Federal Reserve Bulletin, 1981-11
VOLUME 67 • NUMBER 11 • NOVEMBER 1981 FEDERAL RESERVE Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield Janet O. Hart • James L. Kichline • Tony J. Salvaggio • 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 813 COMMUNITY REINVESTMENT ACT: on Banking, Finance and Urban Affairs, A SECOND PROGRESS REPORT October 27, 1981. The Federal Reserve reviews System ac- 835 Paul A. Volcker, Chairman, Board of Govtions in bank and banking organization ap- ernors, comments on some of the implicaplications in which a CRA protest was tions of S. 1720, including title I, which lodged or a less-than-satisfactory CRA per- incorporates the provisions of the so-called formance was revealed in the examination Regulators' Bill passed by the House; the process. bills embodied in S. 1720 raise questions about the appropriateness of geographic restrictions on the operation of depository 824 INDUSTRIAL PRODUCTION institutions, the relationship between commerce and banking, and the validity of the Output declined about 1.5 percent in remaining legal compartmentalization in the October. provision of financial services, before the Senate Committee on Banking, Housing, and Urban Affairs, October 29, 1981. 826 STATEMENTS TO CONGRESS Nancy H. Teeters, Member, Board of Gov- 845 Governor Teeters expresses the Board's ernors, offers the Board's views on two support for H.R. 2372, the bill to establish bills: one to authorize loans at interest rates procedures for budgetary control of federal in excess of certain state usury ceilings and credit programs, and also recommends a the other to allow any type of lender to continuing evaluation of the effective use of originate loans at a rate up to 1 percentage direct spending, direct loans, loan guaranpoint above the Federal Reserve discount tees, and beneficial tax treatment, before rate, before the Subcommittee on Consum- the Task Force on Enforcement, Credit, er Affairs and Coinage of the House Com- and Multi-Year Budgeting of the House mittee on Banking, Finance and Urban Af- Committee on the Budget, October 29, fairs, October 21, 1981. 1981. 828 Theodore E. Allison, the Board's Staff Di- 850 Henry C. Wallich, Member, Board of Govrector for Federal Reserve Bank Activities, ernors, reviews recent developments in discusses the provision of payments mecha- trade and current accounts and examines nism services, particularly electronic fund factors that affect the outlook for trade, transfer services, before the Subcommittee before the Subcommittee on Trade of the on Government Information and Individual House Ways and Means Committee, No- Rights of the House Committee on Govern- vember 3, 1981. ment Operations, October 22, 1981. 854 ANNOUNCEMENTS 832 Lyle E. Gramley, Member, Board of Governors, discusses certain issues related to Change in discount rate surcharge. the impact of federal deficits on the supply, Change in discount rate. distribution, and price of credit; on inflation; and on the conduct of monetary poli- Adoption of fee schedules for transportacy, before the Subcommittee on Domestic tion in supplying currency and coin to the Monetary Policy of the House Committee nation's banks and thrift institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Adoption of policy statement on enforce- 859 LEGAL DEVELOPMENTS ment by state member banks of the Equal Amendments to Regulations A and T; vari- Credit Opportunity and Fair Housing Acts. ous rules and bank holding company and Amendment to Board's rules to delegate to bank merger orders; and pending cases. the Reserve Banks authority to make certain determinations for nonbanking activi- Ai FINANCIAL AND BUSINESS STATISTICS ties of bank holding companies. A3 Domestic Financial Statistics Deferral of reserve and reporting require- A46 Domestic Nonfinancial Statistics ments for nonmember depository institu- A54 International Statistics tions with less than $2 million in total deposits. A69 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL Proposed change in the way depository TABLES institutions maintain reserves; proposed amendment to Regulation K to permit Edge A70 BOARD OF GOVERNORS AND STAFF corporations to engage in certain investment advisory and management services in All FEDERAL OPEN MARKET COMMITTEE the United States; proposal to amend the AND STAFF; ADVISORY COUNCILS definition in Regulation Z of the "arranger" of credit; proposed amendment to Regula- A73 FEDERAL RESERVE BANKS, tion Y expanding the activities permissible BRANCHES, AND OFFICES for bank holding companies; proposed amendment to Regulation T about collateral A74 FEDERAL RESERVE BOARD when brokers and dealers borrow or lend PUBLICATIONS securities. Admission of six state banks to membership A76 INDEX TO STATISTICAL TABLES in the Federal Reserve System. A78 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Community Reinvestment Act: A Second Progress Report This article was prepared by Glenn Canner, groups. While the Board has attempted to handle Division of Research and Statistics. It is the these protested applications expeditiously, in second in a series of reports on Federal Reserve many cases it has met with only limited success. System activities pursuant to the Community To facilitate the processing of CRA cases, as well Reinvestment Act of 1977. The first article ap- as applications protested on other grounds, the peared in the FEDERAL RESERVE BULLETIN, Board has adopted new protest procedures. In advolume 66, February 1980. dition, the Reserve Banks have appointed Community Affairs Officers whose responsibilities The Community Reinvestment Act of 1977 is include advising community groups and banks on intended to encourage federally insured commer- the procedures to follow in CRA disputes. cial banks, mutual savings banks, and savings A review of the CRA cases decided by the and loan associations to help meet the credit Federal Reserve System indicates the imporneeds of the communities in which they are tance that the Board has given to affirmative chartered. The CRA directs the four federal action by applicants to communicate with memsupervisory agencies—the Board of Governors bers of their community, particularly those residof the Federal Reserve System, the Comptroller ing in low- and moderate-income neighborhoods. of the Currency, the Federal Deposit Insurance In both its CRA information statement and its Corporation, and the Federal Home Loan Bank decisions in CRA cases, the Board has noted Board—to consider the CRA record of an institu- repeatedly that it does not believe the CRA was tion in evaluating any application for a charter, intended to require lending institutions to allodeposit insurance, branch or other deposit facili- cate credit (see "Information Statement Re ty, office relocation, merger, or acquisition. The Community Reinvestment Act," FEDERAL REact also requires that, in connection with the SERVE BULLETIN, volume 66, January 1980, page examination of a financial institution, the appro- 30). Moreover, the Board has stated that it will priate supervisory agency shall "assess the insti- not attempt to dictate the product mix that a tution's record and encourage it to meet the lending institution should offer. At the same credit needs of its entire community, including time, the Board has emphasized that it expects low- and moderate-income neighborhoods, con- banks to offer the types of credit they list on their sistent with safe and sound operation of such CRA statements in an evenhanded and nondisinstitution." criminatory fashion. During the nearly three years that the regula- This article discusses the Board's recently tions implementing the CRA have been in force, revised protest procedures and the general conthe consumer compliance examiners of the Fed- cerns that led to their adoption. It also reviews eral Reserve System have had an opportunity to decisions by the Federal Reserve System on review the CRA performance of all state member bank and bank holding company applications banks. By and large these reviews revealed that that have raised CRA issues: some involve applithe banks have complied with the act. In addi- cations protested on CRA grounds, and others tion, the Board of Governors has acted on nu- involve unsatisfactory ratings on CRA examinamerous banking organization applications in tions but no formal protest from the public. which CRA issues have been raised in protests Finally, this article considers the role of the lodged by competing banks or community Community Affairs Officer at each Federal Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
814 Federal Reserve Bulletin • November 1981 serve District Bank and briefly reviews revised Under the revised protest procedures, public Regulaton C implementing the Home Mortgage meetings will generally be scheduled shortly af- Disclosure Act of 1980. ter the end of the period for public comment. The conclusion of the meeting will normally mark the close of the public portion of the record on the REVISED PROTEST PROCEDURES application, except for written comments that respond to new material accepted at the meeting. Early in December 1980, in response to its expe- Public meetings should substantially shorten the rience during the first two years of administering Board's decision time and put it in a better the Community Reinvestment Act, the Federal position to evaluate the substance of the protest. Reserve Board adopted new procedures for han- The primary purpose of the public meetings is to dling protested applications. (See Federal Re- elicit information and clarify factual issues relatserve press release, December 4, 1980.) The new ed to the application. Beyond that, public meetprocedures had three goals: to provide better ings will offer a forum for protestants to air their notice to the public of applications submitted to grievances against applicants, while applicants the Board by banking organizations; to clarify have an opportunity to expound on both the the schedule for submission of comments on public benefits of the proposed transaction and applications by the public; and to set up an the positive aspects of their record. The decision experiment with public meetings on some pro- to hold a meeting will not reflect adversely on the tested applications, particularly those involving applicant's record. an applicant's CRA record. The new policy on public meetings is not Underlying the revisions were several consid- intended to preclude private meetings between erations. The foremost was the desire to facili- the parties to resolve differences. As a matter of tate the timely development of a complete record course, the Federal Reserve System will attempt for each application. Virtually all the early deci- to arrange a private meeting and associated negosions on applications subject to CRA protests tiations between the parties before deciding to have involved long periods, from three to four- hold a public meeting. Such private meetings teen months, to develop a record on which the have proven useful in "clearing the air," and Board could act. These periods have often been they usually result in agreement on at least some the result of extensive written exchanges be- of the issues involved in the protest. tween the System and the parties to the protest. The revised procedures also specify a standard In Board experience, it takes about six and a half form of public notice to be used by applicants, months, on average, from the receipt of an which includes the date on which the comment application for the System to act on CRA cases. period ends. The procedures also direct each of However, in the five cases in which CRA pro- the Federal Reserve Banks to publish a weekly tests were withdrawn after negotiated settle- list of (1) applications it has accepted and (2) ments between the parties, a System decision applications for which newspaper notices have typically was reached in less than four months. been published and submitted for acceptance. These periods do not compare favorably with the These weekly lists, available on request, are System's normal case experience. Between Jan- prepared as a courtesy by the Banks and do not uary and August 1981, the average application replace the formal notices required by statute or submitted to the System and approved under regulation. The belief is that the standard form delegated authority took only 1.7 months to for public notices and the weekly lists of applicadecide. During the same period, those cases that tions will substantially increase the public's raised substantial legal or policy questions out- awareness of bank applications that may influside the CRA area and that were considered by ence the well-being of their communities. Curthe Board took 3.7 months on average to decide, rently, the Banks send out approximately 400 although the decision time varied widely. Large- weekly lists, about 29 percent of which go to ly as a reaction to the delays in CRA and other community groups. The other principal recipiprotested cases, the Board issued the new pro- ents are law firms, banking organizations, actest procedures. counting firms, and the press. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Community Reinvestment Act: A Second Progress Report 815 CRA PROTESTS TO DATE agreements between the parties have been a factor in the resolution of six others. Since 1977 when the CRA was enacted, twenty- Acting on applications protested on CRA one applications from banking organizations to grounds, the Board has had an opportunity to the Federal Reserve System have been protested clarify its position on the banking system's reon CRA grounds. The appendix to this article sponsibilities under the regulations. In particupresents the significant characteristics of each of lar, the Board has used its orders to address the these cases. issue of credit allocation. A number of communi- Of the twenty-one CRA protests received to ty-organization protestants have demanded that date, seventeen have come from community applicants allocate predetermined amounts of organizations and four from financial institutions credit, often at below-market rates, for residenthat are competitors of the applicant. Although tial lending in specific areas or to low- and each case is unique, case 5 (see appendix) em- moderate-income groups. The Board has stated bodies the elements that many CRA protests repeatedly that it does not believe that the CRA have shared. The object of the protest, by the requires banking organizations to allocate credit Michigan Committee on Law and Housing, was a in such a manner (see cases 1 and 5). But, it has large urban-based midwestern banking organiza- also stated that each banking organization is tion, the Michigan National Corporation. (This responsible for providing the types of credit protest is typical in that all but one of the other listed in its CRA statement to its community in a community group protests involved a large ur- fair and nondiscriminatory manner (case 9). ban-based midwestern or eastern banking estab- Moreover, as its decisions clearly indicate, the lishment.) The allegations were of long-standing Board expects banking organizations to act affirtechnical violations of the Community Reinvest- matively to ensure that all members of the comment Act and the Home Mortgage Disclosure munity are aware of their credit services (cases 1 Act; failure to communicate available credit and 2). services to the community; an inadequate vol- Board orders in several CRA cases have adume of residential loans in low- and moderate- dressed the applicability of the CRA to certain income neighborhoods, and racial discrimination types of proposed transactions. In particular, the in lending for home purchases. In approving the Board has held that the CRA is not applicable to application, the Board obtained commitments bank holding company applications for nonbankthat are typical in cases of deficient CRA rec- ing activities (cases 2 and 4). In addition, the ords: expanded advertising of credit services, Board has held that the CRA is not relevant to an intensified training of bank personnel in consum- application by a foreign-owned banking organier compliance, and regular meetings with mem- zation if it does not have an existing banking bers of the community. In its required quarterly presence in the United States (case 19). reports to the Federal Reserve Bank of Chicago—one method by which the System monitors compliance—Michigan National detailed the APPLICANTS WITH LOW CRA RATINGS steps it had taken to strengthen its CRA performance., These steps included the initiation of an While applications for approval of acquisitions or affirmative marketing program, including a mo- for expansions of activities give the Board a bile loan office; slide presentations for communi- special opportunity to review the CRA performty groups on available credit services and loan ance of banking organizations, its concern with standards; and a credit-oriented advertising cam- that performance is not confined to those occapaign. sions. Together with the other regulators of the As the appendix describes, nineteen of the nation's depository institutions, the Federal Retwenty-one applications protested on CRA serve System monitors lenders' compliance with grounds have been approved by the Federal the CRA on an ongoing basis through the exami- Reserve System; two are still pending. Commit- nation process. ments or conditions have played an important On March 5, 1981, the Federal Financial Instirole in seven decisions, and privately negotiated tution Examination Council (FFIEC) adopted a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
816 Federal Reserve Bulletin • November 1981 uniform numerical rating system for CRA exami- organization with a CRA rating of 4 (needs nations. The new system provides consumer improvement) can demonstrate that the probcompliance examiners with comprehensive and lems that led to the low rating have been substanuniform guidelines for evaluating the perform- tially corrected, its application may remain under ance of federally regulated financial institutions delegated authority. under the various assessment factors of the CRA In practice, CRA examinations of a given bank and its implementing regulations. Under the Uni- occur roughly every 12 to 18 months. Therefore, form Interagency CRA Assessment Rating Sys- institutions that receive a low rating have an tem, ratings range from 1 (strong record) to 5 opportunity to take measures to improve their (substantially inadequate); 3 signifies a less than CRA performance between examinations. Nevsatisfactory performance. Before the adoption of ertheless, the Federal Reserve System frequentthe uniform rating system each agency applied its ly must act on an application from a banking own scheme. For example, under the Federal organization in the interim. Under these circum- Reserve's old system, a CRA rating of 3 was stances an applying institution with a CRA rating considered satisfactory and did not require more of 4 must submit evidence of corrective action to than normal supervisory action. assure the Board that it has taken steps to * In the 894 CRA compliance examinations of improve its CRA performance. In addition, the state member banks that the Federal Reserve Board may in some circumstances give weight to System conducted during 1980, the average rat- commitments for action by applicants with low ing was 2.6. Only 28 institutions, or 3 percent, of CRA ratings as part of its consideration of convethe banks examined were found to have a CRA nience-and-need factors in the application. performance that was less than satisfactory (see "Such commitments are not viewed as part of table). The other enforcement agencies have had the CRA record but may be weighed with it, and similar experiences. they are considered an important aspect of the Board's role in encouraging improved perform- CRA examination ratings of member banks, ance" (FEDERAL RESERVE BULLETIN, volume Federal Reserve System, 1980 66, January 1980, page 32). Board encouragement of improved CRA per- Rating1 Nu b m a b n e k r s of Perc b e a n n ta k g s e of formance is particularly evident when institutions have received low CRA ratings, but have 1 333333111111 333333......555555 2 333333222222888888 333333666666......777777 not been subject to comments or protests perti- 3 555555000000777777 555555666666......777777 4 222222666666 222222......999999 nent to the CRA. From December 1979 through 5 222222 ......222222 August 1981, the Federal Reserve System re- Total 888888999999444444 111111000000000000......000000 viewed twenty-six applications in which the applicant, one of its affiliates, or the bank to be 1. Under the CRA rating scheme in effect during 1980, a rating of 1 = outstanding; 2 = good; 3 = satisfactory; 4 = needs improvement; acquired had received a less than satisfactory and 5 = unsatisfactory. CRA rating. None involved CRA protests. This Nine of ten applications that have been re- development is understandable because twentyceived by the Federal Reserve System during the two of the banks were located in rural markets in past two years have been acted on by the Federal which organized community groups are less ac- Reserve Banks under delegated authority. The tive. Of these twenty-six applications, twenty- Federal Reserve Board itself considers applica- five were ultimately approved under delegated tions that raise significant legal or undecided authority; the other was approved directly by the policy issues, including CRA concerns. If an Board. Commitments to the Board for action by applicant or any of its banking affiliates has applicants were an important consideration in received a CRA examination rating of 5, the nine of these cases. In the rest, the applicants application is removed from delegation to be had either already taken steps to correct technireviewed by the Board. This action occurs cal violations or made substantive changes to whether or not a protest or comment has been improve their CRA performance. The commitments were similar to those made in protested received from the public. On the other hand, if an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Community Reinvestment Act: A Second Progress Report 817 applications (cases 1 and 3). Overall, the Federal munities overcome problems that can be ad- Reserve System has been able to use the applica- dressed best by public and private participants tion process to encourage improved CRA per- acting together. Ultimately, the Board believes formance on the part of low-rated banks and has that an effective CAO can help to minimize the been able to act on these applications within the causes of CRA protests and facilitate the pronormal time frame. cessing of applications and thus reduce costs of the application process to all parties. COMMUNITY AFFAIRS OFFICER i . .- HOME MORTGAGE DISCLOSURE ACT Public awareness of the functions of the Federal DEVELOPMENTS Reserve System has grown considerably in light of its responsibilities for establishing monetary Virtually all objections by community groups to policy and its functions as a bank regulatory bank and bank holding company applications on agency. In recent years the System has increas- CRA grounds have been based on an analysis of ingly dealt directly with both banking organiza- local residential lending activity by depository tions and the general public in its role as a bank institutions. Community groups normally obtain regulator—especially in connection with CRA this home loan information from statements enforcement. For example, examination proce- banks make under the requirements of the Home dures now require bank examiners to make "out- Mortgage Disclosure Act. HMD A requires deside contacts"—contacts with public officials pository institutions located in standard metroand other representatives of the community—in politan statistical areas (SMSAs) to disclose pubthe course of the regular CRA compliance re- licly the location of their residential loans. view. Institutions with less than $10 million in assets Implementation of the CRA has raised ques- are exempt from these requirements. HMDA tions among bankers and community groups. was originally enacted in December 1975 and Some bankers have been confused about their was extended with amendments and a five-year responsibilities under the CRA regulations; and sunset provision in October 1980. In July 1981 community groups have incorrectly interpreted the Federal Reserve Board issued a revised and the CRA to require depository institutions or the simplified version of Regulation C, which imple- Federal Reserve System to allocate credit. More- ments the provisions of the act (see FEDERAL over, both groups have been unclear about the RESERVE BULLETIN, volume 67, September Board's policies with respect to protested appli- 1981, pages 720-24). cations. To provide assistance to the public, each The revised regulation liberalizes the discloof the Federal Reserve Banks has a Community sure requirements. Regulation C continues to Affairs Officer who serves as the principal con- require identification by census tract of loans tact at the Reserve Bank for questions about extended on property located in SMSA counties CRA and civil rights enforcement. In this context whose population exceeds 30,000; but covered the CAOs provide banks and neighborhood orga- depository institutions may now identify their nizations with information about the Board's home purchase and home improvement loans by procedures on applications and handling of pro- county rather than by census tract or zip code if tests. They also serve an education function and the property is located in a smaller SMSA counas conduits for information regarding various ty. In addition, the disclosure statement itself has community development programs that are avail- been streamlined by the deletion of the column able through both the public and the private that summed the lender's conventional and govsectors. ernment-backed home purchase lending activity. The Board believes that the CAOs can contrib- Elimination of this column will reduce required ute both to the communities in their Districts and computation and paperwork costs associated to the System. As information disseminators, with preparing the disclosure statements. These advisers, and catalysts, the CAOs can help com- revisions, together with other, less significant Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
818 Federal Reserve Bulletin • November 1981 changes, should lower compliance costs without level, and racial characteristics. Tables generatany real reduction in benefits. ed from the aggregation process are to be made Despite several cost-saving changes, HMD A available to the public by December 31 of the continues to be an expensive regulation. A 1979 year after the calendar year on which the data are study of HMDA by the Federal Home Loan based. Aggregation of HMDA data will cost the Bank Board and the Federal Deposit Insurance FFIEC member agencies about $300,000 a year, Corporation estimated that compliance with the although the reporting institutions will not incur act cost the 8,200 covered institutions about $5.8 any significant increase in costs because of agmillion in 1977. Moreover, the costs of compli- gregation. The depository institutions are reance fell disproportionately on those lenders sponsible for sending two copies of their annual marginally involved in the residential loan mar- HMDA statement to the appropriate supervisory ket, typically small commercial banks. Accord- agency. The various banking agencies then edit ing to the study, lenders extending fewer than the statements and forward them to the Federal 200 residential loans in a given year incur an Reserve as the agency with primary responsibilaverage disclosure cost per loan that is nearly ity for preparation of the annual aggregate rethree times that incurred by institutions reporting ports. more than 1,000 loans a year. Overall, the report- The revised regulation imposes the new reing institutions incurred an average cost of $713 quirement that covered institutions display a to compile and disclose their HMDA data in notice in their lobbies of the availability of the 1977. HMDA data; the original regulation left the A 1980 amendment to the original act directs method of notification to the discretion of the the FFIEC to compile annually for each SMSA management of the institution. In considering aggregate data by census tract for depository this provision, the Board felt that the old regulainstitutions that are required to disclose data tion was ineffective and that lobby notices would under the act. In addition, the FFIEC is directed afford wider dissemination of information regardto produce tables for each SMSA that aggregate ing the availability of the HMDA data. To reduce the lending patterns of covered institutions for the burden of this requirement, the Board decidvarious categories of census tracts grouped ac- ed to bear the costs of producing a lobby notice cording to location, age of housing stock, income and to make it available to lenders on request. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Community Reinvestment Act: A Second Progress Report 819 APPENDIX: Community Reinvestment Act Protests Lodged through September I, 1981 Case 1 Principal reasons for Allegation that applicant failed to serve the protest credit needs of New York City residents Applicant Commerce Bancshares, Inc., Kansas City, Missouri Disposition Approval Protestant Manchester-Tower Grove Community Or- Significant policy "The provisions of CRA make it clear that ganization, St. Louis, Missouri positions CRA does not apply to applications filed pursuant to section 4(c)(8) of the [Bank Date Application—September 19, 1977; Federal Holding Company] Act." (FEDERAL RE- Reserve System decision—June 16, 1978 SERVE BULLETIN volume 65, June 1979, page 512) Principal reasons for Allegation of inadequate residential and protest small business lending activity in low- and moderate-income areas of St. Louis Case 3 Public meeting Held in March 1978 Applicant Ohio Citizens Trust Company, Toledo, Ohio Disposition Approval with commitments (to advertise residential loan availability in local neigh- Protestant Greater Toledo Housing Coalition, Toleborhood media, increase efforts at assess- do, Ohio ment of credit needs, and periodically meet with protestant) Date Application—February 2, 1979; Federal Reserve System decision—May 31, 1979 Significant policy . . the Board has also pointed out that positions commercial banks are multi-product insti- Principal reasons for Contention that applicant's residential tutions that offer a wide variety of credit protest loan policies discriminated against minorservices to their communities and that ities and older neighborhoods 'bank managements should and do have a range of discretion as to the type of loans Disposition Approval with commitments (to increase they will make and the degree of risk they efforts to communicate with members of will assume.' " (FEDERAL RESERVE BUL- low- and moderate-income areas) LETIN, volume 64, July 1978, page 579) "The Board finds nothing in the BHC Act Case 4 that requires or authorizes the Board to dictate a bank's product mix (which credit Applicant Trust Company of Georgia, Atlanta, Georor deposit services a bank should empha- gia size) or to dictate what proportion or amount of an institution's funds must, or Protestant Citywide League of Neighborhoods, Ateven should, be allocated to any particular lanta, Georgia credit need, borrower or neighborhood or on what specific terms credit should be Date Application—April 20, 1979; Federal Reextended. The law permits each bank to serve System decision—July 16, 1979 choose how it should fulfill its responsibility to help meet the convenience and needs Principal reasons for Allegation that applicant failed to meet (including the credit needs) of its commu- protest credit needs of low- and moderate-income nity." (FEDERAL RESERVE BULLETIN, vol- neighborhoods in Atlanta ume 64, July 1978, page 579) Disposition Approval; protest withdrawn following ne- "There is nothing in the BHC Act that gotiated settlement of CRA issues requires every commercial bank to have the same product mix or that requires a Significant policy This case involved a section 4(c)(8) applibank to expand its lending to one segment positions cation. Based on the Citicorp precedent, it of the community at the expense of anoth- is unlikely CRA would have been a factor. er or to redirect its lending program to even if the protest had not been withmatch that of any other bank or financial drawn. (FEDERAL RESERVE BULLETIN, institution." (FEDERAL RESERVE BULLE- volume 65, August 1979, page 669) TIN, volume 64, July 1978, p. 581) Case 5 Case 2 Applicant Michigan National Corporation, Bloom- Applicant Citicorp, New York, New York field Hills, Michigan Protestant 12 protestants including the Connecticut Protestant Michigan Committee on Law and Hous- Bankers Association, Hartford, Connecti- ing, Detroit, Michigan cut Date Application—May 10, 1979; Federal Re- Date Application—September 29, 1978; Federal serve System decision—November 30, Reserve System decision—May 25, 1979 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
820 Federal Reserve Bulletin • November 1981 Principal reason for Allegation that applicant failed to comply The Board believes that the CRA commits protest with procedural requirements of CRA, to the Board's discretion the evaluation of failed to delineate properly the CRA com- an institution's CRA record and the weight munity, failed to meet the housing-related that record is given in the context of other credit needs of low- and moderate-income statutory considerations. Accordingly, the neighborhoods, engaged in racial discrimi- Board may consider, among other things, nation in residential lending, and failed to the convenience to the communities communicate effectively with members of served afforded by the expansion of well the community managed financial institutions, the efficiencies inherent in permitting an institu- Disposition Approval with commitments (to improve tion's management to determine its most CRA training of bank personnel, partici- appropriate corporate structure, and the pate in special lending programs, designate procompetitive effects of de novo expan- CRA officers, and investigate allegation of sion in determining whether an instituracial discrimination) tion's CRA record is consistent with approval in the context of particular Significant policy "Protestant has suggested that Applicant proposals." (FEDERAL RESERVE BULLEpositions should make a commitment to achieve TIN, volume 66, March 1980, page 241, specified levels of housing-related lending. note 6) The Board does not regard the imposition of such requirements as appropriate, and does not believe that CRA requires this Case 7 type of commitment." (FEDERAL RESERVE BULLETIN, volume 66, March 1980, page Applicant Landmark Bancshares Corporation, Clay- 249, note 10) ton, Missouri Protestant Wellston Community Organization, St. Louis, Missouri Case 6 Date Application—August 8, 1979; Federal Re- Applicant Ameritrust Corporation, Cleveland, Ohio serve System decision—November 30, 1979 Protestant Buckeye-Woodland Community Congress, Cleveland, Ohio Principal reasons for Allegation that applicant was going to atprotest tempt to drain funds from Wellston com- Date Application—May 15, 1979; Federal Re- munity through proposed new suburban serve System decision—February 21, 1980 branch location, had an inadequate residential loan record, and failed to ascertain Principal reasons for Allegation that applicant failed to extend a credit needs protest sufficient amount of residential and small business loans, prescreened residential Disposition Approval; protest withdrawn following neloan applicants, failed to assess credit gotiated settlement of CRA issues needs, used ineffective and discriminatory advertising, and failed to comply with pro- Significant policy Private agreement establishes residential cedural requirements of CRA positions lending goals for designated areas at below-market rates. The Federal Reserve Public meeting Held on December 12, 1979 Bank of St. Louis noted that, "since the Board of Governors has stated that neither Disposition Conditional approval with commitments: the Bank Holding Company Act nor the Condition that applicant maintain a regis- Community Reinvestment Act, 12 U.S.C. ter of all inquiries and applications for 2901, et. seq., authorizes the Board to mortgage and home improvement loans impose conditions to allocate credit, the made by persons at offices of applicant in Reserve Bank does not endorse any term Cuyahoga County. Commitments to: (1) of the agreement between applicant and improve its training programs for lending protestant which may have such a result." personnel to prevent future violations, (2) (Federal Reserve Bank of St. Louis, news offer credit counseling to applicants or release, November 30, 1979, page 3) refer them to independent credit counselling organizations, (3) make public its real estate appraisal standards, (4) study the Case 8 feasibility of making public its lending policies, and (5) make the public aware of Applicant Mid-Continent Bancshares, Inc., Bellecommitments 2, 3, and 4 ville, Illinois Significant policy "The CRA requires the Board to assess Protestant East St. Louis Neighborhood Developpositions each institution's record of meeting the ment Corporation, East St. Louis, Illinois credit needs of its community and then to 'take such record into account in its evalu- Date Application—August 15,1979; Federal Reation of an application for a deposit facility serve System decision—November 9, by such institution.' 12 U.S.C. 2902(2). 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Community Reinvestment Act: A Second Progress Report 821 Principal reasons for Allegation of inadequate residential lend- Significant policy "Applicant is a major wholesale commerprotest ing in low- and moderate-income neighbor- positions cial bank involved in commercial lending hoods and failure to communicate ade- and finance throughout the United States quately with East St. Louis neighborhood and the world, and the Board does not residents regard Applicant's efforts in these lines as being inconsistent with helping to meet the Disposition Approval; protest withdrawn following ne- credit needs of its local community. Just as gotiated settlement of CRA issues the CRA was not intended to establish fixed ratios between deposits and loans in Case 9 particular neighborhoods, it also cannot be read to require fixed proportions of retail Applicant First National Boston Corporation, Bos- or commercial deposits to retail or comton, Massachusetts mercial lending." (FEDERAL RESERVE BULLETIN, volume 66, July 1980, page Competing bank: First National Bank of 602) Protestant New Bedford, New Bedford, Massachusetts Case 11 Application—February 9, 1979; Federal Date Reserve System decision—January 28, Applicant Society National Corporation, Cleveland, Ohio 1980 Protestant Union-Miles Community Coalition, Cleve- Principal reasons for Closing of two branches in minority areas, land, Ohio protest inadequate residential lending, inadequate efforts to ascertain local credit needs, in- Date Application—August 30, 1979; Federal Resignificant participation in community serve System decision—March 11, 1980 development programs, and engaging in community disinvestment by requiring Principal reasons for Allegation that applicant failed to comply suburban subsidiaries to join lead bank in protest with procedural requirements of the CRA, loan participations failed to meet the residential credit needs of residents of low- and moderate-income Disposition Approval with commitments (to increase neighborhoods, engaged in racial discrimiefforts to establish formal communication nation by purchasing rather than originatchannels with local neighborhood groups, ing home loans in predominantly black and to intensify efforts to upgrade its comneighborhoods, and failed to ascertain mitment to extend mortgage credit) credit needs of residents in lower-income neighborhoods Significant policy "... the Board expects every [banking] positions organization to provide to the community Public meeting Held by Comptroller of the Currency in in a fair and nondiscriminatory manner the October 1979 type of credit listed in its CRA statement and to make known to its community that Disposition Approval; private agreement resolved such credit is available." (FEDERAL RE- CRA issues, but protest not withdrawn at SERVE BULLETIN, volume 66, February applicant's request 1980, page 164) Significant policy "This agreement deals primarily with Ap- Case 10 positions plicant's marketing efforts. It does not in any way create a preference for credit Applicant Manufacturers Hanover Trust Company, applications received from any portion of New York, New York the community, nor will it have any adverse effects on the safety and soundness Protestant South Brooklyn Against Investment Disof SNB [Society National Bank], Accordcrimination, Brooklyn, New York ingly, the Board regards the agreement as being consistent with the policy outlined in Date Application—April 6, 1979; Federal Re- its CRA Information Statement of January serve System decision—June 18, 1980 3, 1980." (FEDERAL RESERVE BULLETIN, volume 66, April 1980, page 352, note 5) Principal reasons for Allegation that applicant failed to serve protest small business credit needs of local community, employed restrictive mortgage Case 12 policies, refused to extend credit on 3- and 4-family properties, and extended relative- Applicant Farmers and Merchants State Bank of ly little credit in racially mixed and lower Sebewaing, Sebewaing, Michigan income areas Protestant Competing bank: First National Bank of Disposition Approval with commitments (to eliminate Bad Axe, Bad Axe, Michigan policy of not lending on properties with 3and 4-family units, offer long-term, low- Date Application—September 10, 1979; Federal downpayment mortgages utilizing private Reserve System decision—December 4, mortgage insurance) 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
822 Federal Reserve Bulletin • November 1981 Principal reasons for Allegation of generally inadequate CRA Principal reasons for Allegation that applicant discriminated protest performance protest against women and minorities in its employment practices, failed to meet the Disposition Approval housing-related credit needs of Cleveland residents, discriminated against minoritydominated neighborhoods, failed to meet small business credit needs, and made Case 13 inadequate efforts to assess credit needs of local community Applicant Chemical Bank, New York, New York Disposition Approval with commitments (to imple- Protestant Greenpoint-Williamsburg Committee Against ment an advertising campaign designed to Redlining, Brooklyn, New York inform lower income groups of available residential credit, create and implement a Date Application—February 12, 1980; Federal CRA sensitivity program for bank person- Reserve System decision—August 17, nel, and increase meetings with neighbor- 1980 hood groups) Principal reasons for Allegation that applicant failed to ascertain Significant policy "Protestants contend that discriminatory protest credit needs and market credit services positions employment practices should be considaggressively, failed to meet residential ered in connection with National City's mortgage demand of low- and moderate- CRA record. The Board does not consider income neighborhoods, and failed to exthe issue raised by Protestants' allegations tend credit on mixed-use and multifamily to be relevant to NCB's record of meeting property the credit needs of its community although the Board has considered the submissions Disposition Approval of individuals who alleged that an applicant or its banking subsidiary were en- Significant policy "A bank's lending activity cannot be ex- gaged in discriminatory employment pracpositions pected to be uniform throughout its com- tices in connection with bank holding munity. Differences will arise because of a company applications. The Board has also variety of market forces." (Federal Re- recognized that there may be limits to the serve press release, August 1980, page 4) extent it may take into consideration matters of public interest that nevertheless are not directly within the scope of the Case 14 Board's regulatory responsibilities under the BHC Act. Texas American Bank- Applicant F&M Bankshares, Inc., Marinette, Wis- shares, 64 FEDERAL RESERVE BULLETIN, consin 982 (1978)." (FEDERAL RESERVE BULLE- TIN, volume 67, January 1981, page 52, Protestant Three competing banks: First National note 15) Bank of Marinette, Marinette, Wisconsin; Stephenson National Bank and Trust, Marinette, Wisconsin; Peshtigo National Case 16 Bank, Peshtigo, Wisconsin Applicant First National Boston Corporation, Bos- Date Application—February 21, 1980; Federal ton, Massachusetts Reserve System decision—May 21, 1980 Protestant Massachusetts Urban Reinvestment Advi- Principal reasons for Allegation that applicant achieved an inad- sory Group, Boston, Massachusetts protest equate level of Small Business Administration lending, employed more restrictive Date Application—October 9, 1980; Federal Reresidential loan terms than competitors, serve System decision—June 4, 1981 and committed violations of procedural requirements of CRA Principal reasons for Allegation of failure to live up to commitprotest ments to Board; inadequate residential, Disposition Approval small business, and farm lending activity; inadequate participation in community development programs; and failure to comply with procedural requirements of the Case 15 CRA Applicant National City Corporation, Cleveland, Disposition Approval Ohio Ohio Public Interest Campaign and Citi- Case 17 Protestant zens to Bring Broadway Back, Cleveland, Ohio Applicant Girard Trust, Philadelphia, Pennsylvania Application—April 2, 1980; Federal Re- Protestant Philadelphia Council of Neighborhoods, Date serve System decision—December 3, 1980 Philadelphia, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Community Reinvestment Act: A Second Progress Report 823 Date Application—March 17, 1981; Federal Re- Disposition Approval; CRA protest determined to be serve System decision—July 22, 1981 not substantive Principal reasons for Reduction of available services at existing Significant policy The Board notes that there is no statutory protest branch positions authority in the Bank Holding Company Act for taking into account the nationality Disposition Approval; protest withdrawn following ne- of the acquiring company, and that CRA gotiated settlement of CRA issues does not apply to a transaction when the acquiring banking organization has no banking presence in the United States Case 18 (Federal Reserve press release, August 25, 1981, page 7) Applicant First National Bank of Allentown, Allentown, Pennsylvania Case 20 Protestant Coalition of Religious and Civic Organizations, Easton, Pennsylvania Applicant Ameritrust Corporation, Cleveland, Ohio Date Application—March 4, 1981; Federal Re- Protestant Neighborhood People in Action, Cleveserve System decision—August 28, 1981 land, Ohio Principal reasons for Allegation of inadequate residential lend- Date Application—March 11, 1981; Federal Reprotest ing and discriminatory terms charged on serve System decision—Pending inner city residential mortgage loans Public meeting Held in July 1981 Disposition Approval; protest withdrawn following negotiated settlement of CRA issues Principal reasons for Allegation that applicant failed to comply protest with commitments to Board, prescreened Signficant policy Private agreement establishes residential minority applicants, performed inadequate positions lending goals for designated census tracts residential and small business lending, at below-market rates. Federal Reserve failed to advertise available credit servreiterated its position that it will not en- ices, refused to participate in neighbordorse terms of a private CRA agreement hood development programs, and engaged that allocates credit. (Federal Reserve in racial discrimination in residential lend- Bank of Philadelphia, news release, Au- ing gust 28, 1981) Disposition Pending Case 19 Case 21 Applicant Midland Corporation, London, England Applicant First National BanCorporation, Inc., Cin- Protestant Public Advocates, Inc., San Francisco, cinnati, Ohio California Protestant Cincinnati Reinvestment Project, Cincin- Date Application—February 25, 1981; Federal nati, Ohio Reserve System decision—August 25, 1981 Date Application—August 27, 1981; Federal Reserve System Decision—Pending Public meeting Held in June 1981 Principal reasons for Allegation of inadequate residential lend- Principal reasons for Protestant fears Midland will "drain protest ing, discrimination against residents of protest funds" from California, is inadequately predominantly minority neighborhoods, committed to California low- and moder- and inadequate effort to ascertain credit ate-income residents, and racially dis- needs of residents of low- and moderatecriminates in residential lending income areas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
824 Industrial Production Released for publication November 13 preceding six months. Output of construction supplies was reduced an estimated 3.8 percent Industrial production fell an estimated 1.5 perfurther, after a sizable decline last month, and cent in October, after a revised drop of 1.2 was 10 percent below its recent peak last March. percent in September and of 0.2 percent in Output of materials decreased 2.3 percent in August. Again in October, most of the overall October, reflecting a sharp decline in durable reduction occurred in durable materials, construction supplies, and autos; declines also oc- Seasonally adjusted, ratio scale, 1967= 100 curred in production of most other materials and TOTAL INDEX MATERIALS OUTPUT products. At 149.5 percent of the 1967 average, the October index was 2.9 percent below the PRODUCTS OUTPUT recent peak of total industrial production in July. In market groupings, output of consumer BUSINESS EQUIPMENT MATERIALS: goods declined 0.9 percent in October, after Nondurable similar decreases in the two preceding months. Auto assemblies were reduced about 11 percent CONSUMER GOODS to an annual rate of 5.5 million units. Production of home goods, such as appliances and furniture, CONSUMER GOODS: BUSINESS SUPPLIES was cut 1.1 percent further last month. Consumer nondurable goods declined 0.4 percent, due ' '' CONSTRUCTION W mainly to decreases in the output of food and R SUPPLIES fuel. Business equipment, reflecting large declines in manufacturing, power, and farm equip- AUTOS: ment, was reduced 0.5 percent, about half of the sizable drop that occurred in September. This was the third monthly decline in output of business equipment. Production of defense and space equipment edged up 0.2 percent in October, after 1975 1977 1979 1981 1975 1977 1979 1981 Federal Reserve indexes, seasonally adjusted. Latest figaverage monthly increases of 0.5 percent in the ures: October. Auto sales and stocks include imports. Major market groupings 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1981 OOOcccttt... 111999888000 tttooo OOOcccttt... Sept.p Oct.e June July Aug. Sept. Oct. 111999888111 Total industrial production 151.8 149.5 .1 .7 -.2 -1.2 -1.5 2.0 Products, total 151.2 149.7 -.1 ,5 -.3 -.9 -1.0 1.8 Final products 150.4 149.4 .1 .5 -.4 -.7 -.7 2.5 Consumer goods 148.3 147.0 -.3 .3 -.7 -.9 -.9 .5 Durable 140.5 137.0 .4 -.9 -2.7 -1.4 -2.5 -1.4 Nondurable 151.5 150.9 -.6 .7 .1 -.6 -.4 1.1 Business equipment.. 182.7 181.7 .9 .7 -.2 -1.0 -.5 5.7 Defense and space... 103.6 103.8 -.3 .9 .1 .9 .2 4.6 Intermediate products.. 154.1 150.7 -.8 .8 .4 -1.8 -2.2 -1.1 Construction supplies 139.3 134.0 -2.1 .6 -.2 -3.3 -3.8 -4.7 Materials 152.8 149.3 .4 .8 -.1 -1.5 -2.3 2.3 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
825 Major industry groupings 1967 == 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1981 OOOcccttt... 111999888000 tttooo OOOcccttt... Sept.p Oct.e June July Aug. Sept. Oct. 111999888111 Manufacturing 151.2 148.7 -.3 .5 -.1 -1.2 -1.7 1.5 Durable 140.9 138.2 -.2 .3 -.2 -1.7 -1.9 1.8 Nondurable 166.1 163.9 -.4 .8 .2 -.8 -1.3 1.1 Mining 144.9 144.9 4.7 3.4 -.4 -.7 .0 9.7 Utilities 171.5 171.2 1.2 .2 -.7 -.2 -.2 2.1 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. materials—particularly metals and parts for con- In industry groupings, manufacturing output sumer durable goods and for equipment. Nondu- was curtailed sharply in October, by 1.7 percent, rable materials declined 1.6 percent, as produc- after a sizable decline in September. Production tion of textiles, paper, and chemicals was of durable manufactures was reduced 1.9 percurtailed sharply. Output of energy materials cent, and nondurable manufactures 1.3 percent. also was reduced considerably for the third con- Output of mining was unchanged from the previsecutive month. ous month and utilities edged down. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
826 Statements to Congress Statement by Nancy H. Teeters, Member, Board states to remove these barriers to the flow of of Governors of the Federal Reserve System, credit. As costs of funds have risen sharply in before the Subcommittee on Consumer Affairs recent years, the supply of credit in areas with and Coinage of the Committee on Banking, restrictive rate ceilings has been curtailed, espe- Finance, and Urban Affairs, U.S. House of cially to higher-risk borrowers, and loanable Representatives, October 21, 1981. funds have been channeled to other investments or to geographic areas permitting a more compet- I am pleased to appear before this subcommittee itive return. These developments have underto present the Federal Reserve Board's views on scored the importance of allowing financial martwo bills—H.R. 3172, a bill to authorize loans at kets to function without hindrance from artificial interest rates in excess of certain state usury constraints on loan rates, particularly in light of ceilings, and H.R. 2501, the Credit Deregulation the prospect that eventually all controls will be and Availability Act of 1981. H.R. 3172 would removed on the rates that banks and thrift institemporarily allow any type of lender to originate tutions can pay for deposits. loans at a rate up to 1 percentage point above the The Board's long-held view has been that Federal Reserve discount rate. H.R. 2501 would interest rates for consumer loans and other types permanently remove all state limits on interest of credit are best determined in markets unconrates on business, agricultural, and consumer strained by rate ceilings of any kind. If some credit, and also would preempt state restrictions ceiling is to be established, nonetheless, the on transaction and access fees on consumer Board remains vigorously opposed to using the credit and payment services. Both bills, howev- discount rate as an index to which the ceiling er, would permit any state to reestablish its own would be pegged, as stipulated in H.R. 3172. We ceilings by enacting overriding legislation. feel that to tie a usury ceiling to a tool of These two bills would thus broaden the pre- monetary policy would be inappropriate. emptive provisions of the Depository Institutions The Federal Reserve discount rate, as you Deregulation and Monetary Control Act of 1980. know, is the rate of interest charged by Federal In addition to providing for the phasing out of Reserve Banks on credit they extend to deposiinterest rate ceilings on deposit accounts, that tory institutions. These institutions are subject to act permanently preempted state usury laws af- significant restrictions on the amount and the fecting most first-mortgage home loans and tem- frequency of their discount window borrowing. porarily preempted state usury laws governing Ordinarily, large institutions with access to namost business and agricultural loans by permit- tional money markets are expected to repay ting lenders to charge a rate up to 5 percentage these loans the following business day; smaller points above the discount rate. The act also institutions that lack such broad market access extended to certain financial institutions the au- may require accommodation for somewhat longthority, previously granted only to national er periods of time. In any case, the maturity of banks, to set rates on all types of loans up to 1 this special type of borrowing—largely to meet percentage point above the discount rate. States temporary requirements for funds—is ordinarily could override this provision, however. much shorter than is typical for business, agricul- The Federal Reserve Board for some time has tural, or consumer credit. The discount rate is been concerned about the adverse impact that thus a decidedly imperfect indicator of the usury ceilings can have on the availability of course of interest rates on longer-maturity credfunds in local markets and has encouraged the its. Moreover, as an administered rate that re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
827 fleets general policy considerations that are often about the scope and the application of the concomplex, the discount rate often deviates from sumer credit preemption provisions of the act. other market interest rates, even those of compa- The Board recognizes that these rulings could rable maturity. help resolve uncertainties about the relationship Both as an administered rate and a short-term of the federal law to state usury laws. For rate, therefore, the discount rate may deviate example, uncertainties are raised about the significantly from market-determined interest scope of the preemption of state laws that restrict rates in maturity categories more relevant to penalty charges or that govern which charges consumer, business, and farm loans. Tying the creditors may retain and how interest rebates usury limit to the Federal Reserve discount rate must be computed in the event that customers would thus increase the likelihood that a statu- prepay their obligations. Even so, it is unclear tory ceiling might at times be well below market whether the benefits accruing to the public from interest rates, providing little incentive toward these interpretive rulings would outweigh the the desired increase in the availability of credit. costs of the regulatory burdens that would be That is especially the case in consumer lending, imposed. More fundamentally, the Board is exin which the going rates at any one time typically tremely reluctant to assume the role of interpretrange widely depending on loan size, collateral ing these legal relationships and of resolving (if any), and other determinants of the costs of possible statutory conflicts. These clearly are administration and of credit risk. In light of these functions primarily of a judicial character that, in considerations, the Board much prefers the ap- the Board's opinion, should remain within the proach of H.R. 2501, which would remove ceil- purview of the courts whenever possible. They ings entirely, over the discount rate formulation are far removed from the Board's primary reof H.R. 3172. sponsibility, which is the formulation of mone- Notwithstanding its clear preference for the tary policy. principle of outright suspension of rate ceilings, Another special feature of H.R. 2501 is the the Board continues to have reservations about removal of state controls on periodic fees associwhether the federal government should become ated with credit card or debit card accounts as involved at all in preemption of state law govern- well as transaction charges for credit cards or ing interest rates on consumer loans. Federal payment mechanism services. As in the case of preemption is not necessarily or frequently an interest rate ceilings, the Board favors the deterappropriate solution to localized problems, and mination of such fees and charges by market seems to run counter to the expressed desires of forces. The prohibition in some states of account the Congress and the administration to reduce or transaction fees on credit card accounts has the level of federal regulation in matters that can allowed customers who pay in full by the end of be dealt with by state or community govern- the billing cycle to use credit services without ments. The Board would prefer that the counter- paying for them. Permitting transaction and acproductive effects of usury ceilings be addressed cess fees in such instances makes economic by corrective steps at the state level, and we sense because these charges enable creditors to would note that a large number of states have allocate costs in accordance with the use of acted on their own during the past two years to specific services. However, as in the case of modify or remove rate ceiling statutes. If the interest rates, the Board believes that corrective Congress nevertheless chooses to take preemp- action at the state level would be the most tive action, we endorse the inclusion of provi- desirable way to address the counterproductive sions that would allow individual states to over- effects of limitations on these fees and charges. ride the federal legislation. Both bills under To summarize, the Board supports attempts to consideration, as noted earlier, contain such remove ceilings that can constrain the price of provisions. business, agricultural, and consumer credit. It It is also of concern to the Board that title II of also supports efforts to eliminate controls on fees H.R. 2501 would authorize and direct the Feder- that may be charged in connection with consumal Reserve to publish official interpretations er credit accounts and payment services. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
828 Federal Reserve Bulletin • November 1981 Board continues to feel that linking ceilings to ble in governing pricing policies when no clear, the discount rate is inappropriate and that state compelling national interest is in question, as action rather than federal law would be prefera- would seem to be the case with consumer loans. Statement by Theodore E. Allison, Staff Director implications later on in my statement. First, for Federal Reserve Bank Activities, Board of however, a brief history of the Federal Reserve's Governors of the Federal Reserve System, be- role in the payments mechanism may be helpful. fore the Subcommittee on Government Information and Individual Rights of the Committee on Government Operations, U.S. House of Repre- THE U.S. PAYMENTS MECHANISM sentatives, October 22, 1981. Before 1800, exchange of currency (and gold) I am pleased to be able to discuss with your was the primary method for transferring funds. subcommittee the role of the Federal Reserve in Paper checks became widely used in the midthe provision of payments mechanism services, 1800s, and they have played a dominant role in particularly those that are often referred to as the U.S. payments mechanism ever since. With electronic fund transfer services. more than 30 billion checks per year moving In addition, I will explain why the Federal through the economy and the cost of labor and Reserve's operation of a highly secure and flexi- transportation increasing, electronic payment ble network is needed to carry out the System's systems are being developed to supplement the monetary policy and payments mechanism re- check system. Electronic fund transfers, which sponsibilities and why technological obsoles- are only in their infancy, have the potential to cence has made it necessary to replace the improve greatly the security, efficiency, and relicurrent network. This replacement project, inci- ability of the money transfer system. dentally, isn't at all remarkable—the System has Before the creation of the Federal Reserve, upgraded its communications facilities every 10 checks were cleared and funds were transferred to 20 years since 1915. through a network of interbank correspondent The Federal Reserve, as the nation's central balances. In order for one bank's check to be bank, has a number of diverse, but highly interre- cleared when deposited at another bank, the lated, responsibilities—for monetary policy, check moved through one or more corresponbank supervision and regulation, and payments dent banks. The number of correspondent banks system operations. Our basic responsibility for involved in clearing a check depended on many the efficiency and integrity of the nation's pay- factors including the distance between the two ments mechanism dates from the Federal Re- banks. This process led to pyramiding of correserve Act of 1913 and was confirmed by the spondent balances and a slow collection system. Congress only last year with the passage of the The establishment of the Federal Reserve in Monetary Control Act of 1980. This legislation 1913 altered the U.S. payments system in at least makes it clear that the Federal Reserve should two important respects. First, it reduced the participate in the payments mechanism in ways need for banks to maintain a complex network of that will promote competition, contribute toward correspondent balances to clear checks and othgreater efficiency, and ensure an adequate level er payments: Federal Reserve member banks of payments services nationwide. These objec- could use a single reserve-account balance to tives will be accomplished by requiring the Sys- transfer funds by wire. Indeed, the Federal Retem to make available its payment services to all serve Act directed that reserve accounts be used depository institutions and over the long run to to clear payments transactions among depository charge for such services at their full cost. These institutions. Today, correspondent balances are are major developments in the evolution of the still used to clear payments, primarily of smaller payments mechanism, and I will discuss the depository institutions. Book-entry accounting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 829 using reserve accounts, however, has all but THE WIRE TRANSFER NETWORK eliminated the need to ship currency between AND MONETARY POLICY banks to settle payments flows between geographic regions of the United States. Depository institutions must have access to their The second change in the payments system reserve accounts to adjust them in response to was the establishment of a national wire transfer fluctuations in their reservable liabilities. One network to provide access to these centralized way this access is provided is by the wire transreserve accounts. In 1915 the wire network was a fer system. This system is also used by the telegraphic communication system. It has Federal Reserve, the Treasury, and depository evolved into a high-speed, computerized net- institutions to transfer U.S. government and work. Besides its role in the payments mecha- agency securities. It is also through this network nism, the wire network is a vital element in the that Federal Reserve open market operations are conduct of monetary policy and the operation of facilitated. Open market operations are the prithe government securities market. mary method used to expand or contract the Despite the changes in the mechanism used to money supply. The wire transfer system imcarry out these responsibilities, however, the proves the efficiency of open market operations basic central banking role performed by the by promoting a large, secure, and liquid market Federal Reserve has not changed since 1913. for government securities. This arrangement not only facilitates the marketing of government debt but also results in lower cost to the Treasury. FEDERAL RESERVE WIRE TRANSFER AND SETTLEMENT OPERATIONS OTHER USES OF THE FEDERAL RESERVE S The 12 Federal Reserve District Banks and their COMMUNICATION SYSTEM 25 branches maintain reserve accounts and clear directly and indirectly with all depository institu- The Federal Reserve's communication network tions in the nation. A depository institution that is also used for two other purposes. First, it wishes to transfer funds from its reserve balance transmits timely bank deposit data to the Federal to another depository institution uses the Federal Reserve Board for day-to-day monetary policy Reserve's wire transfer system. Reserve bal- purposes. These data include daily deposit inforances are transferred by depository institutions mation on 14,000 depository institutions. Secto purchase or sell federal funds (that is, to make ond, it transfers recurring payments of small interbank loans), to move correspondent bank dollar value such as direct deposit of payroll and balances from one institution to another, and to bill payments among automated clearinghouses send funds to another bank on behalf of its (ACHs). The ACH was established jointly by the customers. The Treasury Department and other banking industry and the Federal Reserve as a federal agencies maintain accounts at Federal vehicle to clear and settle certain types of elec- Reserve offices, and they use these accounts and tronic payments. In 1980 about 60 million comthe wire transfer system extensively to disburse mercial and 160 million Treasury payments were and collect monies. In 1980, 43 million transfers processed through the ACH. Incidentally, more of reserve balances took place, involving an than 30 percent of the social security recipients aggregate of $78 trillion. in the United States have elected to have their The settlement of funds transfers and reserve- benefits sent through the ACH mechanism. account maintenance functions of the wire trans- The ACH, we believe, has the potential to fer system contribute to an efficient payments offer significant benefits to the public in terms of mechanism. Settlement through the Federal Re- decreased cost, increased convenience, and serve, with the full force and power of a central greater security for certain types of payments. bank behind it, substantially reduces the risk of This judgment is shared by the financial industry, settlement failure, which could result in serious by the federal government—which is the largest disruptions in financial markets. user of the ACH, and by the National Commis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
830 Federal Reserve Bulletin • November 1981 sion on Electronic Fund Transfers. The National placing its communications network. The current Commission on Electronic Fund Transfers fur- upgrading is needed because the present system ther concluded that Federal Reserve involve- and its technology are 10 years old, and more ment in the operation of ACHs was necessary cost-effective and reliable technologies are availbecause the private sector was not yet able to able. Moreover, the present system relies in operate ACH facilities economically without this large part on an American Telephone and Teleassistance. graph Company service that will terminate in 1983, and its central switch is maintained by a vendor that will cease its maintenance responsi- THE FEDERAL RESERVE S bilities in 1985. Within the Federal Reserve, the COMMUNICATION NETWORK replacement project is known by the acronym FRCS-80 (Federal Reserve Communications The Federal Reserve uses data processing and System for the Eighties). Conceptual planning communications to receive, process, and deliver for FRCS-80 began in late 1975 on the assumppayments. The computers are general data proc- tion that a more efficient communications techessing machines of the type used by most large, nology would be available in the 1980s and that multipurpose organizations, both public and pri- the Federal Reserve System would be making its vate. Our need to transmit data among the Feder- payment services available to all depository inal Reserve offices, the Board, and the Treasury is stitutions. These assumptions have proved coraccomplished through three communications rect with the development of packet switching networks—the interdistrict Fed Wire, the inter- technologies and the passage of the Monetary district bulk data network, and the local District Control Act of 1980. networks. The new system will be a general-purpose data On the Fed Wire more than 175,000 messages communications network that will satisfy the containing wire transfers of funds and securities, Federal Reserve's internal communications realong with administrative information, are being quirement of providing services to the financial communicated each day among the Federal Re- community, the Treasury, and other government serve Banks through a central store-and-forward agencies. FRCS-80 will be used for the transmismessage switch in Culpeper, Virginia. This net- sion of the same data that is sent over the current work, including its extensions from head offices network. to branches and offices, was installed between The functions of the existing separate commu- 1969 and 1974; it replaced an antiquated semi- nications networks will be consolidated into a automated network that was installed in 1953. single network providing better service at less A bulk data network, which uses high-speed cost. Historically, as the need for new data switched circuits to connect the 12 Federal Re- communications applications emerged, the most serve Banks and the Board of Governors, was frequent solution was the implementation of inimplemented in 1976. This network is used to dependent data communications systems taitransmit bank deposit data and ACH payments. lored to a single application. With FRCS-80, new Each Federal Reserve Bank has also imple- communications requirements can be met withmented its own local network between the head out additional networks or major design changes. office and its branches. These facilities are used FRCS-80 will do the following: to move accounting data and other local traffic • Improve the reliability and efficiency of the within the District. Federal Reserve's communications operations. • Reduce the total cost of System communications through a more efficient use of circuits. THE NEW FEDERAL RESERVE • Increase security of data moving within the COMMUNICATIONS SYSTEM Federal Reserve System. The conceptual design of FRCS-80 is that of a As it has done on the average of every 10 to 20 distributed "packet-switched" network. No sinyears, the Federal Reserve System is now re- gle central switching site, such as the current Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 831 switch in Culpeper, Virginia, will be required to service bureaus clear a substantial proportion of coordinate the operation of the network. Rather total checks written. Bankwire, CHIPS, and than revolve around a computerized hub, as does SWIFT are private-sector competitors for dothe current Fed Wire, the computer power of mestic and international transfers of large-dollar FRCS-80 will be distributed among the Federal funds.1 Reserve offices. The pricing of ACH operations, because of As part of the process of selecting a new economies of scale and potential for improving communications network, the Federal Reserve the efficiency of certain types of funds transfers, compared two network approaches—a public is based temporarily on long-run costs to encouraccess network and a private network. The pri- age the development of such operations. In the vate network approach was chosen because of near future, the price of ACH services will be security risks involved in using a public network based on actual costs, and as ACH volume and the lack of control over the flexibility of the grows, we expect competitors to enter this marpublic network. Flexibility is critical because the ket. Federal Reserve must respond rapidly to changes in legislation or monetary policy. After evaluating proposals from several ven- THE ROLE OF THE FEDERAL RESERVE dors, the Federal Reserve awarded a $10 million IN POINT OF SALE contract to Northern Telecommunications, Inc., to provide hardware and software and to install We understand that certain parties are concerned the network on a turnkey basis. Recently a that FRCS-80 is being designed to accommodate factory acceptance test was completed, and point-of-sale switching capabilities. The National equipment is now being installed in the Federal Commission on Electronic Fund Transfers in Reserve offices. The network is expected to be 1977 reported to the Congress on the role of the fully operational in early 1983. federal government in electronic funds transfer. The commission recommended "that the federal government not be involved operationally, at PRICING OF FEDERAL RESERVE SERVICES present or in the foreseeable future, in point-ofsale switching and clearing facilities except for The Monetary Control Act of 1980 required the the provision of net settlement among depository pricing of certain Federal Reserve services. institutions." The design of FRCS-80 does not These services include all payments mechanism contemplate any point-of-sale switching activiservices, such as check processing, wire and ties, and the Federal Reserve has no intention of securities transfers, settlement, and ACH transgetting involved in such activities. actions. We are now charging for all financial services except cash transportation. Charges for cash transportation are scheduled to commence in early 1982. Over the long run, the revenues PRIVACY CONSIDERATIONS derived from the sale of financial services will cover all Federal Reserve costs in providing Before I conclude my remarks, I would like to them, including an amount to reflect private- explain briefly the Federal Reserve policy on sector costs not incurred by the Federal Reserve, such as taxes and financing costs. As a result, 1. The Clearing House Interbank Payments System services will be offered competitively, allowing (CHIPS) is a nongovernmental facility that clears internationthe private sector adequate opportunity to enter al transactions for its 100 members. It is operated by the New York Clearing House Association, which has as its controlor expand its share of the market for payments ling members the 12 largest New York City commercial mechanism services. banks. Even before pricing began, significant compe- The Society for Worldwide Interbank Financial Transactions (SWIFT) is a cooperative company located in Belgium tition already existed in check processing. Large that operates a communications network to exchange paymoney center correspondent banks and private ment instructions among its more than 800 members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
832 Federal Reserve Bulletin • November 1981 retention and disclosure of electronic payment ACH. The Federal Reserve Banks will not disrecords containing data on individuals. I will close individual transaction data except to parfocus on our ACH policy because data identify- ties that are part of the transfer, such as the ing an individual is rarely part of a wire transfer. originating and receiving financial institutions, or While the ACHs do not process enough infor- when a grand jury subpoena or an order of a mation to serve as a threat to privacy, the court with proven jurisdiction is presented. Federal Reserve has taken affirmative steps to insure the privacy of data in our possession. Various ACH records contain individual and business names, bank account numbers, and CONCLUSION social security and other individual identification numbers. Such transaction data are retained by The subcommittee's invitation for the Board to Federal Reserve Banks only for the limited time testify at this hearing requested the Federal needed to fulfill operational requirements. Rec- Reserve to comment on what it believed to be its ords maintained on computer media are retained appropriate role in the provision of telecommunino longer than 30 business days following settle- cations services. As I have explained, the Federment of the transaction. Microfiche historical al Reserve offers payments services to the bankrecords containing individual transaction data ing industry and uses telecommunications for its are retained for 60 business days following settle- internal operations. The Federal Reserve clears, ment. Microfiche historical records that do not delivers, and settles interbank payments. In docontain individual transaction data are retained ing so, we use computer and telecommunications for one year. At the end of their respective equipment and facilities, and we appreciate the retention periods, all records are destroyed. subcommittee's concern that the provision of The Federal Reserve data-disclosure policy these facilities occurs in a competitive environpertains to all payments services, including the ment. • Statement by Lyle E. Gramley, Member, Board serve. The Treasury sells securities in the open of Governors of the Federal Reserve System, market at the interest rate necessary to attract a before the Subcommittee on Domestic Monetary sufficient volume of bids. Whether the Federal Policy of the Committee on Banking, Finance Reserve System absorbs into its portfolio any of and Urban Affairs, U.S. House of Representa- the resultant increase in Treasury debt depends tives, October 27, 1981. entirely on the amount of reserves that is needed to support the growth rates of money that the I am pleased to appear before you today, on Federal Reserve has targeted. behalf of the Board of Governors of the Federal Monetary policy has not always been so inde- Reserve System, to discuss the important ques- pendent from debt management policy. In the tions that you have raised regarding the impact of period of large deficits during World War II, the federal deficits on the supply, distribution, and Federal Reserve bought the amount of Treasury price of credit, on inflation, and on the conduct securities necessary to peg interest rates at low of monetary policy. levels. The result was a lack of control over I would like to begin with the question of the growth of money and credit, and an excessive relationship of budget deficits to monetary poli- buildup of liquidity that contributed to the inflacy. A common and serious misconception exists tion of the immediate postwar years. In 1951, the that federal deficits must be financed by creating "Accord" between the Treasury and the Federal money. In fact, in the large and sophisticated Reserve freed the System to conduct an indepencapital markets of the United States today, siz- dent monetary policy. For a while thereafter, the able federal deficits can be financed without Federal Reserve did avoid actions that might intervention or assistance by the Federal Re- substantially alter market conditions in the midst Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 833 of a Treasury financing operation—the policy borrowers will be more willing to pay it. In view known as "even keeling." But even this practice of the rapid rates of inflation that we have was ended some years ago when the Treasury experienced in the recent past, the inflation adopted the more flexible technique of selling premium in interest rates is large. A lasting securities by auction. Thus, there is no necessary reduction in interest rates will only occur as we or mechanical link between federal deficits and bring inflation down. That is why monetary the conduct of monetary policy. policy must remain steadfastly on an anti-infla- This certainly does not mean, however, that tionary course. sizable federal deficits do not affect financial The burden of high interest rates is very unmarkets or that they are insignificant in the even on the various sectors of our economy. The struggle to reduce inflation. On the contrary, housing industry has been devastated; many auto when the Federal Reserve is restraining the dealers have closed their doors because of degrowth of money and credit to slow inflation, as clining sales and extremely high costs of financwe are now doing, the credit demands of the ing inventories; small firms in other lines are also federal government have enormous significance going out of business. The thrift industry is for interest rates and the ability of private bor- experiencing a severe squeeze on earnings; high rowers to obtain funds. The federal government, interest rates will also impede the rise in business in effect, takes its place at the head of the credit capital formation that we need for improvement line, and since aggregate credit supplies are being in productivity performance, thus offsetting constrained, private borrowers are squeezed out. some of the beneficial effects of the business tax Whether private credit use is cut back by rising cuts included in the Economic Recovery Act of interest rates or by nonprice rationing of credit 1981. Meanwhile, some industries—such as dedepends on the institutional environment. In the fense, energy production, and high technology— past, financial markets were characterized by a appear to be thriving despite extraordinarily high good many barriers to flows of funds, the most interest rates. important of which were low ceilings on rates Heavy federal demands in credit markets, to payable on time and savings deposits and legal be sure, do not always imply high interest rates barriers on the interest rates that lenders could or appreciable crowding out of private borrowcharge or that borrowers could pay. In those ers. For example, if the deficit to be financed circumstances, a rise in market interest rates led were solely the consequence of a decline in to disintermediation at depository institutions revenues that occurred because of a recession, and a decline in the availability of credit to the weakening of private credit demands would potential homebuyers, farmers, small busi- more than offset the rise of federal borrowing. nesses, and others. Usury ceilings also served to The important problem we face today, however, reduce mortgage credit availability, and laws and is a persistent long-run growth in the proportion constitutions of many states periodically prohib- of funds raised in the money and capital markets ited states and their political subdivisions from by the federal sector. paying going rates of interest in the money and The table shows that the federal share of capital markets. overall borrowing has been on an uptrend over Today, with most of those barriers gone, the the past 25 years. The first column shows the nonprice rationing mechanism has been largely sharp rise in the proportion of total credit flows dismantled. Borrowers generally are able to ob- that is preempted by direct Treasury borrowing. tain credit if they are able and willing to pay the A pause in the upward trend occurred in the going rate. This means, however, that interest latter part of the 1960s when the economy experirates must rise to higher levels than they used to enced a prolonged cyclical expansion. The in order to reconcile overall credit demands with strength of incomes and the belated Vietnam tax available credit supplies. surcharge elevated tax receipts and reduced the Those interest levels will be very high if infla- federal deficit. Subsequently, however, the share tionary pressures are strong and expectations are rose again, and in the latter half of the 1970s was widespread that inflation will continue. Lenders running at close to 20 percent. will then demand an inflation premium, and If borrowing by government-sponsored agen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
834 Federal Reserve Bulletin • November 1981 Measures of federal participation in credit markets, fiscal years, 1956-80 Five-year averages, percent Treasury plus sponsored agency Treasury borrowing as percent Treasury plus sponsored agency borrowing plus borrowing for Fiscal years of funds raised by nonfinancial borrowing as a percent of total sectors funds raised1 loan gu t a o r ta a l n f te u e n s d s a s r a a is p e e d r 1 c ent of 1956-60 3.9 6.1 16.4 1961-65 8.4 9.1 16.9 1966-70 5.3 8.7 14.9 1971-75 13.3 15.8 22.7 1976-80 18.8 20.0 25.3 1. Total funds raised includes borrowing by financial and nonfinan- funds raised in credit markets are derived from Flow of Funds cial sectors. Accounts, Board of Governors of the Federal Reserve System. Data on borrowing for primary guaranteed loans are derived from Budget of SOURCES. Data on Treasury borrowing, sponsored agency borrow- the United States Government, Special Analyses on Federal Credit ing, funds raised in credit markets by nonfinancial sectors, and total Programs. cies—such as the Federal Home Loan Banks and rowing or federal intervention and redirection of the Federal National Mortgage Association—is credit flows through the activities of sponsored included in the totals, the share of total credit agencies and guarantee programs. In fiscal 1981, flows absorbed by the federal sector is somewhat the figure was well above 30 percent. higher. The precise significance of this calcula- It is essential that federal deficits be controlled tion, however, is hard to judge. Some of the if strains in financial markets are to be reduced borrowing of sponsored agencies merely makes and if the private sectors of the economy are to available to borrowers credit that they would increase their share of real resources without the have obtained through private channels anyway; often inefficient intervention of special federal in those cases, the total demands on credit credit assistance. What are the prospects for the markets are not increased. federal deficit? Estimates for the deficit in fiscal Another important aspect of federal interven- year 1982 vary widely, but it really is the outlook tion in credit markets is private borrowing under for subsequent years that is most troubling. For federal loan guarantees. In the 1940s and 1950s, example, the estimates of the Congressional federal loan guarantees were significant in the Budget Office suggest that, even if all of the mortgage market as a result of the strong demand spending reductions anticipated by the First for housing and the high risks that lenders at- Concurrent Budget Resolution were implementtached to nonguaranteed mortgages following the ed, the federal deficit would be $50 billion or disastrous experience of the Great Depression. larger in each of the years through 1984. This As these factors became less important, federal projection, moreover, assumes $50 billion in mortgage guarantee activities shrank relative to additional spending reductions by fiscal 1984, the size of the mortgage and total credit markets, which have not yet been enacted, and a fairly but by the 1970s new types of guarantee pro- optimistic outcome for real economic growth. In grams began to swell the total once again. the absence of the additional $50 billion in expen- The significance of federal loan guarantees for diture reductions assumed, the deficit in fiscal assessing the strains on credit markets emanating 1984 could be $100 billion or even larger. from the federal sector is also unclear. All we can Continuation of deficits of this magnitude say with certainty is that the amount of direct would imply persistent pressures on interest Treasury borrowing understates to an unknown rates. Uncertainties regarding the ability of the degree the total demands of the federal sector on administration and the Congress to take the credit markets. We also know that a sizable actions necessary to change these prospects are proportion of total credit flows are being influ- evident in the bond markets, in which long-term enced one way or another by the activities of interest rates have remained near peak levels federal credit programs. Indeed, by the latter half even while short-term rates have receded markof the 1970s, fully a quarter of the funds raised by edly over the past couple of months. the financial and nonfinancial sectors of the In this setting the alternatives are clear. One is economy represented either direct Treasury bor- to move ahead with further reductions in federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 835 spending. To achieve a balanced budget by 1984, Organization of Petroleum Exporting Countries we will probably need reductions in outlays in to impose major increases in oil prices. And, in fiscal 1984 of somewhere around $100 billion. If 1982, the upward pressure on wages and costs cuts of that magnitude are not feasible or are from increases in the minimum wage and social deemed by the Congress to be unwise, the only security taxes will be less than in the current alternative is to restore some of the cuts in year. revenues contained in the Economic Recovery We have reached a critical stage in our fight Act of 1981. against inflation. We can consolidate our gains Let me conclude my remarks by noting that we and move forward to price stability. If we do not, are seeing signs of progress in the fight against we will almost surely see a return to double-digit inflation. Both consumer and producer prices inflation. have risen less rapidly this year than last; indeed, The Federal Reserve is determined to stay we have seen more progress in reducing inflation with a course of monetary policy that will reduce in 1981 than almost anyone had expected. The inflation. Eventually, the course of monetary first signs of progress are also beginning to policy on which we are embarked will, in fact, appear on the wage front as well. Contract reduce inflation and bring down interest rates in reopenings and wage concessions have occurred the process. Our country will achieve the goals in a number of industries and the environment of reasonably stable prices, lower interest rates, for the new round of union contract negotiations and a more vigorous and prosperous economy that will begin next year should favor fewer much sooner, however, if the Congress and the inflationary settlements than have characterized administration work together to eliminate the the recent past. Significant progress in conserva- prospects for very large federal deficits in the tion of energy has narrowed the latitude of the years ahead. • Statement by Paul A. Volcker, Chairman, Board In providing a focus for that consideration—not of Governors of the Federal Reserve System, just in concept or theory, but in terms of conbefore the Committee on Banking, Housing, and crete legislation—you have provided a signal Urban Affairs, U.S. Senate, October 29, 1981. public service, and we welcome the opportunity to participate in these hearings. I am happy to appear before the banking commit- In their specifics, the bills before you are, of tee this morning to discuss the legislation now course, both complex and controversial. Morebefore you. As you well know, the proposed over, broad as they are, some of their provisions legislation ranges over a wide field. While some inevitably raise further pressing questions, inof its provisions are technical, taken as a whole cluding the appropriateness of geographic rethe proposals could have profound implications strictions on the operation of depository institufor our financial system. tions, the relationship between commerce and The discussion engendered by the bill is time- banking, and the validity of the remaining legal ly, for we are obviously in the midst of a period " compartmentalization " in the provision of fiof enormous financial change. Those changes are nancial services. My understanding is that you forced by developments in the marketplace, and intend to consider some or all of those issues change will take place whatever the Congress next year; except to note their relationship to decides with respect to this legislation or whatev- some of the provisions of the legislation, I will er the approach of the regulatory agencies. What not attempt to deal with them this morning. is at issue—and what we can influence—is the I would like to preface the more particular speed and direction of that change; the legislative comments of the Federal Reserve Board with proposals before you challenge all of us to con- some comments on the forces at work in the sider more explicitly the kind of a financial marketplace bearing on our financial structure structure we would like to see in the years ahead. and then to suggest the general framework within Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
836 Federal Reserve Bulletin • November 1981 which we have approached the specific issues. tutional barriers to competition and contributing The statement will then summarize our position to the rapid growth of new institutions able to on the specific provisions of the bills. exploit new technology. Old concepts of what is The efforts of individuals, businesses, financial banking and what is not are blurred. Even nainstitutions, and markets to adapt to inflation and tional borders are losing their significance. We to the extraordinarily high current level of inter- have an array of financial institutions and instruest rates that has accompanied inflation are ments that simply were unknown a decade or among the most potent factors pushing toward two ago. The typical customer—business or indichange in financial structures and behavior. The vidual—no longer feels so dependent on his local stresses on thrift institutions, the competitive bank or savings and loan for financial services. inroads made by money market mutual funds, Even the distinction between commerce and and the controversy over the phasing out of finance—embodied in law and tradition—has interest rate ceilings at depository institutions been eroded. are only some of the most obvious examples of In the circumstances, many institutions are the forces at work tending to alter—and even understandably concerned not only about the undermine—the established institutional struc- strains arising from current market conditions ture. Regulators and the Congress alike have the but about the prospects for their industries over responsibility for responding to these pressures the years ahead and whether they, as individual in a constructive way. We can and should ease institutions, will have the ability to compete those strains that arise from elements in the legal fairly and effectively in the future. To be sure, or regulatory system that are truly outmoded. some of those concerns may be exaggerated or When appropriate, we can provide transitional inconsistent; banks, thrift institutions, and infinancial assistance. We can also accelerate con- vestment houses have long perceived strong sideration of more fundamental reforms to mini- competitive thrusts from each other, yet all have mize current—and potentially recurrent—prob- survived and roughly maintained or even enlems. hanced their share in the provision of credit as At the same time, let us also recognize that no more of the total market for credit has become legislative or regulatory changes can assure a institutionalized. But the pervasive air of uncersound and efficient financial system in the face of tainty about the future role of financial instituaccelerating inflation, and that we need not and tions itself calls for reexamination of the legal should not plan on inflation as a way of life. As framework and for building a new consensus we succeed in bringing inflation under control, about the desired institutional structure. some of the forces and pressures for change so Given the national responsibilities for moneevident today in our financial system will sub- tary policy and for maintaining the safety and side. In appraising particular proposals for struc- efficiency of our financial system, we—and tural change—changes likely to be with us for you—must be sensitive to unreasonable or unmany years—we need to look beyond the present necessary regulatory structures and to threats to transitional and market problems to a vision of the stability and growth of depository institutions what is appropriate for the longer run. that have long been the backbone of our credit There can be little doubt that structural change markets and are the transmission channel for is inevitable and desirable, whether the current monetary policy. We should also consider exceptional stresses quickly abate or not, wheth- whether or not, in instances when regulation of er interest rates are high or low or fluctuate depository institutions remains essential, it may widely in between, or whether "transitional" or be necessary to bring newer institutions within "emergency" measures are adopted to ease cur- the regulatory framework for reasons of equity, rent strains. Irreversible technological change is safety, or monetary policy. fundamentally altering the financial environ- The bills before you address some of these ment; modern data processing capabilities, in- long-term issues, as well as the more pressing stantaneous and cheap communications, and rel- immediate needs. The testimony you have alatively inexpensive and fast travel are all ready heard reflects the fact that proposals afbreaking down the traditional geographic or insti- fecting the competitive position of particular Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 837 industries are bound to be contentious and diffi- power can be dangerous, that the potential for cult to resolve. Nevertheless, they must be dealt conflicts of interest in a service so vital as the with, recognizing that the intramural disputes of extension of capital and credit should be miniregulated institutions need to be placed in the mized, and that there is a special public interest broader context of aggressive competition from in the safety and soundness of our depository newer institutions and from the open market. institutions—an interest that does not, and Against that background we have assessed the should not, extend in the same way to other implications of the specific changes proposed in businesses. In some respects, our concerns S. 1720 for our financial structure and its evolu- about preserving a broad dividing line between tion in the years ahead. At the same time, we banking and commerce are reinforced by technowould strongly urge that the debate on longer- logical change. For example, advances in comterm structural issues not deter your immediate munications and data analysis could potentially attention from the provisions of the bill needed to enhance the capacity and reach of financialhelp deal with the current situation in the dis- commercial conglomerates, raising the risk of tressed thrift industry—specifically those provi- dangerous concentration of power and conflicts sions common to the so-called Regulators' Bill of interest. adopted yesterday in the House. The case for separation is less clear with respect to banking and investment banking, and in practice, the line between banking and other A FRAME OF REFERENCE financial services has become increasingly blurred. Banks, investment banks, and business The objective of reform of banking and financial firms have all long been involved in extending regulation is, in essence, simple enough. We, as credit to both consumers and businesses, and a nation, want to preserve and nurture the strong some substantial overlapping in the provision of competitive forces that assure that our financial services by different types of institutions—bank system remains the most efficient and innovative and nonbank—is both inevitable and useful in in the world. We also want to maintain the enhancing competition without damage to other discipline necessary for the strength and solidity essential functions. However, at the margin, we of our depository institutions—institutions that believe distinctions can and should be made. For are the essential nucleus of a stable financial instance, the risks and uncertainties, as well as system. And we must also preserve our ability to the greater potential for conflict of interest, in conduct an effective monetary policy. handling equity financing suggests that that func- The difficulties and complexities arise in effec- tion should remain outside commercial banking tively blending the objectives, all of which are (or depository institutions). Underwriting and important, but which in application may conflict. marketing of corporate securities to the general The existing legal and regulatory structure is rife public by banks raise questions of risk, selfwith such conflicts, and the temptation is strong dealing, and conflict of interest. Conversely, to to dismantle it wholesale and to start afresh. lodge transactions balances and responsibility Certainly, a structure put in place in quite differ- for the payments system within the regulated ent circumstances in the early 1930s is outdated (and insured) "banking" sector has strong adin important respects by technology and by the vantages. growth of competitive nonbanking institutions. A large variety of services often thought of as But in approaching change, our conviction in the financial fall between these extremes. S. 1720 Federal Reserve is that some basic building touches on insurance, some securities activities, blocks of the present system should be pre- and mutual funds. Some services related to fiserved, and the presumption is that needed nance—including management consulting, travel change can be fit into that framework. services, and data processing and transmission, Specifically, the laws and traditions of this in particular—deserve consideration as well as country embodying a separation of banking and possible areas in which banking might reasoncommerce still seem valid to us. That tradition ably overlap commerce with benefits for comperests on concepts that concentration of economic tition and convenience. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
838 Federal Reserve Bulletin • November 1981 In considering these and existing areas of The fourth and last general point I would like overlap, a second element in our framework is to make is that public policy must attach particurelevant: to the extent regulation is necessary at lar importance to maintaining the safety and all, institutions providing the same services soundness of depository institutions. Depository should be subject to substantially the same regu- institutions handle the bulk of the payments of lation in providing these services, regardless of services and transaction settlements in our econtheir form of organization. A number of the omy—and indeed much of the enormous volume distortions and inequities in financial markets of dollar transactions abroad. They are the printoday result from failure to adhere to this princi- cipal repository of the financial assets of most ple. An obvious case in point is the absence of households and businesses. In recognition of the reserve requirements on money market mutual importance of maintaining confidence in the sysfunds even when those funds have the essential tem and assuring its stability, banking and thrift attributes of transactions balances in depository institutions have been provided with deposit institutions. insurance. At the same time, those institutions Obviously, consistency in regulatory treat- are subjected to substantial supervision and regment should be achieved by removing unneces- ulation with respect to capital, to lending polisary regulatory constraints as well as by closing cies, and to other operations significant for their loopholes in the application of those regulations safety and soundness. As a result, they have deemed essential. For example, one of the most certain competitive advantages and constraints; powerful arguments for eliminating ceilings on in those respects, depository institutions are, and interest rates paid by depository institutions is should remain, different from other financial the competition from nonregulated institutions enterprises. In other words, there are limits on and from the open market itself. the degree to which competition of depository institutions with other institutions can be unfet- The third element in our thinking has implicatered. tions for assessing several provisions of S. 1720: our regulatory system should encourage a de- In commenting on the specific provisions of gree of diversity among institutions, large and S. 1720, reference, when appropriate, will be small, specialized and generalized, "retail" or made to this general framework. As will be "wholesale" oriented. Traditionally in the Unit- apparent in our comments, we consider a few ed States, this concern has provided much of the provisions of the bill of urgent importance. Other rationale for geographic limits on banking, and positions may be relatively noncontroversial. for a separate legal and regulatory structure for Those sections dealing with "Glass-Steagall" banking and thrift institutions. Both technology issues and the powers of thrift institutions— and market incentives are breaking down geo- because of their important implications for the graphic and functional distinctions. Like it or evolution of the system—in our judgment denot, in the marketplace we obviously have inter- serve particularly close scrutiny but have fewer state banking and active competition between implications for the immediate problems facing banks and thrifts in large measure. Moreover, depository institutions. depository institutions are competing every day with other, nonbank providers of similar financial services. The only realistic question can be IMMEDIATE NEEDS— how the strong forces for further overlap and ''THE REGULATORS' BILL '' "homogenization" can be channeled most constructively. In some cases, time is needed for S. 1720 incorporates in title I the main provisions adaptation. Some elements of diversity in the of the so-called Regulators' Bill adopted by the provision of financial services that have served House. We would strongly urge that, whatever us well can reasonably be preserved. Regulatory action is taken with respect to the remainder of policies can be more sensitive to the particular the bill, and without prejudice to the remaining problems and particular needs of the smallest provisions, these sections be enacted immediateinstitutions. ly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 839 These provisions are in no sense a fundamen- allow a bank holding company to acquire a thrift tal solution to the problems of the thrift industry institution. Should that authority be used, it is or a substitute for structural reform. They may, not clear that such acquisitions would subsehowever, be of critical importance in providing quently be confined to emergency situations. the regulatory agencies with the flexibility and Moreover, state law in some instances could authority needed to deal with transitional prob- frustrate the objective. In these circumstances, lems posed for the thrift industry by the extraor- action within the framework of the new limited dinarily high level of market rates. and defined authority would appear preferable at Title I has two main elements. The first recog- this time. nizes that, in circumstances like the present, otherwise viable thrift institutions may face depletion of existing capital as they work toward OTHER PROVISIONS READY restoring their earnings position. The Federal FOR PROMPT ACTION Deposit Insurance Corporation (FDIC) and the Federal Savings and Loan Insurance Corpora- While they are not of the same degree of urgency tion (FSLIC) would be provided clear authority as title I, S. 1720 contains a number of more to supply capital temporarily to such institu- technical provisions that the Board considers tions—capital that should be repaid from future both a distinct improvement in regulatory pracearnings—so that their operating capability can tice and relatively noncontroversial. be maintained during a transitional period, and at Section 210 of the bill would amend section the same time reducing the potential loss to the 23A of the Federal Reserve Act, governing bank insurance funds from an avoidable failure. Under relationships with its affiliates, to simplify the present law, the powers of the FDIC, in particu- administration of this section while improving its lar, are so closely circumscribed as to make it effectiveness. Sections 221-33 would amend the difficult or impossible to exercise such an option Financial Institutions Regulatory and Interest except in the case of "assisted" mergers, thus Rate Control Act of 1978 (FIRA) to reduce unnecessarily raising questions about the ability burdensome operating requirements and remove of some well-managed, basically sound institu- some restrictions necessary to its purpose. Intions to remain viable as independent entities. deed, we believe further steps could be taken to The second element in the bill would facilitate that end, and we would be glad to work with the orderly mergers of failing thrift institutions with committee. healthy out-of-state thrift institutions or, as a last The Federal Reserve also supports section resort, bank holding companies in instances 702, which would exempt deposits at internationwhen such mergers are not practicable with thrift al banking facilities from federal deposit insurinstitutions within a state. Authority for acquisi- ance assessments, placing such deposits on a tion in-state or out-of-state of thrifts by bank parity with deposits at overseas branches of U.S. holding companies already exists in other stat- banks. We believe such parity is important to the utes. As a matter of policy, that authority has not effective operation of the international banking been exercised. The purpose of the new author- facilities authorized by the Board, which are to ity would be to provide clear and specific guid- begin operation in December. Should the Conance by the Congress as to the circumstances in gress not wish to foreclose the possibility of the which such acquisitions might be permitted and FDIC assessing deposits of both international to cut across obstacles in the law of some states banking facilities (IBF) and foreign branches at to the conversion of mutual institutions into some future time, the basic purpose of parity in stock form, a necessary prerequisite to acquisi- treatment could be achieved by requiring that tions by bank holding companies. IBF deposits be treated in the same manner as As I have indicated to the committee before, foreign branch deposits rather than by permawithout this legislation the Federal Reserve, nent exemption. While we strongly doubt that faced with an emergency situation, may well find assessments on such deposits are appropriate it necessary to act under existing authority to now, the alternative approach would permit the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
840 Federal Reserve Bulletin • November 1981 FDIC to reconsider that question in the future if institutional portfolios precisely at the time when it so desired. earnings pressures are so strong as to threaten the viability of many thrift institutions. Indeed, the net result of failure to enforce due-on-sale clauses may be to restrain the provision of new, PREEMPTION OF STATE LAWS: fixed-rate mortgages more than would otherwise Us UR Y CEILINGS, ' DUE-ON-SALE be the case in today's markets. CLAUSES," AND TRUTH IN LENDING As the legislation is presently drafted, existing state law prohibitions on due-on-sale clauses Several provisions of S. 1720 provide for federal would be preempted. However, in the 20 states preemption of state law, in each case permitting where either state legislatures or the courts have states to override the preemption by new legisla- taken recent action to prohibit due-on-sale provition within three years after the effective date of sions, borrowers could reasonably have interthe provision. preted that, whatever the contractual terms, due- In approaching questions of this kind, the on-sale clauses could not be enforced. We Board is reluctant to support preemption of state believe that as a matter of equity the bill should law, but that may be necessary when a clear be amended so that it does not permit enforcenational interest is at stake. In earlier testimony, ment of due-on-sale provisions with respect to we have recognized the adverse impact that sales occurring in the period between the time usury laws can have on the availability of credit state legislatures or the courts have acted and the in local markets and have urged the removal of passage of preemption legislation. such ceilings. But we have also suggested that Section 704 of the bill would preempt "any further action in that respect might reasonably be state law that is similar in purpose, scope, releft to individual states. That preference was quirement or content" to the national Truth in expressed in the knowledge that action by the Lending laws. The broadened test for preemp- Congress last year already preempted state usury tion—current law preempts only "inconsistent" ceilings for the bulk of bank lending: remaining state laws—is clearly aimed at the important state usury laws that are binding affect mainly objective of simplifying compliance by lenders, local consumer lending, for which the national without loss of the basic consumer protection interest is less clear. provided by federal law. Should the Congress wish to act in this area, The Board agrees with that objective, but has the Board would strongly endorse the provision substantial doubts about the administrative feasiin sections 401-04 that would permit states, by bility of applying so vague a test as "similarity" new action, to reestablish usury ceilings, and we to the multiplicity of specific state provisions. would also urge that any new ceilings adopted in Moreover, we note that the possibility of states federal or state legislation not be tied to the Fed- overriding the federal preemption would, as eral Reserve discount rate. That rate is an instru- drafted, appear to extend to the possibility of ment of monetary policy and not appropriately a repeal of any Truth in Lending protection—state benchmark for usury rates in the market. or federal—within a state. Alternatively, a state Section 141 would permit depository institu- might adopt a different system of disclosure, tions, state law notwithstanding, to enforce due- adding to burdens and confusion on the part of on-sale clauses in mortgage instruments. For the creditors. We question whether such results are majority of Board members, the reluctance to intended. In light of these complications, I would preempt state law is in this instance more than hope that our staff might work further with yours offset by a sense of urgency growing out of the toward the desired objective. strongly adverse effects on the soundness of Apart from the preemption issue, S. 1720 thrift institutions of failure to enforce due-on-sale would attempt to provide further simplification clauses. Inability to enforce contractual due-on- of the administration of the Truth in Lending law sale provisions, agreed to by the borrower in and to reduce litigation by limiting creditor liabilundertaking the mortgage commitment, has ity to "substantial noncompliance" and exemptslowed the turnover of low-yielding mortgages in ing "arrangers" from disclosures. The approach Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 841 proposed to limit litigation appears to have sub- the case of the largest institutions, safeguards stantial legal and technical ambiguities. against the undue concentration of economic Exemption of "arrangers" does offer substan- power may be appropriate. tial simplification, but at the expense of exempt- Concerns of this kind can be and have been ing a large category of mortgage financing in addressed in supervisory and regulatory policies; today's market—so-called creative financing the mere possibility of conflicts or abuse or risks provided by the seller or by other nonprofession- cannot justify sweeping prohibitions on particual lenders with the assistance or guidance of a lar types of activity, particularly in areas in realtor. The appropriate balance between simpli- which competition and public convenience fication and potential loss of consumer protec- would be appreciably improved by bank entry. tion is difficult to draw, and the Board welcomes In the end, it is a matter of balancing potential efforts of the Congress to provide guidance. dangers against advantages in particular in- In accordance with present law, which con- stances. Indeed, a step-by-step evolutionary aptemplates coverage of those regularly "arrang- proach toward expanded powers for banks and ing" mortgage finance, we have recently invited bank holding companies has much to commend public comment on certain proposals. We would it, permitting all of us to observe experience as it be glad to make those comments available to you develops. While we do not support at this time all as they are received. of the proposals contained in S. 1720, we would The Board would have no objection to delay- note that other service areas—such as travel ing the effective date of new Truth in Lending services, data processing, and the sale of comrequirements scheduled under existing law to mercial paper (which is presently in dispute in become effective April 1, 1982. the courts)—might well be considered for inclusion in the legislation. In that connection, the Board considers undesirable the additional re- BANKING AND OTHER strictions on the already limited provision of FINANCIAL SERVICES credit-related insurance services by bank holding companies, as proposed in section 601 of the bill. Several provisions of S. 1720 deal with the Those services seem to us helpful in promoting question of what other kinds of financial services competition and public convenience without subbanks or other depository institutions might stantial risk or conflict of interest with banking. properly provide. In practice, a substantial and The Board has long supported extension of the growing overlap already exists between commer- ability of commercial banks to underwrite municcial and investment banking, and the bill would ipal revenue bonds, as well as general obligaextend that direct competition into the area of tions, as would be provided by section 301. municipal revenue bonds and the sponsorship of Revenue bonds have become a much more prominvestment companies (that is, mutual funds) and inent feature of municipal finance in recent the sale of their shares. years, and authority for commercial banks to In evaluating proposals of this kind, the Board participate in this area of municipal finance apbelieves a number of concerns cited in the past pears a logical extension of power that they have by the Congress and the courts should be taken exercised for many years. The provisions of the into account. One of those concerns is the possi- bill designed to protect against conflicts of interbility of conflicts of interest arising between est and unsound banking practices are desirable management of the bank's loan and security and should reasonably be extended to the existportfolio and its nonbanking investment activi- ing authority to deal in general obligations. ties. The potential riskiness of the nonbanking A more cautious approach toward depository activity is also relevant, given the inevitable institution sponsorship of investment companies linking of a bank's reputation to that of its and the sale of shares in mutual funds seems affiliates; our own experience in supervising appropriate. In particular, participation in money bank holding companies suggests the extreme market mutual funds could aggravate current difficulty, at best, of insulating banks from the pressures on thrift institutions and other market fortunes of other holding company affiliates. In distortions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
842 Federal Reserve Bulletin • November 1981 The intent of some depository institutions in mand, and arrangements can be developed for sponsoring such funds is related to their inability automatic transfer to and from deposit accounts to compete without interest rate restrictions in (including "zero balance" accounts); in other the deposit market. The process of deregulation words, they can be the functional equivalent of of deposit instruments has, as you know, been interest-bearing demand deposits. The implicahighly controversial because competing consid- tion is that both the meaning of money supply erations cannot be fully reconciled. A rapid statistics and our ability to control the money lifting of deposit rate ceilings would have the stock could be gravely impaired by major shifts advantage of enabling depository institutions to from deposit transaction accounts to money marcompete on a more equal footing with users of ket funds. short-term funds, would offer benefits to the For these reasons, the Board feels strongly consumer, and would help maintain a flow of that authority to permit banks to sponsor and sell credit to local communities served by depository money market mutual funds should not be proinstitutions. vided at this time, and that such authority would At the same time, however, the higher interest in fact weaken both our institutional structure costs resulting from the more rapid liberalization and monetary control. Instead, we would urge of deposit ceilings would bring still heavier pres- that the very real problems of equity and compesure on the earnings of both thrift institutions and tition be approached in other ways. many banks locked into longer-term, lower- The process of deregulation of deposit instruyielding assets. Providing authority to banks to ments should proceed as rapidly as circumsell their own money market mutual funds may, stances permit. At the same time, we would on the surface, appear an attractive means of suggest that money market funds, to the extent cutting through the dilemma—on the one hand, they in fact provide transaction-balance services, permitting the banks to compete more fully, be brought within the framework of reserve while on the other, retaining deposit rate ceil- requirements and that those funds that do not ings. But the dilemma cannot be escaped so wish to provide such transactions services be easily. The result inevitably would be to attract required to insist on a short—say, seven-day— more funds from traditional deposits, potentially notice before withdrawal. The net effect would adding liquidity pressures to the current earnings be to move toward competitive equality and to problems of thrifts. Without amending the pres- improve the arrangements for monetary control. ent provisions of the Investment Company Act With these changes in place and interest rate enforcing diversification of fund assets and re- ceilings phased out, the question of providing stricting transactions among affiliated institu- depository institutions with authority for money tions, the funds attracted into the bank-spon- market fund powers could be reexamined. sored money market funds could not be Depository institution participation in more employed in lending by the sponsoring institu- traditional stock, bond, or diversified mutual tion. Indeed, the nature of lending and investing funds would not have the same adverse conseby depository institutions could imply major quences either for the safety and soundness of shifts in the availability of credit to particular depository institutions or for monetary policy. regions of the country and to some categories of Some potential does exist for conflicts of interborrowers. However, should present law be est, for confusion on the part of the public about changed so that the funds could be funneled back the bank's responsibility for the value of the into the sponsoring bank, potential conflict of shares, and for adversely reflecting on the repuinterest becomes of more concern. tation of the bank itself. While different in legal Further inducements to the growth of money basis and in asset composition, the difficulties market funds, particularly if sponsored by banks arising some years ago when banks became and operated alongside regular transactions ac- active in sponsoring real estate investment trusts counts, would also raise serious questions for the may be suggestive of possible problems. conduct of monetary policy. Money market fund The potential for abuse and misunderstanding shares carry no reserve requirement. Such is certainly limited by existing banking and inshares can be withdrawn by check and on de- vestment company law and regulation. More- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 843 over, few problems have arisen in the trust and indeed, incautiously used by institutions without agency activities of banks, which resemble the present experience and expertise in commercial proposed mutual fund powers. Based on this lending, the new powers could precipitate greatrecord, the Board believes banks should have er difficulties. Rather, the apparent purpose broader powers for providing investment man- would be to enhance the competitive position of agement services, but with certain added safe- the thrift institutions over time and to provide guards. greater flexibility to cope with swings in interest As a first step in that direction, we would rates or other market conditions in the future. suggest banks now be permitted to operate, as Those are understandable and worthy objecpart of their trust departments, commingled in- tives. Yet, in evaluating the provisions as a vestment accounts on an agency basis. The effect whole, insistent questions arise. would be to encourage joint management of We would be left with a seemingly anomalous individual accounts too small to be profitably situation of two sets of institutions—commercial serviced individually—essentially the same ser- banks and thrifts—with comparable asset and vice as provided by mutual funds. We would also liability powers, yet with different regulatory suggest that regulatory guidelines be established structures, branching powers, access to governto restrict advertising to the general public, to ment-sponsored credit, and (for a transitional minimize the possibility of confusion with liabil- period) interest rate ceiling differentials. For one ities of the bank itself, and to protect against set—the thrift institutions—the separation of conflicts of interest. commerce from banking and the prohibition on Should the Congress wish to go further than interstate banking could, in some circumstances, our proposal and permit banks at this time to be breeched; for the other—commercial banks— sponsor investment companies—that is, to enter the present restrictions could remain in full the mutual fund business directly—we believe force. To put the point another way, if thrift the activity should be segregated into a separate powers are to be broadened to the extent envisholding company subsidiary, that use of the aged, the logic would point to the need for bank's name be prohibited, that sales commis- substantial further changes in law very promptly. sions not be charged (that is, only "no-load" Decisions will need to be made, for instance, funds be permitted), and that further guidelines about whether commercial bank or thrift branchbe developed by the regulatory agencies to avoid ing powers should be the norm, whether we find conflicts of interest and self-dealing. it acceptable that industrial or commercial firms should operate subsidiaries with full banking powers, and whether banks, too, should be able BROADENED THRIFT POWERS to become real estate developers. Decisions on such issues could affect the safety, soundness, The most sweeping changes in the present insti- and efficiency of our financial institutions. Moretutional structure are implied by the provision of over, the point is not just theoretical; for many S. 1720 that greatly expands the lending and banks, S. 1720 would seem to provide a strong deposit powers of thrift institutions. As we read inducement to convert to thrift charters to take the proposed legislation, thrifts would be provid- advantage of the broader branching powers, greater flexibility in real estate activity and noned with virtually the full range of commercial banking activities, and incidentally the remaining banking asset and liability powers, at least so far interest rate ceiling differentials and the ability to as domestic banking is concerned, and in some borrow from the Home Loan Bank System. cases without limitations (such as single borrower limits) long applicable to commercial banks. In Those anomalies could be rectified, now or addition, new or expanded powers for real estate later. But looked at from another vantage point, development—including sizable equity positions the proposals raise the further, and more basic, through subsidiaries—would be provided. question of whether our vision of the future I believe the generally accepted view that the financial system is evolving toward fully "honew powers are of little relevance in relieving the mogenized," multipurpose institutions. I recogexisting earnings pressure on thrift institutions— nize traditions in the thrift industry have been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
844 Federal Reserve Bulletin • November 1981 strongly oriented toward the housing industry for commercial lending; indeed, there could be and the individual, and some provisions in the danger in looking toward those markets as a tax law would, at least for the present, continue "quick fix" for depressed earnings. Those thrift to provide incentives for that specialization. institutions that, in fact, wish to operate as full However, we would anticipate that competitive commercial banks should be able to convert to forces would strongly dilute the separate institu- commercial bank charters—and impediments to tional traditions under the framework proposed such conversions could be removed. Questions by S. 1720. of appropriate branching and other powers for A related question is whether the full range of banks and thrifts would, of course, remain. Howcommercial banking powers is really necessary ever, we believe those issues could and should to assure the competitive strength of thrift insti- be dealt with on their merits, rather than as a bytutions. Historically, the answer has been no, as product of fully yielding the lending and deposit reflected in the relative earnings and growth powers of banks and thrifts. performance of the industry. But today, with the competitive advantage of interest rate differentials being phased out, with differences in tax MISCELLANEOUS PROVISIONS treatment less significant, and with markets more volatile, the historical record may not provide a S. 1720 also includes a number of miscellaneous full answer. provisions that I have some concern about and Of course, concern on this score has motivated would like to touch on very briefly. the legislative proposals. At the same time, we should recognize that thrift institutions have al- Limits on national bank loans to one entity. ready been provided substantial added flexibility Under existing law, national banks are conin the Monetary Control Act last year and by strained in the amount of lending to any one regulatory action. Given the limited time avail- entity to 10 percent of their capital and surplus. able and the current pressures on the industry, The Federal Reserve strongly opposes the provifew institutions have yet geared up to full use of sion of S. 1720 that would raise the limit to 25 this new authority. percent. Risk diversification has long been a key Clearly, there are a number of possibilities for element of sound financial practice, and in my providing still more flexible authority to the thrift view, one that may be even more important than institutions. We would urge, however, that any ever in light of the longer-term decline in the further steps at this point be taken within the capital ratios of most of our largest banks. Acbroad framework of a concept of community, cordingly, the Board opposes any general infamily-oriented institutions. Such an approach, crease in the current limits on lending to any one for instance, would be compatible with full con- entity. sumer credit and individual deposit-taking pow- The Board does understand that current law ers. Limited commercial loan powers—viewed may hinder small banks in their attempts to serve as meeting the needs of local, smaller busi- the needs of their larger customers. At the same nesses—would help fill a niche in the credit time, small banks tend to have relatively strong market, and would be consistent with a commu- capital positions. The Congress may thus want to nity orientation. Thrift institutions and their affil- consider an alternative approach, such as raising iates could logically provide insurance and trust the lending limit to 15 percent of capital and services for individuals and could deal with real surplus for banks with a relatively high capital estate and construction—the existing areas of ratio of, say, more than 7 or 8 percent. expertise—within this concept. That evolutionary approach seems to us more Limits on loans of certain types and in real fully in the traditions of our financial system—a estate lending. The Federal Reserve supports the system that has served us well and can continue provision of the bill removing statutory limitato do so. We do not perceive an absence of tions on certain types of loans as a share of a competition, or large new competitive opportuni- bank's assets. The Board also is not opposed to ties, in the national, regional, or foreign markets providing banks with greater flexibility in real Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 845 estate lending. The Board believes potential to consider exempting the first $2 million in problems in this area can be dealt with best by reservable deposits for all institutions. The effect regulation and through the bank examination on small institutions would be virtually the same, process. and some of the potential problems would be alleviated, although the cost to the Treasury Exemptions from reserve requirements. S. 1720 would be somewhat higher. and the accompanying S. 1686 would exempt depository institutions below a certain size, as Increased deposit insurance on individual rewell as the deposits of state and local governtirement and Keogh accounts. While we are ments, from reserve requirements. The Federal mindful of the desirability of secure retirement Reserve strongly opposes the provision of funds, the Federal Reserve is concerned by the S. 1686 exempting state and local deposits from trend toward higher insurance limits on all types reserve requirements. Those deposits, from the of accounts. This trend increases the risk to the standpoint of monetary control, have the characinsurance funds and diminishes the sense of teristics of transaction balances and should be discipline implicit in the need for larger depositreated in the same manner as other components tors to consider the soundness of their deposiof the money supply. But the Board has no tory institutions. objection to the provision of S. 1686 that would extend the eligibility of state and local governments to have negotiable order of withdrawal Consolidation of insurance funds. The last accounts. issue I would like to touch on is the potential S. 1720 would exempt from reserve require- consolidation of the deposit insurance funds of ments depository institutions with total deposits the Federal Deposit Insurance Corporation, Fedof less than $5 million. The Federal Reserve is in eral Savings and Loan Insurance Corporation, favor of efforts to relieve burdens on smaller and National Credit Union Association, to be institutions if such efforts can be accomplished accomplished by expanding the FDIC's authorwithout significantly affecting our ability to con- ity. The Board has serious reservations about duct monetary policy, or without damage to such a consolidation at this time. A consolidation other objectives. Consequently, the Board would raises a number of important regulatory quessupport exempting institutions below $5 million. tions that have not been adequately addressed. We would point out, however, that that approach The Board recommends that the Congress postraises certain technical problems as well as ques- pone consideration of this issue pending fuller tions of equity that may merit further consider- assessment of the financial and regulatory impliation. As an alternative, the Congress may want cations. • Statement by Nancy H. Teeters, Member, Board particularly appropriate time to consider such of Governors of the Federal Reserve System, steps. Given the serious inflation problem curbefore the Task Force on Enforcement, Credit rently plaguing our nation, it is imperative that and Multi-Year Budgeting of the Committee on growth in money and credit be held to a moderthe Budget, U.S. House of Representatives, Oc- ate pace. Within this context, every effort should tober 29, 1981. be made to insure that federal credit activities as well as federal spending are carefully evaluated Mr. Chairman, it is a pleasure to be here today to in order to avoid creating serious distortions in present the views of the Federal Reserve Board financial markets. on the budgeting and control of federally assisted Indeed, for off-budget federal loan programs credit. In particular, it is a pleasure to have the and loan guarantees to provide a less conspicuopportunity to express our support for H.R. ous substitute for direct, on-budget federal 2372, the bill introduced by Mr. Mineta and Mr. spending would be most inappropriate at a time Bethune to establish procedures for budgetary when strenuous efforts are being made to bring control of federal credit programs. This is a the growth of spending under control. Although Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
846 Federal Reserve Bulletin • November 1981 the economic and credit market consequences of raised by nonfinancial and financial borrowers in federal loans and loan guarantees are not in all domestic credit markets. cases the same as those of deficit-financed feder- The widening range of economic activities al spending, enough similarities exist to warrant assisted by federal programs is also noteworthy. parallel procedures for budgetary review and In the late 1950s, the home mortgage guarantee control. I shall argue therefore that formal proce- programs of the Federal Housing Administration dures for budgetary control of federal credit (FHA) and the Veterans Administration (VA) activities are highly desirable. Furthermore, I accounted for 90 percent of the total volume of shall renew my earlier recommendations for es- guaranteed and insured loans outstanding. This tablishment of a new budget commission to ana- proportion has since trended down and was lyze the appropriate accounting for federal credit expected to have been about 73 percent at the programs and for continuing analysis and evalua- end of the last fiscal year, mainly because of an tion of the appropriate tools—direct spending, expansion of loan guarantees into new areas— loans, loan guarantees, or tax expenditures—for such as military sales and student loans. achieving alternative program objectives. The provision of federal credit assistance through direct loans and loan guarantees to achieve particular social and economic objec- GROWTH OF FEDERAL CREDIT PROGRAMS tives has been widely recognized as a legitimate and valuable activity. Many credit programs As you know, federal credit programs have ex- originally were established to correct imperfecpanded enormously, both in amount and in tions in capital markets that denied credit to scope, in recent years. The total volume of some groups or made the cost of credit prohibioutstanding direct loans and loan guarantees, for tive. For example, the FHA-insured loan proexample, has been projected to total more than grams were devised during the Great Depression $540 billion by the end of the fiscal year, which to reduce the risks perceived by lenders. By ended last month. This amount is nearly triple pooling risks across a large number of loans the level of $190 billion reached just 10 years ago. issued in a standardized fashion, the government In addition, the volume of loans held by govern- program encouraged private lenders to advance ment-sponsored agencies was projected to total credit at a lower cost to borrowers and on less about $170 billion at the end of fiscal year 1981, restrictive terms than would otherwise have been up $20 billion from last year and more than four possible. Over time, these more liberal terms times the level of 10 years earlier. In fact, the gained general acceptance among all types of growth of such loans has been much larger than private lenders. anticipated, principally due to increased de- Many other federal credit assistance programs mands on the Federal Home Loan Banks. have been introduced over subsequent years to Federal credit activities, moreover, are likely foster social objectives. Increasingly, these proto continue to grow rapidly in the years ahead grams have involved substantial interest subsiunless deliberate efforts are made to constrain dies. According to estimates by the Office of them. The January budget projected that net Management and Budget, the present value of credit advanced under federal auspices—direct, the interest subsidy on new direct loan obligaguaranteed, and sponsored—would total more tions and commitments to guarantee loans in the than $100 billion during fiscal year 1982. The fiscal year just ended amounted to almost $27 Mid-Session Review of the fiscal year 1982 bud- billion. In contrast to the home mortgage area, get called for a significant reduction in loan moreover, the default rate in some of these obligations and guarantee commitments, and fur- programs—such as student loans and assistance ther reductions are soon to be announced. Even for low-income housing—has been comparativeso, if total credit flows in the coming years were ly high. Thus, the government has had to absorb roughly to match those of the past year, funds sizable, and in some cases unanticipated, default raised under federal credit auspices will account losses in addition to the measured interest rate for well over one-quarter of the total net funds subsidies to borrowers. In the past few years, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 847 federal government has also guaranteed to single guaranteed and the net economic effect would be borrowers sizable loans that carry a large poten- small. Growth in the net volume of guaranteed tial for default. loans outstanding, however, could have an effect similar to that of deficit spending. In addition, interest paid on the debt instruments issued by IMPACTS OF FEDERAL CREDIT PROGRAMS states and localities under the program is not subject to federal tax, as it would be on a direct Because the general purpose of federal credit debt issue of the federal government, so net tax programs, obviously, is to enable individual bor- revenues would also be reduced by an expansion rowers or groups of borrowers to obtain credit of the program. that would otherwise be unavailable to them or Of course, other credit programs have much available only at a higher cost, it follows that less similarity to noncredit federal spending. For these programs will generally tend to increase example, homebuyers who take out mortgages use of credit by program beneficiaries. Whether under federal guarantees could, in most inthis increase will, in turn, result in greater use of stances, obtain private credit without the guarancredit in the aggregate and whether such an tee, albeit at a slightly higher rate. Providing increase is desirable depends on the characteris- roughly equivalent assistance through direct fedtics of the particular programs and on the state of eral spending in this case would require the the economy at large. federal government to give homebuyers only a Let me give some examples to demonstrate the modest interest subsidy. The small size of this differences in the economic effects of federal subsidy suggests that net demands on real recredit assistance programs. In some cases, pro- sources and credit markets are affected relatively grams may serve as close substitutes for deficit- little by the guarantee program. Many cases financed federal spending. Consider, for exam- obviously fall somewhere between these two ple, a situation in which the Congress was extremes. Compare the effects of direct federal contemplating expanding the program in which loans and outright grants-in-aid. In both cases, the federal government guarantees debt issued beneficiaries gain immediate command over by state and local authorities who then use the goods and services. The major difference beproceeds to provide low-cost housing to the tween the two approaches—in the case of the poor. Many of the end results of such an expan- loan the government obtains a claim on the sion could be quite similar to those that would be beneficiary while it does not with the grant—is observed if the federal government were, alter- an important distinction. This distinction is, natively, to increase its direct spending to under- however, a distinction without substance in take the construction of the rental units and were those cases in which the borrower defaults. then to rent space on a subsidized basis. Note In general, the closeness of the analogy bethat under either approach construction funds tween assistance provided by federal credit prowould be provided by private investors either grams and deficit-financed direct federal spendthrough the acquisition of federally guaranteed ing appears to depend less on whether the aid in securities or by acquiring more Treasury securi- question is provided through direct loans or loan ties than otherwise; the same essential type and guarantees than on such things as creditworthivolume of productive resources would be used to ness of beneficiaries, the size and riskiness of the construct the rental units; and low-income fam- undertaking, and the relative ability of beneficiailies would be provided with better housing than ries to tap private credit sources on their own. they are otherwise able to obtain. As in the case of deficit-financed federal While stressing basic similarities, however, I spending, federal credit activities may reduce the should also note some important differences. The availability of credit to others who are not promost important is that loans must be paid back. gram beneficiaries. The extent to which such Thus, if such a program were to grow to a plateau "crowding out" takes place, however, depends and then remain constant in size, the volume of importantly on the state of conditions in the loan repayments would equal new loans being economy and financial markets. During reces- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
848 Federal Reserve Bulletin • November 1981 sionary periods when credit supplies are readily budget. This new approach, however, was unavailable, credit assistance may work mainly to comfortably silent on how federal loan guaranenable borrowers to obtain additional funds, tees were to be treated. In the early 1970s, which can be used to increase demands for goods moreover, some backsliding from the compreor services. Thus, in these periods the net result hensive coverage of the unified budget occurred, of credit assistance programs may be, to a great as a number of agencies were removed from the extent, to promote a more intense use of re- budget and newly established agencies were acsources and an expansion of economic activity corded off-budget status. rather than a transfer of credit (and resulting Furthermore, the advantages for orderly mareffective demand) from one borrower to another. keting of federal debt gained through creation of In times when less slack exists in resource the Federal Financing Bank (FFB) in 1974 had an utilization and credit market conditions are rela- unfortunate side effect. Since the FFB's activitively tight, however, there is a much greater ties have been off-budget from the outset, its tendency for credit extended under federal aus- acquisition of loans is not reflected in the budget. pices to channel loanable funds, and hence com- Accordingly, the budgetary scrutiny intended to mand over real resources, toward assisted bor- apply to direct loan programs as a result of the rowers and away from others. In other words, comprehensive coverage of the unified budget just as private borrowers can, at times, be tended to be eroded. And agencies that made crowded out of credit markets when federal direct, on-budget loans to the public were able to outlays are financed through the issuance of sell these loans to the FFB, thereby enabling Treasury debt, so some private borrowers can these agencies to extend new loans without conface higher credit costs when other selected straint. borrowers obtain loans with the assistance of the In recent years, this erosion process has begun federal government. Nothing need be inherently to be turned around. A number of important wrong with the resulting allocation of credit if the steps have been taken to make coverage of the federal intervention in credit markets reflects a unified budget more comprehensive and to imcareful assessment of the market imperfections prove controls of credit programs. In addition to that the government is trying to overcome and a incremental improvements in budget coverage, careful weighing of costs and benefits. Continu- major strides have been taken in the developous scrutiny of priorities under a credit budget ment of a separate credit-budget process. In the process is important, however, if such balancing past two years, totals have been calculated and of costs and benefits is to be achieved. And such presented in the budget for gross new direct loan scrutiny is essential in current circumstances obligations and new loan guarantee commitwhen the growth of credit is necessarily limited ments. Components of the credit-budget total by anti-inflation policies. have been shown in respective budget functions and have been subdivided by agency and program in the special analysis accompanying the BUDGETARY CONTROL OF budget and in the budget appendix. Also, the FEDERAL CREDIT ACTIVITIES outlays of the FFB (direct loans and loan-asset purchases) are now attributed to the originating As you know, congressional review and control agency, which in my view eliminates the tendenof federal credit activities have been evolving cy for the operation of the FFB to obscure the over time. The utilization of the "unified bud- nature of credit programs. A final important step get" concept, beginning with the 1969 budget, is taken by the Congress last year was to have the one notable watershed. At that time, the govern- budget resolutions include target ceilings for ment adopted for control purposes a budget total new loan obligations and total new guaranframework that was, in most respects, a cash tee commitments and to distribute these totals by budget function. accounting system. In making this choice, it was decided (after considerable debate) to include the Both the past and the current administrations net outlays of all direct lending programs on have also proposed that a substantial proportion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 849 of the credit-budget totals be made subject to need not imply changing the current procedures annual appropriations limitations. The January whereby legislation creating or expanding entibudget proposed that 63.8 percent of the credit tlements is referred to the Appropriations Combudget for fiscal year 1982 be so limited. Those mittee for review. The Board's recommendation programs exempted are limited to unambiguous that entitlements and emergency assistance proentitlements that cannot be effectively limited by grams be exempted from binding appropriations appropriations; programs that provide for un- ceilings is intended only to promote the effective foreseeable contingencies, such as deposit insur- operations of those programs thought by the ance; guarantees of certificates of beneficial Congress to be worthwhile, even in the event of ownership that are sold by the Farmers Home unanticipated demands on them resulting from Administration and the Rural Electrification Ad- natural disasters or unforeseen economic develministration; and a catchall of programs, such as opments. export promotion loans by the Commodity Cred- Although enactment of H.R. 2372 would go far it Corporation, that the last administration be- to bring order into the federal credit program lieved appropriate not to curtail due to economic scene, I would like to recommend some other circumstances. That final area of exemption, in steps. One is a systematic review of the treatparticular, deserves careful evaluation by the ment of federal credit programs in the unified Congress. budget. The current haphazard situation, in Broadening the coverage of the unified budget which some loan programs are included in the and the formulation of a separate but parallel unified budget and others are not, should be credit budget set the stage for a number of further ended. A careful analysis should be undertaken steps in implementing an effective process to of the question of whether or not the principal bring credit programs under systematic review amount (net) of all direct loans should be includand control. H.R. 2372 would formalize the ed in the unified budget and whether, if the credit-budget process implemented on an experi- principal amount of direct loans is excluded as I mental basis last year. This bill would amend the am inclined to prefer, the amount of the implicit Budget Act to apply to the credit budget the or explicit interest subsidy should be placed on same enforcement procedures and legislative budget. Similarly, a comprehensive review of timetables that apply to the rest of the budget. guarantee programs would be desirable in order The Federal Reserve Board, in general, enthusi- to determine whether the potential subsidy or astically endorses the establishment of these future outlay for defaults is taken appropriately formal procedures as, logically, the next step in into account. I have previously called for the budgetary control of credit programs. establishment of a new budget commission, The Board's view, however, is that the section which would be charged with analyzing and of this bill pertaining to appropriations limita- resolving these questions. In my view, the pastions should be modified. Limitations are, of sage of time has not reduced the advisability of course, central to the budgetary control process establishing such a commission. proposed by the previous administration and Finally, I recommend to this committee a endorsed by the present administration. Howev- continuing evaluation of the extent to which er, exemption of at least some emergency assist- direct spending, direct loans, loan guarantees, or ance and entitlement programs appears warrant- beneficial tax treatment can be used most effeced. The Board, therefore, suggests that all such tively to achieve particular program objectives programs continue to be exempted from appro- and the extent to which, in particular budget priations limitations at least until more experi- functions, there may be duplicative and excesence is gained with the new budget process and a sive use of these various approaches. The budget case-by-case review of these programs can deter- process has come a long way in providing the mine the possible difficulties or advantages of accounting framework and legislative process applying appropriations limitations to them. The needed to address such questions. I look forward exemption of entitlement and emergency assist- to further progress, and I believe that enactment ance programs from appropriations limitations of H.R. 2372 would contribute to it. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
850 Federal Reserve Bulletin • November 1981 Statement by Henry C. Wallich, Member, Board the deficit in the U.S. trade balance from $34 of Governors of the Federal Reserve System, billion in 1978 to $25 billion last year. The before the Subcommittee on Trade of the Ways reduction in the trade deficit occurred in the face and Means Committee, U.S. House of Repre- of a rise in the price of petroleum imports of sentatives, November 3, 1981. more than 200 percent, increasing our bill for imported oil to almost $80 billion in 1980. .A I am pleased to be here today, on behalf of the major factor explaining these trade develop- Federal Reserve Board, to discuss U.S. trade ments was the depreciation of the dollar between policy. mid-1977 and late 1978. The drop of 17 percent in In my remarks I should like first to review the international value of the dollar over this recent developments in our trade and current period provided incentives for U.S. firms to sell accounts and then to examine briefly prospects more of their products in export markets and to for the future and the more important factors compete more effectively with imports. Also, in affecting that outlook. Among these factors are 1978 and 1979 the economies of most of our general macroeconomic policies here and abroad major trading partners were expanding quite as well as policies that are specifically directed vigorously. toward trade in both goods and services. I shall The fact that U.S. firms responded to these also discuss the relationship between both types incentives, with a consequent improvement in of policies and our international trade perfor- our trade position, demonstrates that U.S. promance. ducers can compete effectively in world markets. In looking at our past trade performance, it is This ability to compete does not deny the imporimportant to realize that, although particular tance of continuing efforts both here and abroad sectors face problems that are sometimes severe, to reduce and eliminate impediments to our the United States has in general remained quite exports. What our recent trade performance competitive in the world economy. This is mani- does indicate is that we can maintain a strong fested most dramatically in the recent expansion U.S. trading position without resorting to protecof our exports: between 1978 and 1980 total U.S. tionist policies. exports increased nearly 60 percent in value and Before turning to the outlook for the U.S. more than 20 percent in volume. While agricul- trade and current accounts, it is important to tural exports continued to grow strongly over note that, although the U.S. merchandise trade this period, the major source of strength was the balance has been in deficit for several years, this nonagricultural component. This strength was deficit has been partially offset, and in recent broadly based in consumer goods, capital goods, years more than fully offset, by a surplus on and industrial supplies. With U.S. exports in- nontrade items. More generally, a remarkable creasing more rapidly than those of our main feature of U.S. international transactions is that competitors, the U.S. share of world exports of service account items constitute a large fraction manufactures rose from 17 percent in 1978 to of total current account receipts and payments. slightly more than 20 percent in the first quarter Service account receipts were 35 percent of total of this year. receipts (that is, merchandise exports plus earn- Furthermore, this strong expansion of our ings from service exports) in 1980, the same as in exports was not matched by a comparable in- 1977. On the payments side, the proportion is crease in imports. In value terms, total U.S. somewhat lower: in 1977, service account paymerchandise imports rose somewhat more than ments were 22 percent of total payments, and 40 percent between 1978 and 1980, whereas the this fraction rose to 25 percent in 1980. total volume declined slightly, mainly as a result The largest positive component of the service of a drop of nearly 20 percent in the quantity of account has been net investment income, which oil imports. The decline in import volume oc- increased from about $18 billion in 1977 to nearly curred at the same time that U.S. real gross $33 billion last year. This substantial rise in our national product was rising. net earnings on foreign investment reflects both The strength in U.S. exports and the relative the fact that U.S. residents have been investing weakness in imports resulted in a reduction in more abroad than foreigners have been investing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 851 in this country and the fact that foreign earnings trading partners. Imports of the Organization of of U.S. oil companies have grown in recent Petroleum Exporting Countries (OPEC) will years. probably continue to grow at a rapid rate next As the surplus on services has grown and the year, and this growth will provide a source of trade deficit has declined, the U.S. current ac- strong demand for U.S. exports, enabling them count (which includes merchandise trade, ser- to continue to expand. Recently, U.S. exports to vices, and transfers) has shifted from a deficit of OPEC have been expanding at year-over-year $14 billion in 1977 and 1978 to a surplus of nearly rates of more than 25 percent. At the same time, $4 billion in 1980. In the first half of this year, the moderation in increases in oil prices, which current account surplus was at an annual rate of seems likely, and continued reduction in import $8 billion. The surplus current account position demand should hold down our oil import bill. of the United States over the past two and one- On the negative side, the appreciation of the half years contrasts with that of many industrial dollar from the level of 1980—to the extent that it countries—for example, continental European is not offset by a better inflation performance countries and Japan—which have had current here compared with abroad—will make it more account deficits, some of which are continuing. difficult for U.S. exporters to sell abroad and will Recognition of the underlying strength of the provide encouragement for imports. Indeed, this U.S. external position, as^ evidenced by our impact of the appreciation appears to have startcurrent account surplus relative to the deficits in ed in the third quarter of this year. Another several major foreign countries, has contributed, negative factor is likely to be attempts by non-oil along with other developments, to the substantial developing countries to restrain their import deappreciation of the dollar in foreign exchange mands and to reduce their large current account markets this year. deficits to more manageable levels. In providing this background I wish to empha- The net effect of the interaction of these facsize two points. First, it is important for the tors is likely to be a shift from a current account United States to continue to have a strong export surplus this year to a deficit in 1982. But I would sector that includes a broad range of domestic emphasize that a surplus or deficit in our current industries and firms. Expanding exports as a transactions is the difference between two large consequence of improved domestic productivity numbers—each on the order of $350 billion to contributes to the strength of the U.S. economy $400 billion—and point estimates are therefore and of the dollar, which in turn helps to moderate very uncertain. Moreover, a shift to a current domestic inflation. Second, although particular account deficit should not necessarily be cause industries certainly face strong competition from for concern. First, it need not reflect a deterioraabroad, we are not faced with a crisis in our trade tion in the domestic determinants of U.S. composition or an overall deterioration in our basic petitiveness, but rather the recent strength of the international competitiveness. Our present posi- dollar. Second, a U.S. deficit would match in tion, which is fundamentally a healthy one, al- part the OPEC surplus. While the OPEC current lows us to address issues of trade policy from the account surplus is expected to decline in 1982, it perspective of long-term policy goals rather than will nevertheless be of sizable magnitude. This as a hasty response to a deteriorating trade and current account surplus must be matched by payments situation. corresponding deficits on the part of other coun- Turning now to the outlook for the trade and tries. The developing countries will continue to current accounts, a number of factors must be run current account deficits next year, but it taken into consideration. First, real growth in the would be healthy if some of them were reduced. economies of our major industrial trading part- Consequently, some industrial countries may ners next year is likely to be somewhat better also have deficits (as was the case for both than this year, which will tend to have a positive Germany and Japan in 1980) as counterparts to impact on our trading position. A positive impact the OPEC surplus. Therefore, it is not necessariis also likely to arise as the U.S. inflation rate ly undesirable for the United States to have a continues to decline, especially if it declines moderate current account deficit at the same relative to the average inflation rate in our main time a large OPEC surplus exists. On the con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
852 Federal Reserve Bulletin • November 1981 trary, if all industrial countries attempted to segment of the economy would undoubtedly be achieve current account surpluses in this situa- transitory and would be outweighed by the damtion, a self-defeating decline would occur in the age to our fight against inflation. We will not gain volume of trade. As expenditures of OPEC coun- as world traders in the long run if we have a high tries grow to match their earnings, their surplus- inflation rate accompanied by a depreciating es, as well as other countries' deficits, will dollar. decline. Our international trade has of course benefited Focusing now on economic policy and interna- considerably from the financial services providtional trade, I would like first of all to underscore ed by American banks. They not only have the importance of achieving a noninflationary but provided the direct financing needed for the expanding domestic economy as the basic under- healthy expansion of U.S. exports but also have pinning of a strong and expanding U.S. foreign fostered the growth of U.S. and world trade trade sector. We have already made some prog- through their international lending activities. ress in reducing the rate of inflation, but we still I would note that the Federal Reserve has have a long way to go before inflation is brought recently acted to enable U.S. financial institudown and stays down. In working toward this tions to provide additional international banking important national objective, the Federal Re- services and thereby provide more facilities for serve has a special responsibility to restrain the the financing of foreign trade. In response to the expansion of money and credit. In the short run, congressional mandate in the International Bankone effect of monetary restraint, in an economy ing Act, the Federal Reserve modified the rules in which considerable momentum to inflation for Edge corporations to permit them to finance still exists, is to contribute to the strength of the companies that are engaged in exporting and to dollar. As I mentioned earlier, the appreciation establish domestic branches that can provide of the dollar above the level in 1980 will tend to international banking services in new areas. The dampen the expansion of exports and make concrete benefits of these actions in expanding imports more competitive with domestic substi- international banking services, and in particular tutes. in facilitating the financing of U.S. exports, will Exports and imports of goods and services of course be observed only gradually. have become increasingly important in the U.S. It is important that other government policies economy, each rising from 7 percent of GNP in contribute to improving the productivity of the 1970 to 13 percent in 1980. Consequently, in U.S. economy. We need to continue our efforts making forecasts of the economy and in analyz- to create an environment favorable to the growth ing the effects of economic policies, it has now of productivity and thereby both directly and become essential to take account of how changes indirectly to maintain a strong trading position. in foreign economic conditions and exchange Reduction in the burden of government regularate developments affect our exports, imports, tion would be helpful in this regard. More specifiand other indicators of our economic well-being. cally, a number of government policies exist that In an economy increasingly open to interna- probably could be amended in ways that would tional influences, it is of course necessary to contribute materially to the exploitation of exrecognize that export- and import-competing port opportunities by the private sector. Among sectors of the economy will be particularly af- the impediments that have been mentioned are fected by monetary policy through the impact the absence of clear guidelines under the Foreign that policy has on exchange rates. However, Corrupt Practices Act, the reporting burden of these sectors will benefit in the longer run from the antiboycott provisions of the Export Adminthe improved price performance that is the objec- istration Act, and requirements that certain U.S. tive of monetary policy. Recent progress in re- exports be shipped in American vessels. ducing inflation, part of which has come about as Deregulation and other measures that improve a result of the strong dollar, would be jeopar- the efficiency of the economy are the appropriate dized by any relaxation in current policy intend- means for enhancing our competitive position in ed to aid a particular sector. Any benefit to that world markets. Competitiveness must be fos- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 853 tered not only in industries that export, but also the exporter's costs of production rise when throughout our economy and especially in sec- protection is granted to those sectors of the tors in domestic markets that may face competi- economy that compete with imports. We need to tion from the exports of other countries. What recognize that measures designed to improve one often happens is that industries protected from part of the balance of trade by reducing imports the winds of foreign competition do not feel it may well have the counterproductive effect of necessary to implement the innovations or un- making our exports less competitive in world dertake the investment required to stay competi- markets. tive. In certain cases—the steel industry is often In summary, U.S. trade policy must be viewed cited—costs are allowed to rise far out of line in the context of the broad U.S. economic objecwith costs in the rest of the economy, and then tives of maintaining a sustainable rate of ecoprotection is granted from lower-cost foreign nomic growth and reducing our rate of inflation. imports. Policies that increase the efficiency and produc- When domestic industries maintain higher tivity of our economy and encourage the moveprices as a result of tariffs, quotas, or less formal ment of resources into those sectors that are export restraints abroad, the American consum- expanding will help attain these objectives. er is not the only one who suffers. The American Through such policies, U.S. industries will be on exporter is hurt as well. Since part of the export- a strong footing to compete in world markets and er's inputs are imported or consist of domestical- will thereby make a contribution to maintaining ly produced goods that compete with imports, the strength of the dollar. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
854 Announcements CHANGE IN DISCOUNT RATE SURCHARGE Cleveland, Richmond, Chicago, St. Louis, Minneapolis, and San Francisco. (Similar action was The Federal Reserve Board has approved a 1 taken by the directors of the Federal Reserve percentage point reduction—from 3 percent to 2 Banks of Atlanta and Kansas City, effective percent—in the discount rate surcharge that ap- November 3, and of Dallas, effective November plies to large, frequent borrowers at the discount 6.) The discount rate is the interest rate that window. (The reduction was effective on Octo- applies to borrowings from the District Federal ber 12 for the Federal Reserve Banks of Philadel- Reserve Banks. phia, Richmond, Atlanta, Chicago, Dallas, and San Francisco and on October 13 for the Reserve Banks of Boston, New York, Cleveland, St. ADOPTION OF FEE SCHEDULES Louis, Minneapolis, and Kansas City.) No change was made in the basic discount rate of 14 The Federal Reserve Board has adopted fee percent. schedules for its transportation services in sup- The adjustment is a further technical response plying currency and coin to the nation's banks to the decline over recent weeks in short-term and thrift institutions, effective January 28, 1982. money market rates. The Board emphasized the The Board also adopted a policy for access to action was taken within the context of the con- cash processing services. tinuing policy to restrain growth in money and The Board acted under the Monetary Control credit. Act of 1980, which requires pricing of Federal In announcing the change, the Board acted on Reserve services, and after consideration of requests from the directors of the 12 Federal comment received on a proposal published in Reserve Banks. The discount rate is the interest August 1980. rate that is charged for borrowings from the The fee schedules apply a mark-up of 16 District Federal Reserve Banks. percent, as a private sector adjustment factor (PSAF), to the System's administrative costs in providing coin and currency transportation ser- CHANGE IN DISCOUNT RATE vices. The Federal Reserve Board approved a reduc- Transportation services. The revised fee tion in the basic discount rate from 14 percent to schedule for armored car carrier service consists 13 percent, effective November 2, 1981. No of a volume charge (a fee per delivery or deposit change was made in the 2 percent surcharge that of a bag of currency or coin) and a charge per currently applies to large, frequent borrowers at stop. The per-stop charges appear in the fee the discount window. schedule by zone. This action was taken against the background The Board established a $75 ceiling on the perof recent declines in short-term interest rates and stop charge for 1982 and plans to review during the reduced level of adjustment borrowing at the the latter part of 1982 the need to continue the discount window. It is consistent with a pattern ceiling in 1983. It is intended that Reserve Banks, of continued restraint on growth of money and together with depository institutions they serve, credit. strive to reduce costs of services to remote In announcing the change, the Board acted on points. Federal Reserve Banks will supply inforrequests from the directors of the Federal Re- mation on what delivery points are included in a serve Banks of Boston, New York, Philadelphia, zone. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
855 Registered mail service. Fees for shipment of not recur. In addition, failure to comply with certain currency and coin by mail include the cost of specific provisions of the acts has been judged by the Board to be particularly serious and usually to warrant postage, registered mail, and full insurance. retrospective action to correct the conditions resulting There is no volume charge since fees reflect from the violations. actual mail service. The Board adopted a ceiling of $37.50 for one-way mail service for 1982. The Enforcement policy statement authority. This enuse of registered mail is intended to be limited to forcement policy statement is issued pursuant to the those end points where armored carrier service is Board's authority under the Equal Credit Opportunity Act (ECOA) (15 U.S.C. 1691, et seq.), the Fair Housunavailable. Reserve Banks will make determiing Act (42 U.S.C. 3601, et seq.), and 8(b) of the nations whether to use registered mail on a case- Federal Deposit Insurance Act (12 U.S.C. 1818(b)). by-case basis. Enforcement policy statement. The objective of this enforcement policy statement is to ensure that the Access policy. The Board regards currency rights of credit applicants are protected by requiring and coin processing (paying, receiving, and veristate member banks to take corrective action for fying coin and currency, and issuing, sorting, certain, more serious past violations of the Equal canceling, and destroying currency) as govern- Credit Opportunity and Fair Housing Acts, as well as mental activities, and processing is, therefore, to be in compliance in the future. In an effort to achieve that objective, the Board will encourage volnot priced. As for access to these processing untary correction and compliance with the acts. services, the Board has adopted a policy provid- Whenever violations addressed by this policy stateing that by the end of 1983 all Federal Reserve ment are discovered, the state member bank will be offices will offer, at a minimum, access to all required to take action to ensure such violations will depository institutions seeking direct processing not recur and to correct the effects of violations discovered. services on the following basis: (1) one office per The Board generally will require the state member institution, or (2) one office of a depository bank to take action to correct conditions resulting institution per municipality (subject to adjustfrom violations occurring within 24 months before the ment for special circumstances). discovery of violations by the Board, except for violations concerning adverse action notices for which corrective action will be required for violations occurring within six months before discovery. ADOPTION OF POLICY STATEMENT Violations in the following areas are considered serious by the Board and will usually be subject to The Federal Reserve Board announced on Octo- retrospective corrective action: ber 13, 1981, its adoption of a policy statement 1. Discouraging applicants on a prohibited basis in violation of the Fair Housing Act or sections 202.4 or on enforcement by state member banks of the 202.5(a) of Regulation B. Equal Credit Opportunity and Fair Housing 2. Using credit criteria in a discriminatory manner in Acts. evaluating applications in violation of the Fair Housing The policy statement, which was recommend- Act or sections 202.4 through 202.7 of Regulation B. ed to the Board and to the other federal financial 3. Imposing different terms on a prohibited basis in violation of the Fair Housing Act or sections 202.4 or institutions' regulators by the Federal Financial 202.6(b) of Regulation B. Institutions Examination Council, follows. 4. Requiring cosigners, guarantors, or the like on a prohibited basis in violation of section 202.7(d) of Regulation B. Policy Statement 5. Failing to furnish separate credit histories as required by section 202.10 of Regulation B. This document sets forth the general policies that the 6. Failing to provide an adequate notice of adverse Board of Governors of the Federal Reserve System action under section 202.9 of Regulation B. will apply in enforcing the Equal Credit Opportunity This policy statement will neither preclude the use Act and the Fair Housing Act. of any administrative authority that the Board pos- The Board believes it appropriate to remind state sesses to enforce these laws, nor limit the Board's member banks of their responsibilities under these discretion to take other action to correct conditions laws and that the Board will vigorously enforce them. resulting from violations of these laws, nor preclude State member banks will be required to institute referral of cases to the Attorney General. Additionalprocedures to assure that all violations of the acts, ly, this policy statement does not foreclose a credit including those not cited in this policy statement, will applicant's right to bring civil action under the Equal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
856 Federal Reserve Bulletin • November 1981 Credit Opportunity or Fair Housing Acts or to file a provide a permanent exemption from reserve complaint with the Department of Justice or the De- requirements for smaller depository institutions. partment of Housing and Urban Development for The deferral affects nearly 18,000 depository violations of housing laws. Further this policy stateinstitutions, including about 17,000 credit ment does not supersede or substitute for any regulaunions. These institutions are estimated to hold tions or enforcement policies issued by the Board or the Department of Housing and Urban Development Vi of 1 percent of all deposits. Those offering under the Fair Housing Act. transaction accounts or nonpersonal time deposits are subject to reserve requirements. AMENDMENT TO BOARD RULES PROPOSED ACTIONS The Federal Reserve Board on October 20, 1981, issued an amendment to its rules regarding dele- 1. The Federal Reserve Board has requested gation of authority that delegates to the Reserve public comment on a staff proposal to change the Banks authority to make certain determinations way depository institutions maintain reserves. regarding "grandfather" privileges for nonbank- Comment should be received by January 15, ing activities of bank holding companies. 1982. The amendment provides that Reserve Banks The proposed change, if adopted by the Board, may make determinations permitting such activi- would introduce essentially contemporaneous ties to continue when all of the following condi- reserve requirements on transaction accounts for tions have been met: medium-sized and larger depository institutions 1. The bank holding company is a "company instead of the lagged reserve system now in covered in 1970" under section 4(a)(2) of the effect. Transaction accounts include checking, Bank Holding Company Act. negotiable order of withdrawal, and automatic 2. The nonbanking activities raise no signifi- transfer accounts. cant unresolved policy issues. Specific comment was requested by the Board 3. The bank holding company has been lawful- on the implications of the proposed change for ly and continuously engaged in such activities the functioning of the money markets and the since June 30, 1968. operations of depository institutions, including the probable impact on reserve management and deposit monitoring systems. When possible, the DEFERRAL OF RESERVE REQUIREMENTS Board would like specific estimates of the costs involved, both start-up and continuing. The Federal Reserve Board has extended for six The Board emphasized that its decision to seek months the deferral of reserve and reporting public comment on the proposal in no way requirements for nonmember depository institu- commits it to approve a final rule at some time in tions with less than $2 million in total deposits. the future. The Monetary Control Act of 1980 made cer- Under the present lagged reserve system, detain deposits of nonmember as well as member pository institutions must post their required depository institutions subject to federal reserve reserves in any given week, based on their requirements. To lessen the burden for very deposit levels two weeks earlier. small institutions and in view of operational Contemporaneous reserve requirements considerations, the Board had previously de- (CRR) have some potential for improving the ferred until November 1981 reserve require- implementation of monetary policy by strengthments for institutions with less than $2 million in ening the linkage between the reserves held by total deposits as of December 31, 1979. This depository institutions and the money supply. deferral will now extend through April 1982. The There is some question, however, whether such Board extended the deferral period since legisla- potential gains would increase short-run volatilition under consideration in the Congress would ty in the money market. The Board noted that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 857 any potential gains in monetary control should reserve period. However, lengthening the renot be exaggerated, in view of the sizable re- serve period from one week to two weeks promaining slippages between reserves and money vides the same additional flexibility for managing and in view of the inherent volatility of short-run reserve positions as would a doubling of the money flows. carry-over limit with a one-week period. Depository institutions also have added costs The Board also desires comment on variations in shifting to CRR—the cost of altering deposit of the proposal such as staggering reserve periinformation systems and the complications that ods for different sets of institutions with half might result in reserve management. Conse- settling every other week, lengthening reserve quently, the design and desirability of a CRR computation and maintenance periods to three or system must balance gains in monetary control four weeks, and increasing the percentage of against potential costs. allowable carry-over. Comments are requested on the following pro- 2. The Federal Reserve Board has requested posal: comment on a proposed amendment to Regula- —CRR would apply only to institutions that tion K (International Banking Operations) to report their deposit levels weekly to the Federal permit Edge corporations to engage in certain Reserve. Certain institutions with $15 million or investment advisory and management services in less in total deposits may report quarterly, while the United States. The Board requested comcertain others with deposits under $2 million do ment by December 18, 1981. not report. 3. The Board has requested comment by De- —Reserves would be maintained over two- cember 7, 1981, on a proposal to amend the week periods. These periods would continue to definition in Regulation Z (Truth in Lending) of end on Wednesday, and all institutions would "arranger" of credit. settle their reserve accounts at the same time. 4. The Board has asked for public comment on a —Required reserves would be computed on proposal to amend Regulation Y (Bank Holding the basis of average deposit levels over a two- Companies and Change in Bank Control) to add week period ending on Monday. Reserves re- the provision of management consulting advice quired against transaction deposits would be to unaffiliated nonbank depository institutions to maintained in the two-week maintenance period the activities permissible for bank holding comending on the Wednesday two days after the end panies. The Board requested comment by Deof the computation period. This two-day interval cember 30, 1981. is provided to facilitate the computation of re- 5. The Board has proposed for public comment quired reserves by affected institutions. an amendment to its Regulation T (Credit by —Required reserves for other reservable li- Brokers and Dealers) that would permit brokers abilities would also be computed for two-week or dealers to make use of U.S. government periods ending on Monday, but the actual re- securities or irrevocable letters of credit as colserves would be posted in the two-week mainte- lateral when they borrow or lend securities. The nance period beginning 17 days later, on a Thurs- regulation now requires a deposit of cash as day. collateral in such circumstances. The Board re- —Vault cash eligible to be counted as a re- quested comment by January 5, 1982. serve in a maintenance period would continue to be lagged and would be equal to vault cash holdings during the computation period ending SYSTEM MEMBERSHIP: 17 days before the beginning of that maintenance ADMISSION OF STATE BANKS period. —No change would be made in the current The following banks were admitted to memberlimit of plus or minus 2 percent of daily average ship in the Federal Reserve System during the required reserves that applies to the carry-over period September 11 through November 10, of reserve surpluses or deficiencies into the next 1981: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
858 Federal Reserve Bulletin • November 1981 Alabama Illinois Boaz First Bank of Boaz Dixon City Bank and Trust Company Arizona Texas Phoenix Camel Bank, Incorporated Manvel Citizens Bank and Trust Colorado Wisconsin Bailey Park County Bank Madison Wisconsin Independent Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
859 Legal Developments AMENDMENT TO REGULATION A either a security position in lieu of margin (cover) is held in the account or the amount of margin pre- The Board of Governors of the Federal Reserve Sys- scribed by the Board from time to time in § 220.8 of tem has amended its Regulation A, "Extensions of this part (the supplement to Regulation T) is includ- Credit by Federal Reserve Banks," (12.CFR Part 201) ed in the adjusted debit balance. for the purpose of reducing the discount rate surcharge (3) A security position held in the account may that applies to large, frequent borrowers at the dis- serve in lieu of the margin required for writing a call count window. or a put, if the following conditions are met: Effective September 22, 1981, section 201.51 is (i) For writing a call, the covering long security amended as set forth below: position shall be valued at no more than the exercise price of the call or Section 201.51—Short Term Adjustment Credit (ii) For writing a put, the amount of margin for Depository Institutions required for a covering short security position shall be based on a value not less than the exercise Section 201.51 is amended in the last sentence by price of the put. removing "4 per cent" and inserting in lieu thereof "3 (4) Any security position held in the account which per cent". serves in lieu of the margin required for a put or a call shall be unavailable to support any other option transaction in the account. AMENDMENT TO REGULATION T (5) The customer may either designate at the time the option order is entered which security position The Board of Governors of the Federal Reserve Sys- held in the account is to serve in lieu of the margin tem is amending Regulation T (12 CFR Part 220) to required or have a standing agreement with the provide a separate margin requirement for options on creditor as to the method to be used for making the debt securities issued or guaranteed by government determination on any given day. entities (exempted debt securities). The Board's existing margin rule for options was adopted to apply to 2. Section 220.8 (b) and (j) are revised to read as options written on corporate equity securities. follows: Effective October 26, 1981, the Board adopts the following amendments to sections 220.4(i) and 220.8(b) Section 220.8—Supplement and (j): * * * ** 1. Section 220.4(i) is revised to read as follows: (b) Maximum loan value for a special bond account. The maximum loan value of an exempted security, an Section 220.4—Special Accounts OTC margin bond, or a registered nonequity security which is not a put, call or combination thereof shall be as determined by the creditor in good faith. No put, call or combination thereof shall have any loan value. (i) Special bond account. (1) In a special bond account a creditor may extend and maintain credit on any exempted security, regis- (j) Margin required for the writing of options. tered non-equity security, or OTC margin bond. The maximum loan value of securities held in this ac- (1) The amount to be included in the adjusted debit count shall be as prescribed from time to time in balance of a general account, special bond account, § 220.8 of this part (the supplement to Regula- or special convertible debt security account pursution T). ant to paragraphs (d)(5) and (i) of § 220.3 of this part, (2) Put and call options on exempted securities may as the margin required for the issuance, endorsebe issued, endorsed or guaranteed in this account if ment, or guarantee of any put or call on an equity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
860 Federal Reserve Bulletin • November 1981 security shall be 30 per cent of the current market present any significant unsettled policy issues; value of the underlying security with an adjustment and for any applicable increase or reduction. (iii) The bank holding company was lawfully en- (2) The amount to be included in the adjusted debit gaged in such activities as of June 30,1968 and has balance of an account pursuant to § 220.4(i) of this been engaged in such activities continuously part as the margin required for the issuance, en- thereafter. dorsement, or guarantee of a put or call on an exempted debt security or the security position to be held in lieu of margin shall be equivalent to (i) The BANK HOLDING COMPANY AND BANK MERGER amount specified by the rules of the national securi- ORDERS ISSUED BY THE BOARD OF GOVERNORS ties exchange on which the option is traded provided that all such rules have been approved or amended Orders Under Section 3 of Bank Holding by the Securities and Exchange Commission pursu- Company Act ant to sections 19(b) or 19(c) of the Securities Exchange Act of 1934, or (ii) in the case of an option Jefferson County Bancorp., Inc., on an exempted debt security which is not traded on Hillsboro, Missouri an exchange an amount or security position which the creditor in good faith deems to be equivalent to Order Approving Acquisition of a Bank Holding the margin or the cover on comparable exchange- Company traded options. Jefferson County Bancorp., Inc., Hillsboro, Missouri, has applied for the Board's approval under section AMENDMENT TO RULES REGARDING 3(a)(5) of the Bank Holding Company Act (12 U.S.C. DELEGATION OF AUTHORITY § 1842(a)(5)) to acquire at least 50.63 percent of the voting shares of Century Bancshares Corporation, St. The Board of Governors of the Federal Reserve Sys- Louis, Missouri ("Century"), and thereby indirectly tem has amended its Rules Regarding Delegation of to acquire North St. Louis Trust Company, St. Louis, Authority (12 CFR Part 265) to delegate to the Reserve Missouri ("Bank"). Banks authority to make determinations regarding Notice of the application, affording opportunity for indefinite "grandfather privileges" for certain noninterested persons to submit comments and views, has banking activities of eligible bank holding companies been given in accordance with section 3(b) of the act. under section 4(a)(2) of the Bank Holding Company The time for filing comments aAd views has expired, Act. and the Board has considered the application and all Effective October 20, 1981, section 265.2(f) of the comments received, including those of minority share- Board's Rules Regarding Delegation of Authority is holders of Century, in light of the factors set forth in amended by adding paragraph (54) as follows: section 3(c) of the act (12 U.S.C. § 1842(c)). Applicant, through its ownership of Jefferson County Bank and Trust Company, Hillsboro, Missouri, is Section 265.2—Specific Functions Delegated to the 454th largest banking organization in Missouri, Board Employees and Federal Reserve Banks with deposits of $8.8 million.1 Century, through its ownership of Bank, is the 398th largest banking organi- ^ * * * zation in the state with deposits of $19.0 million. Upon consummation of the proposal, Applicant would rank (54) Under the provisions of section 4(a)(2) of the as the 234th largest banking organization in Missouri Bank Holding Company Act relating to grandfather with . 11 percent of total commercial bank deposits in privileges for certain nonbanking activities of bank the state. holding companies, to determine that termination of Applicant's subsidiary bank is the 78th largest of 82 grandfathered activities of a particular bank holding banking organizations in the St. Louis banking marcompany is not warranted: Provided, The Reserve ket2 with .08 percent of deposits in commercial banks Bank is satisfied all of the following conditions are met: 1. Banking data regarding state market shares are as of December 31, 1980. (i) The company or its successor is "a company 2. The St. Louis banking market is defined as the St. Louis Ranally covered in 1970;" Metro area and includes all of the City of St. Louis and St. Louis County, portions of Franklin, Jefferson, Lincoln, and St. Charles (ii) The nonbanking activities for which indefinite Counties in Missouri, and portions of Jersey, Macoupin, Madison, grandfather privileges are being sought do not Monroe, and St. Clair Counties in Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 861 there.3 Bank is the 66th largest banking organization in By order of the Board of Governors, effective the St. Louis market, with .18 percent of market October 21, 1981. deposits. Thus, consummation of the proposal would result in the elimination of some existing competition. Voting for this action: Chairman Volcker and Governors Although the Board normally considers the elimina- Schultz, Wallich, Partee, Teeters, Rice, and Gramley. tion of existing competition as an adverse factor, the Board regards the effects on competition in this case to (Signed) WILLIAM W. WILES, be insignificant. [SEAL] Secretary of the Board. The financial and managerial resources of Applicant and its subsidiary bank are generally satisfactory. United Bank Corporation of New York, Future prospects of Century and its subsidiary bank Albany, New York are considered to be generally satisfactory, particularly in light of the improvements that Applicant expects to make. Although Applicant will incur some debt in Order Approving Acquisition of Bank connection with this proposal, Applicant appears to have sufficient flexibility to service the debt without United Bank Corporation of New York ("UBNY"), adversely affecting the financial condition of its exist- Albany, New York, a bank holding company within ing banking subsidiary or Bank. Accordingly, consid- the meaning of the Bank Holding Company Act, has erations relating to banking factors are consistent with applied for the Board's approval under section 3(a)(3) approval of the application. Applicant intends to ex- of the Bank Holding Company Act (12 U.S.C. pand the services offered by Bank to include full § 1842(a)(3)) to acquire 100 percent of the successor by service banking on Saturdays and to offer maximum merger to The Rondout National Bank ("Bank"), interest rates on savings accounts. Thus, consider- Kingston, New York. ations relating to the convenience and needs of the Notice of the application, affording opportunity for community to be served are consistent with approval. interested persons to submit comments, has been given in accordance with section 3(b) of the act. The Based upon the foregoing and other considerations reflected in the record of this application,4 it is the time for filing comments has expired, and the Board has considered the application and all comments re- Board's judgment that consummation of the proposal to acquire Bank would be consistent with the public ceived in light of the factors set forth in section 3(c) of interest and that the application should be approved. the act. On the basis of the record, the application is approved UBNY, with deposits of $1.8 billion,1 is the 15th for the reasons summarized above. The transaction largest commercial banking organization in New York, shall not be made before the thirtieth calendar day holding 1.1 percent of total deposits in commercial following the effective date of this Order, or later than banks in the state through its six subsidiary banks. three months after the effective date of this Order, Acquisition of Bank, which holds deposits of $46.8 unless such period is extended for good cause by the million, and ranks 65th among commercial banks in Board, or by the Federal Reserve Bank of St. Louis, New York, would increase UBNY's share of statepursuant to delegated authority. wide commercial bank deposits by only .03 percent. Accordingly, consummation of this proposal would 3. Banking data for the St. Louis market are as of June 30, 1980. not significantly increase the concentration of com- 4. The Board has considered the comments of minority sharehold- mercial banking resources in the state. ers of Century ("Protestants"), who have alleged that Applicant, UBNY is the second largest of 21 banking organizathrough its principal shareholders, has already acquired more than 5 percent of the shares of Century without the Board's prior approval, tions competing in the Mid-Hudson banking market2 in violation of section 3(a)(3) of the act. Protestants base their and holds 11.8 percent ($143 million) of total deposits contention on the previous acquisition by Applicant and Applicant's three shareholders of 4,555 shares each, representing approximately in commercial banks in that market through 11 banking 3.8 percent, or 15.2 percent in the aggregate, of Century's 120,000 offices. Bank is the ninth largest banking organization outstanding voting shares. The Board has determined that Protesin the market and holds 3.8 percent of market deposits tants' claim is nonmeritorious. There is no evidence in the record to indicate that Applicant's principals purchased shares of Century on through its seven offices. Upon consummation of the behalf of Applicant. Indeed, Applicant appears to be subject to the proposal, UBNY would rank as the largest banking individual control of the three principals who together own 100 percent of Applicant. Moreover, the record includes a statement by organization in the market with 15.6 percent of market Applicant's principals that they intend to carry their investments in deposits. Century as personal investments if this application is denied and that there are no agreements or understandings to indemnify the principals against loss if the application is denied. Accordingly, the Board is satisfied that the acquisition of shares of Century by Applicant's 1. All banking data are as of December 31, 1980. principals was made in their individual capacities and thus was not 2. The Mid-Hudson market includes Dutchess and Ulster Counties subject to the Board's prior approval under the act. and the Newburgh (or northeastern) area of Orange County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
862 Federal Reserve Bulletin • November 1981 Although such a combination of size and market the public interest and that the application should be shares might normally raise some concern about the approved. elimination of significant existing competition, the On the basis of the record, the application is ap- Board notes that several facts in the record in this case proved for the reasons summarized above. The transindicate that these factors alone do not accurately action shall not be consummated before the thirtieth reflect the effects of this application on existing com- calendar day following the effective date of this Order, petition. Following consummation of the proposal, the or later than three months after the effective date of Mid-Hudson banking market would continue to be one this Order, unless such period is extended for good of the least concentrated banking markets in New cause by the Board or by the Federal Reserve Bank of York State. The effects of the proposal on competition New York, pursuant to delegated authority. are further mitigated by the toehold presence in the By order of the Board of Governors, effective market of three of the nation's 15 largest banking October 5, 1981. organizations. As the Board has noted on previous occasions, the competitive influence of these large Voting for this action: Chairman Volcker and Governors firms cannot always be measured by their market Schultz, Wallich, Partee, Rice, and Gramley. Voting against this action: Governor Teeters. shares alone, especially with respect to their ability to serve commercial customers.3 The Board also has considered the presence of (Signed) JAMES MCAFEE, savings and loan associations and mutual savings [SEAL] Assistant Secretary of the Board. banks in the market. Although the Board continues to view commercial banking as the relevant line of commerce in determining the competitive effects of a Orders Under Sections 3 and 4 of Bank proposal, the Board has stated that it may be appropri- Holding Company Act ate in particular cases to take into consideration direct competition from thrifts in specific areas when evaluating various competitive influences.4 In view of the State Street Boston Corporation, absolute size and significant deposit-taking role of Boston, Massachusetts thrifts in the Mid-Hudson market, as well as their expanded powers, the Board believes that the influ- Worcester Bancorp, Inc., ence of thrift institutions further diminishes the ad- Worcester, Massachusetts verse competitive effects of the proposal. Accordingly, on the basis of the above and other facts of record, Order Approving Acquisition of Shares of a Bank the Board does not regard the effect of the proposal Holding Company on competition in the Mid-Hudson market to be so substantially adverse as to warrant denial of the State Street Boston Corporation ("Applicant"), Bosapplication. ton, Massachusetts, a bank holding company within The financial and managerial resources and future the meaning of the Bank Holding Company Act, has prospects of Applicant, its subsidiaries, and Bank are applied for the Board's approval under sections 3 and considered satisfactory, particularly in view of the fact 4 of the Bank Holding Company Act (12 U.S.C. that consummation of the proposal would result in the §§ 1842 and 1843) to acquire 16.6 percent of the voting injection of new capital into Bank. Bank's access to shares of Worcester Bancorp, Inc. ("Worcester") Applicant's managerial and financial resources will Worcester, Massachusetts, an unaffiliated bank holdincrease Bank's lending capabilities and broaden the ing company. As a result of consummation of this range and quality of its services. Considerations relat- transaction, Applicant would indirectly acquire an ing to the convenience and needs of the community to interest in Worcester's banking subsidiaries.1 Also, be served thus are regarded as being sufficient to Applicant would indirectly acquire an interest in outweigh any adverse competitive effects resulting Worcester's nonbanking subsidiaries, Wornat Develfrom the proposal. Based on the foregoing and other opment Corporation and Wornat Insurance Agency, facts of record, the Board has determined that con- Inc., both of Worcester, Massachusetts. These corposummation of the transaction would be consistent with rations engage, respectively, in the business of mort- 3. The Bank of New York (Empire National Bank), 66 FEDERAL 1. Worcester's five banking subsidiaries are First National Bank of RESERVE BULLETIN 807 (1980). Amherst, Amherst; Worcester County National Bank, Worcester; 4. Id.; Fidelity Union Bancorporation, 66 FEDERAL RESERVE BUL- The Peoples National Bank of Marlborough, Marlborough; Franklin LETIN 576 (1980); United Bank Corporation of New York (Schenecta- County Trust Company, Greenfield; and First National Bank of Cape dy Trust Company), 66 FEDERAL RESERVE BULLETIN 61, 63 (1979). Cod, Orleans; all in Massachusetts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 863 gage banking activities for the purpose of conducting representing 12.9 percent of the total deposits of an orderly liquidation of assets, and selling credit- commercial banks in Massachusetts, and the subject related insurance. Such activities have been deter- combination would increase the concentration of mined by the Board to be closely related to banking. banking resources of the top five commercial banking 12 C.F.R. §§ 225.4(a)(1) and (9). organizations in Massachusetts. Notice of these applications, affording opportunity Applicant's and Worcester's subsidiary banks are for persons to submit comments and views, has been direct competitors in three Massachusetts banking given in accordance with sections 3 and 4 of the Bank markets. Applicant's three subsidiary banks operate in Holding Company Act. The time for filing comments the Boston, Cape Cod, and Fitchburg-Leominster and views has expired, and the Board has considered banking markets, while Worcester's five subsidiary the applications and all comments received in light of banks operate in the Boston, Cape Cod, Fitchburgthe factors set forth in secton 3(c) of the Bank Holding Leominster, Worcester, Athol, Greenfield, and Am- Company Act (12 U.S.C. § 1842(c)) and the consider- herst-Northampton banking markets. Thus, Applicant ations specified in section 4(c)(8) of the Bank Holding and Worcester are direct competitors in the Boston, Company Act. Cape Cod, and Fitchburg-Leominster banking mar- An acquisition of less than a controlling interest in a kets. In the Boston banking market, Applicant ranks bank is not a normal acquisition for a bank holding as the fourth largest of 72 commercial banking organicompany. Although the Bank Holding Company Act zations in the market, with $1.6 billion in market contemplates investments between 5 and 25 percent of deposits, representing 10.9 percent of total commera bank's voting shares, the Board believes such pro- cial bank deposits. Worcester ranks 43rd in the Boston posals must be carefully analyzed in light of all of the banking market with total market deposits of $24.0 factors enumerated in the Bank Holding Company million, and a 0.2 percent market share. In the Fitch- Act. More particularly, section 3 of the Bank Holding burg-Leominster market, Applicant ranks as the small- Company Act requires that in every case involving the est of five commercial banking organizations in the acquisition of more than 5 percent of the stock of a market, with deposits of $3.9 million and 3.1 percent bank or bank holding company, the Board must ana- market share; Worcester ranks second with deposits lyze the competitive, financial, managerial, future of $37.1 million and a 29.1 percent market share. In the prospects, and convenience and needs considerations; Cape Cod banking market, Applicant ranks sixth of section 4 of the Bank Holding Company Act similarly eight commercial banking organizations in the market, requires that in every case involving the acquisition of with deposits of $29.6 million and a 8.1 percent market more than 5 percent of the shares of a nonbank share; Worcester ranks fourth with deposits of $45.4 company, the Board must analyze all of the aspects of million and a 12.4 percent market share. Thus, a the applications in order to determine whether the combination of Applicant and Worcester would, on its acquisition can reasonably be expected to produce face, appear to eliminate some existing competition in benefits to the public that outweigh possible adverse these three banking markets. effects. The Board has considered all such factors with Based upon the above and other relevant informaregard to the applications, even though Applicant's tion of record, the Board believes that if Applicant and proposal involves a minority interest in Worcester's Worcester were considered as a combined organizavoting shares and those shares will be placed in trust. tion, statewide concentration of banking resources Applicant, the fourth largest commercial banking would be increased, and the combination of Applicant organization in Massachusetts, controls three subsid- and Worcester would apparently eliminate some existiary banks with 36 offices having aggregate deposits of ing competition in three relevant banking markets. $1.8 billion, representing 9.4 percent of the total There are, however, several unique factors associated deposits of commercial banks in Massachusetts.2 with this proposal that mitigate any competitive conse- Worcester, the seventh largest commercial banking quences. Such factors include: a plan requiring the organization in Massachusetts, controls five subsid- immediate transfer of the shares of Worcester aciary banks with 52 offices having aggregate deposits of quired by Applicant to a trust administered by an $710 million, representing 3.5 percent of the total independent corporate trustee; a trust designed to deposits of commercial banks in Massachusetts. Ap- ensure that Applicant does not exercise a controlling plicant and Worcester, if considered as a combined influence over Worcester; the fact that Applicant's banking organization, would rank as the third largest option to purchase the subject 16.6 percent interest in in the state with aggregate deposits of $2.6 billion, Worcester was obtained in an effort to acquire control of Worcester, such effort being terminated at this time in light of Worcester's decision to accept the bid of another large Massachusetts bank holding company 2. All banking data are as of June 30, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
864 Federal Reserve Bulletin • November 1981 (Shawmut Corporation ("Shawmut"), Boston, Massa- associated therewith, is in the public interest and that chusetts); and the fact that this application involves an the application should be approved. acquisition of shares to be held in a trust for a limited Applicant's proposal is also subject to the requiretime certain. The Board finds that because of these ments of section 4(c)(8) of the Bank Holding Company unique facts and circumstances, the competitive im- Act (12 U.S.C. § 1843(c)(8)) and section 225.4 of the pact of the acquisition is minimized, and therefore the Board's Regulation Y (12 C.F.R. § 225.4) because anticompetitive effects would not be so serious as to Applicant would, upon consummation of the subject warrant denial of the subject application. Moreover, proposal, acquire an indirect interest in Worcester's the Board recognizes that this factual pattern is unlike- nonbank subsidiaries. The activities of these nonbank ly to occur in the future and, therefore, this decision is companies were determined to be permissible for bank not intended to reflect a Board predisposition to favor holding companies at the time Worcester received the structuring of proposals along these lines in the Board approval for their acquisition and they have not future.3 changed their activities since that time. Furthermore, With respect to potential competition, the four there is no evidence in the record indicating that banking markets of Worcester where Applicant does consummation of this proposal, under the unique set not operate, (i.e., Worcester, Athol, Greenfield, and of circumstances associated therewith, would result in Amherst-Northampton), do not appear attractive for any undue concentration of resources, unfair competide novo entry and, moreover, Applicant's banks are tion, conflicts of interests, unsound banking practices restricted by law from branching into such areas. or other adverse effects on the public interest. Based Applicant's proposal does raise some concerns regard- upon the foregoing and other considerations reflected ing the elimination of probable future competition in in the record, the Board has determined that the the Worcester banking market because Worcester is balance of the public interest factors that must be the largest banking organization in that market, and considered under section 4(c)(8) supports approval of because Applicant is a sizeable organization in the Applicant's proposal, and the application to indirectly state. The effects of this acquisition are mitigated by acquire an interest in Worcester's nonbank subsidiarthe fact that this investment represents less than a ies in this particular situation should be approved. controlling interest in Worcester, Applicant's owner- In approving these applications the Board finds, in ship will be of limited duration, and there are a the context of the unique facts and circumstances substantial number of thrift institutions competing to associated therewith, and under the standards set forth some extent with commercial banks in the market. in both sections 3 and 4 of the Bank Holding Company Thus, consummation of the transaction would not Act, that the proposal is unlikely to have an adverse result in any adverse effects upon probable future effect on the public interest at the present time and that competition in any relevant market. the application should be approved. However, Appli- The financial and managerial resources and future cant's banking and nonbanking activities remain subprospects of Applicant, Worcester, and their subsid- ject to Board review, and the Board retains the authoriaries are considered generally satisfactory and consis- ity to require Applicant to modify or terminate any tent with approval in the context of the particular facts such activities or holdings if the Board at any time pertaining to this application.4 In addition, the Board determines that its activities or continued holding of concludes that considerations relating to the conve- shares is likely to result in adverse effects on the public nience and needs of the communities to be served are interest. consistent with approval in the subject case. Based On the basis of the record, the applications are upon the foregoing and other considerations reflected approved for the reasons summarized above. The in the record, the Board's judgment is that under the transaction shall not be consummated before thirty standards set forth in section 3 of the Bank Holding days after the effective date of this Order, or later than Company Act, the proposed acquisition, considered in three months after the effective date of this Order, the context of all the unique facts and circumstances unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Boston acting pursuant to delegated authority. 3. In the event that circumstances change so Applicant would The determination as to Worcester's nonbanking acquire control of Worcester, Applicant would be required to submit an application for such acquisition, and the Board would reexamine subsidiaries is subject to the conditions set forth in the competitive considerations as well as all other relevant factors in § 225.4(c) of Regulation Y, and to the Board's authorview of the new set of facts and circumstances, absent the mitigating ity to require such modification or termination of the factors enumerated above. 4. In fact, consummation of this particular proposal may result in activities of a holding company or any of its subsidiarfinancial benefits as Applicant stands to gain a significant profit from ies as the Board finds necessary to assure compliance the sale of its Worcester shares, and has committed to use all such profits to increase the equity capital of its subsidiary banks. with the provisions and purposes of the Bank Holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 865 Company Act and the Board's regulations and orders 1970" may continue to engage, either directly or issued thereunder or to prevent evasion thereof. through a subsidiary, in nonbanking activities that By order of the Board of Governors, effective such a company was lawfully engaged in on June 30, October 13, 1981. 1968 (or on a date subsequent to June 30, 1968, in the case of activities carried on as a result of the acquisi- Voting for this action: Vice Chairman Schultz* and Gover- tion by such company or subsidiary, pursuant to a nors Partee, Teeters, Rice, and Gramley. Absent and not binding written contract entered into on or before June 30, voting: Chairman Volcker and Governor Wallich. *Vice 1968, of another company engaged in such activities at Chairman Schultz abstained from that portion of this action dealing with the indirect acquisition by Applicant of Wornat the time of the acquisition), and has been continuously Insurance Agency, Inc. engaged in since June 30, 1968 (or such subsequent date). (Signed) JAMES MCAFEE, Section 4(a)(2) of the act provides, inter alia, that the [SEAL] Assistant Secretary of the Board. Board may terminate such grandfather privileges if, having due regard to the purposes of the act, the Board determines that such action is necessary to prevent an Orders Under Section 4 of Bank Holding undue concentration of resources, decreased or unfair Company Act competition, conflicts of interest, or unsound banking practices. With respect to a company that controls a Educators Investment Company of Kansas, bank with assets in excess of $60 million on or after Emporia, Kansas December 31, 1970, the Board is required to make such a determination within two years. J.R. Montgomery Bancorporation, On the evidence before it, the Board makes the Lawton, Oklahoma following findings: Each of the companies named below became a bank holding company as a result of James B. Chambers Memorial, the 1970 amendments to the act by virtue of its Wheeling, West Virginia ownership of its subsidiary bank, and is regarded as "a company covered in 1970" as that term is defined in Investment Corporation of America, Inc., section 2(b) of the act. From the record, it has been River Forest, Illinois determined that each of the companies has been engaged continuously in the nonbanking activities Bostates Investment Co., indicated since prior to June 30, 1968, and that each of Tulsa, Oklahoma these activities appears to be eligible for indefinite grandfather privileges. Charter Bancorporation, Inc., Northfield, Illinois Company Subsidiary Bank and Grandfathered Total Banking Assets Activities Commerce Group Kearney, Inc., Lincoln, Nebraska Educators Invest- Citizens National Bank Development of oil ment Company and Trust Company, gas interests held of Kansas, Inc. Emporia, Kansas— on June 30, 1968 Fremont Bancshares, Inc., Emporia, Kan- $73 million as of Sepsas tember 30, 1979 Fremont First National Co., Lincoln, Nebraska J. R. Montgomery City National Bank & Operating and Bancorporation, Trust Co., Lawton, managing motion Lawton, Oklaho- Oklahoma—$48.1 picture theatres Merchants Corporation, ma million as of Septem- held on June 30, ber 30, 1980 1968 and sub- Bangor, Maine lease of property to affiliated bank Determination Regarding "Grandfather Privileges" James B. Cham- The First National Acting as charitabers Memorial, Bank & Trust Com- ble trust and of Certain Bank Holding Companies Wheeling, West pany of Wheeling, making loans to Virginia Wheeling, West Vir- corporations and ginia—$82 million as individuals Section 4 of the Bank Holding Company Act of December 31, 1979 (12 U.S.C. § 1843) provides certain privileges ("grandfather privileges") with respect to nonbanking activi- Investment Corpo- River Forest State Commercial ration of Ameri- Bank and Trust finance ties of a company that, by virtue of the 1970 amend- ca, Inc., River Company, River ments to the act, became subject to the act. Pursuant Forest, Illinois Forest, Illinois— $128.1 as of Decemto section 4(a)(2) of the act, a "company covered in ber 31, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
866 Federal Reserve Bulletin • November 1981 ation by the Board of the activities of that bank holding Company Subsidiary Bank and Grandfathered company under the provisions of section 4(a)(2) of the Total Banking Assets Activities act; that is, whenever the alteration or change is such that the Board finds that a termination of the grandfa- Bostates Invest- Boulder Bank and None1 ment Co., Tulsa, Trust Co., Tulsa, ther privileges is necessary to prevent an undue con- Oklahoma Oklahoma—$74.2 centration of resources or any other adverse consemillion as of September 30, 1980 quences at which the act is directed. No merger, Charter Bancor- Bank of Wheaton, None1 consolidation, acquisition of assets other than in the poration, Inc., Wheaton, Illinois— ordinary course of business, or acquisition of any Northfield, Illi- $90 million as of September 30, 1980 interest in a going concern, to which these bank holding companies or any of their nonbank subsidiar- Commerce Group First National Bank & None1 Kearney, Inc., Trust Co. of Kear- ies is a party, may be consummated without prior Lincoln, Nebras- ney, Kearney, Neapproval of the Board. Further, the provision of any ka braska—$79.5 million as of September credit, property, or service by any of these bank 30, 1980 holding companies or subsidiary thereof shall not be Fremont Banc- First National Bank & None1 subject to any condition which, if imposed by a bank, shares, Inc. Trust Co. of Fre- Fremont First Na- mont, Fremont, Ne- would constitute an unlawful tie-in arrangement under tional Co., Lin- braska—$85.1 mil- section 106 of the Bank Holding Company Act coln, Nebraska lion as of September 30, 1980 Amendments of 1970. Merchants Corpo- Merchants National None1 This determination herein does not preclude a later ration, Bangor, Bank of Bangor, review by the Board of the nonbank activities of these Maine Bangor, Maine— $63.2 as of Septem- bank holding companies and a future determination by ber 30, 1980 the Board in favor of termination of grandfather benefits of these companies. This determination is subject to the Board's authority to require modification or On the basis of the foregoing and all the facts before termination of the activities of these bank holding the Board, it appears that the volume, scope and companies or any of their nonbanking subsidiaries as nature of the activities of the above-mentioned bank the Board finds necessary to assure compliance with holding companies described herein do not demonthe provisions and purposes of the act, and the strate an undue concentration of resources, decreased Board's regulations and orders issued thereunder, or or unfair competition, conflicts of interest, or unsound to prevent evasion thereof. banking practices. Thus, there appears to be no reason By order of the Board of Governors, effective to require these bank holding companies to terminate October 20, 1981. their grandfathered activities. The Board's judgment is that, at this time, termination of the grandfather privi- Voting for this action: Chairman Volcker and Governors leges of the above-mentioned companies is not neces- Wallich, Partee, Teeters, Rice, and Gramley. Absent and not sary in order to prevent an undue concentration of voting: Governor Schultz. resources, decreased or unfair competition, conflicts of interest, or unsound banking practices. This deter- (Signed) JAMES MCAFEE, mination does not authorize the entry into any new [SEAL] Assistant Secretary of the Board. activity or product extension that was not engaged in on June 30, 1968, and continuously thereafter, or any activity that is not subject to this determination. Orders Under Bank Merger Act Moreover, companies may not acquire new investments not held on June 30, 1968, except where such Isabella Bank and Trust, new investments would be necessary to preserve the value of the companies' grandfathered interest.2 Mount Pleasant, Michigan A significant alteration in the nature or extent of the Order Approving Merger of Banks activities engaged in by any of these companies, or a change in location thereof, will be cause for a reevalu- Isabella Bank and Trust, Mount Pleasant, Michigan ("Applicant"), has applied to the Board pursuant to the Bank Merger Act (12 U.S.C. § 1828(c)), for ap- 1. Was not engaged in any nonbanking activities pursuant to proval to merge with The Blanchard State Bank, section 4(a)(2) of the act as of June 30, 1968. Blanchard, Michigan ("Bank"), under the charter and 2. The Republic National Bank of Dallas, 59 FEDERAL RESERVE BULLETIN 768 (1973). title of Applicant. As an incident to the proposed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 867 merger, the existing offices of Bank would become Isabella-Clare banking market has also declined signifbranch offices of the resulting bank. icantly. While the Board continues to view commer- As required by the Bank Merger Act, notice of the cial banking as the relevant line of commerce in proposed transaction has been published and reports determining the competitive effects of a proposal, the on competitive factors have been requested from the Board notes that numerous savings and loan associa- Attorney General, the Comptroller of the Currency, tions and credit unions operate in the Isabella-Clare and the Federal Deposit Insurance Corporation. The banking market and that the activities of these institutime for filing comments has expired, and the Board tions further diminish the competitive effects of this has considered the application and all comments re- proposal. Accordingly, the Board finds that consumceived in light of the factors set forth in the act. mation of the proposal will have only slightly adverse Applicant is the 102nd largest banking organization effects on existing competition in the Isabella-Clare in Michigan with $69.7 million in deposits, represent- banking market. ing 0.17 percent of total deposits held by commercial Bank's office in Six Lakes, Michigan competes in banks in the state. Bank is the 328th largest bank in the the Montcalm County banking market, which is adjastate, with deposits of $12.3 million, representing 0.03 cent to the Isabella-Clare banking market. Applicant percent of total deposits held by commercial banks in currently maintains no offices in the Montcalm County the state.1 Consummation of the proposed merger banking market, and the Board concludes that conwould not significantly increase Applicant's share of summation would not result in the loss of any signifideposits in Michigan, and accordingly, would not have cant amount of existing or potential competition in that an appreciable effect on the concentration of banking market. In this regard, the Board notes that Bank is resources in the state. not a dominant organization within the Montcalm Applicant is the largest bank in the Isabella-Clare County banking market; of the market's eight banking banking market,2 with 27.0 percent of commercial organizations it ranks last, with less than three percent bank deposits in the market. Bank's main office is the of the commercial bank deposits in the market. seventh largest banking organization in the Isabella- The financial and managerial resources and future Clare banking market and holds $6.1 million in depos- prospects of Applicant and Bank are considered satisits, representing 2.6 percent of commercial bank de- factory. In connection with the proposed transaction, posits in the market. Bank's other office, located in Six Applicant intends to provide Bank with assistance in Lakes, Michigan, is the eighth largest banking organi- trust services, data processing, foreign currency transzation in the Montcalm County banking market3 and actions, and solicitation of credit card customers. holds approximately $5.2 million in deposits, repre- Considerations relating to the convenience and needs senting 2.9 percent of the commercial bank deposits in of the communities to be served thus are regarded that market. Upon consummation of the proposed sufficient to outweigh any slightly adverse competitive merger, Applicant would hold approximately 29.6 per- effects resulting from the proposal. Based on the cent of commercial bank deposits in the Isabella-Clare foregoing and other facts of record, the Board has banking market. determined that consummation of the transaction While the combined market shares of Applicant and would be consistent with the public interest and that Bank might normally raise some concern about the the application should be approved. elimination of existing competition, the Board notes On the basis of the record, the application is apthat several facts in the record in this case indicate that proved for the reasons summarized above. The transmarket shares alone do not accurately reflect the action shall not be consummated before the thirtieth effects of this application on existing competition. The calendar day following the effective date of this Order, Board notes that Applicant's share of market deposits or later than three months after the effective date of has declined over the past several years and Bank's this Order, unless such period is extended for good market share in the Isabella-Clare banking market has cause by the Board or by the Federal Reserve Bank of declined even more substantially over the same peri- Chicago, pursuant to delegated authority. od. Moreover, the aggregate share of deposits held by By order of the Board of Governors, effective the four and seven largest banking organizations in the October 7, 1981. Voting for this action: Chairman Volcker and Governors 1. All banking data cited in this paragraph are as of December 31, Schultz, Wallich, Partee, Rice, and Gramley. Voting against 1980. All other banking data are as of June 30, 1980. this action: Governor Teeters. 2. The Isabella-Clare banking market is approximated by Clare and Isabella Counties, Michigan. 3. The Montcalm County banking market is approximated by (Signed) WILLIAM W. WILES, Montcalm County, Michigan plus Spencer and Oakfield townships in Kent County, Michigan. [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
868 Federal Reserve Bulletin • November 1981 ORDERS APPROVING APPLICATIONS UNDER THE BANK HOLDING COMPANY ACT AND BANK MERGER ACT By the Board of Governors During October 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) Bank Securities, Inc., Mimbres Valley Bank, October 6, 1981 Albuquerque, New Mexico Deming, New Mexico Colonial Banc Corp, Eaton National Bank and Trust Co., October 22, 1981 Eaton, Ohio Eaton, Ohio First International Bancshares, Inc. First International Bank Galleria, N.A. October 9, 1981 Dallas, Texas Dallas, Texas Section 4 Nonbanking Effective Applicant company date (or activity) Commerce Group, Inc., to engage in reinsurance activities related October 1, 1981 Commerce Group Grand Island, Inc.; to extensions of credit by lending sub- Commerce Group Hastings, Inc.; sidiaries of the Applicants Commerce Group Kearney, Inc.; Commerce Group North Platte, Inc.; Commerce Group West Point, Inc. all of Lincoln, Nebraska 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 ABN Company, Inc., LaSalle National Corporation, Chicago October 8, 1981 Wilmington, Delaware Chicago, Illinois Allied Bancshares, Inc., Community Bank, Dallas October 16, 1981 Houston, Texas Houston, Texas Allied Bancshares, Inc., Pasadena National Bank, Dallas October 16, 1981 Houston, Texas Pasadena, Texas Allied Bancshares, Inc., Interstate Bank, Dallas October 16, 1981 Houston, Texas Houston, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 869 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Bancorp of Huntingdon, Inc., Bank of Huntingdon, St. Louis October 15, 1981 Huntingdon, Tennessee Huntingdon, Tennessee BancShares Corporation, Bank of St. Charles and Trust Atlanta October 14, 1981 Luling, Louisiana Company, Luling, Louisiana Brookhollow Bancshares, Inc., Brookhollow National Bank, Dallas October 7, 1981 Dallas, Texas Dallas, Texas CNB Bancorp, Inc., The Citizens National Bank of Chicago October 23, 1981 Decatur, Illinois Decatur, Decatur, Illinois CVB Financial Corp., Chino Valley Bank, San Francisco October 5, 1981 Chino, California Chino, California Cairo/Moberly Bancshares, Bank of Cairo and Moberly, St. Louis September 30, 1981 Inc., Moberly, Missouri Moberly, Missouri Capital Bankshares Corpora- Capital City Bank, Atlanta October 23, 1981 tion, Hapeville, Georgia Atlanta, Georgia Central Banking Company, The Central Bank, Atlanta October 13, 1981 Swainsboro, Georgia Swainsboro, Georgia Chaffee Bancorporation, Inc., Bank of Chaffee, St. Louis October 2, 1981 Chaffee, Missouri Chaffee, Missouri Citizens Financial Corporation, Citizens National Bank of Dallas October 19, 1981 Beaumont, Texas Beaumont, Beaumont, Texas Clinton Bancshares, Inc., Clinton State Bank, Minneapolis October 16, 1981 Clinton, Minnesota Clinton, Minnesota Commerce Group, Inc., Commerce Savings Columbus, Kansas City September 28, 1981 Lincoln, Nebraska Inc., Columbus, Nebraska Cumberland Bancorp, Inc., Bank of Cumberland, St. Louis October 1, 1981 Burkesville, Kentucky Burkesville, Kentucky Dakota County Bancshares, Dakota County State Bank, Minneapolis October 8, 1981 Inc., Mendota Heights, Minnesota Mendota Heights, Minnesota Emory Bancshares, Inc., The First National Bank of Emory, Dallas October 1, 1981 Emory, Texas Emory, Texas First Bancorp of N.H., Inc., Granite State National Bank, Boston October 13, 1981 Manchester, New Hampshire Somersworth, New Hampshire First City Financial Corpora- First National Bank of Lea Dallas October 2, 1981 tion, County, Hobbs, New Mexico Hobbs, New Mexico First City National Bank, Carsbad, New Mexico First Equity Bancshares, Inc., First Bank of Stewartsville, Kansas City October 16, 1981 Stewarts ville, Missouri Stewartsville, Missouri First Etowah Bancorp Inc., First Citizens Bank of Etowah, Atlanta October 22, 1981 Glencoe, Alabama Glencoe, Alabama First Northbrook Bancorp, Inc., First National Bank of North- Chicago October 16, 1981 Northbrook, Illinois brook, Northbrook, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
870 Federal Reserve Bulletin • November 1981 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First Ogallala Investment, Inc., The First National Bank in Kansas City October 16, 1981 Ogallala, Nebraska Ogallala, Ogallala, Nebraska First Prairie Corp., The First National Bank of Prairie Chicago September 29, 1981 Prairie City, Iowa City, Prairie City, Iowa First Russellville Bankstock, First National Bank of Russellville, St. Louis October 23, 1981 Inc., Russellville, Arkansas Russellville, Arkansas First Southwest Corporation, First Bank of Southwest Miss- Atlanta October 16, 1981 McComb, Mississippi issippi, McComb, Mississippi First Virginia Banks, Inc., The Covington National Bank, Richmond October 12, 1981 Falls Church, Virginia Covington, Virginia Flagler Bankshares, Inc., The First National Bank of Flagler, Kansas City October 16, 1981 Flagler, Colorado Flagler, Colorado GRP, Inc., First Bank & Trust Co., Atlanta October 16, 1981 Atlanta, Georgia Marietta, Georgia Galena Bancorp, Inc., Galena State Bank and Trust Com- Chicago September 29, 1981 Galena, Illinois pany, Galena, Illinois Gaylord Bancshares, Inc., First National Bank of Gaylord, Kansas City October 9, 1981 Gaylord, Kansas Gaylord, Kansas Grimes County Capital Corpora- Iola State Bank, Dallas October 6, 1981 tion, Iola, Texas Iola, Texas Hawkeye Bancorporation, Security State Bank, Chicago October 23, 1981 Des Moines, Iowa Mount Ayr, Iowa Hernando Banking Corporation, Hernando State Bank, Atlanta October 2, 1981 Brooksville, Florida Brooksville, Florida Holyrood Bancshares, Inc., The Bank of Holyrood, Kansas City October 16, 1981 Holy rood, Kansas Holyrood, Kansas Kellonto Bankshares Corpora- Elgin State Bank, Chicago October 23, 1981 tion, Elgin, Iowa Elgin, Iowa LaSalle National Corporation, LaSalle National Bank, Chicago October 8, 1981 Chicago, Illinois Chicago, Illinois Liberty Bancorporation, Inc., Liberty State Bank, Minneapolis October 9, 1981 Powers Lake, North Dakota Powers Lake, North Dakota McLean Bank Holding Com- Garrison State Bank, Minneapolis October 2, 1981 pany, Garrison, North Dakota Garrison, North Dakota Bank of Turtle Lake, Turtle Lake, North Dakota The Farmers Security Bank, Washburn, North Dakota Marshall Bancshares, Inc., The Citizens Bank, St. Louis October 13, 1981 Marshall, Arkansas Marshall, Arkansas Maynard Bancshares, Inc., Security State Bank of Maynard, Minneapolis October 6, 1981 Maynard, Minnesota Maynard, Minnesota Metcalf Bancshares, Inc., Metcalf State Bank, Kansas City September 29, 1981 Overland Park, Kansas Overland Park, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 871 Section 3—Continued a * • . t / \ Reserve EfiFective n Applicant Bank(s) Bank date Midwest National Corporation, Midwest National Bank, Chicago October 2, 1981 Indianapolis, Indiana Indianapolis, Indiana Montrose Savings Bancshares, Montrose Savings Bank, Kansas City October 16, 1981 Inc., Montrose, Missouri Montrose, Missouri New Mexico Banquest Corpora- San Juan National Bank, Kansas City October 9, 1981 tion, Farmington, New Mexico Santa Fe, New Mexico Overton Bancshares, Inc., Overton Park National Bank, Dallas October 9, 1981 Fort Worth, Texas Fort Worth, Texas Pine City Bancorporation, Inc., Pine City State Bank, Minneapolis October 16, 1981 Pine City, Minnesota Pine City, Minnesota Plaza Commerce Bancorp, Plaza Bank of Commerce, San Francisco October 11, 1981 San Jose, California San Jose, California Portis Bancorporation, Inc., First State Bank, Kansas City October 2, 1981 Portis, Kansas Portis, Kansas Prescott State Bank Holding Prescott State Bank, Kansas City October 2, 1981 Company, Inc., Prescott, Kansas Prescott, Kansas Preston Bancshares, Inc., Farmers Savings Bank, Chicago October 9, 1981 Preston, Iowa Preston, Iowa Ridgway Bancorp., Inc., Gallatin County State Bank, St. Louis October 16, 1981 Ridgway, Illinois Ridgway, Illinois S.T.D. Investments, Inc., Bank of Minden, Kansas City October 2, 1981 Mindenmines, Missouri Mindenmines, Missouri Scandia American Bancorpora- Scandia American Bank, Minneapolis October 9, 1981 tion, Inc., Stanley, North Dakota Stanley, North Dakota Schrage Ltd., Farmers State Bank, Chicago October 26, 1981 Plainfield, Iowa Plainfield, Iowa Security Bancorp, Security State Bank, Chicago October 16, 1981 Stanton, Iowa Stanton, Iowa Security Richland Bancorpora- Richland National Bank, Minneapolis October 16, 1981 tion, Sidney, Montana Miles City, Montana Service Bancshares, Limited, Service Bancorporation, Inc., Kansas October 16, 1981 Tonkawa, Oklahoma Tonkawa, Oklahoma The Service Bank of Tonkawa, Tonkawa, Oklahoma Southwest Bancorp, Inc., Stillwater National Bank and Trust Kansas City September 24, 1981 Stillwater, Oklahoma Company, Stillwater, Oklahoma Southwest Independent Ban- Grand Prairie State Bank, Dallas September 30, 1981 corp, Inc., Grand Prairie, Texas Grand Prairie, Texas Suburban Bancorporation, Inc., Suburban National Bank, Minneapolis October 26, 1981 Eden Prairie, Minnesota Eden Prairie, Minnesota Suburban Bankshares, Inc., Suburban Bank, Atlanta October 16, 1981 Lake Worth, Florida Lake Worth, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
872 Federal Reserve Bulletin • November 1981 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Town and Country Bancshares, Town and Country Bank, Dallas October 5, 1981 Inc., Stephenville, Texas Stephenville, Texas Tri City Bankshares Corpora- First National Bank, Chicago October 2, 1981 tion, Eagle River, Wisconsin Oak Creek, Wisconsin Warren Bancshares, Inc., Peoples State Bank of Warren, Minneapolis October 8, 1981 Warren, Minnesota Warren, Minnesota Washington Bancorp, Inc., Washington Bank & Trust Com- Atlanta October 6, 1981 Franklinton, Louisiana pany, Franklinton, Louisiana Wilshire Bancshares, Inc., Wilshire Bank, Kansas City October 5, 1981 Oklahoma City, Oklahoma Oklahoma City, Oklahoma Wyatt Bancorp, Inc., Farmers State Bank of Wyatt, Chicago October 7, 1981 LaPorte, Indiana Wyatt, Indiana Ysleta Bancshares, Inc., Bank of Ysleta, Dallas October 16, 1981 El Paso, Texas El Paso, Texas Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) The Dai-Ichi Kangyo Japan California Bank, C.F. Overseas, Inc., San Francisco October 22, 1981 Bank, Ltd., Los Angeles, San Francisco, Tokyo,Japan California California Syracuse Financial First National Bank of sale of general insur- Kansas City October 9, 1981 Company, Syracuse, ance in a community Syracuse, Kansas Syracuse, Kansas of less than 5,000 population The Tokai Bank, Continental Bank, Continental Loan, San Francisco October 22, 1981 Limited, Alhambra, California Alhambra, California Nagoya, Japart Continental Thrift, Alhambra, California Section 4 Nonbanking Effective Applicant company (or activity) Allied Bancshares, Inc., Interservice Life Insurance Company, October 16, 1981 Houston, Texas Pasadena, Texas Citicorp, Mercantile Mortgage Company, October 5, 1981 New York, New York St. Louis, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 873 ORDERS APPROVED UNDER BANK MERGER ACT By the Board of Governors „ . . . Effective Applicant Bank(s) date Mimbres Valley Bank, New Bank of Mimbres Valley, October 6, 1981 Deming, New Mexico Deming, New Mexico By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date First Virginia Bank-Alleghany, The Covington National Bank, Richmond October 12, 1981 Covington, Virginia Covington, Virginia PENDING CASES INVOLVING THE BOARD OF GOVERNORS* *This list of pending cases does not include suits Option Advisory Service, Inc. v. Board of Governors, against the Federal Reserve Banks in which the Board et al., filed February 1981, U.S.C.A. for the Second of Governors is not named a party. Circuit. 9 to 5 Organization for Women Office Workers v. American Bankers Association v. Federal Home Loan Board of Governors, filed December 1980, Bank Board, et al., filed August 1981, U.S.D.C. for U.S.D.C. for the District of Massachusetts. the District of Columbia. Securities Industry Association v. Board of Gover- The National Bank of Davis, et al. v. Charles E. Lord, nors, et al., filed October 1980, U.S.D.C for the et al., filed July 1981, U.S.C.A. for the Fourth District of Columbia. Circuit. Securities Industry Association v. Board of Gover- Bank Stationers Association, Inc., et al. v. Board of nors, et al., filed October 1980, U.S.C.A. for the Governors, filed July 1981, U.S.D.C. for the North- District of Columbia. ern District of Georgia. A. G. Becker, Inc. v. Board of Governors, et al., filed Public Interest Bounty Hunters v. Board of Gover- October 1980, U.S.D.C. for the District of Columnors, et al., filed June 1981. U.S.D.C. for the bia. Northern District of Georgia. A. G. Becker, Inc. v. Board of Governors, et al., filed Edwin F. Gordon v. John Heimann, et al., filed May October 1980, U.S.C.A. for the District of Colum- 1981, U.S.C.A. for the Fifth Circuit. bia. Louis J. Roussell v. Board of Governors, filed May Independent Insurance Agents of America and Inde- 1981, U.S.C.A. for the District of Columbia. pendent Insurance Agents of Missouri v. Board of Wilshire Oil Company of Texas v. Board of Gover- Governors, filed September 1980, U.S.C.A. for the nors, et al., filed April 1981, U.S.C.A. for the Third Eighth Circuit. Circuit. Nebraska Bankers Association, et al. v. Board of People of the State of Arkansas v. Board of Gover- Governors, et al., filed September 1980, U.S.D.C. nors, et al., filed March 1981, U.S.C.A. for the for the District of Nebraska. Western District of Arkansas. Republic of Texas Corporation v. Board of Governors, First Bank & Trust Company v. Board of Governors, filed September 1980, U.S.C.A. for the Fifth Cirfiled February 1981, U.S.D.C. for the Eastern Dis- cuit. trict of Kentucky. A. G. Becker, Inc. v. Board of Governors, et al., filed Ellis E. St. Rose & James H. Sibbet v. Board of August 1980, U.S.D.C. for the District of Columbia. Governors, filed February 1981, U.S.D.C. for the Otero Savings and Loan Association v. Board of District of Columbia. Governors, filed August 1980, U.S.D.C. for the District of Colorado. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
874 Federal Reserve Bulletin • November 1981 Edwin F. Gordon v. Board of Governors, et al., filed Donald W. Riegle, Jr. v. Federal Open Market Com- August 1980, U.S.C.A. for the Fifth Circuit. mittee, filed July 1979, U.S.D.C. for the District of U.S. League of Savings Associations v. Depository Columbia. Institutions Deregulation Committee, et al., filed Security Bancorp and Security National Bank v. June 1980, U.S.D.C. for the District of Columbia. Board of Governors, filed March 1978, U.S.C.A. for Berkovitz, et al. v. Government of Iran, et al., filed the Ninth Circuit. June 1980, U.S.D.C. for the Northern District of Roberts Farms, Inc. v. Comptroller of the Currency, California. et al., filed November 1975, U.S.D.C. for the South- Mercantile Texas Corporation v. Board of Governors, ern District of California. filed May 1980, U.S.C.A. for the Fifth Circuit. Darnell Hilliard v. G. William Miller, et al., filed Corbin, Trustee v. United States, filed May 1980, September 1976, U.S.C.A. for the District of Co- United States Court of Claims. lumbia. Louis J. Roussel v. Comptroller of the Currency and David Merrill, et al. v. Federal Open Market Commit- Federal Reserve Board, filed April 1980, U.S.D.C. tee, filed May 1975, U.S.D.C. for the District of for the District of Columbia. Columbia. County National Bancorporation and TGB Co. v. Board of Governors, filed September 1979, U.S.C.A. for the Eighth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A1 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 Branches and agencies of foreign banks large member banks A23 Commercial and industrial loans A24 Gross demand deposits of individuals, partnerships, and corporations POLICY INSTRUMENTS A7 Federal Reserve Bank interest rates FINANCIAL MARKETS A8 Depository institutions reserve requirements A9 Maximum interest rates payable on time and A25 Commercial paper and bankers dollar savings deposits at federally insured institutions acceptances outstanding A10 Federal Reserve open market transactions A26 Prime rate charged by banks on short-term business loans A26 Terms of lending at commercial banks FEDERAL RESERVE BANKS ALL Interest rates in money and capital markets A28 Stock market—Selected statistics All Condition and Federal Reserve note statements A29 Savings institutions—Selected assets and A12 Maturity distribution of loan and security liabilities holdings FEDERAL FINANCE MONETARY AND CREDIT AGGREGATES A30 Federal fiscal and financing operations A12 Bank debits and deposit turnover A31 U.S. budget receipts and outlay A13 Money stock measures and components A32 Federal debt subject to statutory limitation A14 Aggregate reserves of depository institutions A32 Gross public debt of U.S. Treasury—Types and and member bank deposits ownership A15 Loans and securities of all commercial banks A33 U.S. government marketable securities— Ownership, by maturity A34 U.S. government securities dealers— COMMERCIAL BANKS Transactions, positions, and financing A35 Federal and federally sponsored credit A16 Major nondeposit funds agencies—Debt outstanding A17 Assets and liabilities, last Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2 Federal Reserve Bulletin • November 1981 SECURITIES MARKETS AND International Statistics CORPORATE FINANCE A54 U.S. international transactions—Summary A36 New security issues—State and local A55 U.S. foreign trade governments and corporations A55 U.S. reserve assets A37 Open-end investment companies—Net sales and A56 Foreign branches of U.S. banks—Balance sheet asset position data A37 Corporate profits and their distribution A58 Selected U.S. liabilities to foreign official A38 Nonfinancial corporations—Assets and institutions liabilities A38 Total nonfarm business expenditures on new plant and equipment REPORTED BY BANKS IN THE UNITED STATES A39 Domestic finance companies—Assets and liabilities; business credit A58 Liabilities to and claims on foreigners A59 Liabilities to foreigners A61 Banks' own claims on foreigners REAL ESTATE A62 Banks' own and domestic customers' claims on foreigners A40 Mortgage markets A62 Banks' own claims on unaffiliated foreigners A41 Mortgage debt outstanding A63 Claims on foreign countries—Combined domestic offices and foreign branches CONSUMER INSTALLMENT CREDIT SECURITIES HOLDINGS AND TRANSACTIONS A42 Total outstanding and net change A43 Extension and liquidations A64 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A64 Foreign official assets held at Federal Reserve FLOW OF FUNDS Banks A65 Foreign transactions in securities A44 Funds raised in U.S. credit markets A45 Direct and indirect sources of funds to credit markets REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES Domestic Nonfinancial Statistics A66 Liabilities to unaffiliated foreigners A67 Claims on unaffiliated foreigners A46 Nonfinancial business activity—Selected measures A46 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A47 Labor force, employment, and unemployment A48 Industrial production—Indexes and gross value A68 Discount rates of foreign central banks A50 Housing and construction A68 Foreign short-term interest rates A51 Consumer and producer prices A68 Foreign exchange rates A52 Gross national product and income A53 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1980 1981 1981 Item Q4 Q1 Q2 Q3 May June July Aug. Sept. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions 1 Total " 16.7 2.7 3.3 6.6 8.5 -5.8 7.9 8.3 22.0 2 Required 15.5 4.0 4.3 5.9 7.1 -8.1 7.9 9.8 18.4 3 Nonborrowed 7.2 7.7 -3.3 10.6 -19.4 .0 19.8 16.9 21.7 4 Monetary base2 10.8 4.9 5.5 5.3 8.6 -.3 8.2 5.0 4.3 Concepts of money and liquid assets3 5 Ml-A 8.2 -20.8 -5.3 -3.7 --55..66 --99..99 --22..00 3.0 --77..66 6 Ml-B 10.8 4.9 8.7 0.2 -6.1 -7.5 3.6 7.3r -2.8 7 M2 8.1 8.3 10.6 7.1 3.7 4.1 7.4 11.6r 6.3 8 M3 11.3 12.4 10.6 10.2 8.7 10.6 8.7 13.4r 8.2 9 L. 11.4 12.9 8.4 n.a. 10.9 10.9 8.9 n.a. n.a Time and savings deposits Commercial banks 10 Total 15.4 17.0 10.0 17.3 19.2 17.2 16.8 20.8r 7.8 11 Savings4 1.5 -30.5 -11.9 -19.6 -16.0 -24.0 -11.5 -29.9 -21.7 12 Small-denomination time5 16.2 30.2 13.4 21.0 15.8 22.0 14.5 30.9r 20.1 13 Large-denomination time6 25.4 37.5 20.0 34.7 44.3 35.8 34.8 36.5r 10.4 14 Thrift institutions7 9.7 5.3 .4 -1.7 2.7 0.3 -5.3 -2.0r 1.5 15 Total loans and securities at commercial banks8 14.6 11.8 5.5 8.0 11.7 5.8r 5.6r 10.3 10.6 1980 1981 1981 Q4 Q1 Q2 Q3 June July Aug. Sept. Oct. Interest rates (levels, percent per annum) Short-term rates 16 Federal funds9 15.85 16.57 17.78 17.58 19.10 19.04 17.82 15.87 15.08 17 Discount window borrowing10 11.78 13.00 13.62 14.00 14.00 14.00 14.00 14.00 14.00 18 Treasury bills (3-month market Yield)1 13.61 14.39 14.91 15.05 14.73 14.95 15.51 14.70 13.54 19 Commercial paper (3-month)11'12 15.26 15.34 16.15 16.78 16.32 17.00 17.23 16.09 14.85 Long-term rates Bonds 20 U.S. government13 12.23 12.74 13.49 14.51 13.20 13.92 14.52 15.07 15.13 21 State and local government14 9.59 9.97 10.69 12.11 10.67 11.14 12.26 12.92 12.83 22 Aaa utility (new issue)15 13.49 14.45 15.41 16.82 14.76 16.30 17.21 16.94 23 Conventional mortgages16 14.62 15.10 16.15 17.50 16.40 16.70 17.50 18.30 n.a 1. Unless otherwise noted, rates of change are calculated from average amounts 4. Savings deposits exclude negotiable order of withdrawal (NOW) and automatic outstanding in preceding month or quarter. Growth rates are adjusted for discon- transfer service (ATS) accounts at commercial banks. tinuities in series that result from changes in Regulation D. 5. Small-denomination time deposits are those issued in amounts of less than 2. Includes reserve balances at Federal Reserve Banks in the current week plus $100,000. vault cash held two weeks earlier used to satisfy reserve requirements at all deposi- 6. Large-denomination time deposits are those issued in amounts of $100,000 or tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks, more. the vaults of depository institutions, and surplus vault cash at depository institu- 7. Savings and loan associations, mutual savings banks, and credit unions. tions. 8. Changes calculated from figures shown in table 1.23. 3. Ml-A: Averages of daily figures for (1) demand deposits at all commercial 9. Averages of daily effective rates (average of the rates on a given date weighted banks other than those due to domestic banks, the U.S. government, and foreign by the volume of transactions at those rates). banks and official institutions less cash items in the process of collection and Federal 10. Rate for the Federal Reserve Bank of New York. Reserve float; (2) currency outside the Treasury, Federal Reserve Banks, and the 11. Quoted on a bank-discount basis. vaults of commercial banks; and (3) traveler's checks of nonbank issuers. 12. Unweighted average of offering rates quoted by at least five dealers. Ml-B: Ml-A plus negotiable order of withdrawal and automated transfer service 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. accounts at banks and thrift institutions, credit union share draft accounts, and 14. Bond Buyer series for 20 issues of mixed quality. demand deposits at mutual savings banks. 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by M2: Ml-B plus savings and small-denomination time deposits at all depository Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve cominstitutions, overnight repurchase agreements at commercial banks, overnight pilations. Eurodollars held by U.S. residents other than banks at Caribbean branches of 16. Average rates on new commitments for conventional first mortgages on new member banks, and money market mutual fund shares. homes in primary markets, unweighted and rounded to nearest 5 basis points, from M3: M2 plus large-denomination time deposits at all depository institutions and Dept. of Housing and Urban Development. term RPs at commercial banks and savings and loan associations. NOTE. Reserve series have been revised to adjust for discontinuties associated L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents with the transitional phase-in of reserve requirements under the Monetary Control other than banks, bankers acceptances, commercial paper, Treasury bills and other Act of 1980. liquid Treasury securities, and U.S. savings bonds. M3 has been revised to incorporate additional data for term repurchase agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A4 Domestic NonfinancialS tatistics • November 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 Aug. Sept. Oct. Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 146,892 145,511 145,960 145,435 146,358 145,069 144,964 145,245 148,600 145,678 2 U.S. government securities1 124,522 123,685 123,497 123,252 124,255 123,356 121,883 123,327 125,444 123,457 3 Bought outright 123,950 123,685 123,273 123,252 124,255 123,356 121,883 123,327 124,450 123,457 4 Held under repurchase agreements 572 0 224 0 0 0 0 0 994 0 5 Federal agency securities 8,785 8,671 8,700 8,661 8,661 8,661 8,661 8,657 8,856 8,646 6 Bought outright 8,694 8,671 8,652 8,661 8,661 8,661 8,661 8,657 8,646 8,646 7 Held under repurchase agreements 91 0 48 0 0 0 0 0 210 0 8 Acceptances 102 0 58 0 0 0 0 0 257 0 9 Loans 1,408 1,473 1,149 1,349 1,446 1,448 1,146 1,110 1,255 1,187 10 Float 2,796 3,206 3,285 3,821 3,485 2,758 4,119 2,978 3,507 3,031 11 Other Federal Reserve assets 9,279 8,476 9,271 8,354 8,511 8,846 9,155 9,173 9,280 9,358 12 Gold stock 11,154 11,154 11,152 11,154 11,154 11,152 11,152 11,152 11,152 11,152 13 Special drawing rights certificate account... 3,068 3,126 3,318 3,068 3,068 3,318 3,318 3,318 3,318 3,318 14 Treasury currency outstanding 13,627 13,648 13,641 13,627 13,627 13,727 13,636 13,640 13,640 13,643 ABSORBING RESERVE FUNDS 15 Currency in circulation 138,472 138,525 138,476 139,371 138,232 137,497 137,929 139,164 138,812 138,117 16 Treasury cash holdings 450 453 455 453 455 454 456 458 457 450 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3,208 3,155 3,339 2,997 3,352 3,421 3,545 2,957 3,743 3.069 18 Foreign 280 284 353 270 240 291 378 329 350 318 19 Other 503 592 611 590 536 721 664 577 624 595 20 Required clearing balances 26 54 74 52 58 63 65 72 77 78 21 Other Federal Reserve liabilities and capital 4,778 4,849 5,171 4,815 4,824 4,974 5,214 5,184 5,300 5,030 22 Reserve accounts2 27,023 25,527 25,592 24,737 26,510 25,844 24,817 24,613 27,348 26,134 End-of-month figures Wednesday figures 1981 1981 Aug. Sept. Oct. Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 SUPPLYING RESERVE FUNDS 23 Reserve bank credit outstanding 145,731 147,585 143,917 146,816 147,994 147,585 139,089 148,045 153,425 145,522 24 U.S. government securities1 124,522 124,330 123,005 123,105 124,740 124,330 116,307 123,989 127,854 121,495 25 Bought outright 124,522 124,330 123,005 123,105 124,740 124,330 116,307 123,989 124,747 121,495 26 Held under repurchase agreements 0 0 0 0 0 0 0 0 3,107 0 27 Federal agency securities 8,694 8,661 8,646 8,661 8,661 8,661 8,661 8,646 9,173 8,646 28 Bought outright 8,694 8,661 8,646 8,661 8,661 8,661 8,661 8,646 8,646 8,646 29 Held under repurchase agreements 0 0 0 0 0 0 0 0 527 0 30 Acceptances 0 0 0 0 0 0 0 0 801 0 31 Loans 1,254 2,486 924 1,616 2,509 2,486 1,560 2,593 3,315 1,885 32 Float 2,229 2,811 1,690 4,862 3,260 2,811 3,333 3,459 2,786 4,084 33 Other Federal Reserve assets 9,032 9,297 9,652 8,572 8,824 9,297 9,228 9,358 9,496 9,412 34 Gold stock 11,154 11,152 11,152 11,154 11,154 11,152 11,152 11,152 11,152 11,152 35 Special drawing rights certificate account... 3,068 3,318 3,318 3,068 3,068 3,318 3,318 3,318 3,318 3,318 36 Treasury currency outstanding 14,234 14,315 13,651 13,627 13,627 14,315 13,640 13,640 13,640 13,651 ABSORBING RESERVE FUNDS 37 Currency in circulation 138,534 138,508 138,137 139,241 138,073 138,508 138,807 139,583 138,796 138,552 38 Treasury cash holdings 450 457 447 450 456 457 459 459 456 449 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 2,595 2,520 3,550 3,925 3,649 3,520 3,665 3,024 3,723 2,842 40 Foreign 256 420 547 211 215 420 214 293 290 264 41 Other 502 843 573 696 443 843 630 565 628 568 42 Required clearing balances 45 63 82 52 58 63 65 72 77 78 43 Other Federal Reserve liabilities and capital 4,805 5,379 5,112 4,640 4,746 5,379 4,766 5,015 5,174 4,831 44 Reserve accounts2 27,000 27,180 23,590 25,450 28,203 27,180 18,593 27,144 32,391 26,060 1. Includes securities loaned—fully guaranteed by U.S. government securities 2. Excludes required clearing balances. pledged with Federal Reserve Banks—and excludes (if any) securities sold and scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. 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 1980 1981 Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. 1 Reserve balances with Reserve Banks' 26,664 26,591 26.722 27,173 26,822 26,819 27,172 27,023 25,527 25,592 2 Total vault cash (estimated) 18,149 17,824 17,327 17,189 17,773 18,198 18,273 18,438 18,927 18,810 3 Vault cash at institutions with required reserve balances2 12,602 12,187 11,687 11.687 12,124 12,396 12,504 12,585 12,966 12,881 4 Vault cash equal to required reserves at other institutions 704 763 1.237 1,204 1,310 1,350 1,319 1,364 2,041 2,054 5 Surplus vault cash at other institutions3 .. 4,843 4,874 4,403 4,298 4,339 4,452 4,450 4,489 3.920 3,875 6 Reserve balances + total vault cash4 44,940 44,524 44,155 44,451 44,683 45,100 45,507 45.513 44,499 44,430 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5 40,097 39,650 39,752 40,153 40,344 40,648 41.057 41,024 40,579 40,555 8 Required reserves (estimated) 40,067 39,448 39,372 40,071 40,213 40,098 40,675 40,753 40,179 40,438 9 Excess reserve balances at Reserve Banks4-6 . 30 202 380 82 131 550 382 271 400 117 10 Total borrowings at Reserve Banks 1,617 1,278 1,004 1,343 2,154 2,038 1,751 1,408 1,473 1,149 11 Seasonal borrowings at Reserve Banks 116 148 197 161 259 291 248 220 222 152 12 Extended credit at Reserve Banks n.a. n.a. n.a. n.a. n.a. n.a. n.a. 79 301 442 Weekly averages of daily figures for week ending: Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 13 Reserve balances with Reserve Banks' 27,780 26,872 24,497 24,737 26.510 25,844 24,817 24,613 27,348 26,134 14 Total vault cash (estimated) 17,995 18,689 19,160 19,390 17,608 19,618 19,391 19,499 17,619 18,558 15 Vault cash at institutions with required reserve balances2 12,164 12,705 13,146 13,135 12,205 13,453 13,323 13.154 12,115 12,767 16 Vault cash equal to required reserves at other institutions 1,448 1,459 2,068 2,156 1,909 2,196 2,144 2,235 1,890 1,959 17 Surplus vault cash at other institutions3 .. 4.383 4,525 3,946 4,099 3,494 3,969 3,924 4,110 3,614 3,832 18 Reserve balances + total vault cash4 45,826 45,609 43,705 44.175 44,163 45,502 44,246 44,137 44,992 44,716 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41.443 41,084 39,759 40,076 40,669 41,533 40,322 40,027 41,378 40,884 20 Required reserves (estimated) 41,281 40,831 39,307 39,823 40,391 41,009 40,105 39,742 41,245 40,625 21 Excess reserve balances at Reserve Banks4-6 . 162 253 452 253 278 524 217 285 133 259 22 Total borrowings at Reserve Banks 1,726 1,448 1.585 1,349 1,446 1,448 1,146 1,110 1,255 1,187 23 Seasonal borrowings at Reserve Banks 246 246 217 205 230 233 115 158 155 147 24 Extended credit at Reserve Banks 155 190 236 287 325 387 413 423 444 464 1. As of Aug. 13, 1981 excludes required clearing balances of all depository existing member bank, or when a nonmember bank joins the Federal Reserve institutions. System. For weeks for which figures are preliminary, figures by class of bank do 2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by not add to total because adjusted data by class are not available. member banks. 5. Reserve balances with Federal Reserve Banks which exclude required clearing 3. Total vault cash at institutions without required reserve balances less vault balances plus vault cash at institutions with required reserve balances plus vault cash equal to their required reserves. cash equal to required reserves at other institutions. 4. Adjusted to include waivers of penalties for reserve deficiencies in accordance 6. Reserve balances with Federal Reserve Banks which exclude required clearing with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a balances plus vault cash used to satisfy reserve requirements less required reserves. graduated basis over a 24-month period when a nonmember bank merged into an (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 NonfinancialS tatistics • November 1981 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1981, week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 One day and continuing contract 1 Commercial banks in United States 47,564 53.070 54,730 47.157 45,275 51.268 50,532 49,736 4455,,118899 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 15,414 15.234 16,375 16.742 16,895' 16,513 16,376 18,215 17,671 3 Nonbank securities dealers 2,879 2.325 3,050 3,441 3.125 2,840 3,317 3,318 3,994 4 All other 21.194 20.431 20,564 19,693 19,106r 19,003 18,434 19,021 19,409 All other maturities 5 Commercial banks in United States 3,281 3,106 3,019 3,237 3,396' 3,604 4,190 3,347 3,185 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 6,860 7,283 7.107 7,708 7,191 7,108 7.382 7,559 7,451 7 Nonbank securities dealers 4,485 4.470 3,987 4,216 4.676 4,808 4,485 4,544 4,506 8 All other 9,351 9.526 9.854 9,898 lO,^' 8,937 10,126 9.181 9,758 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 16,550 17.103 19,335 16,151 17,438r 16,745 18,469 17,741 16,077 10 Nonbank securities dealers 2.623 2.883 3,001 2.740 2,939r 3,365 3,205 3.204 2,688 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 A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Other extended credit2 SSShhhooorrrttt---ttteeerrrmmm aaadddjjjuuussstttmmmeeennnttt cccrrreeedddiiittt aaannnddd ssseeeaaasssooonnnaaalll cccrrreeedddiiittt''' First 60 days Next 90 days FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee of borrowing of borrowing After 150 days BBBBaaaannnnkkkk EEEffffffeeeccctttiiivvveee dddaaattteee RRaattee oonn PPrreevviioouuss RRaattee oonn PPrreevviioouuss RRaattee oonn PPrreevviioouuss fffooorrr cccuuurrrrrreeennnttt rrraaattteeesss Rate on Effective Previous 1100//3311//8811 rraattee 1100//3311//8811 rraattee 1100//3311//8811 rraattee 10/31/81 date rate Boston 14 5/5/81 13 14 15 15 15 16 15 9/4/81 New York 14 5/5/81 13 14 15 15 15 16 15 8/20/81 Philadelphia 14 5/5/81 13 14 15 15 15 16 15 8/20/81 Cleveland 14 5/5/81 13 14 15 15 15 16 15 8/25/81 Richmond 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Atlanta 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Ohio 14 5/8/81 13 14 15 15 15 16 15 8/27/81 St. Louis 14 5/5/81 13 14 15 15 15 16 15 8/25/81 Minneapolis 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Kansas City 14 5/5/81 13 14 15 15 15 16 15 8/27/81 Dallas 14 5/5/81 13 14 15 15 15 16 15 8/20/81 San Francisco.... 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Range of rates in recent years3 Range (or F.R. Range (or F.R. Range (or Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1972. 4i/5 4'/> 1976— Jan. 19. 51/551-6/ ! 51/5 1979— Sept. 19. 10V5-11 11 1973— Jan. 15 5 5 23. 51/5 21. 11 11 Feb. 26 5-5'/5 5'/2 Nov. 22. 5W-51/5 51/4 Oct. 8. 11-12 12 Mar. 2 SV2 5V5 26. 51/4 51/4 10. 12 12 Apr. 23 51/5-53/4 51/5 May 4 53/4 53/4 1977— Aug. 30. 5I/4-5-V4 5513//44 1980— Feb. 15. 12-13 13 11 5Vi-6 6 31. 51/4-53/4 5% 19. 13 13 18 6 6 Sept. 2. 53/4 May 29. 12-13 13 June 11 6-61/5 6>/2 Oct. 26. 6 6 30. 12 12 1 5 6'/5 6V5 June 13. 11-12 11 July 2 7 7 1978— Jan. 9. 6-61/5 61/5 16. 11 11 Aug. 14 7-71/5 7'/5 20. 61/5 61/5 July 28. 10-11 10 2 3 7'/5 71/5 May 11. 6'/5-7 7 29. 10 10 12. 7 771 /4 Sept. 26. 11 11 1974— Apr. 25 71/5-8 8 July 3. 7-71/4 Nov. 17. 12 12 30 8 8 Julv 10. 7 7 1 3 / / 4 4 7713//4 4 Dec. 5. 12-13 13 Dec. 9 7^4-8 73/4 Aug. 21. 8. 13 13 1 6 73/4 73/4 Sept. 22. 8 8 1975— Jan. 6 71/4-73/4 73/4 Oct. 2 1 0 6 . . 8 8 - ! 8 /5 1 /5 881'//52 1981— M M a a y y 8 5 . . 13 1 - 4 1 4 1 1 4 4 10 71/4-73/4 71/4 Nov. 1. 8i/5-9'/5 91/5 2 4 71/4 7'/4 3. 9V5 91/5 Feb. 5 6^4-71/4 63/4 7 63/4 63/4 1979— July 20. 10 10 Mar. 10 6'/4-63/4 61/4 Aug. 17. 10-101/5 101/5 14 6!/4 61/4 20. 101/5 101/5 May 16 6-61/4 6 In effect Oct. 31, 1981 1. Effective Oct. 12, 1981, a 2 percent surcharge was applied to short-term In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adadjustment credit borrowings by institutions with deposits of $500 million or more justment credit borrowings by institutions with deposits of $500 million or more who borrowed in successive weeks or in more than 4 weeks in a moving 13-week that had borrowed in successive weeks or in more than 4 weeks in a calendar period which includes the current week and the 12 preceding weeks. The rate for quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, seasonal credit is unaffected by the surcharge. 1980. On Nov. 17, 1980, a 2 percent surcharge was adopted; the surcharge was 2. Applicable to advances when exceptional circumstances or practices involve subsequently raised to 3 percent on Dec. 5, 1980 and to 4 percent on May 5, 1981. only a particular depository institution and to advances when an institution is under The surcharge was reduced to 3 percent effective Sept. 22, 1981 and to 2 percent sustained liquidity pressures. See section 201.3(b)(2) of Regulation A. effective Oct. 12. As of Oct. 1, the formula for applying the surcharge was changed 3. Rates for short-term adjustment credit. For description and earlier data see from a calendar quarter to a moving 13-week period. the following publications of the Board of Governors: Banking and Monetary Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 1972- 1976, 1973-1977, and 1974-1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A8 Domestic Financial Statistics • November 1981 1.15 DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS' Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall Monetary Control Act TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act5 iinn mmiilllliioonnss ooff ddoollllaarrss ddeeppoossiitt iinntteerrvvaall Percent Effective date Percent Effective date Net demand2 Net transaction accounts6 0-2 7 12/30/76 3 11/13/80 2-10 9'/5 12/30/76 1122 1111//1133//8800 10-100 IP/4 12/30/76 100-400 12% 12/30/76 Nonpersonal time deposits7 Over 400 16>/4 12/30/76 By original maturity Less than 4 years 3 11/13/80 TTiimmee aanndd ssaavviinnggss22 33 4 years or more 0 11/13/80 SSaavviinnggss 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 0-5, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2>/2 1/8/76 4 years or more 1 10/30/75 Over 5, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2'/S 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 nonto that part of the deposits of each bank. Demand deposits subject to reserve member institutions, and certain other obligations. In general, the base for the requirements were gross demand deposits minus cash items in process of collection marginal reserve requirement was originally the greater of (a) $100 million or (b) and demand balances due from domestic banks. the average amount of the managed liabilities held by a member bank. Edge (b) The Federal Reserve Act as amended through 1978 specified different ranges corporation, or family of U.S. branches and agencies of a foreign bank for the two of requirements for reserve city banks and for other banks. Reserve cities were statement weeks ending Sept. 26,1979. For the computation period beginning Mar. designated under a criterion adopted effective Nov. 9. 1972. by which a bank having 20. 1980. the base was lowered by (a) 7 percent or (b) the decrease in an institution's net demand deposits of more than $400 million was considered to have the character U.S. office gross loans to foreigners and gross balances due from foreign offices of business of a reserve city bank. The presence of the head office of such a bank of other institutions between the base period (Sept. 13-26. 1979) and the week constituted designation of that place as a reserve city. Cities in which there were ending Mar. 12. 1980. whichever was greater. For the computation period beginning Federal Reserve Banks or branches were also reserve cities. Aiiy banks having net May 29, 1980, the base was increased by 7'/5 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 implebalances 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 requireunrelated banks abroad was also reduced to zero from 4 percent. ments. For existing agencies and branches of foreign banks, the phase-in ends Aug. (d) Effective with the reserve computation period beginning Nov. 16. 1978. 12. 1982. All new institutions will have a two-year phase-in beginning with the date domestic deposits of Edge corporations were subject to the same reserve require- that they open for business. ments as deposits of member banks. 6. Transaction accounts include all deposits on which the account holder is 3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such permitted to make withdrawals by negotiable or transferable instruments, payment as Christmas and vacation club accounts were subject to the same requirements as orders of withdrawal, and telephone and preauthorized transfers (in excess of three savings deposits. per month) for the purpose of making payments to third persons or others. (b) The average reserve requirement on savings and other time deposits before 7. In general, nonpersonal time deposits are time deposits, including savings implementation of the Monetary Control Act had to be at least 3 percent, the deposits, that are not transaction accounts and in which the beneficial interest is minimum specified by law. held by a depositor that is not a natural person. Also included are certain trans- 4. (a) Effective Nov. 2, 1978. a supplementary reserve requirement of 2 percent ferable time deposits held by natural persons, and certain obligations issued to was imposed on large time deposits of $100,000 or more, obligations of affiliates, depository institution offices located outside the United States. For details, see and ineligible acceptances. This supplementary requirement was eliminated with section 2()4.2 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 Oct. 31, 1981 Previous maximum In effect Oct. 31, 1981 Previous maximum Effective Effective Effective date date date 1 Savings 5V4 7/1/79 7/1/73 5 A 7/1/79 5V4 2 Negotiable order of withdrawal accounts 2 5V4 12/31/80 1/1/74 51/4 12/31/80 5 Time accounts 3 Fixed ceiling rates by maturity 4 3 14-89 days' 5]/4 8/1/79 5 7/1/73 (6) 5 6 7 4 8 9 2 2 4 1 0 V t t t o o o i d t a 2 6 2 o y l A s y y 4 e e t y y o a a e e r r s s a a 1 r r 8 s ' v s e 7 7 a r 6 5 7> < 3/ / A 4 4 1 7 7 1 1 / / / / 1 1 1 1 / / / / 7 7 8 7 3 3 0 3 55 5 5 > 3 3 ! / / /A 4 4 2 1 1 1 7 / / / 2 2 2 /1 1 1 1 / / / / 7 7 7 7 3 0 0 0 6 6 67 ' 3 A /'4 A 11 1 ( 0 / / 1 ' 1 ) ) / / 8 7 0 3 6 6 5 5 3 3 / / 4 4 1 1 1 / / / 2 2 2 0 1 1 1 ) / / / 7 7 7 0 0 0 9 6 to 8 years 8 7'A 12/23/74 11/1/73 73/4 12/23/74 7 Vi 11/1/73 10 8 years or more 8 73/4 6/1/78 6/1/78 11 Issued to governmental units (all maturities') 10 6/1/78 " 12/23/74" 6/1/78 VA 12/23/74 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more) 10,11 6/1/78 7/6/77 6/1/78 73/4 7/6/77 Special variable ceiling rates by maturity 13 6-month money market time deposits 12 fl3l 14 12-month all savers certificates 15 2Vl years or more 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan thrift institutions were as follows: Oct. 6. 14.468; Oct. 10, 13.750; Oct. 20, 14.045; associations. Oct. 27, 13.869. Effective for all six-month money market certificates issued be- 2. For authorized states only, federally insured commercial banks, savings and ginning June 5, 1980, the interest rate ceilings will be determined by the discount loan associations, cooperative banks, and mutual savings banks in Massachusetts rate (auction average) of most recently issued six-month U.S. Treasury bills as and New Hampshire were first permitted to offer negotiable order of withdrawal follows: (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex- Bill rate Commercial bank ceiling Thrift ceiling tended to similar institutions throughout New England on Feb. 27, 1976, and in 8.75 and above bill rate + lA percent bill rate + 'A percent New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Author- 8.50 to 8.75 bill rate + '/4 percent 9.00 ization to issue NOW accounts was extended to similar institutions nationwide 7.50 to 8.50 bill rate + lA percent bill rate + XA percent effective Dec. 31, 1980. 7.25 to 7.50 7.75 bill rate + A percent 3. For exceptions with respect to certain foreign time deposits see the FEDERAL Below 7.25 7.75 7.75 RESERVE BULLETIN for October 1962 (p. 1279), August 1965 (p. 1084), and Feb- The prohibition against compounding interest in these certificates continues. ruary 1968 (p. 167). 14. Effective Oct. 1, 1981, depository institutions are authorized to issue all 4. Effective Nov. 10, 1980. the minimum notice period for public unit accounts savers certificates (ASCs) with a 1-year maturity and an annual investment yield at savings and loan associations was decreased to 14 days and the minimum maturity equal to 70 percent of the average investment yield for 52-week U.S. Treasury bills period for time deposits at savings and loan associations in excess of $100,000 was as determined by the auction of 52-week U.S. Treasury bills held immediately decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice before the calendar week in which the certificate is issued. A maximum lifetime Ceriod for time deposits was decreased from 30 days to 14 days for mutual savings exclusion of $1,000 ($2,000 on a joint return) from gross income is generally auanks. thorized for interest income from ASCs. The annual investment yields for ASCs 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time issued in October (in percent) were as follows: Oct. 1, 12.61; Oct. 4, 12.14. deposits was decreased from 30 days to 14 days for commercial banks. 15. Effective Aug. 1, 1981, commercial banks may pay interest on any variable 6. No separate account category. ceiling nonnegotiable time deposit with an original maturity of 2'A years to less 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was than 4 years at a rate not to exceed lA of 1 percent below the average 2>/i-year required for savings and loan associations, except in areas where mutual savings yield for U.S. Treasury securities as determined and announced by the U.S. Treasbanks permitted lower minimum denominations. This restriction was removed for ury Department immediately before the date of deposit. Mutual savings banks and deposits maturing in less than 1 year, effective Nov. 1, 1973. savings and loan associations may pay interest on these certificates at a rate not 8. No minimum denomination. Until July 1, 1979, minimum denomination was to exceed the averate 2A -year yield for U.S. Treasury securities as determined $1,000 except for deposits representing funds contributed to an Individual Retire- and announced by the Treasury Department immediately before the date of deposit. ment Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal If the announced average 2'/i-year yield for U.S. Treasury securities is less than Revenue Code. The $1,000 minimum requirement was removed for such accounts 9.50 percent, commercial banks may pay 9.25 percent and mutual savings banks in December 1975 and November 1976 respectively. and savings and loan associations, 9.50 percent for these deposits. These deposits 9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates have no required minimum denomination, and interest may be compounded on maturing in 4 years or more with minimum denominations of $1,000; however, the them. The ceiling rates of interest at which they may be offered vary biweekly. amount of such certificates that an institution could issue was limited to 5 percent The maximum allowable rates in October (in percent) for commercial banks were of its total time and savings deposits. Sales in excess of that amount, as well as as follows: Oct. 10, 15.40; Oct. 27, 15.30; and for thrift institutions: Oct. 10, 15.65; certificates of less than $1,000, were limited to the 6'A percent ceiling on time Oct. 27. 15.55. deposits maturing in 2XA years or more. 16. Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks, mutual savings Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4 banks, and savings and loan associations were authorized to offer variable ceiling years or more with minimum denomination of $1,000. There is no limitation on nonnegotiable time deposits with no required minimum denomination and with the amount of these certificates that banks can issue. maturities of 2Vi years or more. Effective Jan. 1, 1980, the maximum rate for 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom- commercial banks was 3/4 percentage point below the average yield on 2VS-year ination requirements. U.S. Treasury securities; tne ceiling rate for thrift institutions was lA percentage 11. Effective January 1, 1980, commercial banks are permitted to pay the same point higher than that for commercial banks. Effective Mar. 1, 1980. a temporary rate as thrifts on IRA and Keogh accounts and accounts of governmental units ceiling of ll3/4 percent was placed on these accounts at commercial banks; the when such deposits are placed in the new 2V5-year or more variable-ceiling certif- temporary ceiling for savings and loan associations and commercial banks, savings icates or in 26-week money market certificates regardless of the level of the Treasury and loan associations, and mutual savings banks was increased A percentage point. bill rate. The temporary ceiling was retained, and a minimum ceiling of 9.25 percent for 12. Must have a maturity of exactly 26 weeks and a minimum denomination of commercial banks ana 9.50 percent for savings and loan associations and mutual $10,000, and must be nonnegotiable. savings banks was established. 13. Commercial banks, savings and loan associations, and mutual savings banks NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally were authorized to offer money market time deposits effective June 1, 1978. The insured commercial banks, mutual savings banks, and savings and loan associations ceiling rate for commercial banks on money market time deposits entered into were established by the Board of Governors of the Federal Reserve System, the before June 5, 1980, is the discount rate (auction average) on most recently issued Board of Directors of the Federal Deposit Insurance Corporation, and the Federal six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings and Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 reloan associations and mutual savings banks was 'A percentage point higher than spectively. Title II of the Depository Institutions Deregulation and Monetary Conthe rate for commercial banks. Beginning Mar. 15, 1979, the !/4-percentage-point trol Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish o in r te m re o s r t e . d T if h fe e r e fu n l t l i a d l i f i f s e r r e e m nt o ia v l e i d s i w n h e e f n fe c th t e w h si e x n - m th o e n s th ix - T m re o a n s t u h ry b il b l i r ll a t r e a t i e s 8 is 3 /4 9 p p e e r r c c e e n n t t m re a g x u i l m at u io m n r C a o te m s m of i tt in ee te . re T s h t e p a m y a a x b i l m e u o m n d ra e t p e o s si o t n s t t o im t e h e d D ep e o p s o it s s i to in r y d e I n n o st m it i u n t a io ti n o s n s D e o - f o ra r te le s is s . b T e h tw ri e ft e n i ns 8 t 3 i / t 4 u t a i n o d n s 9 m p a e y r c p e a n y t . a A m ls a o x i e m ff u e m ct i 9 v e p e M rc a e rc n h t w 1 h 5, e n 1 9 th 7 e 9 , s i i n x t - e m re o s n t t h c o b m ill - d $ e 1 p 0 o 0, s 0 it 0 s 0 m o a r t m ur o in re g w in i t 9 h 0 m da a y tu s r o it r i e m s o o r f e 3 w 0 e - r 8 e 9 s d u a s y p s e n w d e e r d e s in u s M pe a n y d 1 e 9 d 7 3 in . F Ju or n e i n 1 f 9 o 7 r 0 m ; a s t u io c n h pounding was prohibited on six-month money market time deposits at all offering regarding previous interest rate ceilings on all types of accounts, see earlier issues institutions. The maximum allowable rates in October for commercial banks and of the FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal, and the Annual Report of the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A10 Domestic Financial Statistics • November 1981 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1981 TTyyppee ooff ttrraannssaaccttiioonn 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases 16,628 15,998 7,668 1.607 1,141 790 295 1,325 1,713 1,753 2 Gross sales 13,725 6,855 7,331 0 0 0 90 0 333 945 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 2,033 2,900 3,389 0 0 0 0 100 0 500 Others within 1 year1 5 Gross purchases 1,184 3,203 912 0 115 0 0 122 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shift -5,170 17,339 12,427 878 522 2,900 833 1,073 2,807 628 8 Exchange -11,308 -18,251 -1,385 -261 -1,281 -823 -351 -2,430 -599 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 0 469 0 0 607 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -12,693 -8,909 -878 -522 -1,724 -833 -1,073 -820 -628 13 Exchange 7.508 13,412 1,385 261 681 823 351 1,724 599 5 to 10 years 14 Gross purchases 1,526 523 703 0 164 0 0 64 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -4,646 -3,092 0 0 -1,176 0 0 -1,987 0 17 Exchange 2,181 2,970 0 0 300 0 0 400 0 Over 10 years 18 Gross purchases 1,063 454 811 0 89 0 0 182 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -426 0 0 0 0 0 0 0 21 Exchange 1,619 1,869 0 0 300 0 0 305 0 All maturities1 22 Gross purchases 24,591 22.325 12,232 1,607 1,977 790 295 2,301 1,713 1,753 23 Gross sales 13,725 6,855 7,331 0 0 0 90 0 333 945 24 Redemptions 2,033 5,500 3,389 0 0 0 0 100 0 500 Matched transactions 25 Gross sales 511,126 627,350 674,000 32.003 37,251 45,658 51,106 69,972 54,329 52,055 26 Gross purchases 510,854 624.192 675,496 30,441 37,295 43,492 52,607 69,309 55,917 51,555 Repurchase agreements 27 Gross purchases 151,618 107,051 113,902 1,623 9,458 1,219 3,509 23,217 7,199 0 28 Gross sales 152,436 106,968 113,040 1,246 9,835 1,219 3,509 21,599 8,817 0 29 Net change in U.S. government securities 7,743 6,896 3,869 422 1,644 -1,376 1,706 3,155 1,350 -192 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 15 2 * 26 * 33 Repurchase agreements 33 Gross purchases 40,567 37.321 28,895 494 1,211 186 691 5,182 864 0 34 Gross sales 40,885 36,960 28,863 437 1,268 186 691 4,822 1,225 0 35 Net change in federal agency obligations -426 681 555 42 -58 0 -26 360 -360 -33 BANKERS ACCEPTANCES 36 Outright transactions, net 0 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net -366 116 73 298 -298 0 0 453 -453 0 38 Net change in bankers acceptances -366 116 73 298 -298 0 0 453 -453 0 39 Total net change in System Open Market Account 6,951 7,693 4,497 762 1,287 -1,376 1,680 3,968 536 -225 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 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 Aug. Sept. Oct. Consolidated condition statement ASSETS 1 Gold certificate account 11,152 11,152 11,152 11,152 11,152 11,154 11,152 11,152 2 Special drawing rights certificate account 3,318 3,318 3,318 3,318 3,318 3,068 3,318 3,318 3 Coin 400 402 401 403 403 384 400 418 Loans 4 To depository institutions 2,486 1,560 2,593 3,315 1,885 1,254 2,486 924 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 0 0 0 801 0 0 0 0 Federal agency obligations 7 Bought outright 8,661 8,661 8,646 8,646 8,646 8,694 8,661 8,646 8 Held under repurchase agreements 0 0 0 527 0 0 0 0 U.S. government securities Bought outright 9 Bills 46,930 38,907 46,589 47,347 44,095 47,122 46,930 45,605 10 Notes 59,429 59,429 59,429 59,429 59,429 59,429 59,429 59,429 11 Bonds 17,971 17,971 17,971 17,971 17,971 17,971 17,971 17,971 12 Total1 124,330 116,307 123,989 124,747 121,495 124,522 124,330 123,005 13 Held under repurchase agreements 0 0 0 3,107 0 0 0 0 14 Total U.S. government securities 124,330 116,307 123,989 127,854 121,495 124,522 124,330 123,005 15 Total loans and securities 135,477 126,528 135,228 141,143 132,026 134,470 135,477 132,575 16 Cash items in process of collection 9,824 9,662 12,381 9,316 10,035 7,606 9,824 7,954 17 Bank premises 487 488 488 490 491 484 487 491 Other assets 18 Denominated in foreign currencies2 5,567 5,589 5,589 5,601 5,607 5,713 5,567 5,717 19 All other3 3,243 3,151 3,281 3,405 3,314 2,835 3,243 3,444 20 Total assets 169,468 160,290 171,838 174,828 166,346 165,714 169,468 165,069 LIABILITIES 21 Federal Reserve notes 125,050 126,028 126,803 126,015 125,752 125,134 125,050 125,351 Deposits 22 Depository institutions 27,243 18,658 27,216 32,468 26,138 27,045 27,243 23,672 23 U.S. Treasury—General account 3,520 3,665 3,024 3,723 2,842 2,595 3,520 3,550 24 Foreign—Official accounts 420 214 293 290 264 256 420 547 25 Other 843 630 565 628 568 502 843 573 26 Total deposits 32,026 23,167 31,098 37,109 29,812 30,398 32,026 28,342 27 Deferred availability cash items 7,013 6,329 8,922 6,530 5,951 5,377 7,013 6,264 28 Other liabilities and accrued dividends4 2,440 1,936 2,208 2,355 2,000 1,801 2,440 2,114 29 Total liabilities 166,529 157,460 169,031 172,009 163,515 162,710 166,529 162,071 CAPITAL ACCOUNTS 30 Capital paid in 1,257 1,258 1,258 1,261 1,268 1,256 1,257 1,268 31 Surplus 1,203 1,203 1,203 1,203 1,203 1,203 1,203 1,203 32 Other capital accounts 479 369 346 355 360 545 479 527 33 Total liabilities and capital accounts 169,468 160,290 171,838 174,828 166,346 165,714 169,468 165,069 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 91,462 90,842 91,163 90,490 90,482 92,025 91,462 90,857 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) .... 149,794 149,941 150,070 150,382 150,613 149,051 149,794 150,552 36 LESS: Held by bank5 24,744 23,913 23,267 24,367 24,861 23,917 24,744 25,201 37 Federal Reserve notes, net 125,050 126,028 126,803 126,015 125,752 125,134 125,050 125,351 Collateral for Federal Reserve notes 38 Gold certificate account 11,152 11,152 11,152 11,152 11,152 11,154 11,152 11,152 39 Special drawing rights certificate account 3,318 3,318 3,318 3,318 3,318 3,068 3,318 3,318 40 Other eligible assets 0 204 0 0 0 0 0 0 41 U.S. government and agency securities 110,580 111,354 112,333 111,545 111,282 110,912 110,580 110,881 42 Total collateral 125,050 126,028 126,803 126,015 125,752 125,134 125,050 125,351 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Includes special investment account at Chicago of Treasury bills maturing pledged with Federal Reserve Banks—and excludes (if any) securities sold and within 90 days. scheduled to be bought back under matched sale-purchase transactions. 4. Includes exchange-translation account reflecting the monthly revaluation at 2. Includes U.S. government securities held under repurchase agreement against market exchange rates of foreign-exchange commitments. receipt of foreign currencies and foreign currencies warehoused for the U.S. Treas- 5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank ury. Assets shown in this line are revalued monthly at market exchange rates. are exempt from tne collateral requirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A12 Domestic NonfinancialS tatistics • November 1981 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1981 1981 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 Aug. 31 Sept. 30 Oct. 30 1 Loans—Total 2,486 1,560 2,593 3,315 1,885 1,254 2,486 924 2 Within 15 days 2,440 1,473 2,480 3,282 1,834 1,169 2,440 843 3 16 days to 90 days 46 87 113 33 51 85 46 81 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 801 0 0 0 0 16 Within 15 days 0 0 0 801 0 0 0 0 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 124,330 116,307 123,989 127.854 121,495 124,522 124,330 123,005 10 Within 15 days1 4,218 4,577 4,209 7,825 4,421 3,589 4,218 2,692 11 16 days to 90 days 24,805 18,166 25,311 25,622 22,648 24,422 24,805 26,464 12 91 days to 1 year 32,896 31,153 32,058 31,996 32,015 34,071 32,896 31,438 13 Over 1 year to 5 years 34,689 34,689 34,689 34,689 34,689 34,718 34,689 34,689 14 Over 5 years to 10 years 11,519 11,519 11,519 11,519 11,519 11,519 11,519 11,519 15 Over 10 years 16,203 16,203 16,203 16,203 16,203 16,203 16,203 16,203 16 Federal agency obligations—Total 8,661 8,661 8,646 9,173 8,646 8,694 8,661 8,646 17 Within 15 days1 200 136 153 690 71 195 200 71 18 16 days to 90 days 522 621 630 574 741 553 522 741 19 91 days to 1 year 1,631 1,596 1,572 1,631 1,465 1,692 1,631 1,465 20 Over 1 year to 5 years 4,730 4,730 4,713 4,690 4,781 4,638 4,730 4,781 21 Over 5 years to 10 years 977 977 1,005 1,015 1,015 1,015 977 1,015 22 Over 10 years 601 601 573 573 573 601 601 573 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 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11997788 11997799 11998800 May June July Aug. Sept. Debits to demand deposits1 (seasonally adjusted) 11111111 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 40,297.8 49,775.0 63.013.4 74.800.5 78.745.3 83,356.8 89,723.4 85,571.0 22222222 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 15,008.7 18,512.7 25.192.5 29,610.9 32.262.4 37,282.6 41.877.2 37,477.2 33333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 25,289.1 31,262.3 37,820.9 45.189.6 46,482.8 46,074.2 47.846.3 48,093.8 Debits to savings deposits2 (not seasonally adjusted) 44444444 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 17.1 83.3 158.4 693.3 808.8 798.2 745.0 820.2 55555555 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 56.7 77.3 93.4 112.0 113.8 120.6 118.1 122.0 66666666 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 359.7 515.2 605.3 518.3 586.4 605.5 595.5 577.0 77777777 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 432.9 675.8 857.2 1,323.6 1,509.0 1,524.3 1,458.6 1,519.2 Demand deposit turnover1 (seasonally adjusted) 88888888 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 139.4 163.5 201.6 260.9 281.3 296.1 316.8 303.3 99999999 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 541.9 646.2 813.7 975.1 1,085.4 1,288.6 1,338.1 1,204.4 1111111100000000 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 96.8 113.3 134.3 176.3 185.8 182.4 189.9 191.6 Savings deposit turnover2 (not seasonally adjusted) 1111111111111111 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 7.0 7.8 9.7 13.5 15.2 14.7 13.5 14.5 1111111122222222 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 5.1 7.2 9.3 11.7 12.3 13.2 13.5 14.3 1111111133333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 1.7 2.7 3.4 3.3 3.7 3.9 3.9 3.9 1111111144444444 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 1.9 3.1 4.2 6.0 6.9 6.9 6.7 7.1 1. Represents accounts of individuals, partnerships, and corporations, and of NOTE. Historical data for the period 1970 through June 1977 have been estimated; states and political subdivisions. these estimates are based in part on the debits series for 233 SMS As, which were 2. Excludes special club accounts, such as Christmas and vacation clubs. available through June 1977. Back data are available from Publications Services, 3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts Division of Administrative Services, Board of Governors of the Federal Reserve authorized for automatic transfer to demand deposits (ATS). ATS data availability System, Washington, D.C. 20551. Debits and turnover data for savings deposits starts with December 1978. are not available before July 1977. 4. Represents corporations and other profit-seeking organizations (excluding commercial banks but including savings and loan associations, mutual savings banks, credit unions, the Export-Import Bank, and federally sponsored lending agencies). 5. Savings accounts other than NOW; business; and, from December 1978, ATS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Aggregates A13 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 11998811 1977 1978 1979 1980 May June July Aug. Sept. Seasonally adjusted MEASURES1 1 Ml-A 331.4 354.8 372.7 387.7 364.9 361.9 361.3 362.2 359.9 2 Ml-B 336.4 364.2 390.5 415.6 431.5 428.8 430.1 432.7r 431.7 3 M2 1,296.4 1,404.2 1,525.2 1,669.4 1,743.4 1,749.3 1,760.1 1,777.lr 1,786.6 4 M3 1,462.5 1,625.9 1,775.6 1,965.1 2,060.8 2.079.0 2,094.0 2,117.3' 2,131.8 5 1.2 1.722.7 1,936.8 2,151.7 2,378.4 2,480.1 2,502.7 2,521.3 n.a. n.a. COMPONENTS 6 Currency 88.6 97.4 106.1 116.1 119.8 119.9 120.8 121.2 121.1 7 Demand deposits 239.7 253.9 262.8 267.4 240.7 237.9 236.4 236.7 234.4 8 Travelers checks3 3.1 3.5 3.8 4.2 4.4 4.2 4.1 4.3 4.4 9 Savings deposits 486.5 475.5 416.5 393.0 361.1 354.0 349.1 340.7r 334.3 10 Small-denomination time deposits4 453.8 533.3 652.7 756.8 798.4 807.7 811.3 822.0r 831.0 11 Large-denomination time deposits5 145.1 194.0 219.7 256.8 277.2 287.3 290.3 296.6r 298.5 Not seasonally adjusted MEASURES' 12 Ml-A 340.1 364.2 382.5 397.7 359.4 361.1 363.5 360.7r 359.9 13 Ml-B 345.1 373.6 400.6 425.9 424.4 428.4 432.9 431.2'' 432.2 14 M2 1.299.0 1.409.0 1,531.3 1.675.2 1,737.5 1,751.5 1,765.0 1,773.5 1,783.2 15 M3 1,467.7 1,634.8 1,786.0 1,975.6 2,054.0 2,075.6 2,094.6 2,110.7' 2,126.2 16 L2 1,726.7 1,943.9 2,159.4 2,385.0 2,478.0 2,501.4 2,520.1 n.a. n.a. COMPONENTS 17 Currency 90.3 99.4 108.3 118.4 119.3 119.9 121.4 121.4' 121.0 18 Demand deposits 247.0 261.5 270.8 275.4 235.9 237.0 237.4 234.5 234.4 19 Travelers checks3 2.9 3.3 3.5 3.9 4.2 4.3 4.7 4.7 4.5 20 Other checkable deposits6 5.0 9.4 18.2 28.3 65.3 67.6 69.7 70.8 72.6 21 Overnight RPs and Eurodollars7 18.6 23.9 25.4 32.4 38.3 39.7 39.2 40.2 36.4 22 Money market mutual funds 3.8 10.3 43.6 75.8 118.1 122.8 134.3 145.4 156.9 23 Savings deposits 483.1 472.6 413.9 390.2 359.7 355.4 352.9 343.7' 337.1 24 Small-denomination time deposits4 451.3 531.7 651.4 755.2 801.0 808.9 809.6 816.8r 824.4 25 Large-denomination time deposits5 147.7 198.1 223.9 261.4 276.3 281.6 286.0 293.6r 296.2 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 instituvaults 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, and 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 Cainstitutions, 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. 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents other than banks, bankers acceptances, commercial paper. Treasury bills and other liquid Treasury securities, and U.S. savings bonds. 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 Nonfinancial Statistics • November 1981 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MEMBER BANK DEPOSITS1 Billions of dollars, averages of daily figures 1981 IItteemm 1978 1979 1980 Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted 1 Total reserves2 41.16 43.46 40.13 40.06 39.88 40.19 40.32 40.76 40.75 41.00 41.48 41.12 2 Nonborrowed reserves 40.29 41.98 38.44 38.67 38.58 39.19 38.99 38.54 38.72 39.32 40.06 39.67 3 Required reserves 40.93 43.13 39.66 39.75 39.61 39.94 40.20 40.59 40.50 40.75 41.28 40.80 4 Monetary base3 142.0 153.6 159.5 160.1 160.4 161.2 162.2 163.5 163.7 164.8 165.7 164.6 5 Member bank deposits subject to reserve requirements4 616.1 644.5 701.8 703.8 704.3 703.4 711.3 715.1 720.8 728.2 740.2 744.6 6 Time and savings 428.7 451.2 504.0 517.5 523.4 524.7 531.1 538.1 545.6 553.8 565.3 570.9 Demand 7 Private 185.1 191.5 195.9 184.1 178.8 176.7 177.4 174.7 173.3 172.2 172.6 171.5 8 U.S. government 2.2 1.8 1.9 2.3 2.1 2.0 2.8 2.3 1.9 2.2 2.3 2.1 Not seasonally adjusted 9 Monetary base3 144.6 156.2 162.4 161.0 158.8 159.5 161.6 162.6 163.3 165.4 165.4 163.9 10 Member bank deposits subject to reserve requirements4 624.0 652.7 710.3 712.6 701.5 702.9 713.5 710.0 719.7 727.7 734.7 741.6 11 Time and savings 429.6 452.1 505.0 520.6 524.9 527.8 531.6 538.1 545.0 552.7 562.5 568.1 Demand 12 Private 191.9 198.6 203.2 189.9 174.5 173.0 178.9 169.8 172.2 173.0 170.3 171.0 13 U.S. government 2.5 2.0 2.1 2.1 2.1 2.1 3.0 2.1 2.5 2.0 1.9 2.5 1. Reserves of depository institutions series reflect actual reserve requirement requirement against large time deposits were removed. These actions reduced percentages with no adjustment to eliminate the effect of changes in Regulations required reserves about $3.2 billion. D and M. Before Nov. 13, 1980, the date of implementation of the Monetary 2. Reserve balances with Federal Reserve Banks plus vault cash at institutions Control Act, only the reserves of commercial banks that were members of the with required reserve balances plus vault cash equal to required reserves at other Federal Reserve System were included in the series. Since that date the series institutions. include the reserves of all depository institutions. In conjunction with the imple- 3. Includes reserve balances at Federal Reserve Banks in the current week plus mentation of the act, required reserves of member banks were reduced about $4.3 vault cash held two weeks earlier used to satisfy reserve requirements at all billion and required reserves of other depository institutions were increased about depository institutions plus currency outside the U.S. Treasury, Federal Reserve $1.4 billion. Effective Oct. 11, 1979, an 8 percentage point marginal reserve re- Banks, the vaults of depository institutions, and surplus vault cash at depository quirement was imposed on "Managed Liabilities." This action raised required institutions. reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point mar- 4. Includes total time and savings deposits and net demand deposits as defined ginal reserve requirement was raised to 10 percentage points. In addition the base by Regulation D. Private demand deposits include all demand deposits except upon which the marginal reserve requirement was calculated was reduced. This those due to the U.S. government, less cash items in process of collection and action increased required reserves about $1.7 million in the week ending Apr. 2, demand balances due from domestic commercial banks. 1980. Effective May 29, 1980, the marginal reserve requirement was reduced from 10 to 5 percentage points and the base upon which the marginal reserve requirement NOTE. Latest monthly and weekly figures are available from the Board's H.3(502) was calculated was raised. This action reduced required reserves about $980 million statistical release. Back data and estimates of the impact on required reserves and in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal changes in reserve requirements are available from the Banking Section, Division reserve requirement on managed liabilities and the 2 percent supplementary reserve 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 Banks1 Billions of dollars; averages of Wednesday figures _ 1981 1981 1978 1979 1980 1978 1979 1980 Dec. Dec. Dec. Dec. Dec. Dec. Aug. Sept. Aug. Sept. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 1,013.43 1,134.64 1,237.2S 1,302.8 1,314.2 1,022.53 1,145.0* 1,248.8S 1,302.2 1,316.1 2 U.S. Treasury securities 93.3 93.8 110.7 119.4 117.6 94.5 95.0 112.1 117.0 115.6 3 Other securities 173.23 191.8 213.9 221.9 223.9 173.93 192.6 214.8 221.5 224.0 4 Total loans and leases2 746.93 848.94 912.75 961.5 972.7 754.23 857.44 922.0s 963.8 976.6 5 Commercial and industrial loans 246.I6 291.14 324.95 349.7 355.1 47.76 293.04 327.05 349.4 355.0 6 Real estate loans 210.5 241.34 260.6s 275.3r 277.4 210.9 241.84 261.1s 276. lr 278.8 7 Loans to individuals 164.7 184.9 175.2 173.8 n.a. 165.6 186.0 176.2 175.4 n.a. 8 Security loans 19.3 18.6 17.6 17.7 18.5 20.6 19.8 18.8 17.8 18.6 9 Loans to nonbank financial institutions .. 27.18 28.84 28.75 29.7 29.3 27.68 29.34 29.2s 30.0 29.8 10 Agricultural loans 28.2 31.1 31.6 33.0 33.2 28.1 30.9 31.4 33.7 33.8 11 Lease financing receivables 7.5 9.3 10.9 12.4 12.5 7.5 9.3 10.9 12.4 12.5 12 All other loans 43.63 44.0 63.3 69.8r n.a. 46.23 47.3 67.3 69.0 n.a. MEMO: 13 Total loans and securities plus loans sold2'9 . 11,,001177..1133 11..113377..6644 1100 11,,223399..99SS 1,305.4 1,316.9 11,,002266..2233 11,,114488..00**''°° 11,,225511..55SS 1,304.9 1,318.8 14 Total loans plus loans sold2,9 750.63 851.9410 915.4s 964.1 975.4 757.93 860.44-10 924.7s 966.4 979.3 15 Total loans sold to affiliates9 3.7 3.08'10 2.7 2.6 2.7 3.7 3.08-10 2.7 2.6 2.7 16 Commercial and industrial loans plus loans sold9 248.0611 229933..1144,,1100 332266..66ss 351.7 357.2 224499..6666 1111 229955..0044--1100 328.8s 351.4 357.0 17 Commercial and industrial loans sold9 ... 1.9" 2.010 1.8 2.0 2.0 1.911 2.010 1.8 2.0 2.0 18 Acceptances held 6.6 8.2 8.2 9.3 9.4 7.3 9.1 8.8 8.9 8.9 19 Other commercial and industrial loans... 239.5 282.9 316.7 340.3 345.8 240.4 283.9 318.2 340.5 346.1 20 To U.S. addressees12 226.0 264.1 295.2 314.6 320.2 225.9 264.1 295.2 315.2 320.8 21 To non-U.S. addressees 13.5 18.8 21.5 25.7 25.6 14.5 19.8 23.0 25.3 25.3 22 Loans to foreign banks 21.5 18.5 23.1 22.4 23.7 23.2 20.0 24.8 22.2 23.4 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 NonfinancialS tatistics • November 1981 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars December outstanding Outstanding in 1981 SSoouurrccee 1978 1979 1980 Jan. Feb. Mar. Apr. May June July Aug. Sept. Total nondeposit funds 1 Seasonally adjusted2 91.2 121.1 121.2 124.7 122.2 117.2 111.6 118.0 120.3 119.4 120.6 117.5 2 Not seasonally adjusted 90.2 119.8 120.6 122.1 121.5 116.9 111.1 122.5 121.0 120.1 123.6 121.6 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 80.7 90.0 110.3 113.7 111.2 110.9 109.8 107.1 112.4 111.8 108.9 107.0 4 Not seasonally adjusted 79.7 88.7 109.7 111.1 110.4 110.7 109.4 111.5 113.2 112.5 111.9 111.1 5 Net balances due to foreign-related institutions, not seasonally adjusted 6.8 28.1 8.2 8.2 8.2 3.5 -.9 8.2 5.0 4.9 9.1 7.8 6 Loans sold to affiliates, not seasonally adjusted4-5 3.7 3.0 2.7 2.8 2.8 2.8 2.7 2.8 2.8 2.7 2.6 2.7 MEMO 7 Domestically chartered banks net positions with own foreign branches, not seasonally adjusted6 -10.2 6.5 -14.7 -16.2 -14.7 -17.0 -21.3 -13.6 -14.6r -14.6r -10.2 -12.3 8 Gross due from balances 24.9 22.8 37.5 37.5 36.3 38.8 43.0 43.4r 42.5 45.0r 43.7 44.5 9 Gross due to balances 14.7 29.3 22.8 21.2 21.6 21.8 21.7 29.8 27.8 30.4 33.5 32.2 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7 17.0 21.6 22.9 24.4 22.9 20.5 20.4 21.8 19.6 19.5 19.3 20.0 11 Gross due from balances 14.3 28.9 32.5 31.5 31.8 31.9 33.8 34.9 35.5 33.7 34.0 35.1 12 Gross due to balances 31.3 50.5 55.4 55.9 54.7 52.3 54.1 56.7 55.2 53.2 53.3 55.2 Security RP borrowings 13 Seasonally adjusted" 45.0 49.7 65.0 69.7 68.1 68.2 68.3 65.7 72.4 71.4 68.8 67.2 14 Not seasonally adjusted 43.8 48.4 63.3 66.0 66.2 66.8 66.8 69.0 72.0 71.0 70.7 70.2 U.S. Treasury demand balances9 15 Seasonally adjusted 8.7 8.9 8.4 7.0 8.3 11.9 12.4 14.3 10.9 11.8 9.2 8.9 16 Not seasonally adjusted 10.3 9.7 9.0 8.0 8.2 10.4 12.2 12.5 12.4 10.7 7.5 11.2 Time deposits, $100,000 or more10 17 Seasonally adjusted 213.0 227.1 265.8 277.0 282.5 281.1 284.3 294.8 303.6 312.4 322.0 324.9 18 Not seasonally adjusted 217.9 232.8 272.4 282.0 287.0 285.9 283.7 293.6 298.4 304.6 314.6 320.0 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 of 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 participations 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Commercial Banks All 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,177.1 1,166.0 1,167.0 1,169.5 1,187.8 1.194.6 1,205.3 1,213.2 1,241.8 1,239.3 2 Loans, excluding interbank 851.4 840.2 839.0 840.6 855.4 862.4 872.2 879.2 904.4 901.0 3 Commercial and industrial 281.5 277.6 276.3 277.5 285.4 287.9 293.1 295.8 299.0 306.1 307.6 4 Other 569.9 562.6 562.7 563.1 570.1 574.5 579.1 583.4 587.9 598.3 593.4 5 U.S. Treasury securities 111.2 112.0 113.7 112.9 115.8 114.9 116.1 115.8 114.0 112.4 114.0 6 Other securities 214.6 213.8 214.3 216.0 216.6 217.3 216.9 218.2 219.8 225.0 224.3 7 Cash assets, total 194.2 159.3 165.9 167.9 181.8 180.3 169.8 161.1 173.2 195.3 154.7 8 Currency and coin 19.9 18.7 18.6 17.8 18.8 19.5 19.1 19.6 20.2 19.3 19.8 9 Reserves with Federal Reserve Banks 28.2 25.2 30.4 31.8 38.3 25.2 25.4 27.0 25.4 26.8 25.3 10 Balances with depository institutions . 63.0 54.9 54.6 55.1 57.3 62.0 60.7 56.8 66.0 73.6 54.1 11 Cash items in process or collection ... 83.0 60.5 62.3 63.3 73.6 64.6 57.7 61.6 75.6 55.5 67.4 12 Other assets2 165.6 155.8 160.1 163.4 158.8 168.6 158.8 164.2 180.0 171.3 167.7 13 Total assets/total liabilities and capital... 1,537.0 1,481.0 1,493.0 1,500.9 1.533.7 1,543.7 1,533.2 1,557.9 1,617.1 1,565.3 1,537.3 14 Deposits 1,187.4 1,128.7 1,132.0 1,136.5 1,170.3 1,165.9 1,160.8 1,182.2 1,225.6 1,177.7 15 Demand 432.2 351.1 345.5 345.3 1,151.7 360.7 350.9 333.6 342.5 378.1 323.9 16 Savings 201.3 211.9 214.3 220.5 356.8 220.9 220.7 219.8 218.0 217.6 214.9 17 Time 553.8 565.7 572.3 570.7 2 5 2 7 2 2 . . 7 2 588.7 594.3 607.3 621.7 629.9 638.8 18 Borrowings 156.4 156.4 163.2 163.8 179.5 155.7 169.3 159.3 163.7 175.8 173.3 19 Other liabilities 79.0 76.7 80.3 80.6 81.8 82.3 81.8 86.3 89.8 91.5 89.4 20 Residual (assets less liabilities) 114.2 119.3 117.5 120.0 124.3 125.4 126.7 126.7 122.1 124.3 125.0 MEMO: 21 U.S. Treasury note balances included in borrowing 9.5 9.5 8.5 10.2 16.9 5.5 17.4 7.2 6.9 15.3 13.9 22 Number of banks 14,693 14,689 14,696 14,701 14,713 14,719 14,719 14,719 14,720 14,720 14,740 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,262.4 1,253.8 1,290.7 24 Loans, excluding interbank 932.5 920.9 953.3 25 Commercial and industrial 330.6 329.3 343.2 26 Other 601.9 591.6 610.1 27 U.S. Treasury securities 113.6 115.2 118.5 28 Other securities 216.3 217.7 218.9 29 Cash assets, total 218.6 193.6 211.5 30 Currency and coin 20.0 17.8 19.1 31 Reserves with Federal Reserve Banks 29.0 32.7 26.6 32 Balances with depository institutions . 85.0 77.9 98.2 33 Cash items in process of collection ... 84.7 65.3 67.6 34 Other assets2 222.7 225.5 234.3 35 Total assets/total liabilities and capital... 1,703.7 1,673.0 1,736.5 36 Deposits 1,239.9 1,190.6 1,236.7 37 Demand 453.6 367.4 389.4 38 Savings 201.6 220.7 220.9 39 Time 584.7 602.5 626.4 40 Borrowings 210.4 223.3 230.6 41 Other liabilities 135.5 137.2 140.7 42 Residual (assets less liabilities) 117.9 121.9 128.6 MEMO: 43 U.S. Treasury note balances included in borrowing 9.5 10.2 17.4 44 Number of banks 15,120 15,147 15,188 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 corporations, and New York State foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A18 Domestic NonfinancialS tatistics • November 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 1981 AAccccoouunntt Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30P Oct. IP Oct. 14^ Oct. 21P Oct. 28P 1 Cash items in process of collection 53,952 56,525 58,636 51,874 62,212 47,086 58,835 4466,,997777 4444,,662200 2 Demand deposits due from banks in the United States 20,743 23,504 22,972 21,282 25,731 6,930 7,207 6,537 7,028 3 All other cash and due from depository institutions.. 33,734 29,636 34,576 34,576 33,370 25,826 34,414 38,317 32,772 4 Total loans and securities 585,652 587,229 586,916 581,035 596,593 594,495 594,214 593,666 585,827 Securities 5 U.S. Treasury securities 38,856 39,399 39,370 38,075 37,783 38,363 37,826 37,668 38,417 6 Trading account 6,868 7,397 7,499 6,477 6,132 6,601 6,338 6,219 6,906 7 Investment account, by maturity 31,988 32,002 31,871 31,598 31,650 31,762 31,488 31,450 31,511 8 One year or less 9,519 9,519 9,395 9,240 9,625 9,704 9,597 9,548 9,632 9 Over one through five years 18,995 18,966 18,934 18,825 18,504 18,475 18,304 18,332 18,281 10 Over five years ; 3,473 3,517 3,543 3,532 3,522 3,583 3,586 3,569 3,598 11 Other securities 78,692 77,794 77,553 77,363 79,496 78,304 78,119 77,964 78,034 12 Trading account 3,720 2,722 2,425 2,341 4,278 2,985 2,622 2,430 2,327 13 Investment account 74,972 75,072 75,128 75,022 75,218 75,319 75,497 75,534 75,707 14 U.S. government agencies 16,374 16,317 16,206 16,128 16,086 16,183 16,091 16,173 16,142 IS States and political subdivisions, by maturity.... 55,732 55,889 56,047 56,048 56,292 56,286 56,532 56,540 56,722 16 One year or less 7,450 7,541 7,626 7,597 7,852 7,949 7,964 8,024 7,969 17 Over one year 48,282 48,348 48,421 48,451 48,440 48,337 48,568 48,516 48,754 18 Other bonds, corporate stocks and securities.... 2,866 2,866 2,875 2,846 2,839 2.849 2,873 2,821 2,843 Loans 19 Federal funds sold1 29,065 31,358 30,668 28,385 32,978 33,963 33,012 31,717 28,272 20 To commercial banks 21,187 23,633 22,700 20,811 24,071 22,976 24,425 23,504 19,283 21 To nonbank brokers and dealers in securities 5,977 5,798 6,121 5,940 6,910 7,4% 6,472 6,179 5,824 22 To others 1,902 1,927 1,847 1,634 1,997 3,490 2,115 2,034 3,165 23 Other loans, gross 451,358 451,025 451,687 449,580 458,545 456,182 457,613 458,704 453,509 24 Commercial and industrial 184,974 184,083 185,181 184,955 188,057 188,094 188,339 188,342 187,404 25 Bankers acceptances and commercial paper 3,721 3,149 3,082 2,897 3,702 3,444 3,664 3,692 3,603 26 All other 181,254 180,934 182,099 182,058 184,356 184,650 184,675 184,649 183,800 27 U.S. addressees 173,706 173,495 174,784 174,636 177,001 177,224 177,217 177,233 176,508 28 Non-U.S. addressees 7,548 7,439 7,315 7,422 7,355 7,426 7,458 7,416 7,293 29 Real estate 120,293 120,551 121,023 121,312 121,588 121,809 122,158 122,382 122,553 30 To individuals for personal expenditures 72,335 72,480 72,583 72,824 72,992 73,072 73,101 73,106 73,290 To financial institutions 31 Commercial banks in the United States 6,837 7,258 6,724 6,378 6,849 6,477 6,897 6,726 6,502 32 Banks in foreign countries 9,790 10,444 9,811 9,822 10,434 9,868 10,408 9,676 9,380 33 Sales finance, personal finance companies, etc .. 10,614 10,223 10,266 9,861 10,428 10,281 10,318 10,183 9,798 34 Other financial institutions 16,523 16,415 16,2% 15,806 15,864 16,066 15,973 15,854 15,616 35 To nonbank brokers and dealers in securities 5,992 5,277 5,464 5,243 7,595 6,977 5,626 4,996 5,870 36 To others for purchasing and carrying securities2.. 2,624 2,625 2,566 2,577 2,604 2,590 2,595 2,619 2,613 37 To finance agricultural production 5,977 5,942 5,965 5,986 5,976 5,976 5,986 5,929 5,904 38 All other 15,399 15,727 15,806 14,816 16,158 14,971 16,211 18,890 14,579 39 LESS: Unearned income 5,964 5,969 5,980 5,990 5,855 5,932 5,967 5,967 5,970 40 Loan loss reserve 6,355 6,378 6,383 6,379 6,353 6,384 6,389 6,420 6,435 41 Other loans, net 439,039 438,677 439,324 437,211 446,336 443,866 445,256 446,316 441,104 42 Lease financing receivables 10,512 10,526 10.503 10,515 10,581 10,557 10,563 10,573 10,628 43 All other assets 90,839 94,109 92,178 90,364 96,054 97,085 97,279 92,487 93,482 44 Total assets 795,433 801,529 805,782 789,646 824,542 781,979 802,512 788,557 774,358 Deposits 45 Demand deposits 187,392 193,958 197,483 183,524 209,231 169,147 182,836 167,626 163,399 46 Mutual savings banks 640 677 646 567 691 762 712 608 592 47 Individuals, partnerships, and corporations 127,974 130,941 133,744 123,787 135,882 127,244 137,064 127,784 123,721 48 States and political subdivisions 4,532 4,136 4,698 4,734 5,137 4,661 4,425 4,417 4,140 49 U.S. government 1,106 1,975 3,102 2,488 2,196 1,662 1,417 1,167 1,562 50 Commercial banks in the United States 36,984 38,651 37,841 34,355 44,134 18,552 21,350 18,665 18,016 51 Banks in foreign countries 7,451 8,640 8,559 8,912 10,794 8,014 9,320 7,898 8,211 52 Foreign governments and official institutions 1,427 2,315 1,685 1,774 1,551 1,054 884 931 1,216 53 Certinedand officers' checks 7,276 6,622 7,208 6,906 8,847 7,198 7,662 6,157 5,941 54 Time and savings deposits 349,910 347,990 347,188 348,214 349,196 354,145 352,540 350,895 350,803 55 Savings 76,204 76,668 76,338 74,966 75,388 76,029 75,478 75,096 74,568 56 Individuals and nonprofit organizations 72,672 73,082 72,838 71,487 71,885 72,433 71,937 71,591 7711,,006666 57 Partnerships and corporations operated for profit 33,,000077 33,,005522 2,967 2,949 2,935 2,959 2,945 2,939 2,954 58 Domestic governmental units 502 508 511 509 546 615 574 544 525 59 All other 24 26 22 20 22 22 22 22 22 60 Time 273,705 271,322 270,850 273,248 273,809 278,116 277,063 275,799 276,234 61 Individuals, partnerships, and corporations 239,801 237,809 237,427 239,516 240,298 244,384 243,410 242,125 242,838 62 States and political subdivisions 19,686 19,479 19,263 19,530 19,205 19,332 19,470 19,505 19,477 63 U.S. government 238 269 243 230 209 209 228 250 238 64 Commercial banks in the United States 8,509 8,411 8,638 8,789 8,870 9,043 88,,886699 88,,880022 88,,559944 65 Foreign governments, official institutions, and banks 5,470 5,355 5,279 5,183 5,227 55,,114499 55,,008855 55,,111177 55,,008877 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,240 744 700 1,423 1,412 854 1,839 2,398 953 67 Treasury tax-and-loan notes 3,093 997 7,194 8,237 12,082 5,071 6,501 9,577 9,856 68 All other liabilities for borrowed money3 129,203 135,706 130,711 124,385 125,805 128,690 135,453 113322,,009999 112244,,777711 69 Other liabilities and subordinated notes and debentures 71,746 69,206 69.670 71,262 73,585 70,745 69,917 72,555 71,254 70 Total liabilities 742,583 748,601 752,946 737,046 771,312 728,652 749,086 735,150 721,035 71 Residual (total assets minus total liabilities)4 52,850 52,928 52,836 52,600 53,229 53,327 53,426 53,407 53,323 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 FmRoAre SoEn RDe c. 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 1981 AAccccoouunntt Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30p Oct. IP Oct. 14P Oct. 21P Oct. 28p 1 Cash items in process of collection 5500,,887788 53,109 55,190 48,925 59,068 44,210 54,977 43,858 41,972 2 Demand deposits due from banks in the United States 20,081 22,720 22,272 20,647 25,094 6,342 6,591 5,958 6,455 3 All other cash and due from depository institutions.. 31,717 27,644 32,339 32,272 31,131 23,955 32,029 35,978 30,528 4 Total loans and securities 546,969 548,335 547,984 542,339 557,688 555,115 555,020 554,737 547,039 Securities 5 U.S. Treasury securities 35,456 35,967 35,947 34,666 34,322 34,995 34,348 34,255 35,014 6 Trading account 6,798 7,323 7,424 6,415 6,017 6,515 6,247 6,148 6,826 7 Investment account, by maturity 28,658 28,644 28,523 28,251 28,306 28,480 28,101 28,107 28,188 8 One year or less 8,595 8,572 8,462 8,333 8,668 8,813 8,602 8,608 8,723 9 Over one through five years 16,922 16,903 16,866 16,720 16,428 16,396 16,224 16,241 16,178 10 Over five years 3,141 3,169 3,194 3,198 3,210 3,270 3,274 3,258 3,287 11 Other securities 72,385 71,499 71,270 71,053 73,101 71,962 71,735 71,586 71,657 12 Trading account 3,661 2,673 2,373 2,277 4,112 2,928 2,556 2,364 2,253 13 Investment account 68,724 68,826 68,896 68,776 68,988 69,034 69,178 69,222 69,404 14 U.S. government agencies 15,184 15,129 15,022 14,944 14,911 14,980 14,925 14,995 14,974 15 States and political subdivision, by maturity .... 50,843 51,001 51,169 51,156 51,409 51,374 51,552 51,578 51,760 16 One year or less 6,664 6,766 6,858 6,829 7,111 7,211 7,188 7,259 7,245 17 Over one year 44,180 44,235 44,311 44,327 44,298 44,163 44,364 44,318 44,514 18 Other bonds, corporate stocks and securities.... 2,697 2,696 2,705 2,676 2,668 2,680 2,701 2,649 2,671 Loans 19 Federal funds sold1 25,594 27,792 27,006 24,940 29,800 30,088 29,601 28,456 25,138 20 To commercial banks 18,407 20,631 19,671 17,997 21,457 19,826 21,597 20,738 16,666 21 To nonbank brokers and dealers in securities 5,319 5,272 5,516 5,342 6,374 6,900 5,919 5,700 5,338 22 To others 1,867 1,889 1,819 1,602 1,969 3,362 2,085 2,018 3,135 23 Other loans, gross 424,831 424,398 425,095 423,020 431,648 429,359 430,666 431,798 426,601 24 Commercial and industrial 175,968 175,083 176,178 175,985 178,951 179,006 179,241 179,194 178,230 25 Bankers acceptances and commercial paper 3,592 3,025 2,972 2,799 3,596 3,358 3,576 3,600 3,502 26 All other 172,376 172,058 173,207 173,186 175,355 175,647 175,665 175,594 174,728 27 U.S. addressees 164,903 164,694 165,968 165,842 168,078 168,296 168,283 168,259 167,510 28 Non-U.S. addressees 7,473 7,364 7,239 7,344 7,277 7,351 7,382 7,335 7,218 29 Real estate 113,620 113,870 114,315 114,587 114,850 115,070 115,396 115,627 115,798 30 To individuals for personal expenditures 63,412 63,494 63,620 63,833 63,953 64,022 64,020 64,044 64,209 To financial institutions 31 Commercial banks in the United States 6,718 7,123 6,608 6,269 6,666 6,298 6,700 6,578 6,336 32 Banks in foreign countries 9,711 10,374 9,729 9,733 10,360 9,797 10,307 9,589 9,306 33 Sales finance, personal finance companies, etc .. 10,471 10,088 10,130 9,726 10,287 10,141 10,177 10,048 9,675 34 Other financial institutions 16,086 15,958 15,840 15,358 15,424 15,639 15,550 15,435 15,210 35 To nonbank brokers and dealers in securities 5,921 5,212 5,407 5,184 7,533 6,921 5,572 4,939 5,801 36 To others for purchasing and carrying securities2 .. 2,393 2,391 2,334 2,343 2,368 2,356 2,360 2,372 2,374 37 To finance agricultural production 5,822 5,787 5,812 5,834 5,823 5,823 5,834 5,777 5,752 38 All other 14,709 15,017 15,120 14,168 15,432 14,284 15,509 18,194 13,908 39 LESS: Unearned income 5,324 5,326 5,334 5,340 5,212 5,286 5,322 5,318 5,319 40 Loan loss reserve 5,973 5,995 6,001 6,000 5,972 6.003 6,009 6,041 6,051 41 Other loans, net 413,535 413,077 413,760 411,679 420,464 418,069 419,336 420,439 415,230 42 Lease financing receivables 10,214 10,229 10,206 10,217 10,281 10,259 10,263 10,273 10,326 43 All other assets 87,954 91,213 89,339 87,559 93,038 94,231 94,470 89,722 90,595 44 Total assets 747,814 753,250 757,331 741,958 776,301 734,112 753,350 740,525 726,915 Deposits 45 Demand deposits 175,591 181,826 185,102 171,915 197,087 157,572 170,392 156,015 152,193 46 Mutual savings banks 606 645 618 548 664 734 683 589 572 47 Individuals, partnerships, and corporations 118,748 121,508 124,212 114,925 126,446 118,114 127,306 118,609 114,820 48 States and political subdivisions 4,077 3,646 4,167 4,094 4,538 4,182 3,918 3,910 3,691 49 U.S. government 979 1,800 2,690 2,051 2,007 1,498 1,281 998 1,406 50 Commercial banks in the United States 35,442 37,042 36,363 33,044 42,656 17,131 19,702 17,278 16,707 51 Banks in foreign countries 7,377 8,548 8,491 8,855 10,715 7,946 9,260 7,837 8,140 52 Foreign governments and official institutions 1,388 2,314 1,684 1,772 1,550 1,052 883 929 1,208 53 Certified and officers' checks 6,974 6,324 6,879 6,624 8,510 6,916 7,360 5,864 5,649 54 Time and savings deposits 327,312 325,326 324,538 325,516 326,588 331,216 329,668 328,054 328,112 55 Savings 70,368 70,810 70,515 69,248 69,630 70,230 69,742 69,396 68,907 56 Individuals and nonprofit organizations 67,106 67,495 67,279 66,032 66,385 66,906 66,468 66,156 65,666 57 Partnerships and corporations operated for profit 2,776 2,823 2,742 2,726 2,712 2,731 2,720 2,713 2,727 58 Domestic governmental units 462 467 471 469 511 571 533 506 492 59 All other 24 26 22 20 22 22 22 22 22 60 Time 256,944 254,516 254,023 256,268 256,959 260,986 259,926 258,657 259,205 61 Individuals, partnerships, and corporations 225,208 223,122 222,685 224,631 225,491 229,341 228,359 227,214 227,900 62 States and political subdivisions 17,898 17,713 17,560 17,827 17,540 17,632 17,766 17,663 17,768 63 U.S. government 228 258 233 220 199 199 218 240 228 64 Commercial banks in the United States 8,138 8,067 8,265 8,408 8,502 8,666 8,499 8,424 8,223 65 Foreign governments, official institutions, and banks 55,,447700 5,355 55,,227799 5,183 5,227 55,,114499 55,,008855 55,,111177 5,087 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,210 714 700 1,395 1,257 814 1,839 2,398 938 67 Treasury tax-and-loan notes 2,812 912 6,702 7,590 11,123 4,681 6,030 8,826 9,092 68 All other liabilities for borrowed money3 121,504 127,524 122,878 116,846 118,658 121,000 127,325 112244,,553300 117,194 69 Other liabilities and subordinated notes and debentures 70,009 67,500 68,022 69,543 71,815 69,018 68,154 70,797 69,540 70 Total liabilities 698,438 703,802 707,942 692,805 726,529 684,302 703,409 690,619 677,070 71 Residual (total assets minus total liabilities)4 49,376 49,448 49,389 49,153 49,772 49,810 49,941 49,906 49,845 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 repurchase; for information on these liabilities at banks with assets of $1 billion or Digitized form ForRe AonS DEeRc. 31, 1977, see table 1.13. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 Domestic Nonfinancial Statistics • November 1981 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1981 AAccccoouunntt Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30P Oct. IP Oct. 14P Oct. 21P Oct. 28p 1 Cash items in process of collection 18,348 16,510 19,666 1188,,220044 2255,,116644 1133,,119933 1177,,224433 1133,,115599 12,832 2 Demand deposits due from banks in the United States 14,893 14,854 16,283 15,392 18,738 1,113 1,277 1,010 1,178 3 All other cash and due from depository institutions.. 7,492 6,709 6,997 7,227 7,190 4,183 8,578 9,196 6,292 4 Total loans and securities' 132,689 132,670 133,352 132,343 139,236 135,190 136,320 139,219 131,785 Securities 6 7 Investment account, by maturity 8,328 8,352 8,300 8,203 8,320 8,386 8,248 8,176 8,133 8 One year or less 1,892 1,891 1,851 1,850 1,900 1,932 1,890 1,858 1,877 9 Over one through five years 5,571 5,582 5,584 5,488 5,552 5,575 5,480 5,441 5,374 10 Over five years 865 880 865 865 867 879 877 877 881 11 1? 13 Investment account 14,352 14,438 14,487 14,498 14,554 14,579 14,629 14,587 14,718 14 U.S. government agencies 2,446 2,447 2,435 2,442 2,405 2,390 2,386 2,354 2,345 15 States and political subdivision, by maturity .... 11,152 11,236 11,290 11,294 11,380 11,406 11,450 11,490 11,615 16 One year or less 1,765 1,846 1,867 1,867 1,936 1,961 1,906 1,973 1,934 17 Over one year 9,387 9,389 9,423 9,426 9,444 9,445 9,544 9,517 9,682 18 Other bonds, corporate stocks and securities.... 754 756 762 762 769 783 793 742 758 Loans 19 Federal funds sold3 7,025 6,785 7,416 7,616 9,517 7,752 8,091 8,922 6,849 20 To commercial banks 3,276 2,998 3,943 4,331 5,166 3,832 4,308 5,276 3,131 21 To nonbank brokers and dealers in securities 2,704 2,786 2,593 2,446 3,262 2,681 2,758 2,708 2,488 22 To others 1,045 1,001 880 838 1,089 1,239 1,025 938 1,229 23 Other loans, gross 106,340 106,484 106,538 105,412 110,166 107,835 108,732 110,920 105,486 24 Commercial and industrial 54,196 53,702 54,184 53,880 54,658 54,872 54,942 55,055 54,267 25 Bankers acceptances and commercial paper 1,118 931 944 708 999 917 1,038 1,092 1,069 26 All other 53,078 52,770 53,240 53,172 53,659 53,955 53,905 53,963 53,198 27 U.S. addressees 50,678 50,395 50,868 50,780 51,325 51,506 51,443 51,502 50,819 28 Non-U.S. addressees 2,400 2,376 2,371 2,392 2,334 2,449 2,462 2,461 2,378 29 Real estate 16,798 16,825 16,947 17,007 17,037 17,122 17,151 17,145 17,201 30 To individuals for personal expenditures 10,431 10,503 10,604 10,621 10,654 10,686 1100,,669966 10,708 10,717 31 To financial institutions Commercial banks in the United States 1,523 2,011 1,647 1,824 1,950 1,877 1,899 2,138 1,807 32 Banks in foreign countries 4,814 5,334 4,864 4,992 5,236 4,747 5,151 4,784 4,428 33 Sales finance, personal finance companies, etc... 4,532 4,355 4,351 4,121 4,584 4,403 4,424 4,278 3,939 34 Other financial institutions 4,804 4,784 4,669 4,622 4,626 4,684 4,676 4,630 4,464 35 To nonbank brokers and dealers in securities 3,729 3,333 3,476 2,960 5,191 4,235 3,271 2,912 3,389 36 To others for purchasing and carrying securities4 .. 609 601 593 596 618 596 590 605 619 37 To finance agricultural production 324 319 326 333 320 324 308 320 313 38 All other 4,579 4,717 4,876 4,458 5,291 4,290 5,624 8,346 4,342 39 LESS: Unearned income 1,359 1,379 1,384 1,380 1,328 1,343 1,359 1,354 1,366 40 Loan loss reserve 1,997 2,009 2,005 2,007 1,993 2,019 2,021 2,031 2,034 41 Other loans, net 102,984 103,095 103,149 102,026 106,845 104,473 105,352 107,534 102,086 42 Lease financing receivables 2,259 2,263 2,269 2,274 2,302 2,278 2,279 2,282 2,280 43 All other assets5 37,577 39,227 38,041 36,871 39,266 39,874 41,308 37,006 38,326 44 Total assets 213,259 212,232 216,608 212,310 231,896 195,830 207,004 201,872 192,694 Deposits 45 Demand deposits 63,299 64,376 68,456 64,514 80,131 45,872 51,384 47,018 44,901 46 Mutual savings banks 294 330 336 286 368 408 340 316 285 47 Individuals, partnerships, and corporations 30,759 30,766 33,764 30,976 35,068 30,005 33,940 31,712 30,150 48 States and political subdivisions 449 451 388 509 669 616 516 524 334 49 U.S. government 184 511 828 558 496 339 369 177 367 50 Commercial banks in the United States 21,915 21,228 22,018 20,612 28,952 4,016 4,428 4,854 4,104 51 Banks in foreign countries 5,664 6,688 6,695 7,135 8,864 6,395 7,456 6,200 6,532 52 Foreign governments and official institutions 1,115 2,017 1,438 1,469 1,294 813 652 695 943 53 Certified and officers' checks 2,918 2,384 2,990 2,968 4,420 3,281 3,683 2,539 2,186 54 Time and savings deposits 62,651 62,097 62,353 62,542 63,317 64,342 64,169 63,979 64,220 55 Savings 9,069 9,152 9,137 8,944 9,016 9,120 9,084 8,982 8,926 56 Individuals and nonprofit organizations 8,723 8,792 8,783 8,598 8,641 8,719 8,699 8,607 8,572 57 Partnerships and corporations operated for profit 225522 226622 225544 249 250 251 250 248 244 58 Domestic governmental units 91 94 97 95 120 146 132 125 108 59 All other 3 3 3 2 3 3 2 2 2 60 Time 53,582 52,945 53,216 53,598 54,301 55,222 55,085 54,997 55,294 61 Individuals, partnerships, and corporations 46,308 45,824 46,237 46,676 47,124 47,920 47,693 47,524 48,033 62 States and political subdivisions 1,916 1,886 1,875 1,946 1,963 2,039 2,119 2,112 2,149 63 U.S. government 81 72 54 40 36 36 45 60 45 64 Commercial banks in the United States 2,690 2,647 2,628 2,615 22,,777700 22,,884488 22,,883311 22,,882222 22,,558822 65 Foreign governments, official institutions, and banks 2,587 2,517 2,421 22,,332222 22,,440088 22,,337799 22,,339966 22,,447799 22,,448855 Liabilities for borrowed money 66 900 475 1,235 1,450 2,135 850 67 Treasury tax-and-loan notes 718 153 1,897 2,168 2,870 1,217 1,632 2,510 2,579 68 All other liabilities for borrowed money6 40,097 41,783 39,971 3377,,337799 4400,,669900 4400,,334499 4444,,770022 4400,,668866 3366,,005533 69 Other liabilities and subordinated notes and debentures 29,047 27,287 27,011 28,147 28,177 27,283 26,973 28,968 27,570 70 Total liabilities 196,712 195,696 200,164 195,986 215,186 179,062 190,311 185,296 176,173 71 Residual (total assets minus total liabilities)7 16,547 16,536 16,444 16,324 16,710 16,768 16,694 16,576 16,520 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 1981 AAccccoouunntt Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 p Oct. IP Oct. UP Oct. 21p Oct. 28p BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 569,948 568,685 569,855 566,215 577,882 577,358 575,248 575,823 572,447 2 Total loans (gross) adjusted1 452,400 451,492 452,931 450,777 460,603 460,691 459,303 460,191 455,966 3 Demand deposits adjusted2 95,350 96,806 97,904 94,807 100,689 101,846 101,233 100,816 99,201 4 Time deposits in accounts of $100,000 or more 181,369 178,763 177,949 180,114 180,499 182,700 181,142 179,526 179,802 5 Negotiable CDs 131,432 129,090 128,248 130,026 130,947 132,644 131,317 129,626 129,768 6 Other time deposits 49,937 49,672 49,701 50,088 49,552 50,056 49,825 49,900 50,034 7 Loans sold outright to affiliates3 2,718 2,686 2,666 2,734 2,770 2,676 2,665 2,688 2,745 8 Commercial and industrial 1,989 1,999 1,956 2,037 2,035 2,005 2,013 2,050 2,102 9 Other 729 686 710 696 735 671 652 637 643 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 533,141 531,902 533,039 529,414 540,748 540,280 538,052 538,780 535,408 11 Total loans (gross) adjusted1 425,300 424,436 425,821 423,694 433,325 433,322 431,970 432,938 428,737 12 Demand deposits adjusted2 88,292 89,875 90,859 87,894 93,355 94,733 94,432 93,880 92,108 13 Time deposits in accounts of $100,000 or more 171,902 169,258 168,428 170,447 170,986 173,083 171,554 169,929 170,327 14 Negotiable CDs 125,011 122,674 121,803 123,478 124,441 126,068 124,753 123,059 123,300 15 Other time deposits 46,890 46,584 46,624 46,969 46,545 47,015 46,801 46,870 47,027 16 Loans sold outright to affiliates3 2,643 2,611 2,590 2,649 2,687 2,592 2,581 2,605 2,662 17 Commercial and industrial 1,930 1,942 1,899 1,972 1,972 1,940 1,948 1,985 2,036 18 Other 714 669 691 676 715 652 633 620 626 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted1,4 131,246 131,050 131,150 129,574 135,442 132,844 133,492 135,191 130,246 20 Total loans (gross) adjusted1 108,566 108,259 108,364 106,873 112,568 109,878 110,616 112,428 107,396 21 Demand deposits adjusted2 22,851 26,127 25,944 25,140 25,520 28,324 29,344 28,828 27,598 22 Time deposits in accounts of $100,000 or more 42,085 41,431 41,617 41,992 42,739 43,387 43,243 43,084 43,360 23 Negotiable CDs 31,292 30,767 30,923 31,170 31,853 32,406 32,408 32,042 32,232 24 Other time deposits 10,793 10,664 10,694 10,822 10,887 10,981 10,834 11,042 11,127 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, nonbanks. 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 Nonfinancial Statistics • November 1981 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures Account Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30p Oct. IP Oct. 14 p Oct. 21 p Oct. 28p 1 Cash and due from depository institutions 23,233 21,232 24,826 23,488 29,713 7,412 6,822 6,913 7,062 2 Total loans and securities 61,829 62,136 63,443 65,694 66,139 63,242 62,809 61,551 62,900 3 U.S. Treasury securities 1,760 1,782 1,897 1,951 1,815 1,605 1,572 1,540 1,544 4 Other securities 1,005 1,003 1,028 1,020 1,015 1,017 1,026 1,022 1,033 5 Federal funds sold1 4,192 3,436 3,631 5,033 3,941 3,636 4,284 4,009 4,520 6 To commercial banks in U.S 3,823 3,164 3,430 4.888 3,783 3,311 4,141 3,896 4,342 7 To others 369 272 201 146 158 325 143 114 179 8 Other loans, gross 54,871 55,916 56,887 57,691 59,368 56,984 55,928 54,979 55,802 9 Commercial and industrial 27,460 28,211 28,506 28,607 29,687 28,661 28,087 27,553 27,500 10 Bankers acceptances and commercial paper 4,035 3,975 3,949 3,805 4,016 3,971 3,954 3,948 4,001 11 All other 23,426 24,236 24,557 24,802 25,671 24,690 24,133 23,605 23,499 12 U.S. addressees 13,850 14,436 14,764 14,793 15,575 14,663 14,145 13,769 13,725 13 Non-U.S. addressees 9,575 9,800 9,792 10,009 10.097 10.026 9,988 9,836 9,774 14 To financial institutions 19,370 19,627 20,037 20,657 20,818 19,760 19,540 19,407 19,998 15 Commercial banks in U.S 11,253 11,460 11,936 12,369 12,439 12,182 12,206 12,246 12,709 16 Banks in foreign countries 7,766 7,813 7,756 7,950 8,034 7,219 7,015 6,859 6,990 17 Nonbank financial institutions 351 354 345 337 345 359 320 303 299 18 For purchasing and carrying securities .. 588 613 756 631 928 913 693 542 707 19 All other 7,452 7,464 7,589 7,796 7,934 7,650 7,608 7,476 7,597 20 Other assets (claims on nonrelated parties) 10,632 10,472 10,943 10,980 11,101 10,683 10,850 11,121 10,986 21 Net due from related institutions 9,252 9,218 9,520 9,941 9,756 9,768 10,159 9,924 10,192 22 Total assets 104,946 103,058 108,731 110.103 116,709 91,105 90,642 89,510 91,141 23 Deposits or credit balances2 41,550 40,308 44,532 42,683 47,293 25,821 25,635 24,898 25,501 24 Credit balances 2,330 2,025 2,688 2,016 2,380 504 340 322 541 25 Demand deposits 17,432 16,633 19,695 17,550 21,348 2,383 2,569 2,463 2,322 26 Individuals, partnerships, and corporations 922 945 931 813 1,157 887 909 912 883 27 Other 16,510 15,689 18,763 16,737 20,190 1,496 1,660 1,551 1,439 28 Total time and savings 21,788 21,650 22,150 23,117 23,565 22,935 22,726 22,113 22,638 29 Individuals, partnerships, and corporations 18,125 18,105 18,576 19,526 19,757 19,212 19,070 17,609 18,318 30 Other 3,663 3,544 3,574 3,591 3,808 3,722 3,655 4,504 4,320 31 Borrowings3 29,914 30,904 31,139 31,946 32,393 31,588 31,531 31,816 31,896 32 Federal funds purchased4 4,054 4,558 5,596 5,089 5,268 5,013 4,800 4,700 4,871 33 From commercial banks in U.S 3,287 3,746 4,742 4,012 4,416 4,293 4,008 3,788 3,918 34 From others 767 813 854 1,077 852 720 792 911 953 35 Other liabilities for borrowed money ... 25,859 26,345 25,543 26,856 27,125 26,575 26,730 27,116 27,025 36 To commercial banks in U.S 21,687 22,358 21,653 22.447 22,764 22,442 22,741 23,065 22,996 37 To others 4,172 3,987 3,890 4,409 4,361 4,134 3,990 4,050 4,029 38 Other liabilities to nonrelated parties 10,792 10,645 11,098 11,068 11,263 10,874 11,205 11,208 11,137 39 Net due to related institutions 22,691 21,200 21,963 24,406 25,759 22,822 22,271 21,589 22,607 40 Total liabilities 104,946 103,058 108.731 110,103 116,709 91,105 90,642 89,510 91,141 MEMO 41 Total loans (gross) and securities adjusted' 46,753 47,512 48,077 48,438 49,916 47,748 46,462 45,409 45,849 42 Total loans (gross) adjusted5 43,987 44,728 45.152 45,467 47,086 45,126 43,865 42,847 43,272 1. Includes securities purchased under agreements to resell. 4. Includes securities sold under agreements to repurchase. 2. Balances due to other than directly related institutions. 5. Excludes loans and federal funds transactions with commercial banks in U.S. 3. Borrowings from other than directly related institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Weekly Reporting Banks A23 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during IIInnnddduuussstttrrryyy ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1981 1981 1981 June 24 June 29 Aug. 26 Sept. 30 Oct. 28p Q2 Q3 Aug. Sept. Oct.P 1 Durable goods manufacturing 25,274 25,370 25,629 26,100 25,914 620 826 259 471 -186 2 Nondurable goods manufacturing 20,618 20,175 22,478 23,400 22,062 1,217 2,782 2,303 922 -1,338 3 Food, liquor, and tobacco 4,404 4,095 4,392 4,433 4,312 -176 28 297 40 -121 4 Textiles, apparel, and leather 4,920 4,994 5,068 5,076 4,863 569 156 74 8 -214 5 Petroleum refining 3,412 3,546 3,587 3,956 3,719 430 544 40 370 -238 6 Chemicals and rubber 4,049 3,791 5,500 5,751 5,056 211 1,702 1,709 251 -695 7 Other nondurable goods 3,832 3,749 3,931 4,184 4,113 182 351 182 253 -71 8 Mining (including crude petroleum and natural gas) 18,194 19,658 20,019 21,288 21,729 2,444 3,093 361 1,269 441 9 Trade 26,107 26,462 26,406 26,994 27,514 490 887 -56 588 520 10 Commodity dealers 1,499 1,601 1,659 1,657 1,666 -451 158 58 -2 8 11 Other wholesale 12,087 12,405 12,377 12,617 12,634 212 529 -28 240 17 12 Retail 12,520 12,456 12,370 12,720 13,215 728 200 -86 351 495 13 Transportation, communication, and other public utilities 20,824 21,027 21,418 21,865 21.741 851 1,041 391 448 -124 14 Transportation 8,196 8,251 8,283 8,468 8,433 89 272 32 185 -35 15 Communication 3,542 3,545 3,580 3,532 3,574 381 -10 35 -48 42 16 Other public utilities 9,086 9,231 9,555 9,865 9,735 381 779 324 310 -130 17 Construction 6,984 7,108 7,132 7,252 7,261 758 268 24 120 8 18 Services 24,546 24,521 24,774 25,314 25,340 934 768 254 539 26 19 All other2 15,177 15,444 15,562 15,864 15,950 -4 687 118 302 85 20 Total domestic loans 157,724 159,765 163,418 168,078 167,510 7,311 10,354 3,653 4,659 -567 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 83,402 84,401 86,147 86,412 84,630 4,104 3,010 1,746 265 -1,783 1. Adjustment bank amounts represent accumulated adjustments originally made NOTE. New series. The 134 large weekly reporting commercial banks with doto offset the cumulative effects of mergers. These adjustment amounts should be mestic assets of $1 billion or more as of Dec. 31, 1977, are included in this series. added to outstanding data for any date in the year to establish comparability with The revised series is on a last-Wednesday-of-the-month basis. Partly estimated any date in the subsequent year. Changes shown have been adjusted for these historical data are available from the Banking Section, Division of Research and amounts. Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 2. Includes commercial and industrial loans at a few banks with assets of $1 20551. billion or more that do not classify their loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A24 Domestic NonfinancialS tatistics • November 1981 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 19792 1980 1981 11997755 11997766 11997777 11997788 DDeecc.. DDeecc.. DDeecc.. DDeecc.. 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 11997755 11997766 11997777 11997788 DDeecc.. DDeecc.. DDeecc.. DDeecc.. 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 1. Figures include cash items in process of collection. Estimates of gross deposits 4. After the end of 1978 the large weekly reporting bank panel was changed to are based on reports supplied by a sample of commercial banks. Types of depositors 170 large commercial banks, each of which had total assets in domestic offices in each category are described in the June 1971 BULLETIN, p. 466. exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the 2. Beginning with the March 1979 survey, the demand deposit ownership survey May 1978 BULLETIN. Beginning in March 1979. demand deposit ownership estisample 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 A25 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1981 Instrument 1977 1978 1979' 1980 Dec. Dec. Dec. Dec. Mar. Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted) 1 All issuers 65,051 83,438 112,087' 123,597r 130,529' 132,117r 139,228 r 145,737 ' 151,013r 157,121' 165,379 Financial companies2 Dealer-placed paper2 2 Total 8,796 12,181 17,161r 19,236r 21,880' 23,497' 24,144' 25,933' 26,006' 27,813' 30,213 3 Bank-related 2,132 3,521 2,874 3,561 4,163 4,437 4,800 4,750 5,267 6,037 66,,116611 Directly placed paper4 4 Total 40,574 51,647 64,748 67,888 69,461 69,537 71.842 74.952 79,571 80,769 83,311 5 Bank-related 7,102 12,314 17,598 22,382 21,604 22,858 23,880 24,107 26,104 25,153 26,426 6 Nonfinancial companies5 15,681 19,610 30,178f 36,473' 39,188r 39,083r 43,242r 44,852' 45,436' 48,539r 51,855 Bankers dollar acceptances (not seasonally adjusted) 7 Total 25,450 33,700 45,321 54,744 60,089 62,320 60,551 63,427 63,721 64,577 66,281 Holder 8 Accepting banks 10,434 8,579 9,865 10,564 10,117 10,781 10,132 11,595 10,505 9,959 10,064 9 Own bills 8,915 7,653 8.327 8,963 8,735 9,626 9,049 10,207 9,437 9,214 9,083 10 Bills bought 1,519 927 1,538 1,601 1,382 1,155 1,082 1,389 1,068 745 982 Federal Reserve Banks 11 Own account 954 1 704 776 298 0 0 0 453 0 0 12 Foreign correspondents 362 664 1,382 1,791 1.372 1.383 1,255 1,272 1,459 1,451 1,243 13 Others 13,700 24,456 33,370 41,614 48.303 50,156 49.164 50,560 51,303 53,167 54,974 Basis 14 Imports into United States 6,378 8,574 10,270 11,776 13.292 13,634 12,775 12,996 13,059 13,313 14,034 15 Exports from United States 5,863 7,586 9,640 12,712 13,451 13,368 13.057 13,388 13,296 13,774 14,705 16 All other 13,209 17,540 25,411 30,257 33,347 35,319 34,768 37,043 37,365 37,490 37,542 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 comfactoring, finance leasing, ana other business lending; insurance underwriting; and munications, construction, manufacturing, mining, wholesale and retail trade, other investment activities. transportation, and services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A26 Domestic Nonfinancial Statistics • November 1981 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Rate Month Average Average rate rate 1981—Apr. 2 17.00 1981—July 8 . 20.50 1980—July 11.48 1981—Apr. 17.15 24 17.50 Sept. 15 20.00 Aug 11.12 May. 19.61 30 18.00 22. 19.50 Sept 12.23 June 20.03 May 4. 19.00 Oct. 5. 19.00 Oct 13.79 July . 20.39 11. 19.50 13. 18.00 Nov 16.06 Aug. 20.50 19. 20.00 Dec 20.35 Sept. 20.08 22. 20.50 1981—Jan 20.16 Oct.. 18.45 June 3 20.00 Feb 19.43 Mar 18.05 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 3-8, 1981 Size of loan (in thousands of dollars) All sizes 1,000 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) $24,597,283 $826,223 $641,885 $674,174 $2,112,392 $769,926 $19,572,683 2 Number of loans 165,324 118,581 20,112 10,549 11,494 1,212 3,376 3 Weighted-average maturity (months) 1.6 3.1 3.5 3.1 3.4 3.2 1.2 4 Weighted-average interest rate (percent per annum) . 21.11 20.76 21.18 21.36 21.37 21.85 21.06 5 Interquartile range1 20.37-22.00 18.81-22.93 18.81-23.16 19.56-23.25 19.99-22.86 20.84-22.85 20.37-21.76 Percentage of amount of loans 6 With floating rate 3344..55 25.2 39.0 48.0 59.3 71.8 30.1 7 Made under commitment 50.8 24.7 26.4 38.7 49.1 69.3 52.6 8 With no stated maturity 18.5 8.8 10.9 23.1 21.7 32.6 18.2 LONG-TERM COMMERCIAL AND 9 Amount of loans (thousands of dollars) $3,889,453 $344,172 $313,708 $189,351 $3,042,222 10 Number of loans 22,151 19,603 1,841 282 425 11 Weighted-average maturity (months) 57.6 26.9 39.2 48.7 63.5 12 Weighted-average interest rate (percent per annum) . 20.62 19.77 20.70 21.45 20.65 13 Interquartile range1 20.50-21.50 17.50-21.94 19.56-22.25 20.50-23.52 20.50-21.11 Percentage of amount of loans 14 With floating rate 79.2 31.3 68.8 80.3 85.7 15 Made under commitment 75.1 23.4 44.8 77.9 83.9 CONSTRUCTION AND LAND DEVELOPMENT LOANS 16 Amount of loans (thousands of dollars) $1,253,985 $94,295 $160,298 $105,325 $508,226 $385,840 17 Number of loans 18,932 11,067 4,048 1,454 2,110 253 18 Weighted-average maturity (months) 8.7 8.6 2.1 6.1 6.5 15.7 19 Weighted-average interest rate (percent per annum) . 20.26 20.34 20.03 19.80 19.23 21.81 20 Interquartile range1 18.00-22.50 17.81-23.11 18.39-22.06 18.00-22.39 16.50-21.19 21.27-22.71 Percentage of amount of loans 21 With floating rate 44.4 41.1 14.7 31.6 25.9 85.5 22 Secured by real estate 93.4 96.7 87.6 94.9 96.7 90.2 23 Made under commitment 46.6 54.6 46.1 36.9 25.3 75.5 24 With no stated maturity 13.3 9.4 3.0 57.8 2.7 20.2 Type of construction 25 1- to 4-family 22.3 78.6 56.6 26.1 6.6 14.0 26 Multifamily 24.0 3.4 1.5 55.6 35.3 15.0 27 Nonresidential 53.7 18.0 41.9 18.3 58.2 71.0 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) $918,222 $145,418 $143,283 $118,786 $143,410 $78,547 $288,779 29 Number of loans 56,842 40,267 9,823 3,583 2,209 591 369 30 Weighted-average maturity (months) 5.0 5.6 5.2 5.0 6.2 5.2 3.8 31 Weighted-average interest rate (percent per annum) . 19.57 18.82 19.06 18.93 19.60 19.74 20.41 32 Interquartile range1 18.11-20.62 17.72-19.82 17.96-20.23 17.72-19.90 18.68-20.40 17.98-21.50 19.00-22.13 By purpose of loan 33 Feeder livestock 1199..6633 1199..4433 19.64 19.33 19.64 18.47 19.86 34 Other livestock 19.88 19.45 19.55 18.47 18.77 17.80 (2) 35 Other current operating expenses 19.48 18.68 18.86 19.14 19.62 20.50 20.47 36 Farm machinery and equipment 18.87 18.46 18.93 18.85 18.82 (2) (2) 37 Other 20.11 19.00 19.62 17.91 19.97 21.12 21.98 1. Interest rate range that covers the middle 50 percent of the total dollar amount NOTE. For more detail, see the Board's E.2(111) statistical release, of loans made. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Securities Markets A27 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 IInnssttrruummeenntt 11997788 11997799 11998800 July Aug. Sept. Oct. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 MONEY MARKET RATES 1 Federal funds1'2 7.93 11.19 13.36 19.04 17.82 15.87 15.08 15.00 15.46 14.93 15.32 14.87 Commercial paper3-4 2 1-month 7.76 10.86 12.76 17.70 17.58 15.95 14.80 15.36 14.74 14.55 14.85 14.56 3 3-month 7.94 10.97 12.66 17.00 17.23 16.09 14.85 15.75 14.95 14.54 14.77 14.60 4 6-month 7.99 10.91 12.29 16.09 16.62 15.93 14.72 15.83 14.82 14.42 14.62 14.47 Finance paper, directly placed3-4 5 1-month 7.73 10.78 12.44 17.29 17.37 15.68 14.63 14.96 14.52 14.37 14.78 14.45 6 3-month 7.80 10.47 11.49 15.21 15.88 15.24 14.04 14.56 14.34 13.73 13.94 13.84 7 6-month 7.78 10.25 11.28 14.47 15.32 15.01 13.96 14.50 14.31 13.73 13.79 13.74 Bankers acceptances4-5 8 3-month 8.11 11.04 12.78 17.10 17.22 16.11 14.78 15.79 14.86 14.49 14.75 14.53 9 6-month n.a. n.a. n.a. 16.15 16.56 15.80 14.62 15.70 14.71 14.38 14.52 14.39 Certificates of deposit, secondary market6 10 1-month 7.88 11.03 12.91 17.98 17.91 16.31 14.97 15.43 15.02 14.76 14.99 14.76 11 3-month 8.22 11.22 13.07 17.76 17.96 16.84 15.39 16.48 15.50 15.03 15.28 15.14 12 6-month 8.61 11.44 12.99 17.40 17.98 17.19 15.71 16.95 15.81 15.36 15.59 15.49 13 Eurodollar deposits, 3-month2 8.78 11.96 14.00 18.49 18.79 17.80 16.34 17.61 17.03 15.96 16.16 16.35 U.S. Treasury bills4 Secondary market7 14 3-month 7.19 10.07 11.43 14.95 15.51 14.70 13.54 14.37 13.81 13.41 13.37 13.14 15 6-month 7.58 10.06 11.37 14.74 15.52 14.92 13.82 14.72 13.98 13.64 13.82 13.43 16 1-year 7.74 9.75 10.89 13.91 14.70 14.53 13.62 14.54 13.71 13.42 13.60 13.36 Auction average8 17 3-month 7.221 10.041 11.506 14.699 15.612 14.951 13.873 14.669 14.206 13.526 13.613 13.352 18 6-month 7.572 10.017 11.374 14.402 15.548 15.057 14.013 14.932 14.218 13.500 13.795 13.619 1199 77..667788 99..881177 1100..774488 1133..773355 1144..554422 1155..005566 1144..558800 1144..558800 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 8.34 10.67 12.05 15.72 16.72 16.52 15.38 16.52 15.53 15.14 15.34 15.02 21 2-year 8.34 10.12 11.77 15.35 16.28 16.46 15.54 16.55 15.69 15.34 15.50 15.24 V 15.65 15.55 23 3-year 8.29 9.71 11.55 15.15 16.00 16.22 15.50 16.36 15.59 15.21 15.50 15.34 24 5-year 8.32 9.52 11.48 14.79 15.56 15.93 15.41 16.11 15.39 15.14 15.45 15.36 25 7-year 8.36 9.48 11.43 14.49 15.22 15.65 15.33 15.95 15.31 15.08 15.37 15.33 26 10-year 8.41 9.44 11.46 14.28 14.94 15.32 15.15 15.68 15.02 14.88 15.21 15.25 27 20-year 8.48 9.33 11.39 13.92 14.52 15.07 15.13 15.55 14.98 14.92 15.18 15.27 28 30-year 8.49 9.29 11.30 13.59 14.17 14.67 14.68 15.07 14.49 14.45 14.77 14.87 Composite12 29 Over 10 years (long-term) 7.89 8.74 10.81 13.05 13.61 14.14 14.13 14.59 13.99 13.91 14.17 14.27 State and local notes and bonds Moody's series13 30 Aaa 5.52 5.92 7.85 10.21 11.10 11.55 12.05 11.80 11.80 11.80 12.00 12.60 31 Baa 6.27 6.73 9.01 11.55 12.78 13.60 13.34 13.50 13.40 13.25 13.20 13.50 32 Bond Buyer series14 6.03 6.52 8.59 11.14 12.26 12.92 12.83 12.93 12.73 12.53 12.99 12.99 Corporate bonds Seasoned issues15 33 All industries 9.07 10.12 12.75 15.18 15.60 16.16 16.20 16.57 16.22 15.98 16.15 16.31 34 Aaa 8.73 9.63 11.94 14.38 14.89 15.49 15.40 15.85 15.40 15.18 15.36 15.51 35 Aa 8.92 9.94 12.50 14.79 15.42 15.95 15.82 16.47 15.93 15.45 15.69 15.95 36 A 9.12 10.20 12.89 15.36 15.76 16.36 16.47 16.70 16.46 16.30 16.47 16.60 37 Baa 9.49 10.69 13.67 16.17 16.34 16.92 17.11 17.25r 17.09 16.99 17.09 17.16 Aaa utility bonds16 38 8.96 10.03 12.74 16.30 17.21 16.94 16.94 39 Recently offered issues 8.97 10.02 12.70 15.73 16.82 17.33 17.24 17.72r 16.96 17.21 17.38 17.32 MEMO: Dividend/price ratio17 40 Preferred stocks 8.25 9.07 10.57 12.43 12.63 13.01 13.09 13.06 13.25 12.92 13.12 13.06 41 Common stocks 5.28 5.46 5.25 5.18 5.16 5.69 5.65 5.81 5.57 5.64 5.66 5.72 1. Weekly and monthly figures are averages of all calendar days, where the rate 11. Each weekly figure is calculated on a biweekly basis and is the average of for a weekend or holiday is taken to be the rate prevailing on the preceding business five business days ending on the Monday following the calendar week. The biweekly day. The daily rate is the average of the rates on a given day weighted by the rate is used to determine the maximum interest rate payable in the following twovolume of transactions at these rates. week period on small saver certificates. (See table 1.16.) 2. Weekly figures are statement week averages—that is, averages for the week 12. Unweighted averages of yields (to maturity or call) for all outstanding notes ending Wednesday. and bonds neither due nor callable in less than 10 years, including several very low 3. Unweighted average of offering rates quoted by at least five dealers (in the yielding "flower" bonds. case of commercial paper), or finance companies (in the case of finance paper). 13. General obligations only, based on figures for Thursday, from Moody's Before November 1979, maturities for data shown are 30-59 days, 90-119 days, Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150- 14. General obligations only, with 20 years to maturity, issued by 20 state and 179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 4. Yields are quoted on a bank-discount basis, rather than an investment yield 15. Daily figures from Moody's investors Service. Based on yields to maturity basis (which would give a higher figure). on selected long-term bonds. 5. Dealer closing offered rates for top-rated banks. Most representative rate 16. Compilation of the Federal Reserve. Issues included are long-term (20 years (which may be, but need not be, the average of the rates quoted by the dealers). or more). New-issue yields are based on quotations on date of offering; those on 6. Unweighted average of offered rates quoted by at least five dealers early in recently offered issues (included only for first 4 weeks after termination of underthe day. writer price restrictions), on Friday close-of-business quotations. 7. Unweighted average of closing bid rates quoted by at least five dealers. 17. Standard and Poor's corporate series. Preferred stock ratio based on a sample 8. Rates are recorded in the week in which bills are issued. of ten issues: four public utilities, four industrials, one financial, and one trans- 9. Yields are based on closing bid prices quoted by at least five dealers. portation. Common stock ratios on the 500 stocks in the price index. 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
A28 Domestic Nonfinancial Statistics • November 1981 1.36 STOCK MARKET Selected Statistics 1981 IInnddiiccaattoorr 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. Oct. 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 76.46 77.60 76.28 76.80 74.98 75.24 68.37 69.40 2 Industrial 58.30 61.82 78.64 89.39 90.57 88.78 88.63 86.64 86.72 78.07 78.94 3 Transportation 43.25 45.20 60.52 77.09 80.63 76.78 76.71 74.42 73.27 63.67 65.65 4 Utility 39.23 36.46 37.35 37.78 38.34 38.27 39.23 38.90 40.22 38.17 38.87 5 Finance 56.74 58.65 64.28 72.82 74.59 74.65 79.79 74.97 73.76 69.38 75.58 6 Standard & Poor's Corporation (194W3 = 10)1 96.11 107.94 118.71 133.19 134.43 131.73 132.28 129.13 129.63 118.27 119.84 7 American Stock Exchange (Aug. 31, 1973 = 100) 144.56 186.56 300.94 347.07 363.09 365.52 369.64 364.33 364.60 313.60 308.81 Volume of trading (thousands of shares) 8 New York Stock Exchange 28,591 32,233 44,867 53,387 54,124 45,272 50,517 43,930 44,489 46,042 46,233 9 American Stock Exchange 3,622 4,182 6,377 5,682 6,339 5,650 6,096 4,374 5,137 5,556 4,233 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 11,035 11,619 14,721 14,243 14,869 14,951 15,126 15,134 14,545 13,973 11 Margin stock3 10,830 11,450 14,500 14,020 14,630 14,700 14,870 14,870 14,270 13,710 12 Convertible bonds 205 167 219 222 238 251 254 263 274 263 13 Subscription issues 1 2 2 1 1 1 2 1 1 n a. Free credit balances at brokers4 14 Margin-account 835 1,105 2,105 2,340 2,270 2,345 2,350 2,670 2,645 2,940 15 Cash-account 2,510 4,060 6,070 6,530 6,440 6,150 6,650 6,470 6,640 6,555 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40 33.0 16.0 14.0 16.0 20.8 21.3 25.0 25.0 38.5 47.0 18 40-49 28.0 29.0 30.0 28.0 26.8 25.3 29.0 29.0 24.0 22.0 19 50-59 18.0 27.0 25.0 26.0 23.7 25.3 21.0 22.0 15.0 13.0 n a. 20 60-69 10.0 14.0 14.0 14.0 12.6 12.7 11.0 11.0 10.0 8.0 21 70-79 6.0 8.0 9.0 9.0 8.1 8.0 7.0 7.0 6.0 5.0 \ 22 80 or more 5.0 7.0 8.0 8.0 8.0 8.0 7.0 6.0 6.0 5.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)* 13,092 16,150 21,690 22,548 22,748 23,457 23,700 24,460 24,760 25,234 Distribution by equity status (percent) 24 Net credit status 41.3 44.2 47.8 50.9 49.3 50.2 53.2 53.8 53.5 55.0 n a. Debt status, equity of 1 25 60 percent or more 45.1 47.0 44.4 41.5 41.7 41.0 38.4 37.9 37.0 33.0 26 Less than 60 percent 13.6 8.8 7.7 7.6 9.0 8.8 8.4 8.3 9.5 12.0 Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 5. Each customer's equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 6. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers 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 proequity instruments and secured at least in part bv 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 A29 1.37 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1980 1981 Account 1978 1979 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.'' Savings and loan associations 1 Assets 523,542 578,962 629,829 631,228 634,405 636,859 639,827 644,603 646,704 648,793 651,986 654,089 2 Mortgages 432,808 475,688 502,812 504,068 505,309 507,152 509,525 511,754 514,803 516,527 517,701 518,132 3 Cash and investment securities1 44,884 46,341 57,572 57,460 58,401 58,461 56,886 59,045 57,616 57,453 58,558 58,938 4 Other 45,850 56,933 69,445 69,700 70,695 71,246 72,416 73,804 74,285 74,813 75,727 77,019 5 Liabilities and net worth 523,542 578,962 629,829 631,228 634,405 636,859 639,827 644,603 646,704 648,793 651,986 654,089 6 Savings capital 430,953 470,004 510,959 512,946 515,250 518,990 516,071 517,628 517,632 514.103 512,745 514,800 7 Borrowed money 42,907 55,232 64,491 62,938 62,270 64,197 67,704 70,025 74,756 79,554 83,287 87,148 8 FHLBB 31,990 40,441 47,045 46,629 46,360 47,310 49,607 51,064 53,836 57,188 60.025 61,816 9 Other 10,917 14,791 16,309 15,910 16,887 18,097 18,097 18,961 20,920 22,366 23,262 25,332 10 Loans in process 10,721 9,582 8,120 7,833 7,756 7,840 7,840 7,997 8,008 7,766 7,382 7.016 11 Other 9,904 11,506 12,227 14,104 16,071 13,271 14,946 17,089 14,756 16,365 18,067 15,019 12 Net worth2 29,057 32,638 33,319 33,120 32,981 32,645 32,266 31,864 31,552 31.005 30,505 30,106 13 MEMO: Mortgage loan commitments outstanding3 18,911 16,007 16,102 15,972 16,279 17,374 18,552 18,740 18,020 17,224 16,681 16,012 Mutual savings banks4 14 Assets 158,174 163,405 171,564 171,891 172,349 173,232 172,837 173,776 174,387 174,637 175,072 Loans 15 Mortgage 95,157 98,908 99,865 99,816 99,739 99,719 99.798 99,790 99,993 100,072 100,157 16 Other 7,195 9,253 11,733 12,199 12,598 13,248 12,756 13,375 14,403 14,378 14,597 Securities 17 U.S. government5 4,959 7,658 8,949 9,000 9,032 9,203 9,262 9,296 9,230 9,363 9,375 18 State and local government 3,333 2,930 2,390 2,378 2,376 2,359 2,314 2,328 2,337 2,297 2,335 19 Corporate and other6 39,732 37,086 39,282 39,256 39,223 39,236 39,247 39,111 38,418 38,425 38,253 20 Cash 3,665 3,156 4,334 4,133 4,205 4.238 4,172 4,513 4,473 4,654 4,814 21 Other assets 4,131 4,412 5,011 5,107 5,177 5,231 5,288 5,364 5,534 5,449 5,541 n a. 22 Liabilities 158,174 163,405 171,564 171,891 172,349 173,232 172,837 173,776 174,387 174,637 175,072 23 Deposits 142,701 146,006 153,501 153,143 153,332 154,805 153.692 153,891 154,926 153,797 153,429 24 Regular7 141,170 144,070 151,416 151,051 151,346 152,630 151,429 151,658 152,603 151,450 151,075 25 Ordinary savings 71,816 61,123 53,971 52,737 52,035 53,049 52,331 51,212 51,594 50,647 49,149 26 Time and other 69,354 82,947 97,445 98,314 99,311 99,581 99,098 100,447 101,009 100,803 101,926 27 Other 1,531 1,936 2,086 2,092 1,986 2,174 2,264 2,232 2,323 2,347 2,354 28 Other liabilities 4,565 5,873 6,695 7,426 7,753 7,265 8,103 8,922 8,634 10,179 11,119 29 General reserve accounts 10,907 11,525 11,368 12,957 13,412 11,163 11,042 10,923 10,827 10.661 10,524 30 MEMO: Mortgage loan commitments outstanding8 4,400 3,182 1,476 1,316 1,331 1,379 1,614 1,709 1,577 1,401 1,333 Life insurance companies 31 Assets 389,924 432,282 479,210 482,009 485,033 490,149 493,185 497,276 500,316 503,994 506,585 Securities 32 Government 20,009 0,338 21,871 22,246 22,669 22,775 22,603 22,948 23,415 23,691 23,949 33 United States9 4,822 4,888 5,838 6,429 6,774 6,807 6,502 6,787 7,119 7,359 7,544 34 State and local 6,402 6,428 6,701 6,571 6,145 6,199 6,809 6,815 6,876 6,865 6,904 35 Foreign10 8,785 9,022 9,332 9,246 9,250 9,269 9,292 9,346 9,420 9,467 9,501 36 Business 198,105 222,332 238,059 240,959 241,675 243,996 245,841 247,437 248,737 250,186 250,371 n a. 37 Bonds 162,587 178,371 190,693 194,777 195,251 196,514 198,397 199,818 201,402 203,016 204,501 38 Stocks 35,518 39,757 47,366 46,182 46,424 47,482 47,444 47,619 47,335 41,170 45,870 39 Mortgages 106,167 118,421 131,080 131,710 132,567 133,230 133,896 134,492 135,318 135,928 136,516 40 Real estate 11,764 13,007 15,033 15,657 15,869 16,244 16,464 16,738 16,966 17.429 17,626 41 Policy loans 30,146 34,825 41,411 41,988 42,574 43,231 43,772 44,292 44,970 45,591 46,252 42 Other assets 23,733 27,563 31,702 29,449 29,679 30,673 30,609 31,369 30,910 31,169 31,971 Credit unions 43 Total assets/liabilities and capital 62,348 65,854 71,709 70,754 71,446 73,214 72,783 73,565 74,041 73,616 73,240 73,719 44 Federal 34,760 35,934 39,801 39,142 39,636 40,624 40,207 40,648 40,948 40,510 40,233 40,513 45 State 27,588 29,920 31,908 31,612 31,810 32,590 32,576 32,917 33,093 33,106 33,007 33,206 46 Loans outstanding 50,269 53,125 47,774 47,309 47,451 47,815 47,994 48,499 49,064 49,507 49,976 50,169 47 Federal 27,687 28,698 25,627 25,272 25,376 25,618 25,707 26,038 26,422 26,661 26,974 27,137 48 State 22,582 24,426 22,147 22,037 22,075 22,197 22,287 22,461 22,642 22,846 23,002 23,032 49 Savings 53,517 56,232 64,399 63,874 64,357 65,744 65,495 65,988 66,472 65,854 65,138 65,686 50 Federal (shares) 29,802 35,530 36,348 35,915 36,236 36,898 36,684 36,967 37,260 36,819 36,373 36,584 51 State (shares and deposits) 23,715 25,702 28,051 27,959 28,121 28,846 28,811 29,021 29,212 29,035 28,765 29,102 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A30 Domestic NonfinancialS tatistics • November 1981 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 11997799 11998800rr 11998811 1980 1981 1981 HI H2 HI July Aug. Sept. U.S. budget 1 Receipts' 465,940 520,056 602,612 270,864 262,152 318,899 48,142 47,976 60,594 2 Outlays1-2 493,635 579,603 660,544 289,905 310,972 334,710 58,486 53,095 53,698 3 Surplus, or deficit( -) -27,694 -59,547 -57,932 -19,041 -48,821 -15,811 -10,343 -5,119 6,897 4 Trust funds 18,335 8,791 7,168 4,383 -2,551 5,797 -3,506 310 9,408 5 Federal funds3 -46,069 -67,752 -65,099 -23,418 -46,306 -21,608 -6,838 -5,429 -2,511 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -13,261 -14,549 -20,769 -7,735 -7,552 -11,046 -2,429 -616 -3,129 77 OOtthheerr44 793 303 -236 -522 376 -900 -348 -418 30 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -40,162 -73,792 -78,937 -27,298 -55,998 -27,757 -13,120 -6,153 3,798 Source or financing 9 Borrowing from the public 33,641 70,515 79,329 24,435 54,764 33,213 3,383 6,501 8,577 10 Cash and monetary assets (decrease, or increase (-)) -408 -355 -1,878 -3,482 -6,730 2,873 5,570 1,330 -13,731 11 Other6 6,929 3,632 1,485 6,345 7,964 -8,328 4,168 -1,678 1,356 MEMO: 12 Treasury operating balance (level, end of period) 24,176 20,990 18,670 14,092 12,305 16,389 11,318 5,714 18,670 13 Federal Reserve Banks 6,489 4,102 3,520 3,199 3,062 2,923 2,922 2,595 3,520 14 Tax and loan accounts 17,687 16,888 15,150 10,893 9,243 13,466 8,396 3,119 15,150 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 1982. 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 Inassets." 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 A31 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Fiscal SSoouurrccee oorr ttyyppee year year year 1980 1981 1981 1979 1980' 1981 HI H2 HI July Aug. Sept. RECEIPTS 1 All sources' 465,955 520,056 602,612 270,864 262,152 318,899 48,142 47,976 60,594 ?. Individual income taxes, net 217,841 244,069 285,551 119,988 131,962 142,889 24.439 21,615 30,882 3 Withheld 195,295 223,763 255,966 110.394 120,924 126.101 23,963 21,150 21,291 4 Presidential Election Campaign Fund... 36 39 41 34 4 36 4 1 0 5 Nonwithheld 56,215 63,746 76,844 49,707 14,592 59,907 2,228 1.227 10,155 6 Refunds' 33,705 43,479 47,299 40,147 3,559 43,155 1.756 813 564 Corporation income taxes 7 Gross receipts 71,448 72,380 73,733 43,434 28,579 44,048 2,721 2,397 10,040 8 Refunds 5,771 7,780 12,596 4,064 4,518 6,565 1,007 790 1,381 9 Social insurance taxes and contributions. net 141,591 160,747 186,426 86.597 77.262 102,911 15.206 18.190 14,516 10 Payroll employment taxes and contributions2 115,041 133,042 156,953 69,077 66,831 83.851 13,899 14,965 13,136 U Self-employment taxes and contributions3 5,034 5,723 6,041 5,535 188 6,240 -723 0 524 12 Unemployment insurance 15,387 15,336 16,129 8,690 6,742 9,205 1,379 2,561 193 13 Other net receipts4 6,130 6,646 7,304 3,294 3,502 3,615 652 664 663 14 Excise taxes 18,745 24,329 40,839 11,383 15.332 21,945 3,997 4,052 3,597 15 Customs deposits 7,439 7,174 8,083 3,443 3,717 3.926 777 776 771 16 Estate and gift taxes. 5,411 6,389 6,787 3,091 3,499 3,259 621 568 699 17 Miscellaneous receipts5 9,252 12,748 13,790 6.993 6,318 6,487 1.388 1,169 1500 OUTLAYS 18 All types1-6 493,635 579,603 660,544 289,905 310,972 334,710 58,486 53,095 53,698 19 National defense 117,681 135,880 159,699 69,132 72,457 80,005 14,692 13,523 14,022 20 International affairs 6,091 10,472 11,051 4,602 5,430 5,999 378 785 982 21 General science, space, and technology ... 5.041 5,999 6,422 3,150 3,205 3,314 515 490 347 22 Energy 6,856 6,623 10,642 3,126 3,997 5,677 914 929 1,018 23 Natural resources and environment 12,091 14,130 13,783 6.668 7,722 6.476 1,164 1,194 1,131 24 Agriculture 6,238 4,951 5,598 3,193 1,892 3,101 -86 536 -407 25 Commerce and housing credit 2,565 7,795 3,995 3,878 3,163 1,940 -52 292 -639 26 Transportation 17,459 20,840 23,312 9,582 11,547 11,991 1,771 1,925 1,881 27 Community and regional development.... 9,482 9,917 9.265 5,302 5,370 4,621 677 618 641 28 Education, training, employment, social services 29,685 31,399 30.563 16,686 15,221 15,928 2,400 2,647 1,954 29 Health 49,614 58,165 69,324 29,299 31,263 34,708 6,141 5,838 6,599 30 Income security'-6 160,159 192,133 225,599 94,605 107.912 113.490 19,637 18,857 19,094 31 Veterans benefits and services 19,928 21,167 22,937 9.758 11,731 10,531 2,995 789 2,011 32 Administration of justice 4,153 4,554 4,721 2,291 2,299 2,344 386 397 397 33 General government 4,153 4,641 4,730 2,422 2.432 2,692 242 581 266 34 General-purpose fiscal assistance 8.372 8,306 6,621 3,940 4,191 3.015 1,234 28 179 .35 Interest7 52,556 64,564 82,590 32,658 35,909 41,178 6,164 7,320 6,436 36 Undistributed offsetting receipts7-8 -18,489 -21,933 -30,306 -10,387 - 14,769 -12,432 -688 -3,652 -2,216 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 receipts. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. o. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re- Government" and the Budget of the U.S. Government, Fiscal Year 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A32 Domestic Financial Statistics • November 1981 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1979 1980 1981 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 812.2 833.8 852.2 870.4 884.4 914.3 936.7 970.9 977.4 2 Public debt securities 804.9 826.5 845.1 863.5 877.6 907.7 930.2 964.5 971.2 3 Held by public 626.4 638.8 658.0 677.1 682.7 710.0 737.7 773.7 771.3 4 Held by agencies 178.5 187.7 187.1 186.3 194.9 197.7 192.5 190.9 199.9 5 Agency securities 7.3 7.2 7.1 7.0 6.8 6.6 6.5 6.4 6.2 61 Held by public 5.9 5.8 5.6 5.5 5.3 5.1 5.0 4.9 4.7 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 806.0 827.6 846.2 864.5 878.7 908.7 931.2 965.5 972.2 9 Public debt securities 804.3 825.9 844.5 862.8 877.0 907.1 929.6 963.9 970.6 10 Other debt1 1.7 1.7 1.7 1.7 1.7 1.6 1.6 1.6 1.6 11 MEMO: Statutory debt limit 830.0 830.0 879.0 879.0 925.0 925.0 935.1 985.0 985.0 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 TTyyppee aanndd hhoollddeerr 11997777 11997788 11997799 11998800 June July Aug. Sept. Oct. 1 Total gross public debt 718.9 789.2 845.1 930.2 971.2 973.3 980.2 997.9 1,005.0 By type 2 Interest-bearing debt ... 715.2 782.4 844.0 928.9 969.9 972.1 978.9 996.5 999.5 3 Marketable 459.9 487.5 530.7 623.2 660.8 666.4 673.8 683.2 89.6 4 Bills 161.1 161.7 172.6 216.1 218.8 217.5 219.9 223.4 229.1 5 Notes 251.8 265.8 283.4 321.6 348.8 354.0 357.6 363.6 362.6 6 Bonds 47.0 60.0 74.7 85.4 93.2 94.9 96.3 96.2 97.9 7 Nonmarketable1 255.3 294.8 313.2 305.7 309.2 305.6 305.2 313.3 309.9 8 2.2 2.2 2.2 9 State and local government series 13.9 24.3 24.6 23.8 23.2 22.8 22.8 23.2 23.1 10 Foreign issues3 22.2 29.6 28.8 24.0 23.5 21.9 21.4 20.5 20.5 11 Government 21.0 28.0 23.6 17.6 17.1 16.3 15.7 15.5 15.5 12 Public 1.2 1.6 5.3 6.4 6.4 5.7 5.7 5.0 5.0 13 Savings bonds and notes 77.0 80.9 79.9 72.5 69.2 69.0 68.6 6 8.3 68.0 14 Government account series4 139.8 157.5 177.5 185.1 193.0 191.6 192.1 201.1 198.1 15 Non-interest-bearing debt 3.7 6.8 1.2 1.3 1.3 1.2 1.3 1.4 5.6 By holder5 16 U.S. government agencies and trust funds 154.8 170.0 187.1 192.5 199.9 198.6 199.0 17 Federal Reserve Banks 102.8 109.6 117.5 121.3 120.0 123.4 124.5 18 Private investors 461.3 508.6 540.5 616.4 651.2 651.3 656.7 19 Commercial banks 101.4 93.2 96.4 116.0 113.3 114.2 115.0 20 Mutual savings banks 5.9 5.0 4.7 5.4 5.7 5.6 5.5 21 Insurance companies 15.1 15.7 16.7 20.1 18.3 19.8 20.6 n .a. n a. 22 Other companies 20.5 19.6 22.9 25.7 38.7 37.8 38.0 23 State and local governments 55.2 64.4 69.9 78.8 83.0 76.0 86.2 Individuals 24 Savings bonds 76.7 80.7 79.9 72.5 69.2 69.0 68.7 25 Other securities 28.6 30.3 36.2 56.7 70.4 70.5 71.5 26 Foreign and international6 109.6 137.8 124.4 127.7 143.3 139.0r 137.0 27 Other miscellaneous investors7 49.7 58.9 90.1 106.9 111.4 109.4' 114.2 1. Includes (not shown separately): Securities issued to the Rural Electrification 5. Data for Federal Reserve Banks and U.S. government agencies and trust Administration, depository bonds, retirement plan bonds, and individual retire- funds are actual holdings; data for other groups are Treasury estimates. ment bonds. 6. Consists of investments of foreign balances and international accounts in the 2. These nonmarketable bonds', also known as Investment Series B Bonds, may United States. be exchanged (or converted) at the owner's option for l'fe percent, 5-year mar- 7. Includes savings and loan associations, nonprofit institutions, corporate penketable Treasury notes. Convertible bonds that have been so exchanged are re- sion trust funds, dealers and brokers, certain government deposit accounts, and moved from this category and recorded in the notes category (line 5). government sponsored agencies. 3. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners. NOTE. Gross public debt excludes guaranteed agency securities. 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 States (U.S. Treasury Department); data by holder from Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A33 1.42 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1981 1981 X no nf U M 11997799 11998800 11997799 11998800 July Aug. July Aug. All maturities 1 to 5 years 1 All holders 530,731 623,186 666,405 673,765 164,198 197,409 206,767 216,771 2 U.S. government agencies and trust funds 11,047 9,564 9,225 9,015 2,555 1,990 1,166 1,368 3 Federal Reserve Banks 117,458 121,328 123,402 124,522 8,469 35,835 34,659 34,718 4 Private investors 402,226 492,294 533,778 540,228 133,173 159,585 170,942 180,685 5 Commercial banks 69,076 77,868 78,396 78,972 38,346 44,482 41,463 42,963 6 Mutual savings banks 3,204 3,917 4,181 4,096 1,668 1,925 2,049 2,069 7 Insurance companies 11,496 11,930 12,726 13,209 4,518 4,504 4,919 5,358 8 Nonfinancial corporations 8,433 7,758 5,938 5,366 2,844 2,203 1,197 1,292 9 Savings and loan associations 3,209 4,225 4,214 4,218 1,763 2,289 2,481 2,357 10 State and local governments 15,735 21,058 23,602 23,743 3,487 4,595 5,023 5,090 11 All others 291,072 365,539 404,714 410,624 80,546 99,577 113,809 121,556 Total, within 1 year 5 to 10 years 12 All holders 255,252 297,385 312,707 314,506 50,440 56,037 64,934 58,214 13 U.S. government agencies and trust funds 1,629 830 1,307 909 871 1,404 1,411 1,398 14 Federal Reserve Banks 63,219 56,858 59,530 62,082 12,977 13,458 13,280 11,519 15 Private investors 190,403 239,697 251,870 251,516 36,592 41,175 50,242 45,297 16 Commercial banks 20,171 25,197 27,554 28,435 8,086 5,793 6,101 4,397 17 Mutual savings banks 836 1,246 1,334 1,382 459 455 425 270 18 Insurance companies 2,016 1,940 2,029 2,186 2,815 3,037 3,257 2,787 19 Nonfinancial corporations 4,933 4,281 3,019 2,388 308 357 391 340 20 Savings and loan associations 1,301 1,646 1,582 1,661 69 216 84 129 21 State and local governments 5,607 7,750 8,817 8,679 1,540 2,030 2,332 2,338 22 All others 155,539 197,636 207,535 206,785 24,314 29,287 37,653 35,036 Bills, within 1 year 10 to 20 years 23 All holders 172,644 216,104 217,532 219,854 27,588 36,854 39,866 43,165 24 U.S. government agencies and trust funds 0 1 1 1 4,520 3,686 3,685 4,027 25 Federal Reserve Banks 45,337 43,971 44,437 47,123 3,272 5,919 6,009 6,535 26 Private investors 127,306 172,132 173,094 172,730 19.796 27,250 30,172 32,602 27 Commercial banks 5,938 9,856 8,352 9,218 993 1,071 1,342 1,263 28 Mutual savings banks 262 394 354 343 127 181 192 203 29 Insurance companies 473 672 608 660 1,305 1,718 1,800 2,117 30 Nonfinancial corporations 2,793 2,363 1,333 941 218 431 798 849 31 Savings and loan associations 219 818 386 377 58 52 45 38 32 State and local governments 3,100 5,413 5,983 6,133 1,762 3,597 4,119 4,542 33 All others 114,522 152,616 156,079 155,059 15,332 20,200 21,877 23,590 Other, within 1 year Over 20 years 34 All holders 82,608 81,281 95,174 94,652 33,254 35,500 42,132 41,109 35 U.S. government agencies and trust funds 1,629 829 1,306 907 1,472 1,656 1,656 1,313 36 Federal Reserve Banks 17,882 12,888 15,093 14,959 9,520 9,258 9,924 9,669 37 Private investors 63,097 67,565 78,776 78,785 22,262 24,587 30,553 30,127 38 Commercial banks 14,233 15,341 19,202 19,217 1,470 1,325 1,935 1,914 39 Mutual savings banks 574 852 980 1,039 113 110 181 172 40 Insurance companies 1,543 1,268 1,421 1,526 842 730 721 760 41 Nonfinancial corporations 2,140 1,918 1,686 1,447 130 476 534 497 42 Savings and loan associations 1,081 828 1,196 1,284 19 21 22 34 43 State and local governments 2,508 2,337 2,833 2,546 3,339 3,086 3,319 3,094 44 All others 41,017 45,020 51,457 51,726 16,340 18,838 23,840 23,656 NOTE. Direct public issues only. Based on Treasury Survey of Ownership from and 725 insurance companies, each about 80 percent; (2) 408 nonfinancial cor- Treasury Bulletin (U.S. Treasury Department). porations and 472 savings and loan associations, each about 50 percent; and (3) Data complete for U.S. government agencies and trust funds and Federal Reserve 489 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 Aug. 31,1981: (1) 5,334 commercialbanks, 457 mutual savings banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A34 Domestic NonfinancialS tatistics • November 1981 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday IItteemm 11997788 11997799 11998800 July Aug. Sept. Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Immediate delivery1 1 U.S. government securities.. 10,285 13,183 21,615 23,901 24,881 27,217 26,689 23,347 30.669 28,485 24.554 By maturity 2 Bills 6,173 7,915 13.873 14,188 14,980 16,949 15,885 12,322 19,276 16,607 15,220 3 Other within 1 year 392 454 584 516 794 1,044 803 945 763 511 747 4 1-5 years 1,889 2,417 3,139 3,990 4,238 3,866 5,528 5,265 4,403 4,063 3,779 5 5-10 years 965 1,121 2,084 2,410 2,688 3,160 2,353 2,397 2,613 4,824 2,471 6 Over 10 years 867 1,276 1,937 2,797 2,181 2,197 2.121 2,418 3.615 2,479 2,337 By type of customer 7 U.S. government securities dealers 1,135 1,448 2.171 1,767 1,810 1,788 1,745 2,173 2.616 1,215 1,885 8 U.S. government securities brokers 3,838 5,170 n.a. 10,222 11,555 11,922 13,816 12,972 9,911 14,706 14,266 11,931 9 All others2 5,312 6,564 9,223 10,579 11,149 11,612 11.972 11.263 13,347 13,004 10,738 10 Federal agency securities.... 1,894 2,723 3,060 3,136 2,786 4,440 3,399 3,283 3,558 3,471 3,227 11 Certificates of deposit 1,292 1,764 4,290 4,161 5,337 6,460 6.239 5,124 5,586 5,354 4,327 1 1 2 3 B C a o n m k m er e s r c a i c a c l e p p a ta p n e c r es t t 5 1 , , 9 6 1 5 8 5 5 1 , , 9 4 4 2 2 0 6 1 , , 6 8 2 4 2 4 2 6 , , 0 9 1 5 5 6 6 2 , , 3 1 0 2 1 1 6 1 , , 6 9 6 7 4 6 2 7 , , 1 2 9 5 7 7 2 7 , , 1 0 1 3 8 8 7 1 , , 3 7 9 7 6 1 Futures transactions3 14 Treasury bills n.a. n.a. 3,893 3,619 3,764 4,916 3,453 3.420 3,581 3,886 3,847 15 Treasury coupons 1.160 1,337 1,840 1,760 1,945 1,975 1,634 1,590 1,499 16 Federal agency securities.... 143 237 169 254 191 160 132 173 246 Forward transactions4 17 U.S. government securities.. 369 612 359 431 310 170 227 429 173 18 Federal agency securities.... 911 1,123 1.269 1,640 1,106 899 1,294 1,673 1,372 1. Before 1981, data for immediate transactions include forward transactions. date of the transaction for government securities (Treasury bills, notes, and bonds) 2. Includes, among others, all other dealers and brokers in commodities and or after 30 days for mortgage-backed agency issues. securities, nondealer departments of commercial banks, foreign banking agencies, NOTES. Averages for transactions are based on number of trading days in the and the Federal Reserve System. period. 3. Futures contracts are standardized agreements arranged on an organized ex- Transactions are market purchases and sales of U.S. government securities dealchange in which parties commit to purchase or sell securities for delivery at a future ers reporting to the Federal Reserve Bank of New York. The figures exclude date. allotments of, and exchanges for, new U.S. government securities, redemptions of 4. Forward transactions are agreements arranged in the over-the-counter market called or matured securities, purchases or sales of securities under repurchase in which securities are purchased (sold) for delivery after 5 business days from the agreement, reverse repurchase (resale), or similar contracts. 1.44 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing Averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday IItteemm 11997788 11997799 11998800 July Aug. Sept. Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Positions Net immediate1 1 U.S. government securities.... 2,656 3,223 6.270 6,635 6,148 7,147 6,791 8,398 7,971 7,948 4,431 2 Bills 2.452 3.813 2.953 4,322 5,543 5,021 4,417 6,859 7,005 5,942 2,689 3 Other within 1 year 260 -325 -1,419 -2,181 -2,613 -2,303 -2,598 -2,867 -2,741 -2,522 -2,326 4 1-5 years -92 -455 1.754 2,531 2,180 2,443 2,501 1,979 1,467 2,666 2,516 5 5-10 years 40 160 815 72 31 -172 466 523 243 -330 -702 6 Over 10 years -4 30 2,167 1,892 2,081 2.158 2,005 1,904 1,996 2,192 2,254 7 Federal agency securities 606 1.471 3.041 2,984 2,341 1,972 1,987 2,359 2,700 2,135 2,040 8 Certificates of deposit 2,775 2,794 n.a. 4.880 3,925 3,341 3,149 3,214 2,942 3,034 3,150 4,275 9 Bankers acceptances 1,927 1,475 1,440 1,186 1,498 1,358 1,383 1,262 1,741 10 Commercial paper 2.309 2,171 2,337 1.998 2,397 2,274 2,348 2,279 2,430 Future positions 11 Treasury bills -8.352 -9,939 -9,786 -11,009 -11,106 -10,898 -10,113 -9,701 -8,055 12 Treasury coupons n. a. n a. - 2.480 -2,598 -2,363 -2,638 -2,551 -2,002 -2,209 -2,549 -2,638 13 Federal agency securities -946 -807 -661 -719 -724 -644 -703 -715 -562 Forwards positions 14 U.S. government securities.... -523 -509 -565 -897 -662 -748 -537 -455 -492 15 Federal agency securities 91 -206 -254 -218 -85 -325 -294 -251 -196 Financing2 Reverse repurchase agreements3 . 16 Overnight and continuing t t t 15.371 16,087 17,052 16,494 16,331 16,187 16,664 16,876 19,204 7 Term agreements 29.519 29,414 30,889 29,808 29,223 29,006 27,687 33,163 35,365 Repurchase agreements4 n1.a. n.aI. 1n.a. 18 Overnight and continuing 36.175 36,719 35,814 36,594 35,229 35,031 36,512 35,326 36,971 19 Term agreements 26.122 27,213 29,521 28.139 27,464 27,168 28,914 31,229 32,831 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A35 1.45 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1981 AAggeennccyy 11997788 11997799 11998800 Mar. Apr. May June July Aug. 1 Federal and federally sponsored agencies1 137,063 163,290 193,229 198,828 200,434 205,020 208,961 213,690c 218,362 2 Federal agencies 23,488 24,715 28,606 29,397 29,502 29,311 29,945 29,978 30,088 3 Defense Department2 968 738 610 576 566 556 546 536 526 4 Export-Import Bank3'4 8,711 9,191 11,250 11,881 11,868 11,850 12,423 12,401 12,385 5 Federal Housing Administration5 588 537 477 464 459 449 448 443 449 6 Government National Mortgage Association participation certificates6 3,141 2,979 2,817 2,817 2,775 2,775 2,715 2,715 2,715 7 Postal Service7 2,364 1,837 1,770 1,770 1,770 1,538 1,538 1,538 1,538 8 Tennessee Valley Authority 7,460 8,997 11,190 11,680 11,845 11,930 12,060 12,130 12,260 9 United States Railway Association7 356 436 492 209 219 213 215 215 215 10 Federally sponsored agencies1 113,575 138,575 164,623 169,431 170,932 175,709 179,016 183,712c 188,274 11 Federal Home Loan Banks 27,563 33,330 41,258 43,791 44,357 47,121 49,425 52,431 55,161 12 Federal Home Loan Mortgage Corporation 2,262 2,771 2,536 2,409 2,409 2,409 2,409 2,408 2,408 13 Federal National Mortgage Association 41,080 48,486 55,185 54,666 54,183 54,430 54,657 55,362 56,372 14 Federal Land Banks 20,360 16,006 12,365 11,507 10,583 10,583 10,583 10,317 10,317 15 Federal Intermediate Credit Banks 11,469 2,676 1,821 1,388 1,388 1,388 1,388 1,388 1,388 16 Banks for Cooperatives 4,843 584 584 584 220 220 220 220 220 17 Farm Credit Banks1 5,081 33,216 48,153 51,689 54,345 56,061 56,932 57,784 58,306 18 Student Loan Marketing Association8 915 1,505 2,720 3,395 3,445 3,495 3,400 3,800c 4,100 19 Other 2 1 1 2 2 2 2 2 2 MEMO: 20 Federal Financing Bank debt1'9 51,298 67,383 87,460 94,101 96,489 98,297 100,333 102,853 103,597 Lending to federal and federally sponsored 21 Export-Import Bank4 6,898 8,353 10,654 11,346 11,346 11,346 11,933 11,933 11,933 22 Postal Service7 2,114 1,587 1,520 1,520 1,520 1,288 1,288 1,288 1,288 23 Student Loan Marketing Association8 915 1,505 2,720 3,395 3,445 3,495 3,400 3,800 4,100 24 Tennessee Valley Authority 5,635 7,272 9,465 9,955 10,120 10,205 10,335 10,405 10,535 25 United States Railway Association7 356 436 492 209 219 213 215 215 215 Other Lending10 26 Farmers Home Administration 23,825 32,050 39,431 41,791 43,456 44,746 45,691 47,396 47,171 27 Rural Electrification Administration 4,604 6,484 9,196 10,443 10,652 10,988 11,346 11,604 11,861 28 Other 6,951 9,696 13,982 15,442 15,731 16,016 16,125 16,212 16,494 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 Asbonds 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 particcurities 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 NOTES TO TABLE 1.44 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 positions, do not include securities to resell (reverse RPs). Before 1981, data for NOTE. Data for positions are averages of daily figures, in terms of par value, immediate positions include forward positions. based on the number of trading days in the period. Positions are shown net and 2. Figures cover financing involving U.S. government and federal agency secu- are on a commitment basis. Data for financing are based on Wednesday figures, rities, negotiable CDs, bankers acceptances, and commercial paper. in terms of actual money borrowed or lent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A36 Domestic NonfinancialS tatistics • November 1981 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1981 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11997788 11997799 11998800 Mar.'' Apr.' Mayr June' July Aug. 1 All issues, new and refunding1 48,607 43,490 48,462 3,953 5,216 3,476 4,862 3,180 3,066 Tvpe of issue 2 General obligation 17,854 12.109 14,100 1.256 1,360 1,321 1,387 1,064 954 3 Revenue 30,658 31.256 34,267 2.686 3,850 22,,114455 33,,447700 22,,111111 22,,110000 5 U.S. government loans 95 125 95 11 6 10 5 5 12 Tvpe of issuer 6 State 6.632 4,314 5,304 349 544 639 585 353 446 7 Special district and statutory authority 24,156 23,434 26.972 2.004 2,787 1,667 2,706 1,724 1,682 8 Municipalities, counties, townships, school districts 17,718 15,617 16,090 1.589 1,878 1,160 1,566 1,099 927 9 Issues for new capital, total 37,629 41,505 46,736 3,919 5,036 3,463 4,781 3,167 2,408 Use of proceeds 10 Education 5,003 5.130 4,572 515 497 231 641 255 267 11 Transportation 3,460 2.441 2,621 239 137 427 160 537 110 12 Utilities and conservation 9,026 8,594 8,149 795 1,278 664 760 881 541 13 Social welfare 10,494 15.968 19,958 979 1,022 1,029 1,371 712 825 14 Industrial aid 3,526 3.836 3,974 541 1,341 459 747 358 266 15 Other purposes 6,120 5,536 7.462 850 761 653 1.102 424 399 1. Par amounts of long-term issues based on date of sale. SOURCE. Public Securities Association. 2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 1.47 NEW SECURITY ISSUES of Corporations Millions of dollars 1981 Type of issue or issuer, or use 1978 1979 1980 Feb. Mar. Apr. May June July Aug. 1 All issues' 47,230 51,533 73,688 4,157 6,423 6,835 5,457 9,536 4,013 2,865 2 Bonds 36,872 40,208 53,199 2,834 4,275 4,597 3,080 5,601 2,256 1,413 Tvpe of offering 3 Public 19,815 25,814 41.587 2.408 3,778 3.668 2,520 4,603 1,925 905 4 Private placement 17,057 14,394 11.612 426 497 929 560 998 331 508 Industry group 5 Manufacturing 9,572 9,678 15,409 1,140 1.064 1,459 1,269 1,313 497 280 6 Commercial and miscellaneous. 5,246 3,948 6,688 356 212 342 138 566 206 272 7 Transportation 2,007 3,119 3,329 45 172 142 49 584 131 65 8 Public utility 7,092 8,153 9,556 593 594 904 1,063 996 383 354 9 Communication 3,373 4,219 6,683 272 958 554 56 470 767 102 10 Real estate and financial 9,586 11.094 11,534 430 1.276 1,197 506 1,672 273 340 11 Stocks 10,358 11,325 20,490 1,323 2,148 2,238 2,377 3,935 1,757 1,452 Type 12 Preferred 2,832 3,574 3,632 149 298 85 164 188 67 14 13 Common 7,526 7,751 16,858 1,174 1,850 2,153 2,213 3,747 1,690 1,438 Industry group 14 Manufacturing 1,241 1,679 4,839 204 735 531 903 382 335 160 15 Commercial and miscellaneous. 1,816 2,623 5,245 589 816 477 958 1,024 437 659 16 Transportation 263 255 549 81 17 146 47 18 29 87 17 Public utility 5,140 5,171 6,230 260 414 717 173 843 308 248 18 Communication 264 303 567 31 56 1,036 73 12 19 Real estate and financial 1,631 12,931 3,059 159 167 310 296 632 574 287 1. Figures, which represent gross proceeds of issues maturing in more than one 1933, employee stock plans, investment companies other than closed-end, intrayear, 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 A37 1.48 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1981 IItteemm 11997799 11998800 Feb. Mar. Apr. May June July Aug. Sept. INVESTMENT COMPANIES1 1 Sales of own shares2 7,495 15,266 1,347 1,696 2,000 1,785 1,910 1,639 1,457 1,426 2 Redemptions of own shares3 8,393 12,012 960 1,112 1,594 1,250 1,512 1.297 1,422 1,457 3 Net sales -898 3,254 387 584 406 535 398 342 35 -31 4 Assets4 49,277 58,400 56,452 59,146 58,531 60,081 58,887 57,494 54,221 51,730 5 Cash position5 4,983 5,321 4.882 4,971 5,099 5,448 5,199 5,109r 5,058 3,414 6 Other 44,294 53,079 51,570 54,175 53,432 54.633 53,688 52,385 49,163 46,316 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 Seother 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 AAccccoouunntt 11997788 11997799 11998800 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1 Corporate profits with inventory valuation and capital consumption adjustment 118855..55 119966..88 118822..77 189.4 200.2 169.3 177.9 183.3 203.0 190.3 2 Profits before tax 223.3 255.3 245.5 255.4 277.1 217.9 237.6 249.5 257.0 229.0 3 Profits tax liability 82.9 87.6 82.3 87.2 94.2 71.5 78.5 85.2 87.7 76.4 4 Profits after tax 140.3 167.7 163.2 168.2 182.9 146.4 159.1 164.3 169.2 152.7 5 Dividends 44.6 50.1 56.0 51.6 53.9 55.7 56.7 57.7 59.6 62.0 6 Undistributed profits 95.7 117.6 107.2 116.6 129.0 90.7 102.4 106.6 109.6 90.6 7 Inventory valuation -24.3 -42.6 -45.6 -50.8 -61.4 -31.1 -41.7 -48.4 -39.2 -24.0 8 Capital consumption adjustment -13.5 -15.9 -17.2 -15.1 -15.4 -17.6 -17.9 -17.8 -14.7 -14.7 SOURCE. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A38 Domestic Nonfinancial Statistics • November 1981 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1980 1981 AAccccoouunntt 11997755 11997766 11997777 11997788 11997799 02 03 04 Q1 Q2 1 Current assets 759.0 826.8 902.1 1,030.0 1,200.9 1,232.2 1,254.9 1,281.6 1,321.2 1,317.7 2 Cash 82.1 88.2 95.8 104.5 116.1 111.5 113.4 121.0 120.5 118.5 3 U.S. government securities 19.0 23.4 17.6 16.3 15.6 14.0 16.4 17.3 17.0 18.3 4 Notes and accounts receivable 272.1 292.8 324.7 383.8 456.8 463.4 478.7 491.2 507.3 507.1 5 Inventories 315.9 342.4 374.8 426.9 501.7 525.0 524.5 525.4 542.8 540.0 6 Other 69.9 80.1 89.2 98.5 110.8 118.3 121.9 126.7 133.6 133.7 7 Current liabilities 451.6 494.7 549.4 665.5 809.1 826.0 850.5 877.2 910.9 908.1 8 Notes and accounts payable 264.2 281.9 313.2 373.7 456.3 462.8 477.0 498.3 504.0 500.8 9 Other 187.4 212.8 236.2 291.7 352.8 363.2 373.5 378.9 406.9 407.2 10 Net working capital 307.4 332.2 352.7 364.6 391.8 406.2 404.3 404.4 410.3 409.6 11 MEMO: Current ratio 1 1.681 1.672 1.642 1.548 1.484 1.492 1.475 1.461 1.450 1.451 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 IInndduussttrryy 11997799 11998800 1199881111 Q2 Q3 Q4 Q1 Q21 Q31 Q41 1 Total nonfarm business 270.46 295.63 321.50 294.36 296.23 299.58 312.24 316.73 322.96 332.69 Manufacturing 2 Durable goods industries 51.07 58.91 62.92 59.38 58.19 59.77 61.24 63.10 63.07 64.06 3 Nondurable goods industries 47.61 56.90 63.87 56.32 58.21 58.86 63.27 62.40 65.65 64.05 Nonmanufacturing 4 Mining 11.38 13.51 16.47 12.81 13.86 15.28 16.20 16.80 16.12 16.70 Transportation 5 Railroad 4.03 4.25 4.43 4.06 3.98 4.54 4.23 4.38 4.22 4.84 6 Air 4.01 4.01 3.60 4.27 4.06 3.77 3.85 3.29 2.84 4.44 7 Other 4.31 3.82 4.12 3.76 4.18 3.39 3.66 4.04 4.00 4.60 Public utilities 8 Electric 27.65 28.12 28.12 27.91 28.14 27.54 27.69 29.32 29.41 28.84 9 Gas and other 6.31 7.32 8.07 7.12 7.44 7.41 8.36 8.53 7.38 8.16 10 Trade and services 79.26 81.79 87.30 81.07 81.19 82.91 83.43 85.88 86.55 92.68 11 Communication and other2 34.83 36.99 41.89 37.66 36.97 36.11 40.32 39.02 43.70 44.31 1. Anticipated by business. SOURCE. Survey of Current Business (U.S. Dept. of Commerce). 2. "Other" consists of construction; social services and membership organizations; and forestry, fisheries, and agricultural services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Corporate Finance A39 1.52 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1980 1981 AAccccoouunntt 11997755 11997766 11997777 11997788 11997799 Q2 Q3 Q4 Q1 Q2 ASSETS Accounts receivable, gross 1 Consumer 36.0 38.6 44.0 52.6 65.7 70.2 71.7 73.6 76.1 79.0 2 Business 39.3 44.7 55.2 63.3 70.3 70.3 66.9 72.3 72.7 78.2 3 Total 75.3 83.4 99.2 116.0 136.0 140,4 138.6 145.9 148.7 157.2 4 LESS: Reserves for unearned income and losses.... 9.4 10.5 12.7 15.6 20.0 21.4 22.3 23.3 24.3 25.7 5 Accounts receivable, net 65.9 72.9 86.5 100.4 116.0 119.0 116.3 122.6 124.5 131.4 6 Cash and bank deposits 2.9 2.6 2.6 3.5 7 Securities 1.0 1.1 .9 1.3 2244..9911 26.1 28.3 27.5 30.8 31.6 8 All other 11.8 12.6 14.3 17.3 9 Total assets 81.6 89.2 104.3 122.4 140.9 145.1 144.7 150.1 155.3 163.0 LIABILITIES 10 Bank loans 8.0 6.3 5.9 6.5 8.5 10.1 10.1 13.2 13.1 14.4 11 Commercial paper 22.2 23.7 29.6 34.5 43.3 40.7 40.5 43.4 44.2 49.0 12 Short-term, n.e.c 4.5 5.4 6.2 8.1 8.2 7.9 7.7 7.5 8.2 8.5 13 Long-term, n.e.c 27.6 32.3 36.0 43.6 46.7 50.5 52.0 52.4 51.6 52.6 14 Other 6.8 8.1 11.5 12.6 14.2 16.0 14.6 14.3 17.3 17.0 15 Capital, surplus, and undivided profits 12.5 13.4 15.1 17.2 19.9 19.9 19.8 19.4 20.9 21.5 16 Total liabilities and capital 81.6 89.2 104.3 122.4 140.9 145.1 144.7 150.1 155.3 163.0 1. Beginning Q1 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 AAAccccccooouuunnntttsss receivable rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuutttssstttaaannndddiiinnnggg AAAuuuggguuusssttt 333111,,, 1981 1981 1981 111999888111111 June July Aug. June July Aug. June July Aug. 1 Total 77,184 1,850 1,213 430 19,502 19,419 20,356 17,652 18,206 19,926 2 Retail automotive (commercial vehicles) 11,210 -217 -128 63 734 838 988 951 966 925 3 Wholesale automotive 11,781 1,085 588 -62 6,267 5,657 5,905 5,182 5,069 5,967 4 Retail paper on business, industrial and farm equipment 26,032 456 539 -73 1,774 1.523 1.701 1,318 984 1,774 5 Loans on commercial accounts receivable and factored commercial accounts receivable 8,984 180 -97 519 8,267 8,824 9,459 8,087 8,921 8.940 6 All other business credit 19,177 346 311 -17 2,460 2,577 2,303 2,114 2,266 2,320 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A40 Domestic Nonfinancial Statistics • November 1981 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1981 Item 1978 1979 1980 Mar. Apr. May June July Aug. Sept. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes 1 Purchase price (thousands of dollars) 62.6 74.4 83.4 90.9 88.5 88.9 94.1 95.2' 98.1' 87.6 2 Amount of loan (thousands of dollars) 45.9 53.3 59.2 64.5 64.1 65.5 66.8 67.7 70.3' 67.4 3 Loan/price ratio (percent) 75.3 73.9 73.2 73.9 74.7 76.7 72.6 73.9 74.7' 74.1 4 Maturity (years) 28.0 28.5 28.2 28.7 28.6 28.5 27.5 28.3 27.2' 26.4 5 Fees and charges (percent of loan amount)2 1.39 1.66 2.09 2.64 2.61 2.60 2.50 2.73 2.98' 2.81 6 Contract rate (percent per annum) 9.30 10.48 12.25 13.48 13.62 13.56 14.12 14.13 14.60' 14.76 Yield (percent per annum) 7 FHLBB series3 9.54 10.77 12.65 14.02 14.15 14.10 14.67 14.72 15.27 15.37 8 HUD series4 9.68 11.15 13.95 15.25 15.70 16.35 16.40 16.70 17.50 18.30 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 9.70 10.87 13.42 15.04 15.91 16.03 16.31 16.76 17.96 18.55 10 GNMA securities6 8.98 10.22 12.55 14.22 14.69 15.31 15.02 15.76 16.67 17.06 FNMA auctions7 U Government-underwritten loans 9.77 11.17 14.11 15.64 16.54 16.93 16.17 16.65 17.63 18.99 12 Conventional loans 10.01 11.77 14.43 15.29 15.66 16.44 16.30 16.44 17.59 19.14 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 39,032 46,050 55,104 57,362 57,436 57,586 57,657 57,979 58,722 59,682 14 FHA/VA-insured 29,941 33,673 37.364 38,878 38,919 39.030 38,988 39,108 39,368 39,792 15 Conventional 9,091 14,377 17,724 18,484 18,517 18,557 18,669 18,870 19,354 19,890 Mortgage transactions (during period) 16 Purchases 12,301 10.812 8,099 87 206 283 247 627 944 1,125 17 9 0 0 0 1 0 0 0 0 0 Mortgage commitments8 18 Contracted (during period) 18,959 10,179 8,083 320 383 802 1,110 1,662 1,394 811 19 Outstanding (end of period) 9,185 6,409 3,278 2,173 2,031 2,328 3,103 4,039 4,399 3,997 Auction of 4-month commitments to buv Government-underwritten loans 20 Offered 12,978.1 8,860.4 8,605.4 169.0 139.1 204.8 237.6 331.9 689.5 145.9 21 6,747.2 3,920.9 4,002.0 69.0 114.5 179.1 127.1 290.4 336.6 64.1 Conventional loans 22 Offered 9,933.0 4,495.3 3,639.2 104.0 126.9 281.3 307.1 306.6 862.2 120.7 23 Accepted 5,110.9 2,343.6 1,748.5 62.0 92.0 155.9 224.0 238.2 304.3 67.9 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 2,810 3.543 4,362 5,161 5,176 5,223 5,257 5,250 5,294 5,431 25 FHA/VA 1,847 1.995 2,116 2,229 2,224 2,235 2,241 2,233 2,238 2,264 26 Conventional 963 1,549 2,246 2,931 2,952 2,988 3,016 3,017 3,056 3,167 Mortgage transactions (during period) 27 Purchases 6,525 55,,771177 3,723 148 125 480 139 242 101 337 28 6,211 4.544 2,527 127 97 422 94 238 44 249 Mortgage commitments'0 29 Contracted (during period) 7,451 5.542 3,859 475 118 130 293 866 386 365 30 Outstanding (end of period) 1,410 797 447 699 678 322 1,018 824 1,028 982 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 servor the seller) in order to obtain a loan. icing) on accepted bias 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. Includes some multifamiiy and nonprofit hospital loan commitments in ad- 5. Average gross yields on 30-year, minimum-downpayment. Federal Housing dition to 1- to 4-family loan commitments accepted in FNMA's free market auction Administration-insured first mortgages for immediate delivery in the private sec- system, and through the FNMA-GNMA tandem plans. ondary market. Any gaps in data are due to periods of adjustment to changes in 9. Includes participation as well as whole loans. maximum permissible contract rates. 10. Includes conventional and government-underwritten loan... 6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Real Estate Debt A41 1.55 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1980 1981 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11997788 11997799 11998800 Q2 Q3 Q4 Q1 Q2 1 All holders 1,169,412 1,326,750 1,451,840 1,380,928 1,414,881 1,451,841 1,473,402' 1,503,431' 2 1- to 4-family 765,217 878,931 960,422 910,286 935,393 960,408 973,460r 992,497' 3 Multifamily 121,138 128,852 136,580 132,194 134,193 136,601 137,750r 138,947' 4 Commercial 211,851 236,451 258,338 247,444 251,651 258,332 262,459' 268,261' 5 Farm 71,206 82,516 96,500 91,004 93,644 96,500 99,733' 103,726' 6 Major financial institutions 848,177 938,567 998,386 958,750 977,281 998,372 1,008,204 1,024,618 7 Commercial banks1 214,045 245,187 264,602 253,103 258,003 264,602 268,102 274,503 8 1- to 4-family 129,167 149,460 160,746 153,753 156,737 160,746 162,872 166,761 9 Multifamily 10,266 11,180 12,304 11,764 11,997 12,304 12,467 12,764 10 Commercial 66,115 75,957 82,688 79,110 80,626 82,688 83,782 85,782 11 Farm 8,497 8,590 8,864 8,476 8,643 8,864 8,981 9,196 12 Mutual savings banks 95,157 98,908 99,827 99,150 99,8306 99,813 99,719 99,993 13 1- to 4-family 62,252 64,706 65,307 64,864 64,966 65,297 65,236 65,415 14 Multifamily 16,529 17,340 17,180 17,223 17,249 17,338 17,321 17,369 15 Commercial 16,319 16,963 17,120 17,004 17,031 17,118 17,102 17,149 16 Farm 57 59 60 59 60 60 60 60 17 Savings and loan associations 432,808 475,688 502,812 481,042 491,895 502,812 507,152 514,803 18 1- to 4-family 356,114 394,345 419,446 399,746 409,896 419,446 423,269' 430,324' 19 Multifamily 36,053 37,579 38,113 37,329 37,728 38,113 38,189r 38,044' 20 Commercial 40,461 43,764 45,253 43,967 44,271 45,253 45,694' 46,435' 21 Life insurance companies 106,167 118,784 131,145 125,455 128,077 131,145 133,231 135,319 22 1- to 4-family 14,436 16,193 17,911 17,796 17,996 17,911 17,847 17,646 23 Multifamily 19,000 19,274 19,614 19,284 19,357 19,614 19,579 19,603 24 Commercial 62,232 71,137 80,776 75,693 77,995 80,776 82,839 85,038 25 Farm 10,499 12,180 12,844 12,682 12,729 12,844 12,966 13,032 26 Federal and related agencies 81,739 97,084 114,300 108,539 110,526 114,300 116,243 120,040' 27 Government National Mortgage Association 3,509 3,852 4,642 4,466 4,389 4,642 4,826 4,955 28 1- to 4-family 877 763 704 736 719 704 696 699 29 Multifamily 2,632 3,089 3,938 3,730 3,670 3,938 4,130 4,256 30 Farmers Home Administration 926 1,274 3,492 3,375 3,525 3,492 2,837 3,595 31 1- to 4-family 288 417 916 1,383 978 916 1,321 1,565 32 Multifamily 320 71 610 636 774 610 528 489 33 Commercial 101 174 411 402 370 411 479 576 34 Farm 217 612 1,555 954 1,403 1,555 509 965 35 Federal Housing and Veterans Administration 5,305 5,555 5,640 5,691 5,600 5,640 5,799 5,895' 36 1- to 4-family 1,673 1,955 2,051 2,085 1,986 2,051 2,135 2,172' 37 Multifamily 3,632 3,600 3,589 3,606 3,614 3,589 3,664 3,723' 38 Federal National Mortgage Association 43,311 51,091 57,327 55,419 55,632 57,327 57,362 57,657 39 1- to 4-family 37,579 45,488 51,775 49,837 50,071 51.775 51,842 52,181 40 Multifamily 5,732 5,603 5,552 5,582 5,561 5,552 5,520 5,476 41 Federal Land Banks 25,624 31,277 38,131 35,574 36,837 38,131 40,258 42,681' 42 1- to 4-family 927 1,552 2,099 1,893 1,985 2,099 2,228 2,401 43 Farm 24,697 29,725 36,032 33,681 34,852 36,032 38,030 40,280' 44 Federal Home Loan Mortgage Corporation 3,064 4,035 5,068 4,014 4,543 5,068 5,161 5,257 45 1- to 4-family 2,407 3,059 3,873 3,037 3,459 3,873 3,953 4,025 46 Multifamily 657 976 1,195 977 1,084 1,195 1,208 1,232 47 Mortgage pools or trusts2 88,633 119,278 142,258 129,647 136,583 142,258 147,246 151,374 48 Government National Mortgage Association 54,347 76,401 93,874 84,282 89,452 93,874 97,184 100,558 49 1- to 4-family 52,732 74,546 91,602 82,208 87,276 91,602 94,810 98,057' 50 Multifamily 1,615 1,855 2,272 2,074 2,176 2,272 2,374 2,501' 51 Federal Home Loan Mortgage Corporation 11,892 15,180 16,854 16,120 16,659 16,854 17,067 17,565 52 1- to 4-family 9,657 12,149 13,471 12,886 13,318 13,471 13,641 14,115 53 Multifamily 2,235 3,031 3,383 3,234 3,341 3,383 3,426 3,450 54 Farmers Home Administration 22,394 27,697 31,530 29,245 30,472 31,530 32,995 33,251 55 1- to 4-family 13,400 14,884 16,683 15,224 16,226 16,683 16,640 16,750 56 Multifamily 1,116 2,163 2,612 2,159 2,235 2,612 2,853 3,072 57 Commercial 3,560 4,328 5,271 4,763 5,059 5,271 5,382 5,531 58 Farm 4,318 6,322 6,964 7,099 6,952 6,964 8,120 7,898 59 Individual and others3 150,863 171,821 196,896 183,992 190,491 196,911 201,709' 207,399' 60 1- to 4-family 83,708 99,414 113,838 104,838 109,780 113,834 116,970' 120,386' 61 Multifamily 21,351 23,251 26,058 24,596 25,407 26,081 26,491' 26,968' 62 Commercial 22,883 24,128 26,819 26,505 26,299 26,815 27,181' 27,750' 63 Farm 22.921 25,028 30,181 28,053 29,005 30,181 31,067' 32,295' 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
A42 Domestic NonfinancialS tatistics • November 1981 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1981 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. Amounts outstanding (end of period) 1 Total 273,645 312,024 313,435 310,766 313,419 315,465 318,459 320,886 324,653 328,296 Bv major holder 2 Commercial banks 136,016 154,177 145.765 141,897 142,070 142,143 143,310 144,020 144,769 145,287 3 Finance companies 54,298 68.318 76.756 79,490 81,033 81,794 82,723 83,924 86,152 88,698 4 Credit unions 44,334 46,517 44.041 44,212 44,390 45,055 45,686 46,096 46,605 46,791 5 Retailers2 25,987 28,119 29.410 26,965 27.227 27,319 27,412 27,469 27,494 27,712 6 Savings and loans 7,097 8,424 9.911 10,458 10,792 11,148 11,115 10,959 11,125 11,236 7 Gasoline companies 3,220 3,729 4.717 4,898 5,046 5,157 5,364 5,597 5,716 5,771 8 Mutual savings banks 2,693 2,740 2.835 2,846 2,861 2,849 2,849 2,821 2,792 2,801 Bv major type of credit 9 Automobile 101,647 116,362 116.327 117,517 118,479 118,932 119,685 121,002 123,219 125,646 10 Commercial banks 60,510 67,367 61.025 59,378 59,252 59,169 59,192 59,434 59,485 59,394 11 Indirect paper 33.850 38,338 34.857 34,016 33,931 33,913 33,996 34,270 34,501 34,656 12 Direct loans 26,660 29,029 26.168 25,362 25,321 25,256 25,196 25,164 24,984 24,738 13 Credit unions 21,200 22,244 21.060 21,142 21,227 21,545 21,847 22,044 22,286 22,375 14 Finance companies 19,937 26.751 34.242 36,997 38,000 38,218 38,646 39,525 41,448 43,877 15 Revolving 48,309 56,937 59.862 56,831 57,322 57,524 58,470 58,976 59,745 60,415 16 Commercial banks 24,341 29,862 30.001 29,051 29,127 29,096 29,722 29,923 30,530 30,921 17 Retailers 20,748 23,346 25.144 22.882 23,149 23.271 23,384 23,456 23,499 23,723 18 Gasoline companies 3,220 3,729 4.717 4.898 5,046 5,157 5,364 5,597 5,716 5,771 19 Mobile home 15,235 16,838 17.327 17.273 17,422 17,626 17,724 17,784 17,988 18,157 20 Commercial banks 9,545 10.647 10.376 10.153 10,142 10,159 10,179 10,192 10,242 10,274 21 Finance companies 3,152 3,390 3.745 3,762 3,828 3,909 3,990 4,076 4,178 4,282 22 Savings and loans 2,067 2,307 2.737 2.888 2,980 3,079 3,069 3,026 3,072 3,103 23 Credit unions 471 494 469 470 472 479 486 490 496 498 24 Other 108,454 121.887 119.919 119.145 120,196 121,383 122,580 123,124 123,701 124,078 25 Commercial banks 41,620 46,301 44.363 43.315 43,549 43,719 44,217 44,471 44,512 44,698 26 Finance companies 31,209 38,177 38.769 38,731 39,205 39,667 40,087 40,323 40,526 40,539 27 Credit unions 22,663 23.779 22.512 22,600 22.691 23,031 23,353 23,563 23,823 23,918 28 Retailers 5,239 4,773 4.266 4.083 4,078 4,048 4,028 4,013 3,995 3,989 29 Savings and loans 5,030 6,117 7.174 7,570 7,812 8,069 8,046 7,933 8,053 8,133 30 Mutual savings banks 2,693 2,740 2.835 2,846 2,861 2,849 2,849 2,821 2,792 2,801 Net change (during period)3 31 Total 43,079 38,381 1,410 3,108 2,331 1,346 1,930 1,954 2,859 2,819 Bv major holder 32 Commercial banks 23,641 18,161 -8.412 612 - 345 -14 614 432 185 123 33 Finance companies 9.430 14,020 8.438 1.539 1,253 409 570 948 2,383 2,682 34 Credit unions 6.729 2,185 -2.475 287 272 391 219 532 245 -134 35 Retailers2 2.497 2.132 1.291 253 531 -3 416 265 -13 117 36 Savings and loans 7 1.327 1.485 418 421 519 45 -175 42 71 37 Gasoline companies 257 509 988 -6 141 67 78 4 33 -20 38 Mutual savings banks 518 47 95 5 58 -23 -12 -52 -16 -20 Bv major type of credit 39 Automobile 18,736 14,715 -35 1.682 428 -195 57 1,208 2,115 2,282 40 Commercial banks 10,933 6.857 -6.342 229 -461 -208 -214 199 -91 -201 41 Indirect paper 6,471 4,488 -3.481 268 -256 -83 -44 274 159 63 42 Direct loans 4,462 2,369 -2.861 -39 -205 -125 -170 -75 -250 -264 43 Credit unions 3,101 1,044 -1.184 132 142 160 106 263 106 -82 44 Finance companies 4,702 6,814 7.491 1.321 747 -147 165 746 2,100 2,565 45 Revolving 9,035 8.628 2.925 587 838 350 1,018 477 491 293 46 Commercial banks 5,967 5,521 139 346 153 230 580 156 440 171 47 Retailers 2,811 2.598 1.798 247 544 53 360 317 18 142 48 Gasoline companies 257 509 988 -6 141 67 78 4 33 -20 49 Mobile home 286 1,603 488 88 145 243 89 67 176 175 50 Commercial banks 419 1.102 -271 -35 -15 7 -12 20 44 48 51 Finance companies 74 238 355 25 58 78 85 81 93 102 52 Savings and loans -276 240 430 97 99 152 14 -44 37 26 53 Credit unions 69 23 -25 1 3 6 2 10 2 -1 54 Other 15,022 13,435 -1.968 751 920 948 766 202 77 69 55 Commercial banks 6,322 4.681 -1.938 72 -22 -43 260 57 -208 105 56 Finance companies 4,654 6,968 592 193 448 478 320 121 190 15 57 Credit unions 3,559 1.118 -1.266 154 127 225 111 259 137 -51 58 Retailers -314 -466 -507 6 -13 -56 56 -52 -31 -25 59 Savings and loans 283 1,087 1.056 321 322 367 31 -131 5 45 60 Mutual savings banks 518 47 95 5 58 -23 -12 -52 -16 -20 1. The Board's series cover most short- and intermediate-term credit extended 3. Net change equals extensions minus liquidations (repayments, charge-offs and to individuals through regular business channels, usually to finance the purchase other credit); figures for all months are seasonally adjusted. of consumer goods and services or to refinance debts incurred for such purposes, and scheduled to be repaid (or with the option of repayment) in two or more ^Total consumer noninstallment credit outstanding—credit scheduled to be reinstallments. paid in a lump sum, including single-payment loans, charge accounts, and service 2. Includes auto dealers and excludes 30-day charge credit held by travel and credit—amounted to $64.3 billion at the end of 1978, $71.3 billion at the end of entertainment companies. 1979. and $72.2 billion at the end of 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Consumer Debt A43 1.57 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations Millions of dollars; monthly data are seasonally adjusted. 1981 Lj , , ^ . . . f ___ 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. Extensions 1 Total 297,668 324,777 305,887 29,822 28,878 28,149 29,005 28,750 28,899 29,428 By major holder 2 Commercial banks 142.433 154,733 133.605 12,676 11,986 12,055 12,483 12,433 12,034 12,036 3 Finance companies 50,505 61.518 60,801 5.911 5,218 4,937 5,251 5,439 6,385 7,158 4 Credit unions 38,111 34,926 29,594 3,153 3,181 3,212 3,137 3,299 2.913 2,558 5 Retailers' 44,571 47,676 50,959 4.685 5,002 4,486 5,018 4,826 4,616 4,727 6 Savings and loans 3,724 5.901 6,621 1.038 985 1,068 649 383 537 573 7 Gasoline companies 16,017 18,005 22.402 2,180 2,272 2,243 2,296 2,252 2,284 2,246 8 Mutual savings banks 2.307 2,018 1.905 179 234 148 171 118 130 130 Bv major tvpe of credit 9 Automobile 87,981 93.901 83.002 8.700 7,205 7,320 7,442 8,178 8,573 9,176 10 Commercial banks 52,969 53,554 40,657 4,117 3.438 3,627 3,652 3,874 3,457 3,394 11 Indirect paper 29,342 29,623 22,269 2,365 1,929 2.071 2,126 2,349 2,084 2,075 12 Direct loans 23,627 23,931 18.388 1,752 1,509 1,556 1,526 1,525 1,373 1,319 13 Credit unions 18,539 17,397 15.294 1,586 1,589 1,608 1.553 1,663 1,537 1,337 14 Finance companies 16,473 22,950 27,051 2,997 2.178 2,085 2,237 2,641 3,579 4,445 15 Revolving 105,125 120,174 129,580 12,071 12.352 11,904 12,668 12,190 11,964 12,335 16 Commercial banks 51,333 61,048 61,847 5,695 5,561 5,613 5,905 5,557 5.528 5,831 17 Retailers 37,775 41,121 45.331 4,196 4,519 4,048 4,467 4,381 4,152 4,258 18 Gasoline companies 16,017 18,005 22.402 2,180 2,272 2,243 2,296 2,252 2,284 2,246 19 Mobile home 5,412 6,471 5,098 641 551 609 488 451 536 543 20 Commercial banks 3,697 4,542 2.942 259 251 250 259 282 297 302 21 Finance companies 886 797 898 88 100 112 122 116 120 134 22 Savings and loans 609 948 1.146 269 184 230 93 30 105 95 23 Credit unions 220 184 113 25 16 17 14 23 14 12 24 Other 99,150 104,231 88.207 8.410 8,770 8.316 8,407 7,931 7,826 7,374 25 Commercial banks 34.434 35,589 28,159 2.605 2,736 2.565 2,667 2,720 2,752 2,509 26 Finance companies 33,146 37,771 32.852 2,826 2,940 2,740 2,892 2,682 2,686 2,579 27 Credit unions 19.352 17.345 14.187 1,542 1.576 1,587 1,570 1,613 1,362 1,209 28 Retailers 6,796 6,555 5.628 489 483 438 551 445 464 469 29 Savings and loans 3,115 4,953 5,476 769 801 838 556 353 432 478 30 Mutual savings banks 2.307 2,018 1,905 179 234 148 171 118 130 130 Liquidations 31 Total 254,589 286,396 304,477 26,714 26,547 26,803 27,075 26,796 26,040 26,609 Bv major holder 32 Commercial banks 118,792 136,572 142,017 12.064 12,331 12.069 11,869 12,001 11,849 11,913 33 Finance companies 41,075 47,498 52.363 4,372 3,965 4,528 4,681 4,491 4,002 4,476 34 Credit unions 31,382 32,741 32.069 2.866 2.909 2.821 2,918 2767 2,668 2,692 35 Retailers' 42,074 45,544 49.668 4,432 4.471 4.489 4,602 4561 4,629 4,610 36 Savings and loans 3,717 4,574 5.136 620 564 549 604 558 495 502 37 Gasoline companies 15,760 17,496 21.414 2,186 2.131 2.176 2,218 2,248 2,251 2,266 38 Mutual savings banks 1.789 1.971 1,810 174 176 171 183 170 146 150 Bv major tvpe of credit 39 Automobile 69.245 79.186 83,037 7,018 6,777 7,515 7,385 6,970 6,458 6,894 40 Commercial banks 42,036 46,697 46.999 3.888 3,899 3,835 3,866 3,675 3,548 3,595 41 Indirect paper 22,871 25,135 25,750 2,097 2,185 2,154 2,170 2,075 1,925 2,012 42 Direct loans 19,165 21,562 21,249 1,791 1.714 1,681 1,696 1,600 1,623 1,583 43 Credit unions 15,438 16,353 16,478 1.454 1.447 1,448 1,447 1,400 1,431 1,419 44 Finance companies 11,771 16,136 19,560 1,676 1.431 2,232 2,072 1,895 1,479 1,880 45 Revolving 96,090 111,546 126,655 11,484 11,514 11,554 11,650 11,713 11,473 12,042 46 Commercial banks 45,366 55,527 61,708 5,349 5.408 5,383 5.325 5.401 5,088 5,660 47 Retailers 34,964 38.523 43.533 3.949 3.975 3,995 4,107 4,064 4,134 4,116 48 Gasoline companies 15,760 17,496 21,414 2,186 2,131 2,176 2,218 2,248 2,251 2,266 49 Mobile home 5,126 4,868 4,610 553 406 366 399 384 360 368 50 Commercial banks 3,278 3,440 3.213 294 266 243 271 262 253 254 51 Finance companies 812 559 543 63 42 34 37 35 27 32 52 Savings and loans 885 708 716 172 85 78 79 74 68 69 53 Credit unions 151 161 138 24 13 11 12 13 12 13 54 Other 84,128 90,796 90.175 7,659 7,850 7,368 7,641 7,729 7,749 7,305 55 Commercial banks 28,112 30,908 30,097 2,533 2.758 2,608 2,407 2,663 2,960 2,404 56 Finance companies 28,492 30.803 32.260 2,633 2.492 2,262 2,572 2,651 2,496 2,564 57 Credit unions 15,793 16.227 15.453 1,388 1,449 1,362 1.459 1.354 1,225 1,260 58 Retailers 7,110 7,021 6,135 483 496 494 495 497 495 494 59 Savings and loans 2,832 3.866 4,420 448 479 471 525 484 427 433 60 Mutual savings banks 1,789 1.971 1,810 174 176 171 183 170 146 150 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
A44 Domestic Nonfinancial Statistics • November 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 1981 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997755 11997766 11997777 11997788 11997799 11998800 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total funds raised 211.8 273.6 336.6 395.6 387.0 371.9 404.9 385.0 389.0 339.0 404.9 419.3 2 Excluding equities 201.7 262.8 333.5 396.3 394.0 357.0 403.5 394.7 393.3 330.1 383.8 417.7 By sector and instrument 3 U.S. government 85.4 69.0 56.8 53.7 37.4 79.2 43.4 30.0 44.7 66.5 91.9 89.1 4 Treasury securities 85.8 69.1 57.6 55.1 38.8 79.8 45.3 32.3 45.2 67.2 92.4 89.5 5 Agency issues and mortgages -.4 -.1 -.9 -1.4 -1.4 -.6 -1.9 -2.3 -.5 -.6 -.6 -.4 6 All other nonfinancial sectors 126.4 204.6 279.9 342.0 349.6 292.7 361.5 355.0 344.3 272.5 313.0 330.2 7 Corporate equities 10.1 10.8 3.1 -.6 -7.1 15.0 1.4 -9.8 -4.3 8.9 21.0 1.6 8 Debt instruments 116.3 193.8 276.7 342.6 356.7 277.8 360.1 364.7 348.6 263.6 292.0 328.6 9 Private domestic nonfinancial sectors 114.9 185.0 266.0 308.7 328.6 263.4 318.2 341.0 316.1 241.3 285.6 282.5 10 Corporate equities 9.9 10.5 2.7 -.1 -7.8 12.9 1.6 -9.6 -6.1 6.9 18.8 .9 11 Debt instruments 105.0 174.5 263.2 308.8 336.4 250.6 316.6 350.6 322.2 234.4 266.8 281.5 12 Debt capital instruments 98.4 123.7 172.2 193.7 200.1 179.4 202.1 203.0 197.2 177.0 181.9 162.9 13 State and local obligations 16.1 15.7 21.9 26.1 21.8 26.9 26.8 20.9 22.7 21.6 32.1 27.8 14 Corporate bonds 27.2 22.8 21.0 20.1 21.2 30.4 21.0 21.7 20.7 35.3 25.6 19.5 Mortgages lb Home mortgages 39.5 64.0 96.3 108.5 113.7 81.7 116.7 117.6 109.8 76.5 87.0 75.8 1 1 6 7 M Co u m lt m ifa e m rc i i l a y l residential 11.*0 1 3 1 . . 9 6 1 7 8 . . 4 5 2 9 2 . . 4 1 2 7 4 . . 8 4 2 8 2 . . 5 4 2 8 0. . 5 5 2 8 3 . . 0 4 2 7 5 . . 6 4 2 8 4 . . 2 8 1 8 9 . . 8 9 1 7 9 . . 7 0 18 Farm 4.6 5.7 7.1 7.5 11.3 9.5 8.4 11.6 11.0 10.6 8.4 13.1 19 Other debt instruments 6.6 50.7 91.0 115.1 136.3 71.1 114.5 147.6 125.0 57.4 84.9 118.6 20 Consumer credit 9.6 25.4 40.2 47.6 46.3 2.3 47.0 50.9 41.6 -5.1 9.7 29.2 21 Bank loans n.e.c -10.5 4.4 26.7 37.1 49.2 37.3 30.5 55.5 42.8 13.5 61.2 35.9 22 Open market paper -2.6 4.0 2.9 5.2 11.1 6.6 7.1 8.0 14.2 24.8 -11.6 17.6 23 Other 10.1 16.9 21.3 25.1 29.7 24.9 30.0 33.1 26.4 24.1 25.6 36.0 24 By borrowing sector 114.9 185.0 266.0 308.7 328.6 263.4 318.2 341.0 316.1 241.3 285.6 282.5 25 State and local governments 13.7 15.2 17.3 20.9 18.4 25.3 23.3 17.9 18.9 19.7 30.9 24.6 26 Households 49.6 89.6 139.1 164.3 170.6 101.7 173.5 179.1 162.1 94.2 109.1 121.2 27 Farm 8.5 10.2 12.3 15.0 20.8 14.5 17.1 21.2 20.4 17.9 11.1 25.9 28 Nonfarm noncorporate 1.4 5.7 12.7 15.3 14.0 15.8 13.0 13.5 14.5 11.0 20.6 17.3 29 Corporate 1.7 64.3 84.6 93.2 104.8 106.1 91.3 109.3 100.2 98.4 113.8 93.6 30 Foreign 11.5 19.6 13.9 33.2 21.0 29.3 43.2 14.0 28.1 31.2 27.4 47.8 31 Corporate equities .2 .3 .4 -.5 .8 2.1 -.3 -.2 1.7 1.9 2.2 .6 32 Debt instruments 11.3 19.3 13.5 33.8 20.3 27.2 43.5 14.1 26.4 29.2 25.2 47.1 33 Bonds 6.2 8.6 5.1 4.2 3.9 .8 3.1 2.8 4.9 2.0 -.4 3.2 34 Bank loans n.e.c 2.0 5.6 3.1 19.1 2.3 11.5 26.5 2.1 2.4 6.1 17.0 18.6 35 Open market paper .3 1.9 2.4 6.6 11.2 10.1 9.6 6.1 16.3 15.7 4.5 20.6 36 U.S. government loans 2.8 3.3 3.0 3.9 3.0 4.7 4.2 3.1 2.8 5.4 4.0 4.7 Financial sectors 37 Total funds raised 9.7 23.4 51.4 76.8 84.3 66.7 75.2 87.8 80.8 59.8 73.5 88.6 By instrument 38 U.S. government related 10.3 15.1 21.9 36.7 48.2 43.0 39.0 43.7 52.8 44.7 41.3 37.2 39 Sponsored credit agency securities 2.3 3.3 7.0 23.1 24.3 24.4 24.9 21.2 27.3 25.1 23.7 24.1 40 Mortgage pool securities 7.1 12.2 16.1 13.6 24.0 18.6 14.1 22.5 25.5 19.6 17.6 13.0 41 Loans from U.S. government .9 -.4 -1.2 0 0 0 0 0 0 0 0 0 42 Private financial sectors -.6 8.2 29.5 40.1 36.0 23.7 36.2 44.1 28.0 15.2 32.2 51.4 43 Corporate equities .5 -.2 2.6 1.8 2.5 6.2 .5 3.6 1.4 7.1 5.2 9.9 44 Debt instruments -1.1 8.4 26.9 38.3 33.6 17.5 35.8 40.6 26.6 8.1 27.0 41.5 45 Corporate bonds 3.2 9.8 10.1 7.5 7.8 7.1 7.1 8.2 7.5 10.1 4.2 -1.0 46 Mortgages 2.3 2.1 3.1 .9 -1.2 -.9 -.7 .3 -2.6 -5.8 4.0 -2.3 47 Bank loans n.e.c -3.7 -3.7 -.3 2.8 -.4 -.5 3.0 -1.4 .6 * -.9 1.5 48 Open market paper and RPs 1.1 2.2 9.6 14.6 18.2 4.6 15.0 25.4 10.9 -.8 10.1 25.3 49 Loans from Federal Home Loan Banks -4.0 -2.0 4.3 12.5 9.2 7.1 11.5 8.2 10.1 4.6 9.6 18.0 By sector 50 Sponsored credit agencies 3.2 2.9 5.8 23.1 24.3 24.4 24.9 21.2 27.3 25.1 23.7 24.1 51 Mortgage pools 7.1 12.2 16.1 13.6 24.0 18.6 14.1 22.5 25.5 19.6 17.6 13.0 52 Private financial sectors -.6 8.2 29.5 40.1 36.0 23.7 36.2 44.1 28.0 15.2 32.2 51.4 53 Commercial banks 1.2 2.3 1.1 1.3 1.6 .5 1.1 1.3 1.8 .8 .3 .1 54 Bank affiliates .6 5.4 2.0 7.2 6.5 6.9 8.2 8.0 4.9 5.8 8.0 7.8 55 Savings and loan associations -2.3 .1 9.9 14.3 11.4 6.9 11.4 11.1 11.7 -1.4 15.2 17.1 56 Other insurance companies 1.0 .9 1.4 .8 .9 .9 .8 .9 .9 .9 .9 .9 57 Finance companies .5 4.3 16.9 18.1 16.8 5.8 17.5 22.7 10.9 5.2 6.3 17.3 58 REITs -1.3 -2.2 -2.3 -1.1 -.4 -1.7 -1.1 -.6 -.2 -1.4 -2.0 -1.2 59 Open-end investment companies -.3 -2.4 .4 -.5 -.6 4.4 -1.7 .7 -1.9 5.3 3.4 9.5 All sectors 60 Total funds raised, by instrument 221.5 297.0 388.0 472.5 471.3 438.6 480.1 472.8 469.7 398.8 478.4 507.8 61 Investment company shares -.3 -2.4 .4 -.5 -.6 4.4 -1.7 .7 -1.9 5.3 3.4 9.5 62 Other corporate equities 10.9 13.1 5.3 1.7 -4.0 16.8 3.6 -6.9 -1.0 10.7 22.8 2.0 63 Debt instruments 210.9 286.4 382.3 471.3 475.8 417.5 478.3 479.0 472.6 382.9 452.1 496.4 64 U.S. government securities 94.9 84.6 79.9 90.5 85.7 122.3 82.5 73.8 97.6 111.3 133.2 126.3 6b State and local obligations 16.1 15.7 21.9 26.1 21.8 26.9 26.8 20.9 22.7 21.6 32.1 27.8 66 Corporate and foreign bonds 36.7 41.2 36.1 31.8 32.8 38.4 31.2 32.6 33.0 47.4 29.5 21.7 67 Mortgages 57.2 87.2 132.3 148.3 155.9 121.1 153.4 160.6 151.1 114.2 128.0 113.2 68 Consumer credit 9.6 25.4 40.2 47.6 46.3 2.3 47.0 50.9 41.6 -5.1 9.7 29.2 69 Bank loans n.e.c -12.2 6.2 29.5 59.0 51.0 48.4 60.0 56.2 45.8 19.6 77.2 56.0 70 Open market paper and RPs -1.2 8.1 15.0 26.4 40.5 21.4 31.6 39.5 41.5 39.7 3.1 63.5 71 Other loans 9.8 17.8 27.4 41.5 41.9 36.7 45.7 44.4 39.3 34.1 39.3 58.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Flow of Funds A45 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 1981 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997755 11997766 11997777 11997788 11997799 11998800 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors 201.7 262.8 333.5 396.3 394.0 357.0 403.5 394.7 393.3 330.1 383.8 417.7 By public agencies and foreign ? Total net advances 39.6 49.8 79.2 101.9 74.0 92.1 102.7 49.6 98.5 102.9 81.3 114.6 3 U.S. government securities 18.0 23.1 34.9 36.1 -6.2 15.6 29.5 -27.1 14.7 23.2 8.0 28.9 4 Residential mortgages 15.8 12.3 20.0 25.7 36.7 31.1 30.1 35.7 37.8 33.3 28.9 21.2 5 FHLB advances to savings and loans -4.0 -2.0 4.3 12.5 9.2 7.1 11.5 8.2 10.1 4.6 9.6 18.0 6 Other loans and securities 9.8 16.4 20.1 27.6 34.3 38.2 31.6 32.8 35.8 41.7 34.8 46.5 Total advanced, by sector 7 U.S. government 13.4 7.9 10.0 17.1 19.0 23.7 20.8 19.8 18.3 25.4 22.1 30.1 8 Sponsored credit agencies 11.6 16.8 22.4 39.9 53.4 43.8 44.8 47.8 58.9 42.4 45.2 44.6 9 Monetary authorities 8.5 9.8 7.1 7.0 7.7 4.5 .5 -.9 16.2 12.1 -3.1 -7.4 10 Foreign 6.1 15.2 39.6 38.0 -6.1 20.0 36.7 -17.2 5.1 23.0 17.0 47.3 11 Agency borrowing not included in line1 10.3 15.1 21.9 36.7 48.2 43.0 39.0 43.7 52.8 44.7 41.3 37.2 Private domestic funds advanced 12. Total net advances 172.4 228.1 276.2 331.0 368.2 307.9 339.8 388.9 347.6 271.9 343.8 340.3 13 U.S. government securities 76.9 61.5 45.1 54.3 91.9 106.7 53.0 101.0 82.9 88.1 125.3 97.5 14 State and local obligations 16.1 15.7 21.9 26.1 21.8 26.9 26.8 20.9 22.7 21.6 32.1 27.8 15 Corporate and foreign bonds 32.8 30.5 22.2 22.4 24.0 26.2 22.3 24.0 24.0 32.5 19.9 15.1 16 Residential mortgages 23.6 55.5 83.7 92.1 84.6 59.1 95.0 89.8 79.5 51.2 66.9 62.1 17 Other mortgages and loans 18.9 62.9 107.7 148.6 155.1 96.2 154.2 161.4 148.7 83.1 109.3 155.8 18 LESS: Federal Home Loan Bank advances -4.0 -2.0 4.3 12.5 9.2 7.1 11.5 8.2 10.1 4.6 9.6 18.0 Private financial intermediation 19 Credit market funds advanced by private financial institutions 123.4 191.4 260.9 302.4 292.5 270.3 294.8 316.9 268.0 246.1 294.4 317.6 20 Commercial banking 29.4 59.6 87.6 128.7 121.1 99.7 124.6 130.3 112.0 58.5 140.9 102.2 21 Savings institutions 53.2 70.5 82.0 73.5 55.9 58.4 69.4 59.6 52.2 35.5 81.3 43.0 22 Insurance and pension funds 40.6 49.7 67.8 75.0 66.4 79.8 73.9 72.3 60.5 89.2 70.3 76.1 23 Other finance .3 11.6 23.4 25.2 49.0 32.4 27.0 54.8 43.3 62.8 1.9 96.3 74 Sources of funds 123.4 191.4 260.9 302.4 292.5 270.3 294.8 316.9 268.0 246.1 294.4 317.6 25 Private domestic deposits 94.2 124.4 138.9 140.8 143.2 171.1 132.9 135.1 151.2 158.7 183.6 206.9 26 Credit market borrowing -1.1 8.4 26.9 38.3 33.6 17.5 35.8 40.6 26.6 8.1 27.0 41.5 27 Other sources 30.3 58.5 95.1 123.2 115.7 81.6 126.1 141.2 90.3 79.4 83.8 69.1 28 Foreign funds -8.7 -4.7 1.2 6.3 25.6 -22.3 11.8 45.6 5.6 -22.8 -21.9 -8.9 29 Treasury balances -1.7 -.1 4.3 6.8 .4 -2.6 12.4 5.0 -4.2 -2.3 -2.8 .9 30 Insurance and pension reserves 29.7 34.3 50.1 62.2 47.8 64.1 60.8 52.3 43.4 70.0 58.1 54.6 31 Other, net 11.0 29.0 39.5 48.0 41.9 42.4 41.1 38.4 45.4 34.5 50.4 22.5 Private domestic nonfinancial investors 32 Direct lending in credit markets 47.9 45.1 42.2 67.0 109.3 55.1 80.7 112.5 106.1 33.9 76.4 64.2 33 U.S. government securities 25.4 16.4 24.1 35.6 62.8 32.6 37.8 71.0 54.5 19.3 45.8 20.2 34 State and local obligations 8.4 3.3 -.8 1.4 1.4 3.1 .8 2.6 .2 -1.8 7.9 18.2 35 Corporate and foreign bonds 8.9 11.8 -3.8 -2.9 10.3 3.6 * 4.6 16.0 4.8 2.3 -3.4 36 Commercial paper -1.3 1.9 9.6 16.5 11.4 -3.8 23.1 11.4 11.4 -4.5 -3.1 4.4 37 Other 6.6 11.7 13.2 16.4 23.5 19.7 19.1 22.9 24.0 16.0 23.3 24.9 38 Deposits and currency 101.2 133.4 148.5 152.1 152.6 182.3 143.0 149.3 155.9 167.6 197.1 222.1 39 Currency 6.2 7.3 8.3 9.3 7.9 10.3 8.7 9.0 6.9 8.5 12.1 3.8 40 Checkable deposits 9.4 10.4 17.2 16.3 19.2 4.2 13.8 16.6 21.9 -1.5 9.9 21.2 41 Small time and savings accounts 97.3 123.7 93.5 63.5 61.7 80.9 65.8 66.5 56.9 66.7 95.2 17.9 42 Money market fund shares 1.3 * .2 6.9 34.4 29.2 7.7 30.2 38.6 61.9 -3.4 104.1 43 Large time deposits -14.0 -12.0 25.8 46.6 21.2 50.3 40.6 3.3 39.1 26.3 74.2 46.9 44 Security RPs .2 2.3 2.2 7.5 6.6 6.5 5.1 18.5 -5.3 5.3 7.8 16.8 45 Foreign deposits .8 1.7 1.3 2.0 1.5 .9 1.4 5.2 -2.3 .4 1.3 11.3 46 Total of credit market instruments, deposits and currency 149.1 178.5 190.7 219.1 261.9 237.5 223.7 261.8 262.0 201.5 273.4 286.3 47 Public support rate (in percent) 19.6 19.0 23.7 25.7 18.8 25.8 25.5 12.6 25.0 31.2 21.2 27.4 48 Private financial intermediation (in percent) 71.6 83.9 94.4 91.3 79.4 87.8 86.8 81.5 77.1 90.5 85.6 93.3 49 Total foreign funds -2.6 10.5 40.8 44.3 19.5 -2.3 48.5 28.4 10.7 .2 -4.8 38.4 MEMO: Corporate equities not included above 50 Total net issues 10.6 10.6 5.7 1.2 -4.6 21.1 1.8 -6.2 -2.9 16.0 26.3 11.4 51 Mutual fund shares -.3 -2.4 .4 -.5 -.6 4.4 -1.7 .7 -1.9 5.3 3.4 9.5 52 Other equities 10.9 13.1 5.3 1.7 -4.0 16.8 3.6 -6.9 -1.0 10.7 22.8 2.0 53 Acquisitions by financial institutions 9.8 12.5 7.4 4.5 10.6 17.7 6.9 7.1 14.0 10.5 24.9 25.2 54 Other net purchases .8 -1.9 -1.6 -3.4 -15.1 3.4 -5.0 -13.4 -16.9 5.5 1.4 -13.7 NOTES BY LINE NUMBER. 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of table 1.58. 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. 39. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum 46. Lines 32 plus 38. or line 12 less line 27 plus 39 and 45. of lines 27, 32, and 38 less lines 40 and 46. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Line 38 less lines 40 and 46. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes line 18. 50. 52. Includes issues by financial institutions. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, NOTE. Full statements for sectors and transaction types quarterly, and annually and liabilities of foreign banking agencies to foreign affiliates. for flows and for amounts outstanding, may be obtained from Flow of Funds 29. Demand deposits at commercial banks. Section. Division of Research and Statistics. Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A46 Domestic Nonfinancial Statistics • November 1981 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1981 MMeeaassuurree 11997788 11997799 11998800 Feb. Mar. Apr. May June Julyr Aug/ Sept.r Oct. 1 Industrial production1 146.1 152.5 147.0 151.8 152.1 151.9 152.7 152.9 153.9 153.6 151.8 149.5 Market groupings 2 Products, total 144.8 150.0 146.7 150.2 150.7 151.3 152.3 152.2 153.0 152.6 151.2 149.7 3 Final, total 135.9 147.2 145.3 148.2 149.0 149.9 151.3 151.4 152.1 151.5 150.4 149.4 4 Consumer goods 149.1 150.8 145.4 147.6 148.3 148.9 150.7 150.3 150.7 149.6 148.3 147.0 Equipment 132.8 142.2 145.2 148.7 150.0 151.4 152.1 153.0 154.1 154.0 153.2 152.6 6 Intermediate 154.1 160.5 151.9 157.7 157.1 156.3 156.1 154.9 156.2 156.9 154.1 150.7 7 Materials 148.3 156.4 147.6 154.3 154.4 152.9 153.4 154.0 155.3 155.2 152.8 149.3 Industry groupings 8 Manufacturing 146.7 153.6 146.7 151.2 151.6 152.0 152.8 152.4 153.2 153.1 151.2 148.7 Capacity utilization (percent)12 9 Manufacturing 84.4 85.7 79.1 79.8 79.8 79.8 80.0 79.6 79.8 79.6 78.4 76.9 10 Industrial materials industries 85.6 87.4 80.0 82.3 82.1 81.1 81.2 81.3 81.9 81.6 80.2 78.2 11 Construction contracts (1972 = 100)3 174.1 185.6 161.8 177.0 183.0 172.0 160.0 170.0 153.0 156.0 159.0 n.a. 12 Nonagricultural employment, total4 131.8 136.5 137.6 138.7 138.8 139.0 139.1 139.2 139.6 139.7 139.7 139.4 13 Goods-producing, total 109.8 113.5 110.3 110.0 110.1 110.3 110.3 110.8 111.3 111.3 111.2 110.0 14 Manufacturing, total 105.4 108.2 104.4 103.8 103.8 104.6 105.0 104.1 105.6 105.4 105.4 104.0 If) Manufacturing, production-worker 103.0 105.3 99.4 98.2 98.4 99.2 99.6 99.6 100.1 99.9 99.9 98.1 16 Service-producing 143.8 149.1 152.6 154.4 154.5 154.7 155.0 154.8 155.2 155.2 155.4 155.6 17 Personal income, total 273.3 308.5 342.9 368.0 371.5 373.6 375.8r 378.5 383.8 387.5 390.6 n.a. 18 Wages and salary disbursements 258.8 289.5 314.7 337.9 340.2 341.8 343.6 345.2 347.8 351.2 353.4 n.a. 19 Manufacturing 223.1 248.6 261.5 281.3 282.9 286.1 289.2 289.9 292.1 294.1 296.4 n.a. 20 Disposable personal income5 267.0 299.6 332.5 355.3 358.7 360.1 362.3 364.4 369.5 372.4 375.1 n.a. 21 Retail sales6 253.8 281.6 303.8 331.7 334.8 328.1 326.7 3.339 3.338 3.385 3.383 3.331 Prices7 22 Consumer 195.4 217.4 246.8 263.2 265.1 226.8 269.0 271.3 274.4 276.5 279.3 n.a. 23 Producer finished goods 194.6 216.1 246.9 263.3r 266.0r 268.5r 269.6r 269.9 271.3 271.2 271.2 271.1 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 SSeerriieess Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 148.6 151.3 152.4 152.5 187.9 189.4 190.9 192.4 79.1 79.9 79.8 79.3 2 Primary processing 152.7 157.5 156.5 155.8 192.5 193.8 195.0 196.3 79.3 81.3 80.3 79.4 3 Advanced processing 146.2 148.1 150.2 150.7 185.5 187.1 188.7 190.4 78.8 79.1 79.6 79.2 4 Materials 149.4 154.2 153.4 152.8 186.4 187.6 188.9 190.1 80.1 82.2 81.2 81.2 5 Durable goods 144.3 150.9 152.3 152.4 190.6 191.8 192.9 194.0 75.7 78.7 79.0 78.8 6 Metal materials 109.4 117.5 112.8 114.1 141.3 141.5 141.7 141.9 77.4 83.0 79.6 80.4 7 Nondurable goods 176.3 179.2 178.4 175.8 205.3 207.3 209.2 211.2 85.9 86.5 85.3 83.3 8 Textile, paper, and chemical 183.7 186.7 185.9 182.9 214.9 217.1 219.4 221.7 85.5 86.0 84.8 82.5 9 Textile 113.7 114.8 114.5 115.6 139.7 140.1 140.6 141.0 81.4 81.9 81.4 81.9 10 Paper 149.7 151.4 151.0 152.4 158.5 159.7 160.7 161.9 94.5 94.8 93.9 94.2 11 Chemical 228.2 232.7 231.6 224.9 270.5 274.1 277.5 281.0 84.3 84.9 83.5 80.0 12 Energy materials 128.2 130.9 125.1 132.0 152.8 153.5 154.2 155.0 83.9 85.3 81.1 85.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Labor Market A47 2.11 Continued Previous cycle1 Latest cycle2 1980 1981 High Low High Low Sept. Feb. Mar. Apr. May June' July' Aug.' Sept. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 77.0 79.8 79.8 79.8 80.0 79.6 79.8 79.6 78.4 14 Primary processing 93.8 68.2 90.1 71.0 75.6 81.5 80.8 80.7 80.6 79.5 80.1 79.9 78.2 15 Advanced processing 85.5 69.4 86.2 77.2 77.7 79.0 79.2 79.4 79.8 79.7 79.8 79.4 78.4 16 Materials 92.6 69.4 88.8 73.8 76.8 82.3 82.1 81.1 81.2 81.3 81.9 81.6 80.2 17 Durable goods 91.5 63.6 88.4 68.2 70.5 78.5 79.2 78.8 79.2 78.9 79.3 79.5 77.4 18 Metal materials 98.3 68.6 96.0 59.6 63.6 83.2 83.9 79.9 80.3 78.7 79.5 83.0 78.8 19 Nondurable goods 94.5 67.2 91.6 77.5 83.9 86.8 85.4 85.9 85.6 84.3 83.9 83.2 82.8 20 Textile, paper, and chemical.... 95.1 65.3 92.2 75.3 82.6 86.3 85.0 85.5 85.4 83.5 83.2 82.4 82.0 71 Textile 92.6 57.9 90.6 80.9 82.0 82.2 81.5 81.9 81.7 80.5 82.0 82.3 81.6 72 Paper 99.4 72.4 97.7 89.3 93.8 94.5 95.3 94.9 93.9 93.0 92.2 94.0 95.6 23 Chemical 95.5 64.2 91.3 70.7 80.3 85.3 83.4 84.1 84.3 82.0 81.2 79.9 79.1 24 Energy materials 94.6 84.8 88.3 82.7 83.8 85.8 85.2 79.9 79.8 83.7 86.2 85.3 84.1 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. 1981 CCaatteeggoorryy 11997788 11997799 11998800 Apr. May June July Aug. Sept. Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 161,058 163,620 166,246 168,071 168,272 168,480 168,685 168,855 169,049 169,252 2 Labor force (including Armed Forces)' ... 102,537 104,996 106,821 108.851 109,533 108,307 108.603 108,762 108,401 108,894 3 Civilian labor force 100,420 102,908 104,719 106,722 107,406 106,176 106,464 106,602 106,236 106,736 4 Nonagricultural industries2 91,031 93,648 93,960 95,513 95,882 95,127 95,704 95,574 94,959 94,880 5 Agriculture 3,342 3,297 3,310 3,463 3,353 3,265 3,258 3,370 3,310 3,337 6 Number.' 6,047 5,963 7,448 7,746 8,171 7,784 7,502 7,657 7,966 8,520 7 Rate (percent of civilian labor force) . 6.0 5.8 7.1 7.3 7.6 7.3 7.0 7.2 7.5 8.0 8 Not in labor force 58,521 58,623 59,425 59,219 58,739 60,173 60,082 60,093 60,648 60,359 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 86,697 89,823 90,564 91,458 91,564 91,615 91,880 91,901r 91,948r 91,743 10 Manufacturing 20,505 21,040 20,300 20,332 20,414 20,424 20,535 20,505r 20,500r 20,225 11 Mining 851 958 1,020 950 957 1,110 1,132 1,151' 1,157'' 1,158 12 Contract construction 4.229 4,463 4,399 4,418 4,334 4,284 4,272 4.275r 4,268r 4,249 13 Transportation and public utilities 4,923 5,136 5,143 5,161 5,148 5,149 5,167 5.170r 5,191r 5,194 14 Trade 19.542 20,192 20,386 20,636 20,714 20,717 20,796 20.862r 20,879r 20,910 15 Finance 4,724 4.975 5,168 5,316 5,326 5,331 5,344 5,354 5,358r 5.348 16 Service 16,252 17,112 17,901 18,475 18,540 18,560 18,642 18,667r 18,791r 18,839 17 Government 15,672 15,947 16,249 16.170 16,131 16,040 15,992 15,917r 15,804r 15,820 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 workfigures. 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
A48 Domestic Nonfinancial Statistics • November 1981 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 11998800 1980 1981 Grouping pro- aavveerr-por- aaggee tion Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July Aug. Sept.P Oct.e Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.0 146.6 149.2 150.4 151.4 151.8 152.1 151.9 152.7 152.9 153.9 153.6 151.8 149.5 2 Products 60.71 146.7 147.1 148.7 149.4 149.9 150.2 150.7 151.3 152.3 152.2 153.0 152.6 151.2 149.7 3 Final products 47.82 145.3 145.7 147.4 147.8 147.8 148.2 149.0 149.9 151.3 151.4 152.1 151.5 150.4 149.4 4 Consumer goods 27.68 145.4 146.3 148.1 147.1 146.9 147.8 148.3 148.9 150.7 150.3 150.7 149.6 148.3 147.0 5 Equipment 20.14 145.2 144.8 146.5 148.8 149.1 148.7 150.0 151.4 152.1 153.0 154.1 154.0 153.2 152.6 6 Intermediate products 12.89 151.9 152.4 153.4 155.4 157.5 157.7 157.1 156.3 156.1 154.9 156.2 156.9 154.1 150.7 7 Materials 39.29 147.6 145.9 150.1 152.2 153.8 154.3 154.4 152.9 153.4 154.0 155.3 155.2 152.8 149.3 Consumer goods 8 Durable consumer goods 7.89 136.7 139.(1 143.4 141.3 140.1 141.2 143.6 144.3 147.3 147.9 146.5 142.5 140.5 137.0 9 Automotive products 2.83 132.8 140.9 146.1 139.0 130.4 133.9 139.2 142.9 151.8 153.1 147.6 137.6 138.2 131.7 10 Autos and utility vehicles.... 2.03 110.1 119.2 125.4 116.2 102.7 108.5 116.1 120.2 129.1 131.4 123.0 107.8 110.0 101.4 11 Autos 1.90 103.6 109.7 115.4 105.9 93.3 101.1 107.8 113.2 120.0 122.2 118.1 104.0 103.3 92.5 12 Auto parts and allied goods.. 80 190.4 196.1 198.6 197.0 200.8 198.4 197.5 200.8 209.5 208.0 210.0 213.1 209.9 208.5 13 Home goods 5.06 138.9 137.8 141.8 142.6 145.6 145.2 146.1 145.0 144.8 145.0 145.8 145.3 141.7 140.1 14 Appliances, A/C, and TV ... 1.40 117.3 122.2 128.4 126.4 132.2 125.8 129.1 121.2 121.4 120.0 123.6 126.8 119.1 117.2 15 Appliances and TV 1.33 119.5 124.5 131.0 128.7 134.1 128.2 131.2 122.6 122.3 121.4 124.8 128.9 121.5 16 Carpeting and furniture 1.07 155.2 150.2 154.1 157.3 156.2 160.4 160.2 165.2 163.1 166.3 163.2 160.1 157.4 17 Miscellaneous home goods.. . 2.59 143.8 141.2 144.0 145.4 148.4 149.5 149.4 149.7 149.9 149.8 150.7 149.2 147.5 147.0 18 Nondurable consumer goods 19.79 148.9 149.3 150.0 149.3 149.6 150.5 150.1 150.7 152.1 151.2 152.3 152.4 151.5 150.9 19 Clothing 4.29 126.0 122.5 125.5 121.0 121.2 120.9 118.9 120.6 122.1 120.9 122.8 122.2 20 Consumer staples 15.50 155.2 156.7 156.7 157.2 157.5 158.6 158.8 159.0 160.3 159.6 160.5 160.8 160.2 159.6 21 Consumer foods and tobacco 8.33 147.4 148.9 149.1 149.0 149.3 150.5 150.5 150.2 151.3 149.6 150.5 150.6 149.7 22 Nonfood staples 7.17 164.3 165.8 165.6 166.6 167.(1 168.1 168.4 169.3 170.8 171.3 172.2 172.7 172.3 171.9 23 Consumer chemical products 2.63 208.9 211.1 211.0 213.8 213.(1 219.3 220.0 224.1 225.1 224.4 226.8 226.7 227.4 24 Consumer paper products . 1.92 123.1 125.8 128.3 127.7 127.9 129.(1 128.7 127.4 127.7 129.2 127.6 128.9 128.9 25 Consumer energy products 2.62 149.8 149.6 147.3 147.8 149.4 145.4 143.7 144.9 147.9 148.9 150.0 150.6 114488..99 26 Residential utilities 1.45 167.9 169.6 166.0 166.2 167.5 161.3 161.1 162.9 168.9 170.4 172.6 169.8 Equipment 27 Business 12.63 173.2 171.9 173.9 177.1 177.7 177.5 179.3 181.0 182.0 183.6 184.8 184.5 182.7 181.7 28 Industrial 6.77 156.5 153.5 155.3 159.1 161.5 163.4 164.6 165.9 167.0 169.0 169.4 170.3 168.3 166.9 29 Building and mining 1.44 239.9 242.8 247.9 253.3 264.0 270.4 276.6 281.7 286.4 289.7 290.3 292.8 293.7 293.8 30 Manufacturing 3.85 128.2 123.1 124.3 128.5 127.7 128.4 128.6 128.5 128.4 130.6 130.8 131.1 128.0 126.0 31 Power 1.47 148.9 145.4 145.3 146.5 149.1 149.9 149.3 149.9 150.8 151.2 151.6 152.7 150.9 149.3 32 Commercial transit, farm 5.86 192.4 193.1 195.4 198.0 196.6 193.7 196.2 198.6 199.4 200.4 202.5 200.9 199.3 198.9 33 Commercial 3.26 237.8 242.0 244.8 248.5 249.3 250.4 252.7 254.5 258.0 259.9 263.7 264.3 264.4 264.0 34 Transit 1.93 139.9 135.6 137.5 139.0 133.1 124.8 127.8 131.5 130.0 129.7 128.4 124.6 121.5 121.8 35 Farm 67 123.1 120.9 121.9 122.4 122.9 116.4 118.5 119.7 113.9 114.9 118.0 111.8 107.0 36 Defense and space 7.51 98.2 99.2 100.3 101.(1 100.9 100.5 100.7 101.5 102.0 101.7 102.6 102.7 103.6 103.8 Intermediate products 37 Construction supplies 6.42 140.9 140.6 142.6 145.2 148.4 148.9 149.0 147.9 146.5 143.4 144.3 144.0 139.3 134.0 38 Business supplies 6.47 162.8 164.1 164.2 165.5 166.6 166.4 165.1 164.7 165.6 166.2 168.0 169.7 168.8 39 Commercial energy products. .. 1.14 172.3 173.2 174.0 175.4 175.5 174.(1 174.7 175.2 179.0 177.7 180.0 178.3 174.8 Materials 40 Durable goods materials 20.35 143.0 139.5 146.1 147.4 150.0 150.6 152.2 151.8 152.8 152.4 153.6 154.2 150.5 145.6 41 Durable consumer parts 4.58 107.8 108.3 113.1 113.8 114.7 114.3 118.4 119.7 121.1 123.1 123.2 121.7 114.9 105.4 42 Equipment parts 5.44 187.2 179.1 184.2 186.1 189.7 188.9 191.1 192.8 194.0 193.2 193.8 194.7 192.6 190.6 43 Durable materials n.e.c 10.34 135.3 132.4 140.6 142.0 144.7 146.6 146.7 144.3 145.1 143.9 145.9 147.3 144.2 139.6 44 Basic metal materials 5.57 105.3 100.7 114.7 114.3 116.6 118.6 118.3 113.8 114.3 112.8 114.5 117.4 112.7 45 Nondurable goods materials 10.47 171.5 174.3 175.1 179.6 180.2 179.9 177.5 179.3 179.0 176.9 176.5 175.6 175.3 172.5 46 Textile, paper, and chemical materials 7.62 177.7 180.8 182.4 187.6 187.6 187.3 185.1 186.8 187.3 183.7 183.5 182.7 182.4 179.5 47 Textile materials 1.85 117.4 113.7 115.2 112.2 114.8 115.1 114.4 115.1 114.9 113.4 115.5 116.0 115.3 48 Paper materials 1.62 145.6 148.6 149.5 151.1 150.5 151.0 152.6 152.2 150.9 149.8 150.0 152.2 155.0 49 Chemical materials 4.15 217.2 223.4 22S 2 235.9 234.7 233.8 229.5 232.4 233.9 228.4 227.1 224.4 223.1 50 Containers, nondurable 1.70 165.9 168.9 166.5 169.9 173.0 172.3 168.7 172.0 167.8 171.4 171.7 169.4 170.0 51 Nondurable materials n.e.c. ... 1.14 138.2 138.4 139.2 139.7 141.(1 141.8 139.6 139.7 140.5 139.6 136.6 137.8 136.0 52 Energy materials 8.48 129.3 126.2 128.9 129.6 130.2 131.6 130.9 123.1 123.0 129.3 133.3 132.2 130.5 129.4 53 Primary energy 4.65 115.2 113.9 114.4 116.0 115.8 118.2 116.9 104.2 104.4 113.7 120.3 120.1 117.7 54 Converted fuel materials 3.82 146.5 141.3 146.5 146.1 147.8 148.(1 148.1 146.1 145.5 148.2 149.2 147.1 146.0 Supplementary groups 55 Home goods and clothing 9.35 133.0 130.8 134.3 132.7 134.4 134.1 133.6 133.8 134.4 133.9 135.2 134.7 131.7 130.7 56 Energy, total 12.23 137.7 135.6 137.0 137.7 138.5 138.5 137.7 132.6 133.5 138.0 141.2 140.5 138.5 137.6 57 Products 3.76 156.6 156.8 155.4 156.1 157.3 154.0 153.1 154.1 157.3 157.6 159.1 159.0 156.8 58 Materials 8.48 129.3 126.2 128.9 129.6 130.2 131.6 130.9 123.1 123.0 129.3 133.3 132.2 130.5 129.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Output A49 2.13 Continued 1967 1980 Grouping c S o I d C e p p r o o r - - 1 a 9 v 8 g 0 . tion Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July Aug. Sept.'' Oct Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 149.5 148.9 151.5 152.4 153.3 154.1 154.8 150.5 152.1 156.3 159.1 158.2 157.5 157.3 2 Mining 6.36 132.7 132.1 135.1 138.6 140.4 143.1 143.2 135.2 135.4 141.7 146.5 145.9 144.9 144.9 3 Utilities 5.69 168.3 167.7 169.9 167.9 167.6 166.4 167.8 167.6 170.7 172.7 173.1 171.9 171.5 171.2 4 Electric 3.88 189.7 189.6 192.6 189.5 189.3 187.1 188.9 188.6 192.9 195.6 196.2 194.2 193.6 193.3 5 Manufacturing 87.95 146.7 146.5 148.9 150.4 151.1 151.2 151.6 152.0 152.8 152.4 153.2 153.1 151.2 148.7 6 Nondurable 35.97 161.2 162.1 163.0 165.0 165.6 166.2 165.3 165.9 166.4 165.8 167.1 167.4 166.1 163.9 7 Durable 51.98 136.7 135.7 139.2 140.3 141.0 140.8 142.1 142.5 143.5 143.2 143.6 143.3 140.9 138.2 Mining 8 Metal 10 .51 109.2 90.8 107.2 122.2 125.5 134.1 131.1 123.1 125.0 123.5 123.6 123.9 120.1 9 Coal 11.12 .69 146.7 149.7 151.7 153.5 147.5 159.0 151.2 75.9 77.0 122.9 170.0 168.4 159.9 161.8 10 Oil and gas extraction ... 13 4.40 133.3 134.5 136.1 138.4 141.4 142.2 144.1 146.1 146.2 148.2 147.7 147.8 148.5 149.1 11 Stone and earth minerals. 14 .75 132.8 129.8 132.7 137.4 138.4 140.0 138.8 133.7 132.2 132.7 133.3 129.2 127.0 Nondurable manufactures 12 Foods 8.75 149.6 151.1 151.6 151.0 151.9 152.5 152.4 151.9 152.2 151.3 151.6 151.9 13 Tobacco products .67 119.9 123.6 123.5 118.8 123.5 125.4 125.7 122.2 122.3 120.9 121.3 123.8 14 Textile mill products 2.68 138.6 134.3 136.4 135.6 138.4 139.3 136.2 138.9 138.8 138.3 139.4 140.7 137.7 15 Apparel products 3.31 127.0 121.7 125.7 122.7 123.8 121.6 120.2 121.6 122.6 121.1 122.6 123.7 16 Paper and products 3.21 151.1 153.4 154.3 157.0 156.5 156.0 157.6 157.0 155.9 153.4 154.9 156.7 158.4 154.6 17 Printing and publishing 4.72 139.6 142.5 142.1 143.0 143.9 144.8 142.7 141.6 141.3 143.1 144.4 146.1 146.4 145.6 18 Chemicals and products 7.74 207.1 209.4 211.7 220.5 218.9 219.8 218.5 219.8 220.6 218.4 221.5 219.4 217.1 19 Petroleum products 1.79 132.9 128.0 128.6 131.3 133.1 131.5 130.3 130.0 129.8 129.3 128.7 130.7 128.4 126.l' 20 Rubber ana plastic products. 2.24 235.7 258.8 258.9 262.3 264.0 270.2 269.5 275.2 280.3 285.1 285.3 285.9 280.4 21 Leather and products 70.1 70.1 71.0 67.9 68.9 68.3 68.8 68.9 69.8 68.4 70.1 68.6 67.9 Durable manufactures 22 Ordnance, private and government 19.91 3.64 78.5 79.4 79.7 79.6 78.6 78.4 78.5 79.8 80.9 80.9 80.6 81.7 82.6 82.9 23 Lumber and products 24 1.64 119.3 121.4 123.7 123.6 127.4 126.2 125.6 126.3 126.2 122.5 122.9 119.3 112.8 24 Furniture ana fixtures 25 1.37 150.0 146.7 147.6 148.6 150.0 154.3 155.6 158.7 158.9 162.4 164.9 163.3 159.2 25 Clay, glass, stone products 32 2.74 147.5 146.2 148.8 153.0 156.8 156.4 154.6 154.3 151.7 148.1 148.7 148.2 146.8 26 Primary metals 33 6.57 102.3 99.6 113.2 111.5 114.1 114.5 114.9 110.6 111.9 107.4 109.4 113.2 108.4 102.2 27 Iron and steel 331.2 4.21 92.4 92.0 107.6 103.0 108.7 108.4 108.0 103.4 105.6 98.5 99.7 105.3 99.4 28 Fabricated metal products.. 34 5.93 134.1 131.7 132.3 135.7 135.8 137.6 139.2 139.5 138.4 139.3 140.1 139.9 137.6 134.l' 29 Nonelectrical macninery ... 35 9.15 162.8 160.9 162.9 166.9 167.3 168.3 169.2 169.7 172.1 174.1 176.7 176.4 173.9 172.6 30 Electrical machinery 36 8.05 172.8 169.8 173.0 175.1 177.6 174.9 177.4 178.8 179.9 180.1 180.9 181.9 179.6 178.0 31 Transportation equipment... 37 9.27 116.9 118.3 121.8 120.4 117.4 116.1 119.5 121.3 123.7 123.4 119.8 115.2 114.0 110.7 32 Motor vehicles and parts.. 371 4.50 119.0 123.2 129.2 125.7 120.0 119.9 127.1 130.7 136.4 137.5 130.5 122.8 120.0 113.3 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 114.9 113.7 114.9 115.4 114.9 112.6 112.3 112.4 111.8 110.2 109.7 108.2 108.3 108.3 34 Instruments 38 2.11 171.1 169.6 170.0 171.9 173.9 171.1 170.0 170.0 170.6 171.3 172.1 172.3 170.8 169.7 35 Miscellaneous manufactures. 39 1.51 148.3 145.0 147.1 151.0 152.9 154.9 155.4 157.3 157.0 158.8 159.4 158.6 156.2 156.3 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.41 601.9 604.0 611.8 612.4 612.9 614.5 618.0 616.2 622.2 619.2 621.4 615.7 610.0 604.1 37 Final 390.91 465.2 467.0 473.5 472.6 471.6 472.8 476.4 476.3 482.4 480.5 481.9 475.8 473.0 469.6 38 Consumer goods . 277.51 313.3 315.8 320.7 317.7 316.8 318.8 320.5 320.0 324.3 322.1 324.0 319.1 317.0 312.9 39 Equipment 113.41 152.0 151.2 152.9 154.9 154.8 154.0 155.9 156.3 158.1 158.5 157.9 156.7 156.0 156.7 40 Intermediate 116.61 136.7 137.1 138.3 139.8 141.2 141.7 141.7 139.9 139.8 138.7 139.5 139.8 137.0 134.5 1. 1972 dollar value. NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 Domestic Nonfinancial Statistics • November 1981 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1981 IItteemm 11997788 11997799 11998800 Feb. Mar. Apr. May June July' Aug.' Sept. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,801 1,552 1,191 1,165 1,153 1,186 1,167 963 913 865 844 2 1-family 1,183 981 710 677 678 689 654 567 528 494 448 3 2-or-more-family 618 571 481 488 475 497 513 396 385 371 396 4 Started 2,020 1,745 1,292 1,215 1,297 1,332 1,158 11,,003399 1,047 934 918 1-family 1,433 1,194 852 791 838 897 764 668888 704 598 615 6 2-or-more-family 587 551 440 424 459 435 394 351 343 336 303 7 Under construction, end of period1 1,310 1,140 896 938 927 913 894 853 824 797 n.a. 8 1-family 765 639 515 541 533 526 506 482' 464 443 n.a. 9 2-or-more-family 546 501 382 397 394 388 388 371' 360 353 n.a. 10 Completed 1,868 1,855 1,502 1,389 1,362 1,519 1,273 1,377' 1,310 1,207 n.a. 11 1-family 1,369 1,286 957 965 880 964 875 877' 854 782 n.a. 12 2-or-more-family 498 569 545 424 482 555 398 500 456 425 n.a. 13 Mobile homes shipped 276 277 222 256 255 265 255 246 268 230 n.a. Merchant builder activity in 1-family units 14 Number sold 818 709 530 500 507 451 478 402' 416 357 312 15 Number for sale, end of period1 419 402 340 334 325 327 322 310' 303 301 298 Price (thousands of dollars)2 Median 16 Units sold 55.8 62.7 64.9 65.8 67.1 68.4 71.2 68.7' 69.6 73.6 67.1 17 Units sold 62.7 71.9 76.6 80.1 81.2 82.9 83.7 84.7' 82.7 87.5 82.8 EXISTING UNITS (1-family) 18 Number sold 3,863 3,701 2,881 2,560 2,490 2,610 2,500 2,660 2,520 2,260 2,070 Price of units sold (thous. of dollars)2 19 Median 48.7 55.5 62.1 64.1 64.4 65.3 66.3 67.7 67.5 68.1 67.7 20 Average 55.1 64.0 72.7 75.7 76.2 77.3 78.6 79.9 79.6 80.5 79.7 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 205,559 230,781 230,273 254,458 250,274 246,542 235,907 233,998 234,741 232,605 231,558 22 Private 159,664 181,690 174,896 193,155 189,641 189,921 184,077 181,811 183,380 183,215 180,401 23 Residential 93,423 99,032 87,260 99,684 96,266 95,206 89,719 85,971 85,340 84,631 82,384 24 Nonresidential, total 6666,,224411 8822,,665588 8877,,663366 9933,,447711 9933,,337755 9944,,771155 9944,,335588 9955,,884400 9988,,004400 9988,,558844 9988,,001177 Buildings 25 Industrial 10,993 14,953 13,839 15,094 15,380 15,504 15,503 16,243 17,182 18,295 18,110 26 Commercial 18,561' 24,919' 29,940' 33,379' 33,307' 33,395 32,391 32,442 34,028 33,721 33,732 27 Other 6,739 7,427 8,654 9,938 9,588 9,196 8,903 9,735 9,241 9,367 9,016 28 Public utilities and other 29,948' 35,359' 35,203' 35,060' 35,100' 36,620 37,561 37,420 37,589 37,201 37,159 29 Public 45,896 49,088 55,371 61,302 60,632 56,620 51,830 52,186 51,360 49,390 51,157 30 Military 1,501 1,648 1,880 2,173 1,685 2,105 2,065 2,254 1,925 1,739 1,831 31 Highway 10,708 11,998 13,784 17,832 16,200 15,099 12,419 13,338 13,203 12,227 11,629 32 Conservation and development 4,457 4,586 5,089 6,168 5,565 5,681 4,894 4,912 5,226 4,711 4,895 33 Other : 29,230 30,856 34,618 35,129 37,182 33,735 32,452 31,682 31,006 30,713 32,802 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing Institute 3. Value of new construction data in recent periods may not be strictly comparable and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing with data in prior periods due to changes by the Bureau of the Census in its units, which are published by the National Association of Realtors. All back ana estimating techniques. For a description of these changes see Construction Reports current figures are available from originating agency. Permit authorizations are (C-30-76-5), issued by the Bureau in July 1976. those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Prices A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted 12 months to 3 months (at annual rate) to 1 month to Index level Sept. 1980 1981 1981 1981 1980 1981 (1967 SSeepptt.. SSeepptt.. == 110000))'' Dec. Mar. June Sept. May June July Aug. Sept. CONSUMER PRICES2 1 All items 12.7 11.0 13.2 9.6 7.4 13.5 .7 .7 1.2 .8 1.2 279.3 2 Commodities 11.6 7.8 11.0 8.9 2.1 9.2 .2 .4 .8 .6 .9 257.7 3 Food 10.1 6.5 13.1 2.1 -.1 10.9 -.2 .2 .8 .8 1.0 278.0 4 Commodities less food 12.3 8.3 9.9 12.3 3.1 8.6 .4 .4 .7 .5 .8 245.5 5 Durable 10.7 8.0 11.8 -.7 9.0 12.4 .9 1.0 1.2 1.0 .7 232.6 6 Nondurable 14.2 8.8 6.2 29.8 -2.0 3.6 -.2 -.2 .1 .3 .5 260.3 7 Services 14.2 15.5 16.8 10.3 15.1 19.5 1.4 1.2 1.8 1.2 1.5 317.3 8 Rent 9.0 8.6 9.6 7.0 7.7 10.2 .8 .4 .5 1.2 2.5 211.9 9 Services less rent 15.0 16.5 17.8 10.9 16.1 20.9 1.5 1.3 2.0 1.2 1.6 337.5 Other groupings 10 All items less food 13.6 11.9 13.2 11.7 9.0 14.1 .9 .8 1.3 .8 1.2 278.2 11 All items less food and energy. 12.0 11.8 14.4 5.8 11.8 15.2 1.1 1.0 1.4 .9 1.2 264.8 12 Homeownership 16.8 15.8 23.1 3.1 16.9 21.3 1.7 1.5 2.1 1.1 1.6 367.8 PRODUCER PRICES 13 Finished goods 13.1 7.3 8.3 13.3 6.8' 2.8 .4 .5' .2' .3 .2 271.1 14 Consumer 13.7 6.9 7.4 13.6 6.1r 2.1 .3 .4' .0' .3 .2 272.6 15 Foods 8.5 3.3 4.3 1.6 1.8r 5.6 .1 .5' 1.1' .2 .0 255.5 16 Excluding foods 16.4 9.0 8.9 18.6 7.9' .7 .3 .4' -.4' .3 .3 277.4 17 Capital equipment 11.0 9.8 11.8 12.0 9.8r 5.7 .7 .7' .8' .6 .0 265.6 18 Intermediate materials3 13.2 9.7 12.9 14.3 7.7' 4.3 .5 .3' .4' .4 .3 314.5 Crude materials 19 Nonfood 19.5 18.8 27.5 39.7 9.5' 2.1 1.6 -.7' .1' -.1 .6 486.8 20 Food 11.1 -8.4 -4.0 -23.1 8.6' -12.1 -2.2 2.8' .3' -.9 -2.5 253.4 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers. animal feeds. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A52 Domestic Nonfinancial Statistics • November 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 AAccccoouunntt 11997788 11997799 11998800 Q3 Q4 Q1 Q2 Q3 P GROSS NATIONAL PRODUCT 1 Total 2,156.1 2,413.9 2,626.1 2,637.3 2,730.6 2,853.0 2,885.8 2,947.0 Bv source 2 Personal consumption expenditures 1,348.7 1,510.9 1,672.8 1,682.2 1,751.0 1,810.1 1,829.1 1,888.6 3 Durable goods 199.3 212.3 211.9 208.8 223.3 238.3 227.3 240.0 4 Nondurable goods 529.8 602.2 675.7 674.2 703.5 726.0 735.3 750.1 5 Services 619.6 696.3 785.2 799.2 824.2 845.8 866.5 898.6 6 Gross private domestic investment 375.3 415.8 395.3 377.1 397.7 437.1 458.6 449.8 7 Fixed investment 353.2 398.3 401.2 393.2 415.1 432.7 435.3 432.2 8 Nonresidential 242.0 279.7 296.0 294.0 302.1 315.9 324.6 330.8 9 Structures 78.7 96.3 108.8 107.3 111.5 117.2 123.1 127.8 10 Producers' durable equipment 163.3 183.4 187.1 186.8 190.7 198.7 201.5 203.1 11 Residential structures 111.2 118.6 105.3 99.2 113.0 116.7 110.7 101.4 12 Nonfarm 106.9 113.9 100.3 94.5 107.6 111.4 105.4 95.8 13 Change in business inventories 22.2 17.5 -5.9 -16.0 -17.4 4.5 23.3 17.6 14 Nonfarm 21.8 13.4 -4.7 -12.3 -14.0 6.8 21.5 13.9 15 Net exports of goods and services -0.6 13.4 23.3 44.5 23.3 29.2 20.8 18.0 16 Exports 219.8 281.3 339.8 342.4 346.1 367.4 368.2 362.8 17 Imports 220.4 267.9 316.5 297.9 322.7 338.2 347.5 344.8 18 Government purchases of goods and services 432.6 473.8 534.7 533.5 558.6 576.5 577.4 590.5 19 Federal 153.4 167.9 198.9 194.9 212.0 221.6 219.5 227.0 20 State and local 279.2 305.9 335.8 338.6 346.6 354.9 357.9 362.9 By major type of product 21 Final sales, total 22,,113333..99 22,,339966..44 22,,663322..00 22,,665533..44 2,748.0 2,848.5 2,862.5 2,929.4 22 Goods 946.6 1,055.9 1,130.4 1,129.4 1,169.0 1,247.5 1,257.0 1,281.9 23 Durable 409.8 451.2 458.6 456.5 476.7 501.4 516.9 514.9 24 Nondurable 536.8 604.7 671.9 672.9 692.2 746.1 740.1 767.0 25 Services 976.3 1,097.2 1,229.6 1,249.0 1,285.3 1,317.1 1,344.7 1,388.0 26 Structures 233.2 260.8 266.0 258.9 276.4 288.4 284.1 277.1 27 Change in business inventories 22.2 17.5 -5.9 -16.0 -17.4 4.5 23.3 17.6 28 Durable goods 17.8 11.5 -4.0 -8.4 .7 -4.2 18.5 9.6 29 Nondurable goods 4.4 6.0 -1.8 -7.7 -18.1 8.6 4.8 8.0 30 MEMO: Total GNP In 1972 dollars 1,436.9 1,483.0 1,480.7 1,471.9 1,485.6 1,516.4 1,510.4 1.508.2 NATIONAL INCOME 31 1,745.4 1,963.3 2,121.4 2,122.4 2,204.8 2,291.1 2,320.9 n.a. 32 Compensation of employees 1,299.7 1,460.9 1,596.5 1,597.4 1,661.8 1,722.4 1,752.0 1,790.0 33 Wages and salaries 1.105.4 1,235.9 1,343.6 1,342.3 1,397.3 1,442.9 1,467.0 1,498.1 34 Government and government enterprises 219.6 235.9 253.6 253.9 263.3 267.1 270.5 274.8 35 Other 885.7 1,000.0 1,090.0 1,088.4 1,134.0 1,175.7 1,196.4 1,223.3 36 Supplement to wages and salaries 194.3 225.0 252.9 255.0 264.5 279.5 285.1 291.9 37 Employer contributions for social insurance 92.1 106.4 115.8 116.0 121.0 131.5 133.2 135.6 38 Other labor income 102.2 118.6 137.1 139.1 143.5 148.0 151.8 156.3 39 Proprietors' income1 117.1 131.6 130.6 129.7 134.0 132.1 134,1 135.4 40 Business and professional1 91.0 100.7 107.2 107.6 111.6 113.2 112.5 112.3 41 Farm1 26.1 30.8 23.4 22.1 22.5 18.9 21.7 23.1 42 Rental income of persons2 27.4 30.5 31.8 32.0 32.4 32.7 33.3 33.9 43 Corporate profits' 199.0 196.8 182.7 177.9 183.3 203.0 190.3 n.a. 44 Profits before tax3 223.3 255.4 245.5 237.6 249.5 257.0 229.0 n.a. 45 Inventory valuation adjustment -24.3 -42.6 -45.7 -41.7 -48.4 -39.2 -24.0 -27.2 46 Capital consumption adjustment -13.5 -15.9 -17.2 -17.9 -17.8 -14.7 -14.7 -13.4 47 Net interest 115.8 143.4 179.8 185.3 193.3 200.8 211.0 219.5 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 A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1980 1981 AAccccoouunntt 11997788 11997799 11998800 Q3 Q4 Q1 Q2 Qy PERSONAL INCOME AND SAVING 1 Total personal income 1,721.8 1,943.8 2,160.2 2,182.1 2,256.2 2,319.8 2,368.5 2,440.0 2 Wage and salary disbursements 1,105.2 1,236.1 1,343.7 1,341.8 1,397.8 1,442.9 1,467.0 1,497.8 3 Commodity-producing industries 389.1 437.9 465.4 460.1 484.0 501.3 508.1 520.4 4 Manufacturing 299.2 333.4 350.7 346.7 364.0 377.4 386.7 394.5 5 Distributive industries 270.5 303.0 328.9 329.2 340.6 351.9 357.8 367.4 6 Service industries 226.1 259.2 295.7 298.7 310.0 322.5 330.5 338.2 7 Government and government enterprises 219.4 236.1 253.6 253.9 263.3 267.1 270.5 274.6 8 Other labor income 102.2 118.6 137.1 139.1 143.5 148.0 151.8 156.3 9 Proprietors' income1 117.2 131.6 130.6 129.7 134.0 132.1 134.1 135.4 10 Business and professional1 91.0 100.8 107.2 107.6 111.6 113.2 112.5 112.3 11 Farm1 26.1 30.8 23.4 22.1 22.5 18.9 21.7 23.1 12 Rental income of persons2 27.4 30.5 31.8 32.0 32.4 32.7 33.3 33.9 13 Dividends 43.1 48.6 54.4 55.1 56.1 58.0 60.2 63.0 14 Personal interest income 173.2 209.6 256.3 261.8 269.7 288.7 300.9 315.8 15 Transfer payments 223.3 249.4 294.2 310.7 313.9 319.6 324.2 342.7 16 Old-age survivors, disability, and health insurance benefits 116.2 131.8 153.8 163.2 165.3 169.8 172.0 188.5 17 LESS: Personal contributions for social insurance 69.6 80.6 87.9 88.1 91.2 102.3 103.1 104.9 18 EQUALS: Personal income 1,721.8 1,943.8 2,160.2 2,182.1 2,256.2 2,319.8 2,368.5 2,440.0 19 LESS: Personal tax and nontax payments 258.8 302.0 338.5 341.5 359.2 372.0 382.9 399.9 20 EQUALS: Disposable personal income 1,462.9 1,641.7 1.821.7 1,840.6 1,897.0 1.947.8 1,985.6 2,040.1 21 LESS: Personal outlays 1,386.6 1,555.5 1,720.4 1,729.2 1,799.4 1,858.9 1,879.0 1,939.9 22 EQUALS: Personal saving 76.3 86.2 101.3 111.4 97.6 88.9 106.6 100.2 MEMO: Per capita (1972 dollars) 23 Gross national product 6,426 6,588 6,503 6,456 6,499 6,619 6,581 6,554 24 Personal consumption expenditures 4,046 4,135 4,108 4,082 4,142 4,191 4,162 4,195 25 Disposable personal income 4,389 4,493 4,473 4,468 4,488 4,511 4.517 4,530 26 Saving rate (percent) 5.2 5.2 5.6 6.1 5.1 4.6 5.4 4.9 GROSS SAVING 27 Gross saving 355.2 412.0 401.9 402.0 406.7 442.6 465.3 n.a. 28 Gross private saving 355.4 398.9 432.9 446.5 436.4 451.1 475.3 n.a. 29 Personal saving 76.3 86.2 101.3 111.4 97.6 88.9 106.6 100.2 30 Undistributed corporate profits' 57.9 59.1 44.3 42.8 40.4 55.7 52.0 n.a. 31 Corporate inventory valuation adjustment -24.3 -42.6 -45.7 -41.7 -48.4 -39.2 -24.0 -27.2 Capital consumption allowances 32 Corporate 136.4 155.4 175.4 178.4 183.2 187.5 194.6 200.6 33 Noncorporate 84.8 98.2 111.8 113.4 115.8 119.0 122.1 125.4 34 Wage accruals less disbursements .0 .0 .0 .5 -.5 .0 0 .0 35 Government surplus, or deficit (-), national income and product accounts -0.2 11.9 -32.1 -45.6 -30.8 -9.7 -11.2 n.a. 36 Federal -29.2 -14.8 -61.2 -74.2 -67.9 -46.6 -47.2 n.a. 37 State and local 29.0 26.7 29.1 28.6 37.1 36.9 36.1 n.a. 38 Capital grants received bv the United States, net .0 1.1 1.1 1.1 1.1 1.1 1.1 1.1 39 Gross investment 361.6 414.1 401.2 405.0 400.1 446.0 458.3 446.6 40 Gross private domestic 375.3 415.8 395.3 377.1 397.7 437.1 458.6 449.8 41 Net foreign - 13.8 -1.7 5.9 27.8 2.3 8.8 -.2 -3.2 42 Statistical discrepancy 6.4 2.2 -.7 3.0 -6.6 3.4 -6.9 n.a. 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
A54 International Statistics • November 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 11997788 11997799 11998800 Q2 Q3 Q4 Q1 Q2P 1 Balance on current account - 14,075 1,414 3,723 -545 4,975 1,390 3,263 1,073 2 Not seasonally adjusted 905 1,149 3,244 3,546 2,369 3 Merchandise trade balance2 -33,759 -27,346 -25,342 -6,744 -2,902 -5,570 -4,677 -6,914 4 Merchandise exports 142,054 184,473 223,966 55,667 56,252 57,149 61,098 60,477 5 Merchandise imports -175,813 -211,819 -249,308 -62,411 -59,154 -62,719 -65,775 -67,391 6 Military transactions, net 738 -1,947 -2,515 -427 -455 -715 -568 -586 7 Investment income, net3 21.400 33,462 32,762 6,518 8,154 8,257 9,053 8,647 8 Other service transactions, net 2,613 2,839 5,874 1,440 1,681 1,762 982 1,456 9 Remittances, pensions, and other transfers -1,884 -2,057 -2,397 -545 -591 -720 -550 -536 10 U.S. government grants (excluding military) -3,183 -3,536 -4,659 -787 -912 -1,624 -977 -994 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -4,644 -3,767 -5,165 -1,187 -1,427 -1,094 -1,395 -1,475 12 Change in U.S. official reserve assets (increase, -) 732 -1,132 -8,155 502 -1,109 -4,279 -4,529 -905 13 Gold -65 -65 0 0 0 0 0 0 14 Special drawing rights (SDRs) 1.249 -1,136 -16 112 -261 1,285 -1,441 -23 15 Reserve position in International Monetary Fund 4,231 -189 -1,667 -99 -294 -1,240 -707 -780 16 Foreign currencies -4,683 257 -6,472 489 -554 -4,324 -2,381 -102 17 Change in U.S. private assets abroad (increase, -)3 -57,158 -57,739 -71,456 -24,152 -16,766 -22.622 -16,473 -19,141 18 Bank-reported claims -33,667 -26,213 -46,947 -20,165 -12,440 -13,139 -11,241 -14,063 19 Nonbank-reported claims -3,853 -3,026 -2,653 92 343 -2,005 -3,192 n.a. 20 U.S. purchase of foreign securities, net -3,582 -4,552 -3,310 -1,369 -818 -356 -488 1,451 21 U.S. direct investments abroad, net3 - 16,056 -23.948 -18,546 -2,710 -3,851 -7,122 -1,552 -3,627 22 Change in foreign official assets in the United States (increase, +) 33,561 -13,757 15,492 7,557 7,686 7,712 5,503 -3,009 23 U.S. Treasury securities 23.555 -22,435 9.683 4,360 3,769 6,911 7,242 -2,069 24 Other U.S. government obligations 666 463 2.187 250 549 587 454 536 25 Other U.S. government liabilities4 2,359 -133 636 420 80 205 -112 180 26 Other U.S. liabilities reported by U.S. banks 5.551 7,213 -159 1,676 1,823 -460 -2,910 -2,286 27 Other foreign official assets5 1.4530 1,135 3,145 851 1,465 469 829 630 28 Change in foreign private assets in the United States (increase, + y 30,187 52,703 34,769 -326 3,965 16,157 1,637 15,819 29 U.S. bank-reported liabilities 16.141 32,607 10,743 -4,509 916 7,737 -3,889 8,791 30 U.S. nonbank-reported liabilities 1,717 2,065 5,109 1,092 373 3,228 -820 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,178 4,820 2,679 -1,260 -254 893 1,405 701 32 Foreign purchases of other U.S. securities, net 2,254 1,334 5,384 468 241 2,240 2,454 3,450 33 Foreign direct investments in the United States, net3 7,896 11,877 10,853 3,883 2,689 2,059 2,487 2,878 34 Allocation of SDRs 0 1,139 1,152 0 0 0 1,093 0 35 Discrepancy 11,398 21,140 29,640 18,151 2,676 2,736 10,901 7,637 36 Owing to seasonal adjustments 1,355 -3,291 2,139 -340 1,221 37 Statistical discrepancy in recorded data before seasonal adjustment 11,398 21,140 29,640 16,796 5,967 597 11,241 6,416 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, 732 -1,132 -8,155 502 -1,109 -4,279 -4,529 -905 39 Foreign official assets in the United States (increase, +) 31,202 -13,624 14,856 7,137 7,606 7,507 5,615 -3,189 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 4,617 4,115 1,024 5,446 2,635 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 236 305 635 155 125 211 192 207 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 A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1981 IItteemm 11997788 11997799 11998800 Mar Apr. May June July Aug. Sept. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 143,682 181.860 220,626 21,434 19,818 18,869 19,870 19,264 19,050 19,655 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 174,759 209,458 244,871 20,949 22,289 21,310 21,975 19,807 23,528 21,229 3 Trade balance -31,075 -27,598 -24,245 485 -2,471 -2,441 -2,105 -542 -4,478 -1,574 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 1981 TTyyppee 11997788 11997799 11998800 Apr. May June July Aug. Sept. Oct./' 1 Total1 18,650 18,956 26,756 29,693 29,395 29,582 28,870 29,265 29,716 30,248 2 Gold stock, including Exchange Stabilization Fund1 11,671 11,172 11.160 11,154 11,154 11,154 11,154 11,154 11,152 11,152 3 Special drawing rights2 3 1,558 2,724 2,610 3,712 3,652 3,689 3,717 3,739 3,896 3,949 4 Reserve position in International Monetary Fund2 1,047 1,253 2,852 3,576 3,690 3,988 4,157 4,341 4,618 4,736 5 Foreign currencies4,5 4,374 3.807 10.134 11,251 10,899 10,751 9,842 10,031 10,050 10,411 1. Gold held under earmark at Federal Reserve Banks for foreign and inter- 3. Includes allocations by the International Monetary Fund of SDRs as follows: national accounts is not included in the gold stock of the United States; see table $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1, 3.22. 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based million on Jan. 1, 1981; plus net transactions in SDRs. on a weighted average of exchange rates for the currencies of member countries. 4. Beginning November 1978, valued at current market exchange rates. From July 1974 through December 1980, 16 currencies were used; from January 5. Includes U.S. government securities held under repurchase agreement against 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position receipt of foreign currencies, if any. in the IMF also are valued on this basis beginning July 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A56 International Statistics • November 1981 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1981 AAsssseett aaccccoouunntt 1199778811 11997799 11998800 Feb. Mar. ' Apr. May June July Aug.'' All foreign countries 1 Total, all currencies 306,795 364,233 400,510r 404,085' 413,880 413,516' 417,187 422,946' 433,238 433,133 2 Claims on United States 17,340 32,302 28,460 31,925 30,002 34,519 38,645 35,204' 43,074 41,787 3 Parent bank 12,811 25,929 20,202 21,370 18,641 23,086 28,012 24,311 30,994 30,036 4 Other 4,529 6,373 8,258 10,555 11,361 11,433 10,633 10,893' 12,080 11,751 5 Claims on foreigners 278,135 317,175 354,368' 354,026' 365,349 360,514' 359,531 368,654' 370,938 372,034 16 Other branches of parent bank 70,338 79,661 76,986' 75,804' 78,882 76,917 76,224 79,814 82,128 83,171 Banks 103,111 123,413 146,400' 148,038' 152,363 149,647' 149,060 154,748 154,843 152,285 8 Public borrowers2 23,737 26,072 28,014' 28,312' 28,919 28,291' 27,734 27,806 28,645 29,181 9 Nonbank foreigners 80,949 88,029 102,968' 101,872' 105,185 105,659 106,513 106,286' 105,322 107,397 10 Other assets 11,320 14,756 17,682' 18,134' 18,529 18,483' 19,011 19,088 19,226 19,312 11 Total payable in U.S. dollars 224,940 267,711 291,635' 298,565' 305,328 308,373' 312,683 320,308' 330,758 328,889 12 Claims on United States 16,382 31,171 27,191 30,662 28,817 33,306 37,403 33,950' 41,873 40,504 13 Parent bank 12,625 25,632 19,896 21,108 18,421 22,839 27,709 24,041 30,742 29,744 14 Other 3,757 5,539 7,295 9,554 10,396 10,467 9,694 9,909' 11,131 10,760 15 Claims on foreigners 203,498 229,118 255,234' 257,947' 266,291 264,537' 264,263 275,195' 277,354 276,786 16 Other branches of parent bank 55,408 61,525 58,508' 58,065' 60,969 59,590 58,711 62,696 64,725 65,477 17 Banks 78,686 96,261 117,302' 119,781' 122,873 121,674' 121,930 128,114 127,552 124,504 18 Public borrowers2 19,567 21,629 23,491' 23,596' 24,095 23,801' 23,201 23,488 24,250 24,410 19 Nonbank foreigners 49,837 49,703 55,933' 56,505' 58,354 59,472 60,421 60,897' 60,827 62,395 20 Other assets 5,060 7,422 9,210' 9,956' 10,220 10,530' 11,017 11,163 11,531 11,599 United Kingdom 21 Total, all currencies 106,593 130,873 144,717 146,514 148,077 144,577 146,640 149,704 148,774 150,415 22 Claims on United States 5,370 11,117 7,509 9,128 9,159 8,518 10,382 9,640 9,130 10,249 23 Parent bank 4,448 9,338 5,275 6,387 6,265 5,766 7,666 7,098 6,167 7,443 24 Other 922 1,779 2,234 2,741 2,894 2,752 2,716 2,542 2,963 2,806 25 Claims on foreigners 98,137 115,123 131,142 131,426 132,797 130,062 130,200 134,102 133,626 134,034 26 Other branches of parent bank 27,830 34,291 34,760 35,523 35,654 34,704 34,834 35,914 37,035 38,035 27 Banks 45,013 51,343 58,741 59,623 59,742 57,934 57,611 60,261 59,639 58,362 28 Public borrowers2 4,522 4,919 6,688 6,630 6,920 6,848 6,720 6,811 6,822 6,665 29 Nonbank foreigners 20,772 24,570 30,953 29,650 30,481 30,576 31,035 31,116 30,130 30,972 30 Other assets 3,086 4,633 6,066 5,960 6,121 5,997 6,058 5,962 6,018 6,132 31 Total payable in U.S. dollars 75,860 94,287 99,699 103,754 104,533 102,336 104,959 108,854 107,961 109,262 32 Claims on United States 5,113 10,746 7,116 8,673 8,755 88,,008800 9,932 9,150 8,628 9,806 33 Parent bank 4,386 9,297 5,229 6,325 6,236 55,,771155 7,611 7,059 6,110 7,382 34 Other 727 1,449 1,887 2,348 2,519 2,365 2,321 2,091 2,518 2,424 35 Claims on foreigners 69,416 81,294 89,723 91,990 92,493 91,018' 91,632 96,240 95,832 95,887 36 Other branches of parent bank 22,838 28,928 28,268 28,984 29,087 28,466 28,527 29,725 30,789 31,710 37 Banks 31,482 36,760 42,073 43,451 43,379 42,467 42,786 45,631 44,488 42,957 38 Public borrowers2 3,317 3,319 4,911 4,932 5,189 5,096 4,967 5,123 5,176 5,006 39 Nonbank foreigners 11,779 12,287 14,471 14,623 14,838 14,989 15,352 15,761 15,379 16,214 40 Other assets 1,331 2,247 2,860 3,091 3,285 3,238 3,395 3,464 3,501 3,569 Bahamas and Caymans 41 Total, all currencies 91,735 108,977 123,837 124,892 127,886 132,145 133,594 135,081 145,290 142,087 42 Claims on United States 9,635 19,124 17,751 19,150 17,348 22,473 24,531 21,812' 29,808 27,131 43 Parent bank 6,429 15,196 12,631 12,417 10,017 14,908 17,511 14,477 21,654 19,303 44 Other 3,206 3,928 5,120 6,733 7,331 7,565 7,020 7,335' 8,154 7,828 45 Claims on foreigners 79,774 86,718 101,926 101,281 106,052 105,081 104,197 108,477' 110,584 109,888 46 Other branches of parent bank 12,904 9,689 13,342 11,996 14,022 13,107 12,235 13,569 13,788 13,909 47 Banks 33,677 43,189 54,861 55,345 57,127 57,405 57,073 59,705 60,748 59,316 48 Public borrowers2 11,514 12,905 12,577 12,605 12,579 12,205 12,169 12,038 12,471 12,610 49 Nonbank foreigners 21,679 20,935 21,146 21,335 22,324 22,364 22,720 23,165' 23,577 24,053 50 Other assets 2,326 3,135 4,160 4,461 4,486 4,591 4,866 4,792 4,898 5,068 51 Total payable in U.S. dollars 85,417 102,368 117,654 119,005 121,900 126,429 127,969 129,438 139,514 136,054 1. In May 1978 the exemption level for branches required to report was increased, eluding corporations that are majority owned by forcing 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
Overseas Branches A57 3.13 Continued 1981 1199778811 11997799 11998800 Feb. Mar.' Apr. May June July Aug." All foreign countries 52 Total, all currencies 306,795 364,233 400,510r 404,085' 413,880 413,516' 417,187 422,946' 433,238 433,133 53 To United States 58,012 66,686 91,059' 90,760' 98,776 105,667' 105,343 109,322' 118,093 116,405 54 Parent bank 28,654 24,530 39,266r 36,475' 43,062 45,320' 41,039 44,327 43,069 43,847 55 Other banks in United States 12,169 13,968 14,473 13,959 14,584 15,551' 16,301 16,136' 17,578 15,768 56 Nonbanks 17,189 28,188 37,275 40,326 41,130 44,796' 48,003 48,859' 57,446 56,790 57 To foreigners 238,912 283,344 294,823' 299,333' 300,525 292,941' 296,462 298,169 299,240 299,952 58 Other Dranches of parent bank 67,496 77,601 75,685' 75,304' 77,050 76,094 75,815 79,033 81,387 80.986 59 Banks 97,711 122,849 131,747' 136,013' 134,325 129,670' 133,650 131,818 129,290 125,541 60 Official institutions 31,936 35,664 32,466' 28,619' 29,385 28,046' 27,469 26,352 25,682 28,186 61 Nonbank foreigners 41,769 47,230 54,925 ' 59,397' 59,765 59,131' 59,528 60,966 62,881 65,239 62 Other liabilities 9,871 14,203 14,673' 13,992' 14,579 14,908' 15,382 15,455' 15,905 16,766 63 Total payable in U.S. dollars 230,810 273,819 303,076 r 309,736' 316,771 320,256' 324,479 332,284' 343,947 341,701 64 To United States 55,811 64,530 88,156' 88,351' 96,319 103,204' 102,971 106,740' 115,481 113,815 65 Parent bank 27,519 23,403 37,527' 34,980' 41,531 43,826' 39,604 42,822 41,620 42,392 66 Other banks in United States 11,915 13,771 14,203 13,757 14,432 15,381' 16,175 15,945' 17,391 15,611 67 Nonbanks 16,377 27,356 36,426 39,614 40,356 43,997' 47,192 47,973' 56,470 55,812 68 To foreigners 169,927 201,476 206,684' 212,724' 211,496 207,455' 211,915 215,931 218,178 217,204 69 Other Dranches of parent bank 53,396 60,513 58,093' 58,155' 59,874 59,213 59,108 62,292 64,884 64,333 70 Banks 63,000 80,691 87,377' 92,413' 87,990 86,490' 89,885 89,909 88,554 83,835 71 Official institutions 26,404 29,048 24,697' 21,901' 22,762 21,453' 21,345 20,853 20,108 22,033 72 Nonbank foreigners 27,127 31,224 36,517' 40,255' 40,870 40,299' 41,577 42,877 44,632 47,003 73 Other liabilities 5,072 7,813 8,236' 8,661' 8,956 9,597' 9,593 9,613' 10,288 10,682 United Kingdom 74 Total, all currencies 106,593 130,873 144,717 146,514 148,077 144,577 146,640 149,704 148,774 150,415 75 To United States 9,730 20,986 21,785 22,755 25,424 25,843 26,688 29,598 30,383 31,622 76 Parent bank 1,887 3,104 4,225 3,190 4,242 4,543 4,376 4,371 4,138 4,189 77 Other banks in United States 4,189 7,693 5,716 5,840 5,731 5,928 5,973 6,172 5,864 5,646 78 Nonbanks 3,654 10,189 11,844 13,725 15,451 15,372 16,339 19,055 20,381 21,827 79 To foreigners 93,202 104,032 117,438 118,642 117,318 113,634 114,655 115,099 113,560 113,191 80 Other branches of parent bank 12,786 12,567 15,384 14,661 15,437 15,095 14,169 14,996 15,103 15,255 81 Banks 39,917 47,620 56,262 57,916 55,990 53,842 56,209 55,923 54,351 51,532 82 Official institutions 20,963 24,202 21,412 19,591 19,241 18,390 18,508 17,197 16,352 17,866 83 Nonbank foreigners 19,536 19,643 24,380 26,474 26,650 26,307 25,769 26,983 27,754 28,538 84 Other liabilities 3,661 5,855 5,494 5,117 5,335 5,100 5,297 5,007 4,831 5,562 85 Total payable in U.S. dollars 77,030 95,449 103,440 107,671 108,895 107,139 109,209 113,427 113,247 114,445 86 To United States 9,328 20,552 21,080 22,245 24,950 25,333 26,221 28,858 29,606 30,915 87 Parent bank 1,836 3,054 4,078 3,132 4,159 4,448 4,306 4,277 4,054 4,132 88 Other banks in United States 4,101 7,651 5,626 5,757 5,684 5,854 5,919 6,094 5,768 5,594 89 Nonbanks 3,391 9,847 11,376 13,356 15,107 15,031 15,996 18,487 19,784 21,189 90 To foreigners 66,216 72,397 79,636 82,302 80,729 78,668 79,713 81,544 80,400 79,988 91 Other branches of parent bank 9,635 8,446 10,474 10,149 10,460 10,282 9,327 10,289 10,566 10,943 92 Banks 25,287 29,424 35,388 37,214 34,467 34,209 35,870 36,701 35,789 32,914 93 Official institutions 17,091 20,192 17,024 15,404 15,374 14,478 14,851 14,000 13,133 14,244 94 Nonbank foreigners 14,203 14,335 16,750 19,535 20,428 19,699 19,665 20,554 20,912 21,887 95 Other liabilities 1,486 2,500 2,724 3,124 3,216 3,138 3,275 3,025 3,241 3,542 Bahamas and Caymans 96 Total, all currencies 91,735 108,977 123,837 124,892 127,886 132,145 133,594 135,081 145,290 142,087 97 To United States 39,431 37,719 59,666 58,664 64,026 69,478 69,048 69,407 77,197 73,959 98 Parent bank 20,482 15,267 28,181 26,279 31,741 32,925 29,583 32,160 31,034 31,223 99 Other banks in United States 6,073 5,204 7,379 7,165 7,883 8,618 9,297 8,822 10,517 8,973 100 Nonbanks 12,876 17,248 24,106 25,220 24,402 27,935 30,168 28,425 35,646 33,763 101 To-foreigners 50,447 68,598 61,218 63,348 60,957 59,424 61,170 62,470 64,491 64,530 102 Other branches of parent bank 16,094 20,875 17,040 18,783 17,437 17,788 17,950 19,484 20,989 20,310 103 Banks 23,104 33,631 29,895 30,369 28,752 27,213 28,846 28,326 28,056 27,508 104 Official institutions 4,208 4,866 4,361 3,663 4,403 4,079 3,666 3,685 3,934 4,605 105 Nonbank foreigners 7,041 9,226 9,922 10,533 10,365 10,344 10,708 10,975 11,512 12,107 106 Other liabilities 1,857 2,660 2,953 2,880 2,903 3,243 3,376 3,204 3,602 3,598 107 Total payable in U.S. dollars 87,014 103,460 119,657 120,712 123,785 128,235 129,811 131,120 141,241 137,754 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A58 International Statistics • November 1981 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1981 IItteemm 11997788 11997799 11998800 Mar. Apr.r May' Juner July Aug.? Sept. p 1 Total1 162,775 149,697 164,576 170,026 170,600 165,414 167,069 166,986 162,391 161,315 By type 2 Liabilities reported by banks in the United States2 . 23,326 30,540 30,381 27,305 25,563 23,575 25,234 25,937 22,934 22,593 3 U.S. Treasury bills and certificates3 67,671 47,666 56,243 60,492 61,671 57,858 57,719 55,659 52,924 50,179 U.S. Treasury bonds and notes 4 Marketable 35,894 37,590 41,455 44,808 45,303 45,625 46,605 47,402 48,934 50,132 5 Nonmarketable4 20,970 17,387 14,654 14,294 14,294 13,202 12,802 12,402 12,402 12,402 6 U.S. securities other than U.S. Treasury securities5 14,914 16,514 21,843 23,127 23,769 24,062 24,309 25,186 25,197 25,829 By area 1 Western Europe1 93,089 85,633 81,592 79,853 78,237 71,467 71,130 70,557 65,960 64,253 8 Canada 2,486 1,898 1,562 1,437 1,177 1,365 1,248 664 1,603 1,366 9 Latin America and Caribbean 5,046 6,291 5,688 6,355 5,908 5,526 6,103 5,584 5,968 5,319 10 Asia 59,004 52,978 70,782 77,142 79,253 81,014 83,124 85,845 84,641 87,328 11 Africa 2,408 2,412 4,123 4,088 4,188 3,927 3,190 2,645 2,840 2,090 12 Other countries6 742 485 829 1,150 1,835 2,116 2,275 1,691 1,379 960 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored 2. Principally demand deposits, time deposits, bankers acceptances, commercial agencies, and U.S. corporate stocks and bonds. paper, negotiable time certificates of deposit, and borrowings under repurchase 6. Includes countries in Oceania and Eastern Europe. agreements. 3. Includes nonmarketable certificates of indebtedness (including those payable NOTE. Based on Treasury Department data and on data reported to the Treasury in foreign currencies through 1974) and Treasury bills issued to official institutions Department by banks (including Federal Reserve Banks) and securities dealers in of foreign countries. the United States. 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and notes payable in foreign currencies. 3.15 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1980 1981 IItteemm 11997777 11997788 11997799 Sept. Dec. Mar/ June'' 1 Banks' own liabilities 925 2,406 1,918 2,754 3,748 3,298 3,031 2 Banks' own claims1 2,356 3,671 2,419 3,203 4,206 4,257 3,673 3 Deposits 941 1,795 994 1,169 2,507 1,779 2,052 4 Other claims 1,415 1,876 1,425 2,035 1,699 2,478 1,621 5 335588 558800 559955 996622 444444 334477 1. Includes claims of banks' domestic customers through March 1978. NOTE. Data on claims exclude foreign currencies held by U.S. monetary au- 2. Assets owned by customers of the reporting bank located in the United States thorities. that represent claims on foreigners held by reporting banks for the accounts of their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A59 3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1981 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11997788 11997799 11998800 Mar.P Apr. May June July Aug. Sept.'' 1 All foreigners 166,842 187,521 205,295 205,284 213,250' 213,487' 208,799 213,677' 208,051 215,477 2 Banks' own liabilities 78,661 117,196 124,789 120,425 128,170' 132,167' 127,947 131,903' 130,977 141,811 3 Demand deposits 19,218 23,303 23,462 21,216 22,644 22,193 23,174 21,401 22,072 24,810 4 Time deposits1 12,427 13,623 15,076 16,304 15,731' 16,059' 16,641 16,457' 17,231 17,291 5 Other2 9,705 16,453 17,581 16,199 14,814' 12,359 14,090 13,327' 11,261 12,341 6 Own foreign offices3 37,311 63,817 68,670 66,707 74,980' 81,556 74,042 80,717' 80,413 87,369 7 Banks' custody liabilities4 88,181 70,325 80,506 84,859 85,080' 81,320 80,852 81,774' 77,074 73,666 8 U.S. Treasury bills and certificates5 68,202 48,573 57,595 62,342 63,281' 59,597 59,745 57,550' 54,849 52,333 9 Other negotiable and readily transferable instruments6 17,472 19,396 20,079 18,207 17,922' 17,392 17,023 17,865' 17,931 17,295 10 Other 2,507 2,356 2,832 4,310 3,877' 4,331 4,084 6,359' 4,294 4,038 11 Nonmonetary international and regional organizations7 2,607 2,356 2,342 1,854 1,816' 1,813 1,777 1,798' 1,650 1,736 12 Banks' own liabilities 906 714 442 293 667' 509 357 363 436 308 13 Demand deposits 330 260 146 126 178 147 224 222 233 151 14 Time deposits' 84 151 85 67 81 80 75 75 59 70 15 Other2 492 303 211 100 408' 281 58 65 145 88 16 Banks' custody liabilities4 1,701 1,643 1,900 1,561 1,149 1,304 1,420 1,435' 1,214 1,428 17 U.S. Treasury bills and certificates 201 102 254 333 63 213 289 247 84 96 18 Other negotiable and readily transferable instruments6 1,499 1,538 1,646 1,228 1,086 1,091 1,132 1,188' 1,130 1,332 19 Other 1 2 0 0 0 0 0 0 0 0 20 Official institutions8 90,742 78,206 86,624 87,983 87,262' 81,434' 82,953 81,596' 75,858 72,773 21 Banks' own liabilities 12,165 18,292 17,826 16,220 14,689' 13,478' 15,815 14,460' 13,482 13,882 22 Demand deposits 3,390 4,671 3,771 3,232 3,768 3,444 3,975 3,134 3,714 3,374 23 Time deposits1 2,560 3,050 3,612 2,938 2,424' 2,654' 2,563 2,090' 2,021 1,861 24 Other2 6,215 10,571 10,443 10,050 8,496' 7,381 9,277 9,236 7,747 8,646 25 Banks' custody liabilities4 78,577 59,914 68,798 71,763 72,574r 67,955 67,138 67,136' 62,376 58,891 26 U.S. Treasury bills and certificates5 67,415 47,666 56,243 60,492 61,670' 57,858 57,719 55,659' 52,924 50,179 27 Other negotiable and readily transferable instruments6 10,992 12,196 12,501 11,080 10,819' 10,014 9,346 9,396' 9,332 8,659 28 Other 170 52 54 191 84' 83 73 2,081' 120 53 29 Banks9 57,423 88,316 96,415 94,338 102,584' 108,542 101,464 107,806' 107,455 117,411 30 Banks' own liabilities 52,626 83,299 90,456 86,620 95,138' 100,442 93,250 98,886' 98,347 108,396 31 Unaffiliated foreign banks 15,315 19,482 21,786 19,914 20,157' 18,886 19,208 18,168' 17,933 21,027 32 Demand deposits 11,257 13,285 14,188 12,588 13,493 13,394 13,628 12,929 13,255 15,842 33 Time deposits1 1,429 1,667 1,703 2,305 1,549 1,685 1,728 1,573 1,686 1,990 34 Other2 2,629 4,530 5,895 5,021 5,115' 3,808 3,852 3,666 2,993 3,196 35 Own foreign offices3 37,311 63,817 68,670 66,707 74,980r 81,556 74,042 80,717' 80,413 87,369 36 Banks' custody liabilities4 4,797 5,017 5,959 7,717 7,446 8,100 8,214 8,921' 9,108 9,014 37 U.S. Treasury bills and certificates 300 422 623 827 839 945 1,170 1,069' 1,217 1,439 38 Other negotiable and readily transferable instruments6 2,425 2,415 2,748 2,913 2,932 3,053 3,178 3,732' 4,018 3,889 39 Other 2,072 2,179 2,588 3,977 3,675 4,102 3,866 4,119' 3,872 3,686 40 Other foreigners 16,070 18,642 19,914 21,109 21,588' 21,698 22,605 22,477' 23,088 23,557 41 Banks' own liabilities 12,964 14,891 16,065 17,291 17,677' 17,737 18,525 18,195' 18,712 19,225 42 Demand deposits 4,242 5,087 5,356 5,270 5,205 5,209 5,346 5,116 4,871 5,443 43 Time deposits 8,353 8,755 9,676 10,995 11,677 11,640 12,275 12,719' 13,464 13,370 44 Other2 368 1,048 1,033 1,027 795' 889 903 360' 377 411 45 Banks' custody liabilities4 3,106 3,751 3,849 3,817 3,911' 3,961 4,080 4,283' 4,376 4,333 46 U.S. Treasury bills and certificates 285 382 474 690 709' 581 568 575' 624 620 47 Other negotiable and readily transferable instruments6 2,557 3,247 3,185 2,986 3,085' 3,235 3,367 3,548' 3,450 3,414 48 Other 264 123 190 141 118' 145 144 159 302 300 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 11,007 10,984 10,745 9,887 9,584r 9,653 10,176 10,091' 9,961 9,481 1. Excludes negotiable time certificates of deposit, which are included in "Other 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued negotiable and readily transferable instruments." Data for time deposits before to official institutions of foreign countries. April 1978 represent short-term only. 6. Principally bankers acceptances, commercial paper, and negotiable time cer- 2. Includes borrowing under repurchase agreements. tificates of deposit. 3. U.S. banks: includes amounts due to own foreign branches and foreign sub- 7. Principally the International Bank for Reconstruction and Development, and sidiaries consolidated in "Consolidated Report of Condition" filed with bank reg- the Inter-American and Asian Development Banks. ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 8. Foreign central banks and foreign central governments and the Bank for banks: principally amounts due to head office or parent foreign bank, and foreign International Settlements. branches, agencies or wholly owned subsidiaries of head office or parent foreign 9. Excludes central banks, which are included in "Official institutions." bank. 4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A60 International Statistics • November 1981 3.16 Continued 1981 AArreeaa aanndd ccoouunnttrryy 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept.P 1 Total 166,842 187,521 205,295 205,284 213,250' 213,487' 208,799 213,677' 208,051 215,477 2 Foreign countries 164,235 185,164 202,953 203,430 211,434r 211,674r 207,022 211,880' 206,401 213,741 3 Europe 85,172 90,952 90,897 92,495 89,966' 87,209' 86,789 85,418' 81,549 84,800 4 Austria 513 413 523 522 523 493 540 610' 612 592 5 Belgium-Luxembourg 2,550 2,375 4,019 4,698 4,926 5,469 5,056 4,759' 4,240 4,950 6 Denmark 1,946 1,092 497 461 434 526 415 430 239 163 7 Finland 346 398 455 332 328 280 305 294 220 198 8 France 9,214 10,433 12,125 12,950 13,121r 11,367 11,515 11,058' 9,235 7,639 9 Germany 17,283 12,935 9,973 12,305 12,490' 9,472 9,631 9,072' 7,301 8,405 10 Greece 826 635 670 593 574 513 507 533 492 578 11 Italy 7,739 7,782 7,572 3,453 3,600 3,014 4,620 6,134' 6,374 6,261 12 Netherlands 2,402 2,337 2,441 2,328 2,314 2,176 2,133 1,792' 1,752 2,240 13 Norway 1,271 1,267 1,344 1,575 1,472r 1,648 1,743 1,289' 1,228 1,008 14 Portugal 330 557 374 356 309 336 454 448' 460 486 15 Spain 870 1,259 1,500 1,631 1,352 1,678 1,199 1,329 1,409 1,189 16 Sweden 3,121 2,005 1,737 2,408 2,784 2,501 2,180 1,864' 1,667 2,102 17 Switzerland 18,225 17,954 16,689 16,856 15,744' 15,810 15,844 16,320' 16,426 16,985 18 Turkey 157 120 242 235 209 182 194 356 208 234 19 United Kingdom 14,272 24,700 22,680 25,836 24,351' 25,485 24,428 23,220' 24,194 26,192 20 Yugoslavia 254 266 681 202 238 270 312 408 343 366 21 Other Western Europe1 3,440 4,070 6,939 5,356 4,893 5,616' 5,323 5,177' 4,804 4,771 22 U.S.S.R 82 52 68 47 37 85 41 46 34 28 23 Other Eastern Europe2 330 302 370 350 267r 288 351 280 310 414 24 Canada 6,969 7,379 10,031 8,610 10,339r 11,222 10,208 9,249' 9,872 10,102 25 Latin America and Caribbean 31,638 49,686 53,170 51,178 58,433' 60,096 56,156 63,979' 63,792 66,151 26 Argentina 1,484 1,582 2,132 1,917 1,919 1,800 1,991 1,980 2,043 1,979 27 Bahamas 6,752 15,255 16,381 14,356 18,751' 20,154 17,760 24,476' 24,209 25,000 28 Bermuda 428 430 670 913 634 802 698 646' 700 806 29 Brazil 1,125 1,005 1,216 1,148 1,345 1,347 1,412 1,145 1,282 1,299 30 British West Indies 5,974 11,138 12,766 11,566 14,061' 14,892 12,834 14,024' 13,239 14,435 31 Chile 398 468 460 549 539 526 508 566 538 491 32 Colombia 1,756 2,617 3,077 2,970 2,940 2,828 2,827 2,784 2,708 2,527 33 Cuba 13 13 6 6 8 7 7 7 7 7 34 Ecuador 322 425 371 511 352 391 463 392 355 393 35 Guatemala3 416 414 367 446 416 413 399 412 399 476 36 Jamaica3 52 76 97 94 141 132 80 122 290 92 37 Mexico 3,467 4,185 4,547 4,756 5,332 4,948 5,351 5,532' 6,352 6,017 38 Netherlands Antilles 308 499 413 476 459' 438 495 487' 692 695 39 Panama 2,967 4,483 4,718 4,445 4,723 4,847 4,615 5,004' 4,619 4,962 40 Peru 363 383 403 342 354 334 450 363 398 381 41 Uruguay 231 202 254 306 284 334 322 243 267 258 42 Venezuela 3,821 4,192 3,170 4,220 4,178 3,924 3,548 3,671' 3,621 3,971 43 Other Latin America and Caribbean 1,760 2,318 2,123 2,158 1,997 1,979 2,398 2,125' 2,073 2,361 44 Asia 3366,,449922 3333,,000055 42,420 45,068 45,974' 46,156 47,279 48,073' 4466,,119955 4488,,669977 China 45 Mainland 67 49 49 60 46 54 102 84' 74 76 46 Taiwan 502 1,393 1,662 1,822 1,798 1,781 1,936 2,005' 2,177 2,183 47 Hong Kong 1,256 1,672 2,548 2,438 2,469' 3,001 3,151 3,446 3,956 4,061 48 India 790 527 416 576 442 458 408 394 455 491 49 Indonesia 449 504 730 1,063 944 707 582 1,309 732 809 50 Israel 688 707 883 582 444 404 478 387 477 407 51 Japan 21,927 8,907 16,281 19,442 19,450 19,803 19,563 19,475 19,764 20,732 52 Korea 795 993 1,528 1,380 1,381 1,397 1,330 1,252 11,,331199 1,434 53 Philippines 644 795 919 1,115 1,213 802 1,049 992' 886688 832 54 Thailand 427 277 464 250 391 338 422 436 371 392 55 Middle-East oil-exporting countries4 7,534 15,300 14,453 14,205 15,119' 14,728 15,129 14,909' 12,396 13,292 56 Other Asia 1,414 1,879 2,487 2,134 2,276' 2,684 3,129 3,385' 3,607 3,986 57 Africa 2,886 3,239 5,187 4,553 4,533' 4,513 3,907 3,173' 3,201 2,561 58 Egypt 404 475 485 333 336 308 289 293 355 433 59 Morocco 32 33 33 33 34 54 41 77 59 43 60 South Africa 168 184 288 322 330 360 253 257 296 244 61 Zaire 43 110 57 28 28 24 181 84 41 76 62 Oil-exporting countries5 1,525 1,635 3,540 3,084 3,135 3,004 2,388 1,715 1,703 1,040 63 Other Africa 715 804 783 753 670' 764 755 747' 746 725 64 Other countries 1,076 904 1,247 1,526 2,189 2,477 2,683 1,987 1,792 1,429 65 Australia 838 684 950 1,287 1,913 2,276 2,398 1,770 1,568 1,170 66 All other 239 220 297 240 275 201 285 217 224 260 67 Nonmonetary international and regional organizations 2,607 2,356 2,342 1,854 1,816' 1,813 1,777 1,798' 1,650 1,736 68 International 1,485 1,238 1,156 754 806' 781 747 699 524 641 69 Latin American regional 808 806 890 768 693 729 722 765 747 750 70 Other regional6 314 313 296 333 317 303 307 333' 379 345 1. Includes the Bank for International Settlements. Beginning April 1978, also 6. Asian, African, Middle Eastern, and European regional organizations, except includes Eastern European countries not listed in line 23. the Bank for International Settlements, which is included in "Other Western 2. Beginning A pril 1978 comprises Bulgaria, Czechoslovakia, the German Dem- Europe." ocratic Republic, Hungary, Poland, and Romania. 3. Included in "Other Latin America and Caribbean" through March 1978. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). 5. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A61 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 AArreeaa aanndd ccoouunnttrryy 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept.'' 1 Total 115,545 133,943 172,592r 181,551 185,871' 187,139' 197,312 196,860' 198,876 209,970 2 Foreign countries 115,488 133,906 172,514' 181,477 185,830' 187,092' 197,264 196,800' 198,825 209,915 3 Europe 24,201 28,388 32,108r 35,098 34,687' 34,463' 37,338 35,198' 35,062 40,837 4 Austria 140 284 236 174 151 149 166 157 185 436 5 Belgium-Luxembourg 1,200 1,339 1,621 2,573 2,157r 2,012 2,796 2,087 2,373 2,625 6 Denmark 254 147 127 119 141 162 125 132 161 167 7 Finland 305 202 460 326 327 299 365 343 352 337 8 France 3,735 3,322 2,958 3,911 3,706' 3,164 3,209 2,861 3,074 3,350 9 Germany 845 1,179 948 1,122 1,040' 1,140 1,099 1,259 1,143 1,267 10 Greece 164 154 256 210 334 242 249 292 214 286 11 Italy 1,523 1,631 3,364 3,055 2,931' 2,981 3,879 3,923 3,998 4,015 12 Netherlands 677 514 575 560 545 604' 627 497' 581 568 13 Norway 299 276 227 233 180 173 172 167 249 298 14 Portugal 171 330 331 247 242 263 353 389 350 328 15 Spain 1,120 1,051 993 1,497 1,611' 1,720 1,769 1,726 1,801 1,708 16 Sweden 537 542 783 884 975 996 794 730 672 930 17 Switzerland 1,283 1,165 1,446 1,375 1,278' 1,708' 1,690 1,871 1,708 1,947 18 Turkey 300 149 145 136 132 172 147 137 159 144 19 United Kingdom 10,147 13,795 14,917 15,827 1166,,000044'' 15,835' 16,675 15,454' 14,834 19,354 20 Yugoslavia 363 611 853 872 887788 904 988 992 948 928 21 Other Western Europe1 122 175 179 176 224' 147 182 160 200 185 22 U.S.S.R 360 268 281 265 266 254 302 245 252 236 23 Other Eastern Europe2 657 1,254 1,410' 1,548 1,567' 1,539 1,752 1,776 1,809 1,731 24 Canada 5,152 4,143 4,810 5,297 6,201' 6,068' 7,024 7,661' 6,374 7,959 25 Latin America and Caribbean 57,565 67,993 92,992 96,829 99,120' 99,964' 103,375 105,302' 108,706 111,496 26 Argentina 2,281 4,389 5,689 5,672 5,900' 5,659 5,822 5,742 5,702 5,742 27 Bahamas 21,555 18,918 29,419 34,285 34,080' 33,285' 34,753 35,552' 36,685 37,929 28 Bermuda 184 496 218 324 401 481 404 411 340 650 29 Brazil 6,251 7,713 10,496 10,269 9,934' 9,927' 10,014 9,781' 10,209 9,839 30 British West Indies 9,694 9,818 15,663 14,320 16,422' 17,312' 18,313 18,001 17,844 18,986 31 Chile 970 1,441 1,951 1,876 2,028 2,019 2,074 2,203 2,321 2,511 32 Colombia 1,012 1,614 1,752 1,467 1,457 1,580 1,533 1,480 1,429 1,487 33 Cuba 0 4 3 3 4 3 3 7 14 5 34 Ecuador 705 1,025 1,190 1,257 11,,222299 1,239 - 1,285 1,307' 1,317 1,295 35 Guatemala3 94 134 137 208 9988 104 104 95' 115 118 36 Jamaica3 40 47 36 77 34 35 38 39 40 68 37 Mexico 5,479 9,099 12,595 12,447 13,243' 13,351 14,066 15,560 17,396 17,238 38 Netherlands Antilles 273 248 821 921 824' 756 874 933 894 867 39 Panama 3,098 6,041 4,974 5,643 5,517' 6,054 6,210 6,029 6,167 6,663 40 Peru 918 652 890 794 855' 871' 818 803' 796 786 41 Uruguay 52 105 137 103 105 100 94 102 107 142 42 Venezuela 3,474 4,657 5,438 5,458 5,330' 5,438 5,295 5,436 5,529 5,302 43 Other Latin America and Caribbean 1,485 1,593 1,583 1,705 1,658 1,751 1,675 1,821' 1,801 1,867 44 Asia 2255,,336622 30,730 39,078' 4400,,994411 4422,,551122'' 4433,,002200'' 4466,,002277 4444,,999999'' 4444,,991144 45,562 China 45 Mainland 4 35 195 201 202 204 205 188 186 153 46 Taiwan 1,499 1,821 2,469 2,413 2,568 2,414' 2,471 2,380 2,544 2,476 47 Hong Kong 1,479 1,804 2,247 2,330 2,429' 2,898 3,328 3,208 3,347 3,721 48 India 54 92 142 127 134 170 132 106 135 144 49 Indonesia 143 131 245 288 299 268 257 271 254 363 50 Israel 888 990 1,172 981 1,016' 1,186 1,309 1,178 1,108 1,086 51 Japan 12,646 16,911 21,361 23,977 23,918' 24,195' 25,995 25,954 25,358 25,330 52 Korea 2,282 3,793 5,697 5,823 6,031' 6,023' 6,678 6,426 6,483 6,486 53 Philippines 680 737 989 605 999 r 1,024 1,192 1,194 1,402 1,530 54 Thailand 758 933 876 835 829 698 661 546' 496 512 55 Middle East oil-exporting countries4 3,125 1,548 1,432' 1,486 1,914' 1,474 1,617 1,288 1,473 1,394 56 Other Asia 1,804 1,934 2,252 1,874 2,175' 2,465' 2,181 2,261 2,129 2,367 57 Africa 2,221 1,797 2,377 2,271 2,272 2,536 2,422 2,518' 2,715 2,953 58 Egypt 107 114 151 137 124 126 155 128 148 145 59 Morocco 82 103 223 153 118 87 71 88 204 273 60 South Africa 860 445 370 534 562 668 658 688 787 917 61 Zaire 164 144 94 111 108 98 98 100 87 102 62 Oil-exporting countries5 452 391 805 589 650 805 672 726 713 689 63 Other 556 600 734 746 710 752 769 789 777 828 64 Other countries 988 855 1,150 1,041 1,038 11,,004400 1,078 11,,112211 1,054 1,109 65 Australia 877 673 859 874 922 889988 939 998888 952 957 66 All other 111 182 290 167 116 142 139 133 102 152 67 Nonmonetary international and regional organizations6 56 36 78 74 41' 47 48 60 51 55 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. NOTE. Data for period prior to April 1978 include claims of banks' domestic 3. Included in "Other Latin America and Caribbean" through March 1978. customers on foreigners. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A62 International Statistics • November 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 TTyyppee ooff ccllaaiimm 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept/ 1 Total 111111122222226666666,,,,,,,777777788888887777777 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,666666699999998888888rrrrrrr 222222211111113333333,,,,,,,222222222222220000000 222222233333331111111,,,,,,,000000077777776666666 2 Banks' own claims on foreigners 111111111111115555555,,,,,,,555555544444445555555 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222rrrrrrr 111111188888881111111,,,,,,,555555555555551111111 185,871r 187,139r 111111199999997777777,,,,,,,333333311111112222222 196,860' 198,876 209,970 3 Foreign public borrowers 11111110000000,,,,,,,333333344444446666666 11111115555555,,,,,,,999999933333337777777 22222220000000,,,,,,,888888888888882222222 ''''''' 22222221111111,,,,,,,000000022222227777777 21,466r 21,541r 22222222222222,,,,,,,888888822222225555555 24,020' 24,393 25,037 4 Own foreign offices1 44444441111111,,,,,,,666666600000005555555 44444447777777,,,,,,,444444422222228888888 66666665555555,,,,,,,000000088888884444444 77777774444444,,,,,,,777777711111117777777 76,763r 75,441 ' 88888880000000,,,,,,,222222222222228888888 80,673r 80,350 88,260 5 Unaffiliated foreign banks 44444440000000,,,,,,,444444488888883333333 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,111111166666668888888rrrrrrr 44444448888888,,,,,,,111111100000004444444 49,600 ' 52,236r 55555555555555,,,,,,,222222211111112222222 54,204' 55,386 58,363 6 Deposits 5555555,,,,,,,444444422222228888888 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 8888888,,,,,,,222222200000005555555 8,798r 10,743' 11111111111111,,,,,,,333333344444442222222 11,278r 11,695 12,695 7 Other 33333335555555,,,,,,,000000055555554444444 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999911111114444444rrrrrrr 33333339999999,,,,,,,888888899999998888888 40,802r 41,493r 44444443333333,,,,,,,888888877777770000000''''''' 42,926' 43,690 45,668 8 All other foreigners 22222223333333,,,,,,,111111111111111111111 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 33333337777777,,,,,,,777777700000003333333 38,042r 37,921 33333339999999,,,,,,,000000044444447777777 37,963' 38,747 38,311 11111111111111,,,,,,,222222244444443333333 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333331111111,,,,,,,666666666666669999999 33333333333333,,,,,,,777777766666664444444 444444488888880000000 999999955555555555555 888888888888885555555 888888855555552222222 777777744444443333333 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss33...... 5555555,,,,,,,333333399999996666666 11111113333333,,,,,,,111111100000000000000 11111115555555,,,,,,,555555577777774444444 22222220000000,,,,,,,000000066666664444444 22222223333333,,,,,,,555555511111114444444 5555555,,,,,,,333333366666666666666 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 11111110000000,,,,,,,777777755555553333333 9999999,,,,,,,555555500000007777777 11111115555555,,,,,,,000000033333330000000 11111118888888,,,,,,,000000022222221111111 22222222222222,,,,,,,777777711111114444444 22222224444444,,,,,,,444444455555552222222 22222227777777,,,,,,,444444455555557777777 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 13,558 22,042 24,100 30,403 34,316 34,753 32,919 37,257 34,018 n.a. 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Data for March 1978 and for period before 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 certifbanks: 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 descripbranches, agencies, or wholly owned subsidiaries of head office or parent foreign tion of changes in data reported by nonbanks, see July 1979 BULLETIN, p. 550. bank. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the account of their NOTE. Beginning April 1978, data for banks' own claims are given on a monthly domestic customers. basis, but the data for claims of banks' own domestic customers are available on 3. Principally negotiable time certificates of deposit and bankers acceptances. 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 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa Dec. Dec. Sept. Dec. Mar.4 June" 1 Total 73,635 86,181 99,022 106,857 104,504 106,513 116,251 By borrower 2 Maturity of 1 year or less1 58,345 65,152 76,231 82,665 80,784 82,636 90,819 3 Foreign public borrowers 4,633 7,233 8,935 10,036 10,505 10,630 11,619 4 AH other foreigners 53,712 57,919 67,296 72,628 70,279 72,005 79,200 5 Maturity of over 1 year1 15,289 21,030 22,791 24,193 23,720 23,877 25,431 6 Foreign public borrowers 5,395 8,371 9,722 10,152 10,187 10,244 11,012 7 All other foreigners 9,894 12,659 13,069 14,041 13,533 13,634 14,419 By area Maturity of 1 year or less1 8 Europe 15,169 15,235 16,940 18,762 17,271 18,261 20,718 9 Canada 2,670 1,777 2,166 2,723 2,362 2,621 3,196 10 Latin America and Caribbean 20,895 24,928 28,097 32,034 30,792 31,096 32,911 11 17,545 21,641 26,876 26,748 28,009 28,305 31,448 12 Africa 1,496 1,077 1,401 1,757 1,624 1,624 1,770 13 All other2 569 493 751 640 726 729 776 Maturity of over 1 year1 14 Europe 3,142 4,160 4,705 5,118 5,579 5,578 6,277 15 Canada 1,426 1,317 1,188 1,448 1,180 1,200 1,316 16 Latin America and Caribbean 8,464 12,814 14,187 15,075 14,740 14,870 15,448 17 Asia 1,407 1,911 2,014 1,865 1,523 1,530 1,680 18 Africa 637 655 567 507 531 531 551 19 All other2 214 173 130 179 167 167 159 1. Remaining time to maturity. A Data in the two columns for this month differ because of changes in reporting 2. Includes nonmonetary international and regional organizations. 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
Nonbank-Reported Data A63 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks' Billions of dollars, end of period 1979 1980 1981 AArreeaa oorr ccoouunnttrryy 11997777 1199778822 June Sept. Dec. Mar. June Sept. Dec. Mar.'' June'' 1 Total 240.0 266.2 275.6 294.0 303.8 308.5 328.5 338.7 350.2 365.2 380.6 2 G 10 countries and Switzerland 116.4 124.7 125.2 135.7 138.4 141.2 154.2 158.7 161.5 165.6 167.7 3 Belgium-Luxembourg 8.4 9.0 9.7 10.7 11.1 10.8 13.1 13.5 12.9 13.4 14.2 4 France 11.0 12.2 12.7 12.0 11.7 12.0 14.0 13.9 14.0 14.3 14.7 5 Germany 9.6 11.3 10.8 12.8 12.2 11.4 12.7 12.9 11.5 12.5 12.1 6 6.5 6.7 6.1 6.1 6.4 6.2 6.9 7.2 8.2 7.6 8.4 7 Netherlands 3.5 4.4 4.0 4.7 4.8 4.3 4.5 4.4 4.4 4.5 4.1 8 Sweden 1.9 2.1 2.0 2.3 2.4 2.4 2.7 2.8 2.9 3.2 3.1 9 Switzerland 3.6 5.3 4.7 5.0 4.7 4.3 3.3 3.4 4.0 4.0 5.2 10 United Kingdom 46.5 47.3 50.3 53.7 56.4 57.6 64.3 66.6 68.7 68.3 66.2 11 Canada 6.4 6.0 5.5 6.0 6.3 6.9 7.2 7.7 8.4 8.5 10.8 12 Japan 18.8 20.6 19.5 22.3 22.4 25.4 25.5 26.1 26.5 29.3 28.9 13 Other developed countries 18.6 19.4 18.2 19.7 19.9 18.8 20.3 20.6 21.3 23.1 24.8 14 Austria 1.3 1.7 1.8 2.0 2.0 1.7 1.8 1.8 1.9 1.8 2.1 15 Denmark 1.6 2.0 1.9 2.0 2.2 2.1 2.2 2.2 2.3 2.4 2.3 16 Finland 1.2 1.2 1.1 1.2 1.2 1.1 1.3 1.2 1.4 1.3 1.3 17 Greece 2.2 2.3 2.2 2.3 2.4 2.4 2.5 2.6 2.8 2.7 3.0 18 Norway 1.9 2.1 2.1 2.3 2.3 2.4 2.4 2.4 2.6 2.8 2.8 19 Portugal .6 .6 .5 .7 .7 .6 .6 .7 .6 .6 .8 20 Spain 3.6 3.5 3.0 3.3 3.5 3.5 3.9 4.2 4.0 5.1 5.7 21 Turkey 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.3 1.5 1.5 1.4 22 Other Western Europe .9 1.3 .9 1.5 1.4 1.4 1.6 1.7 1.7 1.8 1.8 23 South Africa 2.4 2.0 1.8 1.7 1.3 1.1 1.5 1.2 1.1 1.5 1.9 24 Australia 1.4 1.4 1.4 1.3 1.3 1.2 1.2 1.2 1.3 1.4 1.7 25 OPEC countries3 17.6 22.7 22.7 23.4 22.9 21.8 20.9 21.3 22.8 21.5 22.2 26 Ecuador 1.1 1.6 1.6 1.6 1.7 1.8 1.8 1.9 2.1 2.0 2.0 27 Venezuela 5.5 7.2 7.6 7.9 8.7 7.9 7.9 8.5 9.1 8.3 8.7 28 Indonesia 2.2 2.0 1.9 1.9 1.9 1.9 1.9 1.9 1.8 2.1 2.1 29 Middle East countries 6.9 9.5 9.0 9.2 8.0 7.8 6.9 6.6 6.9 6.5 6.8 30 African countries 1.9 2.5 2.6 2.8 2.6 2.5 2.5 2.4 2.8 2.6 2.6 31 Non-OPEC developing countries 48.7 52.6 56.0 58.9 62.9 63.7 67.4 72.8 77.0 81.8 84.6 Latin America 32 Argentina 2.9 3.0 3.5 4.1 5.0 5.5 5.6 7.6 7.9 9.4 8.5 33 Brazil 12.7 14.9 15.1 15.1 15.2 15.0 15.3 15.8 16.2 16.7 17.3 34 Chile .9 1.6 1.8 2.2 2.5 2.5 2.7 3.2 3.7 4.0 4.7 35 Colombia 1.3 1.4 1.5 1.7 2.2 2.1 2.2 2.4 2.6 2.4 2.5 36 Mexico 11.9 10.8 10.7 11.4 12.0 12.1 13.6 14.4 15.9 17.0 18.1 37 1.9 1.7 1.4 1.4 1.5 1.3 1.4 1.5 1.8 1.7 1.7 38 Other Latin America 2.6 3.6 3.3 3.6 3.7 3.6 3.6 3.9 3.9 4.8 3.8 Asia China 39 Mainland .0 .0 .1 .1 .1 .1 .1 .1 .2 .2 .2 40 Taiwan 3.1 2.9 3.3 3.5 3.4 3.6 3.8 4.1 4.2 4.4 4.7 41 India .3 .2 .2 .2 .2 .2 .2 .2 .3 .3 .3 42 Israel .9 1.0 .9 1.0 1.3 .9 1.2 1.1 1.5 1.3 1.8 43 Korea (South) 3.9 3.9 5.0 5.3 5.4 6.4 7.1 7.3 7.1 7.7 8.7 44 Malaysia4 .7 .6 .7 .7 .9 .8 .9 .9 1.0 1.0 1.4 45 Philippines 2.5 2.8 3.7 3.7 4.2 4.4 4.6 4.8 4.9 4.8 5.2 46 Thailand 1.1 1.2 1.4 1.6 1.5 1.4 1.5 1.5 1.4 1.5 1.5 47 Other Asia .4 .2 .4 .4 .5 .5 .5 .5 .6 .5 .7 Africa 48 Egypt .3 .4 .7 .6 .6 .7 .7 .7 .8 .8 .7 49 Morocco .5 .6 .5 .5 .6 .5 .5 .6 .7 .6 .5 50 Zaire .3 .2 .2 .2 .2 .2 .2 .2 .2 .4 .2 51 Other Africa5 .7 1.4 1.5 1.6 1.7 1.7 1.8 2.0 2.0 2.1 2.1 52 Eastern Europe 6.3 6.9 6.7 7.2 7.3 7.3 7.2 7.3 7.4 7.7 7.8 53 U.S.S.R 1.6 1.3 .9 .9 .7 .6 .5 .5 .4 .4 .5 54 Yugoslavia 1.1 1.5 1.7 1.8 1.8 1.9 2.1 2.1 2.3 2.4 2.5 55 Other 3.7 4.1 4.1 4.6 4.8 4.9 4.5 4.7 4.6 4.9 4.9 56 Offshore banking centers 26.1 31.0 37.0 38.6 40.4 42.6 44.3 44.5 46.6 50.8 57.8 57 Bahamas 9.9 10.4 14.4 13.0 13.7 13.9 13.7 13.1 13.3 13.6 17.2 58 Bermuda .6 .7 .7 .7 .8 .6 .6 .6 .6 .7 .9 59 Cayman Islands and other British West Indies 3.7 7.4 7.4 9.5 9.4 11.3 9.8 10.1 10.6 11.3 11.9 60 Netherlands Antilles .7 .8 1.0 1.1 1.2 .9 1.2 1.3 2.1 2.1 2.4 61 Panama6 3.1 3.0 3.8 3.4 4.3 4.9 5.6 5.6 5.4 6.3 6.8 62 Lebanon .2 .1 .1 .2 .2 .2 .2 .2 .2 .2 .2 63 Hong Kong 3.7 4.2 4.9 5.5 6.0 5.7 6.9 7.5 8.1 8.4 10.2 64 Singapore 3.7 3.9 4.2 4.9 4.5 4.7 5.9 5.6 5.9 7.2 8.0 65 Others7 .5 .5 .4 .4 .4 .4 .4 .4 .3 .9 .3 66 Miscellaneous and unallocated8 5.3 9.1 9.9 10.6 11.7 13.1 14.3 13.7 13.9 14.8 15.7 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
A64 International Statistics • November 1981 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1981 1981 CCoouunnttrryy oorr aarreeaa 11997799 11998800 Jan.- Sept. Mar. Apr. May June July Aug. Sept.P Holdings (end of period)1 1 Estimated total2 51,484r 57,549' 61,877' 62,245' 62,967' 64,232' 64,638' 66,437 66,970 2 Foreign countries2 46,055' 52,961' 56,958' 57,474' 58,168' 59,289' 59,658' 61,579 62,331 3 Europe2 24,964' 24,468' 25,353' 25,005' 24,641' 25,000' 24.573' 25,090 24,334 4 Belgium-Luxembourg 60 77 106 123 131 173 163 370 372 5 Germany2 14,056 12,327' 12,318' 11,907' 11,940' 12,585' 13,226' 13,524 12,830 6 Netherlands 1,466 1,884 1,965 1,950 1,813 1,781 1,756 1,760 1,756 7 Sweden 647 595 566 567 572 582 606 623 646 8 Switzerland2 1,868 1,485 1,527 1,526 1,535 1,600 763 848 876 9 United Kingdom 6,376r 7,323' 8,031' 8,002' 7,414' 6,976' 6,709' 6,630 6,469 10 Other Western Europe 491 777 839 930 1,236 1,304 1,350 1,334 1,385 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 232 449 478 464 486 484 501 514 528 13 Latin America and Caribbean 466 999 1,151 939 849 666 724 818 854 14 Venezuela 103 292 292 292 287 287 287 313 294 15 Other Latin America and Caribbean . 200 285 339 389 430 217 260 321 313 16 Netherlands Antilles 163 421 519 258 132 162 177 184 246 17 Asia 19,805 26.112 28,827 29,920 31,047 31,997 32,716 34,008 35,468 18 Japan 11,175 9,479 9,543 9,566 9,606 9,778 9,786 9,890 10,102 19 Africa 591 919 1,139 1.139 1,140 1,139 1,139 1,140 1,140 20 All other -3 14 9 7 6 3 6 8 8 21 Nonmonetary international and regional organizations 5,429 4,588 4,919 4,771 4,799' 4,943 4,980 4,858 4,639 22 International 5,388 4,548 4,878 4,759 4,791 4,936 4,977 4,856 4,636 23 Latin American regional 37 36 36 6 1 1 1 1 1 Transactions (net purchases, or sales (-) during period) 24 Total2 6,537' 6,066' 9,421 1,525' 368' 721' 1,266 405 1,799 533 25 Foreign countries2 6,238' 6,906' 9,370 1,230' 516' 694' 1,121 369 1,920 753 26 Official institutions 1,697 3,865 8,857' 1,084 495 321 980 798 1,532 1,378 27 Other foreign2 4,543' 3,040' 512 146' 21' 373' 141 -429 388 -625 28 Nonmonetary international and regional organizations 300' -843 52' 295 -148 26 145 36 -120 -220 MEMO: Oil-exporting countries 29 Middle East3 -1,014 7,672 8,408' 1,322 1,062 841 565 659 1,204 1,316 30 Africa4 -100 327 220 0 0 0 0 0 0 0 1. Estimated official and private holdings of marketable U.S. Treasury securities 2. Beginning December 1978, includes U.S. Treasury notes publicly issued to with an original maturity of more than 1 year. Data are based on a benchmark private Foreign residents denominated in foreign currencies. survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign United Arab Emirates (Trucial States). countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1981 AAsssseettss 11997788 11997799 11998800 Apr, May June July Aug. Sept. Oct.P 1 Deposits 367 429 411 475 346 338 285 255 419 547 Assets held in custody 2 U.S. Treasury securities1 117,126 95,075 102,417 113,746 109,742 107,884 105,064 102,197 101,068 101,068 3 Earmarked gold2 15,463 15,169 14,965 14,886 14,875 14,871 14,854 14,833 14,813 14,811 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 A65 3.23 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1981 1981 Transactions, and area or country 1979 1980 Jan.- Mar. Apr. May June July Aug. Sept.? Sept.P U.S. corporate securities STOCKS 1 Foreign purchases 22,783' 40,273' 32,042 3,951 4,034' 4,076' 4,389 3,455' 3,152 2,846 2 Foreign sales 21,104r 34,852' 26,800 3,313' 3,315' 2,860' 3,419 3,257 3,206 2,322 3 Net purchases, or sales (-) l,679r 5,421' 5,242 638' 719' 1,217' 970 198' -54 525 4 Foreign countries 1,662' 5,403' 5,200 630' 711' 1,207' 965 190' -49 530 5 Europe 237' 3,110' 3,228 607' 420' 764' 512 119' 74 37 6 France 137r 490' 866 110 126 393 45 48 29 10 7 Germany — 215r 172' -20 30' 17' -20' 16 -28 -28 -48 8 Netherlands -71 -328 43 12 -2 31 29 -41 -28 -3 9 Switzerland -519 308 291 138 75 84 0 -19 1 -68 10 United Kingdom 964 2,523' 1,853 309 197 215 371 147' 85 131 11 Canada 552 887' 782 105 230 143 104 77 -39 44 12 Latin America and Caribbean -19 148 -57 14 -26 9 126 -126 -51 -81 13 Middle East1 688 1,206 954 -95 91 223 33 105 -36 497 14 Other Asia 211 16 330 0 3 71' 187 37 20 29 15 Africa -14 -1 6 -1 -1 -1 4 -1 0 0 16 Other countries 7 38 -42 0 -5 -4 -1 -21 -17 4 17 Nonmonetary international and regional organizations 17 18 42 8 8 10 5 8 -5 -5 BONDS2 18 Foreign purchases 8,871' 15,425 13,740 2,034' 1,548' 897' 1,939 1,894 1,171 1,309 19 Foreign sales 7,592' 9,964 8,636 1,243' 774 669 1,450 820 894 1,051 20 Net purchases, or sales (-) 1,279' 5,461 5,104 791' 774' 228' 489 1,074 277 258 21 Foreign countries 1,376 r 5,526 5,030 793' 732' 246' 473 1,067 278 243 22 Europe 671' 1,576 1,400 128' 327' -3 179 122 176 5 23 France 56r 129 -4 9 8 17 10 -5 -9 4 24 Germany 59 ' 213 688 92' 22' 28 151 68 105 64 25 Netherlands -202 -65 44 14 13 4 0 0 -2 -2 26 Switzerland -118 54 73 4 17 34 20 22 22 -23 27 United Kingdom 814 1,257 459 -22 231 -87 4 11 45 -53 28 Canada 80 135 60 19 12 18 -6 23 2 -12 29 Latin America and Caribbean 109 185 117 28 22 9 12 21 -5 7 30 Middle East1 424 3,499 3,515 723 362 192 359 853 81 252 31 Other Asia 88 117 -58 -105 9 29' -71 49 24 -9 32 Africa 1 5 0 0 0 0 0 0 0 0 33 Other countries 1 10 -3 0 0 0 1' 0 0 -1 34 Nonmonetary international and regional organizations -96 -65 73 -1 42 -18 16 7 -1 15 Foreign securities 35 Stocks, net purchases, or sales (-) -817' -2,139' 35 -188' -92' 32 -114 108 51 190 36 Foreign purchases 4,617r 7,887' 7,285 763 852' 853 891 891 835 792 37 Foreign sales 5,434' 10,026' 7,249 951' 944' 821 1,005 783 784 603 38 Bonds, net purchases, or sales (-) -3,912' -1,013' -2,492 -117' -632 -194 -479 -417 -32 -427 39 Foreign purchases 12,662' 17,073' 11,994 1,710' 1,155' 1,292 1,509 1,768 1,078 1,023 40 Foreign sales 16,573' 18,086' 14,485 1,827 1,787' 1,487 1,988 2,185 1,110 1,450 41 Net purchases, or sales (—), of stocks and bonds ... -4,729' -3,152' -2,456 -305' -724' -162 -592 -309 19 -237 42 Foreign countries -3,979' -4,029' -2,545 -317' -734' -162 -592 -619 62 40 43 Europe -1,698' -1,105' -260 -139' -302' 75 -41 147 -55 75 44 Canada -2,601 -1,959 -2,355 -101 -271 -385 -507 -858 -74 -231 45 Latin America and Caribbean 343' 80' 132 -68 119 -51 -10 -24 62 1 46 Asia 15' -1,147' -25 9 -234 174 -104 141 131 204 47 Africa -63' 24 -62 -17 -7 -3 -6 -2 -3 -6 48 Other countries 25 78' 26 -2 -39 29 75 -23 1 -3 49 Nonmonetary international and regional organizations -750 876 88 12 9 0 0 311 -43 -277 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
A66 International Statistics • November 1981 3.24 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1980 1981 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997788 11997799 11998800 June Sept. Dec. Mar. June? 1 Total 14,956 17,104 21,235 18,649 18,682 21,235 21,646r 20,937 2 Payable in dollars 11.527 14,029 17,527 15,210 15,345 17,527 18,121' 17,782 3 Payable in foreign currencies2 3.429 3,075 3,709 3,439 3,337 3,709 3,525' 3,154 By type 4 Financial liabilities 6.368 7,411 11,022 8,417 8,345 11,022 11,458 11,140 5 Payable in dollars 3,853 5,141 8,249 5,796 5,858 8,249 8,825 8,838 6 Payable in foreign currencies 2.515 2,270 2,772 2.621 2,487 2,772 2,633 2,302 7 Commercial liabilities 8,588 9,693 10,214 10,232 10,337 10,214 10,188' 9,796 8 Trade payables 4,001 4,421 4,400 4,296 4,377 4,400 4,781' 4,400 9 Advance receipts and other liabilities 4,587 5,272 5,814 5,936 5,960 5,814 5,407' 5,396 10 Payable in dollars 7,674 8,888 9,277 9,413 9,487 9,277 9,296' 8,944 11 Payable in foreign currencies 914 805 936 819 850 936 892' 852 By area or country Financial liabilities 12 Europe 3,971 4,655 6,309 5,437 5,316 6,309 6,007 5,748 13 Belgium-Luxembourg 293 345 484 437 432 484 553 511 14 France 173 175 327 347 360 327 324 354 15 Germany 366 497 582 657 557 582 498 471 16 Netherlands 391 829 663 799 781 663 544 624 17 Switzerland 248 170 354 233 224 354 315 321 18 United Kingdom 2,167 2,460 3,765 2,796 2,832 3,765 3,661 3,337 19 Canada 247 466 864 557 551 864 1,059 945 20 Latin America and Caribbean 1.357 1,483 3,100 1,641 1,734 3,100 3,483 3,575 21 Bahamas 478 375 964 429 407 964 1,217 1,256 22 Bermuda 4 81 1 2 1 1 1 1 23 Brazil 10 18 23 25 20 23 19 20 24 British West Indies 194 514 1,452 714 708 1,452 1,458 1,534 25 Mexico 102 121 99 101 108 99 97 98 26 Venezuela 49 72 81 72 74 81 85 91 27 Asia 784 799 723 757 712 723 880 843 28 Japan 717 726 644 683 618 644 766 730 29 Middle East oil-exporting countries3 32 31 38 31 37 38 51 29 30 Africa 5 4 11 10 11 11 6 5 31 Oil-exporting countries4 2 1 1 1 1 1 1 0 32 All other5 5 4 15 15 21 15 23 24 Commercial liabilities 33 Europe 3,047 3,636 4,067 4,036 4,074 4,067 3,814' 3,894 34 Belgium-Luxembourg 97 137 90 133 109 90 83' 72 35 France 321 467 582 485 501 582 563' 564 36 Germany 523 545 679 724 686 679 639 615 37 Netherlands 246 227 219 245 276 219 246 225 38 Switzerland 302 310 493 462 452 493 385 375 39 United Kingdom 824 1,077 1,011 1,133 1,047 1,011 880' 949 40 Canada 667 868 785 591 591 785 749' 661 41 Latin America 997 1,323 1,244 1,271 1,361 1,244 1,287' 1,156 42 Bahamas 25 69 8 26 8 8 1 4 43 Bermuda 97 32 73 107 114 73 111 72 44 Brazil 74 203 111 151 156 111 84' 54 45 British West Indies 53 21 35 37 12 35 16 34 46 Mexico 106 257 326 272 324 326 421' 327 47 Venezuela 303 301 307 210 293 307 253 290 48 2,931 2,905 2,848 3,091 2,909 2,848 3,071R 2,788 49 Japan 448 494 645 418 502 645 810' 867 50 Middle East oil-exporting countries3 1,523 1,017 894 1,030 944 894 955' 852 51 Africa 743 728 814 875 1,006 814 828' 675 52 Oil-exporting countries4 312 384 514 498 633 514 519' 392 53 All other5 203 233 456 367 396 456 440 622 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 A67 3.25 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1980 1981 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997788 11997799 11998800 June Sept. Dec. Mar. June/7 1 Total 27,882 31,095 34,288 32,290 31,908 34,288 37,548r 35,081 2 Payable in dollars 24,910 27.936 31.415 29.216 28,612 31.415 34.609' 32,202 3 Payable in foreign currencies2 2.972 3.159 2.874 3.074 3.296 2.874 2.939 ' 2.879 Bv type 4 Financial claims 16.554 18.282 19.701 18.858 18.573 19.701 22,149 20.028 5 Deposits 11.111 12.654 13,872 13.028 12.520 13.872 16,425 14,389 6 Payable in dollars 10.043 11.738 13.097 12.125 11.307 13.097 15.630 13.664 7 Payable in foreign currencies 1.068 916 775 904 1.213 775 795 725 8 Other financial claims 5.443 5.628 5.829 5,830 6.053 5,829 5.724 5.639 9 Payable in dollars 3.874 3.802 4,146 4.102 4.399 4,146 4.078 3,894 10 Payable in foreign currencies 1,569 1.826 1,683 1.728 1.655 1.683 1.646 1.655 11 Commercial claims 11.329 12.813 14.588 13.432 13,335 14.588 15.399' 15.053 12 Trade receivables 10.770 12.122 13.871 12.715 12.635 13,871 14.598r 14.222 13 Advance payments and other claims 559 691 717 717 700 717 801' 830 14 Payable in dollars 10.993 12.396 14.171 12.989 12.906 14.171 14,901' 14.554 15 Payable in foreign currencies 335 416 416 443 428 416 498' 499 Bv area or country Financial claims 16 Europe 5.215 6.163 6.094 5.882 5,680 6.094 6.098 5.215 17 Belgium-Luxembourg 48 32 195 23 17 195 170 174 18 France 178 177 334 307 409 334 411 377 19 Germany 510 409 230 195 168 230 213 139 20 Netherlands 103 53 32 37 30 32 42 30 21 Switzerland 98 73 59 96 41 59 90 96 22 United Kingdom 4,021 5.107 4.967 4.908 4.634 4,967 4,900 4.046 23 Canada 4.469 4.841 5.016 4.918 4.906 5.016 6.562 6,088 24 Latin America and Caribbean 5,714 6.276 7.612 6.956 6.806 7.612 8.548 7.855 25 Bahamas 3,001 2.757 3.420 3.098 2.845 3.420 3.947 3.231 26 Bermuda 80 30 135 25 65 135 13 33 27 Brazil 151 163 96 120 116 96 22 20 28 British West Indies 1.291 2.001 2.615 2.408 2.337 2.615 3.393 3.382 29 Mexico 162 157 208 177 192 208 168 158 30 Venezuela 157 143 137 139 128 137 131 143 31 920 706 710 781 853 710 691 618 32 Japan 305 199 177 276 331 177 191 107 33 Middle East oil-exporting countries-' 18 16 20 16 20 20 17 19 34 Africa 181 253 238 256 260 238 214 216 35 Oil-exporting countries4 10 49 26 35 29 26 27 39 36 All other5 55 44 32 65 68 32 36 37 Commercial claims 37 Europe 3,982 4,904 5.487 4.850 4.676 5,487 5.822' 5,449 38 Belgium-Luxembourg 144 202 232 258 230 232 277' 235 39 France 609 727 1,128 665 709 1.128 918' 782 40 Germany 398 589 590 512 569 590 597 ' 570 41 Netherlands 267 298 318 297 289 318 347' 308 42 Switzerland 198 272 351 434 339 351 461' 474 43 United Kingdom 824 901 930 907 991 930 1.187' 1,067 44 Canada 1,094 846 897 899 933 897 1,037' 987 45 Latin America and Caribbean 2,546 2,853 3,790 3,291 3.389 3,790 3.832' 3.786 46 Bahamas 109 21 21 19 53 21 15 29 47 Bermuda 215 197 148 133 81 148 170 192 48 Brazil 628 645 861 696 712 861 799' 823 49 British West Indies 9 16 34 9 17 34 15 34 50 Mexico 505 698 1,090 931 992 1,090 1.051' 1,110 51 Venezuela 291 343 407 395 388 407 436' 417 52 3.081 3.415 3.447 3,577 3.398 3,447 3,704' 3,721 53 Japan 976 1,140 990 1,143 1,094 990 1.234' 1.171 54 Middle East oil-exporting countries3 716 766 821 830 837 821 925' 956 55 Africa 447 554 651 566 669 651 678' 701 56 Oil-exporting countries4 136 133 151 115 135 151 143 137 57 All other5 178 240 316 249 270 316 327' 409 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
A68 International Statistics • November 1981 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Sept. 30. 1981 Rate on Sept. 30. 1981 Rate on Sept. 30, 1981 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Argentina 181.54 Sept. 1981 France1 17.5 Oct. 1981 Sweden 11.0 Oct. 1981 Austria .. 6.75 Mar. 1980 Germany, Fed. Rep. of 7.5 May 1980 Switzerland _ 6.0 Sept. 1981 Belgium.. 13.0 May 1981 Italy 19.0 Mar. 1981 United Kingdom' Brazil 49.0 Mar. 1981 Japan 6.25 Mar. 1981 Venezuela 11.0 Nov. 1980 Canada .. 18.21 Oct. 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 discounts or makes advances against eligible commercial paper and/or Treasury bills for 7 to 10 days. government commercial banks or brokers. For countries with 2. Minimum lending rate suspended as of August 20, 1981. more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the NOTE. Rates shown are mainly those at which the central bank either largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1981 CCoouunnttrryy,, oorr ttyyppee 11997788 11997799 11998800 Apr. May June July Aug. Sept. Oct. 1 Eurodollars 8.74 11.96 14.00 15.95 19.06 17.86 18.50 18.79 17.80 16.34 2 United Kingdom 9.18 13.60 16.59 12.26 12.34 12.61 13.63 14.02 14.60 16.27 3 Canada 8.52 11.91 13.12 17.35 18.96 19.28 19.67 21.84 20.42 18.84 4 Germany 3.67 6.64 9.45 13.12 13.06 13.05 12.92 12.87 12.48 11.72 5 Switzerland 0.74 2.04 5.79 8.67 9.87 10.02 9.76 9.05 10.56 10.85 6 Netherlands 6.53 9.33 10.60 10.41 11.76 11.81 12.38 13.54 12.96 12.57 7 France 8.10 9.44 12.18 13.00 15.75 18.84 17.34 17.40 17.65 16.47 8 Italy 11.40 11.85 17.50 19.92 19.92 20.49 20.78 20.94 21.07 21.00 9 Belgium 7.14 10.48 14.06 17.16 16.90 15.58 16.16 16.00 16.00 15.83 10 Japan 4.75 6.10 11.45 6.83 7.22 7.41 7.16 7.22 7.26 7.13 NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium. 3-month Treasury bills; and Japan, Gensaki rate. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1981 CCoouunnttrryy//ccuurrrreennccyy 11997788 11997799 11998800 Apr. May June July Aug. Sept. Oct. 1 Australia/dollar 114.41 111.77 114.00 115.32 114.06 114.07 114.27 113.99 114.86 114.32 2. Austria/schilling 6.8958 7.4799 7.7349 6.5355 6.1722 5.9502 5.8225 5.6968 6.0554 6.3356 3 Belgium/franc 3.1809 3.4098 3.4247 2.8220 2.6742 2.5734 2.5027 2.4466 2.5978 2.6557 4 Canada/dollar 87.729 85.386 85.530 83.966 83.265 83.050 82.601 81.766 83.275 83.136 5 Denmark/krone 18.156 19.010 17.766 14.683 13.864 13.384 13.074 12.732 13.552 13.825 6 Finland/markka 24.337 27.732 26.892 23.059 23.207 22.511 22.045 21.607 22.225 22.601 7 France/franc 22.218 23.504 23.694 19.548 18.225 17.679 17.253 16.720 17.769 17.762 8 Germany/deutsche mark 49.867 54.561 55.089 46.219 43.601 42.054 40.977 39.988 42.545 44.370 9 India/rupee 12.207 12.265 12.686 12.060 11.900 11.688 11.229 11.038 10.971 10.948 10 Ireland/pound 191.84 204.65 205.77 168.46 159.49 153.61 149.40 146.04 155.04 157.50 11 Italy/lira .11782 .12035 .11694 .09280 .08766 .08436 .08233 .08038 .08424 .08374 12 Japan/yen .47981 .45834 .44311 .46520 .45332 .44621 .43055 .42881 .43582 .43198 13 Malaysia/ringgit 43.210 45.720 45.967 43.182 42.752 42.720 42.519 42.119 42.527 43.500 14 Mexico/peso 4.3896 4.3826 4.3535 4.1880 4.1500 4.1066 4.0650 4.0301 3.9859 3.9371 15 Netherlands/guilder 46.284 49.843 50.369 41.660 39.224 37.816 36.833 36.009 38.329 40.151 16 New Zealand/dollar 103.64 102.23 97.337 90.273 88.150 85.823 83.771 82.331 82.644 82.355 17 Norway/krone 19.079 19.747 20.261 18.271 17.652 16.907 16.387 16.177 16.779 16.897 18 Portugal/escudo 2.2782 2.0437 1.9980 1.7178 1.6449 1.5899 1.5429 1.4999 1.5268 1.5458 19 South Africa/rand 115.01 118.72 128.54 123.32 119.35 115.18 108.46 105.27 105.56 104.61 20 Spain/peseta 1.3073 1.4896 1.3958 1.1395 1.0953 1.0565 1.0248 .99864 1.0407 1.0416 21 Sri Lanka/rupee 6.3834 6.4226 6.1947 5.4185 5.4422 5.3970 5.3491 5.1932 5.0056 4.8372 2? Sweden/krona 22.139 23.323 23.647 21.309 20.450 19.802 19.293 18.870 18.435 18.023 23 Switzerland/franc 56.283 60.121 59.697 50.664 48.400 48.226 47.667 46.091 49.511 53.080 24 United Kingdom/pound 191.84 212.24 232.58 217.53 208.84 197.38 187.37 182.03 181.46 184.07 MEMO: 25 United States/dollar1 92.39 88.09 87.39 98.80 103.59 106.86 109.87 112.29 107.98 106.34 1. Index of weighted-average exchange value of U.S. dollar against cur- the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on page rencies of other G-10 countries plus Switzerland. March 1973 = 100. 700 of the August 1978 BULLETIN. Weights are 1972-76 global trade of each of the 10 countries. Series revised as of August 1978. For description and back data, see "Index of NOTE. Averages of certified noon buying rates in New York for cable transfers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading IPCs Individuals, partnerships, and corporations when more than half of figures in that column REITs Real estate investment trusts are changed.) RPs Repurchase agreements Amounts insignificant in terms of the last decimal SMSAs Standard metropolitan statistical areas place shown in the table (for example, less than Cell not applicable 500,000 when the smallest unit given is millions) General Information Minus signs are used to indicate (1) a decrease, (2) a negative 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 June 1981 A78 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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, June 30, 1981 October 1981 A80 Commercial bank assets and liabilities, March 31, 1981 July 1981 A72 Commercial bank assets and liabilities, June 30, 1981 October 1981 A74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A70 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH FREDERICK H. SCHULTZ, Vice Chairman J. CHARLES 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 MARYELLEN A. BROWN, Assistant to the General Counsel ELEANOR J. STOCKWELL, Senior Deputy Associate Director DONALD L. KOHN, Deputy Associate Director J. CORTLAND G. PERET, Deputy Associate Director OFFICE OF THE SECRETARY HELMUT F. WENDEL, Deputy Associate Director MARTHA BETHEA, Assistant Director WILLIAM W. WILES, Secretary JOE M. CLEAVER, Assistant Director BARBARA R. LOWREY, Assistant Secretary ROBERT M. FISHER, Assistant Director JAMES MCAFEE, Assistant Secretary DAVID E. LINDSEY, Assistant Director •THEODORE E. DOWNING, Assistant Secretary LAWRENCE SLIFMAN, Assistant Director FREDERICK M. STRUBLE, Assistant Director STEPHEN P. TAYLOR, Assistant Director DIVISION OF CONSUMER LEVON H. GARABEDIAN, Assistant Director (Administration) AND COMMUNITY AFFAIRS JANET O. HART, Director DIVISION OF INTERNATIONAL FINANCE GRIFFITH L. GARWOOD, Deputy Director JERAULD C. KLUCKMAN, Associate Director EDWIN M. TRUMAN, Director GLENN E. LONEY, Assistant Director ROBERT F. GEMMILL, Associate Director DOLORES S. SMITH, Assistant Director CHARLES J. SIEGMAN, Associate Director LARRY J. PROMISEL, Senior Deputy Associate Director DALE W. HENDERSON, Deputy Associate Director DIVISION OF BANKING SAMUEL PIZER, Staff Adviser SUPERVISION AND REGULATION RALPH W. SMITH, JR., Assistant Director 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
A71 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 ACTIVITIES tToNY J. SALVAGGIO, Acting Staff Director THEODORE E. ALLISON, Staff Director WOHN M. DENKLER, Staff Director HARRY A. GUINTER, Assistant Director for Contingency EDWARD T. MULRENIN, Assistant Staff Director Planning JOSEPH W. DANIELS, SR., Director of Equal Employment Opportunity DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF DATA PROCESSING CLYDE H. FARNSWORTH, JR., Director CHARLES L. HAMPTON, Director LORIN S. MEEDER, Associate Director BRUCE M. BEARDSLEY, Deputy Director WALTER ALTHAUSEN, Assistant Director $UYLESS D. BLACK, Associate Director CHARLES W. BENNETT, Assistant Director GLENN L. CUMMINS, Assistant Director RICHARD B. GREEN, Assistant Director NEAL H. HILLERMAN, Assistant Director ELLIOTT C. MCENTEE, Assistant Director C. WILLIAM SCHLEICHER, JR., Assistant Director DAVID L. ROBINSON, Assistant Director ROBERT J. ZEMEL, Assistant Director P.D. RING, Adviser §HOWARD F. CRUMB, Acting 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 ROBERT E. FRAZIER, Associate Director WALTER W. KREIMANN, Associate Director *On loan from the Federal Reserve Bank of Chicago. tOn loan from the Federal Reserve Bank of Dallas. $On leave of absence. §On loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
72 Federal Reserve Bulletin • November 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 RICHARD G, DAVIS, Associate Economist MURRAY ALTMANN, Secretary EDWARD C. ETTIN, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary PETER M. KEIR, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary DONALD J. MULLINEAUX, Associate Economist MICHAEL BRADFIELD, General Counsel MICHAEL J. PRELL, Associate Economist JAMES H. OLTMAN, Deputy General Counsel KARL L. SCHELD, Associate Economist ROBERT E. MANNION, Assistant General Counsel EDWIN M. TRUMAN, Associate Economist JAMES L. KICHLINE, Economist JOSEPH S. ZEISEL, Associate Economist JOSEPH E. BURNS, Associate Economist PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL MERLE E. GILLIAND, Fourth District, President CHAUNCEY E. SCHMIDT, Twelfth District, Vice President WILLIAM S. EDGERLY, First District ROBERT M. SURDAM, Seventh District DONALD C. PLATTEN, Second District RONALD TERRY, Eighth District JOHN W. WALTHER, Third District CLARENCE G. FRAME, Ninth District J. OWEN COLE, Fifth District GORDON E. WELLS, Tenth District ROBERT STRICKLAND, Sixth District T. C. FROST, JR., Eleventh District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary CONSUMER ADVISORY COUNCIL RALPH J. ROHNER, Washington, D.C., Chairman CHARLOTTE H. SCOTT, Charlottesville, Virginia, Vice Chairman ARTHUR F. BOUTON, Little Rock, Arkansas F. THOMAS JUSTER, Ann Arbor, Michigan JULIA H. BOYD, Alexandria, Virginia RICHARD F. KERR, Palm City, Florida ELLEN BROADMAN, Washington, D.C. HARVEY M. KUHNLEY, Minneapolis, Minnesota JAMES L. BROWN, Milwaukee, Wisconsin THE REV. ROBERT J. MCEWEN, S.J., Chestnut Hill, MARK E. BUDNITZ, Atlanta, Georgia Massachusetts JOSEPH N. CUGINI, Westerly, Rhode Island STAN L. MULARZ, Chicago, Illinois RICHARD S. D'AGOSTINO, Philadelphia, Pennsylvania WILLIAM J. O'CONNOR, Buffalo, New York SUSAN PIERSON DE WITT, Springfield, Illinois MARGARET REILLY-PETRONE, Upper Montclair, New Jersey JOANNE S. FAULKNER, New Haven, Connecticut RENE REIXACH, Rochester, New York LUTHER GATLING, New York, New York FLORENCE M. RICE, New York, New York VERNARD W. HENLEY, Richmond, Virginia HENRY B. SCHECHTER, Washington, D.C. JUAN JESUS HINOJOSA, McAllen, Texas PETER D. SCHELLIE, Washington, D.C. SHIRLEY T. HOSOI, Los Angeles, California NANCY Z. SPILLMAN, Los Angeles, California GEORGE S. IRVIN, Denver, Colorado RICHARD A. VAN WINKLE, Salt Lake City, Utah MARY W. WALKER, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Robert P. Henderson Frank E. Morris Thomas I. Atkins James A. Mcintosh NEW YORK* 10045 Robert H. Knight, Esq. Anthony M. Solomon Boris Yavitz Thomas M. Timlen Buffalo 14240 Frederick D. Berkeley, III John T. Keane PHILADELPHIA 19105 John W. Eckman Edward G. Boehne Jean A. Crockett Richard L. Smoot CLEVELAND* 44101 J. L. Jackson Willis J. Winn William H. Knoell Walter H. MacDonald Cincinnati 45201 Martin B. Friedman Robert E. Showalter Pittsburgh 15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* 23219 Maceo A. Sloan Robert P. Black Steven Muller Jimmie R. Monhollon Baltimore 21203 Edward H. Covell Robert D. McTeer, Jr. Charlotte 28230 Naomi G. Albanese Stuart P. Fishburne 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 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
A74 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- 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 TIONS. 1974. 125 pp. each. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp. ANNUAL REPORT. Each volume $1.00; 10 or more to one address, $.85 FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or each. $2.00 each in the United States, its possessions, Canada, OPEN MARKET POLICIES AND OPERATING PROCEDURES— and Mexico; 10 or more of same issue to one address, STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to $18.00 per year or $1.75 each. Elsewhere, $24.00 per one address, $1.75 each. year or $2.50 each. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. of Part I only) 1976. 682 pp. $5.00. 1972. 220 pp. Each volume $3.00; 10 or more to one BANKING AND MONETARY STATISTICS, 1941-1970. 1976. address, $2.50 each. 1,168 pp. $15.00. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 ANNUAL STATISTICAL DIGEST 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. FEDERAL RESERVE CHART BOOK. Issued four times a year in 1973. 271 pp. $3.50 each; 10 or more to one address, February, May, August, and November. Subscription $3.00 each. includes one issue of Historical Chart Book. $7.00 per IMPROVING THE MONETARY AGGREGATES: REPORT OF THE year or $2.00 each in the United States, its possessions, ADVISORY COMMITTEE ON MONETARY STATISTICS. Canada, and Mexico. Elsewhere, $10.00 per year or 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 $3.00 each. each. HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— tion to Federal Reserve Chart Book includes one issue. Regulation Z) Vol. I (Regular Transactions). 1969. 100 $1.25 each in the United States, its possessions, Canada, pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each and Mexico; 10 or more to one address, $1.00 each. volume $1.00; 10 or more of same volume to one Elsewhere, $1.50 each. address, $.85 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one the United States, its possessions, Canada, and Mexico; address, $1.50 each. 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 THE FEDERAL RESERVE ACT, as amended through December one address, $2.25 each. 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. 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 ERAL RESERVE SYSTEM each; 10 or more to one address, $1.50 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOVER- INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; NORS, as of June 30, 1980. $7.50. 10 or more to one address, $1.25 each. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. pp. $1.00 each; 10 or more to one address, $.85 each. $13.50 each. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. SERVE STAFF STUDY, 1981. 48 pp. $.25 each; 10 or more to one address, $.20 each. SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL ERNMENT SECURITIES MARKET; STAFF STUDIES—PART ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A75 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- of the full text or to be added to the mailing list for the series ed at least monthly. (Requests must be prepaid; outside may be sent to Publications Services. North America an additional $10.00 for each publication.) TIE-INS BETWEEN THE GRANTING OF CREDIT AND SALES OF Consumer and Community Affairs Handbook. $50.00 per INSURANCE BY BANK HOLDING COMPANIES AND OTHER year. LENDERS, by Robert A. Eisenbeis and Paul R. Schweit- Monetary Policy and Reserve Requirements Handbook. zer. Feb. 1979. 75 pp. $50.00 per year. THE GNMA-GUARANTEED PASSTHROUGH SECURITY: MAR- Securities Credit Transactions Handbook. $50.00 per year. KET DEVELOPMENT AND IMPLICATIONS FOR THE Federal Reserve Regulatory Service. 2 vols. (Contains all GROWTH AND STABILITY OF HOME MORTGAGE LENDthree Handbooks plus substantial additional material.) ING, by David F. Seiders. Dec. 1979. 65 pp. $150.00 per year. PERFORMANCE AND CHARACTERISTICS OF EDGE CORPORA- TIONS, by James V. Houpt. Feb. 1981. 56 pp. CONSUMER EDUCATION PAMPHLETS BANKING STRUCTURE AND PERFORMANCE AT THE STATE Short pamphlets suitable for classroom use. Multiple LEVEL DURING THE 1970S, by Stephen A. Rhoades. Mar. copies available without charge. 1981. 26 pp. FEDERAL RESERVE DECISIONS ON BANK MERGERS AND AC- Alice in Debitland QUISITIONS DURING THE 1970s, by Stephen A. Rhoades. Consumer Handbook To Credit Protection Laws Aug. 1981. 16 pp. The Equal Credit Opportunity Act and . . . Age The Equal Credit Opportunity Act and . . . Credit Rights in Housing The Equal Credit Opportunity Act and . . . Doctors, Law- REPRINTS yers, Small Retailers, and Others Who May Provide Most of the articles reprinted do not exceed 12 pages. Incidental Credit The Equal Credit Opportunity Act and . . . Women Measures of Security Credit. 12/70. Fair Credit Billing Revision of Bank Credit Series. 12/71. The Board of Governors of the Federal Reserve System Assets and Liabilities of Foreign Branches of U.S. Banks. The Federal Open Market Committee 2/72. Federal Reserve Bank Board of Directors Rates on Consumer Instalment Loans. 9/73. Federal Reserve Banks Industrial Electric Power Use. 1/76. Federal Reserve Glossary Revised Series for Member Bank Deposits and Aggregate Monetary Control Act of 1980 Reserves. 4/76. Guide to Federal Reserve Regulations Industrial Production—1976 Revision. 6/76. How to File A Consumer Credit Complaint Federal Reserve Operations in Payment Mechanisms: A If You Borrow To Buy Stock Summary. 6/76. If You Use A Credit Card The Federal Budget in the 1970's. 9/78. Truth in Leasing Perspectives on Personal Saving. 8/80. U.S. Currency The Impact of Rising Oil Prices on the Major Foreign What Truth in Lending Means to You Industrial Countries. 10/80. Federal Reserve and the Payments System: Upgrading Electronic Capabilities for the 1980s. 2/81. STAFF STUDIES.- Summaries Only Printed in the Dealing with Inflation: Obstacles and Opportunities. 4/81. Bulletin U.S. International Transactions in 1980. 4/81. Studies and papers on economic and financial subjects Survey of Finance Companies, 1980. 5/81. that are of general interest. Requests to obtain single copies Bank Lending in Developing Countries. 9/81. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A76 Index to Statistical Tables References are to pages A3 through A68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 10, 25, 27 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 26 Subject to reserve requirements, 14 Assets and liabilities (See also Foreigners) Turnover, 12 Banks, by classes, 17, 18-21 Depository institutions Domestic finance companies, 39 Reserve requirements, 8 Federal Reserve Banks, 11 Reserves, 3, 4, 5, 14 Foreign banks, U.S. branches and agencies, 22 Deposits (See also specific types) Nonfinancial corporations, 38 Banks, by classes, 3, 17, 18-21, 29 Savings institutions, 29 Federal Reserve Banks, 4, 11 Automobiles Subject to reserve requirements, 14 Consumer installment credit, 42, 43 Turnover, 12 Production, 48, 49 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) BANKERS balances, 17, 18-20 (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Banks for Cooperatives, 35 Dividends, corporate, 37 Bonds (See also U.S. government securities) New issues, 36 EMPLOYMENT, 46, 47 Yields, 3 Eurodollars, 27 Branch banks, 15, 21, 22, 56 Business activity, nonfinancial, 46 FARM mortgage loans, 41 Business expenditures on new plant and equipment, 38 Federal agency obligations, 4, 10, 11, 12, 34 Business loans (See Commercial and industrial loans) Federal and federally sponsored credit agencies, 35 Federal finance CAPACITY utilization, 46 Debt subject to statutory limitation and types and Capital accounts ownership of gross debt, 32 Banks, by classes, 17 Receipts and outlays, 31 Federal Reserve Banks, 11 Treasury operating balance, 30 Central banks, 68 Federal Financing Bank, 30, 35 Certificates of deposit, 21, 27 Federal funds, 3, 6, 18, 19, 20, 27, 30 Commercial and industrial loans Federal Home Loan Banks, 35 Commercial banks, 15, 17, 22, 26 Federal Home Loan Mortgage Corporation, 35, 40, 41 Weekly reporting banks, 18-22, 23 Federal Housing Administration, 35, 40, 41 Commercial banks Federal Intermediate Credit Banks, 35 Assets and liabilities, 3, 15, 17, 18-21 Federal Land Banks, 35, 41 Business loans, 26 Federal National Mortgage Association, 35, 40, 41 Commercial and industrial loans, 15, 17, 22, 23, 26 Federal Reserve Banks Consumer loans held, by type, 42, 43 Condition statement, 11 Loans sold outright, 21 Discount rates (See Interest rates) Nondeposit funds, 16 U.S. government securities held, 4, 11, 12, 32, 33 Number, 17 Federal Reserve credit, 4, 5, 11, 12 Real estate mortgages held, by holder and property, 41 Federal Reserve notes, 11 Commercial paper, 3, 25, 27, 39 Federally sponsored credit agencies, 35 Condition statements (See Assets and liabilities) Finance companies Construction, 46, 50 Assets and liabilities, 39 Consumer installment credit, 42, 43 Business credit, 39 Consumer prices, 46, 51 Loans, 18, 19, 20, 42, 43 Consumption expenditures, 52, 53 Paper, 25, 27 Corporations Financial institutions, loans to, 18, 19, 20 Profits and their distribution, 37 Float, 4 Security issues, 36, 65 Flow of funds, 44, 45 Cost of living (See Consumer prices) Foreign banks, assets and liabilities of U.S. branches and Credit unions, 29, 42, 43 agencies, 22 Currency and coin, 5, 17 Foreign currency operations, 11 Currency in circulation, 4, 13 Foreign deposits in U.S. banks, 4, 11, 18, 19, 20 Customer credit, stock market, 28 Foreign exchange rates, 68 Foreign trade, 55 DEBITS to deposit accounts, 12 Foreigners Debt (See specific types of debt or securities) Claims on, 56, 58, 61, 62, 63, 67 Demand deposits Liabilities to, 21, 56-60, 64-66 Adjusted, commercial banks, 12, 14 Banks, by classes, 17, 18-21 GOLD Ownership by individuals, partnerships, and Certificates, 11 corporations, 24 Stock, 4, 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
All Government National Mortgage Association, 35, 40, 41 REAL estate loans Gross national product, 52, 53 Banks, by classes, 18-20, 41 Rates, terms, yields, and activity, 3, 40 HOUSING, new and existing units, 50 Savings institutions, 27 Type of holder and property mortgaged, 41 Repurchase agreements and federal funds, 6, 18, 19, 20 INCOME, personal and national, 46, 52, 53 Reserve requirements, 8 Industrial production, 46, 48 Reserves Installment loans, 42, 43 Commercial banks, 17 Insurance companies, 29, 32, 33, 41 Depository institutions, 3, 4, 5, 14 Interbank loans and deposits, 17 Federal Reserve Banks, 11 Interest rates Member banks, 14 Bonds, 3 U.S. reserve assets, 55 Business loans of banks, 26 Residential mortgage loans, 40 Federal Reserve Banks, 3, 7 Retail credit and retail sales, 42, 43, 46 Foreign countries, 68 Money and capital markets, 3, 27 Mortgages, 3, 40 SAVING Prime rate, commercial banks, 26 Flow of funds, 44, 45 Time and savings deposits, 9 National income accounts, 53 International capital transactions of the Savings and loan assns., 3, 9, 29, 33, 41, 44 Savings deposits (See Time deposits) United States, 56-67 Savings institutions, selected assets and liabilities, 29 International organizations, 56-61, 64-67 Securities (See also U.S. government securities) Inventories, 52 Federal and federally sponsored credit agencies, 35 Investment companies, issues and assets, 37 Foreign transactions, 65 Investments (See also specific types) New issues, 36 Banks, by classes, 17, 29 Prices, 28 Commercial banks, 3, 15, 17, 18-20 Special drawing rights, 4, 11, 54, 55 Federal Reserve Banks, 11, 12 State and local governments Savings institutions, 29, 41 Deposits, 18, 19, 20 Holdings of U.S. government securities, 32, 33 LABOR force, 47 New security issues, 36 Life insurance companies (See Insurance companies) Ownership of securities issued by, 18, 19, 20, 29 Loans (See also specific types) Yields of securities, 3 Banks, by classes, 17, 18—21 Stock market, 28 Commercial banks, 3, 15, 17, 18-21, 22, 26 Stocks (See also Securities) Federal Reserve Banks, 3, 4, 5, 7, 11, 12 New issues, 36 Insured or guaranteed by United States, 40, 41 Prices, 28 Savings institutions, 29, 41 TAX receipts, federal, 31 MANUFACTURING Thrift institutions (See Savings institutions) Capacity utilization, 46 Time deposits, 3, 9, 12, 14, 17, 18-21 Production, 46, 49 Trade, foreign, 55 Margin requirements, 28 Treasury currency, Treasury cash, 4 Member banks Treasury deposits, 4, 11, 30 Borrowing at Federal Reserve Banks, 5, 11 Treasury operating balance, 30 Federal funds and repurchase agreements, 6 Reserve requirements, 8 UNEMPLOYMENT, 47 Reserves and related items, 14 U.S. balance of payments, 54 Mining production, 49 U.S. government balances Mobile home shipments, 50 Commercial bank holdings, 18, 19, 20 Monetary aggregates, 3, 14 Member bank holdings, 14 Money and capital market rates (See Interest Treasury deposits at Reserve Banks, 4, 11, 30 rates) U.S. government securities Money stock measures and components, 3, 13 Bank holdings, 17, 18-20, 32, 33 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 34 Mutual funds (See Investment companies) Federal Reserve Bank holdings, 4, 11, 12, 32, 33 Mutual savings banks, 3, 9, 18-20, 29, 32, 33, 41 Foreign and international holdings and transactions, 11, 32, 64 NATIONAL defense outlays, 31 Open market transactions, 10 National income, 52 Outstanding, by type and ownership, 32, 33 Rates, 3, 27 OPEN market transactions, 10 Savings institutions, 29 Utilities, production, 49 PERSONAL income, 53 Prices VETERANS Administration, 40, 41 Consumer and producer, 46, 51 Stock market, 28 WEEKLY reporting banks, 18-23 Prime rate, commercial banks, 26 Wholesale (producer) prices, 46, 51 Production, 46, 48 Profits, corporate, 37 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1981, October 31). Federal Reserve Bulletin, 1981-11. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_198111
@misc{wtfs_bulletin_198111,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1981-11},
year = {1981},
month = {Oct},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_198111},
note = {Retrieved via When the Fed Speaks corpus}
}