5,509 6 Denmark...................................................................... 770 1,946 1,092 497 420 432 463 461 434 526 7 Finland........................................................................ 323 346 398 455 264 355 332 332 341 290 8 France .......................................................................... 5,269 9,214 10,433 12,125 12,168 12,521 12,959' 12,950 13,122 11,364 9 Germany...................................................................... 7,239 17,283 12,935 9,973 10,336 9,296 12,299' 12,305 12,489 9,468 10 Greece.......................................................................... 603 826 635 670 524 563 593 593 604 543 11 6,857 7,739 7,782 7,572 6,743 5,987 3,446' 3,453 3,600 3,008 12 Netherlands................................................................ 2,869 2,402 2,337 2,441 2,568 2,540 2,324 2,328 2,304 2,205 13 Norway........................................................................ 944 1,271 1,267 1,344 899 1,037 1,575 1,575 1,477 1,648 14 Portugal...................................................................... 273 330 557 374 370 358 356 356 309 336 15 Spain............................................................................ 619 870 1,259 1,500 1,416 1,388 1,631 1,631 1,352 1,677 16 Sweden ........................................................................ 2,712 3,121 2,005 1,737 1,365 2,078 2,408' 2,408 2,799 2,518 17 Switzerland.................................................................. 12,343 18,225 17,954 16,689 16,631 16,636 16,844' 16,856 15,768 15,838 18 Turkey.......................................................................... 130 157 120 242 203 231 235 235 209 182 19 United Kingdom........................................................ 14,125 14,272 24,700 22,680 24,209 24,325 24,715 25,836 24,311 25,485 20 Yugoslavia.................................................................. 232 254 266 681 296 269 202 202 238 270 21 Other Western Europe1............................................ 1,804 3,440 4,070 6,939 6,225 5,385 5,338' 5,356 4,933 5,600 22 U.S.S.R........................................................................ 98 82 52 68 46 84 47 47 37 85 23 Other Eastern Europe2............................................ 236 330 302 370 401 363 352 350 264 294 24 Canada ............................................................................ 4,607 6,969 7,379 10,031 9,802 9,131 8,570' 8,610 10,365 11,221 25 Latin America and Caribbean.................................... 23,670 31,638 49,686 53,170 53,229 52,275 50,818' 51,178 58,275 59,987 26 Argentina.................................................................... 1,416 1,484 1,582 2,132 1,857 1,998 1,917 1,917 1,919 1,800 27 Bahamas...................................................................... 3,596 6,752 15,255 16,381 16,164 15,916 14,183 14,356 18,815 19,984 28 Bermuda...................................................................... 321 428 430 670 475 804 915' 913 639 806 29 Brazil............................................................................ 1,396 1,125 1,005 1,216 1,339 1,266 1,151' 1,148 1,345 1,357 30 British West Indies.................................................... 3,998 5,974 11,138 12,766 12,798 12,144 11,566' 11,566 13,842 14,842 31 Chile............................................................................ 360 398 468 460 501 431 549 549 539 526 32 Colombia.................................................................... 1,221 1,756 2,617 3,077 3,085 3,087 2,970 2,970 2,950 2,838 33 Cuba............................................................................ 6 13 13 6 6 7 6 6 8 7 34 Ecuador ...................................................................... 330 322 425 371 389 449 511 511 352 390 35 Guatemala3................................................................ 416 414 367 428 461 446 446 416 410 36 Jamaica3...................................................................... 52 76 97 112 101 94 94 141 142 37 Mexico........................................................................ 2,876 3,467 4,185 4,547 4,595 4,600 4,755 4,756 5,332 4,937 38 Netherlands Antilles.................................................. 196 308 499 413 599 523 436 476 440 495 39 Panama........................................................................ 2,331 2,967 4,483 4,718 4,460 3,984 4,297 4,445 4,723 4,889 40 Peru.............................................................................. 287 363 383 403 401 447 341' 342 354 333 41 Uruguay ...................................................................... 243 231 202 254 290 266 306 306 284 334 42 Venezuela.................................................................... 2,929 3,821 4,192 3,170 3,794 3,925 4,218 4,220 4,178 3,922 43 Other Latin America and Caribbean.................... 2,167 1,760 2,318 2,123 1,936 1,869 2,158' 2,158 1,997 1,975 44Asia.................................................................................. 30,488 36,492 33,005 42,420 41,649 42,721 44,700' 44,777 45,677 45,899 China 45 Mainland......................................................................... 53 67 49 49 55 55 60 60 46 54 46 Taiwan.................................................................... 1,013 502 1,393 1,662 1,821 1,733 1,822 1,822 1,799 1,781 47 Hong Kong.................................................................. 1,094 1,256 1,672 2,548 2,764 3,054 2,440 2,438 2,470 3,002 48 India............................................................................ 961 790 527 416 437 604 576 576 442 458 49 Indonesia.................................................................... 410 449 504 730 1,170 678 1,063 1,063 944 706 50 Israel ............................................................................ 559 688 707 883 523 557 582' 582 444 397 51 Japan............................................................................ 14,616 21,927 8,907 16,281 17,701 17,990 19,367' 19,442 19,450 19,833 52 Korea.......................................................................... 602 795 993 1,528 1,498 1,485 1,380 ' 1,380 1,381 1,397 53 Philippines.................................................................. 687 644 795 919 849 1,057 1,115 1,115 1,213 802 54 Thailand...................................................................... 264 427 277 464 367 404 250 250 391 338 55 Middle-East oil-exporting countries4...................... 8,979 7,534 15,300 14,453 12,216 12,695 13,913' 13,913 14,845 14,445 56 Other Asia.................................................................. 1,250 1,414 1,879 2,487 2,249 2,409 2,132' 2,134 2,252 2,686 57 2,535 2,886 3,239 5,187 4,358 4,371 4,553 4,553 4,529 4,513 58 Egypt............................................................................ 404 404 475 485 313 496 333 333 336 308 59 Morocco...................................................................... 66 32 33 33 42 30 33 33 34 119 60 South Africa............................................................... 174 168 184 288 327 258 322 322 330 336 61 Zaire............................................................................ 39 43 110 57 48 58 28 28 28 24 62 Oil-exporting countries5............................................ 1,155 1,525 1,635 3,540 2,921 2,833 3,084 3,084 3,135 2,962 63 Other Africa.............................................................. 698 715 804 783 707 697 753 753 666 764 64 Other countries.............................................................. 1,297 1,076 904 1,247 1,658 1,513 1,526 1,526 2,293 2,487 65 Australia...................................................................... 1,140 838 684 950 1,304 1,205 1,287 1,287 2,018 2,286 66 All other...................................................................... 158 239 220 297 354 307 240 240 275 201 67 Nonmonetary international and regional organizations.......................................................... 3,274 2,607 2,356 2,342 1,961 2,003 1,854' 1,854 1,804 1,803 68 International.............................................................. 2,752 1,485 1,238 1,156 913 995 754 754 795 771 69 Latin American regional.......................................... 278 808 806 890 769 745 768 768 693 729 70 Other regional6.......................................................... 245 314 313 296 279 263 333' 333 317 303 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.” A Data in the two columns for this date differ because of changes in reporting coverage. Figures in the first column are comparable in coverage with those for the preceding month; figures in the second column are comparable with those for the following month. 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 1981 Area and country 1977 1978 1979 1980 Jan. Feb. Mar.A Apr. Mayp 1 90,206 115,545 133,943 172,702 167,338 167,687 r 179,535 r 181,551 184,451 185,827 2 Foreign countries........................................................ 90,163 115,488 133,906 172,624 167,266 167,608 r 179,461r 181,477 184,382 185,751 3 Europe............................................................................ 18,114 24,201 28,388 32,155 30,657 30,768 34,136' 35,098 34,176 34,230 4 Austria........................................................................ 65 140 284 236 249 191 174 174 151 149 5 Belgium-Luxembourg................................................ 561 1,200 1,339 1,621 1,739 2,140 2,568 2,573 2,155 2,023 6 Denmark...................................................................... 173 254 147 127 129 172 119 119 141 162 7 Finland........................................................................ 172 305 202 460 322 337 319' 326 324 299 8 France .......................................................................... 2,082 3,735 3,322 2,958 2,716 3,067 3,838' 3,911 3,696 3,166 9 Germany...................................................................... 644 845 1,179 ■948 993r 1,028 1,074 1,122 1,038 1,140 10 Greece.......................................................................... 206 164 154 256 264 244 210 210 334 242 11 Italy.............................................................................. 1,334 1,523 1,631 3,364 3,168 3,105 3,052' 3,055 2,926 2,976 12 Netherlands................................................................ 338 677 514 575 642 523 548 560 530 584 13 Norway........................................................................ 162 299 276 227 294 224 223 223 180 173 14 Portugal...................................................................... 175 171 330 331 299 240 247 247 242 263 15 Spain............................................................................ 722 1,120 1,051 993 1,131 1,152 1,494 1,497 1,601 1,715 16 Sweden ........................................................................ 218 537 542 783 688 733 868 884 975 988 17 Switzerland.................................................................. 564 1,283 1,165 1,446 1,753 1,729 1,313' 1,375 1,263 1,693 18 Turkey.......................................................................... 360 300 149 145 146 155 136' 136 132 172 19 United Kingdom........................................................ 8,964 10,147 13,795 14,917 13,175 12,949 15,093' 15,827 15,565 15,643 20 Yugoslavia.................................................................. 311 363 611 853 863 859 871 872 878 904 21 Other Western Europe1............................................ 86 122 175 179 347 177 176 176 211 147 22 U.S.S.R........................................................................ 413 360 268 281 249 249 265 265 266 254 23 Other Eastern Europe2............................................ 566 657 1,254 1,457 1,490 1,494 1,548 1,548 1,569 1,538 24Canada ............................................................................ 3,355 5,152 4,143 4,810 4,221 4,872 5,017' 5,297 6,147 5,837 25 Latin America and Caribbean.................................... 45,850 57,565 67,993 92,992 90,792 89,625' 96,364' 96,829 98,334 99,158 26 Argentina.................................................................... 1,478 2,281 4,389 5,689 5,642 5,636 5,672 5,672 5,881 5,635 27 Bahamas...................................................................... 19,858 21,555 18,918 29,419 28,358 28,642' 34,139' 34,285 33,873 32,894 28 Bermuda...................................................................... 232 184 496 218 267 364 324' 324 389 481 29 Brazil............................................................................ 4,629 6,251 7,713 10,496 10,260 9,801 10,213' 10,269 9,924 9,916 30 British West Indies.................................................... 6,481 9,694 9,818 15,663 14,546 14,338 14,236' 14,320 15,937 16,892 31 Chile............................................................................ 675 970 1,441 1,951 1,862 1,843 1,876' 1,876 2,028 2,019 32 Colombia.................................................................... 671 1,012 1,614 1,752 1,665 1,435 1,467 1,467 1,457 1,580 33 Cuba............................................................................ 10 0 4 3 4 3 3 3 4 3 34 Ecuador ...................................................................... 517 705 1,025 1,190 1,222 1,179 1,257 1,257 1,229 1,237 35 Guatemala3................................................................ 94 134 137 114 113 208 208 98 106 36 Jamaica3...................................................................... 40 47 36 33 41 77 77 34 35 37 Mexico........................................................................ 4,909 5,479 9,099 12,595 12,687 12,460 12,407' 12,447 13,242 13,409 38 Netherlands Antilles.................................................. 224 273 248 821 835 655 807 921 809 956 39 Panama........................................................................ 1,410 3,098 6,041 4,974 5,033 4,964 5,640 5,643 5,489 5,848 40 Peru.............................................................................. 962 918 652 890 912 877 794' 794 853 871 41 Uruguay ...................................................................... 80 52 105 137 111 107 103 103 105 100 42 Venezuela.................................................................... 2,318 3,474 4,657 5,438 5,515 5,514 5,441 5,458 5,325 5,433 43 Other Latin America and Caribbean.................... 1,394 1,485 1,593 1,583 1,728 1,653 1,702 1,705 1,658 1,742 44 19,236 25,362 30,730 39,140 38,564' 39,113' 40,636' 40,941 42,415 42,950 China 45 Mainland.................................................................. 10 4 35 195 225 186 201 201 202 204 46 Taiwan.................................................................... 1,719 1,499 1,821 2,469 2,415 2,270 2,413' 2,413 2,568 2,413 47 Hong Kong.................................................................. 543 1,479 1,804 2,247 2,250 2,212 2,330 2,330 2,476 2,896 48 India............................................................................ 53 54 92 142 110 142 127 127 134 170 49 Indonesia.................................................................... 232 143 131 245 280 306 288 288 299 268 50 Israel............................................................................ 584 888 990 1,172 1,081 829 944 981 1,014 1,185 51 Japan............................................................................ 9,839 12,646 16,911 21,361 21,187 22,314' 23,710 23,977 23,850 24,225 52 Korea.......................................................................... 2,336 2,282 3,793 5,697 5,904 5,936 5,823' 5,823 6,024 6,014 53 Philippines.................................................................. 594 680 737 989 840 745 605 605 992 1,024 54 Thailand...................................................................... 633 758 933 876 810 808 835 835 829 698 55 Middle East oil-exporting countries4...................... 1,746 3,125 1,548 1,494 1,435 1,443 1,486 1,486 1,909 1,458 56 Other Asia.................................................................. 947 1,804 1,934 2,252 2,026 1,922 1,874 1,874 2,120 2,396 57 Africa.............................................................................. 2,518 2,221 1,797 2,377 1,910 1,981 2,271 2,271 2,272 2,536 58 Egypt............................................................................ 119 107 114 151 175 152 137 137 124 126 59 Morocco...................................................................... 43 82 103 223 186 115 153 153 118 87 60 South Africa................................................................ 1,066 860 445 370 337 421 534 534 562 668 61 Zaire............................................................................ 98 164 144 94 96 94 111 111 108 98 62 Oil-exporting countries5............................................ 510 452 391 805 410 425 589 589 650 805 63 Other............................................................................ 682 556 600 734 707 773 746 746 710 751 64 Other countries.............................................................. 1,090 988 855 1,150 1,122 1,250 1,038' 1,041 1,038 1,040 65 Australia...................................................................... 905 877 673 859 827 868 870 874 922 898 66 All other...................................................................... 186 111 182 290 295 381 167' 167 116 142 67 Nonmonetary international and regional organizations6........................................................ 43 56 36 78 72 79 74 74 69 76 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 Romania. A Data in the two columns shown for this date differ because of changes in 3. Included in “Other Latin America and Caribbean” through March 1978. reporting coverage. Figures in the first column are comparable in coverage with 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and those for the preceding month; figures in the second column are comparable with United Arab Emirates (Trucial States). those for the following month. Note. Data for period prior to April 1978 include claims of banks’ domestic customers on foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics □ July 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 1981 Type of claim 1978 1980 Feb. Mar.^ Apr. MayP 1 Total..................................................................... 90,206 126,787 154,030 198,807 210,586r 213,220 2 Banks’ own claims on foreigners.......................... 115,545 133,943 172,702 167,338 167,687‘ 179,535r 181,551 184,451 185,827 3 Foreign public borrowers........................................ 10,346 15,937 20,944 20,969 20,3211 20,836r 21,027 21,316 21,038 4 Own foreign offices1................................................ 41,605 47,428 65,084 64,002 64,798' 74,660r 74,717 76,483 75,020 5 Unaffiliated foreign banks...................................... 40,483 40,927 50,215 46,350 45,880' 46,502r 48,104 48,524 51,110 6 Deposits................................................................ 5,428 6,274 8,254 7,261 7,079 7,263 8,205 7,668 9,439 7 Other...................................................................... 35,054 34,654 41,962 39,089 38,800' 39,239r 39,898 40,857 41,671 8 All other foreigners................................................ 23,111 29,650 36,459 36,017 36,689' 37,537r 37,703 38,128 38,660 9 Claims of banks’ domestic customers2................ 11,243 20,088 26,106 31,052 31,669 10 Deposits.................................................................... 480 955 885 369 852 11 Negotiable and readily transferable instruments3 5,396 13,100 15,574 19,930 20,064 12 Outstanding collections and other claims4.......... 6,176 5,366 6,032 9,648 10,752 10,753 13 Memo: Customer liability on acceptances.......... 15,030 18,021 24,452 24,452 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5...................................................................... 13,162 21,578 23,644 28,318 30,812 30,142 33,790 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. ^Data in the two columns for this month differ because of changes in reporting 2. Assets owned by customers of the reporting bank located in the United States coverage. Figures in the first column are comparable in coverage with those shown that represent claims on foreigners held by reporting banks for the account of their for the preceding month; figures in the second column are comparable with those domestic customers. shown for the following month. 3. Principally negotiable time certificates of deposit and bankers acceptances. Note. Beginning April 1978, data for banks’ own claims are given on a monthly basis, but the data for claims of banks’ own domestic customers are available on a quarterly basis only. 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. June Sept. Dec. Mar.A 1 Total......................................................................................................... 73,635 86,181 93,260 99,022 106,857 104,789 106,513 By borrower 2 Maturity of 1 year or less1............................................................................ 58,345 65,152 71,938 76,231 82,665 80,855 82,636 3 Foreign public borrowers.......................................................................... 4,633 7,233 7,227 8,935 10,036 10,519 10,630 4 All other foreigners.................................................................................. 53,712 57,919 64,711 67,296 72,628 70,336 72,005 5 Maturity of over 1 year1.............................................................................. 15,289 21,030 21,322 22,791 24,193 23,934 23,877 6 Foreign public borrowers.......................................................................... 5,395 8,371 8,673 9,722 10,152 10,158 10,244 7 All other foreigners.................................................................................. 9,894 12,659 12,649 13,069 14,041 13,775 13,634 By area Maturity of 1 year or less1 8 Europe........................................................................................................ 15,169 15,235 17,215 16,940 18,762 17,306 18,261 9 Canada ........................................................................................................ 2,670 1,777 2,047 2,166 2,723 2,358 2,621 10 Latin America and Caribbean................................................................ 20,895 24,928 24,460 28,097 32,034 30,844 31,096 11 Asia.............................................................................................................. 17,545 21,641 26,162 26,876 26,748 28,001 28,305 12 Africa.......................................................................................................... 1,496 1,077 1,330 1,401 1,757 1,624 1,624 13 All other2.................................................................................................... 569 493 724 751 640 722 729 Maturity of over 1 year1 3,142 4,160 4,033 4,705 5,118 5,698 5,578 15 Canada ........................................................................................................ 1,426 1,317 1,199 1,188 1,448 1,184 1,200 16 Latin America and Caribbean................................................................ 8,464 12,814 13,887 14,187 15,075 14,768 14,870 17 Asia.............................................................................................................. 1,407 1,911 1,477 2,014 1,865 1,585 1,530 18 Africa.......................................................................................................... 637 655 576 567 507 531 531 19 All other2.................................................................................................... 214 173 150 130 179 168 167 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. A Data in the two columns for this month differ because of changes in reporting coverage. Figures in the first column are comparable in coverage with those for the preceding quarter; figures in the second column are comparable with those for the following quarter. 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 Banksi Billions of dollars, end of period 1979 1980 1981 Area or country 1977 19782 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar.p 1Total........................................................................................................ 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 13Other 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 2.2 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 2.4 2.5 2.6 2.8 2.8 18 Norway................................................................................................ 1.9 2.1 2.1 2.1 2.3 2.3 2.4 2.4 2.4 2.6 2.8 19 Portugal.............................................................................................. .6 .6 .6 .5 .7 .7 .6 .6 .7 .6 .6 20 Spain.................................................................................................... 3.6 3.5 3.0 3.0 3.3 3.5 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 4.1 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 l.’l 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 1.4 1.4 47 Other Asia.......................................................................................... .4 .2 .4 .4 .4 .5 .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 Africa*...................................................................................... .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 unallocated^.......................................................... 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.-owned 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 □ July 1981 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1981 1980 1981 Country or area 1979 1980 Jan- Mayp Nov. Dec. Jan. Feb. Mar. Apr. Mayp Holdings (end of period)1 1 Estimated total2....................................... 51,344 57,418 57,222 57,418 62,124' 62,837 2 Foreign countries2...................................... 45,915 52,831 52,872 52,831 55,655 56,840 57,352' 58,039 3 Europe2.................................................... 24,824 24,337 24,711 24,337 25.466 25,235 24,883 24,511 4 Belgium-Luxembourg............................ 60 77 74 77 88 106 123 131 5 Germany2................................................ 14,056 12,335 12,758 12,335 12,915 12,340 11,925 11,949 6 Netherlands............................................ 1,466 1,884 1,777 1,884 1,944 1,965 1,950 1,813 7 Sweden.................................................... 647 595 614 595 535 566 567 572 8 Switzerland2............................................ 1,868 1,485 1,489 1,485 1,524 1,527 1,526 1,535 9 United Kingdom.................................... 6,236 7,183 7,414 7,183 7,745 7,892 7,862 7,274 1 11 0 E O a th st e e r r n W E es u t r e o rn p e E ... u .. r .. o ... p .. e .. . . . . . . . . . .. . . .. .. . . .. . . .. .. . . . . .. . . . . .. .. . . .. . . . 491 0 111 0 584 0 111 0 714 0 839 0 930 0 1,236 0 12 Canada........................................................ 232 449 532 449 458 490 478 464 486 13 Latin America and Caribbean................ 466 999 942 999 998 1,074 1,151 939 849 14 Venezuela................................................ 103 292 292 292 292 292 292 292 287 15 Other Latin America and Caribbean . 200 285 278 285 281 341 339 389 430 16 Netherlands Antilles.............................. 163 421 372 421 425 441 519 258 132 17 Asia.............................................................. 19,805 26,112 25,968 26,112 26,303 27.467 28,827 29,920r 31,047 18 Japan........................................................ 11,175 9,479 9,547 9,479 9,519 9,543 9,543 9,566 9,606 19 Africa.......................................................... 591 920 715 920 970 1,139 1,140 1,140 1,140 20 All other...................................................... -3 14 4 14 14 18 9 7 6 21 Nonmonetary international and regional organizations...................................... 5,429 4,587 4,350 4,587 4,534 4,622 4,920' 4,772r 4,798 22 International.......................................... 5,388 4,548 4,302 4,548 4,505 4,586 4,878' 4,759' 4,791 23 Latin American regional...................... 37 36 44 36 26 36 36 6 1 Transactions (net purchases, or sales (-) during period) 24 Total2............................................................ 6,397 5,418 1,035 1,480' 364' 713 25 Foreign countries2...................................... 6,099 6,916 5,208 791 -41 1,088 1,736 1,185 512r 686 26 Official institutions................................ 1,697 3,840 4.169 301 -336 865 1,404 1,084 495' 321 27 Other foreign2........................................ 4,403 3,076 1,038 490 295 223 332 101 17' 365 28 Nonmonetary international and regional organizations...................................... 301 -843 211 -126 237 -53 -148 26 Memo: Oil-exporting countries 2 3 9 0 A M f i r d i d ca le 4 . E ... a .. s .. t . 3 ... . . . .. . . . . . . . . .. . . .. . . . . . . . . .. . . .. . . . . . . . . .. . . .. . . . . . . . . .. . . .. . . . . . . . . .. . . .. . . . . . . . . .. . . .. . . . -1 - , 1 0 0 1 0 4 7,6 32 7 8 2' 4,6 2 6 2 5 0 56 2 1 9 3 20 5 5 8 30 51 0 1,1 1 3 6 9 9 1,3220 1,0602' 8410 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 Dec. Jan. Feb. Mar. Apr. May Junep 1 Deposits.......................................................................... 367 429 411 411 573 422 474 475 346 338 Assets held in custody 2 U.S. Treasury securities1.............................................. 117,126 95,075 102,417 102,417 104,490 106,389 111,859 113,746 109,742 107,884 3 Earmarked gold2............................................................ 15,463 15,169 14,965 14,965 14,893 14,892 14,883 14,886 14,875 14,871 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 J M an ay .- Nov. Dec. Jan. Feb. Mar. Apr. MayP U.S. corporate securities Stocks 1 Foreign purchases....................................................... 22,781 40,320 18,200 4,457 4,345 3,422 2,718c 3,948 4,041 4,071 2 Foreign sales.............................................................. 21,123 34,962 14,599 3,588 3,701 2,798 2,312 3,313 3,323 2,852 3 Net purchases, or sales (-)....................................... 1,658 5,358 3,601 869 644 624 406 634 718 1,219 4 Foreign countries........................................................ 1,642 5,340 3,562 867 623 612 403 626 710 1,210 5 Europe....................................................................... 217 3,069 2,487 633 254 438 257 605 419 767 6 France ...................................................................... 122 482 731 109 60 62 41 110 126 393 7 Germany.................................................................. -221 186 72 121 8 24 18 31 15 -17 8 Netherlands............................................................ -71 -328 85 -58 -17 43 2 12 -2 31 9 Switzerland.............................................................. -519 308 377 265 -88 105 -24 138 75 83 10 United Kingdom..................................................... 964 2,503 1,119 251 300 178 220 308 197 217 11 Canada ....................................................................... 552 865 588 263 247 26 91 103 230 138 12 Latin America and Caribbean.................................. -19 148 74 57 -8 101 -22 14 -26 8 13 Middle East*.............................................................. 688 1,206 354 -109 177 63 74 -95 91 221 14 Other Asia.................................................................. 211 16 64 18 -49 -14 -2 0 3 78 15 Africa......................................................................... -14 -1 3 0 -2 2 0 -1 -1 1 16 Other countries.......................................................... 7 38 -8 5 2 -5 7 0 -5 -4 17 Nonmonetary international and regional organizations.......................................................... 17 18 39 2 22 12 2 8 8 10 Bonds2 18 Foreign purchases...................................................... 8,835 15,425 7,430 1,193 946 1,549 1,402 2,035r 1,549 894 19 Foreign sales.............................................................. 7,602 9,976 4,362 902 826 817 863 1,239' 774 669 20 Net purchases, or sales (—).......................................... 1,233 5,449 3,068 291 121 733 539 769 r 775 225 21 Foreign countries............................................................ 1,330 5,514 3,031 295 107 706 552 797 733 243 22 Europe....................................................................... 626 1,576 982 163 -26 214 311 132 328 -3 23 France...................................................................... 11 129 -4 12 12 4 -42 9 8 17 24 Germany.................................................................. 58 213 308 13 22 49 112 97 23 28 25 Netherlands............................................................ -202 -65 49 -7 17 6 12 14 13 4 26 Switzerland.............................................................. -118 54 89 8 14 22 12 4 17 34 27 United Kingdom..................................................... 814 1,257 452 166 -113 124 207 -22 231 -87 28 Canada........................................................................ 80 135 54 21 -7 7 -2 19 12 18 29 Latin America and Caribbean.................................. 109 185 82 11 -5 -3 26 28 22 9 30 Middle East1.............................................................. 424 3,486 1,969 105 113 492 201 723 362 192 31 Other Asia.................................................................. 88 117 -53 -3 32 -1 17 -105 9 27 32 Africa......................................................................... 1 5 0 0 0 0 0 0 0 0 33 Other countries.......................................................... 1 10 -4 -1 0 -4 0 0 0 0 34 Nonmonetary international and regional organizations.......................................................... -96 -65 37 -4 14 27 -13 -1 r 42 -18 Foreign securities 35 Stocks, net purchases, or sales (-).......................... -786 -2,084 -198 129 -68 35 13 -187 -90 32 36 Foreign purchases................................................... 4,615 7,885 3,871 927 721 696 709 763 851 852 37 Foreign sales.......................................................... 5,401 9,968 4,069 798 788 661 697 950 941 820 38 Bonds, net purchases, or sales (-).......................... -3,855 -846 -1,159 92 274 -237 29 -141 -632 -178 39 Foreign purchases................................................... 12,672 17,069 6,565 1,254 1,786 1,142 1,296 1,686 1,154 1,287 40 Foreign sales.......................................................... 16,527 17,915 7,724 1,161 1,512 1,379 1,267 1,827 1,786 1,465 41 Net purchases, or sales ( —), of stocks and bonds ... -4,641 -2,929 -1,357 221 206 -202 42 -328 -723 -146 42 Foreign countries............................................................ -3,891 -3,806 -1,454 198 -177 -261 24 -340 -732 -146 43 Europe....................................................................... -1,646 -957 -420 -30 -86 -116 80 -161 -300 77 44 Canada ....................................................................... -2,601 -1,948 -670 329 24 -4 76 -101 -271 -370 45 Latin America and Caribbean.................................. 347 126 102 -24 -11 51 52 -68 119 -51 46 Asia............................................................................ 44 -1,131 -397 -73 -84 -177 -169 9 -234 173 47 Africa......................................................................... -61 24 -44 -1 -13 -10 -8 -17 -7 -3 48 Other countries.......................................................... 25 80 -24 -3 -7 -4 -7 -2 -39 28 49 Nonmonetary international and regional organizations.......................................................... -750 876 97 23 383 59 17 12 9 0 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 □ July 1981 3.24 LIABILITIES TO 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 Sept. Dec. Mar. June Sept. Dec.p 1 Total....................................................................................................... 14,948 r 17,062 r 15,782r 17,062r 17,476 ' 18,643 r 18,634r 21,064 2 Payable in dollars........................................................................................ 11,513' 13,984' 12,699' 13,984' 14,470' 15,203' 15,337' 17,445 3 Payable in foreign currencies2.................................................................. 3,435' 3,078' 3,082' 3,078' 3,006' 3,440' 3,296' 3,619 By type 4 Financial liabilities...................................................................................... 6,353' 7,336' 6,196' 7,336' 7,832' 8,410' 8,293' 10,844 5 Payable in dollars.................................................................................... 3,838' 5,096' 3,883' 5,096' 5,591' 5,791' 5,818' 8,140 6 Payable in foreign currencies................................................................ 2,515' 2,270' 2,313' 2,270' 2,242' 2,619' 2,475' 2,703 7 Commercial liabilities................................................................................ 8,595' 9,696' 9,585' 9,696' 9,693' 10,233' 10,341' 10,221 8 Trade payables........................................................................................ 4,008 4,424' 4,051 4,424' 4,190' 4,297' 4,381' 4,401 9 Advance receipts and other liabilities.................................................. 4,587' 5,272' 5,535' 5,272' 5,454' 5,936' 5,960 5,820 10 Payable in dollars.................................................................................... 7,674' 8,888' 8,817' 00 00 O00 O 8,879' 9,412' 9,520' 9,305 11 Payable in foreign currencies................................................................ 921' 808 769' 808 764' 821' 821 916 By area or country Financial liabilities 12 Europe...................................................................................................... 3,958' 4,642' 3,776' 4,642' 4,860' 5,470' 5,314 6,276 13 Belgium-Luxembourg........................................................................ 289 345 317 345 360 422 417' 464 14 France.................................................................................................... 173' 175' 132' 175' 193' 347' 339' 327 15 Germany.............................................................................................. 366 497 381 497 520 657 557 582 16 Netherlands.......................................................................................... 390 828 542 828 795 797' 780' 662 17 Switzerland.......................................................................................... 248 170 190 170 174 238 224 354 18 United Kingdom.................................................................................. 2,159' 2,449' 2,014' 2,449' 2,647' 2,841' 2,867' 3,753 19 Canada...................................................................................................... 244 439' 304 439' 380' 530' OOo 756 20 Latin America and Caribbean.............................................................. 1,357 1,483 1,347 1,483 1,764 1,633 1,732' 3,068 21 Bahamas................................................................................................ 478 375 390 375 459 434 412 945 22 Bermuda.............................................................................................. 4 81 2 81 83 2 1 1 23 Brazil.................................................................................................... 10 18 14 18 22 25 20 23 24 British West Indies.............................................................................. 194 514 198 514 694 700 703' 1,442 25 Mexico.................................................................................................. 102 121 122 121 101 101 108 98 26 Venezuela............................................................................................ 49 72 71 72 70 72 74 81 27 Asia............................................................................................................ 784' 793' 759' 793' 807' 752' 707' 718 28 Japan .................................................................................................... 717' 726' 702' 726' 740' 683' 618' 644 29 Middle East oil-exporting countries3.............................................. 32 31 19 31 26 31 37 38 30 Africa........................................................................................................ 5 4 5 4 11 10 11 11 31 Oil-exporting countries4.................................................................... 2 1 1 1 1 1 1 1 32 All other5.................................................................................................. 5 4 5 4 10 15 21 15 Commercial liabilities 33 Europe...................................................................................................... 3,054' 3,639' 3,411' 3,639' 3,716' 4,038' 4,079' 4,075 34 Belgium-Luxembourg........................................................................ 97' 137 105' 137 117 132 109 89 35 France.................................................................................................... 321 467 394 467 503 485 501 582 36 Germany.............................................................................................. 529 548' 554' 548' 545' 727' 693 688 37 Netherlands.......................................................................................... 246 227 206 227 288 245 276 219 38 Switzerland.......................................................................................... 302 310 348 310 382 462 452 493 39 United Kingdom.................................................................................. 824 1,077' 1,015 1,077' 1,012' 1,133' 1,045' 1,012 40 Canada..................................................................................................... 667 868 717 868 720 591 590 784 41 Latin America.......................................................................................... 997 1,323 1,401 1,323 1,253 1,271 1,361 1,244 42 Bahamas................................................................................................ 25 69 89 69 4 26 8 8 43 Bermuda.............................................................................................. 97 32 48 32 47 107 114 73 44 Brazil.................................................................................................... 74 203 186 203 228 151 156 111 45 British West Indies.............................................................................. 53 21 21 21 20 37 12 35 46 Mexico.................................................................................................. 106 257 270 257 235 272 324 326 47 Venezuela............................................................................................ 303 301 359 301 211 210 293 307 48 Asia............................................................................................................ 2,931' 2,905' 2,995' 2,905' 2,950' 3,091' 2,909 2,848 49 Japan .................................................................................................... 448 494' 517 494' 581' 418' 502 645 50 Middle East oil-exporting countries3.............................................. 1,523 1,017 1,069' 1,017 901 1,030' 944 894 51 Africa........................................................................................................ 743 728 775 728 742 875 1,006 814 52 Oil-exporting countries4.................................................................... 312 384 370 384 382 498 633 514 53 All other5.................................................................................................. 203 233 287 233 263 367 396 456 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 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 Sept.' Dec.' Mar.' June' Sept. Dec .p 1 Total....................................................................................................... 27,892 r 31,023 31,022 31,023 32,077 32,024 31,579' 33,560 2 Payable in dollars........................................................................................ 24,905' 27,850 28,345 27,850 29,069 28,962 28,322' 30,719 3 Payable in foreign currencies2.................................................................. 2,988' 3,173 2,677 3,173 3,008 3,062 3,257' 2,841 By type 4 Financial claims.......................................................................................... 16,570' 18,222 19,251 18,222 19,332 18,630 18,285' 18,979 5 Deposits.................................................................................................... 11,111' 12,579 13,808 12,579 13,657 12,786 12,218' 13,223 6 Payable in dollars................................................................................ 10,043' 11,663 12,900 11,663 12,681 11,907 11,056' 12,499 7 Payable in foreign currencies............................................................ 1,068 916 908 916 977 879 1,162' 724 8 Other financial claims............................................................................ 5,459 5,643 5,443 5,643 5,675 5,844 6,067' 5,756 9 Payable in dollars................................................................................ 3,874 3,803 4,030 3,803 4,055 4,103 4,399' 4,063 10 Payable in foreign currencies............................................................ 1,584 1,840 1,413 1,840 1,620 1,740 1,668' 1,693 11 Commercial claims...................................................................................... 11,323' 12,801 11,770 12,801 12,745 13,394 13,294 14,581 12 Trade receivables.................................................................................... 10,764' 12,112 11,058 12,112 12,095 12,685 12,605 13,873 13 Advance payments and other claims.................................................. 559 688 712 688 649 710 688 709 14 Payable in dollars.................................................................................... 10,988' 12,384 11,415 12,384 12,333 12,952 12,867 14,157 15 Payable in foreign currencies................................................................ 335' 416 355 416 411 443 427 424 By area or country Financial claims 16 Europe...................................................................................................... 5,215' 6,146 6,581 6,146 5,843 5,843 5,605' 5,974 17 Belgium-Luxembourg........................................................................ 48 32 33 32 21 23 17' 193 18 France.................................................................................................... 178 177 191 177 290 307 409' 334 19 Germany.............................................................................................. 510 409 393 409 300 190 168 224 20 Netherlands.......................................................................................... 103 53 51 53 39 37 30 32 21 Switzerland.......................................................................................... 98 73 85 73 89 96 41 57 22 United Kingdom.............................................. ................................ 4,021' 5,081 5,540 5,081 4,790 4,863 4,545' 4,865 23 Canada...................................................................................................... 4,484' 4,813 4,767 4,813 4,885 4,783 4,804' 4,698 24 Latin America and Caribbean.............................................................. 5,714' 6,261 6,736 6,261 7,583 6,924 6,757' 7,353 25 Bahamas................................................................................................ 3,001' 2,741 3,338 2,741 3,516 3,080 2,831' 3,233 26 Bermuda.............................................................................................. 80 30 31 30 34 25 65 135 27 Brazil.................................................................................................... 151 163 133 163 128 120 116 96 28 British West Indies.............................................................................. 1,291' 2,001 1,838 2,001 2,591 2,393 2,301' 2,577 29 Mexico.................................................................................................. 163 158 156 158 169 178 192 208 30 Venezuela............................................................................................ 157 143 139 143 134 139 128 114 31 Asia............................................................................................................ 920 706 821 706 713 758 791' 685 32 Japan .................................................................................................... 305 199 225 199 226 253 269 158 33 Middle East oil-exporting countries3.............................................. 18 16 21 16 18 16 20 19 34 Africa........................................................................................................ 181 253 277 253 265 256 260 237 35 Oil-exporting countries4.................................................................... 10 49 41 49 40 35 29 26 36 All other5.................................................................................................. 55 44 69 44 43 65 68 32 Commercial claims 37 Europe...................................................................................................... 3,980' 4,897 4,121 4,897 4,759 4,830 4,655 5,450 38 Belgium-Luxembourg........................................................................ 144 202 179 202 208 258 230 232 39 France.................................................................................................... 609 726 517 726 702 662 707 1,124 40 Germany.............................................................................................. 398' 589 450 589 515 510 569 571 41 Netherlands.......................................................................................... 267 298 261 298 347 297 289 318 42 Switzerland.......................................................................................... 198 269 224 269 349 429 333 345 43 United Kingdom.................................................................................. 824' 901 814 901 926 903 988 929 44 Canada...................................................................................................... 1,094' 846 1,165 846 861 896 929 919 45 Latin America and Caribbean.............................................................. 2,544' 2,850 2,602 2,850 2,986 3,277 3,375 3,796 46 Bahamas................................................................................................ 109 21 26 21 19 19 53 21 47 Bermuda.............................................................................................. 215 197 154 197 135 133 81 148 48 Brazil.................................................................................................... 628' 645 567 645 654 695 710 858 49 British West Indies.............................................................................. 9 16 13 16 11 9 17 34 50 Mexico.................................................................................................. 505' 698 650 698 832 921 981 1,088 51 Venezuela............................................................................................ 291' 343 345 343 350 395 388 411 52 Asia............................................................................................................ 3,080' 3,413 3,113 3,413 3,395 3,576 3,395 3,449 53 Japan .................................................................................................... 976 1,140 1,128 1,140 1,213 1,143 1,094 989 54 Middle East oil-exporting countries3.............................................. 716' 766 700 766 719 830 837 821 55 Africa........................................................................................................ 447 554 549 554 517 566 669 651 56 Oil-exporting countries4.................................................................... 136 133 140 133 114 115 135 151 57 All other5.................................................................................................. 178' 240 220 240 225 249 270 316 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 □ July 1981 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on June 30, 1981 Rate on June 30, 1981 Rate on June 30, 1981 Country Country Country Per­ Month Per­ Month Per­ Month cent effective cent effective cent effective Argentina............................ 311.15 June 1981 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 19.0 Mar. 1981 United Kingdom................ 12.0 Mar. 1981 Brazil.................................... 40.0 June 1980 6.25 Mar. 1981 Venezuela............................ 10.0 July 1980 Canada ................................ 19.08 June 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 wmch 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 1980 1981 Country, or type 1978 1979 1980 Dec. Jan. Feb. Mar. Apr. May June 1 Eurodollars.................................................. 8.74 11.96 14.00 19.47 18.07 17.18 15.36 15.95 19.06 17.86 2 United Kingdom........................................ 9.18 13.60 16.59 14.64 14.20 13.12 12.58 12.26 12.34 12.61 3 Canada ........................................................ 8.52 11.91 13.12 16.83 16.98 17.28 16.85 17.35 18.96 19.28 4 Germany...................................................... 3.67 6.64 9.45 10.11 9.41 10.74 13.44 13.12 13.06 13.05 5 Switzerland.................................................. 0.74 2.04 5.79 6.61 5.68 7.09 8.33 8.67 9.87 10.02 6 Netherlands................................................ 6.53 9.33 10.60 9.69 9.36 9.78 10.61 10.41 11.76 11.81 7 France.......................................................... 8.10 9.44 12.18 11.52 11.38 11.87 12.56 13.00 15.75 18.84 8 Italy.............................................................. 11.40 11.85 17.50 17.47 17.34 17.50 18.22 19.92 19.92 20.49 9 Belgium........................................................ 7.14 10.48 14.06 12.75 12.41 12.52 13.93 17.16 16.90 15.58 10 Japan............................................................ 4.75 6.10 11.45 9.60 9.00 8.52 7.87 6.83 7.22 7.41 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 Dec. Jan. Feb. Mar. Apr. May June 1 Australia/dollar.......................... 114.41 111.77 114.00 116.86 118.19 116.26 116.29 115.32 114.06 114.07 2 Austria/schilling.......................... 6.8958 7.4799 7.7349 7.1549 7.0297 6.6033 6.6959 6.5355 6.1722 5.9502 3 Belgium/franc.............................. 3.1809 3.4098 3.4247 3.1543 3.0962 2.8972 2.8966 2.8220 2.6742 2.5734 4 Canada/dollar.............................. 87.729 85.386 85.530 83.560 83.974 83.442 83.936 83.966 83.265 83.050 5 Denmark/krone.......................... 18.156 19.010 17.766 16.573 16.181 15.152 15.109 14.683 13.864 13.384 6 Finland/markka.......................... 24.337 27.732 26.892 25.903 25.752 24.656 24.612 23.059 23.207 22.511 7 France/franc................................ 22.218 23.504 23.694 21.925 21.539 20.142 20.147 19.548 18.225 17.679 8 Germany/deutsche mark.......... 49.867 54.561 55.089 50.769 49.771 46.757 47.498 46.219 43.601 42.054 9 India/rupee.................................. 12.207 12.265 12.686 12.608 12.567 12.164 12.131 12.060 11.900 11.688 10 Ireland/pound............................ 191.84 204.65 205.77 189.01 185.54 173.31 173.25 168.46 159.49 153.61 11 Italy/lira...................................... .11782 .12035 .11094 .10704 .10478 .09807 .09699 .09280 .08766 .08436 12 Japan/yen.................................... .47981 .45834 .44311 .47747 .49419 .48615 .47897 .46520 .45332 .44621 13 Malaysia/ringgit.......................... 43.210 45.720 45.967 45.406 44.994 44.196 43.830 43.182 42.752 42.720 14 Mexico/peso................................ 4.3896 4.3826 4.3535 4.3071 4.2792 4.2544 4.2238 4.1880 4.1500 4.1066 15 Netherlands/guilder.................... 46.284 49.843 50.369 46.730 45.810 42.870 42.912 41.660 39.224 37.816 16 New Zealand/dollar.................. 103.64 102.23 97.337 95.404 96.137 93.414 91.999 90.273 88.150 85.823 17 Norway/krone............................ 19.079 19.747 20.261 19.370 19.087 18.485 18.540 18.271 17.652 16.907 18 Portugal/escudo.......................... 2.2782 2.0437 1.9980 1.8773 1.8591 1.7722 1.7621 1.7178 1.6449 1.5899 19 South Africa/rand...................... 115.01 118.72 128.54 132.83 133.69 129.27 126.50 123.32 119.35 115.18 20 Spain/peseta................................ 1.3073 1.4896 1.3958 1.2653 1.2409 1.1686 1.1672 1.1395 1.0953 1.0565 21 Sri Lanka/rupee.......................... 6.3834 6.4226 6.1947 5.7379 5.9525 5.5975 5.5527 5.4185 5.4422 5.3970 22 Sweden/krona............................ 22.139 23.323 23.647 22.722 22.490 21.734 21.704 21.309 20.450 19.802 23 Switzerland/franc........................ 56.283 60.121 59.697 56.022 54.907 51.502 52.043 50.664 48.400 48.226 24 United Kingdom/pound............ 191.84 212.24 232.58 234.59 240.29 229.41 223.19 217.53 208.84 197.38 Memo: 25 United States/dollar*................ 92.39 88.09 87.39 90.99 91.38 96.02 96.22 98.80 103.59 106.86 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 Digitized for FRrAevSisEedR a s of August 1978. For description and back data, see “Index of Note. Averages of certified noon buying rates in New York for cable transfers. 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 corporat 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 than Cell not applicable 500,000 when the smallest unit given is millions) General Information Minus signs are used to incidate (1) a decrease, (2) a negative obligations of the Treasury. “State and local government” figure, or (3) an outflow. also includes municipalities, special districts, and other politi­ “U.S. government securities” may include guaranteed cal subdivisions. issues 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 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 All Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1981 .............. July 1981 A78 Commercial bank assets and liabilities, March 31, 1981 ............................................................ July 1981 A72 Special tables begin on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables □ July 1981 4.10 TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Recent Survey Dates Deposits Number of issuing banks Types of deposits, denomination, Millions of dollars Percentage change and original maturity Oct. 29, Jan. 28, Apr. 29, Oct. 29, Jan. 28, Apr. 29, Oct. 29- Jan. 28- 1980 1981 1981 1980 1981 1981 Jan. 28 Apr. 29 Total time and savings deposits.............................................. 14.364 14.346 14.377 713,860 768,145 772,782 7.6 0.6 Savings...................................................................................... 14.364 14.346 14.377 211,128 208,249 204,485 -1.4 - 1.8 Holder Individuals and nonprofit organizations.......................... 14.364 14.346 14.377 196,074 194,430 191,371 - 1.6 Partnerships and corporations operated for profit (other than commercial banks).................................. 10,528 11,031 10,762 10,974 9,714 8,987 -11.5 -7.5 Domestic governmental units............................................ 9.333 9,386 9,277 3,567 3,242 3,130 -9.1 -3.5 All other................................................................................ 1,530 1,720 1,898 512 862 998 68.5 15.7 Interest-bearing time deposits, less than $100,000 ............ 14,246 14,223 14,168 274.507 300,960 310,927 9.6 3.3 Holder Domestic governmental units1.......................................... 9,125 9,187 8,780 2,232 1,952 1,795 -12.5 - 8.1 14 up to 90 days.............................................................. 3,551 3,438 3,595 540 329 280 -39.1 -14.7 90 up to 180 days............................................................ 5,224 5,223 4,814 485 579 474 19.3 -18.2 180 days up to l year...................................................... 3,756 3,998 4,035 335 277 316 -17.3 14.0 1 year and over................................................................ 7.334 6,757 6,910 871 767 724 -11.9 -5.5 Other than domestic governmental units1...................... 14,127 14,102 14,127 85,446 76,835 68,651 - 10.1 -10.7 14 up to 90 days.............................................................. 4,360 3,889 4,199 1,404 1,075 1,137 -23.4 5.8 90 up to 180 days............................................................ 10,583 10,738 10,448 15,262 13,876 12,744 -9.1 - 8.2 180 days up to 1 year...................................................... 7,802 7,655 8,084 1,895 2,336 2,522 23.3 8.0 1 up to 2Vi years.............................................................. 13,597 13,688 13,774 11,108 9,622 8,277 -13.4 -14.0 2Vz up to 4 years.............................................................. 12,636 12,280 12,211 7,606 6,591 5,485 -13.3 -16.8 4 up to 6 years.................................................................. 13,496 13,256 13,474 27,866 24,618 22,197 -11.7 -9.8 6 up to 8 years.................................................................. 11,586 11,320 11,276 17,776 16,405 14,069 -7.7 -14.2 8 years and over.............................................................. 8,111 8,210 8,143 2,528 2,311 2,220 - 8.6 -4.0 IRA and Keogh Plan time deposits, with maturities of 3 years or more or variable ceiling rates................ 10,392 10,432 10,893 5,488 5,703 6,351 3.9 11.4 Money market certificates, $10,000 or more, with ma­ turities of exactly 6 months2...................................... 13,830 13,907 13,960 152,848 184,745 199,378 20.9 7.9 Variable interest rate ceiling time deposits of less than $100,000 with maturities of 2Vi years or more2,3.......................................................................... 13,374 13,280 13,538 28,493 31,725 34,752 11.3 9.5 Interest-bearing time deposits, $100,000 or more.............. 13,163 13,479 13,419 222,513 253,796 251,406 14.1 -.9 Non-interest-bearing time deposits...................................... 1,386 1,407 1,567 4,230 4,235 4,377 .1 3.4 Less than $100,000.............................................................. 1,018 1,055 1,237 910 760 736 -16.6 -3.1 $100,000 or more................................................................ 688 672 674 3,319 3,475 3,641 4.7 4.8 Club accounts (Christmas savings, vacation, and the like) 8,375 9,076 8,974 1,483 906 1,587 -38.9 75.2 1. Excludes all money market certificates, all 2Vi-year and over variable-rate Note. All banks that had either discontinued offering or never offered certain ceiling certificates, IRAs, and Keogh Plan accounts. Such accounts are included types of deposits as of the survey date are not counted as issuing banks. However, in the items below. small amounts of deposits held at banks that had discontinued issuing certain types 2. Excludes accounts held in IRA and Keogh Plans. Such accounts are included of deposits are included in the amounts outstanding. in item above. Details may not add to totals because of rounding. 3. Effective Jan. 1,1980, commercial banks, savings and loan associations, and mutual savings banks are authorized to offer variable ceiling accounts with no required minimum denomination and with maturities of 2Vi years or more. The maximum rate for commercial banks is 3/4 percentage point below the yield on 2Viyear U.S. Treasury securities: the ceiling rate for thrift institutions is V4 percentage point higher than that for commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Time and Savings Deposits A69 4.11 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Jan. 28, 1981, and Apr. 29, 1981, Compared with Previous Survey, by Type of Deposit, by Most Common Rate Paid on New Depos­ its in Each Category, and by Size of Bank Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) All banks All banks Deposit group, original maturity, and distribu­ Less than 100 100 and over Less than 100 100 and over tion of deposits by most common rate Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 Amount of deposits (in millions of dollars) Number of banks, or percentage distribution or percentage distribution Savings deposits Individuals and nonprofit organizations Issuing banks.............................. 14,377 14,346 12,954 12,997 1,423 1,349 191,371 194,430 61,236 66,869 130,135 127,561 Distribution, total................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less.............................. 2.7 2.9 2.7 2.9 2.8 3.0 4.1 3.7 5.2 4.6 3.5 3.1 4.51-5.0 0 3.5 4.0 3.4 3.9 3.9 6.0 3.5 4.5 4.4 5.3 3.0 4.1 5.01-5.2 5 93.8 93.1 93.9 93.3 93.4 91.0 92.5 91.8 90.3 90.1 93.5 92.7 Memo: Paying ceiling rate1....... 93.8 93.1 93.9 93.3 93.4 91.0 92.5 91.8 90.3 90.1 93.5 92.7 Partnerships and corporations Issuing banks.............................. 10,762 11,031 9,361 9,709 1,400 1,322 8,987 9,714 2,742 3,132 6,245 6,581 Distribution, total....................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less.............................. .9 .8 .9 8 .9 1.0 .8 .8 1.0 .9 .7 .8 4.51-5.0 0 3.2 4.0 3.2 4.0 3.9 4.4 4.7 5.6 8.9 11.6 2.8 2.7 5.01-5.2 5 95.8 95.1 95.9 95.2 95.2 94.6 94.5 93.6 90.1 87.5 96.4 96.5 Memo: Paying ceiling rate1........ 95.8 95.1 95.9 95.2 95.2 94.6 94.5 93.6 90.1 87.5 96.4 96.5 Domestic governmental units Issuing banks.............................. 9,264 9,343 8,252 8,381 1,012 962 3,123 3,239 1,650 1,682 1,473 1,556 Distribution, total....................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less.............................. 1.1 .9 1.1 1.0 .6 .5 .3 .2 .4 .3 .3 .2 4.51-5.0 0 1.6 2.2 1.2 2.0 4.8 4.6 3.7 3.7 .2 1.8 7.6 5.7 5.01-5.2 5 97.3 96.8 97.6 97.0 94.6 95.0 96.0 96.1 99.5 97.9 92.0 94.2 Memo: Paying ceiling rate1........ 97.3 96.8 97.6 97.0 94.6 95.0 96.0 96.1 99.5 97.9 92.0 94.2 All other Issuing banks.............................. 1,898 1,693 1,621 1,454 277 239 998 859 790 607 208 252 Distribution, total....................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less.............................. 3.6 3.7 3.3 3.3 5.1 5.6 .4 .5 (2) 1.7 1.6 4.51-5.0 0 .1 1.9 (2) 2.0 .7 1.0 (2) 2.7 (2) 3.8 (2) (2) 5.01-5.2 5 96.3 94.5 96.7 94.6 94.2 93.4 99.6 96.8 100.0 96.2 98.3 98.4 Memo: Paying ceiling rate1........ 96.3 94.5 96.7 94.6 94.2 93.4 99.6 96.8 100.0 96.2 98.3 98.4 Time deposits less than $100,000 Domestic governmental units 14 up to 90 days Issuing banks.......................... 3,588 3,433 2,936 2,851 652 581 267 319 122 169 146 149 Distribution, total................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.00 or less.......................... 18.2 23.5 20.1 26.2 10.0 10.5 7.7 10.0 15.9 16.9 .8 2.3 5.01-5.5 0 31.5 34.8 25.1 29.9 60.3 58.4 33.9 35.6 9.8 14.2 53.9 59.8 5.51-8.0 0 50.3 41.7 54.8 43.9 29.7 31.1 58.5 54.4 74.2 68.9 45.3 37.9 Memo: Paying ceiling rate1........ 42.8 35.9 46.3 37.6 27.5 27.9 51.9 50.5 65.1 64.5 40.9 34.6 90 up to 180 days Issuing banks.......................... 4,809 5,217 4,017 4,454 791 763 471 577 197 274 303 302 Distribution, total................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.00 or less........................... 3.0 3.3 3.6 3.7 .4 .5 (2) .1 .1 .2 (2) (2) 5.01-5.5 0 28.9 22.0 29.4 21.7 26.4 23.8 16.3 13.7 30.5 22.5 6.1 5.8 5.51-8.0 0 68.0 74.8 67.0 74.6 73.2 75.7 83.7 86.2 69.4 77.4 93.9 94.2 Memo: Paying ceiling rate1........ 24.8 26.0 25.4 26.5 21.9 23.0 20.5 22.2 36.5 36.9 9.0 8.8 180 days up to 1 year Issuing banks.......................... 4,035 3,998 3,374 3,358 661 640 316 277 136 104 180 173 Distribution, total................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.00 or less.......................... 4.2 .7 5.1 .8 (2) (2) .8 (2) 2.0 (2) (2) (2) 5.01-5.5 0 22.2 27.5 23.4 29.2 16.6 18.8 12.9 14.7 20.8 25.8 6.8 8.1 5.51-8.0 0 73.5 71.8 71.6 70.0 83.4 81.2 86.3 85.3 77.3 74.2 93.2 91.9 Memo: Paying ceiling rate1........ 25.2 20.6 24.8 19.7 27.5 25.5 27.5 23.1 33.8 30.5 22.7 18.7 1 year and over Issuing banks.......................... 6,869 6,751 5,990 5,939 879 812 392 767 227 605 165 162 Distribution, total................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.50 or less.......................... 1.4 1.7 1.1 1.4 3.6 3.6 2.0 35.7 .4 44.2 4.3 3.8 5.51-6.0 0 47.1 48.3 45.5 47.3 57.3 55.8 56.4 32.2 46.7 21.3 69.9 73.1 6.01-8.0 0 51.6 50.0 53.4 51.3 39.1 40.6 41.5 32.1 52.9 34.5 25.8 23.0 Memo: Paying ceiling rate1........ 19.1 17.4 18.9 17.0 20.1 20.2 13.4 17.8 11.0 18.8 16.7 13.8 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables □ July 1981 4.11 Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) Deposit group, original All banks All banks ma ti t o u n r i o ty f , d a e n p d o s d i i t s s t r b ib y u­ Less than 100 100 and over Less than 100 100 and over most common rate Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 Number of banks or percentage distribution Amount of deposits (in millions of dollars) or percentage distribution Time deposits less than $100,000 (cont.) Other than domestic governmental units 14 up to 90 days Issuing banks.................................. 4,199 3,848 3,231 2,926 969 923 1,137 1,075 135 104 1,002 971 Distribution, total.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.00 or less.................................. 18.6 20.6 20.6 23.3 12.0 11.9 9.9 14.2 29.9 37.9 7.3 11.6 5.01-5.25...................................... 81.4 79.4 79.4 76.7 88.0 88.1 90.1 85.8 70.1 62.1 92.7 88.4 Memo: Paying ceiling rate1.............. 81.4 79.4 79.4 76.7 88.0 88.1 90.1 85.8 70.1 62.1 92.7 88.4 90 up to 180 days Issuing banks.................................. 10,448 10,622 9,070 9,295 1,378 1,328 12,744 13,862 4,094 4,506 8,650 9,355 Distribution, total.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4 5 . . 9 0 9 0 - o 5 r . 5 l 0 e . s .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 ( . 2 3 ) *8 3$ 34 ( . 2 1 ) 20 >8 30 31 0 .7 20 26 ( . 2 6 ) 38 3$ 5.51-5.75...................................... 68.7 67.2 68.0 65.9 73.3 76.1 69.8 68.3 76.0 73.4 66.9 65.8 Memo: Paying ceiling rate1.............. 68.7 67.2 68.0 65.9 73.3 76.1 69.8 68.3 76.0 73.4 66.9 65.8 180 days up to 1 year Issuing oanks.................................. 8,024 7,557 7,060 6,634 964 923 2,499 2,329 1,245 913 1,254 1,416 Distribution, total.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.99 or less.................................. .9 .8 1.0 .9 (2) (2) (2) 5.00-5.50...................................... 44.1 49.5 47.0 53.1 20 *8 «(2} 57.8 71.6 76.7 20 40 5.51-5.75...................................... 55.1 49.7 52.0 46.0 77.7 76.3 53.8 42.2 28.4 23.2 79.1 54.4 Memo: Paying ceiling rate1.............. 55.1 49.7 52.0 46.0 77.7 76.3 53.8 42.2 28.4 23.2 79.1 54.4 1 up to 2Vfyears Issuing banks.................................. 13,768 13,682 12,362 12,354 1,405 1,328 8,273 9,616 5,047 6,120 3,226 3,496 Distribution, total.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.50 or less.................................. .3 .7 .2 .6 1.4 1.4 .6 1.1 .2 .6 1.1 2.1 5.51-6.00...................................... 99.7 99.3 99.8 99.4 98.6 98.6 99.4 98.9 99.8 99.4 98.9 97.9 Memo: Paying ceiling rate1.............. 99.6 98.9 99.8 99.0 98.3 98.2 99.0 98.5 99.8 99.3 97.9 96.9 2Vi years up to 4 years Issuing banks.................................. 12,152 12,228 10,806 10,946 1,347 1,282 5,463 6,568 3,022 3,698 2,440 2,871 Distribution, total.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 6.00 or less................................. 2.1 2.5 2.0 2.4 2.6 3.4 1.2 1.6 .5 1.3 2.1 2.1 6.01-6.50...................................... 97.9 97.5 98.0 97.6 97.4 96.6 98.8 98.4 99.5 98.7 97.9 97.9 Memo: Paying ceiling rate1.............. 97.5 97.5 97.6 97.6 97.0 96.3 97.3 98.2 97.2 98.7 97.5 97.5 4 up to 6 years Issuing banks.................................. 13,465 13,248 12,059 11,915 1,406 1,333 22,156 24,573 11,557 12,955 10,599 11,619 Distribution, total.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 7.00 or less.................................. 8.0 3.8 8.6 3.8 2.9 3.3 4.9 2.2 7.4 2.6 2.2 1.7 7.01-7.25...................................... 92.0 96.2 91.4 96.2 97.1 96.7 95.1 97.8 92.6 97.4 97.8 98.3 Memo: Paying ceiling rate1,3............ 91.9 96.2 91.4 96.2 96.4 95.9 95.0 97.7 92.6 97.4 97.6 98.1 6 up to 8 years Issuing banks.................................. 11,268 11,313 9,920 10,040 1,348 1,273 14,036 16,296 5,655 7,017 8,381 9,280 Distribution, total.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 7.25 or less.................................. 3.2 2.4 3.4 2.4 1.9 2.0 1.2 1.6 .1 1.0 1.9 2.0 7.26-7.50...................................... 96.8 97.6 96.6 97.6 98.1 98.0 98.8 98.4 99.9 99.0 98.1 98.0 Memo: Paying ceiling rate1,3............ 96.6 97.3 96.4 97.2 98.1 98.0 98.8 98.4 99.9 99.0 98.1 98.0 8 years and over Issuing banks.................................. 8,085 8,198 6,890 7,075 1,194 1,123 2,196 2,297 770 781 1,427 1,516 Distribution, total.................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 7.50 or less.................................. 2.4 3.1 2.2 2.6 3.9 6.0 4.7 6.4 .3 .4 7.0 9.5 7.51-7.75...................................... 97.6 96.6 97.8 97.4 96.1 94.0 95.3 93.6 99.7 99.6 93.0 90.5 Memo: Paying ceiling rate1,3.......... 97.6 96.9 97.8 97.4 96.1 94.0 95.3 93.6 99.7 99.6 93.0 90.5 IRA and Keogh Plan time deposits, with maturities of 3 years or more or variable ceiling rates Issuing banks...................................... 10,768 10,308 9,456 9,048 1,313 1,260 6,349 5,701 2,107 1,861 4,242 3,840 Distribution, total.............................. 100.0 (3) 100.0 (3) 100.0 (3) 100.0 (3) 100.0 (3) 100.0 (3) 7.50 or less...................................... 13.4 (3) 14.1 (3) 8.3 (3) 4.0 (3) 6.5 (3) 2.8 (3) 7.51-8.00.......................................... 34.8 (3) 33.1 (3) 46.9 (3) 41.3 (3) 27.2 (3) 48.3 (3) Me 8 m .0 o 1 : - 1 P 4 a . y 2 i 9 n . g .. . c .. e .. i . l . i . n ... g .. . r .. a .. t . e .. 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 2. . 8 8 v (3 ) ) 5 3 2 . . 0 8 ( | 3 3 ) l 44 1 . . 8 2 ( ( 3 3) ) 5 2 4 . .7 6 ( ( 3 3 ) ) 6 4 6 . . 1 3 ( ( 3 3) ) 48 1 . . 9 8 ( ( 3 3 ) ) Money market certificates, $10,000 or more, 6 months Issuing banks...................................... 13,960 13,907 12,538 12,559 1,442 1,348 199,378 184,745 86,830 80,491 112,548 104,254 Distribution, total.............................. 100.0 (3) 100.0 (3) 100.0 (3) 100.0 (3) 100.0 (3) 100.0 (3) 14.00 or less.................................... 19.0 (3) 20.0 (3) 10.1 (3) 11.7 (3) 17.6 (3) 7.1 (3) 14.01-14.29...................................... 81.0 (3) 80.0 (3) 89.9 i3» 88.3 (3) 82.4 (3) 92.9 (3) Memo: paying ceiling rate1.............. 80.0 (3) 78.9 (3) 89.9 P) 87.9 (3) 81.6 « 92.9 (3) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Time and Savings Deposits A71 4.11 Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) All banks Deposit group, original ma ti t o u n r i o ty f , d a e n p d o s d i i t s s t r b ib y u­ Less than 100 100 and over Less than 100 most common rate Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, Apr. 29, Jan. 28, 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 Time deposits less than $100,000 (cont.) Amount of deposits (in millions of dollars) or percentage Variable interest rate ceiling time de­ Number of banks, or percentage distribution distribution posits of less than $100,000 with maturities of 2l/2 years or more Issuing banks......................................... 13,458 13,191 12,058 11,865 1,399 1,326 34,729 31,690 18,360 16,952 16,369 14,738 Dis 1 t 1 r . i 0 b 0 u t o i r o n le , s t s o . t .. a .. l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 3. .0 0 100 3. .0 1 ( ( 3 3 ) ) 100 1. .0 8 100 1 . .0 0 ( ( 3 3 ) ) 10 1 0 . .0 3 ( (3 3) ) 100. . 0 6 1 1 1 1 . . 0 5 1 1 - - 1 1 1 1 . . 5 7 0 5 96. . 1 9 95 1. . 0 8 9$ .2 ( ( 3 3) ) 98. . 3 4 ( (3 3 ) ) 99 ( . 2 4 ) Memo: Paying ceiling rate1................... 96.1 95.8 (3) 98.3 (3) 99.4 Club accounts Issuing banks......................................... 5,699 5,868 5,152 5,395 547 473 780 493 393 262 387 230 Distribution, total.................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.00.................................... 56.4 56.2 58.0 57.3 41.9 43.4 31.2 29.5 35.9 37.0 26.4 21.0 O.Ol^t.OO............................... 25.4 25.5 25.2 25.5 27.1 25.0 31.9 26.7 36.7 30.8 27.1 21.9 4.01-4.5...............................................0 3.6 3.2 2.9 2.4 10.4 11.4 9.8 13.9 3.5 2.8 16.1 26.6 4.51-5.7...............................................5 14.6 15.2 14.0 14.8 20.6 20.2 27.1 29.9 24.0 29.4 30.3 30.5 1. See Bulletin table 1.16 for the ceiling rates that existed at the time of each Moreover, the small amounts of deposits held at banks that had discontinued issuing survey. deposits are not included in the amounts outstanding. Therefore, the deposit amounts 2. Less than .05 percent. shown in table 4.10 may exceed the deposit amounts shown in this table. 3. See the April 1981 bulletin (table 4.11) for a distribution on Jan. 28, 1981, The most common interest rate for each instrument refers to the stated rate per of these accounts by size of bank and by the interest rates paid. annum (before compounding) that banks paid on the largest dollar volume of Note. All banks that either had discontinued offering or had never offered deposit inflows during the 2-week period immediately preceding the survey date. particular types of deposits as of the survey date are not counted as issuing banks. Details may not add to totals because of rounding. 4.12 AVERAGE OF MOST COMMON INTEREST RATES PAID on Various Categories of Time and Savings Deposits at Insured Commercial Banks, April 29, 1981 Bank size (total deposit in millions of dollars) Type of deposit, holder, and original maturity All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 to 1,000 and over Savings and small-denomination time deposits............................................. 9.40 10.18 9.89 9.61 9.33 8.86 8.99 Savings, total................................................................................................. 5.20 5.23 5.18 5.16 5.22 5.19 5.21 Individuals and nonprofit organizations.................................................. 5.20 5.23 5.18 5.16 5.22 5.19 5.21 Partnerships and corporations................................................................. 5.23 5.17 5.23 5.22 5.24 5.19 5.25 Domestic governmental units................................................................... 5.23 5.25 5.24 5.25 5.18 5.20 5.22 All other..................................................................................................... 5.24 5.25 5.25 5.25 5.22 5.16 5.25 Other time deposits in denominations of less than $100,000, total........... 6.66 6.69 6.81 6.47 6.66 6.67 6.64 Domestic governmental units, total.......................................................... 5.20 6.60 7.06 1.96 5.91 6.23 6.30 14 up to 90 days.................................................................................... 6.45 6.85 7.52 6.17 4.98 6.03 6.57 90 up to 180 days.................................................................................. 6.17 6.61 6.62 6.40 5.79 6.04 6.28 180 days up to 1 year............................................................................. 6.46 6.96 6.82 6.03 6.14 6.47 6.73 1 year and over...................................................................................... 3.54 6.36 7.16 .97 7.01 6.59 5.95 Other than domestic government units, total......................................... 6.70 6.69 6.80 6.68 6.68 6.68 6.64 14 up to 90 days.................................................................................... 5.20 5.25 5.16 5.05 5.25 5.09 5.23 90 up to 180 days.................................................................................. 5.67 5.73 5.70 5.65 5.67 5.62 5.68 180 days up to 1 year............................................................................. 5.58 5.57 5.37 5.51 5.66 5.71 5.71 1 up to 2V-, years.................................................................................... 5.98 6.00 6.00 5.93 5.95 5.99 6.00 2V2 up to 4 years.................................................................................... 6.46 6.50 6.45 6.50 6.41 6.49 6.46 4 up to 6 years........................................................................................ 7.22 7.24 7.21 7.24 7.21 7.24 7.20 6 up to 8 years........................................................................................ 7.48 7.50 7.50 7.50 7.48 7.49 7.45 8 years or more...................................................................................... 7.65 7.07 7.75 7.75 7.65 7.69 7.68 IRA and Keogh Plan time deposits, with maturities of 3 years or more or variable ceiling rates......................................................................... 10.16 10.45 10.82 10.52 10.21 10.22 9.55 Money market certificates, exactly 6 months1......................................... 14.24 14.19 14.20 14.24 14.25 14.25 14.26 Variable interest rate ceiling time deposits of less than $100,000 with maturities of 2Vi years or more2 ....................................................... 11.72 11.72 11.75 11.68 11.73 11.64 11.75 Club accounts3................................................................................................ 4.12 2.61 3.42 4.24 4.15 4.49 4.66 1. See note 2 in table 4.10. reported on each type of deposit at each bank by the amount of that type of deposit 2. See notes 2 and 3 in table 4.10. outstanding. All banks that had either discontinued offering or never offered par­ 3. Club accounts are excluded from all of the other categories. ticular types of deposit as of the survey date were excluded from the calculations for those specific types of deposits. Note. The average rates were calculated by weighting the most common rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A ll Special Tables □ July 1981 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1? Consolidated Report of Condition; March 31, 1981 Millions of dollars Banks with foreign offices2 Banks Item Insured without Total F o o ff r i e c i e g s n 3 D o o f m fic es e t s ic f o o f r f e ic ig e n s 1 Total assets.......................................................................................................................................... 1,488,612 1,101,637 365,820 768,509 386,975 2 Cash and due from depository institutions............................................................................................. 295,239 250,495 134,900 115,595 44,744 3 Currency and coin (U.S. and foreign)............................................................................................... 12,685 7,248 319 6,928 5,437 4 Balances with Federal Reserve Banks............................................................................................... 24,570 18,274 475 17,799 6,296 5 Balances with other central banks....................................................................................................... 2,906 2,906 2,802 104 N/A 6 Demand balances with commercial banks in United States........................................................... 37,964 26,832 4,597 22,234 11,132 7 All other balances with depository institutions in United States and with banks in foreign countries........................................................................................................................................... 139,156 129,454 124,421 5,033 9,703 8 Time and savings balances with commercial banks in United States....................................... 8,187 2,779 1,252 1,526 5,408 9 Balances with other depository institutions in United States..................................................... 482 203 117 86 279 10 Balances with banks in foreign countries....................................................................................... 130,487 126,472 123,052 3,420 4,016 11 Foreign branches of other U.S. banks....................................................................................... N/A 26,595 25,396 1,199 N/A 12 Other banks in foreign countries................................................................................................. N/A 99,877 97,656 2,221 N/A 13 Cash items in process of collection..................................................................................................... 77,957 65,781 2,284 63,497 12,176 14 Total securities, loans, and lease financing receivables..................................................................... 1,088,529 762,310 204,893 557,418 326,219 15 Total securities, book value..................................................................................................................... 225,674 126,113 9,878 116,235 99,560 16 U.S. Treasury......................................................................................................................................... 65,946 32,770 392 32,378 33,176 17 Obligations of other U.S. government agencies and corporations................................................. 34,409 16,193 42 16,151 18,216 18 Obligations of states and political subdivisions in United States................................................... 100,630 55,350 682 54,668 45,281 19 All other securities................................................................................................................................. 24,687 21,801 8,762 13,038 2,887 20 Other bonds, notes, and debentures............................................................................................... 11,051 8,976 7,342 1,634 2,075 21 Federal Reserve and corporate stock............................................................................................. 1,742 1,291 166 1,124 451 22 Trading account securities................................................................................................................. 11,895 11,534 1,254 10,280 361 23 Federal funds sold and securities purchased under agreements to resell......................................... 51,902 28,677 356 28,321 23,226 24 Total loans, gross ........................................................................................................................................ 818,121 608,000 194,017 413,983 210,122 25 Less: Unearned income on loans........................................................................................................... 13,035 6,888 1,597 5,292 6,147 26 Allowance for possible loan loss................................................................................................... 8,386 6,057 240 5,817 2,329 27 Equals: Loans, net................................................................................................................................... 796,700 595,055 192,180 402,874 201,645 Total loam, gross, by category 28 Real estate loans......................................................................................................................................... 196,622 118,443 6,985 111,459 78,179 29 Construction and land development................................................................................................... N.A. N.A. N.A. 24,368 8,779 30 Secured by farmland............................................................................................................................... N.A. N.A. N.A. 842 1,260 31 Secured by residential properties......................................................................................................... N.A. N.A. N.A. 64,019 44,046 32 1* to 4-family....................................................................................................................................... N.A. N.A. N.A. 60,642 41,933 33 FHA-insured or VA-guaranteed................................................................................................. N.A. N.A. N.A. 3,802 2,061 34 Conventional................................................................................................................................... N.A. N.A. N.A. 56,841 39,873 35 Multifamily........................................................................................................................................... N.A. N.A. N.A. 3,376 2,113 36 FHA-insured ................................................................................................................................... N.A. N.A. N.A. 219 114 37 Conventional................................................................................................................................... N.A. N.A. N.A. 3,157 1,999 38 Secured by nonfarm nonresidential properties................................................................................. N.A. N.A. N.A. 22,229 24,094 39 Loans to financial institutions................................................................................................................... 80,252 76,101 36,754 39,347 4,151 40 REITs and mortgage companies in United States........................................................................... 5,262 4,558 152 4,406 704 41 Commercial banks in United States................................................................................................... 7,674 5,983 563 5,420 1,690 42 U.S. branches and agencies of foreign banks............................................................................... N.A. 2,540 270 2,271 N.A. 43 Other commercial banks................................................................................................................... N.A. 3,443 294 3,149 N.A. 44 Banks in foreign countries..................................................................................................................... 37,463 37,069 27,621 9,448 394 45 Foreign branches of other U.S. banks........................................................................................... N.A. 713 295 419 N.A. 46 Other..................................................................................................................................................... N.A. 36,356 27,326 9,029 N.A. 47 Finance companies in United States................................................................................................... 10,332 9,878 515 9,363 454 48 Other financial institutions................................................................................................................... 19,522 18,613 7,902 10,711 909 49 Loans for purchasing or carrying securities........................................................................................... 11,699 10,008 1,498 8,510 1,691 50 Brokers and dealers in securities......................................................................................................... 7,446 7,200 1,120 6,080 245 51 Other......................................................................................................................................................... 4,253 2,808 378 2,430 1,445 52 Loans to finance agricultural production and other loans to farmers............................................... 10,012 5,918 675 5,243 4,094 53 Commercial and industrial loans............................................................................................................. 346,080 284,684 114,057 170,627 61,396 54 U.S. addressees (domicile)................................................................................................................... N.A. 171,365 9,176 162,190 N.A. 55 Non-U.S. addressees (domicile).......................................................................................................... N.A. 113,318 104,881 8,437 N.A. 56 Loans to individuals for household, family, and other personal expenditures............................... 128,189 71,085 6,301 64,784 57,104 57 Installment loans..................................................................................................................................... N.A. N.A. N.A. 54,341 47,687 58 Passenger automobiles....................................................................................................................... N.A. N.A. N.A. 16,849 20,550 59 Credit cards and related plans......................................................................................................... N.A. N.A. N.A. 18,709 8,941 60 Retail (charge account) credit card............................................................................................. N.A. N.A. N.A. 15,142 7,637 61 Check and revolving credit........................................................................................................... N.A. N.A. N.A. 3,567 1,305 62 Mobile homes..................................................................................................................................... N.A. N.A. N.A. 3,253 3,416 63 Other installment loans..................................................................................................................... N.A. N.A. N.A. 15,530 14,780 64 Other retail consumer goods......................................................................................................... N.A. N.A. N.A. 4,244 3,299 65 Residential property repair and modernization......................................................................... N.A. N.A. N.A. 3,701 3,703 66 Other installment loans for household, family, and other personal expenditures................ N.A. N.A. N.A. 7,584 7,778 67 Single-payment loans............................................................................................................................. N.A. N.A. N.A. 10,443 9,417 68 All other loans............................................................................................................................................. 45,268 41,761 27,748 14,013 3,507 69 Loans to foreign governments and official institutions................................................................... N.A. 27,528 25,003 2,526 N.A. 70 Other......................................................................................................................................................... N.A. 14,233 2,746 11,487 N.A. 71 Lease financing receivables....................................................................................................................... 14,253 12,466 2,479 9,987 1,787 72 Bank premises, furniture and fixtures, and other assets representing bank premises.................... 19,790 11,973 1,299 10,674 7,817 73 Real estate owned other than bank premises....................................................................................... 1,618 1,076 122 954 542 74 AH other assets........................................................................................................................................... 83,436 75,783 24,606 83,869 7,653 75 Investment in unconsolidated subsidiaries and associated companies........................................... 1,355 1,312 820 491 43 76 Customers’ liability on acceptances outstanding............................................................................... 44,844 44,525 9,119 35,406 319 77 U.S. addressees (domicile)............................................................................................................... N.A. 15,048 N.A. N.A. N.A. 78 Non-U.S. addressees (domicile)....................:................................................................................. N.A. 29,478 N.A. N.A. N.A. 79 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries............ N.A. N.A. 2,933 29,759 N.A. 80 Other......................................................................................................................................................... 37,238 29,946 11,733 18,213 7,292 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.20 Continued Banks with foreign offices2 Banks Item Insured without Total F of o f r i e c i e g s n 3 D o o f m fic e e st s ic f o o f r f e ic ig e n s 81 Total liabilities and equity capital4.................................................................................................... 1,448,612 1,101,637 N.A. N.A. 386,975 82 Total liabilities excluding subordinated debt..................................................................................... 1,404,988 1,047,339 365,521 714,510 357,649 83 Total deposits............................................................................................................................................. 1,141,388 821,465 300,458 521,006 319,924 84 Individuals, partnerships, and corporations....................................................................................... 815,787 535,130 116,319 418,811 280,657 85 U.S. government..................................................................................................................................... 2,428 1,607 198 1,409 821 86 States and political subdivisions in United States............................................................................. 51,420 25,056 530 24,526 26,364 87 Allother................................................................................................................................................... 258,348 249,569 181,373 68,195 8,779 88 Foreign governments and official institutions............................................................................... 38,680 38,521 31,374 7,147 159 89 Commercial banks in United States............................................................................................... 76,617 68,267 17,528 50,740 8,350 90 U.S. branches and agencies of foreign banks........................................................................... N.A. 11,059 3,387 7,672 N.A. 91 Other commercial banks in United States................................................................................. N.A. 57,208 14,140 43,068 N.A. 92 Banks in foreign countries................................................................................................................. 143,054 142,780 132,472 10,308 271 93 Foreign branches of other U.S. banks....................................................................................... N.A. 28,251 28,189 62 N.A. 94 Other banks in foreign countries................................................................................................. N.A. 114,530 104,283 10,246 N.A. 95 Certified and officers’ checks, travelers checks, and letters of credit sold for cash.................... 13,405 10,103 2,038 8,065 3,302 96 Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries............................................................................................. 140,150 112,791 513 112,278 27,359 97 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money................................................................................................................................................... 38,873 35,756 16,634 19,122 3,116 98 Interest-bearing demand notes (note balances) issued to U.S. Treasury..................................... 7,659 5,908 N.A. 5,908 1,751 99 Other liabilities for borrowed money................................................................................................. 31,214 29,848 16,634 13,214 1,365 100 Mortgage indebtedness and liability for capitalized leases................................................................. 1,886 1,230 18 1,212 656 101 All other liabilities..................................................................................................................................... 82,691 76,097 47,897 60,892 6,594 102 Acceptances executed and outstanding............................................................................................... 45,015 44,697 7,812 36,885 319 103 Net due to foreign branches, foreign subsidiaries. Edge and agreement subsidiaries................ N.A. N.A. 29,759 2,933 N.A. 104 Other......................................................................................................................................................... 37,676 31,400 10,326 21,074 6,275 105 Subordinated notes and debentures......................................................................................................... 5,703 4,017 300 3,717 1,686 106 Total equity capital4................................................................................................................................... 77,921 50,281 N.A. N.A. 27,640 107 Preferred stock....................................................................................................................................... 103 10 N.A. N.A. 93 108 Common stock......................................................................................................................................... 15,280 9,829 N.A. N.A. 5,451 109 Surplus..................................................................................................................................................... 27,109 16,734 N.A. N.A. 10,375 110 Undivided profits and reserve for contingencies and other capital reserves................................ 35,428 23,708 N.A. N.A. 11,721 Ill Undivided profits............................................................................................................................... 34,521 23,256 N.A. N.A. 11,265 112 Reserve for contingencies and other capital reserves................................................................... 907 452 N.A. N.A. 456 Memo Deposits in domestic offices 113 Total demand............................................................................................................................................... 301,311 206,526 0 206,526 94,785 114 Total savings............................................................................................................................................... 146,838 75,379 0 75,379 71,459 115 Total time..................................................................................................................................................... 392,781 239,101 0 239,101 153,680 116 Time deposits of $100,000 or more......................................................................................................... 215,542 156,936 0 156,936 58,606 117 Certificates of deposit (CDs) in denominations of $100,000 or more........................................... 199,461 144,385 0 144,385 55,076 118 Other......................................................................................................................................................... 16,081 12,551 0 12,551 3,530 119 Savings deposits authorized for automatic transfer and NOW accounts........................................... 31,706 16,397 0 16,397 15,309 120 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks..................................................................................................................................................... 114,538 54,661 0 54,661 59,877 121 Demand deposits adjusted5....................................................................................................................... 174,823 99,519 0 99,519 75,304 122 Standby letters of credit, total................................................................................................................. 48,210 44,765 10,117 34,648 3,444 123 U.S. addressees (domicile)................................................................................................................... N.A. 30,093 N.A. N.A. N.A. 124 Non-U.S. addressees (domicile)........................................................................................................... N.A. 14,672 N.A. N.A. N.A. 125 Standby letters of credit conveyed to others through participations (included in total standby letters of credit)................................................................................................................................... 2,075 1,959 276 1,683 116 126 Holdings of commercial paper included in total gross loans............................................................... N.A. N.A. N.A. 258 650 Average for 30 calendar days (or calendar month) ending with report date 127 Total assets................................................................................................................................................... 1,461,056 1,080,076 327,528 752,548 380,980 128 Cash and due from depository institutions............................................................................................. 278,860 238,392 130,135 108,257 40,468 129 Federal funds sold ana securities purchased under agreements to resell......................................... 49,835 27,489 549 26,940 22,346 130 Total loans................................................................................................................................................... 796,810 593,647 188,797 404,850 203,163 131 Total deposits............................................................................................................................................. 1,119,804 805,495 300,466 505,029 314,309 132 Time CDs in denominations of $100,000 or more in domestic offices............................................. 200,606 N.A. N.A. 144,944 55,662 133 Federal funds purchased and securities sold under agreements to repurchase............................... 138,029 111,117 896 110,221 26,912 134 Other liabilities for borrowed money..................................................................................................... 32,338 30,890 16,346 14,544 1,448 135 Number of banks....................................................................................................................................... 1,548 181 181 181 1,367 For notes see page All. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables □ July 1981 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over1,6/’ Consolidated Report of Condition; March 31, 1981 Millions of dollars Member banks Non­ Item Insured member Total National State insured 1 Total assets.......................................................................................................................................... 1,155,484 981,419 739,455 241,965 174,064 2 Cash and due from depository institutions............................................................................................. 160,339 143,833 96,953 46,880 16,506 3 Currency and coin (U.S. and foreign)............................................................................................... 12,365 10,554 8,336 2,218 1,812 4 Balances with Federal Reserve Banks............................................................................................... 24,095 23,839 17,518 6,320 256 5 Balances with other central banks....................................................................................................... 104 104 104 * 0 6 Demand balances with commercial banks in United States........................................................... 33,367 26,375 14,546 11,829 6,992 7 All other balances with depository institutions in United States and with banks in foreign countries........................................................................................................................................... 14,736 9,713 7,825 1,887 5,023 8 Time and savings balances with commercial banks in United States....................................... 6,934 4,383 3,740 642 2,552 9 Balances with other depository institutions in United States..................................................... 365 186 138 48 179 10 Balances with banks in foreign countries....................................................................................... 7,436 5,144 3,947 1,197 2,292 11 Cash items in process of collection..................................................................................................... 75,673 73,250 48,625 24,625 2,423 12 Total securities, loans, and lease financing receivables..................................................................... 883,637 735,505 567,808 167,698 148,131 13 Total securities, book value..................................................................................................................... 215,796 171,610 130,430 41,179 44,186 14 U.S. Treasury......................................................................................................................................... 65,554 50,425 38,044 12,381 15,129 15 Obligations of other U.S. government agencies and corporations................................................. 34,367 25,864 20,886 4,979 8,503 16 Obligations of states and political subdivisions in United States................................................... 99,949 81,107 61,881 19,226 18,842 17 All other securities................................................................................................................................. 15,925 14,213 9,620 4,593 1,712 18 Other bonds, notes, and debentures............................................................................................... 3,709 2,327 1,707 620 1,383 19 Federal Reserve and corporate stock............................................................................................. 1,576 1,403 1,053 351 172 20 Trading account securities................................................................................................................. 10,640 10,483 6,861 3,622 157 21 Federal funds sold and securities purchased under agreements to resell......................................... 51,547 43,663 34,933 8,730 7,884 22 Total loans, gross....................................................................................................................................... 624,104 525,169 406,585 118,584 98,936 23 Less: Unearned income on loans........................................................................................................... 11,439 8,674 6,703 1,970 2,765 24 Allowance for possible loan loss................................................................................................... 8,146 7,100 5,317 1,783 1,045 25 Equals: Loans, net................................................................................................................................... 604,520 509,395 394,564 114,830 95,125 Total loans, gross, by category 26 Real estate loans......................................................................................................................................... 189,637 151,369 124,154 27,215 38,268 27 Construction and land development................................................................................................... 33,147 27,973 21,812 6,161 5,174 28 Secured by farmland............................................................................................................................... 2,102 1,566 1,440 127 536 29 Secured by residential properties......................................................................................................... 108,065 87,056 72,748 14,308 21,009 30 1- to 4-family....................................................................................................................................... 102,576 82,686 69,326 13,360 19,890 31 FHA-insured or VA-guaranteed................................................................................................. 5,862 5,199 4,368 831 663 32 Conventional................................................................................................................................... 96,713 77,487 64,958 12,529 19,227 33 Multifamily........................................................................................................................................... 5,489 4,370 3,442 948 1,119 34 FHA-insured................................................................................................................................... 333 257 151 106 76 35 Conventional................................................................................................................................... 5,156 4,113 3,271 843 1,043 36 Secured by nonfarm nonresidential properties................................................................................. 46,323 34,773 28,155 6,619 11,550 37 Loans to financial institutions................................................................................................................... 43,498 40,586 26,492 14,094 2,912 38 REITs and mortgage companies in United States........................................................................... 5,109 4,810 3,645 1,164 299 39 Commercial banks in United States................................................................................................... 7,110 5,620 3,945 1,675 1,490 40 Banks in foreign countries..................................................................................................................... 9,842 9,403 5,235 4,168 439 41 Finance companies in United States................................................................................................... 9,817 9,568 6,119 3,449 248 42 Other financial institutions................................................................................................................... 11,620 11,184 7,547 3,637 436 43 Loans for purchasing or carrying securities........................................................................................... 10,201 9,607 5,290 4,317 594 44 Brokers and dealers in securities......................................................................................................... 6,326 6,056 2,598 3,458 270 45 Other......................................................................................................................................................... 3,875 3,551 2,693 859 324 46 Loans to finance agricultural production and other loans to farmers................................................ 9,337 8,330 7,658 672 1,008 47 Commercial and industrial loans............................................................................................................. 232,023 202,501 152,713 49,788 29,522 48 Loans to individuals for household, family, and other personal expenditures................................ 121,888 96,891 79,239 17,652 24,997 49 Installment loans..................................................................................................................................... 102,028 80,921 66,617 14,304 21,107 50 Passenger automobiles....................................................................................................................... 37,399 28,138 23,114 5,025 9,261 51 Credit cards and related plans......................................................................................................... 27,650 24,757 20,305 4,452 2,893 52 Retail (charge account) credit card............................................................................................. 22,779 20,597 17,146 3,450 2,182 53 Check and revolving credit........................................................................................................... 4,871 4,161 3,159 1,002 711 54 Mobile homes..................................................................................................................................... 6,669 5,331 4,842 489 1,338 55 Other installment loans..................................................................................................................... 30,310 22,694 18,356 4,339 7,615 56 Other retail consumer goods......................................................................................................... 7,543 5,999 5,104 895 1,544 57 Residential property repair and modernization......................................................................... 7,404 5,333 4,350 983 2,071 58 Other installment loans for household, family, and other personal expenditures................ 15,362 11,362 8,901 2,461 4,000 59 Single-payment loans............................................................................................................................. 19,860 15,970 12,622 3,348 3,890 60 All other loans............................................................................................................................................. 17,520 15,885 11,039 4,846 1,635 61 Lease financing receivables....................................................................................................................... 11,774 10,839 7,880 2,958 936 62 Bank premises, furniture and fixtures, and other assets representing bank premises.................... 18,490 14,945 12,169 2,777 3,545 63 Real estate owned other than bank premises....................................................................................... 1,496 1,246 996 250 249 64 All other assets........................................................................................................................................... 91,522 85,889 61,529 24,360 5,633 65 Investment in unconsolidated subsidiaries and associated companies........................................... 534 506 481 26 28 66 Customers’ liability on acceptances outstanding............................................................................... 35,725 35,078 25,237 9,841 647 67 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries............ 29,759 28,201 19,378 8,823 1,557 68 Other...;................................................................................................................................................. 25,505 22,104 16,433 5,671 3,401 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.21 Continued Member banks Non- Item Insured member Total National State insured 69 Total liabilities and equity capital?.................................................................................................... 1,155,484 981,419 739,455 241,965 174,064 70 Total liabilities excluding subordinated debt..................................................................................... 1,072,159 911,133 686,131 225,002 161,026 71 Total deposits............................................................................................................................................. 840,930 693,839 529,008 164,830 147,091 72 Individuals, partnerships, and corporations....................................................................................... 699,468 570,052 447,336 122,716 129,416 73 U.S. government..................................................................................................................................... 2,230 1,849 1,483 366 382 74 States and political subdivisions in United States............................................................................. 50,890 38,219 31,631 6,588 12,671 75 All other................................................................................................................................................... 76,974 74,229 42,643 31,586 2,745 76 Foreign governments and official institutions.............................. ............................................. 7,306 7,069 4,826 2,243 237 77 Commercial banks in United States............................................................................................... 59,089 56,943 33,510 23,432 2,147 78 Banks in foreign countries................................................................................................................. 10,579 10,218 4,306 5,911 361 79 Certified and officers’ checks, travelers checks, and letters of credit sold for cash.................... 11,367 9,490 5,916 3,574 1,878 80 Demand deposits......................................................................................................................................... 301,311 260,254 182,694 77,560 41,057 81 Mutual savings banks............................................................................................................................. 998 855 495 360 142 82 Other individuals, partnerships, and corporations........................................................................... 217,198 181,906 137,046 44,860 35,292 83 U.S. government..................................................................................................................................... 1,616 1,387 1,135 253 229 84 States and political subdivisions in United States............................................................................. 9,871 7,898 6,415 1,483 1,973 85 All other................................................................................................................................................... 60,261 58,718 31,687 27,031 1,543 86 Foreign governments and official institutions............................................................................... 1,553 1,487 807 681 65 87 Commercial banks in United States............................................................................................... 49,199 47,943 27,179 20,764 1,256 88 Banks in foreign countries................................................................................................................. 9,509 9,288 3,701 5,586 221 89 Certified and officers’ checks, travelers checks, and letters of credit sold for cash.................... 11,367 9,490 5,916 3,574 1,878 90 Time deposits............................................................................................................................................... 392,781 318,156 253,306 64,850 74,625 91 Mutual savings banks............................................................................................................................. 616 611 446 164 6 92 Other individuals, partnerships, and corporations........................................................................... 335,416 272,506 217,279 55,227 62,910 93 U.S. government..................................................................................................................................... 558 410 298 112 148 94 States and political subdivisions in United States............................................................................. 39,511 29,151 24,358 4,792 10,360 95 All other................................................................................................................................................... 16,680 15,479 10,924 4,555 1,202 96 Foreign governments and official institutions............................................................................... 5,739 5,568 4,007 1,561 171 97 Commercial banks in United States............................................................................................... 9,872 8,981 6,313 2,668 891 98 Banks in foreign countries................................................................................................................. 1,069 930 605 325 139 99 Savings deposits........................................................................................................................................... 146,838 115,428 93,009 22,420 31,409 100 Mutual savings banks............................................................................................................................. * * * 0 0 101 Other individuals, partnerships, and corporations........................................................................... 145,240 114,174 92,069 22,105 31,066 102 Individuals and nonprofit organizations......................................................................................... 138,611 109,323 88,149 21,174 29,288 103 Corporations and other profit organizations................................................................................. 6,630 4,851 3,921 931 1,778 104 U.S. government..................................................................................................................................... 56 51 50 1 5 105 States and political subdivisions in United States............................................................................. 1,508 1,171 858 312 338 106 Allother................................................................................................................................................... 33 32 31 1 1 107 Foreign governments and official institutions............................................................................... 14 14 13 1 1 108 Commercial banks in United States............................................................................................... 19 18 18 * * 109 Banks in foreign countries................................................................................................................. * * * * * 110 Federal funds purchased and securities sold under agreements to repurchase............................... 139,637 130,987 95,988 34,999 8,650 Ill Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money................................................................................................................................................... 22,238 20,949 12,683 8,266 1,289 112 Interest-bearing demand notes (note balances) issued to U.S. Treasury..................................... 7,659 7,054 5,207 1,847 605 113 Other liabilities for borrowed money................................................................................................. 14,579 13,894 7,476 6,419 685 114 Mortgage indebtedness and liability for capitalized leases................................................................. 1,868 1,531 1,264 266 337 115 All other liabilities..................................................................................................................................... 67,486 63,829 47,188 16,641 3,657 116 Acceptances executed and outstanding............................................................................................... 37,203 36,556 26,642 9,914 648 117 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries................ 2,933 2,822 2,645 177 111 118 Other......................................................................................................................................................... 27,350 24,451 17,901 6,550 2,899 119 Subordinated notes and debentures......................................................................................................... 5,403 4,286 3,093 1,193 1,117 120 Total equity capital?........................................................................................................................... 77,922 66,000 50,230 15,770 11,922 Memo 121 Time deposits of $100,000 or more......................................................................................................... 215,542 182,147 140,067 42,080 33,395 122 Certificates of deposit (CDs) in denominations of $100,000 or more........................................... 199,461 167,573 128,874 38,698 31,888 123 Other...................................................................... ............................................................................... 16,081 14,574 11,192 3,382 1,507 124 Savings deposits authorized for automatic transfer and NOW accounts........................................... 31,706 24,956 20,354 4,602 6,750 125 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks..................................................................................................................................................... 114,538 88,515 74,019 14,496 26,023 126 Demand deposits adjusted5....................................................................................................................... 174,823 137,674 105,755 31,919 37,149 127 Total standby letters of credit................................................................................................................... 38,093 36,189 24,893 11,295 1,904 128 Conveyed to others through participation (included in standby letters of credit)........................ 1,799 1,751 1,187 564 48 129 Holdings of commercial paper included in total gross loans............................................................... 908 565 394 170 344 Average for 30 calendar days (or calendar month) ending with report date 130 Total assets................................................................................................................................................... 1,133,528 961,286 725,511 235,774 172,242 131 Cash and due from depository institutions............................................................................................. 148,724 134,172 90,966 43,206 14,552 132 Federal funds sold and securities purchased under agreements to resell......................................... 49,286 41,928 31,722 10,205 7,358 133 Total loans................................................................................................................................................... 608,014 512,417 396,859 115,558 95,597 134 Total deposits............................................................................................................................................. 819,338 674,804 514,717 160,087 144,534 135 Time CDs in denominations of $100,000 or more in domestic offices............................................. 200,606 168,388 128,810 39,578 32,218 136 Federal funds purchased and securities sold under agreements to repurchase............................... 137,133 128,817 96,696 32,122 8,316 137 Other liabilities for borrowed money..................................................................................................... 15,992 15,245 7,903 7,342 747 138 Number of banks....................................................................................................................................... 1,548 984 818 166 564 For notes see page All. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables □ July 1981 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1/7 Consolidated Report of Condition; March 31, 1981 Millions of dollars Member banks Non­ Item Insured member Total National State insured 1,534,652 1,138,825 872,387 266,439 395,827 2 Cash and due from depository institutions............................................................................................... 192,691 159,083 110,017 49,066 33,608 3 Currency and coin (U.S. and foreign)................................................................................................. 17,283 12,804 10,243 2,561 4,480 4 Balances with Federal Reserve Banks................................................................................................. 27,449 27,152 20,331 6,821 298 5 Balances with other central banks......................................................................................................... 104 104 104 0 6 Demand balances with commercial banks in United States............................................................. 47,843 31,016 18,535 12,481 16,827 7 All other balances with depository institutions in United States and banks in foreign countries 21,605 12,888 10,632 2,256 8,717 8 Cash items in process of collection....................................................................................................... 78,406 75,119 50,172 24,947 3,287 9 Total securities, loans, and lease financing receivables....................................................................... 1,215,904 871,700 682,595 189,105 344,204 10 Total securities, book value....................................................................................................................... 327,720 217,756 169,465 48,292 109,963 11 U.S. Treasury........................................................................................................................................... 103,813 65,969 51,017 14,952 37,844 12 Obligations of other U.S. government agencies and corporations................................................... 61,062 36,380 29,780 6,600 24,682 13 Obligations of states and political subdivisions in United States..................................................... 144,906 100,351 78,350 22,001 44,556 14 All other securities................................................................................................................................... 17,938 15,057 10,317 4,740 2,881 15 Federal funds sold and securities purchased under agreements to resell........................................... 76,168 53,904 43,605 10,299 22,264 16 Total loans, gross......................................................................................................................................... 828,215 608,439 476,586 131,852 219,776 17 Less: Unearned income on loans............................................................................................................. 18,166 11,466 9,067 2,399 6,700 18 Allowance for possible loan loss..................................................................................................... 10,130 7,941 6,032 1,909 2,189 19 Equals: Loans, net..................................................................................................................................... 799,919 589,032 461,487 127,545 210,887 Total loans, gross, by category 20 Real estate loans........................................................................................................................................... 265,231 182,254 149,758 32,496 82,977 21 Construction and land development..................................................................................................... 38,177 29,746 23,366 6,380 8,431 22 Secured by farmland.......... ................................................................................................................... 8,467 3,709 3,131 578 4,758 23 Secured by residential properties........................................................................................................... 153,761 106,560 88,801 17,759 47,201 24 1- to 4-family......................................................................................................................................... 147,054 101,725 84,993 16,733 45,329 25 Multifamily............................................................................................................................................. 6,707 4,835 3,808 1,026 1,872 26 Secured by nonfarm nonresidential properties................................................................................... 64,827 42,240 34,461 7,779 22,587 27 Loans to financial institutions..................................................................................................................... 45,048 41,290 27,128 14,163 3,758 28 Loans for purchasing or carrying securities............................................................................................. 10,758 9,800 5,456 4,344 958 29 Loans to finance agricultural production and other loans to farmers................................................. 31,336 16,797 14,607 2,191 14,538 30 Commercial and industrial loans............................................................................................................... 279,195 221,739 169,190 52,549 57,455 31 Loans to individuals for household, family, and other personal expenditures................................. 175,883 119,311 98,274 21,037 56,572 32 Installment loans....................................................................................................................................... 143,412 98,234 81,365 16,869 45,177 33 Passenger automobiles......................................................................................................................... 59,915 37,546 31,142 6,404 22,370 34 Credit cards and related plans........................................................................................................... 28,775 25,274 20,763 4,511 3,501 35 Mobile homes....................................................................................................................................... 10,043 6,851 6,150 700 3,192 36 All other installment loans for household, family, and other personal expenditures................ 44,678 28,564 23,310 5,254 16,114 37 Single-payment loans............................................................................................................................... 32,471 21,077 16,909 4,168 11,395 38 All other loans.......................................................................................................................................— 20,765 17,246 12,174 5,073 3,518 39 Lease financing receivables......................................................................................................................... 12,098 11,008 8,038 2,970 1,090 40 Bank premises, furniture and fixtures, and other assets representing bank premises...................... 26,039 18,057 14,806 3,251 7,982 41 Real estate owned other than bank premises......................................................................................... 2,077 1,453 1,164 289 624 42 All other assets............................................................................................................................................. 97,940 88,532 63,805 24,727 9,408 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A ll 4.22 Continued Member banks Non­ Item Insured member Total National State insured 43 Total liabilities and equity capital?...................................................................................................... 1,534,652 1,138,825 872,387 266,439 395,827 44 Total liabilities excluding subordinated debt....................................................................................... 1,417,908 1,054,678 807,381 247,297 363,231 45 Total deposits............................................................................................................................................... 1,175,089 831,842 645,520 186,323 343,247 46 Individuals, partnerships, and corporations......................................................................................... 999,899 694,824 552,573 142,251 305,075 47 U.S. government....................................................................................................................................... 3,008 2,168 1,763 405 841 48 States and political subdivisions in United States............................................................................... 79,730 49,323 41,062 8,261 30,407 78,150 74,840 43,180 31,659 3,310 50 Certified and officers’ checks, travelers checks, and letters of credit sold for cash...................... 14,301 10,687 6,941 3,746 3,614 51 Demand deposits............................................................................................................................................ 386,200 295,649 212,921 82,728 90,551 52 Individuals, partnerships, and corporations......................................................................................... 293,138 213,854 164,086 49,768 79,284 53 U.S. government....................................................................................................................................... 2,185 1,627 1,345 282 558 54 States and political subdivisions in United States............................................................................... 15,491 10,262 8,426 1,836 5,229 55 All other..................................................................................................................................................... 61,084 59,219 32,124 27,095 1,866 56 Certified and officers’ checks, travelers checks, and letters of credit sold for cash...................... 14,301 10,687 6,941 3,746 3,614 57 Time deposits................................................................................................................................................. 569,154 389,441 313,216 76,226 179,712 58 Other individuals, partnerships, and corporations............................................................................. 490,486 336,245 270,700 64,545 154,240 59 U.S. government....................................................................................................................................... 753 482 361 121 270 60 States and political subdivisions in United States............................................................................... 60,918 37,143 31,147 5,997 23,775 61 All other..................................................................................................................................................... 16,997 15,570 11,008 4,562 1,427 62 Savings deposits.............................................................................................................................................. 219,735 146,752 119,383 27,369 72,983 63 Corporations and other profit organizations....................................................................................... 9,528 6,009 4,895 1,114 3,519 64 Other individuals, partnerships, and corporations............................................................................. 206,747 138,716 112,892 25,824 68,031 65 U.S. government....................................................................................................................................... 70 59 57 1 12 66 States and political subdivisions in United States............................................................................... 3,321 1,918 1,490 428 1,403 67 All other..................................................................................................................................................... 68 51 49 2 18 68 Federal funds purchased and securities sold under agreements to repurchase.................................. 144,621 133,682 98,300 35,382 10,939 69 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money.................................................................................................................................... 23,139 21,412 13,077 8,335 1,727 70 Mortgage indebtedness and liability for capitalized leases................................................................... 2,231 1,663 1,369 294 568 71 All other liabilities........................................................................................................................................ 72,828 66,079 49,115 16,964 6,750 72 Subordinated notes and debentures........................................................................................................... 6,117 4,573 3,350 1,224 1,544 73 Total equity capital?............................................................................................................................. 110,627 79,574 61,656 17,918 31,053 Memo 74 Time deposits of $100,000 or more........................................................................................................... 255,861 197,636 153,415 44,221 58,226 75 Certificates of deposit (CDs) in denominations of $100,000 or more............................................. 236,550 181,790 141,116 40,675 54,759 76 Other............................................................................................................................................................ 19,312 15,845 12,299 3,546 3,467 77 Savings deposits authorized for automatic transfer and now accounts............................................... 48,450 32,061 26,479 5,582 16,390 78 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks........................................................................................................................................................ 198,908 123,061 103,050 20,011 75,847 79 Demand deposits adjusted5......................................................................................................................... 255,592 170,459 133,789 36,670 85,133 80 Total standby letters of credit..................................................................................................................... 39,318 36,706 25,345 11,361 2,612 Average for 30 calendar days (or calendar month) ending with report date 81 Total deposits................................................................................................................................................ 1,149,443 811,028 629,653 181,375 338,415 82 Number of banks......................................................................................................................................... 14,433 5,445 4,444 1,001 8,988 1. Effective Dec. 31, 1978, the report of condition was substantially revised for 4. Equity capital is not allocated between the domestic and foreign offices of commercial banks. Commercial banks with assets less than $100 million and with banks with foreign offices. domestic offices only were given the option to complete either the abbreviated or 5. Demand deposits adjusted equal demand deposits other than domestic com­ the standard set of reports. Banks with foreign offices began reporting in greater mercial interbank and U.S. government less cash items in process of collection. detail on a consolidated domestic and foreign basis. These tables reflect the varying 6. Domestic offices exclude branches in foreign countries and in U.S. territories levels of reporting detail. and possessions, subsidiaries in foreign countries, and all offices of Edge Act and 2. All transactions between domestic and foreign offices of a bank are reported agreement corporations wherever located. in “Net due from” and “Net due to” (lines 79 and 103). All other lines represent 7. This item contains the capital accounts of U.S. banks that have no Edge or transactions with parties other than the domestic and foreign offices of each bank. foreign operations and reflects the difference between domestic office assets and Since these intra-office transactions are erased by consolidation, total assets and liabilities of U.S. banks with Edge or foreign operations excluding the capital liabilities are the sum of all except intra-office balances. accounts of their Edge or foreign subsidiaries. 3. Foreign offices include branches in foreign countries and in U.S. territories N.A. This item is unavailable for all or some of the banks because of the lesser and possessions, subsidiaries in foreign countries, and all offices of Edge Act and detail available from banks without foreign offices, the inapplicability of certain agreement corporations wherever located. items to banks that have only domestic offices, and the absence of detail on a fully consolidated basis for banks with foreign offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables □ July 1981 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, Mar. 31, 19811 Millions of dollars Item Total A B l r l a s n t c a h te e s s 2 Agencies Branc N h e e w s 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 ll a i n n c o h is e , s Bran O c t h h e e s r st A at g e e s n 2 cies 1 Total assets4..................................................................... 152,909 94,311 58,598 82,284 23,492 32,414 6,584 5,412 2,723 2 Cash and due from depository institutions...................... 20,247 17,064 3,184 16,233 2,881 238 701 126 68 3 Currency and coin (U.S. and foreign)........................ 18 15 2 13 1 1 1 1 0 4 Balances with Federal Reserve Banks........................ 472 384 88 340 55 24 20 24 8 5 Balances with other central banks................................ . 0 0 0 0 0 0 0 0 0 6 Demand balances with commercial banks in United States.......................................................................... 10,115 8,176 1,939 8,108 1,849 83 36 32 8 7 All other balances with depository institutions in United States and with banks in foreign countries.................................................................... 8,454 7,446 1,009 6,734 850 111 641 68 51 8 Time and savings balances with commercial banks in United States.................................................... 4,992 4,480 511 4,239 457 44 170 68 14 9 Balances with other depository institutions in United States........................................................ 386 386 0 386 0 0 0 0 0 10 Balances with banks in foreign countries................ 3,077 2,579 497 2,109 394 67 471 0 37 11 Foreign branches of U.S. banks............................ 835 533 302 409 284 0 125 0 18 12 Other banks in foreign countries.......................... 2,241 2,046 195 1,700 110 67 346 0 19 13 Cash items in process of collection.............................. 1,188 1,043 145 1,039 126 19 3 1 0 14 Total securities, loans, and lease financing receivables.. 97,046 63,731 33,315 54,755 15,357 15,459 5,512 3,442 2,521 15 Total securities, book value.............................................. 3,494 2,0% 1,399 1,835 1,279 121 176 84 0 16 U.S. Treasury.................................................................. 2,158 1,256 902 1,119 852 50 58 79 0 17 Obligations of other U.S. government agencies and corporations....................3..4..0...................8..2.................258 75 237 20 5 2 0 18 Obligations of states and political subdivisions in United States............................................................ 179 177 2 151 1 2 23 2 0 19 Other bonds, notes, debentures, and corporate stock 817 580 237 489 189 49 90 0 0 20 Federal funds sold and securities purchased under agreements to resell.................................................... 5,513 3,435 2,078 3,289 1,614 457 114 31 7 By holder 21 Commercial banks in United States............................ 4,836 2,970 1,866 2,855 1,409 449 84 31 7 22 Others................................................................................ 677 464 212 434 205 7 30 0 0 By type 23 One-day maturity or continuing contract.................... 5,481 3,423 2,058 3,279 1,593 457 113 31 7 24 Securities purchased under agreements to resell... 75 51 23 34 2 22 0 17 0 25 Other.............................................................................. 5,406 3,372 2,034 3,245 1,592 435 113 14 7 26 Other securities purchased under agreements to resell.......................................................................... 32 11 21 10 21 0 1 0 0 27 Total loans, gross................................................................ 93,692 61,721 31,970 53,001 14,098 15,371 5,339 3,360 2,523 28 Less: Unearned income on loans...................................... 141 87 54 82 20 33 3 2 2 29 Equals: Loans, net............................................................ 93,551 61,634 31,917 52,919 14,079 15,338 5,336 3,358 2,521 Total loans, gross, by category 30 Real estate loans.................................................................. 2,626 279 2,347 106 920 901 22 136 541 31 Loans to financial institutions............................................ 31,602 24,556 7,046 22,378 3,038 3,895 2,001 176 113 32 Commercial banks in United States............................ 19,718 15,365 4,353 13,807 1,536 2,814 1,391 166 4 33 U.S. branches and agencies of other foreign banks 18,962 14,750 4,212 13,213 1,494 2,718 1,376 161 0 34 Other commercial banks............................................ 756 615 141 593 42 96 15 5 4 35 Banks in foreign countries.............................................. 11,000 8,536 2,464 8,073 1,340 1,037 461 3 87 36 Foreign branches of U.S. banks................................ 972 753 219 692 121 98 60 0 0 37 Other.............................................................................. 10,028 7,784 2,245 7,380 1,218 939 401 3 87 38 Other financial institutions............................................ 883 655 228 499 162 44 149 7 22 39 Loans for purchasing or carrying securities.................... 750 515 235 514 186 49 0 1 0 40 Commercial and industrial loans...................................... 49,009 28,983 20,026 22,920 8,473 9,764 3,069 2,990 1,793 41 U.S. addressees (domicile)............................................ 30,040 16,990 13,050 12,190 5,074 6,422 2,679 2,116 1,558 42 Non-U.S. addressees (domicile).................................... 18,970 11,993 6,977 10,729 3,400 3,342 390 874 235 43 Loans to individuals for household, family, and other personal expenditures.................................................. 143 83 61 53 29 33 7 20 1 44 All other loans...................................................................... 9,562 7,305 2,256 7,029 1,452 730 239 37 75 45 Loans to foreign governments and official institutions................................................................ 7,898 5,775 2,123 5,539 1,350 709 217 19 65 46 Other.................................................................................. 1,663 1,530 133 1,490 102 21 22 18 10 47 Lease financing receivables................................................ 1 1 0 1 0 0 0 0 0 48 All other assets.................................................................... 30,102 10,082 20,020 8,007 3,640 16,260 256 1,812 126 49 Customers’ liability on acceptances outstanding........ 8,462 4,542 3,920 4,475 2,982 883 46 21 56 50 U.S. addressees (domicile)........................................ 4,257 2,639 1,619 2,601 860 728 33 4 32 51 Non-U.S. addressees (domicile)................................ 4,205 1,904 2,301 1,874 2,122 155 12 17 24 52 Net due from related banking institutions5................ 16,893 2,282 14,612 569 0 14,605 0 1,713 6 53 Other.................................................................................. 4,747 3,258 1,489 2,963 658 772 210 78 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 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 h e e w s 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 ll a i 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................................................................ 152,909 94,311 58,598 82,284 23,492 32,414 6,584 5,412 2,723 55Total deposits and credit balances.................................... 44,611 40,366 4,245 35,790 3,323 771 1,239 3,328 160 56 Individuals, partnerships, and corporations................ 25,676 24,813 863 20,557 236 504 1,062 3,186 132 57 U.S. addressees (domicile)........................................ 22,670 22,486 184 18,405 106 61 949 3,125 23 58 Non-U.S. addressees (domicile)................................ 3,007 2,327 680 2,151 129 442 114 60 110 59 U.S. government, states, and political subdivisions in United States........................................................ 116 116 0 27 0 0 2 88 0 60 All other............................................................................ 18,818 15,437 3,381 15,206 3,087 267 175 55 28 61 Foreign governments and official institutions........ 2,761 2,512 249 2,409 71 177 81 23 0 62 Commercial banks in United States........................ 6,775 5,411 1,364 5,343 1,349 1 63 5 15 63 U.S. branches and agencies of other foreign banks.................................................................. 1,272 1,255 17 1,200 2 0 55 0 15 64 Other commercial banks in United States.......... 5,503 4,156 1,347 4,143 1,347 0 9 5 0 65 Banks in foreign countries.......................................... 3,022 2,700 321 2,678 258 60 5 18 3 66 Foreign branches of U.S. banks............................ 75 72 2 72 1 2 0 0 0 67 Other banks in foreign countries.......................... 2,947 2,628 319 2,605 257 59 5 18 3 68 Certified and officers’ checks, travelers checks, and letters of credit sold for cash...................... 6,260 4,813 1,447 4,777 1,409 29 26 10 9 69 Demand deposits.................................................................. 12,177 10,686 1,491 10,465 1,409 76 113 106 9 70 Individuals, partnerships, and corporations................ 1,461 1,436 25 1,259 0 28 82 92 0 71 U.S. addressees (domicile)........................................ 890 888 2 726 0 5 75 84 0 72 Non-U.S. addressees (domicile)................................ 571 548 23 534 0 23 7 7 0 73 U.S. government, states, and political subdivisions in United States........................................................ 13 13 0 12 0 0 0 0 0 74 All other............................................................................ 10,703 9,238 1,465 9,194 1,409 48 30 14 9 75 Foreign governments and official institutions........ 470 459 11 456 0 11 1 2 0 76 Commercial banks in United States........................ 3,121 3,121 0 3,119 0 0 1 1 0 77 U.S. branches and agencies of other foreign banks.................................................................. 406 406 0 406 0 0 0 0 0 78 Other commercial banks in United States.......... 2,715 2,715 0 2,713 0 0 1 1 0 79 Banks in foreign countries.......................................... 853 844 9 842 0 8 3 0 0 80 Certified and officers’ checks, travelers checks, and letters of credit sold for cash...................... 6,260 4,813 1,447 4,777 1,409 29 26 10 9 81 Time deposits........................................................................ 30,042 29,429 612 25,127 0 617 1,106 3,192 0 82 Individuals, partnerships, and corporations................ 23,523 23,127 396 19,100 0 400 960 3,063 0 83 U.S. addressees (domicile)........................................ 21,409 21,408 1 17,538 0 3 855 3,013 0 84 Non-U.S. addressees (domicile)................................ 2,114 1,719 395 1,561 0 397 105 50 0 85 U.S. government, states, and political subdivisions in United States........................................................ 103 103 0 15 0 0 1 87 0 86 All other............................................................................ 6,416 6,199 217 6,013 0 217 145 41 0 87 Foreign governments and official institutions........ 2,218 2,053 165 1,953 0 165 80 20 0 88 Commercial banks in United States........................ 2,290 2,290 0 2,224 0 0 63 4 0 89 U.S. branches and agencies of other foreign banks.................................................................. 849 849 0 794 0 0 55 0 0 90 Other commercial banks in United States.......... 1,441 1,441 0 1,429 0 0 8 4 0 91 Banks in foreign countries.......................................... 1,906 1,856 51 1,836 0 51 2 18 0 92 Savings deposits.................................................................... 272 250 21 198 0 23 21 30 0 93 Individuals, partnerships, and corporations................ 271 250 21 197 0 23 21 30 0 94 U.S. addressees (domicile)........................................ 190 190 0 141 0 2 19 28 0 95 Non-U.S. addressees (domicile)................................ 82 60 21 56 0 22 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.................................................................... 2,120 0 2,120 0 1,914 54 0 0 152 99 Individuals, partnerships, and corporations................ 420 0 420 0 236 52 0 0 133 100 U.S. addressees (domicile)........................................ 181 0 181 0 106 51 0 0 23 101 Non-U.S. addressees (domicile)................................ 240 0 240 0 129 0 0 0 110 102 U.S. government, states, and political subdivisions in United States........................................................ 0 0 0 0 0 0 0 0 0 103 All other............................................................................ 1,699 0 1,699 0 1,678 3 0 0 18 104 Foreign governments and official institutions........ 72 0 72 0 71 1 0 0 0 105 Commercial banks in United States........................ 1,364 0 1,364 0 1,349 0 0 0 15 106 U.S. branches and agencies of other foreign banks.................................................................. 17 0 17 0 2 0 0 0 15 107 Other commercial banks in United States.......... 1,347 0 1,347 0 1,347 0 0 0 0 108 Banks in foreign countries.......................................... 262 0 262 0 258 1 0 0 3 For notes see page A78. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables □ July 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.................................................................... 11,707 6,717 4,990 6,034 2,158 2,443 543 139 390 By holder 110 Commercial banks in United States............................ 10,221 5,973 4,248 5,315 1,736 2,408 519 138 105 Ill Others................................................................................ 1,486 743 742 719 422 36 24 1 285 By type 112 One-day maturity or continuing contract.................... 11,419 6,429 4,990 5,769 2,158 2,443 519 139 390 113 Securities sold under agreements to repurchase ... 610 569 41 555 16 25 0 14 0 114 Other.............................................................................. 10,809 5,860 4,949 5,215 2,142 2,418 519 125 390 115 Other securities sold under agreements to repurchase................................................................ 288 288 0 264 0 0 24 0 0 116 Other liabilities for borrowed money.............................. 45,710 16,393 29,318 14,414 4,936 24,295 1,391 587 88 117 Owed to banks................................................................ 42,417 14,722 27,695 12,898 4,682 22,937 1,365 459 77 118 U.S. addressees (domicile)....................................... 37,632 11,002 26,630 9,757 4,105 22,472 788 456 55 119 Non-U.S. addressees (domicile)................................ 4,784 3,720 1,065 3,141 577 466 576 2 22 120 Owed to others............................................................... 3,294 1,671 1,623 1,516 255 1,357 26 128 11 121 U.S. addressees (domicile)....................................... 2,135 1,279 856 1,138 123 733 20 121 0 122 Non-U.S. addressees (domicile)................................ 1,158 392 767 378 131 624 6 7 11 123 All other liabilities.............................................................. 50,880 30,835 20,045 26,046 13,076 4,905 3,410 1,357 2,085 124 Acceptances executed and outstanding........................ 9,291 4,642 4,649 4,565 3,088 1,500 57 20 61 125 Net aue to related banking institutions5...................... 37,780 23,339 14,441 18,868 9,622 2,848 3,176 1,274 1,992 126 Other.................................................................................. 3,809 2,854 955 2,613 366 557 177 63 32 Memo 127 Time deposits of $100,000 or more ................................... 29,354 28,787 567 24,573 0 571 1,081 3,131 0 128 Certificates of deposit (CDs) in denominations of $100,000 or more.................................................... 24,556 24,073 482 20,103 0 486 896 3,071 0 129 Other.................................................................................. 4,799 4,714 85 4,470 0 85 185 60 0 130 Savings deposits authorized for automatic transfer and now accounts................................................................ 17 13 4 5 0 4 3 5 0 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 128 122 6 77 0 6 17 27 0 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months.................................................. 1,403 1,300 103 1,117 0 103 27 155 0 133 Acceptances refinanced with a U.S.-chartered bank ... 2,732 1,465 1,268 1,264 589 676 2 199 2 134 Statutory or regulatory asset pledge requirement.......... 62,951 50,113 12,838 44,981 12,788 53 5,099 30 0 135 Statutory or regulatory asset maintenance requirement 7,740 7,283 457 4,659 220 1 199 2,425 237 136 Commercial letters of credit.............................................. 8,566 4,762 3,804 4,277 1,278 2,475 281 203 52 137 Standby letters of credit, total.......................................... 4,923 3,494 1,429 3,040 488 651 292 161 290 138 U.S. addressees (domicile)............................................ 3,700 2,631 1,069 2,371 291 549 168 93 228 139 Non-U.S. addressees (domicile).................................... 1,223 863 361 669 197 102 125 69 62 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit)............................................................................ 799 777 22 758 1 22 9 10 0 141 Holdings of commercial paper included in total gross loans .............................................................................. 828 712 116 673 69 47 39 0 0 142 Holdings of acceptances included in total commercial and industrial loans...................................................... 4,877 2,228 2,650 2,162 1,171 1,467 25 41 12 143 Immediately available funds with a maturity greater than one day (included in other liabilities for bor­ rowed money).............................................................. 28,613 9,002 19,610 7,876 3,312 16,259 858 269 39 144 Gross due from related banking institutions5................ 55,764 22,059 33,705 18,280 14,388 19,171 1,237 2,542 146 145 U.S. addressees (domicile)............................................ 22,095 5,972 16,123 3,437 1,981 14,093 242 2,293 49 146 Branches and agencies in United States.................. 21,886 5,849 16,038 3,323 1,946 14,045 234 2,292 47 147 In the same state as reporter................................ 592 69 523 50 0 513 0 19 9 148 In other states.......................................................... 21,295 5,780 15,515 3,273 1,945 13,532 234 2,273 38 149 U.S. banking subsidiaries6........................................ 209 124 85 114 35 48 8 1 2 150 Non-U.S. addressees (domicile).................................... 33,669 16,087 17,582 14,843 12,407 5,078 995 249 97 151 Head office and non-U.S. branches and agencies.. 31,793 14,379 17,414 13,154 12,274 5,055 976 248 86 152 Non-U.S. banking companies and offices................ 1,876 1,708 168 1,689 134 23 18 0 11 153 Gross due to related banking institutions5...................... 76,651 43,117 33,534 36,579 24,010 7,413 4,413 2,104 2,132 154 U.S. addressees (domicile)............................................ 22,914 11,766 11,148 8,298 7,291 3,079 2,199 1,269 778 155 Branches and agencies in United States.................. 22,759 11,670 11,089 8,216 7,261 3,060 2,188 1,266 768 156 In the same state as reporter.............. .............. 577 69 508 51 0 507 0 18 0 157 In other states.......................................................... 22,182 11,601 10,582 8,165 7,260 2,553 2,188 1,248 768 158 U.S. banking subsidiaries6........................................ 155 96 59 82 30 19 11 2 10 159 Non-U.S. addressees (domicile).................................... 53,737 31,351 22,386 28,281 16,719 4,334 2,214 835 1,354 160 Head office and non-U.S. branches and agencies.. 51,970 29,948 22,022 26,958 16,428 4,275 2,140 829 1,341 161 Non-U.S. banking companies and offices................ 1,767 1,403 364 1,323 291 59 74 6 13 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30 Continued All states2 New York Cali­ Other states3 Item Total Branches Agencies Branches Agencies f t o o r t n a i l a 3 , b I r ll a i n n c o h is e , s Branches Agencies Average for 30 calendar days (or calendar month) ending with report date 162 Total assets............................................................................ 152,722 89,250 63,472 77,070 27,679 33,116 6,763 5,386 2,708 163 Cash and due from depository institutions...................... 17,326 13,723 3,603 12,858 3,229 310 736 126 67 164 Federal funds sold and securities purchased under agreements to resell.................................................... 5,887 3,896 1,991 3,729 1,607 378 133 33 5 165 Total loans............................................................................ 89,549 58,335 31,214 49,859 13,584 15,263 5,273 3,186 2,383 166 Loans to banks in foreign countries................................ 11,159 8,790 2,369 8,331 1,296 1,001 456 3 72 167 Total deposits and credit balances.................................... 42,835 39,305 3,530 34,735 2,618 761 1,235 3,326 159 168 Time CDs in denominations of $100,000 or more........ 24,836 24,288 548 20,335 0 466 926 3,024 84 169 Federal funds purchased and securities sold under agreements to repurchase.......................................... 10,433 6,031 4,402 5,236 1,432 2,625 649 145 346 170 Other liabilities for borrowed money.............................. 45,036 16,108 28,928 14,053 4,531 24,308 1,477 577 89 171 Number of reports filed7.................................................... 331 154 177 92 57 94 32 28 28 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

A82 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 Michael Bradfield, General Counsel James L. Kichline, Director Robert E. Mannion, Deputy General Counsel Joseph S. Zeisel, Deputy Director J. Virgil Mattingly, Jr., Associate General Counsel Michael J. Prell, Associate Director Gilbert T. Schwartz, Associate General Counsel Robert A. Eisenbeis, Senior Deputy Associate Director Michael E. Bleier, Assistant General Counsel Jared J. Enzler, Senior Deputy Associate Director Cornelius K. Hurley, Jr., Assistant General Counsel Eleanor J. Stockwell, Senior Deputy Associate Director Maryellen A. Brown, Assistant to the General Counsel Donald L. Kohn, Deputy Associate Director J. Cortland G. Peret, Deputy Associate Director Helmut F. Wendel, Deputy Associate Director Office of the Secretary Martha Bethea, Assistant Director Joe M. Cleaver, Assistant Director William W. Wiles, Secretary Robert M. Fisher, Assistant Director Barbara R. Lowrey, Assistant Secretary David E. Lindsey, Assistant Director James McAfee, Assistant Secretary Lawrence Slifman, Assistant Director *D. Michael Manies, Assistant Secretary Frederick M. Struble, Assistant Director Stephen P. Taylor, Assistant Director Levon H. Garabedian, Assistant Director (Administration) Division of Consumer and Community Affairs Division of International Finance Janet O. Hart, Director Griffith L. Garwood, Deputy Director Edwin M. Truman, Director Jerauld C. Kluckman, Associate Director Robert F. Gemmill, Associate Director Glenn E. Loney, Assistant Director Charles J. Siegman, Associate Director Dolores S. Smith, Assistant Director Larry J. Promisel, Senior Deputy Associate Director Dale W. Henderson, Deputy Associate Director Samuel Pizer, Staff Adviser Division of Banking Ralph W. Smith, Jr., Assistant Director Supervision and Regulation John E. Ryan, Director Frederick R. Dahl, Associate Director William Taylor, 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

A83 and Official Staff Nancy H. Teeters Lyle E. Gramley Emmett J. Rice Office of Office of Staff Director for Staff Director for Management Federal Reserve Bank A ctivities 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 Planning Opportunity Division of Federal Reserve Division of Data Processing Bank Operations Charles L. Hampton, Director Clyde H. Farnsworth, Jr., Director Bruce M. Beardsley, Associate Director Lorin S. Meeder, Associate Director Uyless D. Black, Deputy 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, Associate 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 W alter W. Kreimann, Associate Director Robert E. Frazier, Assistant Director *0n loan from the Federal Reserve Bank of Kansas City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Bulletin □ July 1981 FOMC 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 Silas Keehn Nancy H. Teeters E. Gerald Corrigan J. Charles Partee Henry C. Wallich Emmett J. Rice 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 Michael Bradfield, General Counsel Donald J. Mullineaux, Associate Economist James H. Oltman, Deputy General Counsel Michael J. Prell, Associate Economist Robert E. Mannion, Assistant General Counsel Karl L. Scheld, Associate Economist James L. Kichline, Economist 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. Surd am, 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. W ells, 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, Sal Lake City, Utah Mary W. Walker, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 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. Showaiter 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 Silas Keehn 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

A86 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 1,168 pp. $15.00. address, $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 pp. Cloth ed. $5.00 each; 10 or more to one address, subscription to Federal Reserve Bulletin; all others $4.50 each. Paper ed. $4.00 each; 10 or more to one $5.00 each. address, $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 Improving the Monetary Aggregates: Report of the includes one issue of Historical Chart Book. $7.00 per Advisory Committee on Monetary Statistics. year or $2.00 each in the United States, its possessions, 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. Annual Percentage Rate Tables (Truth in Lending— Historical Chart Book. Issued annually in Sept. Subscrip­ Regulation Z) Vol. I (Regular Transactions). 1969. 100 tion to Federal Reserve Chart Book includes one issue. $1.25 each in the United States, its possessions, Canada, pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $1.00; 10 or more of same volume to one and Mexico; 10 or more to one address, $1.00 each. address, $.85 each. Elsewhere, $1.50 each. Federal Reserve Measures of Capacity and Capacity Sele r c i t e e s d o f I n C t h e a r r e t s s t . 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 li e z ss a , t $ io 1. n 50 . 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 Published Interpretations of the Board of Gover­ each; 10 or more to one address, $1.50 each. 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

A87 Consumer Education Pamphlets The GNMA-Guaranteed Passthrough Security: Mar­ Short pamphlets suitable for classroom use. Multiple ket Development and Implications for the copies 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. The Equal Credit Opportunity Act and . . . Doctors, Law­ Mar. 1981. 26 pp. yers, Small Retailers, and Others Who May Provide Incidental Credit The Equal Credit Opportunity Act and . . . Women Fair Credit Billing The Federal Open Market Committee Federal Reserve Bank Board of Directors Reprints Federal Reserve Banks Most of the articles reprinted do not exceed 12 pages. Federal Reserve Glossary How to File A Consumer Credit Complaint Measures of Security Credit. 12/70. If You Borrow To Buy Stock Revision of Bank Credit Series. 12/71. If You Use A Credit Card Assets and Liabilities of Foreign Branches of U.S. Banks. Truth in Leasing 2/72. U.S. Currency Bank Debits, Deposits, and Deposit Turnover—Revised Se­ What Truth in Lending Means to You ries. 7/72. Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corporations. 10/73. Staff Studies The Structure of Margin Credit. 4/75. Studies and papers on economic and financial subjects Industrial Electric Power Use. 1/76. that are of general interest. Revised Series for Member Bank Deposits and Aggregate Reserves. 4/76. Summaries Only Printed in the Bulletin Industrial Production—1976 Revision. 6/76. Requests to obtain single copies of the full text or to be Federal Reserve Operations in Payment Mechanisms: A added to the mailing list for the series may be sent to Summary. 6/76. Publications Services. The Federal Budget in the 1970’s. 9/78. Redefining the Monetary Aggregates. 1/79. Tie-ins Between the Granting of Credit and Sales of Implementation of the International Banking Act. 10/79. Insurance by Bank Holding Companies and Other Perspectives on Personal Saving. 8/80. Lenders, by Robert A. Eisenbeis and Paul R. Schweit­ The Impact of Rising Oil Prices on the Major Foreign zer. Feb. 1979. 75 pp. Industrial Countries. 10/80. Measures of Capacity Utilization: Problems and Federal Reserve and the Payments System: Upgrading Elec­ Tasks, by Frank de Leeuw, Lawrence R. Forest, Jr., tronic Capabilities for the 1980s. 2/81. Richard D. Raddock, and Zoltan E. Kenessey. July U.S. International Transactions in 1980. 4/81. 1979. 264 pp. Survey of Finance Companies, 1980. 5/81. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Index to Statistical Tables References are to pages A-3 through A-81 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, 72-77 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, 78-81 Deposits (See also specific types) Nonfinancial corporations, current, 36 Banks, by classes, 3, 17, 18-21, 27, 68-71, 73, 75, 77 Automobiles Federal Reserve Banks, 4, 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, 72, 74, 76 Dividends, corporate, 35 (See also Foreigners) Banks for Cooperatives, 33 EMPLOYMENT, 44, 45 Bonds (See also U.S. government securities) Eurodollars, 25 New issues, 34 Yields, 3 FARM mortgage loans, 39 Branch banks, 15, 21, 54, 78-81 Farmers Home Administration, 39 Business activity, nonfinancial, 44 Federal agency obligations, 4, 10, 11, 12, 32 Business expenditures on new plant and equipment, 36 Federal and federally sponsored credit agencies, 33 Business loans (See Commercial and industrial loans) 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, 73, 75, 77 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, 68-71, 72-77 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, by classes, 17, 73, 75, 77 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) Banks, assets and liabilities of U.S. branches and Credit unions, 27, 40, 41 agencies, 78-81 Currency and coin, 5, 17, 72, 74, 76 Currency operations, 11 Currency in circulation, 4, 13 Deposits in U.S. banks, 4, 11, 18, 19, 20 Customer credit, stock market, 26 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, 73, 75, 77 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

A89 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, Industrial production, 44, 46 19, 20 Installment loans, 40, 41 Reserve requirements, 8 Insurance companies, 27, 30, 31, 39 Reserves Insured commercial banks, 68-71 Commercial banks, 17, 72, 74, 76 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 Flow of funds, 42, 43 Time and savings deposits, 9, 71 National income accounts, 51 International capital transactions of the United States, Savings and loan assns., 3, 9, 27, 31, 39, 42 54-65 Savings deposits (See Time deposits) International organizations, 54-59, 62-65 Savings institutions, selected assets, 27 Inventories, 50 Securities (See also U.S. government securities) Investment companies, issues and assets, 35 Federal and federally sponsored agencies, 33 Investments (See also specific types) Foreign transactions, 63 Banks, by classes, 17, 27 New issues, 34 Commercial banks, 3, 15, 17, 18-20, 72, 74, 76 Prices, 26 Federal Reserve Banks, 11, 12 Special drawing rights, 4, 11, 52, 53 Life insurance companies, 27 State and local governments Savings and loan associations, 27 Deposits, 18, 19, 20 Holdings of U.S. government securities, 30, 31 LABOR force, 45 New security issues, 34 Life insurance companies (See Insurance companies) Ownership of securities of, 18, 19, 20, 27 Loans (See also specific types) Yields of securities, 3 Banks, by classes, 17, 18—21, 27 Stock market, 26 Commercial banks, 3, 15, 17, 18-21, 22, 24, 72, 74, 76 Stocks (See also Securities) Federal Reserve Banks, 3, 4, 5, 7, 11, 12 New issues, 34 Insurance companies, 27, 39 Prices, 26 Insured or guaranteed by United States, 38, 39 Savings and loan associations, 27 TAX receipts, federal, 29 MANUFACTURING Time deposits, 3, 9, 12, 14, 17, 18-21, 68-71, 73, 75, 77 Capacity utilization, 44 Trade, foreign, 53 Production, 44, 47 Treasury currency, Treasury cash, 4 Margin requirements, 26 Treasury deposits, 4, 11, 28 Member banks Treasury operating balance, 28 Assets and liabilities, by classes, 17 Borrowing at Federal Reserve Banks, 5, 11 UNEMPLOYMENT, 45 Federal funds and repurchase agreements, 6 U.S. balance of payments, 52 Reserve requirements, 8 U.S. government balances Reserves and related items, 14 Commercial bank holdings, 18, 19, 20 Mining production, 47 Member bank holdings, 14 Mobile home shipments, 48 Treasury deposits at Reserve Banks, 4, 11, 28 Monetary aggregates, 3, 14 U.S. government securities Money and capital market rates (See Interest rates) Bank holdings, 17, 18-20, 27, 30, 31, 72, 74, 76 Money stock measures and components, 3, 13 Dealer transactions, positions, and financing, 32 Mortgages (See Real estate loans) Federal Reserve Bank holdings, 4, 11, 12, 30, 31 Mutual funds (See Investment companies) Foreign and international holdings and transactions, 11, Mutual savings banks, 3, 9, 18-20, 27, 30, 31, 39 30, 62 Open market transactions, 10 NATIONAL defense outlays, 29 Outstanding, by type and ownership, 30, 31 National income, 50 Rates, 3, 25 Utilities, production, 47 OPEN market transactions, 10 PERSONAL income, 51 VETERANS Administration, 38, 39 Prices Consumer and producer, 44, 49 WEEKLY reporting banks, 18-22 Stock market, 26 Wholesale (producer) prices, 44, 49 Prime rate, commercial banks, 24 Production, 44, 46 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis Detroit Chicagi jSa/t Lake City V*cisco Kansas City Louisville 7 Je c ll 'lpt% IOklahoma Citj Hashvill* '"ge/es Dallas® ll Paso Houston i January 1978 ALASKA HAWAII 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