Federal Reserve Bulletin, 1982-12

VOLUME 68 • NUMBER 12 • DECEMBER 1982 FEDERAL RESERVE Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield John M. Denkler • Griffith L. Garwood • James L. Kichiine • 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. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 725 THRIFT INSTITUTIONS IN RECENT company, before the Senate Committee on YEARS Banking, Housing, and Urban Affairs, December 10, 1982. Savings and loan associations and mutual savings banks have experienced severe earnings problems over the past three 755 ANNOUNCEMENTS years, but the lower level of interest rates, Change in the discount rate. coupled with various regulatory and statu- Revision of fee schedule for automated tory changes, should improve the outlook clearinghouse services. for these institutions. New members of the Consumer Advisory Council. 739 TREASUR Y-FOREIGN EXCHANGE OPERATIONS: INTERIM REPORT Amendments to Regulation D to make cer- At the end of the period from August to tain time deposits subject to the reserve October 1982, the dollar had risen to record requirements that apply to transaction achighs, or to levels not seen in many years, counts and to coordinate the end of the against several major currencies. phase-in of reserve requirements for member banks with the start of contemporaneous reserve accounting. 745 INDUSTRIAL PRODUCTION Changes in rules to implement legislation Output declined about 0.4 percent in Noaffecting reserve requirements and availvember. ability of negotiable order of withdrawal accounts. 747 STATEMENTS TO CONGRESS Proposed application of some banking orga- Paul A. Volcker, Chairman, Board of Gov- nizations to establish an office in New York ernors, discusses the current stance of mon- City to provide certain services in connecetary policy and some problems for the tion with foreign exchange operations. future and says that the broad framework of Publication of pamphlet, "Processing Bank monetary targeting has been retained, but Holding Company and Merger Applicagreater emphasis is being placed for the tions." time being on the broader aggregates; also, a policy of trying to achieve a particular Amendment to Regulation T to specify the interest rate target would have several de- characteristics of private mortgage passfects and would be interpreted as inflation- through securities that may be used as ary, before the Joint Economic Committee collateral for margin credit. of the U.S. Congress, November 24, 1982. Admission of four state banks to membership in the Federal Reserve System. 753 J. Charles Partee, Member, Board of Governors, discusses the Federal Reserve's in- 761 RECORD OF POLICY ACTIONS OF THE volvement with the Penn Square Bank in FEDERAL OPEN MARKET COMMITTEE the context of the Federal Reserve's role as lender of last resort and regulator of the At its meeting on October 5, 1982, the Penn Square Bank's parent bank holding Committee agreed that, in all the circum- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

stances, it would seek to maintain expan- consultation of the Committee, was set at 7 sion in bank reserves needed for an orderly to 10V2 percent. and sustained flow of money and credit, consistent with growth of M2 (and M3) from 767 LEGAL DEVELOPMENTS September to December at an annual rate in Amendments to Regulations D, K, and O; a range of around 8V2 to 9Vz percent, and various rules and bank holding company taking account of the desirability of someand bank merger orders; and pending cases. what reduced pressures in private credit markets in the light of current economic A1 FINANCIAL AND BUSINESS STATISTICS conditions. Growth of M2 from the fourth quarter of 1981 to the fourth quarter of 1982 A3 Domestic Financial Statistics might be somewhat above the range for the A46 Domestic Nonfinancial Statistics year that the Committee had reaffirmed in A54 International Statistics July; the Committee had also agreed then that for a time it would tolerate growth A69 GUIDE TO TABULAR PRESENTATION, somewhat above the target range, in the STATISTICAL RELEASES, AND SPECIAL event of unusual precautionary demands for TABLES money and liquidity, and that such growth would be consistent with longer-term objec- A70 BOARD OF GOVERNORS AND STAFF tives. Recent and prospective market and economic conditions appeared consistent A72 FEDERAL OPEN MARKET COMMITTEE with that approach. Somewhat slower AND STAFF; ADVISORY COUNCILS growth over the period from September to December, bringing those aggregates A73 FEDERAL RESERVE BANKS, around the upper part of the ranges for the BRANCHES, AND OFFICES year ending in the fourth quarter of 1982, would be acceptable and desirable in a A74 FEDERAL RESERVE BOARD context of declining interest rates. Should PUBLICATIONS economic and financial uncertainties lead to still stronger liquidity demands, somewhat A79 INDEX TO STATISTICAL TABLES more rapid growth in the broader aggregates would be tolerated. The intermeeting A81 INDEX TO VOLUME 68 range for the federal funds rate, which provides a mechanism for initiating further A97 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions in Recent Years Michael J. Moran of the Board's Division of A number of measures have been implemented Research and Statistics prepared this article. in the last two years to address the difficult situation caused by the erosion of thrift earnings. The financial condition of savings and loan asso- Some of these measures simply involve adjustciations and mutual savings banks has always ments to accounting methods while others atbeen highly sensitive to fluctuations in market tempt to remedy the underlying causes of the interest rates. Changes through the years in asset earnings problem. Many of the policies and proand liability powers have altered the impact of cedures adopted by the thrift industry run interest rates on thrift institutions, but they have counter to traditional financial practices, and not eliminated the basic sensitivity to move- some involve a fundamental restructuring of the ments in market rates. Regulatory and statutory industry. Thus they have stirred considerable changes that will limit the exposure of savings controversy. The Congress also has taken steps and loans and mutual savings banks to interest to assist thrift institutions. The most recent acrate risk have been made over the past two tion, and perhaps the most significant, was the years. However, time to adjust is needed before passage of the Garn-St Germain Depository Inthe industry becomes reasonably well insulated stitutions Act of 1982. This act affords the regulafrom the vicissitudes of the interest rate cycle. tory agencies and insurance funds greater lati- At times during the 1960s and 1970s, market tude in dealing with financially weak institutions interest rates rose well above the level that thrift and gives the thrift industry new powers that will institutions were allowed to pay on their depos- foster their viability over the long run. its, resulting in weak deposit growth as savers The pressure on the earnings of thrift institushifted their funds to higher-yielding assets else- tions has begun to subside in recent months with where. These periods of disintermediation were the sharp fall in interest rates. In the absence of a associated primarily with reductions in the li- rebound in interest rates, the industry could quidity position of thrift institutions, although return to profitability in 1983. However, the their net income also declined somewhat. In outlook for savings and loan associations and 1978, commercial banks and thrift institutions mutual savings banks will be influenced by facwere authorized to issue deposit accounts whose tors other than interest rates. For example, all interest rate ceilings were tied to the prevailing depository institutions will have to absorb an return on Treasury securities. These accounts increase in interest expense next year as a large allowed thrift institutions to remain competitive volume of low-yielding passbook savings deposin the market for savings even when interest its is expected to shift to the new "money market rates rose. However, as market-rate deposits deposit account" authorized by the Garn-St grew in importance, earnings became much more Germain act and the "super NOW" account volatile because the cost of funds tended to authorized by the Depository Institutions Deregchange more rapidly than the return on the ulation Committee. longer-term assets held by thrift institutions. As This article first reviews the earnings experiinterest rates rose to record levels beginning in ence of thrift institutions over the past three 1980, the earnings of savings and loan associa- years and analyzes the factors that influence net tions and mutual savings banks deteriorated. In income. It then discusses the policies that have 1981 and 1982, large losses and a declining capi- been adopted to assist troubled thrift institutions tal base forced many of these institutions to be and the controversies that have surrounded merged out of existence. them. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 Federal Reserve Bulletin • December 1982 THE RECENT EARNINGS PERFORMANCE 2. Ratio of net worth to total assets at thrift OF THRIFT INSTITUTIONS institutions Percent The deterioration in the earnings of thrift institutions began in 1980, when savings and loan associations posted only a small profit and mutual savings banks recorded their first loss in the postwar period (table 1). Losses at thrift institutions increased throughout 1981 and totaled $6.0 billion for the year, or 0.75 percent of average assets. In the first half of 1982, losses of savings and loan associations increased slightly further 1. Data for 1982 are for the end of September. from the level in the latter part of 1981, while accounting for 16 percent of industry assets, had earnings of mutual savings banks showed a small ratios of net worth to assets below 2 percent— improvement. roughly the minimum amount required by the As the losses of thrift institutions have accu- Federal Home Loan Bank Board. The capital mulated, the net-worth positions reported on position of mutual savings banks is somewhat their balance sheets have been drawn down. This stronger: not only is the aggregate ratio of net erosion is especially marked at savings and worth to assets higher than at savings and loan loans, where the combination of declining net associations, but only eight institutions insured worth and continued expansion in assets has by the Federal Deposit Insurance Corporation, pushed the ratio of net worth to total assets to 3 Vi accounting for 1XA percent of total assets, had percent at the end of the third quarter (table 2). net-worth ratios below 2 percent. These aggregated data do not reveal the large number of institutions with critically low levels of net worth that probably will require either Factors Influencing Earnings capital assistance from one of the federal deposit insurance agencies or an arranged merger with a The underlying causes of the earnings squeeze in stronger institution. At midyear 1982, for exam- the thrift industry are the changing nature of the ple, about 500 savings and loan associations, liabilities held by thrift institutions and the unprecedented movements in interest rates. Specifically, over the last several years the liabilities 1. Net income at thrift institutions issued by thrift institutions have moved to cur- Amounts in billions of dollars; percentages at annual rates rent market rates more rapidly than have the assets held in their portfolios. This movement, combined with the sharp rise in interest rates, has pushed the average cost of funds above the average return on assets (chart 1). The divergence between the average cost of funds and the average return on assets was possible because the liabilities of thrift institutions had much shorter maturities than their assets, and thus could be converted to current market rates more quickly. The faster pace of deregulation on the liability side of the thrift industry's balance sheet, and the portfolio decisions of the institutions themselves, contributed to the mismatch between the maturities of assets and liabilities and the acceleration in the average cost of funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions in Recent Years 727 1. Interest income and expenses at shows, savers have reduced significantly their FSLIC-insured savings and loans holdings of fixed-ceiling accounts, replacing them with deposits paying market-related rates. The poor earnings performance of thrift institutions over the past three years, however, cannot be attributed solely to the authorization of these new deposit accounts. If savings and loan associations and mutual savings banks had not been allowed to issue these accounts, the movements in interest rates in recent years probably would have caused massive deposit outflows and generated serious liquidity and earnings problems as institutions sold liquid assets and turned to borrowing at market rates. A more fundamental source of the earnings squeeze was an uneven The reaction of thrift institution customers to transformation of the asset and liability sides of rising market interest rates also has played a role the balance sheet. The movement to liabilities in the recent earnings squeeze. with market rates was started while most thrift institutions were prohibited from issuing mort- The Liabilities of Thrift Institutions. Before gages with adjustable rates and were limited with 1978, thrift institutions relied primarily on sav- respect to the types of nonmortgage loans they ings and small-denomination time deposits, with could hold. If savings and loan associations and fixed interest rate ceilings, to finance their large mutual savings banks had been given several holdings of long-term, fixed-rate mortgages (ta- years to restructure their asset portfolios toward ble 3). When market rates rose above the ceilings shorter-term or variable-rate instruments before on deposit rates, savers frequently withdrew the deregulation of liabilities began, those institutheir funds from thrift institutions and invested tions that took advantage of such opportunities them in higher-yielding market instruments. Sav- would have been in a better position to absorb ings and loan associations and mutual savings the rapid increases in interest expenses that banks typically responded to this disintermedia- began in 1980. tion by drawing down liquid assets and increas- The strategies for asset and liability manageing their reliance on borrowed funds; both meth- ment used by many thrift institutions also were ods reduce an institution's liquidity position and not well suited to the financial situation that took depress earnings somewhat. shape in 1980. Conditioned by the relative stabil- In 1978 and 1979, the financial regulatory ity of interest rates in earlier periods, the wide agencies acted to limit the outflow of funds spread between short- and long-term interest during periods of rising market interest rates by rates that was evident before 1980, and certain authorizing the six-month money market certifi- tax incentives for investment in mortgages, thrift cate and the 2'/2-year small saver certificate. The institutions continued to invest in longer-term interest rate ceilings on these accounts change assets. Simultaneously, they deepened their relifrequently and are tied to the returns on Treasury ance on short-term funds through the issuance of securities of comparable maturity. Thus, as mar- large-denomination time deposits, advances ket rates increased in 1980 and 1981, the ceilings from the Federal Home Loan Banks, and other on these deposit accounts also rose. Although types of borrowing. If they had invested more in institutions can profitably reinvest new inflows shorter-term assets (such as Treasury or agency into these accounts, transfers from the existing securities or federal funds), or issued more longlower-rate accounts represent a pure cost in- er-term liabilities (such as mortgage-backed crease not matched by a corresponding adjust- bonds), earnings would have been stronger in ment to the return on existing assets. As table 3 1981 and 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 Federal Reserve Bulletin • December 1982 3. Balance sheets of thrift institutions Percent of total liabilities and assets 1980 1982" ; vi Savings and loan associations p 22.0 Fixed ceiling liabilities 15.6 Passbook and NOW accounts 33.9 6.4 Fixed ceiling time deposits 53.4 52.8 Market ceiling small time deposits .. 28.6 Money market certificate 19.3 Small saver certificate 4.9 Other small time deposits 23.2 Discretionary liabilities Large time deposits . .B.» .P.. B... I 8.1 10.5 FHLB advances 4.6 Other borrowings 2.0 T O o th ta e l r l l i i a a b b i i l l i i t t i i e e s s ...*..... 100.0 100.0 100.0 100.0 Mortgage assets 84.4 81.1 Fixed rate ... 80.3 74.9 Adjustable rate n.a. 6.2 Nonmortgage loans 2.6 Cash and nonmortgage investments 11.2 Other assets 2.5 5.1 Total assets 100.0 100.0 100.0 100.0 Mutual savings banks Fixed ceiling liabilities 52.2 40.8 36.1 Passbook and NOW accounts 40.2 33.7 29.8 29.0 Fixed ceiling time deposits 18.5 7.1 Market ceiling small time deposits 52.6 Money market certificate 31.9 Small saver certificate 15.9 Other small time deposits 4.8 Discretionary liabilities 8.3 Large time deposits .. 3.2 FHLB advances J 1.5 Other borrowings 3.6 Other liabilities 3.0 Total liabilities 100 100.0 100.0 100.0 Mortgage assets 66.3 64.8 63.1 Nonmortgage loans 6.8 8.4 9.4 Cash and nonmortgage investments .. 23.9 23.9 23.6 23.6 Other assets 3.0 3.2 3.9 Total assets ^^KiiiiHI 100.0 100.0 100.0 100.0 1. Data for 1982 are for the end of June. The Customers of Thrift Institutions. The reac- More recently, however, the repayment rate has tions of the industry's customers to high interest fallen to 6 to 8 percent, thereby retarding the rates have exacerbated the earnings problems. increase in asset returns (chart 2). For example, the slowdown in overall mortgage On the liability side of the balance sheet, the activity as interest rates rose and the increasing reactions of the industry's customers to rising use of so-called creative financing in real estate interest rates and an expansion of investment transactions have reduced the rate of mortgage alternatives also have caused earnings to deteriorepayments. In the late 1970s, when housing rate. One obvious impact, already noted, is the markets were more robust and mortgage rates shift from lower-yielding passbook and fixedwere lower, 14 to 16 percent of mortgages held by ceiling time deposits to the newer accounts tied savings and loan associations and 10 to 12 percent to market rates (see table 3). A more subtle of the mortgages held by mutual savings banks impact is the gradual erosion over the past two generally were repaid each year. In an environ- years in the core deposit base (that is, deposits ment of secularly rising rates, this turnover helped owned by households or smaller organizations). to raise interest income because low-rate mort- Throughout 1981 and 1982, savings and smallgages could be replaced with higher-rate assets. denomination time deposits at savings and loan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions in Recent Years 729 2. Mortgage repayment rate at 4. Growth of savings and small time deposits at FSLIC-insured savings and loans commercial banks and thrift institutions Percent change from December to December associations and mutual savings banks have ex- 1. Includes savings and loan associations and mutual savings panded at an exceptionally low rate and also banks. 2. Deposit growth, at an annual rate, from December 1981 to have weakened relative to the growth at com- September 1982. mercial banks (table 4). Slower growth in the retail deposit base at thrift institutions will fur- savings and loans and mutual savings banks ther depress earnings because these institutions weakened considerably relative to that at commust rely on more costly sources of funds, and mercial banks. Finally, a reluctance of savers to the acquisition of new assets—which could offset hold funds in institutions experiencing earnings some of the losses embedded in the existing difficulties may help explain the slow deposit balance sheet—will be smaller than it would have growth at savings and loans and mutual savings been otherwise. banks. One of the more important causes of the erosion of the thrift deposit base in 1981 and 1982 has been the competition from money market Differences in Thrift Earnings mutual funds. In previous periods of disintermediation, such as 1970-71 and 1973-75, thrift Although nearly all savings and loan associations institutions appeared to have been affected and mutual savings banks have experienced an somewhat more severely than commercial banks erosion in their net income, the performance has (see table 4). Thus, if money market mutual varied widely among individual institutions, as funds have grown at the expense of depository indicated by the data presented in table 5. institutions, some slowdown in thrift growth Among savings and loan associations, about 15 both absolutely and relative to commercial banks percent of all institutions (accounting for slightly may be expected. more than 10 percent of total assets) had positive Another factor that has contributed to the income in the first half of 1982. At the opposite slowdown in deposit growth at savings and loans end of the distribution, about one-fourth of all and mutual savings banks is the loss of a rate institutions (accounting for slightly more than 20 advantage on six-month money market certifi- percent of total assets) had a ratio of net income cates vis-a-vis commercial banks. When this to average assets of -1.5 percent or less. A much account was introduced in June 1978, thrift insti- larger proportion of mutual savings banks reporttutions were allowed to offer an interest rate that ed positive earnings, and the proportion of such was VA percentage point higher than the commer- institutions with very low net income was smallcial bank rate. However, in March 1979, this er than it was for savings and loan associations. differential was made effective only at lower Several factors explain the better earnings levels of interest rates, and deposit growth at performance of some thrift institutions, including Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 Federal Reserve Bulletin • December 1982 5. Number, assets, and net-worth ratios of thrift short-term assets that are maturing and being institutions, by ratio of net income to average replaced with lower-yielding instruments. This assets, first half of 1982 reduction in asset returns could even be offset by the continued, albeit gradual, retirement of lowrate mortgages. Thus, if the lower level of shortterm interest rates is sustained, thrift institution earnings will show a marked improvement as the cost of funds declines in the face of a stable, or perhaps a slightly rising, average return on assets. For the second half of 1982, the decline in short-term interest rates should result in losses that are about 50 percent of those in the first six months. The performance of earnings may be even better in 1983, but whether the industry returns to profitability will depend upon other factors as well. Another important determinant of earnings at thrift institutions in 1983 will be the composition of deposits. If a large portion of lower-rate passbook savings deposits and negotiable order of withdrawal (NOW) accounts shifts to a mar- 1. FSLIC-insured savings and loan associations. ket-rate deposit, the interest expenses of thrift 2. FDIC-insured mutual savings banks. institutions will rise and earnings will be lower a wider diversification on the asset side of the than otherwise. Pursuant to the mandate of the balance sheet, a more rapid rate of deposit Congress, the Depository Institutions Deregulagrowth so that a greater proportion of assets tion Committee recently established a new dewere acquired at higher interest rates, and rela- posit instrument that is designed to compete with tively larger volumes of low-cost passbook sav- money market mutual funds, but also might ings deposits. In addition, newer thrift institu- induce large transfers of funds from passbook tions, because they are not burdened with large savings deposits. This new account has no interportfolios of low-yielding mortgages, generally est rate ceiling or fixed maturity, and provides have reported positive earnings. Finally, location for up to six third-party transfers per month. In has played a role: institutions in areas with a short, it has greater liquidity than savings deposmore rapid rate of economic growth and more its and allows institutions to pay a market interactive housing markets, or in states that did not est rate. The only real constraint on transfers have mortgage usury ceilings, have tended to from passbook savings deposits to this new acfare somewhat better than the industry average. count is a $2,500 minimum denomination, but this requirement probably will exercise a limited restraint: according to survey data gathered by various trade associations, the bulk of savings The Near-Term Outlook for the Industry deposits—80 percent at savings and loan associations and 85 percent at mutual savings banks— In the near term, the primary factor likely to are held in accounts with balances in excess of influence the earnings of thrift institutions is the this minimum. level of short-term interest rates, which have fallen substantially in recent months. Savings The Depository Institutions Deregulation and loan associations and mutual savings banks Committee also has authorized a "super NOW" hold a large volume of short-term, market-rate account that will be available in early January. liabilities that are maturing and being replaced This account provides unlimited transactions and with cheaper sources of funds. On the asset side, has no interest rate ceiling if balances remain thrift institutions hold a much smaller volume of above $2,500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions in Recent Years 731 6. Number and total assets of thrift institutions, by ratio of savings deposits to total deposits, June 1982 The precise impact of the new instruments on cally, when an institution fell below some critical the earnings of thrift institutions is difficult to value of net worth for a substantial period, gauge at this early date because it will depend supervisory action would be taken, including upon the rates paid on the new accounts, the liquidation or merger with a stronger institution. amount of funds transferred internally (especially If the Federal Savings and Loan Insurance Corfrom savings deposits), the volume of funds that poration had acted on the basis of traditional institutions can attract from market instruments, capital-adequacy guidelines, however, the insurand the profits that institutions earn on these new ance fund probably would have been insufficient funds. If interest rates stay at low levels and a to facilitate all of the mergers and liquidations large volume of funds is attracted from market that have been necessary over the past two instruments, the earnings impact will be damped; years. Therefore, the FSLIC has adopted several with higher levels of interest rates and smaller innovative approaches. One approach has simply inflows of new funds, the earnings impact will be allowed institutions falling below their required more severe. Whatever the overall outcome, level of net worth to continue operating for mutual savings banks likely will suffer a relative- longer periods of time. In addition, both the ly larger decline in earnings than savings and FHLBB and the FSLIC have adopted regulatory loan associations because savings deposits ac- changes that boost reported net worth, or the count for a larger proportion of their liabilities. ratio of net worth to total liabilities, above what At the end of September 1982, savings deposits it otherwise would have been. These policies and accounted for 31 percent of total deposits at regulatory changes largely involve adjustments mutual savings banks, compared with 17 percent to the balance sheet of a savings and loan associat savings and loan associations. In addition, ation and do little to reduce an institution's more than two-thirds of all savings banks insured losses or to allow it to absorb losses in any real by the FDIC (with 45 percent of total assets) had way. Thus these policies represent "solutions" more than 30 percent of their total deposits in in an accounting sense rather than in basic ecosavings accounts (table 6). A relatively small nomic terms. number of savings and loan associations have Although they provide little real benefit to an more than 30 percent of their deposits in pass- institution, accounting solutions at least give the book accounts. federal insurance agencies flexibility in dealing with the thrift industry's problems. The level of net worth reported on an institution's balance ACCOUNTING SOLUTIONS TO THE sheet, which insurers are forced to rely upon EARNINGS AND NET-WORTH PROBLEMS heavily in judging viability, may not indicate accurately the prospects for long-run profitabili- Under current statutory and regulatory provi- ty. For example, reported net worth does not sions, the primary determinant of an institution's reflect the possibility that the earnings position soundness is the book value of its net worth of many institutions will improve markedly if the current low level of interest rates is sustained. relative to total assets or total liabilities. Histori- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 Federal Reserve Bulletin • December 1982 Thus accounting solutions may be viewed as to facilitate mergers of savings and loan associadevices to extend the time before the FSLIC tions, but the use of this instrument—or one must act and thus to give lower short-term inter- similar to it—could increase sharply in the near est rates or restructuring efforts by an institu- future. One of the major provisions of the Garntion's management a chance to improve its real St Germain Depository Institutions Act was the earnings. To the extent that mergers and liquida- authorization for the FSLIC and FDIC to protions are avoided with this approach, the cost to vide capital assistance through the purchase of the FSLIC is reduced. "net worth certificates" from institutions with large mortgage portfolios, low net worth, and negative earnings. This provision of the Garn-St Germain act expires in three years. Income Capital Certificates One method to raise an institution's net worth, as well as the ratio of net worth to total assets or Regulatory Changes liabilities, is the issuance of income capital certificates, a new security developed by the FSLIC Over the past two years, the Federal Home Loan and the FHLBB. These securities are issued by a Bank Board has authorized several regulatory savings and loan association and are acquired by changes designed to encourage institutions to the FSLIC in exchange for cash or interest- restructure their asset portfolios and to relieve bearing notes. Income capital certificates resem- some of the pressure on deteriorating net worth. ble preferred stock in that they have no fixed In 1981, the Bank Board approved two reducmaturity and carry a specified interest or divi- tions in the net-worth requirement, almost to the dend payment that is made only if the institution lowest level allowed by statute. Accompanying has positive net income. With the increase in these reductions was a temporary exemption assets from the FSLIC's cash or notes offset by from the net-worth requirement if an institution the issuance of an equity-type security rather took steps to match more closely the maturities than debt, an institution's net worth increases. of assets and liabilities, such as selling older The earnings impact of income capital certifi- mortgages and replacing them with liquid assets cates will be negligible because the income from or issuing longer-term liabilities. the FSLIC's note will be offset by the actual or More recently, the FHLBB has approved anaccrued payment on the income capital certifi- other regulatory change that will serve to incates. (An article by Douglas P. Faucett and crease the ratio of net worth to total liabilities, Richard K. Kneipper in the Federal Home Loan which generally is the focus of the agency for Bank Board Journal for October 1981 discusses regulatory purposes. Beginning in June 1982, the these certificates in detail.) FHLBB reclassified certain liabilities, such as Income capital certificates allow an institution loans in process and unearned discounts on that has fallen below its net-worth requirement, purchased assets, as "contra-assets." As a rebut has a reasonable prospect of recovery in the sult, the level of liabilities is lower, and thus the long run, to remain in business rather than to ratio of net worth to liabilities is higher. For the become subject to supervisory action. The ad- industry as a whole, the increase in this ratio will vantages to the regulators include limited cash be negligible, but certain institutions may be able outlays—the only outlays are the semiannual to report significantly higher ratios. interest payments if the ICC is purchased with an Effective November 1982, the Federal Home FSLIC note-^-and the recovery of its investment Loan Bank Board allowed federally insured savif the institution survives. In the event of failure, ings and loan associations to include "appraised however, the ICC represents an increased com- equity capital" as part of the net-worth figure mitment by the insurance agency and may add to used for regulatory purposes. Appraised equity the costs of merger or liquidation. capital is the difference between the market Thus far the FSLIC has purchased only a value and the book value of office land, buildmoderate amount of income capital certificates ings, and similar assets. Because the value of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions in Recent Years 733 these assets has appreciated rapidly in recent ing" in mergers of thrift institutions, which reyears, their market values are well above the sults in higher reported earnings in the years values reported on the books of savings and immediately after a merger. loans, and could represent a substantial boost in regulatory net worth. Appraised equity capital will not appear on the balance sheet of an institution, and the net-worth figure reported in finan- Purchase Accounting cial statements will not be affected by this ruling. Rather, appraised equity capital is simply to be The purchase of assets is one of two generally used by a supervisory agent in reviewing the accepted methods of accounting for mergers financial condition of a savings and loan associa- between business enterprises; the other is the tion. Institutions can include appraised equity pooling of interests. Specific criteria have been capital in the regulatory net-worth calculation developed for determining which method should only once, and the ability to use this accounting be employed by management. The pooling-oftechnique expires on December 31, 1985. interests method should be used when the enter- One of the more widely publicized and contro- prises involved in a merger combine their reversial regulatory changes by the FHLBB was a sources and inherently share the risks and revision in the accounting treatment of capital rewards of the resulting firm. The purchase-ofgains and losses on the sale of assets. Generally assets method should be used when one of the accepted accounting principles, and previous enterprises clearly dominates and acquires the FHLBB regulations, require that the full amount risks and rewards of the other. of a capital gain or loss be realized in the When purchase accounting is employed, two accounting period in which it occurs. In Septem- important adjustments are made to the balance ber 1981, however, the FHLBB began to allow sheets of the merging institutions before they are savings and loan associations to amortize all combined. First, the assets and liabilities of the gains and losses from the sale of assets over a acquired firm are reappraised at their fair market period equal to the remaining term of that asset. value—that is, they are marked to market. Sec- The regulatory change sought to encourage insti- ond, goodwill is recorded as an asset. Goodwill is tutions to restructure their asset portfolios by defined as the purchase price of the acquired disposing of older, low-yielding mortgages and institution less net worth after assets and liabilreplacing them with instruments bearing current ities have been marked to market. market rates. Because this accounting treatment The adjustments made to the balance sheets does not meet generally accepted accounting will be reflected in the combined income stateprinciples, it cannot be used by institutions in ment of the surviving institution in subsequent their certified financial statements. years. Although the assets of the acquired insti- Another change approved by the FHLBB re- tution are now recorded at market values, they lates to the accounting treatment of mergers will be redeemed (or repaid) at the original book between savings and loan associations. Fre- value. This difference between the market value quently in merger cases, intangible assets, in- and the book value of acquired assets must be cluding "goodwill," are purchased by the acquir- accumulated over time and reported as income. ing institution, and, like other fixed assets, they It is generally believed that the goodwill purmust be depreciated over time. Previously, the chased by the acquiring firm will diminish over regulations stated that goodwill must be fully time. Accordingly, goodwill should be gradually depreciated in no more than ten years. However, depreciated. Thus a second adjustment to the in September 1981, the FHLBB changed its income statement will be the amortization of regulations to incorporate the forty-year maxi- goodwill, recorded as an expense. mum allowed by generally accepted accounting If the difference between the market value and principles. This esoteric change lies at the heart the book value of assets is accumulated over a of one of the more controversial aspects of the relatively short period (say, five to ten years) and recent situation: the use of "purchase account- the goodwill is amortized over a longer period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 Federal Reserve Bulletin • December 1982 (say, thirty to forty years), the reported earnings ing "solution" used in the thrift industry will be of the merged institution initially will be higher eliminated. than they would have been in the absence of a merger. This boost to reported earnings is temporary, of course, lasting only until the discount Phoenix Mergers on the assets is fully accreted. After this point, the only adjustment to the income statement is An accounting solution to the problems of the the amortization of goodwill, which will tend to thrift industry that combines purchase accountdepress reported earnings. The boost to earnings ing and income capital certificates is the "phoein the early years after a merger is strictly the nix" merger (named for the mythical bird that result of accounting adjustments that alter the rose from its own ashes). Under this plan, two or timing of income and expenses. The higher earn- more weak institutions are combined with the ings do not reflect a basic strengthening in the financial assistance of the FSLIC. The insurance institution. agency will purchase income capital certificates After the change by the FHLBB in the regula- from the new institution, thus raising the level of tions governing the amortization of goodwill and net worth, and the benefits to earnings associatthe widespread application of purchase account- ed with purchase accounting will prevent the ing by thrift institutions, developments unfolded erosion of net worth in the years immediately on two fronts. First, industry representatives after the merger. The hope of the FSLIC is that, attempted to obtain authorization from either the over the period that purchase accounting keeps Congress or the regulators to employ purchase- earnings positive, lower interest rates and a accounting techniques even when no merger was restructuring of the institution's operations will involved. These "fresh start" accounting pro- restore its profitability. The FSLIC has used the posals were presented as no-cost solutions to the phoenix plan only when other cost-effective industry's problem. Both the FHLBB and the mergers were not available; currently, there are FDIC have issued proposals concerning these five phoenix institutions. Once the ruling of the new accounting techniques for savings and loans Financial Accounting Standards Board elimiand mutual savings banks, but the only change nates the benefit to earnings associated with authorized thus far has been the use of appraised purchase accounting, the phoenix plan is unlikeequity capital by savings and loan associations. ly to remain a useful alternative. Certain states—New Jersey, Pennsylvania, and Michigan—were more sympathetic to this accounting approach and have allowed state-char- THE RESTRUCTURING tered institutions to use mark-to-market account- OF THE THRIFT INDUSTRY ing in their financial reports. In contrast, the Financial Accounting Stan- Accounting solutions, by themselves, are not the dards Board, which establishes generally accept- permanent answer to the earnings problems of ed accounting principles, has acted to limit the the thrift industry. Their function is to forestall gain in earnings associated with the application immediate supervisory action by the insurance of purchase accounting to mergers of thrift insti- agencies and to permit institutions to adjust tutions. Concerned that purchase accounting gradually to a more competitive and volatile does not reflect the true condition of the merged financial environment. Over the long run, many associations, the Financial Accounting Stan- institutions will be unable to survive and will dards Board is expected to rule soon that the have to be merged out of existence, while others period over which goodwill can be amortized will seek merger partners voluntarily to gain cannot exceed the period over which the dis- access to new markets or to broaden the services count on assets is accreted to income. With this they offer. Thus a rapid pace of consolidation can ruling in place, the application of purchase ac- be expected to continue for several years. In counting to most mergers of thrift institutions addition, various regulatory and statutory will not enhance earnings and the major account- changes in recent years have expanded the asset Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions in Recent Years 735 and liability powers in an effort to reduce the ance, will be arranged. Financial assistance from volatility of earnings and to allow thrift institu- the FSLIC has taken the form of an income tions to retain their customers and to win new capital certificate, which will minimize outlays in ones. Although the industry has already incorpo- the current period and will be repaid if the rated some of these new powers, change proba- institution becomes profitable once again. Anbly will be gradual. other method of financial assistance that minimizes current outlays is an income guarantee for some fixed number of years. Under this ap- Merger and Consolidation proach, the insurance agencies would make contributions to maintain income when an increase A general downward trend in the number of in interest rates reduced the earnings of the institutions in the thrift industry has been evident acquired thrift institution; similarly, the insurfor two decades: there were 6,850 savings and ance agencies would share in any improvement loan associations and mutual savings banks in in earnings brought about by a reduction in 1960 and 5,050 at the end of 1980. During the past interest rates. two years this trend has accelerated dramatically: In its effort to conserve the insurance fund, the more than 300 mergers were completed in 1981, FSLIC has turned to nontraditional mergers. and the total for 1982 could exceed 500 (chart 3). Interstate mergers have been allowed when there As might be expected, many of the recent has been no suitable merger partner within a mergers were supervisory in nature—that is, state or when a bid from an out-of-state institudirected or negotiated by the Federal Deposit tion has reduced significantly the amount of Insurance Corporation or the Federal Savings required financial assistance. In addition, to reand Loan Insurance Corporation—and several duce FSLIC outlays and to attract new capital, involved financial assistance. The fundamental investors from outside the thrift industry have objectives of the agencies are to preserve the been encouraged to purchase shares of ownerinsurance fund and to protect depositors at the ship in institutions being merged out of exisleast cost. The first step to these objectives is to tence. Investors other than thrift institutions that encourage institutions to solve their own prob- have injected capital into the industry have inlems through internal restructuring or voluntary cluded bank holding companies, a finance commerger. If these methods cannot work, a supervi- pany, a manufacturing firm, and a steel maker. sory merger, perhaps involving financial assist- Controversy has surrounded some of the recent mergers in the thrift industry because interstate expansion and interindustry mergers tradi- 3. Mergers of FSLIC- insured savings and loans tionally have been prohibited either by statute or Number by federal regulation. Recent action by the Congress, however, will resolve some of the issues. With the passage of the Garn-St Germain Depository Institutions Act, federal regulators were granted explicit authority to approve both interstate and interindustry mergers in emergency situations. Regulators are required to attempt to merge a weak institution with a similar type of institution within the same state, but if a suitable merger partner is not available, they may seek one among other types of financial institutions or outside the institution's home state. This emergency merger authority is in effect for only three years. Supervisory mergers are those arranged by the FSLIC without Although supervisory mergers have been ocfinancial assistance. 1982 data are as of September 30. curring at a record rate, most mergers have been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 Federal Reserve Bulletin • December 1982 voluntary. Many of these voluntary mergers are, interest rate risk. In July 1979, all federal savings in fact, undertaken to avoid the involvement of and loan associations received regulatory apthe insurance agencies, which might insist on proval from the Federal Home Loan Bank Board replacing the management of the acquired insti- to write variable-rate mortgages. In April 1980, tution. Another important motivation for the the authority of federal savings and loan associawave of voluntary mergers is to prepare for the tions was expanded further to permit them to transition from the traditional methods of doing issue renegotiable-rate mortgages. These new business. To reduce the volatility of earnings, instruments were welcomed by the industry, but and to adapt to technological advances and new they did not have the potential to solve its competitors, thrift institutions must diversify problems because of the rigid constraints on their activities and develop expertise in new changes to the contract mortgage rate and beareas. Few institutions have sufficient financial cause they did not affect outstanding mortgage or managerial resources to adapt individually, loans. and thus many are seeking merger partners to Not until April 1981, when the industry aladapt more quickly and to compete more effec- ready had entered the early stages of its earnings tively. The Federal Home Loan Bank Board has squeeze, was an unconstrained mortgage instruattempted to facilitate this merger process by ment authorized. These so-called adjustable easing its regulations concerning mergers and mortgage loans allow thrift institutions, when conversions to the stock form of ownership. writing loan contracts, to select any index for adjusting the mortgage rate and to alter that rate as frequently as they wish and by as much as the Expanded Asset and Liability Powers index allows. These mortgages can reduce significantly the amount of interest rate risk assumed Continued progress toward restoration of a more by a depository institution, but their use is likely stable, noninflationary economy will improve the to spread only gradually: both consumers and the environment in which thrift institutions, and oth- secondary mortgage market also must adapt to er financial intermediaries, operate. But there them. Currently, about 40 to 45 percent of all will always be unexpected shocks of one sort or new conventional first mortgages closed by savanother to the economy, and the key to insulat- ings and loan associations have adjustable-rate ing the thrift industry from such stresses lies in features. Mortgage loans outstanding with adbroadened asset and liability powers. Diversifi- justable rates account for only about 6 percent of cation of assets will permit a closer match with total mortgages held by savings and loans (see the term of liabilities and allow the average table 3). return on assets to keep pace with the average Another group of regulatory changes by the cost of funds. On the liability side, the authority FHLBB that are designed to reduce interest rate to issue attractive deposit instruments will assist risk at savings and loans associations involves thrift institutions in retaining their customer base financial futures and options. Even though adand will promote the growth of core deposits. justable mortgage loans (and other asset powers Through both regulatory changes and congres- discussed below) can lower the average maturity sional action, thrift institutions now have consid- of thrift institution assets, the duration of assets erable latitude to restructure their balance sheets and liabilities still may not match. Thus the and to stabilize their earnings. Because these institutions could remain vulnerable to fluctuanew powers will foster major changes in the tions in interest rates. In addition, savings and traditional operation of a thrift institution, they loan associations are subject to interest rate risk probably will be implemented gradually. between the time they commit to issue a mort- Thrift institutions historically have been spe- gage and the time that commitment is taken cialized mortgage lenders, and regulations now down. Properly used, the authority to trade in are in place that will allow them to continue financial futures and options will allow instituconcentrating on mortgages while reducing their tions to fix borrowing or lending rates in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions in Recent Years 737 future, and thereby reduce any remaining inter- and authorizes a deposit account competitive est rate risk. with money market mutual fund shares. It also Over the past two years, the Congress has allows thrift institutions to hold up to 10 percent expanded significantly the array of assets and of their assets in commercial loans (and to issue liabilities that thrift institutions may have in their demand deposits in connection with those loans), portfolios. Under the Depository Institutions increases the limits on the amount of consumer Deregulation and Monetary Control Act of 1980, loans that a thrift institution may hold, removes for example, thrift institutions nationwide re- constraints on investing in state and local govceived the authority to issue NOW accounts. ernment securities, and authorizes other catego- This act also expanded the investment authority ries of loans. of federal savings and loan associations by allow- Moreover, the Garn-St Germain act preempts ing them to hold commercial paper and corporate state laws that prohibit the enforcement of duedebt securities, by easing the constraints on on-sale clauses in mortgage contracts. These consumer lending, and by permitting them to laws, which are in effect in 12 states, prohibit a offer credit card services and to exercise trust lender from requiring that a mortgage loan be and fiduciary powers. Federal savings and loan repaid when the property is sold. The net effect is associations also received expanded authority to to prolong the life of a mortgage on the balance invest in service corporations, and mutual sav- sheet of a thrift institution and to depress earnings banks with a federal charter were authorized ings if the loans in question are low yielding. This to issue commercial loans and to hold corporate preemption is effective immediately on new condemand deposits. Finally, this act preempted ventional loans issued by depository institutions, state laws that limit allowable interest rates on but state laws may continue to protect existing certain contracts for first mortgages. loans for three years. The Economic Recovery and Tax Act of 1981 authorized all depository institutions to issue from October 1981 through December 1982 a S UMMAR Y AND CONCL US IONS savings certificate on which the first $1,000 of interest income ($2,000 for a joint return) was tax As recently as six months ago, the situation exempt. These "all savers certificates" were confronting savings and loan associations and designed to limit the interest expenses of thrift mutual savings banks was bleak. The high level institutions because their interest rate was set of short-term interest rates was generating large below other market rates. As it turned out, the all losses at these institutions, and their net-worth savers certificate program was not of great im- positions were deteriorating rapidly. Mergers in portance to thrift institutions: the combined in- the first half of this year had accelerated from the flow to savings and loan associations and mutual already rapid pace in 1981. Since midyear, howsavings banks was only about $30 billion, or ever, the prospects for thrift institutions have about 4 percent of total deposits. brightened. The lower level of short-term inter- The Garn-St Germain Depository Institutions est rates improved earnings rather quickly, and Act of 1982 is the most comprehensive piece of the passage of the Garn-St Germain Depository legislation addressing the thrift industry's prob- Institutions Act will help ensure the survival of lems. It provides expanded authority for federal many institutions over the long run. regulators to deal with financially weak institu- Although the outlook is now more favorable, tions, as well as new asset and liability powers many uncertainties and problems still beset this that are designed to remedy the underlying industry. For example, a large transfer of lowcauses of the earnings squeeze. As already men- cost passbook savings deposits to the new hightioned, this act authorizes the federal insurance er-yielding accounts might result in negative inagencies to provide capital assistance to finan- come for 1983. In addition, the events of the past cially weak institutions, permits interindustry three years have left many institutions with very and interstate mergers in emergency situations, low levels of net worth and earnings problems Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 Federal Reserve Bulletin • December 1982 that will not necessarily disappear with the lower eerrss,, bbuutt aa llaarrggeerr ppeerrcceennttaaggee ooff tthhee llooaannss hheelldd iinn level of interest rates. Thus the federal insurance tthheeiirr ppoorrttffoolliiooss aarree lliikkeellyy ttoo hhaavvee vvaarriiaabbllee--rraattee agencies still have many problem cases to re- ffeeaattuurreess tthhaatt eeffffeeccttiivveellyy mmaattcchh tthhee dduurraattiioonn ooff solve. Finally, thrift institutions face a period of lliiaabbiilliittiieess.. TThhee eexxppaannddeedd aasssseett ppoowweerrss ooff ssaavviinnggss adaptation to the new asset and liability powers aanndd llooaann aassssoocciiaattiioonnss aanndd mmuuttuuaall ssaavviinnggss bbaannkkss that will help foster growth and profitability. wwiillll bbrrooaaddeenn tthheeiirr ddiivveerrssiiffiiccaattiioonn aanndd pprroovviiddee Voluntary mergers probably will be an important nneeww ssoouurrcceess ooff iinnccoommee.. TThhiiss ggrreeaatteerr ddiivveerrssiittyy,, part of this process as institutions combine to ccoommbbiinneedd wwiitthh aaddjjuussttaabbllee--rraattee mmoorrttggaaggee llooaannss,, enter new markets and expand the range of sshhoouulldd mmaakkee tthhee rreevveennuuee ooff tthhrriifftt iinnssttiittuuttiioonnss services they offer. mmoorree rreessppoonnssiivvee ttoo tthhee sswwiinnggss iinn sshhoorrtt--tteerrmm Even after this transition period, thrift institu- iinntteerreesstt rraatteess aanndd rreedduuccee tthhee vvoollaattiilliittyy ooff tthheeiirr nneett tions may well remain primarily mortgage lend- iinnccoommee.. •• Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

739 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period August At the same time, the list of countries experithrough October 1982, is the twentieth of a series encing payments arrears expanded, and there providing information on Treasury and System were well-publicized problems of various comforeign exchange operations to supplement the mercial banks here and abroad. In this environregular series of semiannual reports that are ment, traders did worry about the relatively large usually issued each March and September. It exposures of U.S. banks to Mexico and other was prepared by Sam Y. Cross, Manager of Latin American countries, and developing pres- Foreign Operations of the System Open Market sures on the U.S. banking system were reflected, Account and Executive Vice President in charge to an extent, in a widening of yield spreads of the Foreign Group of the Federal Reserve between U.S. government obligations and pri- Bank of New York. vate credit instruments. But, with so much of the total international credit exposures made up of By the end of the August-October period under dollar-denominated claims, dollar-based institureview the dollar had risen to record highs, or to tions were thought to be in a better position than levels not seen in many years, against several others to deal with emerging liquidity strains. major currencies, strengthening even as U.S. Moreover, individual institutions sought to auginterest rates dropped sharply and as interest ment their liquidity positions, especially in doldifferentials favoring dollar-denominated assets lars, against potential funding and cash-flow narrowed appreciably. Favorable prospects for problems and in advance of important statement the U.S. economy relative to other industrial dates. countries, apprehension about the international Meanwhile, prospects for economic recovery banking system, and concern about economic remained gloomy, and concerns intensified that and political conditions abroad resulted in an many of the industrialized countries would tend increased global preference for dollar-denomi- to rely more on protectionist measures to deal nated assets, which pushed dollar exchange rates with high and rising levels of unemployment and sharply higher. slack business investment at home and would Concern over international credit exposures welcome improvements in international competiand developing financial strains in various mar- tiveness in increasingly restricted export markets around the world were sustaining factors kets. These concerns tended to coalesce in Eubehind the dollar's rise throughout the period. rope when several Scandinavian countries During August, market attention focused on Ger- devalued their currencies, at times by more than many where a large multinational company was private and official observers thought necessary being forced into receivership and on Mexico to regain competitive equilibrium. Market specuwhere a foreign exchange crisis was unfolding. lation developed that several European govern- During September, concern over the internation- ments would seek to adjust their currencies al financial situation mounted as developments in downward, involving a realignment of the joint Mexico, particularly in light of the unexpected European Monetary System (EMS) float. Within move to nationalize domestic banks, raised that arrangement speculative selling pressures— doubts in the market about the ability and will- largely against the French and Belgian francs, ingness of the government and other public- the Italian lira, and the Danish krone—intensisector institutions in that country to meet their fied around mid-October. But these pressures external obligations. tended to moderate late in the period after official Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 Federal Reserve Bulletin • December 1982 actions were taken by several countries to raise perceiving structural weaknesses in the German domestic interest rates, to adopt domestic aus- economy, predicted only limited further imterity measures, or to increase international bor- provement in Germany's balance of payments in rowings. The monetary authorities of the EMS the absence of a recovery in world demand and member states intervened heavily as sellers of output. At the same time, earlier optimistic foredollars and, to a lesser extent, of currencies casts of Japan's current account surplus were trading at the top of the joint float arrangement. scaled back further. Nonetheless, the EMS currencies as a group For these various reasons, the United States declined substantially against the dollar. was viewed relatively favorably on economic Other international developments also rein- and political grounds, and market participants forced the demands for dollars. These included bid up the value of the dojlar. On occasion, uncertainties over the future political sovereign- however, the impact of these concerns on the ty of Hong Kong, which reportedly generated dollar was offset, as market participants focused flows of capital to North America, and aggravat- on actual and expected declines in U.S. interest ed hostilities in the Middle East, which kept alive rates. In late August, for example, a shift in the fears of disruption of the flow of internationally outlook for U.S. interest rates occurred. At traded oil. Certain currencies that had previously midyear Federal Reserve authorities had indicatoffered clear alternatives to investment in dollar- ed that, in view of exceptional economic uncerdenominated assets also came under sometimes tainty and strong liquidity demands, they would unfavorable exchange market scrutiny, as partic- tolerate monetary expansion at annual rates that ipants focused on unresolved political divisions were somewhat higher than those that had been over economic, social, and foreign policies in a targeted. Market participants, however, were number of countries. In Germany, Chancellor skeptical that declines in interest rates would be Schmidt's coalition government collapsed over sustainable so long as they expected an early disputes about economic policy. At first, the recovery in economic activity. prospect of a new government generated expec- By late summer, however, evidence suggested tations that the policy stalemate would be bro- a deepening of the U.S. recession, a weakening ken. But soon the market concluded that the new in short-term business credit demands, and a coalition government might face serious difficul- slowing in money supply growth that brought the ties in winning a majority at upcoming federal narrow monetary aggregate—Ml—within the anelections next spring and that, in the interim, it nual growth range of 2Vi to 51/2 percent. By the had less room to reorient policies than had first end of August, therefore, short-term U.S. marbeen hoped. Also, in Japan, Prime Minister ket rates had dropped about 5 percentage points Suzuki unexpectedly announced that he would from the peak levels at the end of June, the not seek reelection, and uncertainty over his Federal Reserve had reduced its discount rate in successor clouded the outlook for the course of four steps from 12 to 10 percent, and market Japanese economic policy. participants had gained confidence that these To some extent, developments in the U.S. declines would stick. Also, with inflation abating current account also continued to support the and with the Congress passing a tax increase, dollar, largely because economic activity that bond yields dropped as much as 2 percentage was weaker than expected tended to limit the points in the midst of an unusually strong debtdeterioration in U.S. trade performance associat- market rally, accompanied by record price ined with the eroding price competitiveness of creases in the stock market. Abroad, interest U.S. exports. Thus, although many forecasters rates did not recede nearly so much, although projected a modest current account deficit in the declines in production and output continued and third quarter of 1982, few participants anticipat- unemployment advanced further with a deepened a major shift from equilibrium in the U.S. ing of the recession in major foreign economies. current account until the domestic economy As a result, interest differentials favorable to the moved decidedly out of recession. At the same dollar narrowed dramatically—for instance, on time, Germany's current account had slipped three-month Eurodeposits from IVi to VA perfrom surplus to near balance, and some analysts, centage points vis-a-vis the German mark and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations: Interim Report 741 from 9Vz to 4 percentage points against the Japa- foreign monetary authorities were expected to nese yen—and the dollar moved lower in the take fuller advantage of what by this time apexchange markets. peared to be sustainable declines in U.S. interest Early in October the dollar's strengthening rates to ease credit conditions in their econotrend was again temporarily interrupted. After mies. These expectations were confirmed when the Federal Open Market Committee meeting official and market interest rates in major Euroearly that month, it was announced that less pean countries declined considerably in the last emphasis would be placed in the immediate weeks of October. future on Ml as an operating target of monetary Under these circumstances, financial markets policy and that somewhat more rapid growth of were impressed with anecdotal evidence suggestthe broader aggregates would also be tolerated in ing that foreign investors sought to benefit an environment of extreme economic and finan- from the continuing potential for price appreciacial uncertainty. As explained by Chairman tion in U.S. domestic capital markets by invest- Volcker, financial innovation and institutional ing in longer-term, dollar-denominated securichange—such as the large volume of all savers ties. While foreign purchases of these securities certificates about to mature and the new money were apparently financed largely out of existing market deposit accounts to be introduced late in dollar-denominated assets, talk of foreign invest- 1982—coupled with the still appreciable ment activity nonetheless had a positive psychostrengthening in the desire for liquidity served to logical effect on the dollar and may have been distort Ml as a reliable policy guide. Also, the associated with renewed bidding for dollars in rigid pursuit of targets in view of these develop- the exchange market. ments would have had the practical effect of a By the end of October the dollar reached more restrictive policy than intended when the record highs against several of the continental targets were initially set out. Shortly after these currencies, levels not seen in nearly 6 years statements deemphasizing the role of Ml, the against the pound sterling and the Japanese yen, Federal Reserve cut the discount rate another V2 and a 14'/2-month high against the German mark. percentage point to 9l/i percent. In the market, On balance, for the 3-month period under review these actions were widely interpreted as a shift the dollar rose 8^percent against the Japanese toward greater monetary accommodation by the yen, 6 percent against the Swiss franc, 5 percent U.S. authorities and generated expectations that against the German mark, and 4V2 percent declines in U.S. money market and official inter- against the pound sterling. With respect to the est rates, which had stalled during September, Canadian dollar, however, the dollar declined would again resume. Once again the dollar came about 2 percent. On a trade-weighted basis the on offer in the exchange market. dollar rose 43A percent. But, as in August, the dollar's decline proved The U.S. authorities intervened on four occatemporary and market psychology toward the sions during the period when the dollar was bid dollar remained positive. Few market partici- up sharply to higher levels in unsettled markets. pants regarded the shift in operating procedure The Federal Reserve and the U.S. Treasury as an abandonment of the fight against inflation. intervened early in August and again early in Moreover, substantial progress had already been October to purchase $45.0 million equivalent of achieved in moving toward greater price stability German marks and $57.0 million equivalent of in this country, with wage, salary, and price Japanese yen. The German mark purchases were increases slowing markedly and unit labor costs split evenly between the Federal Reserve and the even more dramatically. In response, interest Treasury. Of the total Japanese yen acquired, rates in longer-term markets dropped another 1 $38.5 million equivalent was for the Federal percentage point in October alone. Yet, com- Reserve and $18.5 million equivalent was for the pared with other countries, the decline in U.S. U.S. Treasury. nominal interest rates still lagged behind the In the August-October period, various shortreduction of inflationary pressures, so that real term financing arrangements were concluded in U.S. interest rates remained high, both absolute- support of Mexico's efforts to strengthen its ly and relative to other countries. Furthermore, economic and financial position. At the begin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 Federal Reserve Bulletin • December 1982 1. Drawings and repayments by foreign central 2. Drawings and repayments by the Bank of Mexico banks under reciprocal currency arrangements' under special reciprocal currency arrangements' Millions of dollars; drawings or repayments (-) Millions of dollars; drawings or repayments (-) Out- August 1 Out- Out- August 1 Out- Bank R d e r s a e w rv in e g S o y n s te F m ed eral s J t u a l n y d i 3 n 1 g , , Oc th to r b ou er g h 3 1, O s c t t a o n b d e i r n g 3 , 1 , DDrraawwiinnggss oonn s J t u a l n y d i 3 n 1 g , , Oc th to r b o e u r g h 3 1, O s c t t a o n b d e i r n g 3 , 1 , 1982 1982 1982 1982 1982 1982 11 770000..00 U.S. Treasury special Bank of Mexico 770000..00 770000..00 II --770000..00 temporary facility 825.0 1 0 for $1,000 million -825.0 } 1. Data are on value-date basis. Drawings on special combined credit facility Federal Reserve ning of the period, the Bank of Mexico had special facility for 236.3 192.5 $325 million -43.8 outstanding a one-day $700 million drawing on its U.S. Treasury special swap line under the Federal Reserve's reciprocal facility for $600 438.8 357.5 million -81.3 currency arrangements used to finance a shortrun liquidity need, which was repaid on August 1. Data are on value-date basis. 1. Then, with the Mexican authorities proceeding with the implementation of a previously an- Treasury, leaving $1 billion still available on the nounced stabilization program, the Bank of Mex- entire combined credit facility as of October 31. ico again drew $700 million under its reciprocal In other developments the U.S. Treasury proswap line with the Federal Reserve on August 4, vided $1.23 billion of short-term financing to this time for a period of three months. The Brazil by arrangements that had been under Mexican authorities also arranged a temporary discussion since October. This additional shortnew $1 billion swap facility with the U.S. Trea- term liquidity was made available in conjunction sury over the August 14-15 weekend, drew $825 with economic policies adopted by Brazil at the million, and then on August 24 repaid the entire October meeting of its National Monetary Coundrawing using an advance payment for oil from cil. The financing was provided under three swap the U.S. Department of Energy. facilities. One drawing on the first $500 million Meanwhile, negotiations among Mexico, the facility was made on October 28 for $350 million. U.S. Treasury, the Federal Reserve, and major Other facilities made available in November, foreign central banks resulted in a multilateral when combined with the above-mentioned $500 package to provide bridge financing to an Inter- million, totaled $1.23 billion and were announced national Monetary Fund (IMF) standby credit. by President Reagan during his visit to Brazil in The credit facility totaling $1.85 billion com- the first week of December. The swap arrangeprised $325 million with the Federal Reserve, ments represent bridging loans to Brazil's draw- $600 million with the U.S. Treasury, and $925 ings under the Compensatory Financing Facility million with the Bank for International Settle- of the IMF as well as on its reserve position with ments. During the period under review the Bank the IMF. of Mexico drew, for three months, $105 million and $195 million on the Federal Reserve and U.S. Treasury swaps respectively, as part of the 3. Drawings and repayments by the Bank of Brazil first $600 million it took down on the combined under special reciprocal currency arrangement facility. The Mexican authorities also made one with the U.S. Treasury1 overnight drawing of $250 million on the com- Millions of dollars; drawings or repayments (-) bined facility, which was repaid. The drawing Out- August 1 Outcomprised $43.8 million on the Federal Reserve, standing, through standing, Drawing on $81.2 million on the U.S. Treasury, and $125 July 31, October 31, October 31, 1982 1982 1982 million on the Bank for International Settlements. Subsequently, the Bank of Mexico also U.S. Treasury special facility for $500 drew for three months $87.5 million on the million 0 350.0 350.0 Federal Reserve and $162.5 million on the U.S. 1. Data are on value-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations: Interim Report 743 4. U.S. Treasury securities, foreign currency 5. Net profits or losses (-) on U.S. Treasury and denominated1 Federal Reserve current foreign exchange Millions of dollars equivalent; issues or redemptions (-) operations Millions of dollars Amount of Amount of August 1 commit- through commit- U.S. Treasury Issues ments ments Ju 1 ly 9 8 3 2 1 , Octo 1 b 98 er 2 31, Octo 1 b 9 e 8 r 2 31, PPeerriioodd RR FF ee ee ss dd ee ee rr rr vv aa ee ll Exchange General Stabilization account Fund Public series Germany 2,610.6 -671.2 1,939.4 Switzerland 458.5 0 458.5 August 1 through October 31, 1982 0 -.6 30.6 Total 3,069.1 -671.2 2,397.9 Valuation profits and losses on outstanding assets and liabilities as 1. Data are on a value-date basis. of October 31, 1982 .... -777.9 -1,472.9 619.3 1. Data are on a value-date basis. On September 1 the U.S. Treasury redeemed additional securities denominated in German marks equivalent to $671.2 million. After this tions. The Exchange Stabilization Fund (ESF) redemption, the Treasury had outstanding lost $0.6 million in connection with sales of $2,397.9 million equivalent of foreign currency foreign currency to the Treasury general acnotes, public series, which had been issued in the count, which the Treasury used to finance inter- German and Swiss markets with the cooperation est and principal payments on foreign currencyof the respective authorities in connection with denominated securities. The Treasury general the dollar-support program of November 1978. account gained $30.6 million on the redemption Of the notes outstanding as of October 31, 1982, of German mark-denominated securities. As of a total of $1,939.4 million equivalent was denom- October 31, 1982, valuation losses on outstandinated in German marks and $458.5 million ing balances were $777.9 million for the Federal equivalent was denominated in Swiss francs. Reserve and $1,472.9 million for the ESF. The In the three-month period from August Treasury general account had valuation gains of through October, the Federal Reserve had no $619.3 million related to outstanding issues of profits or losses on its foreign currency transac- securities denominated in foreign currencies. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

745 Industrial Production Released for publication December 15 In market groupings, output of consumer goods contracted 0.5 percent in November, re- Industrial production declined an estimated 0.4 flecting a reduction in auto and light truck assempercent in November. Cutbacks in output were blies as well as declines in nondurable consumer concentrated in motor vehicles, metals, and a goods, such as food and fuel. The reduced auto number of business equipment industries. At assembly rate of 4.5 million units per year helped 135.6 percent of the 1967 average, the total index contract automobile inventories. Production of for November was 11.9 percent below its recent business equipment declined 0.5 percent, as conpeak in July 1981. tinued sharp reductions in the output of manufac- 1976 1978 1980 1982 1976 1978 1980 1982 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 Federal Reserve Bulletin • December 1982 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1982 1982 NNNooovvv... 111999888111 tttooo NNNooovvv... Oct.p Nov.e July Aug. Sept. Oct. Nov. 111999888222 Major market groupings Total industrial production 136.2 135.6 .1 -.3 -.8 -.8 -.4 -7.3 Products, total 139.4 138.9 .4 -.4 -1.0 -.9 -.4 -5.8 Final products 138.6 138.1 .3 -.9 -1.0 -.9 -.4 -6.2 Consumer goods 142.3 141.6 .7 -1.2 -.6 -.7 -.5 -1.7 Durable 127.0 126.0 2.0 -3.2 -1.2 -3.3 -.8 -2.9 Nondurable 148.3 147.8 .2 -.3 -.3 .1 -.3 -1.3 Business equipment 146.9 146.1 -1.1 -.6 -2.4 -2.2 -.5 -18.4 Defense and space 111.2 112.1 1.8 .0 .0 1.6 .8 6.5 Intermediate products 142.1 141.8 .6 1.3 -.9 -.9 -.2 -4.6 Construction supplies 124.2 124.1 .8 2.4 -1.3 -1.0 -.1 -4.6 Materials 131.2 130.4 -.4 -.2 -.5 -.8 -.6 -9.8 Major industry groupings Manufacturing 135.6 134.9 .3 -.1 -.7 -1.1 -.5 -7.0 Durable 121.3 120.3 .3 -.8 -1.2 -1.7 -.8 -10.5 Nondurable 156.3 156.0 .3 .8 .0 -.4 -.2 -2.7 Mining 116.6 116.2 -2.8 -2.7 -1.6 1.4 -.3 -18.9 Utilities 168.2 167.2 -1.0 .5 -.5 .4 -.6 -1.0 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. turing, power, and transit equipment were offset steel, and in the output of parts for consumer in part by a rise in oil and gas well drilling durables and for equipment. Production of nonfollowing ten months of steep decline in this durable materials was unchanged, and output of activity. Production of construction supplies energy materials declined. edged downward in November, and business In industry groupings, output of manufacturing supplies declined further. declined 0.5 percent in November, reflecting a Production of materials was reduced 0.6 per- cutback of 0.8 percent in the production of cent—about the average rate of decline during durables and a decline of 0.2 percent in nondurathe three preceding months. Output of durable bles. Output of mining and production of utilimaterials decreased sharply, reflecting continued ties were reduced 0.3 and 0.6 percent respectivecutbacks in the production of metals, particularly ly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

747 Statements to Congress Statement by Paul A. Volcker, Chairman, Board in some of the monetary data, particularly Ml, of Governors of the Federal Reserve System, and (2) accommodated growth in the various before the Joint Economic Committee of the monetary aggregates at rates somewhat above U.S. Congress, November 24, 1982. the targeted ranges. The first of those decisions was essentially technical. The latter decision is entirely consistent with the view I expressed in I appreciate this opportunity to discuss with you testifying before the Banking Committees in July the current stance of monetary policy and some that the Federal Open Market Committee would problems for the future. Before responding to tolerate "growth somewhat above the targeted certain questions directed to me about monetary ranges ... for a time in circumstances in which policy in your letters of October 18 and Novem- it appeared that precautionary or liquidity motiber 17, Mr. Chairman, I should first emphasize vations, during a period of economic uncertainty that the basic thrust and goals of our policy are and turbulence, were leading to stronger than unchanged since I testified before the Congress anticipated demands for money." on July 20. The precise means by which we move Unfortunately, the difficulties and complextoward our goals must take account of all the ities of the economic world in which we live do stream of evidence we have on the behavior of not permit us the luxury of describing policy in (and distortions in) the various monetary aggre- terms of a simple, unchanging numerical rule. gates, the economy, prices, interest rates, and For instance, the economic significance of any the like. But we remain convinced that lasting particular statistic we label "money" can change recovery and growth must be sought in a frame- over time—partly because the statistical definiwork of continuing progress toward price stabil- tion of money is itself arbitrary and the compoity—and that the process of money and credit nents of the money supply have differing degrees creation must remain appropriately restrained if of use as a medium of exchange and liquidity. we are to deal effectively with inflationary dan- That fact doesn't make much difference in a gers. relatively stable economic, financial, and institu- For that reason, we must continue to set forth tional environment, but at times of rapid change targets for growth in money and credit and to like the present, it can matter a great deal. judge the provision of bank reserves—our most We also have to take account of varying lags— important operating instrument—in the light of never known with precision—between actions the trend in the growth of these aggregates. This today and their consequences later. We have to process necessarily involves continuing judg- try to disentangle the temporary and cyclical ments about just what growth in those magni- from more persistent trends in relationships tudes is appropriate in the short and longer run, among'different measures of money and inflation matters affected by institutional change as well and economic activity. And we have to evaluate as by more fundamental economic factors. the significance of developments abroad as well As you are aware, the current job of develop- as at home, as reflected in trade accounts and the ing and implementing monetary policy has been exchange rate, and of strains in the financial complicated by regulatory decisions as well as by structure itself. recent developments in the economy and in our As this suggests, the economic environment in financial markets. We have as a consequence (1) which we set policy—or policy itself—cannot be made some technical modification in our operat- condensed into a simple, one-dimensional stateing procedures to cope with obvious distortions ment. Perhaps the essence of the problem and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 Federal Reserve Bulletin • December 1982 our approach can be better captured by a few elaborate in a moment, for fiscal as well as "yes-but" phrases. monetary policy. Yes, we have broken the inflationary momen- Yes, exceptional demands for liquidity can reatum—but continuing vigilance and effort will be sonably be accommodated in a period of recesessential to continue progress toward price sta- sion, high unemployment, and excess capacity— bility. As you know, the broad price indexes this but guidelines for restrained money and credit year have been running at about half or less of growth remain relevant to insure against rethe peak levels reached two or three years ago. newed inflation. A variety of specific and general As part of this disinflationary process, growth in evidence strongly suggests that the desire to hold worker compensation in nominal terms has de- cash and other highly liquid assets, relative to clined to the area of 6 to 7 percent—but that income, has increased this year. Much of the slower growth in nominal income has been con- more rapid increase in Ml has been in interestsistent with higher real wages as inflation has bearing, negotiable order of withdrawal (NOW) moderated. accounts, which did not exist a few years ago, Price and cost trends in particular sectors of but which provide the basic elements of a savthe economy are mixed—reflecting in part lags in ings, as well as a transaction, account. With the process of disinflation, the effects of long market interest rates falling, those accounts have wage contracts, international and exchange rate been relatively more attractive on interest rate developments, and the immediate effects of re- grounds alone, and they are a convenient means cession on some prices—most particularly com- of storing liquidity at a time of economic and modities. But there seems to me strong reason to financial uncertainty. At the same time, the believe that the progress toward price stability broader aggregates appear to reflect some of the can be maintained—albeit at a slower rate—as same liquidity motivations, as well as the stronthe economy recovers. For a time, unemploy- ger savings growth in the wake of the tax cut. ment and excess capacity should restrain costs Most broadly, we can now observe, over a and prices and, of more lasting significance, period of more than a year, a distinct decline in productivity growth should improve from the "velocity," that is, the relationship between the poor performance of most recent years. Taken gross national product and the monetary aggretogether, restraint on nominal wage increases gates. The velocity decline for Ml, which is and productivity growth should moderate the likely to amount to about 3 percent from the increase in unit labor costs, which account for fourth quarter of 1981 to the fourth quarter of about two-thirds of all costs. Real incomes can 1982, stands in sharp contrast to the average rise as inflation slows, paving the way for further yearly rise in velocity of 3 to 4 percent over the progress toward stability. past decade; it will be the first significant decline To be sure, as the economy grows, some in velocity in about 30 years. The velocities of factors holding down prices over the past year or M2 and M3—which had been relatively trendless two will dissipate or be reversed. But large new earlier—have also declined significantly. While "price shocks" in the energy or food areas some tendency toward slower velocity is not appear unlikely in the foreseeable future, sug- unusual in the midst of recession, the magnitude gesting that a declining trend in the rise of unit and persistence of the movement in 1982 are labor costs should be the most fundamental indicative of a pronounced tendency to hold factor defining the price trend. more liquid assets relative to current income. That analysis would not hold, however, if Without some accommodation of that preferexcessive growth in money and credit over time ence, monetary policy at the present time would came again to feed first the expectation, and then be substantially more restraining in its effect on the reality, of renewed inflation. Too much has the economy than intended when the targets for been "invested" in turning the inflationary mo- the various aggregates were originally set out mentum to lose sight of the necessity of carrying earlier this year. through. There are clear implications, as I will At the same time, policy must take into ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 749 count the probability that the demands for liquid- complete and unemployment high. Sudden large ity will, in whole or in major part, prove tempo- fluctuations in interest rates contribute to other rary, and that an excessive rise in money or other economic and financial distortions as well. And liquid assets could feed inflationary forces later. no doubt the fact that many interest rates remain Elements of judgment are inevitably involved in historically high, relative to the current rate of sorting out these considerations—judgments inflation, reflects continuing skepticism over resting on analysis of the economy, interest prospects for carrying through the fight on inflarates, and other factors. But broad guidelines for tion. assessing the appropriate growth on the basis of In this situation, the Federal Reserve has historical experience will surely remain relevant welcomed the declines in interest rates both and appropriate. because of the support they offer economic activ- In that connection, I must note the implica- ity and because they seem to reflect a sense that tions of the future federal budgetary position. To the inflationary trend has changed. However, we put the point briefly, the prospect of huge, con- do not believe that progress toward lower intertinuing budgetary deficits, even as the economy est rates should—or for long in practice can—be recovers, carries with it the threat of either "forced" at the expense of excessive credit and excessive creation of liquidity and inflation in money creation. To attempt to do so would future years, or a "crowding out" of other simply risk the revival of inflationary forces; borrowers as monetary growth is restrained in renewed expectations of inflation would soon be the face of the Treasury financing needs, or a reflected in the longer-term credit markets, damcombination of both. The problems flowing from aging prospects for the long-lasting expansion we the future deficits are simply not amenable to all want. solution by monetary policy. Moreover, the concern engendered in the marketplace works in the Turning to your explicit questions, Mr. Chairdirection of higher interest rates today than man, against this general background, I believe would otherwise be the case, contrary to the most policymaking officials in the Federal Reneeds of recovery. I know something of how serve share the general view that economic redifficult it is to achieve further budgetary sav- covery will be evident throughout 1983, but at a ings, but I must emphasize again how important moderate rate of speed—probably slower than it is to see the deficit reduced as the economy during previous post-recession years. Unambigrecovers. Those looming deficits in fact are a uous evidence that the recovery is already under major hazard in sustaining recovery. way is still absent, although encouraging signs are evident in some rise in housing, in the Yes, lower interest rates are critically important improved liquidity and wealth and reduced debt in supporting the economy and encouraging re- positions of consumers, and in surveys reporting covery—but we also want to be able to maintain that attitudes and orders may be stabilizing or lower interest rates over time. Since early sum- improving. The federal deficit, while fraught with mer, short-term interest rates have generally danger for the future, is of course providing declined 5 to 6 percentage points, and mortgage massive support for incomes at present. and most other long-term rates have dropped 3 to What is crucially important—particularly in 4 percentage points. While consumer loan rates the light of the experience of recent years—is administered by banks and other financial insti- that we set the stage for an expansion that can be tutions have lagged, they are also now moving sustained over a long period, bringing with it lower. There are clear signs of a rise in home strong gains in productivity and investment and sales and building in response to these interest lasting improvement in employment. I have alrate declines, and other sectors of the economy ready emphasized the importance of progress are benefiting as well. toward price stability to that outlook, and the evidence that, with disciplined monetary and We have also had experience in recent years of fiscal policies, we can sustain that progress. sharp increases in interest rates curtailing economic activity at times when recovery was in- So far as the specific questions about mone- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 Federal Reserve Bulletin • December 1982 tary policy in your October 18 letter are con- scribed as "technical" rather than "policy" in cerned, we have not, as you know, set any new the sense that we will need to continue to be monetary targets for 1982. Current trends do concerned with the rate of growth over time of indicate that the various Ms will end the year the monetary aggregates, including transaction above the upper end of the target ranges, proba- balances. bly xh to 1 percent for M2 and M3 and more for The decisions taken in early October do point Ml given the current distortions. Bank credit will to greater emphasis on M2 (and M3) in planning be close to the midpoint of its range. As I the operational reserve path during this transiindicated at the start, the "overshoots," in the tional period. The link between reserves and M2 context of today's economic and financial condi- is looser and more uncertain than in the case of tions, are consistent with the approach stated in Ml, in large part because reserve requirements my July testimony. on accounts included in M2, apart from transac- No decision has been taken to change the tion balances, are very low or nonexistent. tentative targets for 1983. That matter will, of (Transaction balances are about 17 percent of course, be under intensive scrutiny over the next M2.) Therefore once a reserve path is set, devitwo months, and the targets will be announced in ations of M2 from a targeted growth range may February. not, more or less automatically, be reflected in For the time being we are placing much less substantial changes in pressures on bank reserve emphasis than usual on Ml. That decision was positions or in money markets as is the case with precipitated in early October entirely by the Ml. Consequently, "discretionary" judgments likelihood that the data would be grossly distort- may be necessary more frequently in altering a ed in that month by the maturity of a large reserve path than when the reserve path is fovolume of all-savers certificates, part of the cused more heavily on Ml. In that technical proceeds of which might be expected to, at least sense, the operational approach has necessarily temporarily, be placed in checking accounts in- been modified. cluded in Ml. In sum, the broad framework of monetary In about three weeks, the introduction of a targeting has been retained, but greater emphasis new ceiling-less account at financial institu- is for the time being placed on the broader tions—highly liquid and carrying significant aggregates. The specific operating technique that transaction capabilities—is likely to distort fur- had been closely related to Ml has, by force of ther the Ml data. Judging by comments at the circumstances, been conformed to that emphalast meeting of the Depository Institutions sis. Obviously, entirely apart from questions of Deregulation Committee, that account could rap- economic doctrine and contending approaches to idly be followed by a decision to approve a monetary control, so long as Ml is subjected to ceiling-less account with full transaction capabil- strong institutional distortions, our techniques ities. These new accounts could have a large, but must be adapted to take account of that fact. quite unpredictable, influence on Ml for a num- An alternative operating approach suggested ber of months ahead as funds are reallocated by some of supplying and withdrawing reserves among various accounts. Moreover, the intro- with the intent of achieving a particular interest duction of market-rate transaction accounts will rate target would suffer from several fundamenvery likely result in a different relationship and tal defects:1 trend of Ml relative to GNP over time. Increasing confidence in the stability of prices and a trend toward lower market interest rates might 1. That was not, as sometimes mistakenly thought, the also affect the desire to hold money over time. operating approach used before October 1979. Then, reserves were provided with the aim of achieving and maintaining a Obviously, some judgments on those matters particular federal funds rate thought to be consistent with will be necessary in setting a target for Ml in targets for the monetary aggregates. The federal funds rate 1983 and in deciding upon the degree of weight to was a means to achieving a monetary target and in principle was to be handled flexibly. In practice, among other difficulbe attached to changes in Ml in our operations. ties, there appeared to be a reluctance to permit rates to vary Those problems should appropriately be de- rapidly enough to maintain control of the aggregates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 751 1. The body of theory or practice does not changing the reserve paths are appropriate. I will provide a sufficiently clear basis for relating the be reporting our conclusions to the Congress in level of a particular interest rate to our ultimate February. objectives of growth and price stability. Mr. Chairman, you have suggested that our 2. The implication that the Federal Reserve monetary targets might reasonably be specified could in fact achieve and maintain a particular as a single number, with a range above and level of relevant interest rates in a changing below. At times we have debated within the economic and financial environment is not war- FOMC the wisdom of such an approach (or ranted. setting forth a single target number without a 3. The very concept and measurement of a range). My own feeling has been, and remains, "real" interest rate, as called for in some propos- that a single number, with or without a range, als, is a matter of substantial ambiguity. would convey a specious sense of precision, with 4. As a practical matter, attempts to target and the result of greater pressure to meet a more or fix interest rates would make more rigid and tend less arbitrary number to maintain "credibility," to politicize the entire process of monetary poli- even if developments during the year tend to cy. indicate some element of flexibility is appropriate 5. In current circumstances, with huge budget in pursuit of the targets. deficits looming, a requirement that the Federal To me, our present practice of setting forth a Reserve set explicit interest rate targets is bound range is preferable. When appropriate, we can to be interpreted as inflationary, and the rekin- and should suggest the probability of being in the dling of inflationary expectations will work upper or lower portion of the range, or suggest against our objective. what conditions could evolve in which something I realize the several legislative proposals ad- other than the midpoints (or even an over- or dressed to targeting interest rates would, on their undershoot) would be appropriate. That apface, seem to call for interest rates as only one of proach seems to me to provide more informaseveral targets. But interest rates would certainly tion—and more realism—than a single number be the most obvious and sensitive target, and and is broadly consistent with present practice. those targets would be difficult to change. Other For similar reasons, I believe we need to evidence for a need to "tighten" or "ease" measure and target a variety of aggregates bewould be subordinated, if not ignored. cause, in a swiftly changing economic environ- As we approach the target-setting process for ment, any single target can be misleading. In that 1983, our objectives will—indeed as required by connection, I believe an indication of total credit law—continue to be quantified in terms of flows broadly consistent with the monetary targrowth in relevant money and credit aggregates. gets could be helpful. As you know, we now We will have to decide how much weight to place provide such estimates for bank credit alone. on Ml and other aggregates during a transitional Given the limits of forecasting and analysis, period, assuming new accounts continue to dis- and the volatility of the data, I would question tort the data. In reaching and implementing those the usefulness of further sectoral estimates. Even decisions, the members of the FOMC necessarily with respect to total credit flows, there is considrely upon their own analysis of the current and erable looseness in relationships to economic prospective course of business activity; the inter- activity for periods as long as a year—and still relationships among the aggregates, economic more for shorter periods. The theoretical frameactivity, and interest rates; and the implications work relating credit flows to other variables such of monetary growth for inflation. In other words, as the GNP or inflation is less fully developed the process is not a simple mechanical one, and it than in the case of monetary aggregates, and seems to me capable of incorporating—within a credit flows are less directly amenable to control. general framework of monetary discipline—the The enormous flows across international borders elements of needed flexibility. We will also, as pose large conceptual and statistical problems. part of that process, review whether technical Our credit data are typically less complete and adjustments in procedures for establishing and up-to-date than monetary data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 Federal Reserve Bulletin • December 1982 However, so long as those difficulties and Finally, Mr. Chairman, you have requested a limitations are recognized—and some of them "single composite forecast" of the major ecoare relevant with respect to the monetary aggre- nomic variables by FOMC members. As you are gates as well—I share the view that analysis of well aware, our present practice is to set forth a credit flows can contribute to policy formulation. range of forecasts of individual FOMC members To assist in that process, I will propose to the of the nominal and real GNP, prices, and unem- Open Market Committee that estimates of the ployment. The fact is we have no single "Federal expected behavior of a broad credit aggregate be Reserve" forecast, and there is no mechanism, set forth alongside the monetary targets in our within a Committee or Board structure, to force next report. agreement on such a forecast by individual mem- I do strongly resist the idea of the Federal bers bringing different views, typically backed by Reserve as an institution forecasting interest separate staff analysis, to the table. A simple rates. No institution or individual is capable of average—possibly supported by no one—seems judging accurately the myriad of forces working to me artificial. The process of attempting to on market interest rates over time. Expectational force a censensus would certainly dilute the elements play a strong role—fundamentally ex- product. pectations about the course of economic activity I would put the point positively. A range of and inflation but also, in the short run, expecta- forecasts by individual FOMC members more tions of Federal Reserve action. We could not accurately conveys the range of uncertainty and escape the fact that a central bank forecast of contingencies that must surround any forecast. interest rates would be itself a market factor. To The seeming neatness and coherence of a single some degree, therefore, in looking to interest forecast too often obscures the reality that a rates and other market developments for infor- variety of outcomes is possible; the very essence mation bearing on our policy decisions, we of the policy problem is to assess risks and would be looking into a mirror. Moreover, the probabilities—what can go wrong as well as what temptation would always be present to breech can go right. A point forecast would likely be the thin line between a forecast and a desire or treated more reverently than it would deserve, policy intention, with the result that operational and could even distort policy judgments in mispolicy decisions could be distorted. guided efforts to "hit" a forecast. While it seems to me inappropriate for a cen- I can understand your concern that a range of tral bank to forecast interest rates regularly, forecasts may be misleading if strongly influanalysis of key factors influencing credit condi- enced by "outlying" opinions rather than reflecttions and prices can be helpful at times. On ing a more even dispersion of views. For that occasion, we have provided such analysis in the reason, I would be glad to explore with the Open past. My concern about the outlook for fiscal Market Committee a procedure by which we policy is rooted in major part in such analysis indicated the "central tendency" of members' because the direction of impact on interest rates views—assuming such a central tendency exseems to be unambiguous. I have also, on a ists—as well as indicating the range of opinions. number of occasions, indicated that the recent Conversely, if the forecasts were evenly distriband even current level of interest rates appears uted within the range, we could so indicate. I extraordinarily high, provided, as I believe, we believe that approach would meet the objectives continue to make progress on the inflation front. you seek in a realistic and helpful manner. Perhaps, in our semiannual reporting, we can In concluding this already long testimony, let more explicitly call attention to major factors me say that we share the common goals of likely to influence short- or long-term interest achieving, in the words of the Employment Act rates and the significance for various sectors of of 1946 and the Humphrey-Hawkins Act of 1978, the economy. But I do not believe interest rate "Maximum employment, production, and purforecasting would be desirable or long sustain- chasing power" and "full employment . . . (and) able, and would in fact be damaging to the policy reasonable price stability." Those objectives process. have eluded us for too many years. We meet Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 753 again today in particularly difficult circum- we have the patience and wisdom to refrain from stances, and there is a sense of frustration and actions that can only be destructive. uncertainty among many. You are leaving the Congress after 28 years, But I also happen to believe we have come a Mr. Chairman. Through that time, you have long way toward laying the base for economic consistently provided constructive leadership to growth and stability: economic recovery should the effort to raise the level of economic discuscharacterize 1983, and that recovery can mark sion in general—and of the dialogue between the the beginning of a long period of stable growth. Congress and the Federal Reserve in particular. I Obviously there are obstacles—interest rates happen to believe strongly in the independence are still too high; inflation is down but not out; that the Congress has provided the Federal Rethere are strains in our financial system; we face serve through the years—but also in the need for budget deficits that are far too high; we are close and continuing communication with the tempted to turn inward or backward for quick Congress and the administration. I presume that solutions that ultimately cannot work. But it is this is the last time I will appear before you also plainly within our capacity to deal with personally in this forum, but the dialogue will those threats—provided only that we have a continue to benefit from your efforts, your initiastrong base of understanding among us, that we tive, and your sense of commitment in more resolve to act when action is necessary, and that ways than you may realize. • Statement by J. Charles Partee, Member, Board On June 30, Penn Square Bank requested, and of Governors of the Federal Reserve System, was granted, a $20 million loan from the Federal before the Committee on Banking, Housing, and Reserve Bank of Kansas City. This loan was Urban Affairs, U.S. Senate, December 10, 1982. supported by a pledge of $26.3 million of Penn Square Bank's customer notes. The loan was I am happy to appear before this committee to repaid the next day. Friday, July 2, the bank discuss the Federal Reserve's involvement with again borrowed, this time in the amount of $5.7 the Penn Square Bank. Let me state at the outset million that was collateralized by $39.4 million of that the Federal Reserve's involvement was lim- Penn Square Bank's customer notes. ited to its role as a lender of last resort and Over the weekend of the Fourth of July, the regulator of Penn Square Bank's parent bank Federal Reserve Bank was notified by the Compholding company and to a general concern over troller of the Currency that the Penn Square the impact of bank failures on the orderly opera- Bank's current loan losses and potential loan tion of the nation's financial system. losses arising from irregularities in loan docu- As a lender of last resort, the Federal Reserve mentation and in other business practices would provides essential credit to depository institu- extinguish the bank's capital funds. The Comptions for the purpose of providing temporary troller also informed the Federal Reserve that the liquidity in times of need. The lending function of Penn Square Bank would be unable to meet the the Federal Reserve is conducted through the demands of its depositors and creditors from District Federal Reserve Banks, which operate private funding sources. In response to the under broad guidelines established by the Board Comptroller's evaluation of the bank's asset in Washington. In the case of Penn Square Bank, portfolio, its capital position, and the dissipation the Federal Reserve Bank of Kansas City was of its private funding sources, the Federal Rethe lending bank. The President of the Kansas serve Bank notified the Comptroller of the Cur- City Reserve Bank has appeared before a con- rency of its intention not to extend credit to the gressional committee to explain the Reserve bank under these circumstances. Subsequently, Bank's loans to Penn Square Bank in detail, and the Comptroller declared the bank insolvent, and his testimony is a matter of public record. Brief- it was closed on July 6. The Federal Deposit ly, the relevant facts are as follows. Insurance Corporation, as receiver, paid the $5.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 Federal Reserve Bulletin • December 1982 million loan owing to the Federal Reserve Bank insured depositors were to be given "receiver's of Kansas City, which released the collateral to certificates" in amounts equal to the uninsured the receiver. portion of their respective deposits. In response The Federal Reserve also functioned as the to the potential liquidity needs of these financial regulator of the bank's parent company, First institutions, the Federal Reserve announced that Penn Corporation. The condition of First Penn the receiver's certificates would be acceptable as Corporation was essentially reflective of the con- collateral for advances at the Federal Reserve dition of the bank because the parent company discount window. Since the failure of the Penn was a "shell" principally serving as a vehicle to Square Bank, the Federal Reserve has received hold the stock of the bank. As is the case when only a limited number of discount window borthe holding company owns a national bank, the rowing requests from these institutions. As of Reserve Bank relied on the findings of the Comp- today, there are no loans outstanding that are troller with respect to the bank's condition. The secured by receiver's certificates. Federal Reserve Bank of Kansas City inspected The Federal Reserve has also reviewed the the First Penn Corporation on two occasions Penn Square episode to determine the capacity between the beginning of 1981 and the time the of existing bank laws and regulations to handle a bank failed in July 1982. There was no evidence similar situation should it occur in the future. In that any of the activities of the holding company our judgment, current banking statutes and regucontributed to or were in any way responsible for lations and the supervisory tools available to the difficulties of the Penn Square Bank. Indeed, federal bank regulators are adequate at present virtually all of the parent company's assets were to oversee the safety and soundness of our represented by deposits with, investments in, or nation's banking system. We would point out, loans purchased from the Penn Square Bank. once again, that the failure of Penn Square In the context of the Board's concern over the resulted from an extreme emphasis on growth at effect of the failure of Penn Square Bank in the the expense of sound lending and funding pracmarkets generally, the Federal Reserve explored tices, and in the absence of proper management possible alternatives to liquidation of the bank. oversight and controls. The extremely unsound Given the circumstances and the short period of banking practices that caused the failure of the time available to arrange an alternative solution, Penn Square Bank represent an isolated instance however, it became clear on Monday, July 5, and are not characteristic or typical of most that the bank was destined for liquidation. commercial banks or depository institutions gen- Before the closing, the Federal Reserve was erally. Indeed, the evidence we have continues notified that the Penn Square Bank had a sub- strongly to indicate that the overwhelming mastantial amount of uninsured deposits from finan- jority of banks are being operated in a sound and cial institutions. Under the receivership, the un- prudent manner. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

755 Announcements CHANGE IN DISCOUNT RATE lished by the Board. The Board began charging for ACH services, based on pricing principles The Federal Reserve Board announced a reduc- published earlier, in August 1981. In adopting the tion in the discount rate from 9Vi to 9 percent, 1981 fee schedule for ACH services, the Board effective November 22, 1982. The discount rate recognized that ACH service was in the process is the interest rate that is charged for borrowings of development and had not yet reached a mature from the District Federal Reserve Banks. level. In recognition of this fact, the Board The further half-point reduction in the dis- established 1981 fees on the basis of what it count rate, which is broadly consistent with the regarded as a mature volume of ACH items, prevailing pattern of market rates, was taken expected to be achieved in about five years, with against the background of continued progress the objective of promoting the continuing develtoward greater price stability and indications of opment of the ACH service in the public interest. continued sluggishness in business activity and The Board said it would review its ACH pricing relatively strong demands for liquidity. policy annually. The Board acted on requests from the direc- In reviewing its ACH pricing policy in April tors of the Federal Reserve Banks of Boston, 1982, the Board decided it was appropriate to New York, Philadelphia, Richmond, Atlanta, continue providing a measure of such encourage- Chicago, St. Louis, Minneapolis, Kansas City, ment. However, to provide the private sector and San Francisco. Subsequently, the Board with information as to when full cost-recovery approved similar requests from the directors of pricing would begin, the Board decided on a the Federal Reserve Bank of Dallas, effective schedule that calls for increasing ACH fees by 20 November 23, and the Federal Reserve Bank of percent annually, permitting ACH fees to be set Cleveland, effective November 26, 1982. in 1985 to recover 100 percent of the costs incurred in providing commercial ACH services. The Board has therefore adopted the following schedule, which will be in effect in 1983, de- ACH SERVICE. REVISED FEE SCHEDULE signed to recover 40 percent of the current costs The Federal Reserve Board has announced a of providing ACH services. revised fee schedule for its automated clearinghouse service and also changes in the Federal Reserve's procedures for administering clearing Fee schedule cents balances.1 Day-cycle cost Intra-ACH Debits originated 2.0 Credits received 4.0 New York intra-ACH ACH Service Fee Schedule Debits originated 1.0 Credits received 2.0 Inter-ACH The Monetary Control Act of 1980 requires that Debits originated 3.5 the Federal Reserve establish fee schedules for Credits received 5.5 New York inter-ACH its ACH service and for other Federal Reserve Debits originated 2.5 services, according to pricing principles estab- Credits received 3.5 Night-cycle surcharge Intra- and inter-ACH Debits originated 5.0 1. An automated clearinghouse (ACH) is a computer facili- New York intra- and inter-ACH ty for sorting and settling electronically originated payments, Debits originated 5.0 instead of payments originated by checks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 Federal Reserve Bulletin • December 1982 The basic structure of the new ACH fee sched- limits. Institutions with only a reserve balance ule is the same as the current fee schedule. But would remain under current carryover rules. the new schedule also recognizes that benefits The Board's clearing balance policy that these accrue to receivers of credits arising from re- changes amend was published in the BULLETIN, duced costs and from improved availability of vol. 67 (March 1981), pp. 247-52. funds that are not realized by originators of daytime debits. Consequently, the fees for receivers of ACH credits will be higher, in general, CONSUMER ADVISORY COUNCIL: than for originators of ACH debits. NEW MEMBERS The Federal Reserve Board has named 13 new Clearing Balance Procedures members to its Consumer Advisory Council to replace members whose terms are expiring, and To improve the flexibility of Reserve Banks in has designated a new Council Chairman and Vice meeting the needs of institutions holding clearing Chairman. balances with the Federal Reserve, the Board Ms. Susan Pierson De Witt was named Chairapproved two changes in procedures governing man to succeed Mrs. Charlotte H. Scott. Ms. De the establishment and maintenance of clearing Witt is Assistant Attorney General and Chief of balances. Clearing balances are balances mainthe Consumer Protection Division for the State tained with the Federal Reserve by a depository of Illinois. institution for settling fund transfers cleared Mr. William J. O'Connor, Jr., a partner in a through the Federal Reserve. These balances law firm in Buffalo, New York, succeeds Dr. earn credits that institutions may use to pay for Margaret Reilly-Petrone as Vice Chairman. Federal Reserve services. The changes, to be The Council advises the Board in the field of effective January 27, 1983, or as soon thereafter consumer financial protection laws and other as possible, are as follows: consumer-related matters. Its members come 1. To permit any depository institution desirfrom all parts of the country and include a broad ing a clearing balance to have one. Current representation of consumer and financial indusprocedures vary widely among Reserve Banks, try interests. The Council meets several times a with some Banks allowing clearing balances only year in sessions open to the public. for institutions that have zero or small reserve The 13 new members named for 3-year terms balances and other Banks allowing clearing balare as follows: ances for some larger banks as well. 2. For pure clearing balance and mixed ac- James G. Boyle, Austin, Texas, is a consumer law counts, to revise the current carryover limit of 2 specialist and a director of the Texas Consumer Assopercent of the required clearing balance plus ciation. Mr. Boyle formerly served as director of required reserves by providing penalty-free governmental relations for the Consumer Federation bands on either side of the total required balance of America in Washington, D.C.; was on the board of directors of the National Consumer Law Center in equal to the greater of $25,000 or 2 percent of the Boston; founded the National Coalition for Consumer required clearing balance. Any institution hold- Education; and cofounded the Consumer Law Section ing a balance within these bands would receive of the State Bar of Texas. earnings credits on the actual clearing balance Thomas L. Clark, Jr., White Plains, New York, held and would not incur penalties for defi- Deputy Superintendent of Banks, New York State Banking Department since 1976, is in charge of the ciences. The lower bound of the penalty-free Consumer Affairs Division, which supervises stateband would be truncated at the point at which the chartered and licensed financial institutions. Mr. Clark total maintained balance equals the required reis a member of the Governor's Interagency Task Force serve balance. Thus, an institution could not use on Small Business and the Governor's Minority Busithe penalty-free band on its clearing balance to ness Executive Committee. lower its effective reserve requirement. Carry- Jean A. Crockett, Philadelphia, Pennsylvania, Professor of Finance at the Wharton School of Finance of over would be allowed for amounts outside the the University of Pennsylvania, has been at Wharton penalty-free bands but within current carryover since 1955. She is the author of numerous publications Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 757 on interest rates, consumption, savings, and invest- active member of the American Institute of Banking, ment. Dr. Crockett is chairman of the board of direc- the National Association of Bank Women, and the tors of the Federal Reserve Bank of Philadelphia, and National Bankers Association. In 1980, she served on previously served on the Federal Reserve Board's the task force of women in business at the White Truth in Lending Advisory Committee. She is also on House Conference on Small Business. the board of directors of the American Finance Asso- Janet M. Scacciotti, Providence, Rhode Island, ciation and the National Bureau of Economic Re- President and Chief Executive Officer of Guild Loan search. and Investment Company, a consumer financial serv- Richard F. Halliburton, Kansas City, Missouri, ices company and a subsidiary of Old Stone Corpora- Deputy Director of Legal Aid of Western Missouri, tion, has been primarily involved in developing and acts as a statewide consumer law resource to legal implementing new consumer savings products. Ms. services attorneys, and has litigated a variety of con- Scacciotti also serves as a director of the Rhode Island sumer issues in both state and federal courts. Mr. Share and Deposit Indemnity Corporation, which in- Halliburton has discussed consumer law issues on sures credit union, loan and investment company, and local radio and television shows, and has lectured bank deposits. before consumer and community groups and classes. Glenda G. Sloane, Washington, D.C., Director of He has also engaged in a number of consumer educa- Housing and Community Development, Center for tion activities. National Policy Review at Catholic University School Charles C. Holt, Austin, Texas, Professor at the of Law, monitors fair housing laws to ensure equal Management Department of the University of Texas, access to housing and housing finance for minorities has served from 1977 until recently as the director of and women through participation in the regulatory and the University's Bureau of Business Research. Dr. legislative processes and in litigation. Mrs. Sloane Holt was formerly principal research associate at the serves as chairwoman of the Housing Task Force of Urban Institute in Washington, D.C., and before that the Leadership Conference on Civil Rights and as a chaired the Social Systems Research Institute at the board member of the National Low-Income Housing University of Wisconsin. He was also professor of Coalition. She formerly served on the U.S. Departeconomics at the University of Texas, at the London ment of Housing and Urban Development's Task School of Economics, and at the Graduate School of Force on Housing Costs and on the board of directors Industrial Administration, Carnegie Institute of Tech- of the National Housing Council. nology. Henry J. Sommer, Philadelphia, Pennsylvania, Su- Kenneth V. Larkin, San Francisco, California, Ex- pervising Attorney with Community Legal Services, ecutive Vice President of the Bank of America, has Inc., has held legal services positions since 1974, and been with the bank for 37 years. From 1967 to the now serves as lead counsel on a variety of federal and present, Mr. Larkin served as director of marketing state consumer cases. Mr. Sommer is also involved in and has been in charge of installment credit and credit a wide range of teaching, consulting, and community card activities within the bank. He is currently senior activities, and he has recently authored a practice consultant to the bank on global retail banking and on manual for the handling of consumer bankruptcy the boards of directors of VISA U.S.A., VISA Inter- cases. Mr. Sommer is an associate member of the national, Finance America Corporation, the California National Bankruptcy Conference and belongs to the Bankers Association, and the Student Loan Marketing National Lawyers Guild and the National Organiza- Association. tion of Legal Services Workers. Timothy D. Marrinan, Minneapolis, Minnesota, As- Winnie F. Taylor, Gainesville, Florida, joined the sistant Vice President and Legal Counsel of First Bank faculty of the Holland Law Center at the University of System, is responsible for First Bank System's com- Florida in 1979. As an associate professor, she teaches pliance with the consumer financial protection regula- contracts, consumer law, and other subjects in the tions. He is faculty adviser for the American Bankers consumer-commercial law areas. Since 1978, she has Association Graduate Compliance School and former served as a consultant to credit unions in identifying dean of its National Compliance School. Mr. Marrinan and seeking resolution to consumer regulatory compliis also a frequent lecturer at the University of Colora- ance problems. Professor Taylor has lectured on the do's Graduate School of Banking and at the Herbert Equal Credit Opportunity Act nationally, and has Prochnow Graduate School of Banking at the Univer- appeared on radio and television regarding the resolusity of Wisconsin. He has authored several articles on tion of credit discrimination problems. Her previous issues facing the financial industry and is a member of experience includes two years as a law fellow at the the Consumer Bankers Association Lawyers Commit- University of Wisconsin School of Law and private tee and of the American Bar Association's Committee practice in Rochester, New York, where she handled on Consumer Financial Services. corporate and consumer-related matters. Elva Quijano, San Antonio, Texas, Vice President Michael M. Van Buskirk, Columbus, Ohio, Commuand Executive Professional Officer of the Republic nity Development Officer of Banc One Corporation Bank of San Antonio, had formerly served as Execu- since 1979, directs numerous community redeveloptive Vice President of Plaza Bank, N.A. With more ment initiatives for the holding company and affiliated than 25 years of banking experience, Ms. Quijano is an banks and coordinates compliance with consumer and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 Federal Reserve Bulletin • December 1982 community regulations. From 1974 to 1979, Mr. Van contemporaneous reserve accounting on Febru- Buskirk served as administrative assistant to Con- ary 2, 1984. Member banks, and certain other gressman Chalmers Wylie and was involved in the institutions that are required to maintain reserves development of many of the consumer banking laws in the same way as member banks, are phasing enacted during that period. He chairs the Financial Institutions Committee of the Governor's Task Force down to the generally lower reserve requireon Small Business Financial Incentives; the Ohio ments of the Monetary Control Act that were Advisory Committee on Community Education; the previously scheduled to end March 1, 1984. Columbus-Franklin County PIC (private sector representatives who administer federal manpower training programs); and the Federal Legislative Committee of the Ohio Bankers Association. REGULATIONS D AND Q. AMENDMENTS The Federal Reserve Board has amended its REGULATION D. AMENDMENTS Regulation D (Reserve Requirements of Depository Institutions) and Regulation Q (Interest on The Federal Reserve Board on November 17, Deposits) to implement recently enacted legisla- 1982, revised a temporary amendment to Regula- tion affecting reserve requirements and the availtion D (Reserve Requirements of Depository ability of negotiable order of withdrawal (NOW) Institutions) adopted October 5 that made certain accounts. time deposits subject to the reserve requirements The Garn-St Germain Depository Institutions that apply to transaction accounts. The amend- Act of 1982 provides that the first $2 million of ment affected time deposits linked to a line of reservable liabilities in depository institutions credit on which checks or similar third-party are to be subject to a zero percent reserve transfers may be drawn. requirement; that depository institutions are to The amendment exempted such time deposit be authorized to issue a new type of account, arrangements established before October 5, designated a money market depository account 1982, but provided that if such a grandfathered (MMDA), to be competitive with money market deposit is extended, or matures and is renewed, mutual funds; and that governmental units are the funds will become subject to the reserve eligible to maintain NOW accounts. requirements that apply to transaction accounts. To conform its regulations to the requirements The Board has determined to expand the of the Garn-St Germain Act affecting reserve grandfather provisions of the amendment by requirements, the Board revised Regulation D as exempting from the definition of transaction ac- follows: count such time deposits that mature and auto- 1. Effective with the reserve computation pematically renew on or before December 31, 1982. riod beginning December 9, 1982, and with the This action was taken to avoid adversely affect- reserve maintenance period beginning December ing, pending final Board action, some institutions 23, the first $2.1 million in deposits subject to that have been unable to exercise options to reserve requirements at depository institutions terminate such arrangements. are subject to a zero percent reserve require- The expansion will provide institutions time to ment. The exemption amount of $2.1 million decide whether to terminate these arrangements takes into account the growth in deposits for the and to notify depositors of any such decisions. It one-year period ending June 30, 1982, as rewill also allow institutions to offer, as an alterna- quired by the act. tive to these arrangements, the new money mar- This change will completely exempt some ket deposit approved, effective December 14, by 24,600 institutions, including about 18,400 instithe Depository Institutions Deregulation Com- tutions with total deposits of less than $2 million mittee (DIDC). that have previously been exempted from reserve requirements by Board order, or that have The Federal Reserve Board has also amended no reservable liabilities. Regulation D to coordinate the end of the phase- Institutions that are now reporting their rein of reserve requirements for member banks serve liabilities to the Federal Reserve should under the Monetary Control Act with the start of continue to report until further notice, even if Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 759 they are exempt from holding reserves under this government, state governments, county and muprovision of the act. nicipal governments and their political subdivi- 2. With respect to the new money market sions, the District of Columbia, the Commondeposit account authorized by the Garn-St Ger- wealth of Puerto Rico, American Samoa, Guam, main Act, the Depository Institutions Deregula- and any territory or possession of the United tion Committee (DIDC) has authorized deposi- States and their political subdivisions. tory institutions to issue an MMDA with the Finally, under the terms of the Monetary Confollowing principal features: an account available trol Act of 1980, the Board increased from $26 to all depositors, including businesses; no regula- million to $26.3 million the amount of transaction tory interest rate ceiling so long as a balance of account deposits subject to a reserve require- $2,500 is maintained; up to six automatic or ment ratio of 3 percent. The Monetary Control preauthorized transfers monthly, up to three of Act requires that this low reserve tranche be which can be by draft; and no restriction on recalculated yearly based on the change in total withdrawals made in person, by messenger, or transaction accounts at all depository institutions by mail. determined as of June 30. The DIDC also authorized—but said it would reconsider at its December 6 meeting—unlimited telephone transfers by the account holder from PROPOSED ACTION an MMDA to other accounts of the depositor at the same institution. The Federal Reserve Board has invited public The act and its legislative history provide that comment on an application by Hongkong and the MMDA account is not to be subject to Shanghai Banking Corporation, together with transaction account reserve requirements (gen- three other banking organizations, to establish an erally, 12 percent) even though up to six third- office in New York City to provide certain serparty transfers, including up to three by draft, vices in connection with foreign exchange operaare permitted. The Board established for such tions. The Board has requested comment by accounts the same reserve requirements that December 17, 1982. apply to savings accounts: a 0 percent requirement for personal MMDAs and a 3 percent requirement for nonpersonal MMDAs. NEW PAMPHLET For MMDAs established with telephone transfer privileges beyond the six authorized trans- The Board of Governors has published a new fers, the transaction account reserve require- pamphlet, "Processing Bank Holding Company ment of 12 percent will apply. and Merger Applications." Designed as a com- The reserve percentages are those that will pact reference, the pamphlet assists an applicant apply when the current phasing-in of new reserve banker in preparing and filing an application to requirements under the Monetary Control Act is merge two banks or to form a bank holding completed. Member banks are phasing down to company, explains the application processing the new requirements on a 3'/2-year schedule to steps, and outlines the relevant factors the Sysend in February 1984. Nonmember institutions tem must consider in every application. The are phasing up to the reserve requirements of the pamphlet is available free of charge from Publi- Monetary Control Act over a period ending in cations Services, Board of Governors of the September 1987. Federal Reserve System, Washington, D.C. The Board also amended its Regulation Q to 20551. authorize member banks to permit governmental units—not previously eligible—to place deposits in NOW accounts. This action, which was taken REGULATION T: AMENDMENT to conform Regulation Q to provisions of the Garn-St Germain Act, was effective October 15, The Federal Reserve Board has amended Regu- 1982. Entities eligible to maintain NOW accounts lation T (Securities Credit by Brokers and Dealas a result of this action include the federal ers) to specify the characteristics of private mort- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 Federal Reserve Bulletin • December 1982 gage passthrough securities that may be used as SYSTEM MEMBERSHIP: collateral for margin credit, effective January 17, ADMISSION OF STATE BANKS 1983. The amendment added a provision to the defi- The following banks were admitted to membernition of an over-the-counter (OTC) margin ship in the Federal Reserve System during the bond, on which broker and dealers may extend period November 11 through December 10, 1982: good faith credit. The final rule requires (1) an original issue (rather than an outstanding princi- Arizona pal amount at the time credit is extended) of Tempe Rio Salado Bank $25,000,000 that may be sold in a separate series; Florida (2) current filings with the Securities and Ex- Sunrise First State Bank of Broward change Commission; and (3) a reasonable basis Montana for belief by the selling broker that the servicing Livingston Montana Bank of agent is passing through the mortgage interest Livingston and principal payments and meeting other mate- Virginia rial terms of the offering. Floyd Blue Ridge Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

761 Record of Policy Actions of the Federal Open Market Committee Meeting Held on October 5, 1982 Nonfarm payroll employment fell further in August, mainly reflecting Domestic Policy Directive sizable job losses in the manufac- The information reviewed at this turing and trade sectors. In contrast meeting suggested that real GNP had to the payroll data, the survey of changed little in the third quarter, households indicated an increase in following an increase at* an annual employment, and the unemployment rate of about 2 percent in the second rate was unchanged at 9.8 percent. quarter. Average prices, as mea- But initial claims for unemployment sured by the fixed-weight price in- insurance rose to a new high in middex for gross domestic business September, suggesting further deteproduct, were continuing to rise rioration in the labor markets. more slowly than in 1981. The Department of Commerce The nominal value of retail sales survey of business spending plans fell nearly 1 percent in August, ac- taken in late July and August sugcording to the advance report, re- gested that businesses had again returning to the sharply reduced June duced their spending plans for 1982. level. Sales declines were particular- The survey results indicated that ly marked at automotive outlets and current-dollar expenditures for plant at general merchandise, apparel, and and equipment would rise only 3A of furniture and appliance stores. Sales a percent in 1982, compared with an of new domestic automobiles in- estimated 2*A percent in the May creased slightly in August to an an- survey and 7lA percent in the Februnual rate of 5.3 million units; sales ary survey. Actual expansion in 1981 rose further to an annual rate of 6 was about S3A percent. million units in the first 20 days of Private housing starts fell in Au- September, apparently in response gust to an annual rate of 1.0 million to purchase incentives offered by units, reversing much of the substanmanufacturers in an effort to reduce tial increase in July. While starts in excess stocks of 1982 models. August were above the average in After having changed little in July, the second quarter, they remained the index of industrial production quite low by historical standards. declined 0.5 percent in August to a Sales of existing homes declined 5 level about 1 percent below its sec- percent in August to the lowest ond-quarter average and more than monthly pace since 1970, while sales 10 percent below its prerecession of new homes continued at the sluglevel in July 1981. Production of gish pace of recent months. consumer goods fell in August, fol- The producer price index for finlowing a sizable advance over the ished goods rose 0.6 percent in Aupreceding four months, and output gust, the same as in July. The conof business equipment continued to sumer price index rose only 0.3 drop at a rapid rate. Output of de- percent in August; food prices defense and space equipment expand- clined for the second consecutive ed further. Limited information cur- month and energy prices leveled off rently available for September was after increasing sharply over the pregenerally indicative of some further ceding three months. So far this year decline in production. the producer price index and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 Federal Reserve Bulletin • December 1982 consumer price index had risen at the early impact on take-home pay annual rates of about 33/4 percent and of the tax cut as well as unusual 5 percent respectively. In recent liquidity demands in the face of months the advance in the index of continued economic uncertainties. average hourly earnings had re- Moreover, the lower level of shortmained considerably less rapid than term market interest rates had reduring 1981. duced the earnings disadvantage of In foreign exchange markets the keeping funds in checkable actrade-weighted value of the dollar counts. Growth in M2 accelerated to had risen about 5 percent over the an annual rate of about 14'/4 percent period since the last FOMC meeting. in August, but was estimated to have The dollar's strength reflected in slowed substantially in September as part a continuing concern in the mar- expansion in its nontransaction comket about economic and financial ponent decelerated markedly. difficulties abroad and also some Total credit outstanding at U.S. firming of U.S. interest rates relative commercial banks grew at an annual to foreign rates after a considerable rate of about 6V2 percent in August, drop earlier. The U.S. foreign trade the same as in July but well below deficit rose sharply in August, re- the pace in the first half of the year. flecting primarily a substantial re- Partial data for September suggested bound in nonpetroleum imports. The that growth slowed somewhat dedeficit on average in July and August spite a pickup in growth of business was at a rate well above that for the loans from the sharply reduced Aufirst half of the year, mainly because gust pace; a significant part of the of increased imports of oil. strengthening in business loans ap- At its meeting on August 24, the peared to have been associated with Committee had agreed to continue merger activity. Other short-term seeking behavior of reserve aggre- borrowing by nonfinancial busigates consistent with growth of Ml nesses generally was weak: the voland M2 from June to September at ume of commercial paper outstandannual rates of about 5 percent and ing edged down in August and about 9 percent respectively. It had dropped further in September. Howalso agreed that somewhat more rap- ever, the weakness in short-term id growth in the monetary aggregates borrowing was largely offset by inwould be acceptable depending upon creased long-term financing in the evidence that economic and finan- bond market. cial uncertainties were leading to ex- Total reserves expanded quite ceptional liquidity demands and rapidly in September, after having changes in holdings of financial as- grown relatively little on average sets. The intermeeting range for the over the preceding several months. federal funds rate, which provides a A little less than half of the Septemmechanism for initiating further con- ber growth in total reserves was supsultations of the Committee, was set plied by nonborrowed reserves, and at 7 to 11 percent. adjustment borrowing (including Following three months of weak- seasonal borrowing) by depository ness, Ml grew at an annual rate of institutions increased from an averabout IOV2 percent in August and age of about $420 million in August appeared to have grown more rapid- to about $815 million in September. ly in September. Much of the Most short-term market interest strength of Ml was accounted for by rates rose somewhat on balance over rapid growth in other checkable de- the intermeeting interval. Rates had posits, but demand deposits also ex- declined substantially over the prepanded in both months, after con- ceding two months, and decreases tracting on average since early in the were particularly marked around the year. The expansion in checkable time of the August 24 meeting of the deposits may have reflected in part Committee, when expectations of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee continued declines in short-term jected by the staff was a reasonable market rates were strong. Effective expectation. Expansion in output at August 27, the Federal Reserve dis- a somewhat faster pace might occur, count rate was reduced from \OV2to if consumer and business confidence 10 percent. Subsequently federal in the outlook improved during the funds traded at rates somewhat next few months. So far, however, above the discount rate, as com- the widely held expectations of repared with a trading level of around covery beginning in the spring or 9 percent in the last statement week summer had been disappointed, and of August, and rates on private there were still no signs of a short-term instruments also rose by strengthening in the economy. The about 1 to 2 percentage points from projected expansion in consumer detheir late August lows. At the same mands associated with the midyear time, rates on Treasury bills moved cut in federal income taxes had not up only slightly, partly reflecting the yet developed; prospects for busiincreased preference for quality on ness plant and equipment spending the part of investors. The well-publi- and for commercial construction had cized problems in recent months of a deteriorated; and agricultural infew banks here and abroad, the come and expenditures had reacute external financing difficulties mained depressed. In September inof Mexico, and emerging financing dustrial output and employment problems in other developing coun- most likely had declined further, and tries led to a more cautious atmo- the unemployment rate had almost sphere in private credit markets and surely risen from the July-August a widening of yield spreads between level of 9.8 percent. Against that U.S. government securities and background, it was recognized that some private credit instruments. there were risks of a shortfall from Bond yields continued to decline the projection of moderate growth in over the intermeeting period, falling real GNP over the quarters ahead. VA to 3A percentage point. Average At the same time, progress in rerates on new commitments for fixed- ducing the rate of inflation had been rate conventional home mortgage substantial, exceeding expectations loans declined about 1 percentage of many, even after allowance for point. the influence of volatile prices of The staff projections presented at energy products and foods. Morethis meeting suggested that real GNP over, further moderation in labor would grow moderately in the cost and price pressures and also in course of 1983, but that any recov- inflationary expectations was a reaery in economic activity in the sonable anticipation, given an envimonths just ahead was likely to be ronment of moderate expansion in quite limited. The projections for the output and employment, relatively year ahead also suggested that un- low levels of resource utilization, employment would remain at a high and prospects for improvement in level. The rise in prices, as measured productivity. by the fixed-weight price index for Domestic problems were being ingross domestic business product, tensified because the recession in was expected to slow gradually from economic activity was worldwide; it a rate in the third quarter of 1982 that had affected every major industrial was estimated to be somewhat high- country and, through its impact on er than that in the first half of the foreign trade and commodity prices, year. the developing countries as well. In the Committee's discussion of Many of the latter countries had the economic situation and policy, it accumulated large external debts was generally agreed that growth in over a number of years, and they real GNP over the next year at about now faced difficult financing and adthe relatively restrained pace pro- justment problems. Altogether, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 Federal Reserve Bulletin • December 1982 these circumstances had been con- induce temporary bulges in both the tributing to an atmosphere of ner- demand deposit and NOW account vous uncertainty, which was reflect- components of Ml. Second, later in ed in, among other things, the the quarter, as the Depository Instiforeign exchange value of the dollar. tutions Deregulation Committee Over recent months, the dollar had (DIDC) implemented recent legislarisen against other major currencies tion, depository institutions would even when dollar interest rates were be authorized to offer a new account declining relative to foreign rates, (or accounts) that would be free and the high exchange value current- from interest rate ceilings, would be ly had serious implications both for usable to some degree for transac- U.S. export industries and for efforts tion purposes, and would be competabroad to pursue flexible monetary itive with money market mutual policies. funds. The new account was likely The U.S. banking system had to have a substantial impact on the been subjected to pressures, owing behavior of Ml, but no basis existed in part to well-known problems of for predicting its magnitude. While particular institutions but also to a the new account seemed likely to more general uneasiness about the have a depressing effect on currently possibility of further credit problems defined Ml as it drew money from domestically or internationally. An NOW accounts, the direction of the unusually cautious attitude in pri- overall effect was in some doubt vate credit markets had led to a since that would depend in part on widening of risk premiums, with the the exact characteristics of the inresult that private interest rates had strument or instruments authorized declined less than rates on Treasury by the DIDC. The new instrument securities since midsummer, and in could include even more transaction recent weeks private short-term features than the account specificalmarket rates had tended to move up. ly provided for in the legislation. The Altogether, these circumstances ap- new instrument could also be expeared to have been associated with pected to affect the composition of business efforts to generate and con- M2 and perhaps in some degree its serve cash, with market partici- total as well. It seemed clear, howpants' concerns about the quality of ever, that the new instrument would credit, and with a general increase in affect the behavior of M2 and other precautionary demands for money broader aggregates to a much smalland liquidity. In financial markets er extent than that of Ml. and elsewhere, a sense of disarray Because of these difficulties in incould develop, which could increase terpreting the behavior of Ml during the atmosphere of uncertainty. the fourth quarter, the Committee With respect to the period ahead, decided that it would place much the Committee continued to face un- less than the usual weight on that certainties about the interpretation aggregate's movements during this of the behavior of the monetary ag- period and that it would not set a gregates in general, arising from the specific objective for its growth. In impact of the current economic envi- the view of most members, against ronment on precautionary demands the background of prevailing ecofor money and liquidity. Moreover, nomic and financial developments, the behavior of M1 in particular dur- added pressures on bank reserve poing the final three months of the year sitions and money markets in rewould inevitably be distorted by two sponse to a bulge in Ml related to institutional developments. First, a the maturing of all saver certificates very large volume of all savers cer- were not justified; indeed, some eastificates would mature in the first ing of the pressures of recent weeks part of October, and disposition of in some sectors of the private credit the proceeds could be expected to markets would be desirable, if that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee could be consistent with growth in more slowly than in 1981. In August the the broader aggregates in line with nominal value of retail sales fell back to the sharply reduced June level, while longer-term objectives. industrial production and nonfarm pay- The Committee agreed that in all roll employment also declined. Housing the circumstances, it would seek to starts fell, reversing much of the submaintain expansion in bank reserves stantial July increase. The unemployneeded for an orderly and sustained ment rate was unchanged at 9.8 percent in August, but claims for unemployment flow of money and credit, consistent insurance have risen further in recent with growth of M2 (and M3) from weeks and there are indications of some September to December at an annual further decline in production. In recent rate in a range of around SV2 to 9V2 months the advance in the index of averpercent, and taking account of the age hourly earnings has remained considerably less rapid than during 1981. desirability of somewhat reduced The weighted average value of the pressures in private credit markets dollar against major foreign currencies in the light of current economic con- has risen strongly further over the past ditions. Growth of M2 from the month, reflecting in part a continuing fourth quarter of 1981 to the fourth concern in the market about economic and financial difficulties abroad and also quarter of 1982 might be somewhat some firming of U.S. interest rates relaabove the range for the year that the tive to foreign rates after a considerable Committee had reaffirmed in July; drop earlier. The U.S. merchandise the Committee had also agreed then trade deficit rose sharply in August and that for a time it would tolerate on average in July and August the deficit rate was well above that for the first half. growth somewhat above the target After three months of weakness, Ml range, in the event of unusual pre- grew rapidly in August and September; cautionary demands for money and growth in M2 accelerated in August from liquidity, and that such growth an already rapid pace but appears to would be consistent with longer- have slowed markedly in September. Following large declines over the preterm objectives. Recent and proceding two months, short-term market spective market and economic con- interest rates have risen somewhat on ditions appeared consistent with that balance since late August, while bond approach. Somewhat slower growth yields and mortgage rates have continover the period from September to ued to decline. The Federal Reserve discount rate was reduced from 10'/2 December, bringing those aggrepercent to 10 percent in late August. gates around the upper part of the Meanwhile, reflecting some well-publiranges for the year ending in the cized problems in recent months of a few fourth quarter of 1982, would be banks here and abroad and the financing acceptable and desirable in a context difficulties of Mexico, a more cautious atmosphere in private credit markets has of declining interest rates. Should been reflected in wider spreads between economic and financial uncertainties U.S. government and some private credlead to still stronger liquidity de- it instruments. mands, somewhat more rapid The Federal Open Market Committee growth in the broader aggregates seeks to foster monetary and financial conditions that will help to reduce inflawould be tolerated. The intermeettion, promote a resumption of growth in ing range for the federal funds rate, output on a sustainable basis, and conwhich provides a mechanism for ini- tribute to a sustainable pattern of intertiating further consultation of the national transactions. In July, the Com- Committee, was set at 7 to 10V2 mittee agreed that these objectives would be furthered by reaffirming the percent. monetary growth ranges for the period from the fourth quarter of 1981 to the The following domestic policy difourth quarter of 1982 that it had set at rective was issued to the Federal the February meeting. These ranges Reserve Bank of New York: were 2Vi to 5Vi percent for Ml, 6 to 9 percent for M2, and 6V2 to 9Vz percent The information reviewed at this meet- for M3. The associated range for bank ing suggests that real GNP changed little credit was 6 to 9 percent. The Committee in the third quarter, following a small agreed that growth in the monetary and increase in the second quarter, while credit aggregates around the top of the prices on the average continued to rise indicated ranges would be acceptable in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 Federal Reserve Bulletin • December 1982 the light of the relatively low base period Martin, Partee, Rice, Mrs. Teeters, for the Ml target and other factors, and and Mr. Wallich. Votes against this that it would tolerate for some period of action: Messrs. Black and Ford and time growth somewhat above the target Mrs. Horn. range should unusual precautionary demands for money and liquidity be evident in the light of current economic uncertainties. The Committee also indi- Mr. Black dissented from this accated that it was tentatively planning to tion because he preferred to direct continue the current ranges for 1983 but that it would review that decision care- operations in the period immediately fully in the light of developments over ahead toward restraining monetary the remainder of 1982. growth. Although he was mindful of Specification of the behavior of Ml the current difficulties of interpreting over the balance of the year is subject to the behavior of Ml, he was conunusually great uncertainties because it will be substantially affected by special cerned that the recent strength in Ml circumstances—in the very near term by might be followed by still more rapid reinvestment of funds from maturing all growth in lagged response to the savers certificates and later by the pubsubstantial decline in short-term inlic's response to the new account directly competitive with money market funds terest rates that had occurred in the mandated by recent legislation. The summer, which could require even probable difficulties in interpretation of more restrictive operations later. Ml during the period suggest much less Mr. Ford dissented from this acthan usual weight be placed on movetion because he preferred a policy ments in that aggregate during the current quarter. These developments are for the period immediately ahead expected to affect M2 and other broader that was more firmly directed toaggregates to a much smaller extent. ward restraining monetary growth, In all the circumstances, the Commitalthough he recognized that the betee seeks to maintain expansion in bank havior of Ml in particular would be reserves needed for an orderly and sustained flow of money and credit, consis- difficult to interpret. He was content with growth of M2 (and M3) in a cerned that the Committee's policy range of around 8V2 to 9'/2 percent at an directive might be misinterpreted in annual rate from September to Decemways that could adversely affect purber, and taking account of the desirability of somewhat reduced pressures in suit of the System's longer-run antiprivate credit markets in the light of inflationary objectives, particularly current economic conditions. Somewhat in the context of a highly expansive slower growth, bringing those aggregates fiscal policy program. around the upper part of the ranges set Mrs. Horn dissented from this acfor the year, would be acceptable and desirable in a context of declining inter- tion because she preferred to continest rates. Should economic and financial ue setting a specific objective for uncertainties lead to exceptional liquid- growth of Ml, as well as for M2, ity demands, somewhat more rapid over the current quarter, notwithgrowth in the broader aggregates would be tolerated. The Chairman may call for standing the problems of interpreting Committee consultation if it appears to its behavior. In setting-a target for the Manager for Domestic Operations Ml, she would tolerate faster growth that pursuit of the monetary objectives early in the period, owing to the and related reserve paths during the periuncertain impact of the proceeds od before the next meeting is likely to be associated with a federal funds rate per- from maturing all savers certificates, sistently outside a range of 7 to 10!/2 and would give greater weight to the percent. behavior of M2 for some weeks after Votes for this action: Messrs. the introduction of the new instru- Volcker, Solomon, Balles, Gramley, ment at depository institutions. Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board's Annual Report, are made available a few days after the next regularly scheduled meeting and are later published in the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

767 Legal Developments AMENDMENTS TO REGULATION D However, an institution shall not reduce the amount of required reserves on any category of deposits or The Board of Governors of the Federal Reserve Sys- accounts that are first authorized under Federal law in tem has amended Regulation D—Reserve Require- any State after April 1, 1980. ments of Depository Institutions (12 CFR Part 204) to implement section 708 of the Garn-St Germain Depository Institutions Act of 1982 ("Garn-St Germain Act") AMENDMENTS TO REGULATION K (Pub. L. 97-320). Under this provision, a bank that was a member of the Federal Reserve System on or after The Board of Governors of the Federal Reserve Sys- July 1, 1979, but which withdrew from membership on tem has amended its Regulation K to change the or before March 31, 1980, is entitled to a phase-in of procedures for establishing a U.S. branch of an Edge reserve requirements during a period beginning Octo- corporation and to shorten the notification period in ber 28, 1982, and ending October 24, 1985. Such banks Section 211.5(c)(2) of its Regulation K from 60 to 45 are currently subject to reserve requirements in the days. same manner as member banks, while other nonmem- In addition, the Board has amended Regulation K bers are phasing into the reserve requirements of the governing the U.S. operations of foreign banking orga- Monetary Control Act during a period that ends Sep- nizations to delete an exception from a reporting tember 3, 1987. requirement concerning information on U.S. invest- Effective October 28, 1982, the Board amends Part ments not readily available to the reporting organiza- 204 by revising section 204.4(b) and (c) to read as set tion. The Board also approved a technical change in forth below: the language of the regulation to conform it to the corresponding statutory provision in the Bank Holding Part 204—Reserve Requirements of Depository Company Act. Institutions Effective November 8, 1982, the Board amends Part 211 as set forth below: Section 204.4—Transitional Adjustments Part 211—International Banking Operations (b) Members and former members. The required re- 1. By revising section 211.4(c)(1) to read as follows: serves of any depository institution that is a member bank on September 1, 1980, or withdraws from mem- Section 211.4—Edge and Agreement bership after March 31, 1980, shall be determined as Corporations follows: *** * * * ** (c) Branches. (c) Certain former member banks. The required re- (1) An Edge Corporation may establish branches in serves of any depository institution that was a member the United States 45 days after the Edge Corporabank on July 1, 1979, and withdrew from membership tion has given notice to its Reserve Bank, which is during the period beginning on July 1, 1979, and ending to include a copy of the notice of the proposal on March 31, 1980, shall be determined by reducing published in a newspaper of general circulation in the amount of required reserves computed under secthe communities to be served by the branch, unless tion 204.3 in accordance with the following schedule: the Edge Corporation is notified to the contrary within that time. The newspaper notice shall be Percentage that Reserve maintenance periods occurring computed reserves will placed in the classified advertising legal notices between be reduced section of the newspaper and may appear no more than 90 calendar days prior to submission of notice October 28, 1982 and October 26, 1983 50 October 27, 1983 and October 24, 1984 33.3 of the proposal to the Reserve Bank. The newspaper October 25, 1984 and October 23, 1985 16.7 notice must provide an opportunity for the public to October 24, 1985 and forward 0 give written comment on the proposal to the appro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 Federal Reserve Bulletin • December 1982 priate Federal Reserve Bank for at least 30 days for loans by a member bank to its executive officers, after the date of publication. The factors considered directors, and principal shareholders and their related in acting upon a proposal to establish a branch are interests. those enumerated in section 211.4(a)(1). Effective November 1, 1982, the Board amends Part 215 as set forth below: 2. By revising the first sentence of section Part 215—Loans to Executive Officers, 211.5(c)(2) to read as follows: Directors, and Principal Shareholders of Member Banks Section 211.5—Investments in Other Organizations Section 215.5—Additional Restrictions on Loans to Executive Officers (c) *** (c) A member bank is authorized to extend credit to (2) Prior Notification. An investment in a subsidany executive officer of the bank: iary or joint venture that does not qualify under the (1) in any amount to finance the education of the general consent procedure may be made after the executive officer's children; investor has given 45 days' prior written notice to (2) in any amount to finance the purchase, constructhe Board, unless the Board waives such period tion, maintenance, or improvement of a residence of because it finds immediate action by the investor is the executive officer, if the extension of credit is required by the circumstances presented, if the total secured by a first lien on the residence and the amount to be invested does not exceed 10 percent of residence is owned (or expected to be owned after the investor's capital and surplus. the extension of credit) by the executive officer; and (3) in an aggregate amount not to exceed $10,000 3. Section 211.23(h) is amended by removing para- outstanding at any one time for a purpose not graph (3). otherwise specifically authorized under this paragraph. 4. Section 211.23(a)(3) is revised to read as follows: Section 211.23—Nonbanking Activities of AMENDMENTS TO RULES REGARDING Foreign Banking Organizations DELEGATION OF AUTHORITY The Board of Governors of the Federal Reserve Sys- (cl) tem is amending its Rules Regarding Delegation of (3) "Subsidiary" means any organization 25 per Authority to delegate (1) to the Federal Reserve Banks cent or more of whose voting shares is directly or authority to approve formation of a foreign "shell" indirectly owned, controlled or held with power to vote by a foreign banking organization, or which is branch by a member bank, and authority to waive the otherwise controlled or capable of being controlled 30 days' notice requirement to the Board before a by a foreign banking organization. foreign banking organization exercises its one time change of home State; (2) to the Director of the Division of Banking Supervision and Regulation authority to suspend the notification period in section AMENDMENT TO REGULATION O 211.5(c)(2) of Regulation K; and (3) to the Secretary of the Board authority to act on certain applications The Board of Governors of the Federal Reserve Syswhere authority is delegated to the Reserve Bank but a tem is amending its Regulation O (12 CFR Part 215), senior officer or director of an involved party is also a which governs loans by a member bank to its execudirector of the Reserve Bank or branch. It is anticipattive officers, directors, and principal shareholders, to ed that these new delegations would aid the Board in implement certain amendments to sections 22(g) and processing applications and notices in an expeditious (h) of the Federal Reserve Act, (12 U.S.C. § 375a and fashion. 375b), included in the Garn-St Germain Depository Institutions Act of 1982. The amendments to the Effective November 8, 1982, the Board amends Part Regulation relate to the limitations on loans by a 265 as set forth below: member bank to its executive officers. In addition, the rule confirms the dollar amount above which the prior Part 265—Rules Regarding Delegation of approval of the bank's board of directors is required Authority Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 769 Section 265.2—Specific Functions delegated to (i) No member of the Board has indicated an Board Employees and to Federal Reserve objection prior to the Reserve Bank's action. Banks (ii) No senior officer or director of an involved party is also a director of a Federal Reserve Bank or branch. Q) *** (iii) All relevant departments of the Reserve Bank (2) Under the provisions of sections 18(c) and concur. 18(c)(4) of the Federal Deposit Insurance Act (iv) If the proposal involves shares of a State (12 U.S.C. §§ 1828(c) and 1828(c)(4)), sections 3(a) member bank or bank holding company controland 4(c)(8) of the Bank Holding Company Act ling a State member bank, the appropriate bank (12 U.S.C. §§ 1842(a) and 1843(c)(8)), the Change in supervisory authorities have indicated that they Bank Control Act (12 U.S.C. § 1817(j)) and section have no objection to the proposal, or no objection 25(a) of the Federal Reserve Act (12 U.S.C. 611 et has been received from the appropriate bank seq.), and sections 225.3(b) and (c), and 225.4(a) and supervisory authorities within the time allowed by (b) and 225.7 of Regulation Y (12 CFR §§ 225.3(b) the Act. and (c), 225.4(a) and (b), and 225.7), sections (v) No significant policy issue is raised by the 211.3(a), 211.4(c) and 211.5(c) of Regulation K proposal as to which the Board has not expressed (12 CFR §§ 211.3(a), 211.4(c) and 211.5(c)), to fur- its view. nish reports on competitive factors involved in a bank merger to the Comptroller of the Currency and the Federal Deposit Insurance Corporation and to (50) Pursuant to section 211.4(c)(2) of this Chapter take actions the Reserve Bank could take except for (Regulation K), to approve an Edge Corporation the fact that the Reserve Bank may not act because application to establish a branch abroad, provided a director or senior officer of any holding company, that no senior officer or director of the involved bank, or company involved in the transaction is a Parties is also a director of a Reserve Bank or director of a Federal Reserve Bank or branch. branch and that no significant policy issue is raised by the proposal as to which the Board has not expressed its view. (c) *** (27) Under section 25 and 25(a) of the Federal Reserve Act and Part 211 of this Chapter (Regula- (55) Pursuant to section 211.3(a) of this Chapter tion K), to waive the 45 days' prior notice period for (Regulation K), to approve the establishment, dian investment that qualifies for the prior notification rectly or indirectly, of a foreign branch by a member procedures set forth in section 211.5(c)(2) of Regulabank where the application is not one for a fulltion K (12 CFR 211.5(c)(2)). service branch in a foreign country, provided that no (28) Pursuant to section 211.5(c)(2) of this Chapter senior officer or director of the involved parties is (Regulation K), to suspend the notification period or also a director of a Reserve Bank or branch and that to require that an investor file an application for the no significant policy issue is raised by the proposal Board's specific consent. as to which the Board has not expressed its view. (56) Pursuant to section 211.22(c)(1) of this Chapter (Regulation K), to waive the 30 days' prior notifica- ^ *** tion period with respect to a foreign bank's change (30) Under the provisions of the Change in Bank of home State. Control Act of 1978 (12 U.S.C. § 18170')) and section 225.7 of this chapter (Regulation Y), with respect to a bank holding company or State member BANK HOLDING COMPANY AND BANK MERGER bank, to determine the informational sufficiency of ORDERS ISSUED BY THE BOARD OF GOVERNORS notices and reports filed under the Act, to extend periods for consideration of notices, to determine Orders Under Section 3 of Bank Holding whether a person who is or will be subject to a Company Act presumption described in section 225.7(a) of this chapter should file a notice regarding a proposed First Bancorp of New Hampshire, Inc., transaction, and, if all the following conditions are Manchester, New Hampshire met, to issue a notice of intention not to disapprove a proposed change in control: Order Approving Acquisition of Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 Federal Reserve Bulletin • December 1982 First Bancorp of N.H., Inc., Manchester, New Hamp- In a number of previous cases, the Board has, in its shire ("Applicant"), a bank holding company within evaluation of the impact of the proposal on existing the meaning of the Bank Holding Company Act, has competition, taken into account as a mitigating factor applied for the Board's approval under section 3(a)(3) the presence of thrift institutions in the particular of the act (12 U.S.C. § 1842(a)(3)) to acquire The market and the extent of the competition afforded by Bedford Bank, Bedford, New Hampshire ("Bank"). such institutions.3 The Board did not, however, find Notice of the application, affording opportunity for that the thrift institutions in those cases had developed interested persons to submit comments and views, has a sufficiently broad range of products and services been given in accordance with section 3(b) of the act. such that they should be considered full competitors The time for filing comments and views has expired with commercial banks in the commercial banking line and the application and all comments received have of commerce.4 Although the Board has not included been considered in light of the factors set forth in thrift institutions generally in the commercial banking section 3(c) of the act (12 U.S.C. § 1842(c)). line of commerce, the Board believes that the competi- Applicant, the second largest commercial banking tion afforded by thrift institutions should be given organization in the state, controls eight banks with appropriate weight. This is particularly true where the total deposits of $417 million (as of March 31, 1982), thrift institutions are among the largest depository representing 14.9 percent of deposits in commercial institutions in the market, control a substantial amount banks in New Hampshire. Bank has deposits of $19.3 of the market's NOW or other transaction accounts, million (as of March 31, 1982),1 representing 0.7 per- have substantial commercial and non-residential mortcent of the total deposits in commercial banks in the gage lending authority, and actively engage in the state, and is the 43rd largest commercial banking business of commercial lending.5 organization in the state. Consummation of this pro- In this case, the record shows that thrift institutions posal would not result in a significant increase in the are among the largest depository institutions in the concentration of commercial banking resources in the Manchester market. The aggregate deposits of thrift state. institutions in the market, including transaction ac- Bank is the seventh largest of nine commercial counts, are nearly twice the amount of deposits held banking organizations in the Manchester banking mar- by all nine commercial banks in the market.6 The two ket and controls 3.2 percent of the deposits in commer- large state savings banks in the market compete with cial banks in that market. A subsidiary bank of Appli- commercial banks in a wide range of banking services, cant is the second largest banking organization in the including the provision of savings deposits, demand Manchester banking market, controlling 23.2 percent deposit and other transaction accounts, consumer of total commercial bank deposits. Consummation of loans, and mortgage loans. State savings banks in New the proposed transaction would increase Applicant's Hampshire are authorized to invest up to 15 percent of market share of deposits in commercial banks to 26.4 their total deposits without any limitation in unsecured percent, but would not alter Applicant's rank as the second largest banking organization in the market. In addition, the percentage of the total deposits in commercial banks in the market held by the four largest 3. "First Bancorp of N.H., Inc.", 64 FEDERAL RESERVE BULLETIN commercial banking organizations in the market would 967 (1978); "Fidelity Union Bancorporation", 66 FEDERAL RESERVE increase from 78.6 to 81.8 percent. The effect of the BULLETIN 576 (1980); "Key Banks, Inc.", 66 FEDERAL RESERVE BULLETIN 781 (1980); "United Bank Corporation of New York", 67 proposal would be to eliminate existing competition FEDERAL RESERVE BULLETIN 358 (1981). between Applicant and Bank and also to increase the 4. In United States v. Connecticut National Bank, 418 U.S. 656, concentration of banking resources in the Manchester 666 (1974), the Court suggested that thrift institutions might be banking market to a level that, absent mitigating included in the commercial banking line of commerce "when and if [they] become significant participants in the marketing of bank considerations, would be likely to subject the merger services to commercial enterprises." to challenge under the Merger Guidelines recently 5. See "Fidelity Union Bancorporation," supra note 3. Cf United issued by the U.S. Department of Justice.2 States v. Philadelphia National Bank, 374 U.S. 321, 365, where the Court adjusted downward the market shares at issue to reflect the competitive influence within the market from out-of-market institutions. 6. The two largest savings banks in the market, Amoskeag Savings 1. All banking data as of June 30, 1981, unless noted otherwise. Bank and Merchants Savings Bank of Manchester, held total deposits 2. Under these guidelines, the Manchester market is considered of $669.5 million as of June 30, 1981, as compared to total deposits of highly concentrated because of a Herfindahl Hirschman Index $502.7 million for the nine commercial banks in the market. These two ("HHI") of 1907 (as of June 30, 1981). Consummation of Applicant's savings banks held over 30 percent of the total deposits in NOW proposal would increase the HHI by 147 points. The Justice Depart- accounts in depository institutions in the market, approximately 15 ment's guidelines state that' the Department is likely to challenge a percent of the total deposits in all transaction accounts and approximerger in a highly concentrated market (a market with a HHI of 1800 mately 3 percent of the total deposits in IPC demand deposit accounts or more) that produces an increase in the HHI of 100 points or more. and NINOW accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 771 commercial and industrial loans7 and to accept de- Bank with additional capital. Accordingly, the Board's mand deposits from commercial customers. The two judgment is that banking factors lend weight toward largest savings banks in the Manchester market have approval of the application. Upon consummation of established commercial lending departments, hired the proposed acquisition, Applicant will assist Bank in commercial lending officers, actively advertised the offering new banking services, including residential availability of commercial loans, and made a number mortgage lending and trust services. Thus, considerof commercial loans.8 ations relating to the convenience and needs of the On the basis of this record, the Board finds that the community to be served favor approval. thrift institutions in the Manchester banking market Based on the foregoing and other considerations exert a significant competitive influence in that mar- reflected in the record, the Board has determined that ket, an influence that mitigates the adverse effects of the proposed transaction would be in the public interthe proposed transaction on competition and concen- est. Accordingly, the Board has determined that the tration of banking resources in the market.9 In this proposed transaction should be and hereby is apregard, the Board notes that, if only 15 percent of the proved. The transaction shall not be consummated deposits held by thrift institutions in the market were before the thirtieth calendar day following the effective included in the relevant line of commerce, the market date of this Order or later than three months after the would no longer be considered highly concentrated on effective date of this Order, unless such period is the basis of the Justice Department's merger guide- extended for good cause by the Board or by the lines and the increase in the HHI would be below the Federal Reserve Bank of Boston, acting pursuant to level that would be likely to subject the merger to delegated authority. challenge under those guidelines.10 On the basis of all By order of the Board of Governors, effective facts of record, the Board concludes that consumma- November 29, 1982. tion of the proposed transaction would not substantially lessen competition in the relevant Manchester bank- Voting for this action: Chairman Volcker and Governors ing market. Martin, Wallich, Partee, and Gramley. Voting against this action: Governors Teeters and Rice. The financial and managerial resources of Applicant, its subsidiaries, and Bank are regarded as generally satisfactory, and their future prospects appear (Signed) JAMES MCAFEE, favorable. It is expected that affiliation with Applicant [SEAL] Associate Secretary of the Board. will strengthen Bank's overall financial resources, particularly in view of Applicant's intention to provide Dissenting Statement of Governors Teeters and Rice 7. New Hampshire R.S.A. Chapter 387.3:(II-a). State savings banks are also authorized to invest an additional 5 percent of their We would deny the application of First Bancorp of assets in commercial and business loans within the state of New N.H., Inc. to acquire The Bedford Bank, Bedford, Hampshire or within 75 miles of the institution's home office. New Hampshire R.S.A., Chapter 394-A. New Hampshire, because we believe that consumma- 8. The two largest savings banks in the market hold 4.5 percent of tion of this proposal would tend to substantially lessen the total commercial and industrial loans and over 55 percent of the competition in the Manchester banking market. total non-residential real estate loans held by all depository institutions in the market. Moreover, the market's largest savings bank has Applicant is the second largest commercial banking engaged in an aggressive advertising program to increase its volume of organization in the Manchester market, and would commercial lending, suggesting that the market share of commercial and industrial loans held by the thrifts in the Manchester market is increase its market share from 23.2 percent to 26.4 likely to increase in the near future, particularly in view of the large percent as a result of acquisition of Bank. Inasmuch as share of market deposits held by the thrifts. Bank is a viable competitor, we believe its elimination 9. The Board does not believe that the record in this case supports a finding that the thrift institutions in the Manchester banking market as a competitor would have significantly adverse efhave developed their commercial banking services to the point where fects on competition in the Manchester banking marthey may be considered significant participants in the provision of ket. bank services to commercial enterprises in the market. Accordingly, the Board has not included these thrift institutions in the relevant In addition to the elimination of existing competicommercial banking line of commerce in the Manchester market. The tion, the proposal would increase the concentration of total commercial and industrial loans held by the two largest thrift banking resources in a market that is already highly institutions in the market represent less than one percent of their total deposits. The remaining two thrifts in the market hold no commercial concentrated. Specifically, upon consummation of this and industrial loans. proposal, the market's four-firm concentration ratio 10. On this basis, the HHI for the Manchester market would be would increase from 78.6 to 81.8 percent. Additionalreduced to 1345, and consummation of the merger would increase the HHI by 91 points. The Justice Department's guidelines state that the ly, the Manchester market is considered highly con- Department is unlikely to challenge a merger that produces an centrated under the Merger Guidelines recently issued increase in the HHI of less than 100 points in a market with a preby the United States Department of Justice with a merger HHI between 1000 and 1800. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 Federal Reserve Bulletin • December 1982 Herfindahl Hirschman Index ("HHI") of 1907. Con- state deposits by 0.17 percent and would not alter summation of the proposal would increase the HHI by Applicant's ranking in the state. The Board concludes 147 points, an increase that would subject this acquisi- that consummation of this proposal would not result in tion to challenge under the Justice Department's a significant increase in concentration of banking guidelines. resources in Texas. The majority found that the anticompetitive effects Banks are currently the only subsidiary banks of of this proposal were lessened by the impact of compe- Chisholm Financial Services, Inc., Richardson, Textition from thrift institutions in the market. It is our as, a registered bank holding company. Citizens Bank view that, at present, thrift institutions in the Man- ($175.5 million in deposits) is the eleventh largest of chester market are not sufficiently strong competitors 151 banks located in the Dallas banking market, and of commercial banks, to be weighed equally with holds 0.81 percent of total market deposits in commerthem, particularly in the provision of commercial loan cial banks.2 Chisholm Bank ($6.2 million in deposits) is and deposit services. It is this cluster of commercial the 151st largest commercial bank in the Dallas market services that the Courts have found relevant in assess- and holds 0.03 percent of total market deposits in ing competition with commercial banks. Thus, we do commercial banks. Applicant, with 11 subsidiary not consider the impact of thrift institutions in the banks, is the fourth largest banking organization in the Manchester banking market to be sufficient to mitigate Dallas banking market and holds aggregate deposits of the adverse competitive effects associated with this $1.79 billion, representing 5.5 percent of total deposits application. in commercial banks in the relevant market. Accordingly, we would deny this application. Consummation of this proposal would eliminate some existing competition between Applicant and November 29, 1982 Banks in the Dallas banking market. Applicant's share of market deposits would increase by 0.84 percent, and Applicant's rank within the market would not First City Bancorporation of Texas, Inc., change. The Board finds that consummation of the Houston, Texas proposal would not have significantly adverse competitive effects. In this regard, the Board notes that the Order Approving Acquisition of Banks Dallas banking market is not highly concentrated and there would remain a large number of independent First City Bancorporation of Texas, Inc., Houston, banks that could serve as entry vehicles for banking Texas, a bank holding company within the meaning of organizations not currently represented in the market. the Bank Holding Company Act, has applied for the Accordingly, in view of all the facts of record, includ- Board's approval under section 3(a)(3) of the act (12 ing the structure of the relevant market, the absolute U.S.C. § 1842(a)(3)) to acquire 100 percent of the and relative size of Banks, and the number of banking voting shares of Chisholm Financial Services, Inc., organizations in the Dallas banking market, the Board Richardson, Texas and, thus, indirectly acquire 100 is of the view that consummation of the transaction percent and 82 percent, respectively, of the voting would have no significantly adverse competitive efshares of Citizens Bank, Richardson, Texas, and Chis- fects in the Dallas banking market. holm National Bank, Piano, Texas (collectively re- The financial and managerial resources of Applicant ferred to as "Banks"). and its subsidiaries are considered satisfactory and Notice of the application, affording opportunity for their future prospects appear favorable. The financial interested persons to submit comments and views, has and managerial resources of Banks are generally satisbeen given in accordance with section 3(b) of the act. factory and their future prospects as affiliates of Appli- The time for filing comments and views has expired cant appear favorable. Accordingly, banking factors and the Board has considered the application and all are consistent with approval of the application. Applicomments received in light of the factors set forth in cant has committed to inject additional capital into section 3(c) of the act (12 U.S.C. § 1842(c)). Citizens Bank, which would expand the lending capac- Applicant, the second largest banking organization ities of Bank. Also, Applicant proposes to bring greatin Texas, controls 57 commercial banks with total er expertise and specialization to Banks' lending, aggregate deposits of $9.8 billion, representing 9.25 trust, economic consulting and forecasting, and investpercent of total deposits in commercial banks in the ment and financial advisory services. The Board's state.1 Acquisition of Banks, with aggregate deposits view is that the benefits to the public that may be of $181.7 million, would increase Applicant's share of 2. The relevant banking market is approximated by the Dallas 1. Banking data are as of June 30, 1982. Ranally Metropolitan Area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 773 expected from consummation of the proposed transac- mined by an eleven-member board of directors and tion are consistent with approval and are sufficient to management officials appointed by that board of direcoutweigh any adverse effects on competition resulting tors. The Republic of Italy appoints only two members therefrom. Therefore, the Board's judgment is that the of the board of directors of San Paolo and does not proposed transaction would be in the public interest appoint any of its management officials. The remaining and that the application should be approved. members of the board of directors are appointed by the On the basis of the record, the application is ap- Chambers of Commerce, Industry, and Agriculture of proved for the reasons summarized above. The trans- Turin, Milan, Genoa, and Rome, the Cities of Turin action shall not be made before the thirtieth calendar and Genoa, and the Provincial Administration of the day following the effective date of this Order or later District of Turin. than three months after that date, unless such period is San Paolo offers a full range of commercial banking extended for good cause by the Board, or by the services in Italy and operates a Federal agency in New Federal Reserve Bank of Dallas, pursuant to delegated York State.1 U.S. Holding is a non-operating corporaauthority. tion wholly owned by San Paolo and organized under By order of the Board of Governors, effective the laws of New York for the purpose of acquiring the November 1, 1982. shares of Bank. Upon acquisition of Bank, Applicants would control Voting for this action: Chairman Volcker and Governors the 30th largest commercial banking organization in Martin, Wallich, Partee, Teeters, Rice, and Gramley. California, with total deposits of $277 million, representing 0.2 percent of the total deposits in commercial (Signed) JAMES MCAFEE, banks in the state.2 Bank is the seventeenth largest [SEAL] Associate Secretary of the Board. commercial bank in the Los Angeles, California, banking market, and controls 0.5 percent of the total deposits in commercial banks in that market.3 Inas- Istituto Bancario San Paolo di Torino, much as Applicants do not conduct any banking Turin, Italy operations or other business in the state of California, consummation of the proposed transaction would have no adverse effects on existing or potential competition Order Approving Formation of a Bank Holding in any relevant market and would not increase the Company concentration of resources in any relevant area. Therefore, the Board concludes that competitive con- Istituto Bancario San Paolo di Torino, Turin, Italy siderations are consistent with approval of the applica- ("San Paolo"), and its subsidiary, San Paolo U.S. tions. Holding Company, New York, New York ("U.S. Holding"), have each applied for the Board's approval The financial and managerial resources of each of under section 3(a)(1) of the Bank Holding Company the Applicants appear generally satisfactory and the Act (12 U.S.C. § 1842(a)(1)) to become a bank holding future prospects of each appear favorable. The financompany through the acquisition of 85 percent of the cial and managerial resources of Bank appear generaloutstanding voting shares of First Los Angeles Bank, ly satisfactory and the future prospects of Bank appear Los Angeles, California ("Bank"). favorable, especially in light of commitments made by Notice of the applications, affording an opportunity Applicants to inject additional capital into Bank. for interested persons to submit comments and views, Based on these and other commitments made by has been given in accordance with section 3(b) of the Applicants, the Board has determined that consideract. The time for filing comments and views has ations relating to banking factors are consistent with expired and the Board has considered the applications approval of the applications. Although consummation and all comments received in light of the factors set of the proposal would not result in any changes the forth in section 3(c) of the act. services offered by Bank, considerations relating to San Paolo is a Public Law Credit Institution orga- the convenience and needs of the community to be nized under the laws of Italy. Based on all the facts of record, it does not appear that San Paolo is controlled by or is an agency of the Republic of Italy. San Paolo is 1. San Paolo also has a minority interest in Tradinvest Purchasing a nonstock charitable foundation, the capital of which Company Limited, Hamilton, Bermuda, which owns 95 percent of AGIP USA, Inc., New York, New York. This investment is permissihas been derived from private contributions and reble under section 211.23(f)(5) of the Board's Regulation K. (12 CFR tained earnings. The Republic of Italy has not made § 211.23(f)(5)). any contributions to the capital funds of San Paolo. 2. All deposit data are as of June 30, 1981. 3. The Los Angeles banking market is approximated by the Los The management and policies of San Paolo are deter- Angeles RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

11A Federal Reserve Bulletin • December 1982 served are consistent with approval of the applica- acquisition of Bank, Applicant would control the 35th tions. Accordingly, the Board has determined that largest bank in Ohio and would hold 0.48 percent of consummation of the transaction would be in the the total commercial deposits in the state. public interest and that the applications should be Bank is the 5th largest of 41 banking organizations in approved. the relevant banking market and holds approximately Based upon the foregoing, including all of the facts 4.25 percent of total deposits in commercial banks in of record and the commitments made by Applicants, the market.3 The proposed transaction is essentially a the Board has determined that the applications should corporate reorganization, consummation of which be and hereby are approved. The transaction shall not would not result in any adverse effects upon competibe consummated before the thirtieth day following the tion or in an increase in the concentration of banking effective date of this Order, or later than three months resources in any relevant market. Accordingly, the after the effective date of this Order, unless such Board concludes that competitive considerations are period is extended for good cause by the Board or by consistent with approval. the Federal Reserve Bank of San Francisco, under Applicant proposes to become a bank holding comdelegated authority. pany through the purchase of all of the voting shares of By order of the Board of Governors, effective Bank for $28 million. The source of funds for the November 29, 1982. purchase includes $7 million in bank borrowings, $17 million from the sale of Applicant's common stock, Voting for this action: Chairman Volcker and Governors and $4 million from the sale of Applicant's preferred Martin, Partee, Teeters, and Gramley. Absent and not vot- stock. All of Applicant's preferred stock would be ing: Governors Wallich and Rice. purchased by a subsidiary of Baldwin-United Corporation, Cincinnati, Ohio ("Baldwin"), a diversified fi- (Signed) JAMES MCAFEE, nancial conglomerate engaged in various nonbanking [SEAL] Associate Secretary of the Board. activities.4 The preferred stock, which is nonvoting, would pay a cumulative annual dividend of 14.5 percent. Baldwin's perferred stock investment would United Midwest Bancshares, Inc., represent approximately 19 percent of Applicant's Cincinnati, Ohio total equity. Applicant's common stock will be purchased by a Order Approving Formation of a Bank Holding number of individuals and companies. Four of these Company companies ("Investors") will obtain funds to purchase Applicant's voting common stock5 through an invest- United Midwest Bancshares, Inc., Cincinnati, Ohio, ment by Baldwin of $2.5 million in the nonvoting has applied for the Board's approval under section preferred stock of each of the Investors. In each case, 3(a)(1) of the Bank Holding Company Act (12 U.S.C. Baldwin's preferred stock investment would represent § 1842(a)(1)), to form a bank holding company by less than 25 percent of each Investor's total equity.6 acquiring 100 percent of the voting shares of Southern The preferred stock, which must be redeemed by each Ohio Bank, Cincinnati, Ohio ("Bank"). of the investor companies at the expiration of fifteen Notice of the application, affording opportunity for years, would pay a cumulative annual dividend of 15 interested persons to submit comments and views, has percent. The Investors could redeem the preferred been given in accordance with section 3(b) of the act. stock at any time. The time for filing comments and views has expired, By order dated October 14, 1982, the Board denied a and the Board has considered the application with all previous application by Applicant to acquire Bank. In comments received in light of the factors set forth in denying that application the Board found that the debt section 3(c) of the act (12 U.S.C. § 1842(c)).1 servicing requirements and substantial arrearage in Applicant, a nonoperating Ohio corporation with no subsidiaries, was organized for the purpose of becoming a bank holding company by acquiring Bank, which 3. The relevant banking market is approximated by the Cincinnati holds deposits of approximately $209.6 million.2 Upon Ranally Metro Area. Market data are as of June 30, 1981. 4. Baldwin, which became a bank holding company as a result of the 1970 Amendments to the act, divested its banking subsidiaries in 1. The Board has received an objection to the application from December 31, 1980. AmeriTrust Corporation, Cleveland, Ohio ("AmeriTrust"). The 5. The Investors together would control approximately 74 percent Board has also received thirteen comments in support of the proposed of Applicant's common shares. Two of the investors would each acquisition of Bank by Applicant from various business, community, acquire 16 percent of Applicant's voting shares. The remaining two and civic groups in the Cincinnati area, including a letter from the investors would each acquire 21 percent. Mayor of Cincinnati. 6. Specifically, Baldwin's equity share in the Investors would be 2. Deposit data are as of March 31, 1982. 22.6, 17.4, 24.6, and 5.4 percent, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 775 preferred stock dividends did not allow Applicant of $14 million, if aggregated, would equal 67 percent of sufficient financial flexibility to serve as a source of Applicant's total equity, AmeriTrust asserts that Baldstrength to its subsidiary Bank in the future. In addi- win's total investment in Applicant would violate the tion, the previous proposal involved an investment by Board's Policy Statement. Baldwin in non-voting preferred stock of Applicant, In the Board's judgment, Baldwin's purchase of representing 67 percent of Applicant's total equity. Investor's preferred stock is not equivalent to an The Board expressed concern that this investment was indirect investment in Applicant by Baldwin. The inconsistent with the Board's July 8, 1982, Policy purpose of Baldwin's investment in Investors is to Statement on non-voting equity investments facilitate their purchase of Applicant's stock, and (12 CFR § 225.143) ("Policy Statement"), and that the there is no evidence in the record to show that the size and structure of Baldwin's investment could give Investors are acting for or at the behest of Baldwin or Baldwin the ability to exercise a controlling influence are controlled by Baldwin, or that Baldwin has asover Applicant within the meaning of the act. sumed the economic risk of gain or loss in connection The Board believes that Applicant's revised propos- with the Investors' purchase of Applicant's common al addresses the concerns raised by the Board in its shares. The Investors are not related to one another consideration of Applicant's initial application. Specif- through common ownership or control or by manageically, Applicant's acquisition debt will be reduced by ment interlocks. Each is an existing, independent $8 million and its total capital increased by $2 million. business entity, which has independently elected to In addition, the purchase price of Bank has been make an investment in Applicant. There are no agreereduced by $2 million. In view of the restructuring of ments or understandings between any of the Investors the proposal, the Board's judgment is that Applicant and Baldwin as to the voting or disposition of the will have sufficient financial resources to service its Investors' shares of Applicant or with respect to any debt and the preferred stock dividends and serve as a other matter involving Applicant or its management source of financial strength to its subsidiary bank in and policies. The dividend on Baldwin's investment in the future. Thus, the financial and managerial re- the preferred stock of the Investors is not linked in any sources of Applicant and Bank are considered general- way to the earnings of Applicant or Bank, and the ly satisfactory and their future prospects appear favor- Investors have the right to redeem Baldwin's preferred able. stock at any time with no preference based on Appli- Baldwin's preferred stock investment in Applicant cant's or Bank's performance. There is no requireis well below the 25 percent guideline mentioned in the ment that Baldwin be bought out upon a sale by an Board's Policy Statement and specified by the Board Investor of its common stock in Applicant or upon a in prior cases as an acceptable level for non-voting liquidation of Applicant. In light of the foregoing, the equity investments.7 In addition, Applicant's Articles Board does not believe that Baldwin's interest in the of Incorporation have been modified to eliminate those Investors should be aggregated with Baldwin's direct provisions that the Board previously determined interest in Applicant's preferred stock for purposes of would provide Baldwin with a number of rights that determining Baldwin's total equity interest in Appliare otherwise only available through the ownership of cant under the Policy Statement.8 voting shares. Similarly, an agreement with Appli- Applicant does not propose to make any specific cant's shareholders contained in the initial application, changes in the services currently provided by Bank. In which would have given Baldwin the ability to affect this connection, the Board has received comments the disposition of control of Applicant, has been from a number of Cincinnati groups indicating their eliminated. belief that local ownership of Bank will enhance its AmeriTrust contends that Baldwin's investment of ability to serve the banking needs of the community. $2.5 million in the non-voting preferred stock of each The Board believes that considerations relating to the of the Investors amounts to an indirect investment by Baldwin in Applicant. On this basis, it contends that 8. The Board does not view Baldwin's investment in each of the Baldwin's investment in Applicant has actually in- Investors as providing the "formalized structure" or common control creased from $10 million in the previous application to that would make the Investors an association or company under the $14 million in this application. Because an investment act. Letter, dated September 13, 1977, from the Secretary of the Board to John P. Roemer, affirmed sub nom Central Bank v. Board of Governors, No. 77-193) (D. C. Cir. Feb. 1, 1979); "WISCUB, Inc.", 64 FEDERAL RESERVE BULLETIN 40 (1978) and 65 FEDERAL RESERVE 7. See "Valley View Bancshares" 61 FEDERAL RESERVE BULLE- BULLETIN 773 (1979); Savings BankShares Inc., 65 FEDERAL RE- TIN 676 (1975); "Security Bancorp, Inc.", 66 FEDERAL RESERVE SERVE BULLETIN 767 (1979); SYB Corporation, 63 FEDERAL RESERVE BULLETIN 977 (1980); "Panhandle Aviation, Inc.", Board Order, BULLETIN 587 (1977); Cubanc Corporation, 62 FEDERAL RESERVE December 23, 1980. See also letter from William W. Wiles, Secretary BULLETIN 792 (1976); and CU Bank Shares, Inc., 62 FEDERAL of the Board, to J. A. Maurer, President, Security Corp., Duncan, RESERVE BULLETIN 364 (1976). Letter of November 17, 1978, from Oklahoma, June 23, 1982. the Secretary of the Board to William C. Beaman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 Federal Reserve Bulletin • December 1982 convenience and needs of the community to be served application and all comments received in light of the are consistent with approval. Accordingly, the Board public interest factors set forth in section 4(c)(8) of the has determined that consummation of the transaction act. would be consistent with the public interest and that Applicant, with consolidated assets of $120.1 bilthe application should be approved. lion, is the largest banking organization in New York On the basis of the record, the application is ap- and the second largest in the U.S. and controls three proved for the reasons summarized above. The trans- subsidiary banks—two in New York and one in South action shall not be made before the thirtieth calendar Dakota—with aggregate deposits of $74.5 billion.1 day following the effective date of this Order or later Applicant has recently received approval to establish a than three months after the effective date of this de novo bank in Delaware. Applicant, directly and Order, unless such period is extended for good cause through certain of its subsidiaries, engages in a broad by the Board or by the Federal Reserve Bank of range of permissible banking-related activities Cleveland, acting pursuant to delegated authority. throughout the United States. By order of the Board of Governors, effective The Board recently approved applications by J. P. November 29, 1982. Morgan & Co. Incorporated, New York, New York ("Morgan"), and Bankers Trust New York Corpora- Voting for this action: Chairman Volcker and Governors tion, New York, New York ("Bankers"), each a bank Martin, Partee, Teeters, and Gramley. Absent and not vot- holding company within the meaning of the act, to ing: Governors Wallich and Rice. engage in FCM activities.2 Applicant's proposal generally parallels the applications submitted by Morgan (Signed) JAMES MCAFEE, and Bankers, and the characteristics of Morgan and [SEAL] Associate Secretary of the Board. Bankers on which the Board relied in considering those applications generally are shared by Applicant. Accordingly, the Board considers it appropriate to examine Applicant's proposal within the same frame- Orders Under Section 4 of the Bank Holding work the Board used to consider the applications of Company Act Morgan and Bankers. Citicorp, New York, New York Closely Related to Banking Order Conditionally Approving Application to In order to approve an application submitted pursuant Engage in Certain Futures Commission Merchant to section 4(c)(8) of the act, the Board is first required Activities to determine that the proposed activity is closely related to banking or managing or controlling banks. In Citicorp, New York, New York, a bank holding com- approving the applications of Morgan and Bankers, pany within the meaning of the Bank Holding Compa- the Board determined that the proposed FCM activiny Act of 1956, as amended (12 U.S.C. § 1841 et seq.), ties with respect to the contracts involved in the has applied for the Board's approval, under section applications were closely related to banking.3 Upon 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and section consideration of all the facts of record, the Board has 225.4(b)(2) of the Board's Regulation Y (12 CFR determined, for the reasons explained below, that with § 225.4(b)(2)), to engage through its subsidiary, Citi- one exception CFC's proposed activities as an FCM, corp Futures Corporation, New York, New York with respect to the contracts involved in this applica- ("CFC"), in acting as a futures commission merchant tion, would also be closely related to banking. (an "FCM") for nonaffiliated persons, in the execution and clearance of certain futures contracts on Bullion and Foreign Exchange. In the Board's Ormajor commodity exchanges. Such contracts would der approving the Morgan and Bankers applications, cover bullion, foreign exchange, U.S. Government it was noted that the Board had determined previsecurities, and negotiable money market instruments. ously that FCM activities or their equivalent, with Notice of the application, affording interested per- respect to bullion and foreign exchange, were closesons an opportunity to submit comments and views on ly related to banking. The Board made these earlier the relation of the proposed activity to banking and on the balance of the public interest factors regarding the 1. All banking data are as of June 30, 1982. application has been duly published (47 Federal Regis- 2. "J.P. Morgan & Co. Incorporated", 68 FEDERAL RESERVE ter 40486 (1982)). The time for filing comments and BULLETIN 514 (1982); "Bankers Trust New York Corporation", 68 FEDERAL RESERVE BULLETIN 651 (1982). views has expired, and the Board has considered the 3. Id. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 55 determinations in connection with applications sub- securities for its own account.6 Also, Citibank is a mitted by Republic New York Corporation, New founding member of the Association of Primary York, New York,4 and Standard and Chartered Dealers, and has long been a major participant, for Banking Group Ltd., London, England.5 Conse- the account of customers as well as its own account, quently, the Board now has determined on four in the U.S. Government securities cash market. occasions that acting as an FCM for bullion or Applicant's experience in these activities has proforeign exchange is closely related to banking. Upon vided it with useful expertise in areas that are examination of the record, it appears that Appli- operationally or functionally similar to FCM activicant's situation is substantially similar to those ties for nonaffiliated persons in U.S. bonds, Treapresented previously. In particular, Citicorp is a sury bills, and GNMA securities. Accordingly, the leading dealer in both the spot and forward bullion Board concludes that the proposed FCM activities markets; it offers bullion deposits and loans, and is for these instruments would be closely related to the largest privately owned storer of bullion in the banking. United States. Thus, FCM activities in bullion on The Board has also determined, in the circumthe part of CFC would appear to complement Citi- stances of this case, that CFC's proposed activities corp's other activities in the bullion market. In as an FCM with respect to futures contracts in addition, Citibank, N.A., Applicant's principal negotiable money market instruments would be banking subsidiary, is a leading participant in the closely related to banking. Citibank has been an cash and forward markets for foreign exchange, active participant in the cash markets for various with total profits from this activity of $265 million money market instruments, and this experience has during 1981. Since Citicorp/Citibank already trade in provided Applicant with useful expertise in trading the cash and forward markets in bullion and foreign the underlying instruments involved in these futures exchange for their customers, acting as an FCM in contracts. Like futures contracts in U.S. Governfutures markets for the same commodities would ment securities, futures contracts in these instruappear to be an "integral adjunct" to these present ments are used in large part to hedge against interservices. Finally, it is reasonable to assume that est-rate risks associated with holding and trading market participants for whom Citicorp/Citibank financial assets and liabilities. There appears to be trade would regard futures contracts in bullion and little basis for distinguishing between the operationforeign exchange as the functional equivalent of al or functional characteristics of FCM activities forward contracts for some purposes. Accordingly, with respect to contracts in these money market the proposed activity could be considered fundainstruments and those FCM activities with respect mentally a substitute for other services Applicant to contracts in Government securities. already provides. On this basis, the Board concludes that Applicant's proposal to act as an FCM Pit Arbitrage. Citicorp has proposed one new activifor bullion and foreign exchange is closely related to ty, pit arbitrage, that was not included in the applibanking. cations of Morgan and Bankers, and has not previously been considered by the Board in the context of Government Securities and Money Market Instru- section 4(c)(8). Pit arbitrage involves the actions of ments. Applicant's proposal also involves the exe- floor traders on commodities exchanges in taking cution and clearance of futures contracts covering advantage of temporary price differentials between U.S. bonds and Treasury bills, GNMA securities, futures contracts. Futures market spread positions and negotiable money market instruments, particu- are taken in anticipation of favorable price movelarly domestic and Eurodollar CDs. ments which will subsequently enable traders to As with the Morgan and Bankers applications, the close out positions at a profit. In view of the Board has examined the portion of the record of this discussion below, however, it is unnecessary for the proposal that concerns FCM activities for U.S. Board to determine whether pit arbitrage is closely bonds, Treasury bills, GNMA securities, and nego- related to banking. tiable money market instruments in light of Applicant's experience in related markets for these instru- Incidental Activities. CFC also intends to provide ments. Citibank already trades in futures contracts general research and advice on market conditions covering various U.S. Government and GNMA and trading strategies; client account information 4. "Republic New York Corporation", 63 FEDERAL RESERVE 6. Citicorp has received the Board's approval to transfer certain of BULLETIN 951 (1977). these securities activities from Citibank to a nonbanking subsidiary of 5. "Standard and Chartered Banking Group, Ltd.", 38 Federal Citicorp. "Citicorp Government Securities, Inc.", 68 FEDERAL RE- Register 27552 (1973). SERVE BULLETIN 248 (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 Federal Reserve Bulletin • December 1982 and reconciliation of trades; and communication trading futures contracts involves various types of linkage between clients and the exchange floor in financial risks and potential conflicts of interest, and is connection with its proposed FCM activities. These susceptible to anticompetitive and manipulative pracservices would be offered as part of an integrated tices. The Board noted, however, that Congress has package that would be provided to CFC's custom- addressed those types of possible adverse effects ers. None of these services would be offered sepa- through the passage of the Commodity Exchange Act, rately and none would be provided on a fee basis. as amended,7 and the creation of the Commodity The Board's Regulation Y (12 CFR § 225.4(a)) al- Futures Trading Commission ("CFTC"). The Board lows bank holding companies to engage in activities also noted that the CFTC has promulgated regulations that are incidential to closely related activities. to effectuate the provisions of the Commodity Ex- Incidental activities are those that are necessary to change Act.8 Applicant has chosen to conduct the the performance of closely related activities. (Na- proposed activities through a separately incorporated tional Courier Ass'n v. Board of Governors, 516 subsidiary that would be subject to the Commodity F.2d 1229, 1241 (D.C. Cir. 1975)). It appears that Exchange Act and CFTC regulation. The Board has with the exception of FCM "discount brokers", considered the impact of the applicable statutes and FCMs generally provide these kinds of ancillary regulation in its evaluation of the likelihood that signifservices as an integral part of their overall business. icant adverse effects regarding conflicts of interest, Moreover, it appears that the major corporations unsound banking practices, decreased or unfair comand financial institutions which would make up petition, or undue concentration of resources would CFC's client base regard these services as essential. develop in this case. Thus, the provision of such ancillary services would be necessary to the successful operation of Appli- Conflicts of Interest. Conflicts of interest that could cant's FCM activities. Accordingly, the Board finds be associated with this proposal fall into two broad that the provision of these services would be inci- categories: those arising out of the general business dental to CFC's proposed FCM activities. of engaging in FCM activities, and those arising out of the particular circumstance of an FCM that is a Balance of Public Benefits and Adverse Effects subsidiary of a bank holding company. Rules and regulations promulgated and enforced by the CFTC In order to approve this application, the Board is also and the relevant futures exchanges substantially required to determine that the performance of the reduce the possibility for significant conflicts in the proposed activities by CFC, "can reasonably be ex- first category. In addition, CFC has committed to pected to produce benefits to the public, such as time-stamp each order to the minute upon receipt, greater convenience, increased competition, or gains and to time-stamp the order again at execution. in efficiency, that outweigh possible adverse effects, Moreover, CFC will execute orders in the sequence such as undue concentration of resources, decreased in which they are received, except where the cusor unfair competition, conflicts of interest, or unsound tomer consents to delayed execution. The Board banking practices." (12 U.S.C. § 1843(c)(8)). concludes that the risk of conflicts of interest arising from the general business of an FCM that may result Public Benefits from consummation of the proposal as submitted is not inconsistent with approval. Consummation of the proposal would provide added With respect to the second category of conflicts, convenience to those clients of Applicant that trade in the Board believes that existing statutory and superthe cash, forward, and futures markets for the com- visory safeguards, together with Applicant's intermodities involved in this application. The Board ex- nal control procedures, will substantially reduce the pects that the de novo entry of CFC into the market for possibility of significant adverse effects. For exam- FCM services would increase the level of competition ple, section 23A of the Federal Reserve Act9 would among FCMs already in operation. Accordingly, the Board has concluded that the performance of the proposed activities by CFC can reasonably be expect- 7. 7 U.S.C. §§ 1-24. ed to produce benefits to the public. 8. For example, CFTC regulations require FCMs to keep detailed records on many aspects of FCM activities, such as segregation of funds and investments made on behalf of customers, 17 C.F.R. Adverse Effects §§ 1.20, .25; prescribe protective procedures for such activities as buying and selling contracts of two customers on opposite sides of the same transactions, 17 CFR. § 1.39; and impose minimum financial and In its Orders approving the applications of Morgan and related reporting requirements, 17 CFR §§ 1.10-.18. Bankers, the Board recognized that the activity of 9. 12 U.S.C. § 371c. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 779 require any extension of credit by Citibank to CFC ity for the contractual obligations due the associato be secured by collateral having a value equal to tion by all clearing members. This potential liability 100 percent or more of the extension of credit. In exists through the assessment provisions of certain addition, any loan from Citibank to CFC's custom- clearing association guaranty funds into which all ers would be subject to examination by the Comp- clearing members must contribute. In evaluating troller of the Currency. this element of risk to CFC, the Board has consid- Furthermore, Applicant maintains internal proce- ered the effect of margin requirements and the level dures that generally prohibit disclosure among em- of supervision and regulation imposed on the futures ployees of Applicant and its subsidiaries of confi- trading industry by the CFTC, the exchanges and dential information pertaining to customers, their affiliated clearing associations. Clearing associwhether received from customers or derived from ations, in particular, have established various proceinternal sources. Finally, as discussed below, the dures that reduce the likelihood that this type of circumstances of this application alleviate any sub- liability would arise. stantial concern regarding the possibility of volun- The degree of risk associated with providing FCM tary tying. Thus, there appears to be no significant services as a clearing member on a commodities danger that conflicts associated with the fact that exchange can be increased through the practice of CFC would be a bank holding company subsidiary certain exchanges or clearing associations of requirwill develop under this proposal. ing the parent corporation of a clearing member to also become a member of that exchange or clearing Unsound Banking Practices. An FCM, clearing and association. Applicant has committed that CFC executing contracts for nonaffiliated persons, is gen- shall not, without the prior consent of the Board, erally exposed to several types of financial risks. become a clearing member of any exchange that However, the Board finds that Applicant's compe- imposes such a requirement and has not waived that tence, experience and resources equip it to deal with requirement for Applicant. these risks. Furthermore, the Board believes that In addition, the Board is concerned that the the Commodity Exchange Act and regulations by performance of pit arbitrage services by CFC for its the CFTC and the various commodity exchanges are own account would represent an unsound banking significant factors in ameliorating the general haz- practice. The Board has stated its view that bank ards of the FCM activities proposed in the applica- holding companies or their nonbanking subsidiaries tion.10 that take positions in futures contracts should do so As an FCM for nonaffiliated persons, CFC would to reduce risk exposure and not to speculate.11 be contractually liable for nonperformance by a Clearly, pit arbitrage involves CFC trading for its customer of CFC on each futures contract traded by own account in a speculative manner. In the Board's CFC for that customer. Similarly, in some circum- view, such speculation could pose significant finanstances, CFC could be obligated to meet a margin cial risks for the parent bank holding company. call delivered to a customer of CFC. Applicant and These risks could jeopardize the ability of a bank its subsidiaries appear well prepared to deal with holding company to be a source of strength to its these potential obligations. The risks that a custom- subsidiary banks. In this regard, the Board aper of CFC would default on a contract or fail to meet proved both the applications of Morgan and Bankers a margin call are credit risks of a type Citibank has in express reliance on the fact that the FCMs significant expertise in evaluating. In addition, the involved there would not trade for their own acrecord indicates that CFC would employ a high count.12 degree of credit selectivity in choosing its custom- Applicant argues that by engaging in pit arbitrage, ers, who will include institutional and commercial CFC will contribute to the efficient operation of clients of Citibank. commodity markets, which will benefit market par- CFC would face another type of risk because its ticipants. Although some public benefits may be membership in certain commodity exchange clear- associated with the pit arbitrage, the Board does not ing associations could expose it to contingent liabil- believe such benefits are sufficient to outweigh the significant adverse effects of such an activity. Accordingly, the Board concludes that the adverse 10. Among the provisions the Board has considered in this regard are the CFTC's net capital requirements, 17 C.F.R. §§ 1.17(a), 11. 12 C.F.R. § 225.142 (1982). .17(c)(2), .17(c)(3), .52(a), and the sections of the Commodity Ex- 12. Indeed, the Board recently approved Applicant's proposal to change Act granting the CFTC authority to establish position limits engage in FCM activities abroad on the basis of Applicant's commitand to approve or disapprove daily price movement limits established ment that it would not trade for its own account. "Citibank Overseas by domestic exchanges on futures contracts, 7 U.S.C. §§ 6a, 7a( 12). Investment Corp.", 68 FEDERAL RESERVE BULLETIN 671 (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 Federal Reserve Bulletin • December 1982 effects of pit arbitrage warrant denial of this aspect Board has placed particular reliance on the following of Applicant's proposal. commitments and conditions: On the basis of all the facts of record, including 1. CFC shall not trade for its own account. the limitations noted above, the Board has conclud- 2. The instruments and precious metals upon which ed that the inherent risks of providing FCM services the proposed futures contracts are based are essenfor nonaffiliated persons under the circumstances of tially financial in character and the contracts are of a this proposal are manageable in view of the exper- type that a bank may execute for its own account. tise and resources of Applicant and its subsidiaries, 3. CFC shall have an initial capitalization that is in the commitments entered into by Applicant and substantial excess of that required by CFTC regula- CFC, and the regulatory environment in which the tions, and will maintain fully adequate capitaliza- FCM activities would be conducted. tion. 4. CFC and Citibank have entered into a formal Decreased or Unfair Competition. It is conceivable service agreement that specifices the services that that a commercial bank in Citibank's position could Citibank will supply to CFC. These services include exert pressure on its customers to use the services the assessment of customer credit risk and continuof Citibank's affiliated FCM, or that a borrower ous monitoring of customer positions and the status could believe that its use of an affiliated FCM could of customer margin accounts. result in more favorable credit terms for the borrow- 5. Through its prosposed service agreement with er. As the Board noted in its Order approving the Citibank, CFC will be able to assess customer credit Morgan and Bankers applications, compulsory tying risks, and will take such assessments into considerarrangements are prohibited by the act, and volunation in establishing appropriate position limits for tary tying can take place only when a firm possesses each customer, both with respect to each type of significant market power.13 However, as was the contract and with respect to the customer's aggrecase with Bankers and Morgan, it appears that gate position for all contracts. Applicant lacks the requisite market power for vol- 6. CFC shall not, without the prior consent of the untary tying to .occur, in view of the substantial Board, become a clearing member of any exchange competition among FCMs and in commercial lendwhose rules require the parent corporation of a ing. In addition, the Board notes that it is Appliclearing member to also become a clearing member, cant's corporate policy to explicitly instruct all unless the requirement is waived with respect to employees to sell services on the basis of the Applicant. services' own merits and to avoid any sales method 7. CFC has committed that it will, in addition to which could give a customer the impression that the time-stamping orders of all customers to the nearest purchase of one service necessarily entails the purminute, execute all orders, to the extent consistent chase of services offered by an affiliate organization. with customers' specifications, in strictly chrono- In addition, Applicant has committed that CFC will logical sequence, and that it will execute all orders advise each customer in writing that doing business with reasonable promptness with due regard to with CFC will not in any way affect any provision of market conditions. credit to that customer from Citibank or any other 8. Applicant and its subsidiaries have demonstrated subsidiary of Applicant. expertise and established capability in the cash, forward, or futures markets for each of the contracts involved. Conclusion 9. Applicant will require CFC to advise each of its customers in writing that doing business with CFC On the basis of all the facts of record, including the will not in any way affect any provision of credit to conditions mentioned above, the Board has deterthat customer by Citibank or any other subsidiary of mined that in the circumstances of this case, the Applicant. provision by CFC of the proposed FCM services to 10. Applicant is adequately capitalized to engage in nonaffiliated persons would not result in decreased or additional nonbanking activities. unfair competition, conflicts of interests, unsound 11. CFC will not extend credit to customers for the banking practices, or undue concentration of repurpose of meeting initial or maintenance margin sources in either commercial banking or the market for required of customers, subject to the limited excep- FCM services. In considering this application, the tion of posting margin on behalf of customers in advance of prompt reimbursement. Based upon the foregoing and other considerations 13. "Citicorp" (Citicorp Person-to-Person Financial Center of reflected in the record, the Board has determined that Connecticut, Inc.) 67 FEDERAL RESERVE BULLETIN 443, 446 (1981). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 781 the public benefits associated with consummation of that have been found by the Board to be closely this proposal can reasonably be expected to outweigh related to banking (12 CFR § 225.4(a)(4)). possible adverse effects, and that the balance of the Notice of the applications, affording opportunity for public interest factors, which the Board is required to interested persons to submit comments and views, has consider under section 4(c)(8) of the act, is favorable. been given in accordance with section 3(b) of the act. Accordingly, the application is hereby approved. The time for filing comments and views has expired This determination is subject to the conditions set and the Board has considered the applications and all forth in the Board's Order and section 225.4(c) of comments received in light of the factors set forth in Regulation Y and the Board's authority to require such section 4(c)(8) of the act. modification or termination of the activities of a hold- Midlantic controls seven banks with aggregate deing company or any of its subsidiaries as the Board posits of about $3.2 billion and is the second largest finds necessary to assure compliance with the provi- bank holding company in New Jersey.1 Through its sions and purposes of the act and the Board's regula- nonbanking subsidiaries, Midlantic is engaged in the tions and orders issued thereunder, or to prevent activities of mortgage banking, equipment leasing, evasion thereof. factoring, and holding overseas investments. Midlan- The proposed activities shall not commence later tic also engages in the activity of providing trust than three months after the effective date of this services through its subsidiary banks. Midlantic man- Order, unless such period is extended for good cause ages $1.4 billion in trust assets through its lead bank. by the Board or by the Federal Reserve Bank of New Florida Coast controls three banks with aggregate York. deposits of $358.9 million and is the twentieth largest By order of the Board of Governors, effective bank holding company in Florida. Florida Coast also November 30, 1982. engages in the activity of providing trust services through its subsidiary banks. Florida Coast manages Voting for this action: Chairman Volcker and Governors less than $100 million in trust assets through its lead Martin, Partee, Teeters, and Gramley. Absent and not vot- bank, which represents less than 2 percent of the trust ing: Governors Wallich and Rice. assets administered by banking organizations in the Miami-Fort Lauderdale market.2 Florida Coast would (Signed) JAMES MCAFEE, transfer the managed assets of its lead bank to Trust [SEAL] Associate Secretary of the Board. Company within one year of consummation of the proposal. Florida Coast and Midlantic currently provide trust services in the banking markets in Florida and New Florida Coast Banks, Inc., Jersey in which their subsidiary banks operate. This Pompano Beach, Florida proposal contemplates the provisions of trust services by Trust Company in the Miami-Fort Lauderdale Midlantic Banks, Inc., market, where Florida Coast currently conducts its Edison, New Jersey trust operations. Midlantic does not provide trust services in that market or in any banking market where Order Approving Acquisition of Florida Coast Florida Coast operates. The effect of consummation of Midlantic Trust Company, N.A. this proposal, therefore, would be the substitution of Trust Company for Florida Coast in the relevant Florida Coast Banks, Inc., Pompano Beach, Florida markets and no existing competition would be elimi- ("Florida Coast"), and Midlantic Banks, Inc., Edison, nated. New Jersey ("Midlantic"), both bank holding compa- It also appears that consummation of this proposal nies within the meaning of the Bank Holding Com- would not have a substantial adverse effect on potenpany Act (12 U.S.C. § 1841 et seq.), have applied for tial competition. In this regard, the Board does not the Board's approval, under section 4(c)(8) of that act consider Florida Coast to be a likely entrant into the and section 225.4(b) of the Board's Regulation Y New Jersey markets served by Midlantic, given Flori- (12 CFR § 225.4(b)), to acquire, through a joint ven- da Coast's relatively small size, and the location and ture to be known as Midlantic/Florida Coast Holdings, nature of its customer base. Edison, New Jersey ("Holdings"), Florida Coast Midlantic Trust Company, N.A., Lighthouse Point, Florida ("Trust Company"), a de novo trust company. Holdings will not engage in any activity and will be 1. Banking data for Midlantic and Florida Coast are as of June 30, utilized only to hold shares of Trust Company. Trust 1982. 2. The Miami-Fort Lauderdale market consists of Dade and Company will engage in the functions and activities Broward Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 Federal Reserve Bulletin • December 1982 While Midlantic might be considered a more likely This determination is subject to the conditions set entrant into the Florida markets served by Florida forth in section 225.4(c) of Regulation Y and to the Coast, its loss as a potential entrant cannot be consid- Board's authority to require such modification or ered significant within the context of the Miami-Fort termination of the activities of a bank holding compa- Lauderdale market. The Miami-Fort Lauderdale mar- ny or its subsidiaries as the Board finds necessary to ket is not concentrated. Currently, 39 banking organi- assure compliance with the provisions and purposes of zations offer trust services in that market and adminis- the act and the Board's regulations and orders issued ter $7.9 billion in trust assets. There are also numerous thereunder or to prevent evasions of them. potential entrants into the market since barriers to The transaction shall not be made later than three entry into the trust business are low. Moreover, the months after the effective date of this Order, unless Board regards it unlikely that Midlantic would enter such period is extended for good cause by the Board the Miami-Fort Lauderdale market de novo absent this or by the Federal Reserve Banks of New York or joint venture. Midlantic has stated that it has little Atlanta. name recognition in Florida and would have difficul- By order of the Board of Governors, effective ties entering that market in any significant fashion. November 2, 1982. The loss of Midlantic as a potential entrant, therefore, would have little effect on potential competition in the Voting for this action: Chairman Volcker and Governors market. Accordingly, the Board concludes that con- Martin, Wallich, Partee, Teeters, Rice, and Gramley. summation of the proposed joint venture would not adversely affect potential competition in the relevant (Signed) JAMES MCAFEE, market. [SEAL] Associate Secretary of the Board. Consummation of this proposal may be expected to increase competition in the Miami-Fort Lauderdale market and increase the convenience of the communi- Hongkong and Shanghai Banking Corporation, ties served. The combination of Midlantic's expertise Hong Kong in the provision of trust services with Florida Coast's knowledge of the relevant market is likely to result in Kellett, N.V., an institution capable of competing for trust services Curacao, Netherlands Antilles with the large banking organizations in the relevant market. The proposal may also provide greater con- HSBC Holdings, B.V., venience to Midlantic's trust customers who retire to Amsterdam, The Netherlands Florida. There is no evidence in the record to indicate that Marine Midland Banks, Inc., consummation of the proposal would result in undue Buffalo, New York concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking prac- Order Approving Acquisition of Wardley Marine tices, or other adverse effects on the public interest.3 International Investment Management Ltd. and Accordingly, the Board concludes that the balance of Commencement of Investment Advisory Activities public interest factors that it must consider under section 4(c)(8) of the act favors approval. In addition, The Hongkong and Shanghai Banking Corporation the financial and managerial resources and future ("HSBC"), Hong Kong; Kellett, N.V., Curacao, prospects of Florida Coast, Midlantic, and Trust Com- Netherlands Antilles; HSBC Holdings, B.V. ("Holdpany are considered consistent with approval of the ings"), Amsterdam, The Netherlands; and Marine applications and the Board has determined that the Midland Banks, Inc. ("MMBI"), Buffalo, New York applications should be approved. (collectively referred to as "Applicants"), bank holding companies within the meaning of the Bank Holding Company Act, have applied for the Board's approval under section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) 3. In Lewis v. BT Investment Managers, Inc., 447 U.S. 27 (1980), and section 225.4(b)(1) of the Board's Regulation Y the Supreme Court held a provision of Florida law (Fla. Stat. Ann. (12 CFR § 225.4(b)(1)), to engage de novo in invest- § 658.29 (West 1981 Supp.)) that generally prohibited an out-of-state bank or bank holding company from acquiring a trust company or ment advisory activities through a New York office of investment advisory company in Florida to be unconstitutional at least Wardley Marine International Investment Manageinsofar as it related to the acquisition of an investment advisory ment, Ltd. ("Wardley Marine"), London, England. company. The rationale of that decision is directly applicable to the trust company prohibitions of section 658.29. Accordingly, the Board Such activities have been determined by the Board to concludes that section 658.29 does not bar Midlantic's participation in be closely related to banking (12 CFR § 225.4(a)(5)). this proposal. In this regard, the state of Florida has not objected on the basis of this statute to previous applications of this type. MMBI has also applied for the Board's approval under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 783 section 4(c)(13) of the Act (12 U.S.C. § 1843(c)(13» Regulation K. Applicants have applied for approval of and section 211.5(c)(2) of the Board's Regulation K Wardley Marine's U.S. activities under the appropri- (12 CFR § 211.5(c)(2)) to acquire 50 percent of the ate provision of Regulation Y. Inasmuch as all of the voting shares of Wardley Marine. HSBC will indirect- foreign and domestic activities of Wardley Marine are ly hold the remaining 50 percent of the shares of permissible for bank holding companies and could be Wardley Marine through various foreign subsidiaries. conducted by separate subsidiaries, and in the absence Notice of the applications, affording opportunity for of any evidence of adverse effects resulting from the interested persons to submit comments and views on structure of the transaction, the Board concludes that the public interest factors has been duly published (47 MMBI may engage in permissible nonbanking activi- Federal Register 34040 (1982)). The time for filing ties in the United States under section 4(c)(8) through comments and views has expired and the Board has a foreign subsidiary held pursuant to section 4(c)(13) of considered the applications and all comments received the act and Regulation K.2 This determination is in light of the standards set forth in sections 4(c)(8) and subject to the condition that HSBC and MMBI receive (13) of the act. the prior approval of the Board before Wardley Marine HSBC, a bank organized under the laws of Hong engages in any additional activities in the United Kong, is the 31st largest banking organization in the States. world with total assets of approximately $52.3 billion.1 With respect to its New York activities, Wardley HSBC engages in a broad range of financial and Marine will engage in investment advisory activities commercial services directly and indirectly through including offering portfolio investment advice to indiover 900 offices worldwide. Through Kellett and Hold- viduals, corporations, governmental entities and other ings, HSBC owns 51 percent of the shares of MMBI, institutions on a discretionary and nondiscretionary which is the 14th largest commercial banking organiza- basis. In order to approve this application, the Board tion in the United States with total assets of $18.8 must find that Applicants' performance of these activibillion. MMBI, through its subsidiary bank, offers a ties through Wardley Marine "can reasonably be full range of banking and trust services from nearly 300 expected to produce benefits to the public, such as offices. MMBI also engages in commercial lending, greater convenience, increased competition, or gains leasing, and credit-related insurance underwriting ac- in efficiency, that outweigh possible adverse effects, tivities under section 4(c)(8) of the act. such as undue concentration of resources, decreased Wardley Marine, a newly-formed company orga- or unfair competition, conflicts of interests or unsound nized under the laws of the United Kingdom, will olfer banking practices." (12 U.S.C. § 1843(c)(8)). The investment advisory services worldwide. Under sec- Board notes that Wardley Marine will offer the advisotion 211.5(d)(8) of Regulation K, a bank holding com- ry services through a de novo office serving the entire pany such as MMBI may invest in a foreign company United States. Accordingly, approval of the applicathat engages in providing investment, financial or tions would not result in any adverse effects on advisory services if the foreign company does no existing or potential competition and would provide business in the United States except as an incident to the public with an additional source of investment its international business. advice. In addition, there is no evidence in the record Wardley Marine proposes to establish an office in to indicate that approval of this proposal would result New York, New York, from which it will offer invest- in any other adverse effects, such as undue concentrament advisory services permissible under Regulation tion of resources, unfair competition, conflicts of Y for domestic bank holding companies. Upon the interests, or unsound banking practices. establishment of the New York office, Wardley Ma- Based upon the foregoing and other considerations rine would be engaged in activities in the United States reflected in the record, the Board has determined that that are not incidental to its foreign business within the the balance of public interest factors that the Board is meaning of Regulation K. However, the Board in required to consider under section 4(c)(8) is favorable. other contexts has determined that a bank holding In addition, the Board concludes that the acquisition company subsidiary may engage in activities on the by MMBI of Wardley Marine is in the public interest basis of more than one provision of the act, (12 CFR and not at variance with the purposes of the act. § 225.123(b)). Accordingly, the applications are hereby approved. In this case, neither HSBC nor MMBI proposes to These determinations are subject to the conditions set engage through Wardley Marine in activities in the forth in section 225.4(c) of Regulation Y and section United States on the basis of exemptions provided in 2. Because Wardley Marine is controlled by HSBC, an affiliate of MMBI, it is also considered a subsidiary of MMBI for purposes of 1. Data are as of December 31, 1981. Regulation K (12 C.F.R. § 211.2(p)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 Federal Reserve Bulletin • December 1982 211.5(b) of Regulation K to require termination or such based upon approval it received on May 21, 1981, from modification of the activities of a holding company or the Federal Reserve Bank of San Francisco acting any of its subsidiaries as the Board finds necessary to under delegated authority. Because of a misinterpretaassure compliance with the provisions of the act and tion of the scope of the Board's data processing the Board's regulations and orders issued thereunder regulation in effect on that date, one aspect of the or to prevent evasion thereof. activities commenced by Applicant exceeded those The proposed investment by MMBI and the pro- then permissible for a bank holding company. When posed activities of Applicants shall commence not Applicant was advised of the Board's position, Applilater than three months after the effective date of this cant immediately ceased the activity in question. Order, unless such period is extended for good cause Upon approval by the Board of an amendment to by the Board or by the Federal Reserve Bank of New Regulation Y expanding the scope of permissible data York, pursuant to authority hereby delegated. processing activities to include the activity in ques- By order of the Board of Governors, effective tion, (47 Federal Register 37368 (1982)), Applicant November 18, 1982. submitted this application. Section 4(c)(8) of the act provides that the Board Voting for this action: Vice Chairman Martin and Gover- may approve a bank holding company's application to nors Partee, Teeters, Rice, and Gramley. Absent and not acquire a nonbanking company or engage in a nonvoting: Chairman Volcker and Governor Wallich. banking activity only after the Board has determined that performance of the proposed activity by a non- (Signed) WILLIAM W. WILES, banking subsidiary of a bank holding company can [SEAL] Secretary of the Board. reasonably be expected to provide benefits to the public such as greater convenience, increased competition, or gains in efficiency, that outweigh possible Imperial Bancorp, adverse effects, such as undue concentration of re- Ingle wood, California sources, decreased or unfair competition, conflicts of interests, or unsound banking practices. In acting on Order Approving Data Processing Activities an application under section 4(c)(8) of the act and Regulation Y to engage in activities previously com- Imperial Bancorp, Inglewood, California, a bank holdmenced in a situation where required prior Board ing company within the meaning of the Bank Holding approval was not obtained, the Board applies the same Company Act, has applied for the Board's approval standards that it would apply to an application to under section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) commence such activities initially. In analyzing such and section 225.4(b)(2) of the Board's Regulation Y an application, the Board considers the competitive (12 CFR § 225.4(b)(2)) to recommence the activity of effects of such a proposal both at the time of the providing packaged data processing and transmission commencement of the activities and at the time of the services for banking, financial and economic data for application to recommence such activities. installation on the premises of customers that are In this case, consummation of the proposal will add depository or similar institutions, through its subsidan additional competitor to the market for data prociary, Imperial Automation, Inc., Costa Mesa, Califoressing services because the activities were comnia. Such activities have been determined by the menced by Applicant de novo and this application is to Board to the closely related to banking (12 CFR continue to engage in activities commenced de novo. § 225.4(a)(8)(ii)). Because de novo expansion provides an additional Notice of the application, affording interested persource of competition, the Board views such expansons an opportunity to submit comments and views on sion as being procompetitive. Accordingly, the Board the public interest factors, has been duly published (47 finds that the de novo nature of this proposal repre- Federal Register 38986 (1982)). The time for filing sents a public benefit.2 comments and views has expired, and the application In acting on this application, the Board has considand all comments received have been considered in ered Applicant's actions to conform its operations to light of the public interest factors set forth in section the act. Upon being notified of the Board's position, 4(c)(8) of the act. Applicant promptly ceased the then impermissible Applicant controls one banking subsidiary with total deposits of $1.2 billion.1 By this application, Applicant seeks to resume activities it commenced de novo, 2. "Virginia National Bankshares, Inc.", 66 FEDERAL RESERVE BULLETIN 668, 672 (1980); "BankAmerica Corporation (Decimus Corporation)", 66 FEDERAL RESERVE BULLETIN 511, 514 (1980); "Citicorp (Person-to-Person Financial Center of Connecticut, Inc.)" 1. Deposit data are as of May 31, 1982. 65 FEDERAL RESERVE BULLETIN 507, 510 (1979). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 785 data processing activity and thereafter cooperated Old Colony Co-Operative Bank, fully with Board staff to resolve this matter. In addi- Providence, Rhode Island tion, the Board notes that Applicant took action to conform its operations to the act by filing this applica- Order Approving Retention of De Novo Branch tion. In light of these facts and other information in the record evidencing Applicant's intent to comply with Old Colony Co-Operative Bank, Providence, Rhode the requirements of the act, the Board has determined Island ("Applicant"), a Rhode Island mutual buildingthat the circumstances surrounding the violation do loan association which is a bank holding company not reflect so adversely upon Applicant's management within the meaning of the Bank Holding Company as to warrant denial of the application. Act, has applied for the Board's approval under sec- In its evaluation of the financial resources of Appli- tion 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and cant, the Board has considered the fact that this section 225.4(b)(2) of the Board's Regulation Y application was filed to recommence activities for (12 CFR § 225.4(b)(2)), to continue to engage in the which most of the required capital expenditures have activities of a mutual building-loan association at a already been made and the necessary management branch office in Woonsocket, Rhode Island. Although resources have been put in place based upon the the Board has not added the operation of a Rhode earlier Federal Reserve approval. The Board has also Island mutual building-loan association to the list of considered Applicant's projections that these activi- activities specified in section 225.4(a) of Regulation Y ties will make a positive contribution to its earnings as generally permissible for bank holding companies, and commitments by Applicant that further expendi- the Board has determined by order that the operation tures in connection with these activities are expected of such an institution is closely related to banking in to be minimal. In the context of the specific facts and Rhode Island and approved Applicant's proposals to circumstances of this case, the Board gave particular become a bank holding company and to continue to weight to Applicant's assertion that it would likely lose engage in the activities of a mutual building-loan all or substantially all of its investment in Imperial association in 1972, and to acquire the Mayflower Automation if this application were denied. Savings and Loan Association ("Mayflower"), a With respect to the other factors required to be Rhode Island mutual building-loan association, in considered, the Board finds no evidence in the record 1980.1 indicating that Applicant's data processing activities Notice of the application, affording opportunity for have resulted in, or would result in, any undue concen- interested persons to submit comments, has been duly tration of resources, decreased or unfair competition, published (47 Federal Register 25204 (1982)). The time conflicts of interests, unsound banking practices, or for filing comments and views has expired and the other adverse effects. Board has considered the application and all com- Based upon the foregoing and other considerations ments received in light of the factors set forth in reflected in the record, the Board has determined that section 4(c)(8) of the act. the balance of the public interest factors the Board is Applicant (consolidated assets of $696.5 million), a required to consider under section 4(c)(8) is favorable. state-chartered, FSLIC-insured, mutual building-loan Accordingly, the application is hereby approved. This association, is a one bank holding company by virtue determination is subject to the conditions set forth in of its control of Newport National Bank, Newport, section 225.4(c) of Regulation Y and to the Board's Rhode Island (deposits of $52.7 million).2 As of authority to require such modification or termination June 30, 1981, Applicant was the second largest thrift of the activities of a holding company or any of its institution and the fifth largest commercial banking subsidiaries as the Board finds necessary to assure organization in Rhode Island. compliance with the provisions and purposes of the As noted above, the Board first approved Appli- Act and the Board's regulations and orders issued cant's request to become a bank holding company and thereunder or to prevent evasion thereof. to continue to engage in the activities of a mutual By order of the Board of Governors, effective November 29, 1982. 1. "Old Colony Co-Operative Bank," 58 FEDERAL RESERVE BUL- LETIN 417 (1972); "Old Colony Co-Operative Bank", 66 FEDERAL Voting for this action: Chairman Volcker and Governors RESERVE BULLETIN 665 (1980). Under section 333 of the Garn-St Martin, Partee, Teeters, and Gramley. Absent and not vot- Germain Depository Institutions Act, Applicant is not a "bank" ing: Governors Wallich and Rice. within the meaning of section 2(c) of the Bank Holding Company Act because its accounts are insured by the Federal Savings and Loan Insurance Corporation. (Signed) JAMES MCAFEE, 2. All financial data are as of December 31, 1981, unless otherwise [SEAL] Associate Secretary of the Board. indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin • December 1982 building-loan association in Rhode Island in 1972. This Notwithstanding this general finding, the Board application requests Board approval of Applicant's must also consider the particular facts of this case to retention of a branch office opened de novo on July 10, determine whether the retention of this office can 1972, without the Board's prior approval, in violation reasonably be expected to produce benefits to the of Regulation Y. Upon examination of all the facts of public that outweigh possible adverse effects. Retenthe record and the circumstances of this application, tion of this branch would have no significant effect on the Board's view is that the violation was inadvertent. competition because it is a de novo office. The Board In acting on this application, the Board has taken into views de novo entry as procompetitive and a positive consideration the fact that Applicant, upon becoming public benefit because such entry provides an addiaware of the existence of the violation, immediately tional source of competition in a market.5 consulted the Federal Reserve Bank of Boston to In considering similar applications involving the determine what actions would be necessary to comply affiliation of commercial banks and thrift institutions, with the act. Applicant has initiated a program to the Board has expressed its clear view that serious monitor compliance with the act and the Board's adverse effects may result from tandem operation of regulations to avoid any future violations. In addition, these two types of institutions.6 The Board's concern no other compliance problems have been noted since in these cases is that such an affiliation would result in Applicant opened the de novo branch in 1972. In view a subversion of the purpose of the interest rate differof Applicant's efforts to comply with the act, its ential between commercial banks and thrift instituimplementation of a compliance program, and its tions. In First Financial, the Board stated that it would compliance record since 1972, the Board is persuaded not approve an application proposing the tandem that such a violation is unlikely to recur and that it operation of commercial banks and thrifts. However, does not reflect so adversely on Applicant's manageri- in Heritage Banks, Inc., (66 FEDERAL RESERVE BULal resources as to require denial of this application. LETIN 590 (1980)), the Board did not apply this princi- Under the act, the Board is required to assess the ple and approved the tandem operation of the applipublic interest factors in each section 4(c)(8) applica- cant's commercial banks with a thrift institution. The tion, including an application for a de novo branch of Board found mitigating factors in Heritage Banks an approved subsidiary. In making such an assessment which clearly indicated that the proposal was not a with respect to an application to retain activities where device by the applicant to evade the differential. In necessary prior Board approval was not obtained, the Heritage Banks, the proposed acquisition of the thrift Board applies the same standards that it applies for the was not predicated upon the establishment of a tandem commencement of such activities. relationship with a commercial bank. On the contrary, The Board has previously determined that the oper- the applicant had already received the Board's approvation of a Rhode Island mutual building-loan associa- al of the tandem operation of its commercial banks and tion by a Rhode Island bank holding company is so thrifts and was only seeking Board approval to retain a closely related to banking as to be a proper incident branch office that had been inadvertently opened thereto. In its 1972 approval of Applicant's application without its prior approval. Moreover, the Board cited to become a bank holding company and to continue to the approval of the branch office by the Federal engage in the activities of a mutual building-loan Deposit Insurance Corporation and the appropriate association, the Board determined that, "in view of state authorities and the absence of any protests by the the history of affiliation of mutual thrift associations authorities as factors mitigating any adverse factors and commercial banks in Rhode Island, Applicant's associated with the proposal. Similarly, the Board continuing to engage in the activities of a thrift institu- does not believe that Applicant's proposal is an attion is so closely related to Rhode Island banking as to tempt to undermine the interest rate differential bebe a proper incident thereto."3 The Board reaffirmed cause Applicant had previously received Board apthis determination in 1980.4 Since no evidence has proval to operate its thrift institutions in tandem with been presented to indicate that banking conditions its commercial banks and had inadvertently opened have substantially changed in Rhode Island since the the subject branch office without the Board's prior Board's last consideration of this issue, the Board approval. In addition, this branch office has been confirms its finding that the operation of a mutual approved by the Federal Savings and Loan Insurance building-loan association is so closely related to bank- Corporation and the appropriate Rhode Island authoriing in Rhode Island as to be a proper incident thereto. ties without protest. 3. "Old Colony Co-Operative Bank", 58 FEDERAL RESERVE BUL- 5. "Virginia National Bancshares, Inc.", 66 FEDERAL RESERVE LETIN 417 (1972). BULLETIN 668, 671 (1980). 4. "Old Colony Co-Operative Bank", 66 FEDERAL RESERVE BUL- 6. "First Financial Group of New Hampshire, Inc.", 66 FEDERAL LETIN 665 (1980). RESERVE BULLETIN 594 (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 787 There is no evidence of any other potential adverse the public interest factors set forth in section 4(c)(8) of effects that might be associated with this proposal and the act. based upon the foregoing and other considerations Applicant, a government-owned Swedish commerreflected in the record, the Board has determined that cial bank, is the third largest banking organization in the balance of public interest factors the Board is Sweden, and operates 129 branch offices, with total required to consider under section 4(c)(8) favors ap- assets of 17.7 billion.1 Applicant's worldwide operaproval of Applicant's retention of this particular tions include a banking subsidiary in Luxembourg, branch office. This determination is subject to the interests in banks in London, Hong Kong, and Paris, conditions set forth in section 225.4(c) of Regulation Y and representative offices and finance-related subsidand to the Board's authority to require such modifica- iaries in several countries throughout the world. In the tion or termination of the activities of a holding United States, Applicant has a 25 percent interest in company or any of its subsidiaries as the Board finds American Scandinavian Banking Corporation, an innecessary to assure compliance with the provisions vestment company that is chartered under New York and purposes of the act and the Board's regulations banking law, and that pursuant to section 8(a) of the and orders issued thereunder, or to prevent evasion International Banking Act of 1978 (12 U.S.C. thereof. § 3106(a)) is subject to certain provisions of the Bank By order of the Board of Governors, effective Holding Company Act. November 17, 1982. To approve this application, the Board must find that Applicant's performance of the activities through Voting for this action: Chairman Volcker and Governors PKFIC "can reasonably be expected to produce bene- Martin, Wallich, Partee, Teeters, Rice, and Gramley. fits to the public, such as greater convenience, increased competition, or gains in efficiency, that out- (Signed) JAMES MCAFEE, weigh possible adverse effects, such as undue [SEAL] Associate Secretary of the Board. concentration of resources, decreased or unfair competition, conflicts of interest or unsound banking practices." The Board views de novo entry as procompet- Post-och Kreditbanken, PKbanken, itive and a positive public benefit since such entry Stockholm, Sweden provides an additional source of competition in a market. Although PKFIC will be providing various financing and leasing services to borrowers throughout Order Approving Commercial Finance and Leasing the United States, it expects to concentrate initially on Activities Scandinavian-related borrowers, which it hopes will encourage Scandinavian companies to establish or Post-och Kreditbanken, PKbanken ("Applicant"), expand their operations in the United States. Accord- Stockholm, Sweden, a foreign bank subject to certain ingly the Board views the entry of PKFIC into the provisions of the Bank Holding Company Act has commercial finance and leasing markets as a public applied for the Board's approval under section 4(c)(8) benefit. of the act (12 U.S.C. § 1843(c)(8)) and section There is no evidence in the record to indicate that 225.4(b)(2) of the Board's Regulation Y (12 CFR consummation of the proposal would result in undue § 225.4(b)(2)), to engage de novo through its subsidconcentration of resources, decreased or unfair comiary, PKfinans International Corporation ("PKFIC") petition, conflicts of interests, unsound banking prac- New York, New York, in making or acquiring for its tices, or other adverse effects on the public interest. own account or for the account of others, commercial Accordingly, the Board concludes that the balance of loans and other extensions of credit, leasing real and public interest factors that it must consider under personal property, acting as agent, broker or adviser section 4(c)(8) of the act favors approval of the appliwith respect to such financing and leasing activities, cation and that the application should be approved. and servicing loans and other extensions of credit. This determination is subject to the conditions set Such activities have been determined by the Board to forth in section 225.4(c) of Regulation Y and the be closely related to banking (12 CFR § 225.4(a)(1), Board's authority to require such modification or (3), (6)). termination of the activities of a holding company or Notice of the application, affording opportunity for any of its subsidiaries as the Board finds necessary to interested persons to submit comments and views on assure compliance with the provisions and purposes of the public interest factors, has been duly published (47 Federal Register 39615). The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of 1. All banking data are as of December 31, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 Federal Reserve Bulletin • December 1982 the act and the Board's regulations and orders issued mission to acquire jointly and indirectly through their under the act, or to prevent evasions of the act. subsidiary, N/A Leasing, Inc., New York, New York, These activities shall be commenced not later than 100 percent of the voting shares of Commercial Fundthree months after the effective date of this Order, ing Inc., New York, New York ("CFI"). CFI is unless such period is extended for good cause by the engaged in the activities of leasing capital equipment Board or by the Federal Reserve Bank of New York, and other personal property and acting as an agent, pursuant to delegated authority. broker or advisor in leasing such properties. CFI is By order of the Board of Governors, effective also engaged in extending credit for its own account or November 22, 1982. the account of others to manufacturers of and dealers in equipment secured by the receivables of such Voting for this action: Vice Chairman Martin and Gover- manufacturers and dealers and the servicing of such nors Partee, Teeters, Rice, and Gramley. Absent and not accounts. The Board has determined that these activivoting: Chairman Volcker and Governor Wallich. ties are so closely related to banking or managing or controlling banks as to be a proper incident thereto. (Signed) JAMES MCAFEE, (12 CFR § 225.4(a)(1), (3) and (6)). [SEAL] Associate Secretary of the Board. Notice of the application, affording opportunity for interested persons to submit comments and views has been given (47 Federal Register 36965 (1982)). The Svenska Handelsbanken, time for filing comments and views has expired, and Stockholm, Sweden the Board has considered the application and all comments received in light of the public interest Den norske Creditbank, factors set forth in section 4(c)(8) of the act. Oslo, Norway Svenska is the second largest bank in Sweden and the 92nd largest in the world, with consolidated assets Copenhagen Handelsbank, of $18.6 billion.2 Creditbank is the largest bank in Copenhagen, Denmark Norway and the 213th largest in the world, with consolidated assets of $5.8 billion. Copenhagen is the Kansallis-Osake-Pankki, largest bank in Denmark and the 192nd largest in the Helsinki, Finland world, with consolidated assets of $6.8 billion. KOP is the second largest bank in Finland and the 185th Order Approving Acquisition of Commercial largest in the world, with consolidated assets of $7.0 Funding, Inc. billion. CFI is principally engaged in the leasing of various types of equipment and has assets of $9.9 Svenska Handelsbanken, Stockholm, Sweden million.3 ("Svenska"); Den norske Creditbank, Oslo, Norway This proposal involves the acquisition of a going ("Creditbank"); Copenhagen Handelsbank, Copenha- concern and the Board has considered the effects of gen, Denmark ("Copenhagen"); Kansallis-Osake- the acquisition on existing competition in the relevant Pankki, Helsinki, Finland ("KOP"), (collectively lines of commerce, which are commercial lending and known as "Applicants"), each a foreign bank subject leasing. In its evaluation of the effects of this acquisito certain provisions of the Bank Holding Company tion on existing competition in commercial lending, Act of 1956, as amended,1 have applied for Board's the Board notes that Applicants currently engage in approval, pursuant to section 4(c)(8) of the act commercial lending activities in the United States (12 U.S.C. § 1843(c)(8)), and § 225.4(b)(2) of the through their subsidiary, NABC. NABC's activities, Board's Regulation Y (12 CFR § 225.4(b)(2)), for per- however, are generally limited to providing financial services to foreign affiliates of Applicants' Scandinavian customers and its market share is, therefore, insignificant. CFI proposes to engage in commercial 1. Applicants are subject to the nonbanking prohibitions of the act lending in Delaware, New York, New Jersey, Conby virtue of 12 U.S.C. § 3106(a), which provides that any foreign bank necticut, Pennsylvania, North Carolina and Florida or company controlling a foreign bank that has a branch, agency or and currently has only a de minimis share of the commercial lending company in the United States is subject to certain provisions of the act in the same manner as if it were a bank holding company. Applicants each own a 25 percent interest in the Nordic American Banking Corporation, New York, New York ("NABC"), an investment company chartered pursuant to Article XII of the New York Banking Law. Therefore, they are subject to the act and must 2. Unless otherwise indicated, banking data are of December 31, receive the Board's approval before engaging in the United States in 1981. an activity permitted under section 4(c)(8). 3. Datum is of February 28, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 789 commercial lending market in these states. In view of kets. Further, the Board notes there is no evidence in the small combined market share that would result the record to indicate that consummation of the profrom consummation of this proposal, the Board finds posal would result in any undue concentration of that the acquisition would have no serious adverse resources, conflicts of interests, unsound banking elfects on existing competition in commercial lending. practices, or other adverse effects. Applicants' subsidiary does not engage in leasing Based on the foregoing and certain commitments by activities in the United States and, therefore, consum- Applicants that are reflected in the record, the Board mation of this proposal would not have any effect on has determined that the balance of the public interest existing competition in that line of commerce. Accord- factors that the Board is required to consider under ingly, the Board's judgment is that consummation of section 4(c)(8) is favorable. Accordingly, the applicathis proposal would not have any adverse effects on tion is hereby approved. This determination is subject existing competition in any relevant line of commerce. to the conditions set forth in section 225.4(c) of The Board has also considered the effects of con- Regulation Y, and to the Board's authority to require summation of this proposal on probable future compe- such modification or termination of the activities of a tition in the relevant lines of commerce, particularly in holding company or any of its subsidiaries as the light of the fact that this application involves the use of Board finds necessary to assure compliance with the a joint venture to acquire CFI. provisions and purposes of the act, and the Board's The Board finds that each of the four Applicants has regulations and orders issued thereunder, or to prethe financial and managerial resources to independent- vent evasion thereof. ly enter the commercial leasing and lending markets in The proposed activity shall be commenced not later the United States. However, a review of Applicants' than three months after the effective date of this operations and history of expansion indicates that they Order, unless such period is extended for good cause are unlikely candidates for independent entry into the by the Board or by the Fedeal Reserve Bank of New relevant market.4 In addition, the small size of CFI, York, pursuant to delegated authority. the existence of a number of other potential entrants By order of the Board of Governors, effective into the markets, and the unconcentrated nature of the November 8, 1982. markets indicate that consummation of the proposal would not have any significant adverse effects on Voting for this action: Vice Chairman Martin and Goverprobable future competition. Finally, because this nors Partee, Teeters, and Rice. Absent and not voting: application involves a joint venture of four foreign Chairman Volcker and Governors Wallich, and Gramley. banking organizations, it does not raise questions concerning the undue concentration of economic re- (Signed) JAMES MCAFEE, sources and other adverse effects that ordinarily might [SEAL] Associate Secretary of the Board. result in a joint venture combination of banking and nonbanking institutions.5 Thus, the Board concludes that consummation of the proposal would not have significantly adverse effects on competition in any Order Under Sections 3 and 4 of Bank Holding market. Company Act Consummation of the proposal may be expected to result in public benefits inasmuch as CFI will have The Central Bancorporation, Inc., access to the resources of Applicants and thus, will be Cincinnati, Ohio a stronger competitor in the leasing and lending mar- Order Denying Acquisition of a Bank Holding Company The Central Bancorporation, Inc., Cincinnati, Ohio 4. With the exception of each Applicant's Luxembourg bank subsidiary, Applicants generally do not engage in business outside ("Central"), a bank holding company within the their respective home countries except through joint ventures. In meaning of the Bank Holding Company Act of 1956, as addition, KOP has a 9.5 percent interest in Kajaani Oy, Finland, amended (12 U.S.C. § 1841 et seq.), has applied for which operates an electronic equipment subsidiary in the United States and an 8.1 percent interest in Rauma-Repola Oy, Finland, the Board's approval under section 3(a) of the act which operates a subsidiary in the United States that provides (12 U.S.C. § 1842(a)), to acquire Union Commerce technical assistance to Rauma's woodworking engineering industry. Corporation, Cleveland, Ohio ("UCC"), a bank hold- The ownership of these shares is permissible under section 211.23(f)(5) of Regulation K. ing company, and thereby indirectly acquire The 5. See, e.g., "Deutsche Bank AG", 67 FEDERAL RESERVE BULLE- Union Commerce Bank, Cleveland, Ohio; The South- TIN 449 (1981); "BankAmerica Corporation", 60 FEDERAL RESERVE ern Ohio Bank, Cincinnati, Ohio; First National Bank BULLETIN 517, 519 (1974). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Federal Reserve Bulletin • December 1982 of Nelsonville, Nelsonville, Ohio; and Port Clinton would remain one of the least concentrated states in National Bank, Port Clinton, Ohio.1 the United States. Central has also applied for the Board's approval The Board has indicated on previous occasions that under section 4(c)(8) of the act (12 U.S.C. a bank holding company should serve as a source of § 1843(c)(8)), and section 225.4(b)(2) of the Board's financial and managerial strength to its subsidiary Regulation Y (12 CFR § 225.4(b)(2)), to acquire Union banks and that the Board would closely examine the Commerce Leasing Corporation ("UCC Leasing") condition of an applicant in each case with this considand Union Commerce Management Corporation, both eration in mind. Although the financial and managerial of Cleveland, Ohio ("UCC Management"). UCC resources of Central and its present subsidiaries are Leasing engages in the activity of leasing personal considered satisfactory, consummation of the proposproperty and equipment; UCC Management engages al would result in an organization that does not, in the in the activity of providing investment advice for the Board's judgment, have the financial resources to trust departments of UCC subsidiary banks. These serve as a source of strength to its subsidiary banks. activities have been determined by the Board to be Central's proposal involves the use of a substantial closely related to banking (12 CFR §§ 225.4(a)(5) and amount of debt to finance the acquisition and results in (6)). a substantial reduction in the level of equity capital Notice of receipt of these applications, affording now present in both Central and UCC. opportunity for interested persons to submit com- Central proposes to acquire all of the outstanding ments and views, has been given in accordance with shares of UCC for a total purchase price of approxisections 3 and 4 of the act (47 Federal Register 29709 mately $98.2 million.3 Central's tender offer for UCC's (July 8, 1982)). The time for filing comments and views shares contemplates the purchase of 57.1 percent of has expired, and the Board has considered the applica- UCC's common shares and up to 100 percent of its tion and all comments received, including those of preferred shares for $64.5 million in cash, and the Huntington Bancshares, Inc., Columbus, Ohio ("Hun- exchange of $33.7 million of convertible subordinated tington"), in light of the factors set forth in section 3(c) debentures for UCC's remaining common shares. of the act (12 U.S.C. § 1842(c)), and the considerations Central would fund the cash portion of the purchase specified in section 4(c)(8) of the act (12 U.S.C. price through short-term bank borrowing of $35 mil- § 1843(c)(8)). lion and a preferred stock issue of $29.5 million. The Central, the eighth largest commercial banking orga- total indebtedness to be incurred in the proposed nization in Ohio, controls eight subsidiary banks with transaction is $33.7 million,4 an increase of over 39 aggregate deposits of $1.84 billion, representing 4.1 percent in the indebtedness of the combined organizapercent of deposits in commercial banks in the state.2 tion, excluding the preferred stock which is being used UCC, the eleventh largest commercial banking organi- as a bridge financing vehicle. Central proposes to sell zation in Ohio, controls four subsidiary banks with three of its subsidiary banks and two banking offices of aggregate deposits of $1.1 billion. Upon acquisition of its remaining subsidiary banks and three subsidiary UCC, Central's share of commercial bank deposits in banks of UCC in order to use the proceeds from these Ohio would increase by 2.4 percent and Central would sales to redeem its proposed new issue of preferred become the fourth largest commercial banking organi- stock and to reduce its overall indebtedness. zation in Ohio. Although the size of the organizations As a general proposition, the Board is concerned involved is significant, approval of this proposal will when transactions that rely on a substantial divestiture have little effect on statewide concentration, and Ohio of assets to finance a proposed acquisition, substantially weaken the financial resources of the component and combined organizations. Although Central proposes to reduce its indebtedness by repaying the bank 1. Central commenced a tender offer for the common and preferred loan and redeeming the preferred stock with the proshares of UCC through a subsidiary, CBC Merger, Inc. ("CBC"). ceeds from the sales of subsidiary banks, the reduction Central plans to merge CBC into UCC, with UCC as the surviving is not sufficient, in the Board's judgment, to restore entity. Central will then own 100 percent of UCC. In connection with its tender offer, Central acquired over 5 percent Central's ability to serve as a source of future financial of UCC's voting preferred stock without obtaining the Board's prior strength to its subsidiary banks. Assuming the proapproval. UCC's preferred stock is a separate class of voting securities and, as such, Central's acquisition of more than 5 percent of these shares violated the provisions of sections 2 and 3 of the act. Because of confusion surrounding the definition of a "class of voting securities," the Board does not consider this violation to be an adverse 3. The Board notes that the total purchase price could increase to as factor in its evaluation of this application. However, the Board much as $107 million if the holders of UCC's convertible notes expects that Central will take steps to reduce its interest in UCC's convert the notes into UCC shares and tender the shares. preferred stock to below five percent in order to comply with the act. 4. Central proposes to retire the short-term borrowings of $35 2. Banking data are as of December 31, 1981. million with the proceeds from the sale of The Southern Ohio Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 791 posed sales are consummated, Central's short-term The subsidiary banks of Central and UCC compete acquisition debt repaid, and its preferred stock re- directly with each other in the Cleveland,6Cincinnati,7 deemed as Central has projected in its application, and Athens8 banking markets. In the Cleveland mar- Central's parent company long-term debt to equity ket, UCC is the fifth largest banking organization with ratio would be about 55 percent compared to 17 deposits of $775.3 million,9representing seven percent percent at the present time. This ratio gives full weight of the total deposits in commercial banks in the to all contemplated sales of subsidiary banks and other market. Central is the thirteenth largest organization in assets. In fact, the sales are in various stages of the market with deposits of $104.8 million, representcompleteness and the timing of them is uncertain. ing less than one percent of the total deposits in In an effort to allow for the uncertainty of asset sales commercial banks in the market. Consummation of the and to build up equity through the retention of earn- proposed acquisition would appear to have no signifiings, Applicant has committed not to redeem its pre- cant adverse effects on existing competition in the ferred stock unless, after redemption, its debt to Cleveland market. equity ratio would be no higher than 37 percent. The In the Cincinnati market, Central is the third largest 37 percent ratio is higher than the Board has generally banking organization with deposits of $789 million, approved in the past and is considered unacceptably representing 16.9 percent of the total deposits in high this case. Moreover, the preferred stock commit- commercial banks in the market. UCC ranks fifth in ment further increases the pressures on Central's the market and controls $199 million in deposits, subsidiary banks to provide support to Central to meet representing 4.3 percent of total deposits in commerthe substantial dividend requirements of its preferred cial banks in the market. The acquisition of UCC stock. Although Applicant's projections indicate Cen- would increase Central's market share to 21.2 percent, tral could service its additional debt and meet its and Central would become the second largest banking preferred stock dividend requirements, both strong organization in the market. The deposits held by the earnings in its subsidiary banks and relatively high market's four largest banking organizations would dividend payouts from them would be required. In increase from 67.1 percent to 71.4 percent. view of the historical performance of the banks in- In the Athens market, Central is the third largest volved, the Board regards Applicant's projections as banking organization with $28.2 million in deposits, optimistic. For these reasons, the Board does not representing 16.2 percent of total deposits in commerbelieve that the proposal affords the degree of financial cial banks in the market. UCC is the smallest of the six flexibility that is required for an organization of this banking organizations in the Athens market with desize and importance. posits of $14.4 million, representing 8.3 percent of Consummation of the proposal would also reduce total deposits in commercial banks in the market. The Central's equity capital ratio from 7.2 percent to 5.8 acquisition of UCC by Central would increase Cenpercent, representing, in the Board's view, a signifi- tral's market share of deposits in commercial banks in cant weakening in Central's capital position.5 In this the Athens market to 24.5 percent, and Central would connection, the Board notes that approximately 25 become the second largest banking organization in the percent of Central's equity capital funds subsequent to market. The deposits held by the market's four largest consummation of the proposal would consist of banking organizations would increase from 83.4 per- "goodwill." cent to 91.7 percent. The Board believes that the substantial increase in In the Board's opinion, consummation of the pro- Central's indebtedness, the substantial reduction in its posal would increase the concentration of banking capital, the uncertainties surrounding the proposed resources and would eliminate a significant amount of sale of assets, and the undue strains placed on the existing competition between Central and UCC in the earnings of its subsidiary banks to service acquisition Cincinnati and Athens, Ohio banking markets.10 debt and to meet preferred stock dividend requirements are each an adverse financial consideration in 6. The Cleveland banking market consists of Cuyahoga, Lake, Lorain, and Geauga Counties, the northern third of Summit County, this case. The Board's judgment is that the cumulative the northwest portion of Portage County, most of Medina County, and effect of these and the other considerations with the city of Vermilion. respect to the financial resources of Central is so 7. The Cincinnati banking market includes Hamilton and Clermont Counties and portions of Warren and Butler Counties in Ohio; Borne, adverse as to warrant denial of the application. Campbell, and Kenton Counties in Kentucky, and Dearborn County, Indiana. 8. The Athens banking market is defined as all of Athens County except Troy Township. 9. Market deposits are as of June 30, 1981. 10. The Board concludes that consummation of the proposal will 5. This assumes consummation of all proposed sales of subsidiary have no substantial adverse effects on probable future competition in banks and the redemption of Central's new issue of preferred stock. any relevant market in the state. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 Federal Reserve Bulletin • December 1982 In order to eliminate the anticompetitive effects of Based on the foregoing and other considerations the acquisition, Central has committed to divest its reflected in the record, the Board's judgment is that subsidiary bank in the Athens market, The Peoples the proposed acquisition is not in the public interest Bank." UCC has also contracted to sell its subsidiary and that the applications should be, and hereby are bank in the Cincinnati market, The Southern Ohio denied. Bank, to United Midwest Bancshares, Inc., Cincin- By order of the Board of Governors, effective nati, Ohio ("United Midwest").12 In the event the November 12, 1982. Board denies United Midwest's application to acquire Southern Ohio Bank, UCC has contracted to sell Voting for this action: Vice Chairman Martin and Gover- Southern Ohio Bank to AmeriTrust Corporation, nors Wallich, Teeters, Rice, and Gramley. Absent and not Cleveland, Ohio. The proposed purchasers have filed voting: Chairman Volcker and Governor Partee. applications for the Board's prior approval under the act for these acquisitions. (Signed) JAMES MCAFEE, In "Barnett Banks of Florida, Inc.," 68 FEDERAL [SEAL] Associate Secretary of the Board. RESERVE BULLETIN 190 (1982), the Board stated that divestitures that were required to avoid the anticompetitive effects of a proposed transaction "should be First Pacific Investments Limited, completed prior to or concurrent with consummation Monrovia, Liberia of the proposal so as to avoid the existence of significant anticompetitive effects for even a short period of First Pacific Holdings Limited, time." Central has requested that the Board modify its Hong Kong divestiture policy in this case in light of a competing tender offer for UCC by Huntington.13 Central has FPC Holdings, N.V., proposed to meet the Board's divestiture policy by Curacao, Netherlands Antilles placing the shares of Peoples Bank and Southern Ohio Bank in voting trusts until those divestitures can be First Pacific (Netherlands), B.V., completed. Amsterdam, The Netherlands The Board continues to believe that the policy set forth in the Barnett decision is necessary where dives- First Pacific Corporation, titures are proposed to eliminate otherwise substantial Wilmington, Delaware anticompetitive effects. However, in light of the Board's adverse findings regarding Central's financial Order Approving Formation of Bank Holding resources, the Board finds it unnecessary to decide Companies whether a modification to the Board's policy is appropriate in this case. First Pacific Investments Limited, Monrovia, Liberia With respect to the convenience and needs of the ("First Pacific"); First Pacific Holdings Limited, communities to be served, Applicant states that con- Hong Kong ("FP-Hong Kong"); FPC Holdings, N.V., summation of this proposal would permit UCC to Curacao, Netherlands Antilles ("FP-N.V."); First Paplace greater emphasis on retail banking services and cific (Netherlands), B.V., Amsterdam, Netherlands would give UCC access to an expanded ATM network ("FP-B.V."); and First Pacific Corporation, Wilmingand to Central's expertise in the issuance of retail ton, Delaware ("FP-U.S."), have each applied for the repurchase agreements, IRAs, and sweep accounts. In Board's approval under section 3(a)(1) of the Bank the Board's view, these convenience and needs con- Holding Company Act (12 U.S.C. § 1842(a)(1)) to siderations are not sufficient to outweigh the adverse become a bank holding company through the acquisifinancial effects of this proposal. tion by FP-U.S. of 100 percent of the voting shares of Hibernia Bancshares Corporation, San Francisco, California ("Hibernia"). Hibernia owns 100 percent of the voting shares of The Hibernia Bank, San Francis- 11. On August 13, 1982, UCC contracted to sell its subsidiary bank co, California ("Bank") and is a registered bank in the Athens, Ohio market to Banc One Corporation, Columbus, Ohio. holding company. In addition, First Pacific and FP- 12. Although the Board denied United Midwest's original applica- Hong Kong have applied for the Board's approval tion to acquire Southern Ohio, "United Midwest Bancshares, Inc.," under section 4(c)(13) of the Bank Holding Company (Press Release of October 14, 1982), a modified proposal from United Midwest is currently pending at the Board. Act (12 U.S.C. § 1843(c)(13)) to retain ownership of 13. Huntington's application to acquire UCC was approved by the shares in First Pacific Finance Limited, Hong Kong Federal Reserve Bank of Cleveland, acting pursuant to delegated authority, on May 20, 1982. ("First Pacific Finance"), a registered deposit-taking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 793 company organized under the laws of Hong Kong and the jurisdiction of the United States, to appoint an publicly traded in Hong Kong. agent for service of process in the United States, and Notice of the applications, affording an opportunity to maintain adequate books and records in the United for interested persons to submit comments and views, States available to the Board on request together with has been given in accordance with section 3(b) of the any additional information that the Board may require act. The time for filing comments and views has concerning Applicants' business and financial condiexpired and the Board has considered the applications tion. The financial and managerial resources and fuand all comments received in light of the factors set ture prospects of Bank appear satisfactory in light of forth in section 3(c) of the act. commitments made by Applicants to strengthen and Applicants, with the exception of FP-Hong Kong, improve Bank's overall condition. Based on these and are non-operating corporations organized for the pur- other commitments made by Applicants, the Board pose of acquiring Hibernia. First Pacific, a holding has determined that the considerations relating to company organized under the laws of Liberia, owns banking factors are consistent with approval of the over 65 percent of the outstanding voting shares of FP- applications. Hong Kong, a publicly traded corporation organized In addition to the fact that affiliation with Applicants under the laws of Hong Kong. FP-Hong Kong owns a will strengthen Bank's condition, consummation of the majority of the shares of First Pacific Finance. In proposal will enable Bank to remain a viable competiaddition, FP-Hong Kong proposes to acquire 100 tive alternative for serving the convenience and needs percent of the shares of FP-N.V., a company orga- of the San Francisco community. Applicants also nized under the laws of the Netherlands Antilles. FP- propose to assist Bank in developing a wide range of N.V. owns 100 percent of the shares of FP-B.V., a international banking capabilities. Therefore, the corporation organized under the laws of The Nether- Board finds that considerations relating to the convelands, which in turn owns all of the shares of FP-U.S., nience and needs of the community to be served are a corporation chartered under the laws of the State of consistent with approval. Accordingly, the Board has Delaware. determined that consummation of the transaction Upon acquisition of Hibernia and, indirectly, Bank, would be in the public interest and that the applica- Applicants would control the twelfth largest commer- tions should be approved. cial banking organization in California, controlling First Pacific and FP-Hong Kong have also applied to 0.53 percent of the total deposits in commercial banks retain shares in First Pacific Finance, a majorityin the state.1 owned subsidiary organized under the laws of Hong Bank has assets of $888 million and controls $752 Kong. First Pacific Finance engages in deposit-taking million in deposits in 35 offices in the San Francisco, activities in Hong Kong, as well as commercial lend- California, banking market.2 Bank is the eleventh ing, money market and inter-bank foreign exchange largest commercial bank in that market, with 1.4 deposit activities, trade finance activities, loan syndipercent of the total market deposits. Inasmuch as cation, financial advisory services regarding industri- Applicants and their principals control no other banks al, commercial and real estate development projects, and conduct no nonbanking business in the United and financial advisory activities regarding industrial States, consummation of the proposed transaction mergers, acquisitions, and corporate restructurings. would have no adverse effects on either existing or First Pacific Finance does not, directly or indirectly, potential competition in any relevant market, and conduct business in the United States. The type of would not increase the concentration of resources in activities engaged in by First Pacific Finance have any relevant area. Therefore, the Board concludes that been found to be usual in connection with the transaccompetitive considerations are consistent with ap- tion of banking or other financial operations abroad proval of the applications. and are permissible activities under the Board's Regu- The financial and managerial resources and future lation K (12 CFR § 211.5(d)). Accordingly, the Board prospects of each of the Applicants are considered concludes that the application by First Pacific and FPsatisfactory. In this connection, Applicants have com- Hong Kong to retain shares of First Pacific Finance mitted to refrain from any action to change the pro- should be approved. posed financial or organizational structure of the trans- Based upon the foregoing, including all of the facts action without the consent of the Board, to consent to of record and the commitments made by Applicants, the Board has determined that the applications under sections 3(a)(1) and 4(c)(13) of the act should be and 1. Asset data are as of June 30, 1981; all other banking data are as of hereby are approved. The acquisition of shares of June 30, 1982. Hibernia shall not be consummated before the thirtieth 2. The San Francisco banking market is approximated by the San Francisco RMA. day following the effective date of this Order, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 Federal Reserve Bulletin • December 1982 neither the acquisition nor the contemplated transfer Notice of receipt of these applications, affording of shares of FP-N.V. shall occur later than three opportunity for interested persons to submit commonths after the effective date of this Order, unless ments and views, has been given in accordance with such period is extended for good cause by the Board or sections 3 and 4 of the act (47 Federal Register 41425 by the Federal Reserve Bank of San Francisco, under (September 20, 1982)). The time for filing comments delegated authority. has expired and the Board has considered the applica- By order of the Board of Governors, effective tion and all comments received in light of the factors November 18, 1982. set forth in section 3(c) of the act (12 U.S.C. § 1842(c)), and the considerations specified in section Voting for this action: Vice Chairman Martin, Governors 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)). Partee, Teeters, Rice, and Gramley. Absent and not voting: Applicant is the fourth largest commercial banking Chairman Volcker and Governor Wallich. organization in Tennessee and controls eight subsidiary banks with aggregate deposits of $1.6 billion, (Signed) WILLIAM W. WILES, representing 7.4 percent of the total deposits in com- [SEAL] Secretary of the Board. mercial banks in the state.2 Ancorp is the sixth largest commercial banking organization in Tennessee and controls two subsidiary banks with aggregate deposits Third National Corporation, of $692.9 million, representing 3.3 percent of the total Nashville, Tennessee deposits in commercial banks in the state. Consummation of the proposed merger would increase Appli- Order Approving Merger of Bank Holding cant's share of deposits in commercial banks in Ten- Companies and Acquisition on Nonbanking nessee to 10.7 percent and Applicant would become Activities the second largest banking organization in Tennessee. While the size of the organizations involved is signifi- Third National Corporation, Nashville, Tennessee cant, approval of this proposal will have little effect on ("Applicant"), a bank holding company within the statewide concentration. Because Applicant and Anmeaning of the Bank Holding Company Act of 1956, as corp do not operate any subsidiary banks in the same amended (12 U.S.C. § 1841 et seq.), has applied for market, consummation of the proposal would not the Board's approval under section 3(a)(5) of the act eliminate existing competition in any relevant market. (12 U.S.C. § 1842(a)(5)), to merge with Ancorp Banc- The Board has examined the effect of the proposed shares, Inc., Chattanooga, Tennessee ("Ancorp"), merger of Applicant and Ancorp upon probable future also a bank holding company. As a result of the competition in the relevant geographic markets in light merger, Third National would acquire Ancorp's two of the Board's proposed probable future competition subsidiary banks: American National Bank and Trust guidelines.3 Applicant operates in eight banking mar- Company of Chattanooga, Chattanooga, Tennessee; kets in which Ancorp is not represented.4 Because of and Hamilton Bank of Johnson City, Johnson City, Ancorp's size and its history of limited geographic Tennessee. expansion, the Board does not consider Ancorp to be a Applicant has also applied for the Board's approval likely future entrant into any of the eight markets under section 4(c)(8) of the act (12 U.S.C. where Applicant currently operates. Moreover, each § 1843(c)(8)), and section 225.4(b)(2) of the Board's of these markets is either not concentrated, as mea- Regulation Y (12 CFR § 225.4(b)(2)), to acquire An- sured by the Board's proposed guidelines, or, because corp Insurance Company, Chattanooga, Tennessee of its small size or market structure, is not attractive ("Ancorp Insurance"). Ancorp Insurance engages in for de novo or foothold entry by Ancorp. Accordingly, the underwriting of credit life insurance and credit the Board concludes that the proposal would not have accident and health insurance directly related to exten- substantial adverse effects on probable future competisions of credit made by Ancorp's subsidiary banks. The Board has determined that these activities are closely related to banking (12 CFR § 225.4(a)( 10)) and 2. Banking data are as of December 31, 1981. this determination is consistent with the recent amend- 3. "Proposed Policy Statement of the Board of Governors of the Federal Reserve System for Assessing Competitive Factors Under the ments to section 4(c)(8) of the act limiting the permissi- Bank Merger Act and the Bank Holding Company Act", 47 Federal ble insurance activities of bank holding companies.1 Register 9017 (March 3, 1982). Although the proposed policy statement has not been approved by the Board, the Board has used the proposed policy statement in a number of cases to determine whether an intensive analysis is warranted regarding the effects of a proposal on probable future competition. 1. See The Garn-St Germain Depository Institutions Act of 1982, 4. These banking markets are the Nashville, Knoxville, Obion, Pub. L. No. 97-320, § 601(A), 96 Stat. 1469 (1982). Bradley, Sevier, Lawrence, Giles, and Hardin markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 795 tion in any of these eight markets in which Ancorp would substantially lessen probable future competition does not operate. in any relevant market in the state. Ancorp controls banks in two banking markets in The financial and managerial resources and future which Applicant is not represented: Chattanooga and prospects of Applicant and Ancorp and their respec- Johnson City.5 In view of its size, substantial manage- tive subsidiaries are considered satisfactory and conrial and financial resources, and previous history of sistent with approval. Although some new or expandexpansion, Applicant appears to be a potential entrant ed services may result from approval of this into the Chattanooga and Johnson City markets. In the acquisition, there is no evidence in the record indicat- Johnson City market, Ancorp's subsidiary bank is the ing that the banking needs of the communities to be second largest of seven banks and controls 21.9 per- served are not being met. Considerations relating to cent of the total deposits in commercial banks in the the convenience and needs of the community to be market. The Johnson City market has a three-firm served are consistent with approval. concentration ratio of 65.9 percent and thus is uncon- Applicant's credit life underwriting subsidiary curcentrated under the Board's proposed guidelines. In rently does not derive its business from any of the addition, in view of the structure of the Johnson City banking markets where Ancorp Insurance Service banking market, the Board finds that Applicant's entry operates. Accordingly, consummation of the proposed de novo or by a foothold acquisition is not likely. merger would not decrease competition in this line of In the Chattanooga market, Ancorp's subsidiary commerce. There is no evidence in the record to bank is the largest of twelve banks, controlling 41.7 indicate that approval would result in other adverse percent of the deposits in commercial banks in the effects, such as undue concentration of resources, market. The Chattanooga banking market is concen- unfair competition, conflicts of interest, or unsound trated, with a three-firm market concentration ratio of banking practices. Accordingly, the Board has deter- 79.6 percent. In light of these factors, the Board has mined that the balance of public interest factors it must carefully examined the proposed merger to determine consider under section 4(c)(8) of the act is consistent its effect on probable future competition in the Chatta- with approval of the application. nooga market. The average growth rate of deposits in Based on the foregoing and the facts of record, the the Chattanooga market for the past two years has Board has determined that the applications under been below the state and national average. On this sections 3(a)(5) and 4(c)(8) should be and are hereby basis, the Board finds that the market is not attractive approved. The merger shall not be made before the for de novo or foothold entry and that an intensive thirtieth calendar day following the effective date of analysis of the proposal under the Board's guidelines this Order; neither the subject merger nor the acquisiis not required. tion of the nonbanking subsidiaries shall be made later In addition, there are three Tennessee bank holding than three months after the effective date of this companies with assets over $1 billion that would Order, unless such period is extended for good cause remain as probable future entrants into the Chattanoo- by the Board or by the Federal Reserve Bank of ga market following consummation of this proposal.6 Atlanta, pursuant to delegated authority. The determi- There are also at least four Georgia banking organiza- nation as to Applicant's acquisition of Ancorp's nontions that are considered probable future entrants into bank subsidiaries is subject to the conditions set forth Walker County, Georgia, which is adjacent to the city in section 225.4(c) of Regulation Y (12 CFR § 225.4(c)) of Chattanooga and is part of the Chattanooga banking and to the Board's authority to require such modificamarket. The presence of these Georgia organizations tions or termination of activities of a holding company further mitigates the Board's concerns regarding the or any of its subsidiaries as the Board finds necessary elimination of Applicant as a probable future entrant to assure compliance with the provisions and purposes into the Chattanooga market. On the basis of the of the act and the Board's regulations and Orders above and other facts of record, the Board concludes issued thereunder, or to prevent evasion thereof. that there are insufficient grounds upon which to By order of the Board of Governors, effective determine that consummation of the proposed merger November 30, 1982. Voting for this action: Vice Chairman Martin and Gover- 5. The Chattanooga banking market is defined as Hamilton County, Tennessee, and Walker County, Georgia. The Johnson City banking nors Partee, Teeters, and Gramley. Absent and not voting: market is defined as Carter and Washington Counties, Tennessee. Chairman Volcker and Governors Wallich and Rice. 6. The Board notes that there are two other Tennessee banking organizations not presently represented in the Chattanooga market that have assets over $700 million, and that have made a number of (Signed) JAMES MCAFFEE, bank acquisitions outside of the market in which their lead banks were located. [SEAL] Associate Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 Federal Reserve Bulletin • December 1982 Concurring Statement of Governor Teeters method of addressing the standards set out by the United States Court of Appeals for the Fifth Circuit in I concur with the decision of the Board that the Mercantile Texas Corporation v. Board of Governors, application to merge these two bank holding compa- 638 F.2d 1255 (5th Cir. 1981). As I have previously nies should be approved. Although the Board's pro- indicated, these grounds are so subjective that the posed probable future competition guidelines techni- Board has great difficulty in enforcing them and, in cally would require more intensive review of the fact, has allowed a number of combinations of bank effects of this merger in the Bradley banking market, I holding companies that, in my opinion, were substanbelieve the Board correctly determined that such tially anticompetitive. further analysis is unwarranted. The relatively small The instant case, on the other hand, presents a size and unique structure of this market makes it situation in which these proposed guidelines were unlikely that consummation of the proposal would triggered where the elimination of significant probable eliminate a significant amount of probable future com- future competition is not an obvious concern. Accordpetition. ingly, I believe the Board should give increased atten- I continue to be concerned, however, with the tion to developing and applying standards that more Board's general approach to the evaluation of the realistically reflect the adverse effects of the eliminaeffects of a merger on probable future competition. tion of probable future competition. The Board's guidelines have been proposed as a November 30, 1982 ORDERS APPROVING APPLICATIONS UNDER THE BANK HOLDING COMPANY ACT AND BANK MERGER ACT By the Board of Governors During November 1982, 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) Atlantic Bancorporation, Atlantic National Bank of Florida at November 5, 1982 Jacksonville, Florida Orange Park, Orange Park, Florida Bunceton Bancshares, Inc., Bunceton State Bank, November 9, 1982 Blue Springs, Missouri Bunceton, Missouri Community Bancorporation, Inc. The First National Bank of Bellville, November 5, 1982 Bellville, Texas Bellville, Texas Cook Investment, Inc., Beatrice National Corporation, November 4, 1982 Beatrice, Nebraska Beatrice, Nebraska The Beatrice National Bank and Trust Company, Beatrice, Nebraska First Central Corporation, First National Bank of Searcy, November 29, 1982 Searcy, Arkansas Searcy, Arkansas First City Bancorporation of Texas, Inc. Graham National Bank, November 3, 1982 Houston, Texas Graham, Texas The Graham National Bank, Graham, Texas First Manitowoc Bancorp, Inc., First National Bank in Manitowoc, November 16, 1982 Manitowoc, Wisconsin Manitowoc, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 797 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Madelia Holding Corp., The Citizens National Bank of Madelia, November 30, 1982 Madelia, Minnesota Madelia, Minnesota Park National Corporation, Park National Bank of Knoxville, November 26, 1982 Knoxville, Tennessee Knoxville, Tennessee Texas American Bancshares, Inc. Citizens National Bank of Temple, November 8, 1982 Forth Worth, Texas Temple, Texas Forum Bank, Arlington, Texas Texas Commerce Bancshares, Inc. Texas Commerce Bank-West Oaks, N.A., November 4, 1982 Houston, Texas Houston, Texas By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Abanc Holding, Inc., Augusta Bank and Trust, Kansas City November 9, 1982 El Dorando, Kansas Augusta, Kansas Alamo Corporation of Texas, Alamo Bank of Texas, Dallas November 17, 1982 Alamo, Texas Alamo, Texas Central National Bank, Pharr, Texas McAllen National Bank, McAllen, Texas Alpine Bancorp, Inc., Snowmass Bancorp, Inc., Kansas City October 29, 1982 Glenwood Springs, Colorado Snowmass Village Basalt Bancorp, Inc., Basalt, Colorado Alpine Bank, Glenwood Springs, Colorado Valley Bank, Eagle, Colorado Colorado River Bancorp, Clifton, Colorado American Bancorporation, Inc., Texas Bank & Trust in Wichita Dallas November 19, 1982 Longview, Teaxs Falls, Wichita Falls, Texas American Commerce Bancshares, American Bank of Commerce, Kansas City November 16, 1982 Inc., Oklahoma City, Oklahoma Oklahoma City, Oklahoma Associated Bank Shares Corpora- Citizens National Bank, Kansas City October 29, 1982 tion, Colorado Springs, Colorado Colorado Springs, Colorado Bancap, Inc., Peoples State Bank of Clay Chicago November 26, 1982 Poland, Indiana County, Poland, Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 Federal Reserve Bulletin • December 1982 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Bank of Virginia Company, The Bank of Vienna, Richmond November 16, 1982 Richmond, Virginia Vienna, Virginia Bryant Bancshares, Inc., Bryant State Bank, Minneapolis November 3, 1982 Bryant, South Dakota Bryant, South Dakota Carver County Bancshares, Inc., Carver County State Bank, Minneapolis November 12, 1982 Chaska, Minnesota Chaska, Minnesota CharterCorp, American National Bank, Kansas City October 22, 1982 Kansas City, Missouri St. Louis, Missouri City Bank, St. Louis, Missouri Citizens State Financial Corpora- RepublicBank Groveton, Dallas November 8, 1982 tion, Groveton, Texas Clay County Bancshares, Inc., Clay County Bank, Atlanta November 26, 1982 Celina, Tennessee Celina, Tennessee Commercial Bancshares, Inc., CB & T Bancshares, Inc., Dallas November 8, 1982 Wharton, Texas Cleveland, Texas Commercial Bankstock, Inc., Commercial Bank, N.A., Kansas City November 5, 1982 Oklahoma City, Oklahoma Oklahoma City, Oklahoma Community Corporation, Community Bank and Trust Kansas City October 25, 1982 Enid, Oklahoma Company, Enid, Oklahoma C.S.B. Corporation, Gadsden State Bank, Atlanta November 8, 1982 Marianna, Florida Chattahoochee, Florida Dairyland State Bancorporation, Dairyland State Bank, Minneapolis November 24, 1982 Inc., Bruce, Wisconsin Bruce, Wisconsin Dawson Springs Bancorp, Inc., Commercial Bank of Dawson, St. Louis November 15, 1982 Dawson Springs, Kentucky Dawson Springs, Kentucky Eitzen Independents, Inc., Eitzen State Bank, Minneapolis October 29, 1982 Eitzen, Minnesota Eitzen, Minnesota Emery Security Bancorporation, Security State Bank, Minneapolis November 19, 1982 Inc., Emery, South Dakota Emery, South Dakota Fairmount Bancorp, Inc., The First National Bank of Fair- Chicago November 8, 1982 Fairmount, Illinois mount, Fairmount, Illinois First Ada Bancshares, Inc., The First National Bank, Kansas City November 15, 1982 Ada, Oklahoma Ada, Oklahoma First Ainsworth Company, The First National Bank of Ains- Kansas City November 16, 1982 Ainsworth, Nebraska worth, Ainsworth, Nebraska First-Citizens Corporation, First-Citizens Bank & Trust Com- Richmond November 4, 1982 Raleigh, North Carolina pany, Raleigh, North Carolina First Edmond Bancshares, Inc., First National Bank of Edmond, Kansas City November 10, 1982 Edmond, Oklahoma Edmond, Oklahoma First Graham Bancorp, Inc., First National Bank in Graham, Dallas November 17, 1982 Graham, Texas Graham, Texas First Jacksboro Bancshares, Inc., The First National Bank of Jacks- Dallas November 29, 1982 Jacksboro, Texas boro, Jacksboro, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 799 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First National Bank Holding Cor- First National Bank of Escambia Atlanta November 5, 1982 poration, County, Pensacola, Florida Pensacola, Florida First Pioneer Bank Corp., The Citizens National Bank, Kansas City November 4, 1982 Brush, Colorado Akron, Colorado The First National Bank, Wray, Colorado First Roane County Bankcorp, First National Bank and Trust Atlanta November 16, 1982 Inc., Company, Rockwood, Tennessee Rockwood, Tennessee First State Bancorp, Inc., First State Bank and Trust Compa- Kansas City November 2, 1982 Pittsburg, Kansas ny, Pittsburg, Kansas First Winters Holding Company, The Winters State Bank, Dallas November 8, 1982 Winters, Texas Winters, Texas Florida National Banks of Florida, Kingsley Bank, Atlanta November 12, 1982 Inc., Orange Park, Florida Jacksonville, Florida Forrest Bancshares, Inc., First State Bank of Forrest, Chicago October 29, 1982 Forrest, Illinois Forrest, Illinois Franklin Bancshares, Inc., The First National Bank of Frank- Dallas November 26, 1982 Franklin, Texas lin, Franklin, Texas Freeburg Bancorp, Inc., The First National Bank of Free- St. Louis October 29, 1982 Freeburg, Illinois burg, Freeburg, Illinois Gary Holding Company, Gary State Bank, Minneapolis November 24, 1982 Gary, South Dakota Gary, South Dakota Goodhue County Financial Corpo- The Goodhue County National Minneapolis November 26, 1982 ration, Bank of Red Wing, Red Wing, Minnesota Red Wing, Minnesota Grinnell Bancshares, Inc., Grinnell State Bank, Chicago November 15, 1982 Grinnell, Iowa Grinnell, Iowa Gulf Southwest Bancorp, Inc., Merchants Park Bank, Dallas November 26, 1982 Houston, Texas Houston, Texas Southern State Bank, Houston, Texas League City National Bank, League City, Texas Alvin Community Bank, N.A., Alvin, Texas Guaranty Bancshares Holding Cor- Guaranty Bank & Trust Company Atlanta November 10, 1982 poration, of Morgan City, Morgan City, Louisiana Morgan City, Louisiana H & H Bancshares, Inc., First National Bank of White City, Kansas City November 5, 1982 White City, Kansas White City, Kansas Hawkeye Bancorporation, First National Bank in Lenox, Chicago November 4, 1982 Des Moines, Iowa Lenox, Iowa State Bank of Vinton, Vinton, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 Federal Reserve Bulletin • December 1982 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Heartland Financial Bancshares, Heartland Bancorp, Inc., Chicago November 22, 1982 Inc., El Paso, Illinois State Bank of Cornland, Cornland, Illinois Bank of Carlock, Carlock, Illinois Woodford Investment Company, Eureka, Illinois Hebron Bancshares, Inc., Security Bank of Hebron, Minneapolis November 26, 1982 Omaha, Nebraska Hebron, North Dakota Hillsboro Bancshares, Inc., Bank of Hillsboro, St. Louis November 26, 1982 Hillsboro, Missouri Hillsboro, Missouri Hub Financial Corporation, Valley Bank of Helena, Minneapolis November 2, 1982 Helena, Montana Helena, Montana Huntley Bancshares, Inc., State Bank of Huntley, Chicago November 3, 1982 Huntley, Illinois Huntley, Illinois Lancaster Bancshares, Inc., The First National Bank of Lan- Dallas November 19, 1982 Lancaster, Texas caster, Lancaster, Texas Maynard Savings Bancshares, The Maynard Savings Bank, Chicago November 1, 1982 Maynard, Iowa Maynard, Iowa Midland BanCor, Inc., Midland Bank, Kansas City October 27, 1982 Lee's Summit, Missouri Lee's Summit, Missouri M.M. Enterprises of Plentywood, Security State Bank of Minneapolis November 19, 1982 Inc., Plentywood, Plentywood, Montana Plentywood, Montana Mountain Financial Company, Jefferson County Bank, Atlanta November 26, 1982 Maryville, Tennessee Dandridge, Tennessee MSB Holding Co., Inc., Mandan Security Bank, Minneapolis November 19, 1982 Bismarck, North Dakota Mandan, North Dakota Nelson Bancorp, Inc., Peoples State Bank, St. Louis November 1, 1982 Chaplin, Kentucky Chaplin, Kentucky Northern Trust Corporation, Colonial Bank of Schaumburg, Chicago November 24, 1982 Chicago, Illinois Schaumburg, Illinois Northern Trust Corporation, Colonial Bank of Schaumburg, Chicago November 24, 1982 Chicago, Illinois Schaumburg, Illinois Peoples Bancorp, Inc., Peoples Bank of Richwood, Inc., Richmond November 17, 1982 Richwood, West Virginia Richwood, West Virginia Piggott Bankstock, Inc., Piggott State Bank, St. Louis November 12, 1982 Piggott, Arkansas Piggott, Arkansas Pioneer Bank Shares, Pioneer Bank of Evanston, Kansas City October 22, 1982 Evanston, Wyoming Evanston, Wyoming Pope County Bankshares, Inc., Peoples Bank & Trust Company, St. Louis November 5, 1982 Russellville, Arkansas Russellville, Arkansas Republic Bancshares, Inc., Franklin County Bank, Atlanta November 12, 1982 Winchester, Tennessee Winchester, Tennessee Southwest Bancshares, Inc., Plaza National Bank, Dallas October 28, 1982 Houston, Texas Harlingen, Texas State Bancshares, Inc., Coffee County Bank, Atlanta November 2, 1982 Enterprise, Alabama Enterprise, Alabama Timpson Financial Corporation, First State Bank, Dallas November 5, 1982 Timpson, Texas Timpson, Texas Digitized for FTRrAinSiEtyR Bancshares, Inc., Trinity National Bank of Dallas, Dallas November 5, 1982 http://fraser.stlouDisafellda.so,r gT/ exas Dallas, Texas Federal Reserve Bank of St. Louis

Legal Developments 801 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Ulm Financial Corporation, New Ulm State Bank, Dallas November 26, 1982 New Ulm, Texas New Ulm, Texas United Bancorp., Inc., Unitedbank-Victoria, Dallas October 29, 1982 Victoria, Texas Victoria, Texas U.S.B. Holding Co., Inc., Union State Bank, New York November 23, 1982 Nanuet, New York Nanuet, New York UST Corp., Charlesbank Trust Company, Boston November 23, 1982 Boston, Massachusetts Cambridge, Massachusetts Wayne Bancshares, Inc., City & County Bank of Wayne St. Louis November 26, 1982 Monticello, Kentucky County, Monticello, Kentucky Western Bancshares of El Paso, Western Bank, Dallas November 26, 1982 Inc., El Paso, Texas El Paso, Texas The Wilber Corporation, Wilber National Bank, New York November 23, 1982 Oneonta, New York Oneonta, New York Section 4 Nonbanking Reserve Effective Applicant company Bank date (or activity) Eaton Capital Corporation, Colorado Industrial Bank, Kansas City October 27, 1982 Loup City, Nebraska Eaton, Colorado Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) LeClaire Agency, Inc., LeClaire State Bank, to engage in the sale Chicago November 26, 1981 LeClaire, Iowa LeClaire, Iowa of general insurance Princeton Agency, Inc., Farmers Savings to engage in the sale Chicago November 26, 1982 Princeton, Iowa Bank, of general insurance Princeton, Iowa SafraCorp, SafraBank, II, N.A., to engage in lending Atlanta November 5, 1982 Miami, Florida Pompano Beach, activities Florida Valley Bancorporation, West Bank and Trust, to engage in leasing of Chicago November 19, 1982 Appleton, Wisconsin Green Bay, Wiscon- personal property sin East Bank, Green Bay, Wisconsin United Bank of Green Bay, Green Bay, Wisconsin Unibank Services, Inc., Green Bay, Wiscon- Digitized for FRASER sin http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin • December 1982 ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date First Virginia—Franklin County, Farmers and Merchants Bank, Richmond November 9, 1982 Rocky Mount, Virginia Boones Mill, Franklin County, 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 filed September 1981, U.S.C.A. for the Second of Governors is not named a party. Circuit (two cases). Bank Stationers Association, Inc., et al. v. Board of Flagship Banks, Inc. v. Board of Governors, filed Governors, filed July 1981, U.S.D.C. for the North- October 1982, U.S.D.C. for the District of Colum- ern District of Georgia. bia. Public Interest Bounty Hunters v. Board of Gover- Association of Data Processing Service Organiza- nors, et al., filed June 1981, U.S.D.C. for the tions, Inc., et al. v. Board of Governors, filed Northern District of Georgia. August 1982, U.S.C. A. for the District of Columbia. Edwin F. Gordon v. John Heimann, et al., filed May The Philadelphia Clearing House Association, et al. v. 1981, U.S.C.A. for the Fifth Circuit. Board of Governors, filed July 1982, U.S.D.C. for First Bank & Trust Company v. Board of Governors, the Eastern District of Pennsylvania. filed February 1981, U.S.D.C. for the Eastern Dis- Richter v. Board of Governors, et al., filed May 1982, trict of Kentucky. U.S.D.C. for the Northern District of Illinois. 9 to 5 Organization for Women Office Workers v. Montgomery v. Utah, et al., filed May 1982, U.S.D.C. Board of Governors, filed December 1980, for the District of Utah. U.S.D.C. for the District of Massachusetts. Wyoming Bancorporation v. Board of Governors, filed Securities Industry Association v. Board of Gover- May 1982, U.S.C.A. for the Tenth Circuit. nors, et al., filed October 1980, U.S.D.C. for the First Bancorporation v. Board of Governors, filed District of Columbia. April 1982, U.S.C.A. for the Tenth Circuit. Securities Industry Association v. Board of Gover- Charles G. Vick v. Paul A. Volcker, et al., filed March nors, et al., filed October 1980, U.S.C.A. for the 1982, U.S.D.C. for the District of Columbia. District of Columbia. Jolene Gustafson v. Board of Governors, filed March A. G. Becker, Inc. v. Board of Governors, et al., filed 1982, U.S.C.A. for the Fifth Circuit. October 1980, U.S.D.C. for the District of Colum- Option Advisory Service, Inc. v. Board of Governors, bia. filed December 1981, U.S.C.A. for the Second A. G. Becker, Inc. v. Board of Governors, et al., filed Circuit. October 1980, U.S.C.A. for the District of Colum- Edwin F. Gordon v. Board of Governors, et al., filed bia. October 1981, U.S.C.A. for the Eleventh Circuit A. G. Becker, Inc. v. Board of Governors, et al., filed (two consolidated cases). August 1980, U.S.D.C. for the District of Columbia. Allen Wolfson v. Board of Governors, filed September Berkovitz, et al. v. Government of Iran, et al., filed 1981, U.S.D.C. for the Middle District of Florida. June 1980, U.S.D.C. for the Northern District of California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A19 All reporting banks A20 Banks with assets of $1 billion or more A3 Monetary aggregates and interest rates A21 Banks in New York City A4 Reserves of depository institutions, Reserve A22 Balance sheet memoranda Bank credit A23 Branches and agencies of foreign banks A5 Reserves and borrowings of depository A24 Commercial and industrial loans institutions A25 Gross demand deposits of individuals, A6 Federal funds and repurchase agreements of partnerships, and corporations large member banks FINANCIAL MARKETS POLICY INSTRUMENTS A26 Commercial paper and bankers dollar A7 Federal Reserve Bank interest rates acceptances outstanding A8 Depository institutions reserve requirements A27 Prime rate charged by banks on short-term A9 Maximum interest rates payable on time and business loans savings deposits at federally insured institutions A27 Terms of lending at commercial banks All Federal Reserve open market transactions A28 Interest rates in money and capital markets A29 Stock market—Selected statistics A30 Selected financial institutions—Selected assets FEDERAL RESERVE BANKS and liabilities A12 Condition and Federal Reserve note statements A13 Maturity distribution of loan and security FEDERAL FINANCE holdings A31 Federal fiscal and financing operations A32 U.S. budget receipts and outlays MONETARY AND CREDIT AGGREGATES A33 Federal debt subject to statutory limitation A33 Gross public debt of U.S. Treasury—Types and A13 Aggregate reserves of depository institutions ownership and monetary base A33 U.S. government marketable securities— A14 Money stock measures and components Ownership, by maturity A15 Bank debits and deposit turnover A34 U.S. government securities dealers— A16 Loans and securities of all commercial banks Transactions, positions, and financing A35 Federal and federally sponsored credit agencies—Debt outstanding COMMERCIAL BANKS A17 Major nondeposit funds A18 Assets and liabilities, last Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • December 1982 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 A55 Foreign official assets held at Federal Reserve asset position Banks A37 Corporate profits and their distribution A56 Foreign branches of U.S. banks—Balance sheet A38 Nonfinancial corporations—Assets and data liabilities A58 Selected U.S. liabilities to foreign official A38 Total nonfarm business expenditures on new institutions plant and equipment A39 Domestic finance companies—Assets and liabilities; business credit REPORTED BY BANKS IN THE UNITED STATES A58 Liabilities to and claims on foreigners REAL ESTATE A59 Liabilities to foreigners A61 Banks' own claims on foreigners A40 Mortgage markets A62 Banks' own and domestic customers' claims on A41 Mortgage debt outstanding foreigners A62 Banks' own claims on unaffiliated foreigners A63 Claims on foreign countries—Combined CONSUMER INSTALLMENT CREDIT domestic offices and foreign branches A42 Total outstanding and net change A43 Extensions and liquidations REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES FLOW OF FUNDS A64 Liabilities to unaffiliated foreigners A65 Claims on unaffiliated foreigners A44 Funds raised in U.S. credit markets A45 Direct and indirect sources of funds to credit markets SECURITIES HOLDINGS AND TRANSACTIONS A66 Foreign transactions in securities Domestic Nonfinancial Statistics A67 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions 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 A67 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 1981 1982 1982 Item Q4 Q1 Q2 Q3 June July Aug. Sept. Oct. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions 1 Total 3.1 7.5 .6 4.8 2.2 -1.6 8.8 23.6 9.4 2 Required 3.5 7.1 1.1 4.6 3.8 -1.8 8.9 21.5 8.9 3 Nonborrowed 10.9 -.9 4.2 11.2 -.5 14.8 14.5 10.7 23.8 4 Monetary base2 3.8 7.8 7.1 6.5 7.7 2.8 6.8 12.2 6.8 Concepts of money and liquid assets3 s Ml 5.7 10.4 3.3 3.5 -.3 -.3 10.4 14.0 2200..33 6 M2 8.9 9.8 9.5 9.7 6.6 9.7 14.3 5.0 8.3 7 M3 9.3 8.7 10.7 12.1' 8.8 12.6 18.5r 3.9 9.2 8 L 10.7 10.3 12.0r 11.6 10,9r 14.2r 11.3 n.a. n.a. Time and savings deposits Commercial banks 9 Total 8.3 7.5 17.1 17.8 17.3 22.9 16.5' 4.0 .4 10 Savings4 -11.9 8.7 2.0 -9.7 -4.5 -21.8 -8.4 5.4 20.7 11 Small-denomination time5 20.8 9.7 23.8 21.3 15.8 29.1 20.3 8.8 -9.6 12 Large-denomination time6 5.4 4.6 17.0 26.7 29.6 36.4 23.0 -1.6 2.6 13 Thrift institutions7 2.7 3.1 6.6 6.8 3.8 10.4 6.3 -.3 5.8 14 Total loans and securities at commercial banks8 3.6 2.6 8.6 6.0 5.2 6.3 6.6 4.4 6.8 1981 1982 1982 Q4 Q1 Q2 Q3 July Aug. Sept. Oct. Nov. Interest rates (levels, percent per annum) Short-term rates 15 Federal funds9 13.59 14.23 14.52 11.01 12.59 10.12 10.31 9.71 9.20 16 Discount window borrowing10 13.04 12.00 12.00 10.83 11.81 10.68 10.00 9.68 9.35 17 Treasury bills (3-month market yield)" 11.75 12.81 12.42 9.32 11.35 8.68 7.92 7.71 8.07 18 Commercial paper (3-month)1112 13.04 13.81 13.81 11.15 12.94 10.15 10.36 9.20 8.69 Long-term rates Bonds 19 U.S. government13 14.14 14.27 13.74 12.94 13.76 12.91 12.16 10.97 10.57 20 State and local government14 12.54 13.02 12.33 11.39 12.28 11.23 10.66 9.69 10.06 21 Aaa utility (new issue)1- 15.67 15.71 15.73 14.25 15.61 13.95 13.52 12.20 11.76 22 Conventional mortgages16 17.33 17.10 16.63 15.65 16.50 15.40 15.05 13.95 13.80 1. Unless otherwise noted, rates of change are calculated from average amounts 5. Small-denomination time deposits—including retail RPs—are those issued in outstanding in preceding month or quarter. amounts of less than $100,000. 2. Includes reserve balances at Federal Reserve Banks in the current week plus 6. Large-denomination time deposits are those issued in amounts of $100,000 or vault cash held two weeks earlier used to satisfy reserve requirements at all deposi- more. tory institutions plus currency outside the U.S. Treasury. Federal Reserve Banks, 7. Savings and loan associations, mutual savings banks, and credit unions. the vaults of depository institutions, and surplus vault cash at depository institu- 8. Changes calculated from figures shown in table 1.23. Beginning December tions. 1981, growth rates reflect shifts of foreign loans and securities from U.S. banking 3. Ml: Averages of daily figures for (1) currency outside the Treasury. Federal offices to international banking facilities. Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- 9. Averages of daily effective rates (average of the rates on a given date weighted bank issuers; (3) demand deposits at all commercial banks other than those due by the volume of transactions at those rates). to domestic banks, the U.S. government, and foreign banks and official institutions 10. Rate for the Federal Reserve Bank of New York. less cash items in the process of collection and Federal Reserve float; and (4) 11. Quoted on a bank-discount basis. negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- 12. Unweighted average of offering rates quoted by at least five dealers. counts at banks and thrift institutions, credit union share draft (CUSD) accounts, 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. and demand deposits at mutual savings banks. 14. Bond Buyer series for 20 issues of mixed quality. M2: Ml plus savings and small-denomination time deposits at all depository 15. Weighted averages of new publicly offered bonds rated Aaa. Aa. and A by institutions, overnight repurchase agreements at commercial banks, overnight Eu- Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve comrodollars held by U.S. residents other than banks at Caribbean branches of member pilations. banks, and balances of money market mutual funds (general purpose and broker/ 16. Average rates on new commitments for conventional first mortgages on new dealer). 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 and balances of institution-only money market mutual funds. NOTE. Revisions in reserves of depository institutions reflect the transitional L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents phase-in of reserve requirements as specified in the Monetary Control Act of 1980. other than banks, bankers acceptances, commercial paper. Treasury bills and other liquid Treasury securities, and U.S. savings bonds. 4. Savings deposits exclude NOW and ATS accounts at commercial banks and thrifts and CUSD accounts at credit unions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • December 1982 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 Sept. Oct Oct. 13 Oct. 20 Oct. 27 Nov. 3 Nov. 10 Nov. 17 Nov. 24? SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 153,324 153,666 156,110 152,566 155,737 153,777 153,630 154,473 156,764 2 U.S. government securities1 131,920 132,374 134,461 131,389 133,593 132,752 132,280 .215 134.879 3 4 B H o e u ld g h u t n o d u er t ri r g e h p t u rchase agreements 131,4 4 3 8 6 4 132,0 2 9 8 3 1 134,2 2 0 5 7 4 131,3890 133,0 5 1 8 1 2 132,7520 132,2800 ,2150 134,6 2 2 5 6 3 5 Federal agency securities 9,042 9,069 8,981 8,947 9,048 8,943 8,943 1,943 9,001 6 7 8 Ac H B c o e e l p u d g t a h u n t n c o d es u e r t ri r g e h p t u rchase agreements 8,9 1 5 9 5 1 1 9 8,9 1 1 4 2 1 5 4 2 8,94 3 4 3 8 7 8,9470 0 8,9 1 1 4 0 4 3 5 0 8,9430 0 8,9430 0 1,940 0 3 8,94 5 7 3 8 4 9 Loans 976 455 579 365 516 452 458 722 742 10 Float 2,123 1,952 2,689 2,291 2,730 1,731 1,858 :,669 2,707 11 Other Federal Reserve assets 9,104 9,704 9,353 9,574 9,710 9,900 9,091 1,924 9,361 12 Gold stock 11,148 11,148 11,148 11,148 11,148 11,148 11,148 ,148 11,148 13 Special drawing rights certificate account. . . 4,118 4.218 4,371 4,218 4.218 4,218 4,218 1,304 4,418 14 Treasury currency outstanding 13,786 13,786 13,786 13,786 13,786 13,786 13,786 1,786 13,786 ABSORBING RESERVE FUNDS 15 Currency in circulation 148,631 149,174 151.288 149,828 149,675 148,807 149,337 150,631 151,535 16 Treasury cash holdings 415 436 449 436 439 440 443 452 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 4,062 2,932 3.097 2.819 2.858 2,774 2,654 3,256 3,108 18 Foreign 264 262 273 248 287 253 313 256 259 19 Other 509 540 569 532 537 550 502 463 596 20 Required clearing balances 382 21 Other Federal Reserve liabilities and capital 4,836 4,898 4,785 4,982 4,908 4,830 4,802 4,818 4.786 22 Reserve accounts2 23,385 24,252 24,563 22.555 25,854 24,929 24,366 23,457 24,987 End-of-month figures Wednesday figures 1982 Sept. Oct. 20 Oct. 27 Nov. 3 Nov. 10 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 156,502 152,760 159,079 154,442 161,798 154,768 156,078 157,538 155,157 24 U.S. government securities1 134,393 132.080 137,676 131,459 135,926 132,604 132,105 133,057 133,861 2 2 5 6 H Bo el u d g h u t n o d u er t ri r g e h p t u rchase agreements . . . 13 3 0 , , 8 5 0 9 2 1 132,0800 137,6760 131.4590 13 4 1 , , 0 8 7 4 7 9 132,6040 132,1050 133,0570 133,8610 27 Federal agency securities 9,950 8,943 8,943 8.943 9,680 8,943 8,943 8,943 8,943 2 2 3 8 9 0 Ac B H c o e e u p ld g t a h u n t n c o e d s u e r t ri r g e h p t u rchase agreements . . . 8 1 , , 9 0 8 4 0 1 9 1 3 8,9430 0 8.9430 0 8.9430 0 8.9 9 7 4 8 3 3 1 7 8,9430 0 8,9430 0 8,9430 0 8,9430 0 31 Loans 1,123 438 374 354 1.617 822 758 3,208 425 32 Float 550 1,168 2.401 3.945 3.439 2,293 3,936 2,215 3,324 33 Other Federal Reserve assets 9,673 10,131 9,685 9.741 10,155 10,106 10,336 10,115 8,604 34 Gold stock 11,148 11.148 11,148 11.148 11,148 11,148 11,148 11,148 11,148 35 Special drawing rights certificate account 4,218 4,218 4,418 4,218 4,218 4,218 4,218 4,418 4,418 36 Treasury currency outstanding 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 ABSORBING RESERVE FUNDS 37 Currency in circulation 148,093 148,922 152,895 150.508 149,553 149,195 150,167 151,680 151,708 38 Treasury cash holdings 423 444 444 437 440 442 442 452 450 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 10,975 2,309 2,247 2.980 3,200 3,169 3,154 3,166 3,836 40 Foreign 396 327 387 211 287 220 300 290 214 41 Other 405 450 717 516 552 465 467 554 548 42 Required clearing balances 300 356 408 312 321 338 355 378 392 43 Other Federal Reserve liabilities and capital 5.047 4.783 5.209 4.745 4,839 4,653 4,618 4,624 4,629 44 Reserve accounts2 20.015 24,321 26.124 23.885 31,758 25,438 25,727 25,746 22,733 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 RReesseerrvvee ccllaassssiiffiiccaattiioonn 1981 1982 Dec. Mar. Apr. May June July Aug. Sept. Oct. Nov.P 1 Reserve balances with Reserve Banks1 .... 26.163 24.254 24,565 24,207 24.031 24,273 24,471 23.385 24,252 24,563 2 Total vault cash (estimated) 19.538 18,749 18,577 19,048 19,318 19,448 19,500 19,921 19,578 19,804 3 Vault cash at institutions with required reserve balances2 13,577 12,663 12,709 12,972 13,048 13,105 13,188 13,651 13,658 13,909 4 Vault cash equal to required reserves at other institutions 2,178 2.313 2.284 2,373 2,488 2,486 2,518 2,927 2,677 2,689 5 Surplus vault cash at other institutions3 . 3,783 3,773 3,584 3,703 3,782 3,857 3,794 3.343 3,243 3,206 6 Reserve balances + total vault cash4 45,701 43,003 43.142 43.255 43,349 43,721 43,971 43,306 43,830 44.367 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,918 39.230 39,558 39,552 39,567 39,864 40,177 39,963 40,587 41,161 8 Required reserves (estimated) 41,606 38,873 39,284 39,192 39,257 39.573 39,866 39,579 40.183 40,798 9 Excess reserve balances at Reserve Banks4-6 312 357 274 360 310 291 311 384 404 363 10 Total borrowings at Reserve Banks 642 1,611 1,581 1.105 1,205 669 510 976 455 579 11 Seasonal borrowings at Reserve Banks 53 174 167 237 239 225 119 102 86 47 12 Extended credit at Reserve Banks .... 149 309 245 177 103 46 94 118 141 188 Weekly averages of daily figures for week ending 1982 Sept. 22 Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 Nov. 3 Nov. 10 Nov. 17 Nov. 24p 13 Reserve balances with Reserve Banks1 .... 24,543 23.486 23.496 22,555 25,854 24,929 24,366 23,457 24,987 25,338 14 Total vault cash (estimated) 18,744 20,422 20,045 20,327 18,391 19,280 20,166 20,175 19,905 18,687 15 Vault cash at institutions with required reserve balances2 13,251 14.131 13,983 13,762 13.014 13.683 14,070 13,904 13,662 13,543 16 Vault cash equal to required reserves at other institutions 2.460 2,934 2.769 3,032 2,370 2,476 2,807 2,948 2,884 2.289 17 Surplus vault cash at other institutions3 . 3,033 3,357 3.293 3,533 3,007 3,121 3,289 3,323 3,359 2,855 18 Reserve balances + total vault cash4 43,287 43,908 43,541 42,882 44,245 44,209 44,532 43,632 44,892 44.025 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 40,254 40,551 40,248 39,349 41,238 41,088 41,243 40,309 41,533 41,170 20 Required reserves (estimated) 40.004 40,266 39,737 38,887 40.977 40,769 40,701 39,967 41,135 40,858 21 Excess reserve balances at Reserve Banks4-6 250 285 511 462 261 319 542 342 398 312 22 Total borrowings at Reserve Banks 810 753 606 365 516 452 458 722 742 467 23 Seasonal borrowings at Reserve Banks 100 112 104 70 85 90 73 50 48 46 24 Extended credit at Reserve Banks .... 118 124 123 117 110 179 196 190 188 186 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. Before 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 clear- 3. Total vault cash at institutions without required reserve balances less vault ing 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 clearwith Board policy, effective Nov. 19, 1975, of permitting transitional relief on a ing balances plus vault cash used to satisfy reserve requirements less required graduated basis over a 24-month period when a nonmember bank merged into an reserves. (This measure of excess reserves is comparable to the old excess reserve concept published historically.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • December 1982 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1982, week ending Wednesday By maturity and source Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 21r Nov. 3 Nov. 10 Nov. 17 Nov. 24 One day and continuing contract 1 Commercial banks in United States 50,961r 60,508r 62,405r 56,073 52,462 55,305 61,256 59,847 55,162 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 24,267 24,162r 23,153 26,020 25,399 25,141 25,822 25,118 24,369 i Nonbank securities dealers 4.710 5,077 5.866 5,878 5,703 5,619 5,144 5,589 5,156 4 All other 20,728 21,228 22,012 22,814 23,922 23,766 24,429 24,060 23,808 All other maturities 5 Commercial banks in United States 4,400 4,212 4,461 4,044 33,,995555 44,,551155 3,900 33,,884477 44,,221199 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 8,171 8,065 8,740 8,473 8,285 8,516 8,821 8,917 9,118 7 Nonbank securities dealers 5,643 4,469 4,827 4,838 4,853 5,287 4,614 4,821 4,561 8 All other 9,289 8,745r 9,165 8,798 8,620 9,683 8,779 8,724 9,443 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 24,214 28,305r 28,045 25,163 24,207 25,903 25,394 25,998 21,865 10 Nonbank securities dealers 4,576 4.870 5,336 5,409 5,394 5,166 5,453 5,431 5,897 1. Banks with assets of SI billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit1 Short-term adjustment credit and seasonal credit First 60 days Next 90 days Federal Reserve of borrowing of borrowing After 150 days Bank Effective date for current rates Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 11/30/82 date rate 11/30/82 rate 11/30/82 rate 11/30/82 rate Boston 11/22/82 9Vi 9Vi 10W 11VS 11/22/82 New York... 11/22/82 11/22/82 Philadelphia . 11/22/82 11/22/82 Cleveland ... 11/26/82 11/26/82 Richmond... 11/22/82 11/22/82 Atlanta 11/22/82 11/22/82 Chicago 11/22/82 11/22/82 St. Louis 11/22/82 11/22/82 Minneapolis . 11/22/82 11/22/82 Kansas City . 11/22/82 11/22/82 Dallas 11/23/82 11/23/82 San Francisco 11/22/82 9Vi 9Vi lOVi llVi 11/22/82 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le ll v e F l) . — R. Ba of n k Effective date A le ll v el F )— .R . Ba of n k Effective date A le ll v e F l) . — R. Ba of n k Banks N.Y. Banks N.Y. Banks N.Y. I 1 n 9 7 e 4 f — fe ct A D p e r. c . 2 3 5 1 , 1973. 7V IV i-8 i IVi 1978— July 1 3 0 . . 7 7 V -7 4 ! /4 7 7 V V 4 4 1981— May 58. . 13 1 - 4 1 4 1 1 4 4 1975— J D a e n c . . 3 1 6 9 0 6 7 7V V 7 8 V 7 4 4 3 4 - / - 7 4 7 - 3 8 3 / / 4 4 7 7 7 7V 3 3 3 / / / 4 4 4 4 A N S O e o u c p t v g . t . . . 2 2 2 1 1 2 1 60 . . . . . 8V 7 8 8 i 3 V - - / 9 8 4 i V V i i 7 8 9 8 8 3 V 1 V / / 4 4 ! 4 1982— J N D u o e ly v c . . 20 4 6 2 . . . . ll 1 V 3 1 1 i - 3 2 - 1 1 4 2 ll 1 1 1 V 3 3 2 i 10 7Vi 7V4 3. 9Vi 9Vi 23. 11 Vi llVi 24 63/4 Aug. 2. 11-1IVi 11 M F M e a a b y r . . 1 1 1 0 5 6 7 4 6V 6 6 - 6 4 6 V 3 - 1 6 / 3 4 / 4 4 / 4 6 6 6 6 V V 3/4 4 4 1979— J A S u e u l p y g t . . 2 21 21 0 7 9 0 1 . . . . . l 1 O 0 1 l V - O 0 1 l 4 O V 1 - i V 1 1 i l 1 1 1 1 O 0 0 1 1 V W i Oct. 2 3 1 1 7 3 0 2 6 . . . . . K 9 M V lO 1 1 i O 1 V 0 -1 V i 0 i l 9 O 1 1 1 V 1 V 0 0 i i 23 6 6 Oct. 8. 11-12 12 13. 9Vi 9 Vi 1976— Jan. 19 5W-6 5W 10. 12 12 Nov. 2226. . 9-9W 9 23 5Vi 55VVi 4 9 9 Nov. 22 5V54-V5V4S 5V4 1980— Feb. 15. 12-13 13 26 19. 13 13 5V4 May 29. 12-13 13 1977— Aug. 30 51/4-53/4 53/4 30. 12 12 Sept. 3 2 1 5V543-5/34/4 53/4 June 1 1 3 6 . . 11 1 - 1 1 2 1 1 1 1 Oct. 26 6 6 July 28. 10-11 10 6-6V2 29. 10 10 1978— Jan. 9 6V2 66VV5 i Sept. 26. 11 11 20 Nov. 17. 12 12 May 11 6Vi-7 7 Dec. 5. 12-13 13 12 7 7 13 13 In effect Nov. 30, 1982 1. Applicable to advances when exceptional circumstances or practices involve In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adonly a particular depository institution and to advances when an institution is under justment credit borrowings by institutions with deposits of $500 million or more sustained liquidity pressures. See section 201.3(b)(2) of Regulation A. that had borrowed in successive weeks or in more than 4 weeks in a calendar 2. Rates for short-term adjustment credit. For description and earlier data see quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, the following publications of the Board of Governors: Banking and Monetary 1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1970-1979, and 1980. adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for applying the surcharge was changed from a calendar quarter to a moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • December 1982 1.15 DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the Type of deposit, and deposit interval Monetary Control Act Type of deposit, and Monetary Control Act5 in millions of dollars deposit interval Effective date Effective date Net demand2 Net transaction accounts6,7 0-2 7 12/30/76 $0-$26 million 11/13/80 21-01-01 00 11 9 3 V / i 4 1 1 2 2 / / 3 3 0 0 / / 7 7 6 6 Over $26 million H/13/80. 100-400 123/4 12/30/76 Nonpersonal time depositsf Over 400 I6V4 12/30/76 By original maturity Less than 3Pi years .... 4/29/82 Time and savings2,3 3V2 years or more 4/29/82 Savings Eurocurrency liabilities Time4 All types 11/13/80 0-5, by maturity 30-179 days 3 3/16/67 4 1 8 y 0 e d ar a s y s o r t o m 4 o r y e e a . r . s . 2 1 Vi 10/ 1 3 / 0 8 / / 7 7 5 6 Over 5, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2Vi 1/8/76 4 years or more ... 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual government and federal agency securities, federal funds borrowings from non- Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report for member institutions, and certain other obligations. In general, the base for the 1976, table 13. Under provisions of the Monetary Control Act, depository insti- marginal reserve requirement was originally the greater of (a) $100 million or (b) tutions include commercial banks, mutual savings banks, savings and loan asso- the average amount of the managed liabilities held by a member bank, Edge ciations, credit unions, agencies and branches of foreign banks, and Edge Act corporation, or family of U.S. branches and agencies of a foreign bank for the two corporations. statement weeks ending Sept. 26,1979. For the computation period beginning Mar. 2. Requirement schedules are graduated, and each deposit interval applies to 20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution's that part of the deposits of each bank. Demand deposits subject to reserve re- U.S. office gross loans to foreigners and gross balances due from foreign offices quirements were gross demand deposits minus cash items in process of collection of other institutions between the base period (Sept. 13—26, 1979) and the week and demand balances due from domestic banks. ending Mar. 12,1980, whichever was greater. For the computation period beginning The Federal Reserve Act as amended through 1978 specified different ranges of May 29,1980, the base was increased by iVi percent above the base used to calculate requirements for reserve city banks and for other banks. Reserve cities were des- the marginal reserve in the statement week of May 14-21, 1980. In addition, ignated under a criterion adopted effective Nov. 9, 1972, by which a bank having beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and net demand deposits of more than $400 million was considered to have the character balances declined. of business of a reserve city bank. The presence of the head office of such a bank 5. For existing nonmember banks and thrift institutions at the time of impleconstituted designation of that place as a reserve city. Cities in which there were mentation of the Monetary Control Act, the phase-in period ends Sept. 3, 1987. Federal Reserve Banks or branches were also reserve cities. Any banks having net For existing member banks the phase-in period is about three years, depending on demand deposits of $400 million or less were considered to have the character of whether their new reserve requirements are greater or less than the old requirebusiness of banks outside of reserve cities and were permitted to maintain reserves ments. For existing agencies and blanches of foreign banks, the phase-in ended at ratios set for banks not in reserve cities. Aug. 12, 1982. New institutions have a two-year phase-in beginning with the date Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances that they open for business, except for those institutions having total reservable due from domestic banks to their foreign branches and on deposits that foreign liabilities of $50 million or more. branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent 6. Transaction accounts include all deposits on which the account holder is respectively. The Regulation D reserve requirement on borrowings from unrelated permitted to make withdrawals by negotiable or transferable instruments, payment banks abroad was also reduced to zero from 4 percent. orders of withdrawal, and telephone and preauthorized transfers (in excess of three Effective with the reserve computation period beginning Nov. 16,1978, domestic per month) for the purpose of making payments to third persons or others. deposits of Edge corporations were subject to the same reserve requirements as 7. The Monetary Control Act of 1980 requires that the amount of transaction deposits of member banks. accounts against which the 3 percent reserve requirement will apply be modified 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as annually to 80 percent of the percentage increase in transaction accounts held by Christmas and vacation club accounts were subject to the same requirements as all depository institutions on the previous June 30. At the beginning of 1982 the savings deposits. amount was accordingly increased from $25 million to $26 million. The average reserve requirement on savings and other time deposits before 8. 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. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent was ferable time deposits held by natural persons, and certain obligations issued to imposed on large time deposits of $100,000 or more, obligations of affiliates, and depository institution offices located outside the United States. For details, see ineligible acceptances. This supplementary requirement was eliminated with the section 204.2 of Regulation D. maintenance period beginning July 24, 1980. The category of time deposit authorized by the Depository Institutions Dereg- Effective with the reserve maintenance period beginning Oct. 25, 1979, a mar- ulation Committee (DIDC), effective Sept. 1, 1982 (original maturity or required ginal reserve requirement of 8 percent was added to managed liabilities in excess notice period of 7 to 31 days, required minimum deposit balance of $20,000, and of a base amount. This marginal requirement was increased to 10 percent beginning ceiling rate tied to the 91-day Treasury bill rate), is classified as a time deposit for Apr. 3, 1980, was decreased to 5 percent beginning June 12,1980, and was reduced reserve requirement purposes. to zero beginning July 24, 1980. Managed liabilities are defined as large time deposits, Eurodollar borrowings, repurchase agreements against U.S. 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 All 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Savings and loan associations and Commercial banks mutual savings banks (thrift institutions) Type and maturity of deposit In effect November 30, 1982 Previous maximum In effect November 30, 1982 Previous maximum Eff d e a c te ti ve Eff d e a c te ti ve Eff d e a c t t e i ve Percent Eff d e a c te ti ve 2 1 N Sa e v g i o n t g i s a ble order of withdrawal accounts 2 .. 551 lA/ 4 12 7 /3 /1 1 / / 7 8 9 0 7 1 / / 1 1 / / 7 7 3 4 5 5V V 4 z 12 7 /3 /1 1 / / 7 8 9 0 5 5 V4 1 ( / * 1 ) /7 4 Time accounts 3 Fixed ceiling rates by maturity 4 3 4 9 1 0 4 - d 8 a 9 y s d a t y o s 1 ' year 5 53 » /4 /4 8 1 / / 1 1 / / 7 80 9 5S Vi 7 7 / / 1 1 / /7 7 3 3 6 ( <•) 1/1/80 (6) 55 33/4/ 4 (') 5 6 7 2 2 1 1 / t t o o 2 t 2 2 o V y 4 i e y a y e r e s a a r r ' s s 7 7 6Vi 7 7 / / 1 1 / / 7 7 3 3 5 5 5 3 3 V / / 4 4 i 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 63 V /4 i ( O ') 6 6 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 9 8 6 4 t t o o 8 6 y y e e a a r r s s 8 8 7 7 V V 4 i 12 1 / 1 2 / 3 1 / / 7 7 4 3 7'/4 11/1/73 7 71 3 A /4 12 1 / 1 2 / 3 1 / / 7 7 4 3 IVi i1/1/73 10 8 years or more 8 73/4 6/1/78 8 6/1/78 11 Issued to governmental units (all 73/4 maturities) 10 6/1/78 73/4 12/23/74 8 6/1/78 12/23/74 12 IRAs o r a n m d o K re e ) o ™ gh u ( H.R. 10) plans (3 years 6/1/78 73/4 7/6/77 8 6/1/78 73/4 7/6/77 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loans. 9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or 2. Federally insured commercial banks, savings and loan associations, cooperative more with minimum denominations of $1,000 had no ceiling; however, the amount banks, and mutual savings banks in Massachusetts and New Hampshire were first of such certificates that an institution could issue was limited to 5 percent of its permitted to offer negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974. total time and savings deposits. Sales in excess of that amount, as well as certificates Authorization to issue NOW accounts was extended to similar institutions through- of less than $1,000, were limited to the 6'/i percent ceiling on time deposits maturing out New England on Feb. 27, 1976, in New York State on Nov. 10, 1978, New in 2Vi years or more. Effective Nov. 1, 1973, ceilings were reimposed on certificates Jersey on Dec. 28, 1979, and to similar institutions nationwide effective Dec. 31, maturing in 4 years or more with minimum denomination of $1,000. There is no 1980. limitation on the amount of these certificates that banks can issue. 3. For exceptions with respect to certain foreign time deposits see the BULLETIN 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denomfor October 1962 (p. 1279), August 1965 (p. 1084), and February 1968 (p. 167). ination requirements. 4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts 11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate at savings and loan associations was decreased to 14 days and the minimum maturity as thrifts on IRA and Keogh accounts and accounts of governmental units when period for time deposits at savings and loan associations in excess of $100,000 was such deposits are placed in 2V5-year-or-more variable-ceiling certificates or in 26decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice week money market certificates regardless of the level of the Treasury bill rate. period for time deposits was decreased from 30 to 14 days at mutual savings banks. 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally deposits was decreased from 30 to 14 days at commercial banks. insured commercial banks, mutual savings banks, and savings and loan associations 6. No separate account category. were established by the Board of Governors of the Federal Reserve System, the 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was Board of Directors of the Federal Deposit Insurance Corporation, and the Federal required for savings and loan associations, except in areas where mutual savings Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 rebanks permitted lower minimum denominations. This restriction was removed for spectively. Title II of the Depository Institutions Deregulation and Monetary Condeposits maturing in less than 1 year, effective Nov. 1, 1973. trol Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish 8. No minimum denomination. Until July 1, 1979, the minimum denomination maximum rates of interest payable on deposits to the Depository Institutions Dewas $1,000 except for deposits representing funds contributed to an individual regulation Committee. The maximum rates on time deposits in denominations of retirement account (IRA) or a Keogh (H.R. 10) plan established pursuant to the $100,000 or more with maturities of 30-89 days were suspended in June 1970; the Internal Revenue Code. The $1,000 minimum requirement was removed for such maximum rates for such deposits maturing in 90 days or more were suspended in accounts in December 1975 and November 1976 respectively. May 1973. For information regarding previous interest rate ceilings on all types of accounts, see earlier issues of the FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal, and the Annual Report of the Federal Deposit Insurance Corporation. For deposits subject to variable ceiling rates and deposits not subject to interest rate ceilings see page A10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancial Statistics • December 1982 1.16 Continued TIME DEPOSITS SUBJECT TO VARIABLE CEILING RATES 7- to 31-day time deposits. Effective Sept. 1, 1982, depository institutions are authorized to issue nonnegotiable time deposits of $20,000 or more with a maturity The maximum rates in November 1982 for commercial banks based on the bill rate or required notice period of 7 to 31 days. The maximum rate of interest payable were as follows: Nov. 2, 8.481; Nov. 9, 8.647; Nov. 16, 8.789; Nov. 23, 8.359; and by thrift institutions is the rate established and announced (auction average on a based on the 4-week average bill rate were as follows: Nov. 2, 8.299; Nov. 9. 8.466; discount basis) for U.S. Treasury bills with maturities of 91 days at the auction Nov. 16, 8.660; Nov. 23, 8.569. The maximum allowable rates in November 1982 held immediately before the date of deposit or renewal ("bill rate"). Commercial for thrifts based on the bill rate were as follows: Nov. 2, 8.731; Nov. 9, 8.897; banks may pay the bill rate minus 25 basis points. The interest rate ceiling is Nov. 16, 9.000; Nov. 23, 8.609; and based on the 4-week average bill rate were as suspended when the bill rate is 9 percent or below for the four most recent auctions follows: Nov. 2 , 8.549; Nov. 9, 8.716; Nov. 16, 8.910; Nov. 23, 8.819. held before the date of deposit or renewal. The interest rate ceiling was suspended for the entire month of November 1982. 12-month all savers certificates. Effective Oct. 1, 1981, depository institutions are authorized to issue all savers certificates (ASCs) with a 1-year maturity and an 91-day time deposits. Effective May 1, 1982, depository institutions were au- annual investment yield equal to 70 percent of the average investment yield for thorized to offer time deposits that have a minimum denomination of $7,500 and 52-week U.S. Treasury bills as determined by the auction of 52-week Treasury bills a maturity of 91 days. The ceiling rate of interest on these deposits is indexed to held immediately before the calendar week in which the certificate is issued. A the discount rate (auction average) on most recently issued 91-day Treasury bills maximum lifetime exclusion of $1,000 ($2,000 on a joint return) from gross income for thrift institutions and the discount rate minimum 25 basis points for commercial is generally authorized for interest income from ASCs. The annual investment yield banks. The rate differential ends 1 year from the effective date of these instruments for ASCs issued in November 1982 (in percent) was as follows: Nov. 28, 6.40. and is suspended at any time the Treasury bill discount rate is 9 percent or below for four consecutive auctions. The maximum allowable rates in November 1982 (in 2l/2-year to less than 3>/2-year time deposits. Effective Aug. 1, 1981, commercial percent) for commercial banks and thrifts were as follows: Nov. 2, 7.831; Nov. 9, banks are authorized to pay interest on any variable ceiling nonnegotiable time 7.964; Nov. 16, 8.446; Nov. 23, 7.944. deposit with an original maturity of 2V5 years to less than 4 years at a rate not to exceed lA of 1 percent below the average 2'/5-year yield for U.S. Treasury securities Six-month money market time deposits. Effective June 1, 1978, commercial banks as determined and announced by the Treasury Department immediately before and thrift institutions were authorized to offer time deposits with a maturity of the date of deposit. Effective May 1, 1982, the maximum maturity for this category exactly 26 weeks and a minimum denomination requirement of $10,000. The ceiling of deposits was reduced to less than 3V5 years. Thrift institutions may pay interest rate of interest on these deposits is indexed to the discount rate (auction average) on these certificates at a rate not to exceed the average 2Vi-year yield for Treasury on most recently issued 26-week U.S. Treasury bills. Interest on these certificates securities as determined and announced by the Treasury Department immediately may not be compounded. Effective for all 6-month money market certificates issued before the date of deposit. If the announced average 2'/2-year yield for Treasury beginning Nov. 1, 1981, depository institutions may pay rates of interest on these securities is less than 9.50 percent, commercial banks may pay 9.25 percent and deposits indexed to the higher of (1) the rate for 26-week Treasury bills established thrift institutions 9.50 percent for these deposits. These deposits have no required immediately before the date of deposit (bill rate) or (2) the average of the four minimum denomination, and interest may be compounded on them. The ceiling rates for 26-week Treasury bills established for the 4 weeks immediately before rates of interest at which they may be offered vary biweekly. The maximum althe date of deposit (4-week average bill rate). Ceilings are determined as follows: lowable rates in November 1982 (in percent) for commercial banks were as follows: Nov. 9, 9.60; Nov. 23, 9.65; and for thrifts: Nov. 9, 9.85; Nov. 23. 9.90. Bill rate or 4-week Commercial bank ceiling Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks and thrift institutions average bill rate were authorized to offer variable ceiling nonnegotiable time deposits with no re- 7.50 percent or below 7.75 percent quired minimum denomination and with maturities of 2l/l years or more. Effective Above 7.50 percent of 1 percentage point plus the higher of the Jan. 1, 1980, the maximum rate for commercial banks was 3/4 percentage point bill rate or 4-week average bill rate below the average yield on 2'/5-year U.S. Treasury securities; the ceiling rate for thrift institutions was '/4 percentage point higher than that for commercial banks. Thrift ceiling Effective Mar. 1, 1980, a temporary ceiling of ll3/4 percent was placed on these 7.25 percent or below 7.75 percent accounts at commercial banks and 12 percent on these accounts at savings and Above 7.25 percent, but below 8.50 Vi of 1 percentage point plus the higher of the loans. Effective June 2, 1980, the ceiling rates for these deposits at commercial percent bill rate or 4-week average bill rate banks and savings and loans were increased Vi percentage point. The temporary 8.50 percent or above, but below 9 percent ceiling was retained, and a minimum ceiling of 9.25 percent for commercial banks 8.75 percent and 9.50 percent for thrift institutions was established. 8.75 percent or above lA of 1 percentage point plus the higher of the bill rate or 4-week average bill rate TIME DEPOSITS NOT SUBJECT TO INTEREST RATE CEILINGS, BY MATURITY IRAs and Keogh (H.R.10) plans (18 months or more). Effective Dec. 1. 1981, Time deposits of3'/2 years or more. Effective May 1, 1982, depository institutions depository institutions are authorized to offer time deposits not subject to interest are authorized to offer negotiable or nonnegotiable time deposits with a minimum rate ceilings when the funds are deposited to the credit of, or in which the entire original maturity of 3Vi years or more that are not subject to interest rate ceilings. beneficial interest is held by, an individual pursuant to an IRA agreement or Keogh Such time deposits have no minimum denomination, but must be made available (H.R.10) plan. Such time deposits must have a minimum maturity of 18 months, in a $500 denomination. Additional deposits may be made to the account during and additions may be made to the time deposit at any time before its maturity the first year without extending its maturity. without extending the maturity of all or a portion of the balance of the account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1982 TTyyppee ooff ttrraannssaaccttiioonn 11997799 11998800 11998811 Apr. May June July Aug. Sept. Oct. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 15,998 7,668 13,899 4,149 595 1,559 1,905 1,721 425 774 2 Gross sales 6,855 7,331 6,746 0 519 0 1,175 651 674 0 3 Exchange 0 0 0 0 0 200 -200 0 0 0 4 Redemptions 2,900 3,389 1,816 0 400 0 200 600 400 0 Others within 1 year1 5 Gross purchases 3,203 912 317 132 0 0 71 0 0 0 6 Gross sales 0 0 23 0 0 0 0 0 0 0 7 Maturity shift 17,339 12,427 13,794 333 1,498 988 382 4,938 733 623 8 Exchange -11,308 -18,251 -12,869 -525 -2,541 -1,249 0 -3,914 -650 0 9 Redemptions 2,600 0 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 2,148 2,138 1,702 570 0 0 691 0 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -12,693 -8,909 -10,299 -333 -1,000 -988 -382 -4,938 0 -623 13 Exchange 7,508 13,412 10,117 525 1,600 1,049 200 3,078 0 0 5 to 10 years 14 Gross purchases 523 703 393 81 0 0 113 0 0 0 1.*) Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -4,646 -3,092 -3,495 0 -498 0 0 601 -733 0 17 Exchange 2,181 2,970 1,500 0 941 0 0 837 650 0 Over 10 years 18 Gross purchases 454 811 379 52 0 0 123 0 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 -601 0 0 21 Exchange 1,619 1,869 1,253 0 0 0 0 0 0 0 All maturities1 22 Gross purchases 22,325 12,232 16,690 4,984 595 1,559 2,903 1,721 425 774 23 Gross sales 6,855 7,331 6,769 0 519 0 1,175 651 674 0 24 Redemptions 5,500 3,389 1,816 0 400 0 200 600 400 0 Matched transactions 25 Gross sales 627,350 674,000 589,312 44,748 36,047 41,509 54,646 39,403 51,983 45,655 26 Gross purchases 624,192 675,496 589,647 44,759 36,790 37,548 58,753 37,962 51,554 46,370 Repurchase agreements 27 Gross purchases 107,051 113,902 79,920 18,396 10,155 5,332 18,267 3,755 9,649 5,618 28 Gross sales 106,968 113,040 78,733 14,724 15,424 5,332 18,267 2,567 7,035 9,420 29 Net change in U.S. government securities 6,896 3,869 9,626 8,667 -4,850 -2,402 5,636 217 1,535 -2,313 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 853 668 494 0 0 0 0 0 0 0 31 Gross sales 399 0 0 0 0 0 0 0 0 0 32 Redemptions 134 145 108 5 1 6 1 46 5 6 Repurchase agreements 33 Gross purchases 37,321 28,895 13,320 2,033 1,305 831 4,389 1,095 1,997 1,776 34 Gross sales 36,960 28,863 13,576 1,119 2,301 831 4,389 866 1,225 2,778 35 Net change in federal agency obligations 681 555 130 909 -997 -6 -1 183 767 -1,008 BANKERS ACCEPTANCES 36 Repurchase agreements, net 116 73 -582 280 -768 0 0 565 248 -813 37 Total net change in System Open Market Account 7,693 4,497 9,175 9,856 -6,615 -2,408 5,634 966 2,550 -4,134 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

A12 DomesticN onfinancial Statistics • December 1982 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1982 1982 Oct. 27 Nov. 3 Nov. 10 Nov. 17 Nov. 24 Sept. Oct. Nov. Consolidated condition statement ASSETS 1 Gold certificate account 11,148 11,148 11,148 11,148 11,148 11,148 11,148 11,148 2 Special drawing rights certificate account 4,218 4.218 4,418 4,418 4,418 4,218 4,218 4,418 3 Coin 462 458 453 447 445 450 468 436 Loans 4 To depository institutions 822 758 3,208 425 804 1,123 438 374 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 0 0 0 0 0 813 0 0 Federal agency obligations 7 Bought outright 8,943 8,943 8,943 8,943 8,943 8,949 8,943 8,943 8 Held under repurchase agreements 0 0 0 0 0 1,001 0 0 U.S. government securities Bought outright 9 Bills 52,322 51,823 52,775 53,579 53,448 50,309 51,798 56,494 10 Notes 62,018 62,018 62,018 61,858 62,626 62,018 62,018 62,626 11 Bonds 18,264 18,264 18,264 18,424 18,556 18,264 18,264 18,556 12 Total1 132,604 132,105 133,057 133,861 134,630 130,591 132,080 137,676 13 Held under repurchase agreements 0 0 0 0 0 3,802 0 0 14 Total U.S. government securities 132,604 132,105 133,057 133,861 134,630 134,393 132,080 137,676 15 Total loans and securities 142,369 141,806 145,208 143,229 144,377 146,279 141,461 146,993 16 Cash items in process of collection 8,509 11,540 8,668 10,972 9,830 6,779 8,352 11,893 17 Bank premises 543 545 545 546 546 541 544 546 Other assets 18 Denominated in foreign currencies2 5,345 5,317 5,341 5,356 5,360 5,116 5,325 5,649 19 All other3 4,218 4,474 4,229 2,702 2,978 4,016 4,262 3,490 20 Total assets 176,812 179,506 180,010 178,818 179,102 178,547 175,778 184,573 LIABILITIES 21 Federal Reserve notes 136,313 137,281 138,799 138,818 139,326 135,197 136.048 139,989 Deposits 22 Depository institutions 25,777 26,085 26,125 23,127 24,153 20,318 24,678 26,533 23 U.S. Treasury—General account 3,169 3,154 3,166 3,836 3,394 10,975 2.309 2,247 24 Foreign—Official accounts 220 300 290 214 261 396 327 387 25 Other 464 464 553 546 594 394 449 716 26 Total deposits 29,630 30,003 30,134 27,723 28,402 32,083 27,763 29,883 27 Deferred availability cash items 6,216 7,604 6,453 7,648 6,799 6,220 7.184 9,492 28 Other liabilities and accrued dividends4 1,671 1,648 1,625 1,632 1,581 2,027 1,669 1,799 29 Total liabilities 173,830 176,536 177,011 175,821 176,108 175,527 172,664 181,163 CAPITAL ACCOUNTS 30 Capital paid in 1,350 1,351 1,354 1,354 1,354 1,341 1,350 1,354 31 Surplus 1,278 1,278 1,278 1,278 1,278 1,278 1,278 1,278 32 Other capital accounts 354 341 367 365 362 401 486 778 33 Total liabilities and capital accounts 176,812 179,506 180,010 178,818 179,102 178,547 175,778 184,573 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 100,203 101,394 102,420 103,372 103,541 98,192 101,831 101,703 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) .... 157,281 157,578 157,707 158,275 159,023 156,412 157,348 159,408 36 LESS: Held by bank5 20,968 20,297 18,908 19,457 19,697 21,215 21,300 19,419 37 Federal Reserve notes, net 136,313 137,281 138,799 138,818 139,326 135,197 136,048 139,989 Collateral for Federal Reserve notes 38 Gold certificate account 11,148 11,148 11.148 11,148 11,148 11.148 11,148 11,148 39 Special drawing rights certificate account 4,218 4,218 4,418 4,418 4,418 4,218 4.218 4,418 40 Other eligible assets 0 66 78 51 107 0 14 0 41 U.S. government and agency securities 120,947 121,849 123,155 123,201 123,653 119,831 120.668 124,423 42 Total collateral 136,313 137,281 138,799 138,818 139,326 135,197 136,048 139,989 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 the collateral requirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks; Banking Aggregates A13 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1982 1982 Oct. 27 Nov. 3 Nov. 10 Nov. 17 Nov. 24 Sept. 30 Oct. 31 Nov. 30 1 Loans—Total 822 758 3,208 425 804 1,123 438 374 2 Within 15 days 788 729 3,173 416 785 1,076 398 356 3 16 days to 90 days 34 29 35 9 19 47 40 18 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 813 0 0 76 Within 15 days 0 0 0 0 0 813 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 132,604 132,105 133,057 133,861 134,630 134,393 132,080 137,676 10 Within 15 days1 2,652 5,238 3,362 5,682 5,830 5,743 2,652 5,515 11 16 days to 90 days 28,224 25,970 27,568 26,404 26,116 24,429 28,465 30,242 12 91 days to 1 year 37,288 36,602 37,832 38,595 38,691 39,781 36,523 38,185 13 Over 1 year to 5 years 35,891 35,746 35,746 34,837 35,322 35,891 35,891 35,065 14 Over 5 years to 10 years 12,267 12,267 12,267 11,901 12,095 12,267 12,267 12,095 15 Over 10 years 16,282 16,282 16,282 16,442 16,576 16,282 16,282 16,574 16 Federal agency obligations—Total 8,943 8,943 8,943 8,943 8,943 9,950 8,943 8,943 17 Within 15 days1 83 0 0 128 128 1,208 83 161 18 16 days to 90 days 490 590 590 462 462 407 490 528 19 91 days to 1 year 1,966 1,949 1,985 1,985 1,985 1,863 1,966 1,988 20 Over 1 year to 5 years 4,962 4,962 4,926 4,926 4,926 5,087 4,962 4,804 21 Over 5 years to 10 years 924 924 924 924 924 882 924 944 22 Over 10 years 518 518 518 518 518 503 518 518 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1982 IItteemm D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . D 19 e 8 c 1 . Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 32.82 34.26 36.46 37.99 38.43 38.50 38.58 38.52 38.80 39.57 39.88 40.48 2 Nonborrowed reserves 31.95 32.79 34.77 37.35 36.87 37.39 37.37 37.83 38.29 38.63 39.40 39.85 3 Required reserves 32.59 33.93 35.95 37.67 38.16 38.15 38.27 38.21 38.49 39.18 39.47 40.06 4 Monetary base4 132.2 142.5 155.0 162.7 166.5 167.7 168.8 169.2 170.1 171.9 172.9 173.8 Not seasonally adjusted 5 Total reserves3 33.37 34.83 37.11 38.66 38.33 38.19 38.07 38.43 38.51 39.35 40.00 40.70 6 Nonborrowed reserves 32.50 33.35 35.42 38.03 36.76 37.07 36.86 37.74 38.00 38.42 39.52 40.08 7 Required reserves 33.13 34.50 36.59 38.34 38.06 37.83 37.76 38.12 38.20 38.97 39.59 40.28 8 Monetary base4 134.8 145.4 158.0 165.8 165.6 167.1 168.2 170.0 170.4 171.4 173.0 175.2 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 9 Total reserves3 41.68 43.91 40.66 41.92 39.56 39.55 39.57 39.97 40.18 39.96 40.59 41.22 10 Nonborrowed reserves 40.81 42.43 38.97 41.29 37.99 38.43 38.36 39.28 39.66 39.03 40.11 40.60 11 Required reserves 41.45 43.58 40.15 41.60 39.28 39.19 39.26 39.65 39.87 39.58 40.18 40.80 12 Monetary base4 144.6 156.2 162.4 169.7 167.6 169.2 170.4 172.3 172.8 172.3 173.8 176.1 For notes see bottom of next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 DomesticN onfinancial Statistics • December 1982 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1982 IItteemm D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . D 19 e 8 c 1 . June July Aug. Sept. Oct. Seasonally adjusted MEASURES1 1 Ml 363.2 389.0 414.5 440.9 451.4 451.3 455.2 460.5 468.3 2 M2 1,403.9 1,518.9 1,656.2 1,822.7 1,907.9 1,923.4 1,946.3 1,954.4 1,967.9 3 M3 1,629.0 1,779.4 1,963.1 2,188.1 2,296.0' 2,320.2' 2,355.9' 2,363.5' 2,381.7 4 L2 1,938.9 2,153.9 2,370.4 2,642.8 2,799.2' 2,832.3' 2,858.9 n.a. n.a. SELECTED COMPONENTS 5 Currency 97.4 106.1 116.2 123.1 128.4 128.8 129.5 130.5 131.2 6 Traveler's checks3 3.5 3.7 4.2 4.3 4.5 4.4 4.4 4.4 4.4 7 Demand deposits 253.9 262.2 267.2 236.4 231.0 230.6 231.1 232.6 236.1 8 Other checkable deposits4 8.4 16.9 26.9 77.0 87.5 87.4 90.2 93.0 96.5 9 Savings deposits5 479.9 421.7 398.9 343.6 349.9 344.0 342.0' 342.5 352.6 10 Small-denomination time deposits6 533.9 652.6 751.7 854.7 900.9 919.7 930.6 932.6 924.0 11 Large-denomination time deposits7 194.6 221.8 257.9 300.3 328.3 335.8 339.6 339.3' 342.9 Not seasonally adjusted MEASURES1 12 Ml 372.5 398.8 424.6 451.2 450.5 454.0 454.0 460.5 470.1 13 M2 1,408.5 1,524.7 1,662.5 1,829.4 1,906.4 1,924.8 1,938.9' 1,950.7' 1971.8 14 M3 1,637.5 1,789.2 1,973.9 2,199.9 2,290.0 2,314.1 2,342.5' 2,356.1' 2,383.0 15 L2 1,946.6 2,162.8 2,380.2 2,653.8 2,794.4' 2,820.8' 2,844.1 n.a. n.a. SELECTED COMPONENTS 16 Currency 99.4 108.2 118.3 125.4 128.3 129.8 130.0 130.2 131.2 17 Traveler's checks3 3.3 3.5 3.9 4.1 4.7 4.9 4.9 4.7 4.5 18 Demand deposits 261.5 270.1 275.1 243.3 230.4 231.5 229.3 232.4 237.1 19 Other checkable deposits4 8.4 17.0 27.2 78.4 87.2' 87.9' 89.8 93.2 97.3 20 Overnight RPs and Eurodollars8 24.1 26.3 35.0 38.1 43.0' 43.4 44.5 43.3' 46.3 21 Savings deposits5 478.0 420.5 398.0 343.0 347.9 348.3 346.1' 347.4 357.0 22 Small-denomination time deposits6 531.1 649.7 748.9 851.7 902.3 914.1 920.2 923.9 921.7 Money market mutual funds 23 General purpose and broker/dealer 7.1 34.4 61.9 151.2 168.6 171.3 180.0 181.9 183.4 24 Institution only 3.1 9.3 13.9 33.7 33.7 36.7 43.1 43.9 44.8 25 Large-denomination time deposits7 198.6 226.0 262.3 305.4 323.9 328.3 333.7 335.7' 340.3 1. Composition of the money stock measures is as follows: 3. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank Ml: Averages of daily figures for (1) currency outside the Treasury, Federal issuers. Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- 4. Includes ATS and NOW balances at all institutions, credit union share draft bank issuers; (3) demand deposits at all commercial banks other than those due balances, and demand deposits at mutual savings banks. to domestic banks, the U.S. government, and foreign banks and official institutions 5. Excludes NOW and ATS accounts at commercial banks and thrift institutions less cash items in the process of collection and Federal Reserve float; and (4) and CUSDs at credit unions. negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- 6. Issued in amounts of less than $100,000 and includes retail RPs. counts at banks and thrift institutions, credit union share draft (CUSD) accounts, 7. Issued in amounts of $100,000 or more and are net of the holdings of domestic and demand deposits at mutual savings banks. banks, thrift institutions, the U.S. government, money market mutual funds, and M2: Ml plus savings and small-denomination time deposits at all depository foreign banks and official institutions. institutions, overnight repurchase agreements at commercial banks, overnight Eu- 8. Overnight (and continuing contract) RPs are those issued by commercial rodollars held by U.S. residents other than banks at Caribbean branches of member banks to other than depository institutions and money market mutual funds (general banks, and balances of money market mutual funds (general purpose and broker/ purpose and broker/aealer), and overnight Eurodollars are those issued oy Cadealer). ribbean branches of member banks to U.S. residents other than depository insti- M3: M2 plus large-denomination time deposits at all depository institutions, term tutions and money market mutual funds (general purpose and broker/dealer). RPs at commercial banks and savings ana loan associations, and balances of in- NOTE. Latest monthly and weekly figures are available from the Board's H.6 stitution-only money market mutual funds. (508) release. Back data are available from the Banking Section, Division of Re- 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents search and Statistics, Board of Governors of the Federal Reserve System, Washother than banks, bankers acceptances, commercial paper, Treasury bills and other ington, D.C. 20551. liquid Treasury securities, and U.S. savings bonds. NOTES TO TABLE 1.20 1. Reserve aggregates include required reserves of member banks and Edge Act phase-in program of the Monetary Control Act of 1980, the net changes in required corporations ana other depository institutions. Discontinuities associated with the reserves of depository institutions have been as follows: Effective Nov. 13, 1980, implementation of the Monetary Control Act, the inclusion of Edge Act corporation a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245 million: Mar. 12, reserves, and other changes in Regulation D have been removed. Beginning with 1981, an increase of $75 million; May 14, 1981, an increase of $245 million; Aug. the week ended December 23,1981, reserve aggregates have been reduced by shifts 13, 1981, an increase of $230 million; Sept. 3, 1981, a reduction of $1.1 billion; of reservable liabilities to international banking facilities (IBFs). On the basis of Nov. 12,1981, an increase of $210 million; Jan. 14,1982, a reduction of $60 million; reports of liabilities transferred to IBFs by U.S. commercial banks and U.S. agen- Feb. 11,1982 an increase of $170 million; Mar. 4, 1982, an estimated reduction of cies and branches of foreign banks, it is estimated that required reserves were $2.0 billion; May 13, 1982, an estimated increase of $150 million; Aug. 12, 1982 lowered on average $10 million to $20 million in December 1981 and $40 million an estimated increase of $140 million; and Sept. 2, 1982, an estimated reduction to $70 million in January 1982. of $1.2 billion. Beginning with the week ended December 23, 1981, reserve ag- 2. Reserve balances with Federal Reserve Banks (which exclude required clear- gregates have been reduced by shifts of reservable liabilities to IBFs. On the basis ing balances) plus vault cash at institutions with required reserve balances plus of reports of liabilities transferred to IBFs by U.S. commercial banks and U.S. vault cash equal to required reserves at other institutions. agencies and branches of foreign banks, it is estimated that required reserves were 3. Includes reserve balances and required clearing balances at Federal Reserve lowered on average by $60 million to $90 million in December 1981 and $180 Banks in the current week plus vault cash held two weeks earlier used to satisfy million to $230 million in January 1982, mostly reflecting a reduction in reservable reserve requirements at all depository institutions plus currency outside the U.S. Eurocurrency transactions. Treasury, Federal Reserve Banks, the vaults of depository institutions, and surplus vault cash at depository institutions. NOTE. Latest monthly and weekly figures are available from the Board's H.3(502) 4. Reserves of depository institutions series reflect actual reserve requirement statistical release. Back data and estimates of the impact on required reserves and percentages with no adjustments to eliminate the effect of changes in Regulation changes in reserve requirements are available from the Banking Section, Division D, including changes associated with the implementation of the Monetary Control of Research and Statistics, Board of Governors of the Federal Reserve System, Act. Includes required reserves of member banks and Edge Act corporations and Washington, D.C. 20551. beginning November 13,1980, other depository institutions. Under the transitional Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A15 1.22 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1982 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 19791 19801 19811 May June July Aug. Sept. Oct. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 49,903.0 62,757.8 80,858.7 88,573.8 87,602.3 90,280.7 95,177.9 94,480.0 97,097.0 2 Major New York City banks 18,481.7 25,156.1 33,891.9 37,248.2 35,729.5 36,880.8 39,525.3 37,986.3 42,077.9 3 Other banks 31,421.3 37,601.7 46,966.9 51,325.7 51,872.8 53,399.9 55,652.6 56,493.7 55,019.1 4 ATS-NOW accounts3 84.4 159.3 743.4 900.5 977.6 1,049.9 1,146.2 1,165.4 1,109.4 5 Savings deposits4 547.9 670.0 672.7 712.2 698.9 773.8 770.7 707.8 637.0 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 162.8 198.7 285.8 319.3 318.7 325.0 341.6 341.0 343.0 7 Major New York City banks 634.2 803.7 1,105.1 1,287.8 1,295.9 1,265.7 1,424.2 1,282.5 1,298.7 8 Other banks 113.3 132.2 186.2 206.6 209.8 214.8 221.8 228.3 219.5 9 ATS-NOW accounts3 7.8 9.7 14.0 13.1 14.2 15.3 16.2 15.9 14.7 10 Savings deposits4 2.7 3.6 4.1 4.5 4.4 5.0 5.0 4.6 4.0 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 49,777.3 63,124.4 81,197.9 82,913.9 92,867.2 91,318.9 94,968.5 95,557.1 93,543.3 12 Major New York City banks 18,487.8 25,243.1 34,032.0 34,585.7 38,286.7 37,502.5 39,126.7 39,634.0 39,657.6 13 Other banks 31,289.4 37,881.3 47,165.9 48,328.2 54,580.6 53,816.4 55,841.8 55,923.1 53,885.7 14 ATS-NOW accounts3 83.3 158.0 737.6 891.7 1,046.0 1,021.0 1,020.5 1,097.3 1,098.0 15 Savings deposits4 548.1 669.8 672.9 680.8 694.4 778.2 763.7 695.2 672.7 DEPOSIT TURNOVER Demand deposits2 16 All insured banks 163.3 202.3 286.1 304.5 339.6 328.2 346.9 345.3 327.8 17 Major New York City banks 644.1 814.8 1,114.2 1,218.1 1,361.3 1,305.8 1,472.8 1,362.5 1,220.8 18 Other banks 113.4 134.8 186.2 198.1 222.5 215.7 225.9 225.8 213.1 19 ATS-NOW accounts3 7.8 9.7 14.0 13.2 15.2 14.8 14.4 15.0 14.5 20 Savings deposits4 2.7 3.6 4.1 4.3 4.4 4.9 4.9 4.4 4.2 1. Annual averages of monthly figures. NOTE. Historical data for demand deposits are available back to 1970 estimated 2. Represents accounts of individuals, partnerships, and corporations and of in part from the debits series for 233 SMSA's that were available through June states and political subdivisions. 1977. Historical data for ATS-NOW and savings deposits are available back to 3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts July 1977. Back data are available on request from the Banking Section, Division authorized for automatic transfer to demand deposits (ATS). ATS data availability of Research and Statistics, Board of Governors of the Federal Reserve System, starts with December 1978. Washington, D.C. 20551. 4. Excludes ATS and NOW accounts as well as special club accounts, such as Christmas and vacation clubs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • December 1982 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1981 1982 1981 1982 Cate rv Dec.2 June3 July Aug. Sept.4 Oct. Dec.2 June3 July Aug. Sept.4 Oct. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities5 1,316.3 1,368.8 1,376.1 1,383.1 1,389.4 1,397.7 1,326.1 1,366.3 1,370.4 1,377.7 1,391.0 1,403.0 2 U.S. Treasury securities 111.0 115.8 116.5 117.8 118.2 122.4 111.4 116.1 115.6 116.4 117.8 121.4 3 Other securities 231.4 235.9 235.9 237.1 237.6 237.3 232.8 235.6 234.7 236.4 237.7 237.6 4 Total loans and leases5 973.9 1,017.1 1.023.7 1,028.3 11,,003333..55 11,,003388..00 981.8 11,,001144..66 1,020.1 11,,002244..99 11,,003355..55 1,044.0 5 Commercial and industrial loans 358.0 383.4 386.7 387.9 392.5 394.8 360.1 382.7 385.5 385.5 392.1 395.5 6 Real estate loans 285.7 297.3 297.5 298.5 299.5 300.4 286.8 295.8 296.6 298.2 300.1 301.6 7 Loans to individuals 185.1 188.2 189.2 189.5 189.6 190.0 186.4 187.4 188.3 189.7 190.9 191.5 8 Security loans 21.9 19.5 21.0 21.4 22.6 24.2 22.7 20.5 20.5 22.0 22.3 23.9 9 Loans to nonbank financial institutions 30.2 33.6 33.9 33.2 32.6 32.4 31.2 33.1 33.3 33.1 32.8 32.7 10 Agricultural loans 33.0 35.3 35.7 36.0 36.3 36.3 33.0 35.5 36.1 36.5 36.8 36.8 11 Lease financing receivables.... 12.7 13.1 13.2 13.1 13.1 13.1 12.7 13.1 13.2 13.1 13.1 13.1 12 All other loans 47.2 46.7 46.4 48.7 47.4 46.8 49.2 46.4 46.7 46.8 47.5 49.0 MEMO: 13 Total loans and securities plus loans sold5'6 1,319.1 1,371.7 1,378.9 1,386.0 1,392.2 1,400.5 1,328.9 1,369.3 1,373.2 1,380.5 1,393.8 1,405.8 14 Total loans plus loans sold5'6 .... 976.7 1,020.1 1,026.5 1,031.1 1,036.4 1,040.9 984.7 1,017.6 1,023.0 1,027.7 1,038.4 1,046.8 15 Total loans sold to affiliates5'6 ... 2.8 3.0 2.8 2.8 2.8 2.8 2.8 3.0 2.8 2.8 2.8 2.8 16 Commercial and industrial loans plus loans sold6 360.2 385.8 .389.0 390.2 394.7 397.0 362.3 385.1 387.8 387.8 394.4 397.7 17 Commercial and industrial loans sold6 2.2 2.4 2.3 2.3 2.3 2.2 2.2 2.4 2.3 2.3 2.3 2.2 18 Acceptances held 8.9 9.1 8.7 9.1 9.3 9.4 9.8 9.2 8.6 8.8 9.4 9.3 19 Other commercial and industrial loans 349.1 374.3 378.1 378.8 383.1 385.4 350.3 373.5 376.9 376.7 382.7 386.2 20 To U.S. addressees7 334.9 360.2 364.7 365.8 369.8 372.6 334.3 360.6 363.9 364.0 369.6 373.3 21 To non-U. S. addressees 14.2 14.2 13.3 13.0 13.3 12.7 16.1 13.0 13.0 12.8 13.1 12.8 22 Loans to foreign banks 19.0 14.7 14.8 14.6 13.8 13.9 20.0 14.2 14.5 14.1 14.2 14.2 1. Includes domestically chartered banks; U.S. branches and agencies of foreign 5. Excludes loans to commercial banks in the United States. banks. New York investment companies majority owned by foreign banks, and 6. Loans sold are those sold outright to a bank's own foreign branches, non- Edge Act corporations owned by domestically chartered and foreign banks. consolidated nonbank affiliates of the bank, the bank's holding company (if not a 2. Beginning December 1981, shifts of foreign loans and securities from U.S. bank), and nonconsolidated nonbank subsidiaries of the holding company. banking offices to international banking facilities (IBFs) reduced the levels of 7. United States includes the 50 states and the District of Columbia. several items. Seasonally adjusted data that include adjustments for the amounts shifted from domestic offices to IBFs are available in the Board's G.7 (407) sta- NOTE. Data are prorated averages of Wednesday estimates for domestically tistical release (available from Publications Services, Board of Governors of the chartered banks, based on weekly reports of a sample of domestically chartered Federal Reserve System, Washington, D.C. 20551). banks and quarterly reports of all domestically chartered banks. For foreign-related 3. Beginning June 2, 1982, total loans and securities, total loans and leases, and institutions, data are averages of month-end estimates based on weekly reports loans to individuals were increased $0.5 billion due to acquisition of loans by a from large agencies and branches and quarterly reports from all agencies, branches, commercial bank from a nonbank institution. investment companies, and Edge Act corporations engaged in banking. 4. Reclassification of loans beginning September 29, 1982, increased real estate loans $0.3 billion and decreased nonbank financial loans $0.3 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A17 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1980 1981 1982 SSoouurrccee Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total nondeposit funds 1 Seasonally adjusted2 122.0 98.5 89.5 88.0 83.8 83.5 82.0 84.2 79.8 78.1 71.8 76.4 2 Not seasonally adjusted 122.6 98.9 87.9 88.5 84.8 84.3 85.5 86.3 81.8 82.6 77.5 78.7 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.1 114.2 116.2 113.8 113.6 113.1 113.2 113.8 114.3 116.7 114.8 122.0 4 Not seasonally adjusted 111.6 114.6 114.6 114.3 114.6 113.9 116.6 115.9 116.3 121.2 120.5 124.4 5 Net balances due to foreign-related institutions, not seasonally adjusted 8.2 -18.6 -29.6 -28.6 -32.6 -32.5 -34.0 -32.5 -37.3 -41.4 -45.9 -48.4 6 Loans sold to affiliates, not seasonally adjusted4 2.7 2.8 2.8 2.8 2.8 2.8 2.8 3.0 2.8 2.8 2.8 2.8 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -14.7 -22.5 -27.1 -25.9 -28.8 -29.8 -29.9 -29.2 -33.0 -34.4 -38.5 -40.4 K Gross due from balances 37.5 54.9 55.1 55.0 56.7 57.4 58.1 57.7 60.6 65.0 68.3 69.8 9 Gross due to balances 22.8 32.4 28.0 29.1 27.9 27.6 28.3 28.5 27.6 30.6 29.8 29.4 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 22.9 3.9 -2.5 -2.7 -3.8 -2.7 -4.1 -3.3 -4.4 -7.0 -7.3 -8.0 11 Gross due from balances 32.5 48.1 50.0 50.5 50.0 49.1 49.5 50.2 52.6 53.4 54.1 53.9 12 Gross due to balances 55.4 52.0 47.5 47.9 46.2 46.4 45.4 46.9 48.3 46.4 46.7 45.8 Security RP borrowings 13 Seasonally adjusted^ 64.0 70.0 73.0 71.0 71.4 71.9 69.0 69.1 69.3 71.9 68.5 75.4 14 Not seasonally adjusted 62.3 68.2 69.2 69.1 70.0 70.4 70.0 68.7 68.9 73.9 71.7 75.2 U.S. Treasury demand balances8 15 Seasonally adjusted 9.5 11.8 13.4 22.1 17.5 13.6 15.3 9.9 8.4 9.2 10.6 13.6 16 Not seasonally adjusted 9.0 11.2 14.5 20.0 15.5 13.8 15.4 10.8 8.3 8.2 12.4 16.5 Time deposits, $100,000 or more9 17 Seasonally adjusted 267.0 324.0 324.3 327.2 332.0 334.4 341.1 349.5 360.1 366.9 366.4 367.1 18 Not seasonally adjusted 272.4 330.3 330.6 335.3 337.2 335.6 340.0 344.6 350.5 359.1 361.5 364.4 IBF ADJUSTMENTS FOR SELECTED ITEMS10 19 22.4 29.6 30.4 30.8 31.4 31.7 32.0 32.2 32.4 32.4 2222200000 11111.....77777 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 2222211111 2222200000.....77777 2222277777.....22222 2222288888.....00000 2222288888.....44444 2222299999.....00000 2222299999.....33333 2222299999.....66666 2222299999.....88888 3333300000.....00000 3333300000.....00000 2222222222 Item 7 33333.....11111 44444.....88888 44444.....99999 44444.....99999 55555.....00000 55555.....00000 55555.....00000 55555.....11111 55555.....11111 55555.....11111 2222233333 Item 10 1111177777.....66666 2222222222.....55555 2222233333.....11111 2222233333.....66666 2222244444.....00000 2222244444.....33333 2222244444.....66666 2222244444.....77777 2222244444.....99999 2222244444.....99999 1. Commercial banks are those in the 50 states and the District of Columbia tions in pooled loans. Includes averages of daily figures for member banks and with national or state charters plus agencies and branches of foreign banks. New averages of current and previous month-end data for foreign-related institutions. York investment companies majority owned by foreign banks, and Edge Act cor- 4. Loans initially booked by the bank and later sold to affiliates that are still porations owned by domestically chartered and foreign banks. held by affiliates. Averages of Wednesday data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 5. Averages of daily figures for member and nonmember banks. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In- 6. Averages of daily data. cludes averages of Wednesday data for domestically chartered banks and averages 7. Based on daily average data reported by 122 large banks. of current and previous month-end data for foreign-related institutions. 8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at 3. Other borrowings are borrowings on any instrument, such as a promissory commercial banks. Averages of daily data. note or due bill, given for the purpose of borrowing money for the banking business. 9. Averages of Wednesday figures. This includes borrowings from Federal Reserve Banks and from foreign banks, 10. Estimated effects of shifts of foreign assets from U.S. banking offices to term federal funds, overdrawn due from bank balances, loan RPs, and participa- international banking facilities (IBFs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • December 1982 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1981 1982 Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,261.2 1,271.2 1,285.8 1,292.6 1,300.7 1,315.4 1,313.2 1.318.8 1,337.1 1,343.0 1,346.9 2 Loans, excluding interbank 920.1 929.1 939.9 947.2 954.3 969.1 966.6 970.6 985.9 988.5 990.4 3 Commercial and industrial 321.0 325.6 332.4 336.7 341.9 348.7 346.4 346.2 354.4 355.2 354.9 4 Other 599.1 603.5 607.5 610.5 612.4 620.4 620.3 624.4 631.5 633.3 635.5 5 U.S. Treasury securities 111.5 112.3 114.5 113.0 111.5 113.4 113.4 113.7 115.0 119.4 122.2 6 Other securities 229.6 229.8 231.4 232.4 234.9 232.9 233.2 234.5 236.2 235.1 234.3 7 Cash assets, total 155.3 151.6 164.5 153.6 153.0 165.4 154.5 160.8 157.4 162.1 169.4 8 Currency and coin 19.8 19.7 18.9 19.9 20.0 20.1 20.5 20.3 20.4 20.5 19.0 9 Reserves with Federal Reserve Banks 30.2 24.8 25.7 25.5 21.7 18.2 25.1 26.1 17.0 23.5 22.0 10 Balances with depository institutions . 50.3 51.0 55.9 52.4 54.9 59.6 55.4 58.8 60.4 61.3 64.2 11 Cash items in process of collection ... 55.0 56.1 64.0 55.8 56.3 67.4 53.6 55.5 59.6 56.8 64.1 12 Other assets2 197.0 201.9 219.3 206.6 209.9 223.2 224.2 231.3 234.9 237.0 242.0 13 Total assets/total liabilities and capital... 1,613.5 1,624.7 1,669.5 1,652.9 1,663.6 1,704.0 1,692.0 1,710.9 1,729.3 1,742,1 1,758.3 14 Deposits 1,205.8 1,213.7 1,250.8 1,231.0 1,244.0 1,284.8 1,266.4 1,279.1 1,290.7 1,300.2 1,315.9 15 Demand 322.3 316.7 338.3 315.5 315.4 345.2 314.4 315.5 323.0 326.5 337.8 16 Savings 223.0 222.5 229.9 226.6 227.6 228.9 227.1 229.5 230.9 238.2 244.7 17 Time 660.5 674.4 682.6 688.9 701.0 710.7 724.8 734.1 736.8 735.4 733.4 18 Borrowings 191.9 191.0 196.4 201.1 195.1 189.7 195.4 196.0 202.8 203.7 198.1 19 Other liabilities 89.7 92.5 94.4 92.4 93.9 96.6 99.1 103.9 103.4 106.2 109.5 20 Residual (assets less liabilities) 126.1 127.5 128.0 128.4 130.6 133.0 131.1 131.9 132.5 132.0 134.7 MEMO: 21 U.S. Treasury note balances included in borrowing 16.7 17.1 10.9 16.6 7.1 7.5 8.0 5.9 17.0 11.7 2.4 22 Number of banks 14,744 14,702 14,709 14,710 14,722 14,736 14,752 14,770 14,785 14,797 14,782 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,321.6 1,331.5 1,345.8 1,350.7 1,358.5 1,374.3 1,371.3 1,376.6 1,397.3 1,401.7 1,405.5 24 Loans, excluding interbank 975.8 984.4 995.1 1,000.6 1,007.6 1,023.7 1,020.8 1,024.7 1,042.4 1,042.3 1,044.1 25 Commercial and industrial 360.3 364.6 372.4 374.7 379.3 386.7 384.4 384.5 395.0 393.1 393.7 26 Other 615.5 619.7 622.7 625.8 628.3 637.0 636.4 640.2 647.4 649.2 650.4 27 U.S. Treasury securities 114.5 115.5 117.6 116.1 114.3 116.2 115.7 115.8 117.2 122.7 125.6 28 Other securities 231.4 231.6 233.1 234.1 236.6 234.4 234.8 236.1 237.7 236.7 235.8 29 Cash assets, total 170.0 165.8 178.8 168.1 167.7 180.3 169.3 176.2 173.7 178.7 185.2 30 Currency and coin 19.8 19.7 18.9 19.9 20.0 20.2 20.5 20.4 20.4 20.5 19.0 31 Reserves with Federal Reserve Banks 31.3 26.1 26.9 26.8 23.0 19.6 26.5 27.5 18.4 25.0 23.5 32 Balances with depository institutions . 62.7 63.0 68.0 64.6 67.3 72.2 67.8 71.8 74.2 75.3 77.6 33 Cash items in process of collection ... 56.1 57.1 65.0 56.8 57.3 68.4 54.6 56.5 60.6 57.8 65.2 34 Other assets2 274.2 278.1 295.2 280.3 285.9 300.0 299.4 306.8 310.3 313.9 318.7 35 Total assets/total liabilities and capital... 1,765.8 1,775.5 1,819.9 1,799.1 1,812.1 1,854.7 1,840.1 1,859.6 1,881.3 1,894.2 1,909.4 36 Deposits 1,251.5 1,258.3 1,295.0 1.272.7 1,286.2 1,325.8 1,307.3 1,321.7 1,335.5 1,345.2 1,361.2 37 Demand 335.1 329.4 350.8 327.9 327.9 357.4 326.8 327.7 335.1 338.9 350.0 38 Savings 223.2 222.8 230.2 226.9 227.8 229.1 227.4 229.7 231.1 238.5 244.9 39 Time 693.1 706.2 714.0 717.9 730.4 739.3 753.1 764.3 769.2 767.8 766.3 40 Borrowings 253.5 255.9 260.0 260.8 255.3 253.2 260.0 260.0 267.6 268.3 261.0 41 Other liabilities 132.8 131.8 135.0 135.3 138.2 140.8 139.8 144.1 143.8 146.9 150.6 42 Residual (assets less liabilities) 128.1 129.4 129.9 130.3 132.5 134.9 133.0 133.8 134.4 133.9 136.6 MEMO: 43 U.S. Treasury note balances included in borrowing 16.7 17.1 10.9 16.6 7.1 7.5 8.0 5.9 17.0 11.7 2.4 44 Number of banks 15,213 15,201 15,214 15,215 15,235 15,235 15,271 15,289 15,311 15,330 15,318 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 estimates made on the last Wednesday of the month 3. Commercial banking institutions include domestically chartered commercial based on a weekly reporting sample of foreign-related institutions and quarter-end banks, branches and agencies of foreign banks, Edge Act and Agreement corpo- condition report data. rations, and New York State foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A19 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and Liabilities, 1982 Millions of dollars, Wednesday figures Account Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. IIP Nov. 3p Nov. 10 p Nov. 17 p Nov. 24p 1 Cash items in process of collection 47,962 47,236 56,479 51,408 45,478 57,825 48,499 51,107 50,023 2 Demand deposits due from banks in the United States.. 7,054 7,296 7,737 7,094 6,800 8,268 6,341 7,672 7,169 3 All other cash and due from depository institutions .... 28,700 31,208 34,727 39,995 35,216 35,423 35,267 32,917 33,121 4 Total loans and securities 683,174 647,185 649,677 642,396 640,726 651,819 643,331 641,610 638,948 Securities 5 U.S. Treasury securities 37,798 39,420 40,787 40,464 40,890 42,270 41,895 41,665 41,676 6 Trading account 7,103 7,405 8,548 8,132 8,256 9,227 8,364 8,051 7,930 7 Investment account, by maturity 30,695 32,016 32,238 32,332 32,634 33,043 33,532 33,615 33,746 8 One year or less 10,289 10,296 10,314 10,172 10,135 10,215 10,494 10,430 10,475 9 Over one through five years 18,248 19,572 19,794 20,101 20,467 20,842 21,046 21,273 21,382 10 Over five years 2,159 2,148 2,130 2,059 2,031 1,986 1,992 1,912 1,889 11 Other securities 78,573 79,528 78,740 77,860 78,072 79,850 77,701 77,221 77,092 12 Trading account 4,069 5,359 4,443 3,909 4,214 6,177 4,007 3,734 3,602 13 Investment account 74,504 74,169 74,296 73,952 73,857 73,674 73,694 73,487 73,490 14 U.S. government agencies 15,508 15,353 15,438 15,327 15,159 15,074 15,104 15,065 15,067 15 States and political subdivisions, by maturity 55,915 55,754 55,829 55,667 55,723 55,600 55,580 55,447 55,493 16 One year or less 7,044 7,067 7,112 6,912 6,954 7,003 6,955 6,971 6,947 17 Over one year 48,872 48,687 48,717 48,754 48,769 48,597 48,625 48,476 48,546 18 Other bonds, corporate stocks and securities 3,080 3,062 3,030 2,958 2,975 3,000 3,010 2,975 2,930 Loans 19 Federal funds sold1 39,410 43,262 43,876 38,174 38,967 43,610 41,573 40,170 38,194 20 To commercial banks 28,761 31,880 32,585 27,472 27,948 31,536 30,517 28,500 26,244 21 To nonbank brokers and dealers in securities 8,767 8,526 9,149 8,251 8,741 9,154 8,322 9,062 9,125 22 To others 1,881 2,856 2,143 2,451 2,278 2,919 2,734 2,608 2,824 23 Other loans, gross 495,634 498,044 499,339 498,980 495,907 499,228 495,338 495,717 495,150 24 Commercial and industrial 217,288 219,976 218,557 217,771 216,830 216,951 216,821 216,256 215,478 25 Bankers acceptances and commercial paper 4,850 5,104 5,059 4,940 4,850 4,594 4,420 4,836 4,445 26 All other 212,438 214,872 213,498 212,831 211,979 212,357 212,401 211,420 211,033 27 U.S. addressees 205,022 207,519 206,214 205,762 205,008 205,358 205,373 204,472 204,071 28 Non-U.S. addressees 7,416 7,353 7,285 7,069 6,972 7,000 7,028 6,948 6,962 29 Real estate 131,764 131,521 131,821 131,891 131,859 131,759 131,697 131,892 132,071 30 To individuals for personal expenditures 73,503 73,337 73,244 73,280 73,423 73,405 73,391 73,400 73,716 To financial institutions 31 Commercial banks in the United States 6,850 6,764 7,054 7,253 7,195 7,594 7,017 7,037 6,944 32 Banks in foreign countries 6,905 7,041 7,586 7,084 7,120 6,685 6,702 7,080 7,078 33 Sales finance, personal finance companies, etc 11,184 11,137 11,126 10,984 11,201 11,329 11,252 11,119 10,975 34 Other financial institutions 15,858 15,964 16,038 16,037 15,702 15,983 16,160 15,926 15,849 35 To nonbank brokers and dealers in securities 7,892 7,560 9,036 9,770 8,093 9,500 8,021 7,854 8,137 36 To others for purchasing and carrying securities2 2,604 2,608 2,601 2,575 2,564 2,707 2,847 2,877 2,956 37 To finance agricultural production 6,571 6,545 6,544 6,525 6,514 6,488 6,478 6,430 6,400 38 All other 15,215 15,590 15,731 15,810 15,405 16,826 14,952 15,848 15,546 39 LESS: Unearned income 5,744 5,707 5,712 5,708 5,701 5,616 5,621 5,610 5,596 40 Loan loss reserve 7,498 7,362 7,354 7,374 7,409 7,523 7,556 7,554 7,567 41 Other loans, net 482,392 484,975 486,274 485,898 482,797 486,089 482,161 482,553 481,986 42 Lease financing receivables 11,097 11,068 11,074 11,057 11,031 11,064 11,061 11,052 11,068 43 All other assets 128,783 133,026 132,876 131,307 129,418 137,569 135,569 133,259 132,109 44 Total assets 861,769 877,018 892,570 883,256 868,670 901,968 880,068 877,617 872,437 Deposits 45 Demand deposits 164,541 171,131 179,704 173,364 166,343 187,996 168,264 173,171 171,784 46 Mutual savings banks 526 670 668 605 510 766 623 608 558 47 Individuals, partnerships, and corporations 124,068 128,934 134,918 130,354 126,347 139,931 128,045 131,601 128,522 48 States and political subdivisions 4,479 4,950 4,541 4,468 4,532 5,391 4,495 4,878 5,069 49 U.S. government 1,874 1,544 1,560 2,671 1,902 3,014 1,790 1,065 2,343 50 Commercial banks in the United States 17,963 20,307 21,577 18,485 18,070 22,492 17,799 20,335 20,182 51 Banks in foreign countries 5,793 5,492 6,847 6,142 6,216 5,854 5,784 5,891 6,539 52 Foreign governments and official institutions 957 1,366 914 1,080 1,012 1,224 856 850 834 53 Certified and officers' checks 8,881 7,868 8,678 9,559 7,754 9,324 8,871 7,942 7,737 54 Time and savings deposits 401,320 403,591 404,202 403,985 402,545 403,346 403,018 400,656 402,432 55 Savings 79,898 83,425 83,256 83,093 82,742 85,199 85,338 85,250 84,412 56 Individuals and nonprofit organizations 76,565 80,023 79,935 79,796 79,383 81,788 81,846 81,774 80,999 57 Partnerships and corporations operated for profit .. 2,770 2,793 2,762 2,747 2,797 2,821 2,846 2,838 2,858 58 Domestic governmental units 546 592 542 534 546 568 626 617 533 59 All Other 17 17 17 16 16 23 21 21 22 60 Time 321,422 320,166 320,945 320,892 319,802 318,146 317,680 315,406 318,020 61 Individuals, partnerships, and corporations 281,320 280,282 280,808 281,001 280,004 278,788 278,151 275,662 278,219 62 States and political subdivisions 21,659 21,262 21,371 21,388 21,341 20,953 21,108 21,414 21,464 63 U.S. government 559 576 607 635 627 629 645 641 638 64 Commercial banks in the United States 12,948 13,124 13,320 12,974 12,886 1122,,772211 1122,,880066 1122,,771122 1122,,883333 65 Foreign governments, official institutions, and banks 4,936 4,921 4,838 4,894 44,,994433 55,,005566 44,,996699 44,,997766 44,,886677 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 575 7 12 957 383 395 2,869 136 502 67 Treasury tax-and-loan notes 13,187 9,968 8,950 8,780 8,720 3,820 1,355 3,373 1,299 68 All other liabilities for borrowed money3 141,899 152,645 158,730 153,195 147,412 160,351 159,288 154,995 149,557 69 Other liabilities and subordinated notes and debentures 83,593 82,457 83,651 85,942 86,422 88,622 87,805 87,851 89,606 70 Total liabilities 805,115 819,798 835,248 826,223 811,826 844,530 822,599 820,183 815,180 71 Residual (total assets minus total liabilities)4 56,654 57,220 57,322 57,033 56,844 57,438 57,469 57,434 57,257 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 more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • December 1982 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, 1982 Account Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27P Nov. 3P Nov. 10 p Nov. 17 P Nov. 24^ 1 Cash items in process of collection 45,517 44,564 53,150 48,619 43,012 54,668 46,042 48,335 47,192 2 Demand deposits due from banks in the United States.. 6,376 6,585 6,973 6,418 6,150 7,463 5,719 6,921 6,357 3 All other cash and due from depository institutions .... 26,227 28,658 32,033 36,950 32,517 33,034 32,694 30,378 30,471 4 Total loans and securities 597,772 605,929 608,462 601,574 599,853 609,767 601,345 599,783 597,539 Securities 5 U.S. Treasury securities 34,422 36,080 37,380 37,034 37,435 38,671 38,144 37,903 37,922 6 Trading account 7,008 7,306 8,412 8,020 8,127 9,066 8,190 7,902 7,800 7 Investment account, by maturity 27,414 28,774 28,968 29,014 29,307 29,605 29,954 30,001 30,122 8 One year or less 9,117 9,167 9,173 9,015 9,033 9,160 9,372 9,318 9,369 9 Over one through five years 16,402 17,724 17,930 18,204 18,507 18,724 18,858 19,036 19,128 10 Over five years 1,894 1,884 1,866 1,795 1,767 1,722 1,724 1,646 1,624 11 Other securities 72,185 73,200 72,355 71,475 71,663 73,364 71,243 70,805 70,678 12 Trading account 3,941 5,226 4,292 3,754 4,077 5,981 3,857 3,557 3,435 13 Investment account 68,244 67,974 68,063 67,720 67,586 67,382 67,386 67,248 67,242 14 U.S. government agencies 14,336 14,179 14,274 14,155 13,946 13,856 13,858 13,845 13,825 15 States and political subdivision, by maturity 51,038 50,938 50,959 50,808 50,870 50,731 50,721 50,627 50,687 16 One year or less 6,281 6,328 6,357 6,194 6,224 6,326 6,279 6,306 6,292 17 Over one year 44,757 44,610 44,602 44,615 44,646 44,405 44,442 44,321 44,394 18 Other bonds, corporate stocks and securities 2,870 2,857 2,829 2,757 2,770 2,794 2,807 2,776 2,731 Loans 19 Federal funds sold' 35,673 38,569 39,406 34,174 34,997 38,676 36,900 35,617 34,047 20 To commercial banks 25,575 27,657 28,672 23,995 24,498 27,179 26,388 24,460 22,643 21 To nonbank brokers and dealers in securities 8,250 8,132 8,680 7,811 8,298 8,685 7,860 8,635 8,676 22 To others 1,848 2,780 2,053 2,368 2,201 2,812 2,651 2,523 2,727 23 Other loans, gross 467,700 470,113 471,355 470,940 467,839 471,168 467,217 467,601 467,048 24 Commercial and industrial 206,297 208,921 207,571 206,774 205,820 205,907 205,753 205,237 204,517 25 Bankers acceptances and commercial paper 4,477 4,728 4,725 4,581 4,482 4,246 4,055 4,504 4,106 26 All other 201,820 204,193 202,846 202,193 201,338 201,662 201,698 200,733 200,411 27 U.S. addressees 194,530 196,966 195,688 195,253 194,494 194,791 194,799 193,911 193,576 28 Non-U.S. addressees 7,289 7,227 7,158 6,940 6,843 6,871 6,899 6,822 6,835 29 Real estate 124,370 124,131 124,408 124,455 124,425 124,384 124,324 124,470 124,654 30 To individuals for personal expenditures 65,992 65,813 65,714 65,721 65,865 65,860 65,754 65,746 66,023 To financial institutions 31 Commercial banks in the United States 6,686 6,606 6,846 7,088 7,038 7,425 6,852 6,872 6,796 32 Banks in foreign countries 6,821 6,958 7,492 7,007 7,025 6,604 6,622 7,014 6,996 33 Sales finance, personal finance companies, etc 11,013 10,961 10,954 10,805 11,021 11,144 11,073 10,941 10,800 34 Other financial institutions 15,459 15,550 15,624 15,604 15,268 15,542 15,717 15,477 15,421 35 To nonbank brokers and dealers in securities 7,850 7,523 9,005 9,740 8,066 9,447 7,989 7,825 8,094 36 To others for purchasing and carrying securities2 2,371 2,377 2,373 2,348 2,332 2,472 2,618 2,650 2,730 37 To finance agricultural production 6,390 6,369 6,365 6,345 6,330 6,316 6,306 6,261 6,237 38 All other 14,450 14,906 15,001 15,054 14,649 16,066 14,209 15,109 14,780 39 LESS: Unearned income 5,094 5,064 5,070 5,066 5,062 4,985 4,995 4,979 4,969 40 Loan loss reserve 7,113 6,969 6,964 6,983 7,019 7,127 7,164 7,165 7,186 41 Otherloans.net 455,493 458,079 459,321 458,891 455,758 459,056 455,058 455,457 454,892 42 Lease financing receivables 10,760 10,731 10,736 10,719 10,692 10,723 10,720 10,711 10,701 43 All other assets 125,016 129,288 129,075 127,630 125,630 133,688 131,695 129,377 128,302 44 Total assets 811,669 825,755 840,429 831,910 817,855 849,342 828,214 825,504 820,562 Deposits 45 Demand deposits 153,122 159,302 167,127 161,603 154,856 175,287 156,632 161,012 159,618 46 Mutual savings banks 509 645 648 585 494 736 604 589 538 47 Individuals, partnerships, and corporations 115,121 119,764 125,120 121,235 117,375 130,265 119,004 122,176 119,086 48 States and political subdivisions 3,966 4,355 4,098 3,948 4,035 4,830 4,002 4,341 4,495 49 U.S. government 1,687 1,387 1,415 2,414 1,746 2,761 1,642 917 2,166 50 Commercial banks in the United States 16,589 18,795 19,784 17,029 16,624 20,757 16,377 18,834 18,635 51 Banks in foreign countries 5,719 5,446 6,799 6,098 6,170 5,798 5,738 5,824 6,489 52 Foreign governments and official institutions 935 1,365 913 1,072 999 1,217 831 847 833 53 Certified and officers' checks 8,595 7,546 8,352 9,222 7,412 8,922 8,434 7,485 7,375 54 Time and savings deposits 376,548 378,766 379,390 379,104 377,661 378,307 377,727 375,473 377,263 55 Savings 73,711 76,950 76,812 76,656 76,303 78,574 78,689 78,623 77,852 56 Individuals and nonprofit organizations 70,642 73,820 73,759 73,627 73,213 75,434 75,475 75,417 74,704 57 Partnerships and corporations operated for profit .. 2,545 2,569 2,534 2,516 2,569 2,594 2,610 2,606 2,626 58 Domestic governmental units 507 544 502 498 505 524 583 580 499 59 All other 17 17 17 16 16 23 21 21 22 60 Time 302,838 301,816 302,578 302,448 301,358 299,733 299,038 296,850 299,412 61 Individuals, partnerships, and corporations 264,957 264,122 264,713 264,843 263,828 262,612 261,801 259,343 261,887 62 States and political subdivisions 19,736 19,376 19,428 19,411 19,390 19,020 19,122 19,473 19,496 63 U.S. government 496 505 531 567 558 564 572 568 566 64 Commercial banks in the United States 12,712 12,892 13,068 12,732 12,640 12,481 12,574 12,489 12,596 65 Foreign governments, official institutions, and banks 4,936 4,921 4,838 4,894 4,943 5,056 4,969 44,,997766 44,,886677 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 535 7 12 957 383 395 2,839 136 492 67 Treasury tax-and-loan notes 12,407 9,374 8,420 8,192 8,150 3,546 1,258 3,101 1,195 68 All other liabilities for borrowed money3 134,507 144,244 150,209 144,687 139,156 151,465 150,192 114466,,009999 140,728 69 Other liabilities and subordinated notes and debentures 81,423 80,384 81,496 83,866 84,331 86,453 85,634 85,750 87,509 70 Total liabilities 758,542 772,077 786,654 778,409 764,538 795,453 774,282 771,573 766,806 71 Residual (total assets minus total liabilities)4 53,127 53,678 53,775 53,501 53,317 53,890 53,932 53,932 53,756 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 more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures, 1982 Account Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27P Nov. 3' Nov. 10' Nov. 17' Nov. 24' 1 Cash items in process of collection 16,655 14,748 17,746 18,857 15,254 19,745 17,009 15,993 15,052 2 Demand deposits due from banks in the United States 1,191 1,457 1,548 1,469 1,290 1,589 1,058 1,501 997799 3 All other cash and due from depository institutions.. 4,522 5,166 7,677 6,938 6,276 6,838 6,491 6,421 4,488 4 Total loans and securities1 142,266 144,281 146,298 145,837 144,468 147,597 143,318 144,885 143,362 Securities s (S 7 Investment account, by maturity 6,556 7,786 7,731 7,649 7,689 7,999 8,047 8,271 8,330 8 One year or less 991 1,068 1,062 1,098 1,100 1,153 1,154 1,227 1,227 9 Over one through five years 4,989 6,136 6,088 6,060 6,087 6,322 6,363 6,565 6,671 10 Over five years 576 581 581 491 502 523 530 479 432 11 V 13 Investment account 13,928 13,756 13,705 13,694 13,663 13,581 13,449 13,312 13,282 14 U.S. government agencies 2,084 1,965 1,956 1,962 1,919 1,842 1,751 1,698 1,697 15 States and political subdivision, by maturity .... 10,920 10,865 10,848 10,824 10,825 10,829 10,788 10,736 10,764 16 One year or less 1,253 1,233 1,209 1,160 1,194 1,179 1,175 1,166 1,180 17 Over one year 9,666 9,632 9,639 9,664 9,631 9,650 9,613 9,570 9,584 18 Other bonds, corporate stocks and securities.... 924 926 901 907 918 909 910 878 821 Loans 19 Federal funds sold 3 8,982 9,019 9,562 8,835 9,924 11,116 9,256 9,889 9,096 20 To commercial banks 4,045 4,277 4,345 4,112 4,978 5,409 4,458 4,563 3,750 21 To nonbank brokers and dealers in securities 4,067 3,931 4,444 3,845 4,070 4,580 3,814 4,195 4,183 72 To others 869 810 773 878 875 1,127 983 1,131 1,163 23 Other loans, gross 116,578 117,495 119,085 119,453 117,027 118,747 116,438 117,277 116,535 2.4 Commercial and industrial 61,222 62,685 62,514 62,005 61,670 61,390 61,312 61,314 60,875 25 Bankers acceptances and commercial paper 1,197 1,545 1,371 1,358 1,410 1,155 1,036 1,118 1,111 26 All other 60,025 61,140 61,143 60,647 60,261 60,236 60,277 60,196 59,764 27 U.S. addressees 58,410 59,640 59,612 59,206 58,787 58,756 58,701 58,678 58,149 28 Non-U.S. addressees 1,615 1,500 1,531 1,441 1,474 1,480 1,575 1,519 1,615 29 Real estate 18,941 18,833 18,861 18,837 18,891 18,770 18,756 18,884 18,946 30 To individuals for personal expenditures 11,594 11,578 11,605 11,619 11,636 11,616 11,627 11,621 11,647 31 To financial institutions Commercial banks in the United States 1,986 2,168 2,168 2,466 2,202 2,703 2,057 2,180 2,155 32 Banks in foreign countries 2,544 2,632 3,162 2,837 2,768 2,558 2,493 2,862 2,796 33 Sales finance, personal finance companies, etc... 4,723 4,609 4,583 4,582 4,821 4,914 4,800 4,857 4,776 34 Other financial institutions 4,902 4,879 5,012 4,885 4,793 4,919 4,989 4,928 4,877 35 To nonbank brokers and dealers in securities 5,516 4,788 5,980 7,004 5,183 6,194 5,474 5,535 5,355 36 To others for purchasing and carrying securities4 . 649 651 651 660 652 767 874 867 927 37 To finance agricultural production 424 420 419 417 387 371 392 392 380 38 All other 4,074 4,250 4,128 4,140 4,023 4,546 3,662 3,835 3,800 39 LESS: Unearned income 1,490 1,491 1,490 1,498 1,511 1,487 1,493 1,484 1,486 40 Loan loss reserve 2,289 2,283 2,294 2,296 2,324 2,359 2,378 2,381 2,395 41 Other loans, net 112,799 113,720 115,300 115,659 113,192 114,900 112,567 113,412 112,654 42 Lease financing receivables 2,093 2,066 2,094 2,093 2,074 2,063 2,062 2,044 2,060 43 All other assets5 50,615 53,243 53,245 52,652 52,291 58,914 55,710 54,500 54,626 44 Total assets 217,342 220,962 228,609 227,846 221,653 236,746 225,649 225,344 220,567 Deposits 45 Demand deposits 45,781 47,270 49,039 50,807 45,960 53,641 45,410 45,862 45,878 46 Mutual savings banks 249 329 330 286 225 322 297 270 252 47 Individuals, partnerships, and corporations 30,445 31,245 32,390 33,546 30,813 36,158 30,430 31,154 30,392 48 States and political subdivisions 519 1,032 648 520 440 574 485 433 501 49 U.S. government 474 316 523 616 452 679 490 195 497 50 Commercial banks in the United States 3,877 5,294 4,476 4,779 4,408 5,617 3,919 4,734 4,600 51 Banks in foreign countries 4,491 4,198 5,254 4,783 4,850 4,540 4,544 4,637 5,260 52 Foreign governments and official institutions 686 1,112 653 801 742 962 566 571 626 53 Certified and officers' checks 5,042 3,745 4,766 5,475 4,030 4,787 4,679 3,867 3,748 54 Time and savings deposits 72,705 73,271 73,877 74,567 75,236 75,122 75,886 74,596 74,577 55 Savings 9,645 10,129 10,236 10,303 10,295 10,784 10,870 10,925 10,487 56 Individuals and nonprofit organizations 9,311 9,779 9,892 9,959 9,962 10,429 10,464 10,537 10,150 57 Partnerships and corporations operated for profit 228 225 222 222 227 230 231 232 228 58 Domestic governmental units 105 123 118 120 105 124 174 154 106 59 All other 1 1 1 1 1 1 1 1 2 60 Time 63,060 63,143 63,640 64,264 64,941 64,338 65,016 63,670 64,090 61 Individuals, partnerships, and corporations 53,183 52,920 53,272 54,019 54,663 54,058 54,589 52,855 53,302 62 States and political subdivisions 2,300 2,368 2,474 2,443 2,539 2,497 2,563 2,681 2,618 63 U.S. government 195 199 194 217 216 208 208 205 201 64 Commercial banks in the United States 5,376 5,638 5,757 5,554 5,517 5,475 5,575 5,810 5,938 65 Foreign governments, official institutions, and banks 2,006 2,017 1,942 2,030 2,005 2,099 2,080 2,120 2,032 Liabilities for borrowed money 66 28 675 375 1,405 67 Treasury tax-and-loan notes 3,134 2,355 2,221 2,259 2,182 926 368 920 342 68 All other liabilities for borrowed money6 47,864 50,398 54,977 50,120 48,340 55,656 51,984 53,522 49,172 69 Other liabilities and subordinated notes and debentures 29,857 29,274 30,074 31,067 31,404 32,987 32,145 32,012 32,219 70 Total liabilities 199,369 202,569 210,188 209,495 203,495 218,333 207,199 206,912 202,188 71 Residual (total assets minus total liabilities)7 17,973 18,393 18,421 18,351 18,158 18,414 18,450 18,433 18,378 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

A22 Domestic Nonfinancial Statistics • December 1982 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures, 1982 Account Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27? Nov. 3P Nov. 10' Nov. 17 P Nov. 24^ BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 615,804 621,610 623,104 620,754 618,693 625,827 618,974 619,237 618,923 2 Total loans (gross) adjusted1 499,433 502,662 503,577 502,430 499,731 503,707 499,378 500,350 500,155 3 Demand deposits adjusted2 96,742 102,044 100,087 100,800 100,893 104,666 100,176 100,664 99,236 4 Time deposits in accounts of $100,000 or more 205,706 205,728 206,260 206,021 204,854 203,596 203,283 201,052 202,996 5 Negotiable CDs 148,198 148,055 148,414 147,832 146,399 144,812 144,031 141,808 143,275 6 Other time deposits 57,508 57,672 57,847 58,189 58,455 58,784 59,252 59,244 59,722 7 Loans sold outright to affiliates3 2,861 2,750 2,815 2,790 2,883 2,874 2,886 2,933 2,956 8 Commercial and industrial 2,281 2,196 2,227 2,244 2,264 2,238 2,252 2,308 2,345 9 Other 580 554 588 546 619 636 634 624 611 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross} and securities adjusted1 577,719 583,699 584,977 582,541 580,398 587,275 580,264 580,595 580,255 11 Total loans (gross) adjusted1 471,112 474,419 475,242 474,032 471,300 475,240 470,877 471,887 471,656 12 Demand deposits adjusted2 89,329 94,556 92,778 93,542 93,474 97,100 92,571 92,927 91,625 13 Time deposits in accounts of $100,000 or more 196,287 196,430 196,977 196,706 195,533 194,250 193,718 191,571 193,506 14 Negotiable CDs 142,623 142,585 142,991 142,432 140,951 139,344 138,413 136,220 137,754 15 Other time deposits 53,664 53,846 53,985 54,274 54,582 54,906 55,305 55,351 55,752 16 Loans sold outright to affiliates3 2,784 2,679 2,738 2,716 2,808 2,800 2,815 2,862 2,884 17 Commercial and industrial 2,218 2,136 2,161 2,182 2,201 2,176 2,193 2,249 2,285 18 Other 566 543 576 534 607 624 622 613 599 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted1,4 140,013 141,609 143,570 143,053 141,123 143,331 140,675 142,008 141,338 20 Total loans (gross) adjusted1 119,528 120,068 122,133 121,710 119,771 121,751 119,179 120,424 119,726 21 Demand deposits adjusted2 24,776 26,912 26,294 26,556 25,845 27,600 23,991 24,939 25,729 22 Time deposits in accounts of $100,000 or more 48,155 48,339 48,911 49,667 50,341 49,736 50,679 49,381 49,440 23 Negotiable CDs 37,157 37,122 37,500 38,229 38,768 38,016 38,695 37,535 37,657 24 Other time deposits 10,998 11,217 11,411 11,439 11,573 11,720 11,984 11,847 11,783 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

Weekly Reporting Banks A23 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures, 1982 Account Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27P Nov. 3p Nov. 10' Nov. IIP Nov. 24' 1 Cash and due from depository institutions 7,253 7,148 7,281 7,352 7,610 7,636 7,923 7,210 6,975 2 Total loans and securities 47,712 4466,,776677 46,024 46,393 46,082 46,043 43,934 45,846 46,173 3 U.S. Treasury securities 1,757 11,,886600 2,156 2,702 2,715 2,731 2,848 2,797 2,802 4 Other securities 840 857 855 856 853 854 759 834 825 5 Federal funds sold1 4,042 3,287 3,046 2,558 2,943 2,828 2,643 3,172 2,978 6 To commercial banks in United States .. 3,758 2,918 2,822 2,339 2,722 2,629 2,374 2,919 2,832 7 To others 283 369 224 220 220 200 270 253 146 8 Other loans, gross 41,074 40,763 39,966 40,277 39,571 39,629 37,683 39,042 39,567 9 Commercial and industrial 20,156 19,331 18,857 1188,,991188 18,677 19,024 18,545 19,011 19,276 10 Bankers acceptances and commercial paper 3,286 3,060 2,956 2,931 2,826 2,893 2,589 2,918 2,874 11 All other 16,849 16,270 15,901 15,987 15,851 16,131 15,956 16,093 16,402 12 U.S. addressees 14,896 14,340 13,977 13,906 13,832 14,046 13,999 14,122 14,456 13 Non-U.S. addressees 1,953 1,931 1,924 2,081 2,020 2,085 1,957 1,971 1,946 14 To financial institutions 16,169 16,635 16,527 16,723 16,433 16,078 14,886 15,931 16,125 15 Commercial banks in United States .. 13,166 13,523 13,446 13,609 13,175 12,869 11,804 12,857 13,067 16 Banks in foreign countries 2,308 2,447 2,456 2,375 2,562 2,570 2,420 2,430 2,455 17 Nonbank financial institutions 694 665 625 740 696 639 661 644 603 18 For purchasing and carrying securities .. 433 479 413 351 310 420 311 203 291 19 All other 4,336 4,318 4,169 4,284 4,151 4,107 3,941 3,897 33,,887755 20 Other assets (claims on nonrelated parties) 11,859 11,459 11,762 12,070 12,046 12,048 12,017 12,009 12,228 21 Net due from related institutions 11,153 13,066 12,900 12,401 12,612 12,864 13,689 12,255 12,184 22 Total assets 77,977 78,440 77,966 78,216 78,350 78,591 77,563 77,319 77,560 23 Deposits or credit balances2 23,771 24,192 24,489 24,114 23,487 23,820 23,660 23,400 24,192 24 Credit balances 212 245 254 206 216 270 246 204 213 25 Demand deposits 1,906 2,163 1,975 22,,115599 11,,996611 22,,223344 1,941 11,,998877 11,,991188 26 Individuals, partnerships, and corporations 771 821 922 943 839 1,079 903 895 944 27 Other 1,135 1,342 1,053 1,216 1,122 1,155 1,038 1,091 975 28 Total time and savings 21,653 21,784 22,260 21,748 2211,,331100 2211,,331166 2211,,447733 2211,,220099 22,060 29 Individuals, partnerships, and corporations 18,609 18,673 19,092 18,593 18,179 18,071 18,380 18,131 19,054 30 Other 3,044 3,111 3,168 3,156 3,131 3,245 3,093 3,078 3,006 31 Borrowings3 32,624 34,301 32,383 32,365 33,016 33,694 32,018 31,632 31,773 32 Federal funds purchased4 8,058 9,572 8,541 8,374 9,379 10,144 9,645 8,603 88,,003388 33 From commercial banks in United States 7,227 8,743 7,677 7,412 8,482 9,080 8,556 7,548 6,950 34 From others 831 829 864 962 897 1,064 1,089 1,056 1,087 35 Other liabilities for borrowed monev ... 24,565 24,728 23,842 23,991 23,637 23,550 22,373 23,028 23,735 36 To commercial banks in United States 22,333 22,582 21,750 21,885 21,537 21,177 19,783 20,510 21,204 37 To others 2,232 2,146 2,092 2,106 2,100 2,373 2,590 2,519 2,531 38 Other liabilities to nonrelated parties 11,629 11,269 11,596 11,870 11,825 11,665 11,794 11,611 11,814 39 Net due to related institutions 9,954 8,679 9,498 9,868 10,022 9,412 10,090 10,677 9,782 40 Total liabilities 77,977 78,440 77,966 78,216 78,350 78,591 77,563 77,319 77,560 MEMO 41 Total loans (gross) and securities adjusted5 30,788 30,326 29,755 30,445 30,184 30,545 29,756 30,069 30,274 42 Total loans (gross) adjusted5 28,190 27,610 26,744 26,888 26,616 26,960 26,148 26,438 26,646 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 United 3. Borrowings from other than directly related institutions. States Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 DomesticN onfinancial Statistics • December 1982 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during IIInnnddduuussstttrrryyy ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1982 1982 July 28 Aug. 25 Sept. 29 Oct. 27 Nov. 24P Q2 Q3 Sept. Oct. Nov.? 1 Durable goods manufacturing 28,520 29,117 31.428 31,299 30,238 448 2,348 2,310 -129 -1,061 2 Nondurable goods manufacturing 24,815 24,866 25,813 24,773 24,678 2,137 514 947 -1,040 -96 3 Food, liquor, and tobacco 4,679 4,596 4,840 4,639 4,847 254 36 245 -202 208 4 Textiles, apparel, and leather 5,068 5,064 4,855 4,571 4,297 328 -7 -209 -284 -274 5 Petroleum refining 4,840 4,717 5,323 5,464 5,519 647 228 606 141 55 6 Chemicals and rubber 5,197 5,518 5,810 5,423 5,404 412 259 291 -387 -19 7 Other nondurable goods 5,030 4,971 4,985 4,677 4,611 496 1 14 -308 -66 8 Mining (including crude petroleum and natural gas) 27,983 27,313 28,406 29,322 29,507 2,401 154 1,092 916 185 9 Trade 28,570 28,320 29,052 28,965 28,825 376 -134 732 -87 -140 10 Commodity dealers 1,648 1,788 1,978 2,036 2,115 -461 116 190 59 78 11 Other wholesale 13,632 13,488 13,976 13,697 13,682 257 202 487 -278 -15 12 Retail 13,290 13,044 13,099 13,231 13,029 580 -453 54 132 -203 13 Transportation, communication, and other public utilities 24,962 24,751 24,916 24,962 25,179 1,372 -86 165 46 217 14 Transportation 8,868 8,964 8,976 8,913 9,039 73 -251 11 -62 126 15 Communication 4,832 4,905 5.154 5.255 5,300 537 376 250 101 45 16 Other public utilities 11,263 10,882 10,786 10,793 10,839 762 -210 -95 7 46 17 Construction 7,922 7,825 7.680 7,621 7,635 509 -81 -146 -59 14 18 Services 28,859 28,960 29.315 29,705 29,540 1,611 563 356 390 -165 19 All other1 17,330 17,536 17,920 17,848 17,975 -21 675 385 -72 127 20 Total domestic loans 188,962 188,689 194,530 194,494 193,576 8,832 3,954 5,842 -36 -919 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans . 87,207 87,010 89,135 89,776 90,050 2,606 -674 2,125 640 275 1. Includes commercial and industrial loans at a few banks with assets of $1 billion or more that do not classify their loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Paper A25 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1980 1981 1982 11997788 1199779922 DDeecc.. DDeecc.. Dec. Mar.3 June4 Sept. Dec. Mar. June 1 All holders—Individuals, partnerships, and corporations 294.6 302.2 315.5 280.8 277.5 288.9 268.9 271.5 f 2 Financial business 27.8 27.1 29.8 30.8 1 28.2 28.0 27.8 28.6 3 Nonfinancial business 152.7 157.7 162.3 144.3 n.a. 148.6 154.8 138.7 141.4 4 Consumer 97.4 99.2 102.4 86.7 1 82.1 86.6 84.6 83.7 5 Foreign 2.7 3.1 3.3 3.4 1 3.1 2.9 3.1 2.9 6 Other 14.1 15.1 17.2 15.6 T 15.5 16.7 14.6 15.0 Weekly reporting banks 1980 1981 1982 11997788 11997799ss DDeecc.. DDeecc.. Dec. Mar.3 June4 Sept. Dec. Mar. June 7 All holders—Individuals, partnerships, and corporations 147.0 139.3 147.4 133.2 ! 131.3 137.5 126.8 127.9 8 Financial business 19.8 20.1 21.8 21.9 1 20.7 21.0 20.2 20.2 9 Nonfinancial business 79.0 74.1 78.3 69.8 n.a. 71.2 75.2 67.1 67.7 10 Consumer 38.2 34.3 35.6 30.6 1 28.7 30.4 29.2 29.7 11 Foreign 2.5 3.0 3.1 3.2 t 1 2.9 2.8 2.9 2.8 12 Other 7.5 7.8 8.6 7.7 7.9 8.0 7.3 7.5 1. Figures include cash items in process of collection. Estimates of gross deposits 4. Demand deposit ownership survey estimates for June 1981 are not yet available are based on reports supplied by a sample of commercial banks. Types of depositors due to unresolved reporting errors. in each category are described in the June 1971 BULLETIN, p. 466. 5. After the end of 1978 the large weekly reporting bank panel was changed to 2. Beginning with the March 1979 survey, the demand deposit ownership survey 170 large commercial banks, each of which had total assets in domestic offices sample was reduced to 232 banks from 349 banks, and the estimation procedure exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the was modified slightly. To aid in comparing estimates based on the old and new May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership estireporting sample, the following estimates in billions of dollars for December 1978 mates for these large banks are constructed quarterly on the basis of 97 sample have been constructed using the new smaller sample; financial business, 27.0; banks and are not comparable with earlier data. The following estimates in billions nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1. of dollars for December 1978 have been constructed for the new large-bank panel; 3. Demand deposit ownership data for March 1981 are subject to greater than financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5; normal errors reflecting unusual reporting difficulties associated with funds shifted other, 6.8. to negotiable order of withdrawal (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

A26 DomesticN onfinancial Statistics • December 1982 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1982 IInnssttrruummeenntt 11997777 11997788 1199779911 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc.. May June July Aug. Sept. Oct. Commercial paper (seasonally adjusted) 11 AAllll iissssuueerrss 65,051 83,438 112,803 124,524 165,508 176,210 178,842 180,669 177,182 173,836 170,253 FFiinnaanncciiaall ccoommppaanniieess22 DDeeaalleerr--ppllaacceedd ppaappeerr33 22 TToottaall 8,796 12.181 17,359 19,790 30,188 34,683 36,685 37,961 38,066 36,692 35,130 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 2,132 3,521 2,784 3,561 6,045 8,003 7,188 6,427 6,038 5,924 5,791 DDiirreeccttllyy ppllaacceedd ppaappeerr44 44 TToottaall 40,574 51,647 64,757 67,854 81,660 82,390 84,774 85,684 81,707 81,347 79,846 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 7,102 12.314 17,598 22,382 26,914 30,576 30,828 31,141 28,901 27,761 27,712 66 NNoonnffiinnaanncciiaall ccoommppaanniieess55 15,681 19.610 30,687 36,880 53,660 59,137 57,383 57,024 57,409 5-5,797 55,277 Bankers dollar acceptances (not seasonally adjusted unless noted otherwise) 7 Total 25,450 33,700 45,321 54,744 69,226 71,601 71,765 72,559 72,709 73,818 Holder 8 Accepting banks 10,434 8.579 9,865 10,564 10,857 11,104 10,362 11,164 11,805 10,752 9 Own bills 8,915 7,653 8,327 8,963 9,743 9,879 9,175 9,734 10,740 9,370 10 Bills bought 1,519 927 1,538 1,601 1,115 1,225 1,188 1,431 1,065 1,382 Federal Reserve Banks 11 Own account 954 1 704 776 0 0 0 0 0 0 n a. 12 Foreign correspondents 362 664 1,382 1,791 1,442 1,234 1,348 . 1,250 1,239 1,139 13 Others 13,700 24,456 33.370 41,614 56,926 59,262 60,054 60,145 59,664 61,927 Basis 14 Imports into United States 6,378 8.574 10,270 11,776 14,765 14,979 15,213 15,094 14,921 16,075 15 Exports from United States 5,863 7.586 9,640 12,712 15,400 16,255 15,649 16,167 15,883 15,608 16 All other 13,209 17.540 25,411 30,257 39,061 40,458 40,842 41,298 41,898 42,136 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, and other business lending; insurance underwriting; and munications, construction, manufacturing, mining, wholesale and retail trade, other investment activities. transportation, and services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Business Lending All 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Effective Date Rate Month Average rate 3 17.50 July 20. 16.00 1981-—June 20.03 1982—Apr. 9 16.50- 29. 15.50 July 20.39 May 17.00 Aug. 2. 15.00 Aug 20.50 June 17 17.00 16. 14.50 20.08 July 20 16.50 18. 14.00 Oct 18.45 Aug. 24 16.00 23. 13.50 Nov 16.84 Sept. 1 15.75 Oct. 7. 13.00 Dec 15.75 Oct. 2 16.50 14. 12.00 1982-—Jan 15.75 Nov. 18 17.00 Nov. 22 11.50 Feb 16.56 23 16.50 1981—May .... 19.61 Mar 16.56 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 2-7, 1982* Size of loan (in thousands of dollars) Item ssiizzeess 11,,000000 1-24 25^19 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 37,561,878 936,686 665,314 816,533 1,982,909 911,670 32,248,746 2 Number of loans 165,698 115,899 20,423 12,555 10,543 1,397 4,882 3 Weighted-average maturity (months) 1.2 3.8 4.0 3.8 4.0 3.5 .8 4 Weighted-average interest rate (percent per annum).. 13.27 17.89 17.22 17.25 16.81 15.92 12.66 5 Interquartile range1 11.91-13.62 17.00-18.74 16.99-17.94 16.13-18.00 16.08-18.12 15.25-17.05 11.85-12.83 Percentage of amount of loans 6 With floating rate 23.1 34.0 41.4 50.8 60.7 68.1 18.2 7 Made under commitment 63.6 37.3 32.6 37.3 45.5 67.3 66.7 8 With no stated maturity 9.8 15.0 14.2 21.0 23.2 33.1 7.8 1-99 9 Amount of loans (thousands of dollars) 3.907,991 272,632 350,030 158,684 3,126,644 10 Number of loans 25,774 23,334 1,637 242 562 11 Weighted-average maturity (months) 46.5 36.0 32.2 34.9 49.6 12 Weighted-average interest rate (percent per annum).. 15.22 18.90 16.78 16.20 14.68 13 Interquartile range1 12.33-16.96 17.23-19.56 16.50-17.35 15.87-17.23 12.16-16.25 Percentage of amount of loans 14 With floating rate 60.0 39.3 93.1 79.9 57.0 15 Made under commitment 61.2 45.0 43.8 81.4 63.5 1-24 25-49 50-99 500 and over 16 Amount of loans (thousands of dollars) 1,371,559 166,552 80,023 89,757 326,158 709,068 17 Number of loans 32,185 26,780 2,149 1,533 1,453 271 18 Weighted-average maturity (months) 7.9 5.1 5.0 5.9 7.9 9.3 19 Weighted-average interest rate (percent per annum).. 17.19 18.29 17.79 18.59 19.19 15.77 20 Interquartile range1 15.75-18.97 17.55-19.26 17.32-18.12 17.94-19.86 17.81-20.62 14.09-17.69 Percentage of amount of loans 21 With floating rate 63.9 26.3 92.1 21.0 94.0 61.2 22 Secured by real estate 73.7 47.3 93.1 22.1 87.9 77.6 23 Made under commitment 68.6 24.8 91.7 19.7 89.6 72.9 24 With no stated maturity 5.6 .8 3.7 3.4 2.8 8.4 Type of construction 25 1- to 4-family 21.0 37.5 82.7 44.4 9.9 12.3 26 Multifamily 6.7 4.6 2.6 5.4 10.1 6.2 27 Nonresidential 72.4 57.9 14.7 50.2 80.0 81.5 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over 28 Amount of loans (thousands of dollars) 1,217,411 144,565 158,245 121,973 140,376 194,110 458,141 29 Number of loans 59,556 41,163 10,914 3,734 2,105 1,251 388 30 Weighted-average maturity (months) 5.4 5.6 5.8 5.7 6.4 6.0 4.7 31 Weighted-average interest rate (percent per annum).. 16.81 17.48 17.31 17.66 17.49 17.45 15.72 32 Interquartile range1 16.33-17.99 16.87-18.12 16.63-18.03 17.17-18.28 17.00-17.98 17.05-17.99 15.00-17.23 By purpose of loan 33 Feeder livestock 16.76 17.67 17.26 18.18 17.13 17.22 15.87 34 Other livestock 15.56 17.02 17.74 17.47 * * * 35 Other current operating expenses 16.95 17.47 17.27 17.51 17.66 17.38 14.92 36 Farm machinery and equipment 17.27 17.75 16.78 18.22 * * * 37 Other 16.92 17.54 18.02 17.64 17.89 17.84 16.23 1. Interest rate range that covers the middle 50 percent of the total dollar amount Write to the Banking Section, Division of Research and Statistics, Board of of loans made. Governors of the Federal Reserve System, Washington, D.C. 20551, about the 2. Fewer than 10 sample loans. differences in statistics because of changes in the reporting form. NOTE. For more detail, see the Board's E.2 (111) statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 DomesticN onfinancial Statistics • December 1982 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. 1982 1982, week ending IInnssttrruummeenntt 11997799 11998800 11998811 Aug. Sept. Oct. Nov. Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 MONEY MARKET RATES 1 Federal funds1-2 11.19 13.36 16.38 10.12 10.31 9.71 9.20 9.44 9.43 9.45 9.61 8.91 Commercial paper3 4 2 1-month 10.86 12.76 15.69 9.50 9.96 9.08 8.66 8.74 8.68 8.73 8.88 8.34 3 3-month 10.97 12.66 15.32 10.15 10.36 9.20 8.69 8.86 8.74 8.75 8.87 8.45 4 6-month 10.91 12.29 14.76 10.80 10.86 9.21 8.72 8.93 8.71 8.76 8.89 8.50 Finance paper, directly placed3-4 5 1-month 10.78 12.44 15.30 9.32 9.89 8.89 8.51 8.57 8.53 8.69 8.71 8.11 6 3-month 10.47 11.49 14.08 9.62 9.65 8.60 8.39 8.36 8.40 8.43 8.55 8.18 7 6-month 10.25 11.28 13.73 9.93 9.63 8.60 8.42 8.36 8.40 8.43 8.56 8.28 Bankers acceptances4-5 8 3-month 11.04 12.78 15.32 10.34 10.40 9.24 8.76 8.93 8.75 8.81 8.91 8.55 9 6-month n.a. n.a. 14.66 10.90 10.82 9.21 8.77 8.99 8.70 8.81 8.88 8.58 Certificates of deposit, secondary market6 10 1-month 11.03 12.91 15.91 10.07 10.23 9.36 8.82 9.01 8.87 8.90 9.06 8.55 11 3-month 11.22 13.07 15.91 10.61 11.66 9.51 8.95 9.14 8.96 9.01 9.19 8.69 12 6-month 11.44 12.99 15.77 11.53 11.46 9.67 9.13 9.42 9.08 9.18 9.31 8.91 13 Eurodollar deposits, 3-month2 11.96 14.00 16.79 11.57 11.74 10.43 9.77 9.95 9.81 9.73 9.93 9.70 U.S. Treasury bills4 Secondary market7 14 3-month 10.07 11.43 14.03 8.68 7.92 7.71 8.07 7.93 7.78 8.07 8.31 7.94 15 6-month 10.06 11.37 13.80 9.88 9.37 8.29 8.34 8.39 8.24 8.39 8.41 8.18 16 1-year 9.75 10.89 13.14 10.37 9.92 8.63 8.44 8.58 8.36 8.47 8.49 8.35 Auction average8 17 3-month 10.041 11.506 14.077 9.006 8.196 7.750 8.042 8.031 7.813 7.964 8.446 7.944 18 6-month 10.017 11.374 13.811 10.105 9.539 8.299 8.319 8.472 8.231 8.397 8.539 8.109 1199 99..881177 1100..774488 1133..115599 1111..119955 1100..228866 99..552211 88..556677 88..556677 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 10.67 12.05 14.78 11.43 10.85 9.32 9.16 9.26 9.03 9.19 9.23 9.07 21 2-year 10.12 11.77 14.56 12.32 11.78 10.19 9.80 9.93 9.68 9.80 9.86 9.76 v> 9.85 9.90 23 3-year 9.71 11.55 14.44 12.62 12.03 10.62 9.98 10.52 9.96 9.96 10.01 9.92 24 5-year 9.52 11.48 14.24 13.00 12.25 10.80 10.38 10.73 10.34 10.44 10.51 10.21 25 7-year 9.48 11.43 14.06 13.14 12.36 10.88 10.53 10.84 10.48 10.54 10.56 10.46 26 10-year 9.44 11.46 13.91 13.06 12.34 10.91 10.55 10.87 10.48 10.53 10.56 10.52 27 20-year 9.33 11.39 13.72 12.91 12.16 10.97 10.57 10.97 10.55 10.56 10.56 10.52 28 30-year 9.29 11.30 13.44 12.77 12.07 11.17 10.54 11.16 10.70 10.46 10.47 10.47 Composite12 29 Over 10 years (long-term) 8.74 10.81 12.87 12.15 11.48 10.51 10.18 10.44 10.03 10.11 10.22 10.23 State and local notes and bonds Moody's series13 30 Aaa 5.92 7.85 10.43 10.68 9.70 9.15r 9.45 9.40 9.40 9.30 9.70 9.40 31 Baa 6.73 9.01 11.76 12.36 11.88' 10.66r 10.79 10.75 10.85 10.80 10.80 10.70 32 Bond Buyer series14 6.52 8.59 11.33 11.23 10.66 9.69 10.07 10.05 9.96 9.92 10.20 10.16 Corporate bonds Seasoned issues15 33 All industries 10.12 12.75 15.06 15.06 14.34 13.54 13.08 13.40 13.14 13.08 13.06 13.02 34 Aaa 9.63 11.94 14.17 13.71 12.94 12.12 11.68 12.00 11.68 11.62 11.70 11.67 35 Aa 9.94 12.50 14.75 14.48 13.72 12.97 12.51 12.86 12.53 12.49 12.52 12.50 36 A 10.20 12.89 15.29 15.70 15.07 14.34 13.81 14.15 13.92 13.80 13.80 13.73 37 Baa 10.69 13.67 16.04 16.32 15.63 14.73 14.30 14.57 14.44 14.39 14.23 14.18 Aaa utility bonds16 38 10.03 12.74 15.56 13.95 13.50 12.20 11.76 12.20 11.72 11.80 39 Recently offered issues 10.02 12.70 15.56 14.47 13.57 12.34 11.88 12.15 11.92 11.76 11.88 11.90 MEMO: Dividend/price ratio17 40 Preferred stocks 9.07 10.57 12.36 12.78 12.41 11.71 11.18 11.46 11.29 11.08 11.20 11.15 41 Common stocks 5.46 5.25 5.41 6.32 5.63 5.12 4.92 5.05 4.79 4.84 4.94 5.10 1. Weekly and monthly figures are averages of all calendar days, where the 11. Each weekly figure is calculated on a biweekly basis and is the average of rate for a weekend or holiday is taken to be the rate prevailing on the preceding five business days ending on the Monday following the calendar week. The biweekly business day. The daily rate is the average of the rates on a given day weighted rate is used to determine the maximum interest rate payable in the following twoby the volume 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

Securities Markets A29 1.36 STOCK MARKET Selected Statistics 1982 IInnddiiccaattoorr 11997799 11998800 11998811 Mar. Apr. May June July Aug. Sept. Oct. Nov. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 55.67 68.06 74.02 63.86 66.97 67.07 63.10 62.82 62.91 70.21 76.10 79.75 ?. Industrial 61.82 78.64 85.44 71.51 75.59 75.97 71.59 71.37 70.98 80.08 86.67 90.76 3 Transportation 45.20 60.52 72.61 55.19 57.91 56.84 53.07 53.40 53.98 61.39 66.64 71.92 4 Utility 36.46 37.35 38.90 38.57 39.20 39.40 37.34 37.20 38.19 40.36 42.67 43.46 5 Finance 58.65 64.28 73.52 69.08 71.44 69.16 63.19 61.59 62.84 69.66 80.59 88.66 6 Standard & Poor's Corporation (1941-43 = 10)1... 107.94 118.71 128.05 110.84 116.31 116.35 109.70 109.38 109.65 122.43 132.66 138.10 7 American Stock Exchange (Aug. 31, 1973 = 100) 186.56 300.94 343.58 255.08 271.15 272.88 254.72 250.63 ' 253.54 286.22 308.74 333.54 Volume of trading (thousands of shares) 8 New York Stock Exchange 32,233 44,867 46,967 55,227 54,116 51,328 50,481 54,530 76,031 73,710 98,508 88,431 9 American Stock Exchange 4,182 6,377 5,346 4,329 3,937 4,292 3,720 3,611 5,567 5,064 7,828 8,672 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 11,619 14,721 14,411 12,095 12,202 12,237 11,783 11,729 11,396 11,208 11,728 11 Margin stock3 11,450 14,500 14,150 11,840 11,950 11,990 11,540 11,470 11,150 10,950 11,450 12 Convertible bonds 167 219 259 249 251 246 242 258 245 257 277 13 Subscription issues 2 2 2 6 1 1 1 1 1 1 1 n a. Free credit balances at brokers'' 14 Margin-account 1,105 2,105 3,515 3,895 4,145 4,175 4,215 4,410 4,470 4,990 5,520 15 Cash-account 4,060 6,070 7,150 6,510 6,270 6,355 6,345 6,730 7,550 7,475 8,120 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40 16.0 14.0 37.0 39.0 34.0 40.0 43.0 44.0 30.0 27.0 21.0 18 40-49 29.0 30.0 21.0 24.0 25.0 24.0 21.0 23.0 26.0 26.0 24.0 19 50-59 27.0 25.0 22.0 16.0 18.0 15.0 16.0 13.0 18.0 20.0 22.0 n a. 20 60-69 14.0 14.0 10.0 10.0 10.0 9.0 9.0 9.0 12.0 12.0 16.0 21 70-79 8.0 9.0 6.0 6.0 7.0 6.0 6.0 6.0 8.0 8.0 9.0 22 80 or more 7.0 8.0 6.0 5.0 6.0 5.0 5.0 5.0 6.0 7.0 8.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 16,150 21,690 25,870 28,030 28,252 28,521 29,798 29,773 31,102 31,644 33,689 Distribution by equity status (percent) 24 Net credit status 44.2 47.8 58.0 59.0 57.0 58.0 59.0 59.0 60.0 61.0 61.0 n a. Debt status, equity of 25 60 percent or more 47.0 44.4 31.0 28.0 29.0 29.0 28.0 26.0 28.0 27.0 29.0 26 Less than 60 percent 8.8 7.7 11.0 13.0 13.0 13.0 13.0 14.0 12.0 ' 12.0 10.0 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 by stock. Credit extended is end- ceeds) occur. of-month data for member firms of the New York Stock Exchange. 7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre- In addition to assigning a current loan value to margin stock generally, Regu- scribed in accordance with the Securities Exchange Act of 1934, limit the amount lations T and U permit special loan values for convertible bonds and stock acquired of credit to purchase and carry margin stocks that may be extended on securities through exercise of subscription rights. as collateral by prescribing a maximum loan value, which is a specified percentage 3. A distribution of this total by equity class is shown on lines 17-22. of the market value of the collateral at the time the credit is extended. Margin 4. Free credit balances are in accounts with no unfulfilled commitments to the requirements are the difference between the market value (100 percent) and the brokers and are subject to withdrawal by customers on demand. maximum loan value. The term "margin stocks" is defined in the corresponding regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • December 1982 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1982 AAccccoouunntt 11997799 11998800 11998811 Feb. Mar. Apr. May June July Aug. Sept.' Oct.P Savings and loan associations 1 Assets 578,962 630,712 664,167 672,219 678,365 681,6% 687,273 692,759 697,690 703,399 691,077 691,381 2 Mortgages 475,688 503,192 518,547 516,488 516,111 514,702 514,046 512,997 510,678 509,776 493,899 490,860 3 Cash and investment securities1 46,341 57,928 63,123 66,949 68,125 68,227 70,302 70,824 72,854 74,141 74,692 75,368 4 Other 56,933 69,592 82,497 88,782 94,129 98,767 102,925 108,938 114,158 119,482 122,486 125,153 5 Liabilities and net worth 578,962 630,712 664,167 672,219 678,365 681,696 687,273 692,759 697,690 703,399 691,077 691,381 6 Savings capital 470,004 511,636 525,061 529,756 536,265 533,595 535,215 538,667 539,830 542,648 547,628 546,699 7 Borrowed money 55,232 64,586 88,782 89,146 90,689 93,560 94,117 96,850 98,433 98,803 99,771 100,977 8 FHLBB 40,441 47,045 62,794 62,690 63,636 65,347 65,216 66,925 67,019 66,374 65,567 65,005 y Other 14,791 17,541 25,988 26,456 27,053 28,213 28,901 29,925 31,414 32,429 34,204 35,972 10 Loans in process 9,582 8,767 6,385 6,161 6,418 6,568 6,766 7,116 7,250 7,491 8,084 !,317 LI Other 11,506 12,394 15,544 20,078 18,505 21,948 25,756 24,671 27,375 29,965 19,202 19,303 12 Net worth2 32,638 33,329 28,395 27,078 26,488 26,025 25,419 25,455 24,802 24,492 24,476 24,402 13 MEMO: Mortgage loan commitments outstanding3 16,007 16,102 15,225 15,397 15,582 16,375 16,622 16,828 15,924 16,943 17,256 18,093 Mutual savings banks4 14 Assets 163,405 171,564 175,728 175,763 174,776 174,813 174,952 175,091 175,563 175,563 173,487 Loans 15 Mortgage 98,908 99,865 99,997 98,838 97,464 97,160 96,334 96,346 96,231 94,448 94,382 16 Other 99,,225533 1111,,773333 1144,,775533 15,604 1166,,551144 1166,,442244 17,409 16,546 1177,,110044 1166,,991199 1177,,445588 Securities 17 U.S. government5 7,658 8,949 9,810 9,966 10,072 10,146 9,968 10,112 10,036 9,653 9,404 18 State and local government 2,930 2,390 2,288 2,293 2,276 2,269 2,259 2,253 2,247 2,214 2,191 19 Corporate and other6 37,086 39,282 37,791 37,781 37,379 37,473 37,486 36,958 36,670 35,956 35,845 20 Cash 3,156 4,334 5,442 5,412 5,219 5,494 5,469 6,040 6,167 6,405 6,695 21 Other assets 4,412 5,011 5,649 5,869 5,852 5,846 6,027 6,836 7,109 7,185 7,514 n a. 22 Liabilities 163,405 171,564 175,728 175,763 174,776 174,813 174,952 175,091 175,563 172,780 173,487 23 Deposits 146,006 154,805 155,110 154,626 154,022 153,187 153,354 154,273 154,204 151,897 153,089 24 Regular7 144,070 151,416 153,003 152,616 151,979 151,021 151,253 152,030 151,845 149,613 150,795 25 Ordinary savings 61,123 53,971 49,425 48,297 48,412 47,733 47,895 47,942 47,534 46,856 47,496 26 Time 82,947 97,445 103,578 104,318 103,567 103,288 103,358 104,088 104,310 102,756 103,299 27 Other 1,936 2,086 2,108 2,010 2,043 2,166 2,101 2,243 2,359 2,285 2,294 28 Other liabilities 5,873 6,695 10,632 11,464 11,132 12,141 12,246 11,230 11,940 11,691 11,166 29 General reserve accounts 11,525 11,368 9,986 9,672 9,622 9,485 9,352 9,588 99,,441199 2211,,114455 99,,223322 30 MEMO: Mortgage loan commitments outstanding8 3,182 1,476 1,293 950 978 953 998 1,010 992 1,056 1,217 Life insurance companies 31 Assets 432,282 479,210 525,803 531,166 535,402 539,801 543,470 547,075 551,124 557,094 563,321 Securities 32 Government 338 21,378 25,209 26,208 26,958 27,346 27,835 28,243 28,694 30,263 30,759 33 United States9 4,888 5,345 8,167 9,019 9,576 9,832 10,187 10,403 10,774 12,214 12,606 34 State and local 6,428 6,701 7,151 7,302 7,369 7,467 7,543 7,643 7,705 7,799 7,834 35 Foreign10 9,022 9,332 9,891 9,887 10,013 10,045 10,105 10,197 10,215 10,250 10,319 n a. 36 Business 222,332 238,113 255,769 259,449 259,770 262,599 264,107 265,080 267,627 270,029 273,539 37 Bonds 178,171 190,747 208,098 213,180 213,683 215,586 217,594 219,006 221,503 221,642 223,783 38 Stocks 48,757 47,366 47,670 46,269 46,087 47,013 46,513 46,074 46,124 48,387 49,756 39 Mortgages 119,421 131,030 137,747 138,372 138,762 139,206 139,455 139,539 140,044 140,244 140,404 40 Real estate 13,007 15,063 18,278 18,702 19,167 19,516 19,713 19,959 20,198 20,176 20,268 41 Policy loans 44,825 41,411 48,706 49,490 50,052 50,573 50,992 51,438 51,867 52,238 52,525 42 Other assets 27,563 31,702 40,094 38,945 40,696 40,561 41,368 42,816 42,694 44,144 45,826 Credit unions 43 Total assets/liabilities and capital 65,854 71,709 77,682 78,986 81,055 81,351 82,858 84,107 84,423 85,102 86,554 44 Federal 35,934 39,801 42,382 43,111 44,263 44,371 45,077 45,705 45,931 46,310 47,076 45 State 29,920 31,908 35,300 35,875 36,792 36,980 37,781 38,402 38,492 38,792 39,478 46 Loans outstanding 53,125 47,774 50,448 49,610 49,668 49,533 49,556 49,919 50,133 50,733 51,047 47 Federal 28,698 25,627 27,458 27,051 27,119 27,064 27,073 27,295 27,351 27,659 27,862 n.a. 48 State 24,426 22,147 22,990 22,559 22,549 22,469 22,483 22,624 22,782 23,074 23,185 49 Savings 56,232 64,399 68,871 70,227 72,218 72,569 73,602 74,834 75,088 75,331 76,874 50 Federal (shares) 35,530 36,348 37,574 38,331 39,431 39,688 40,213 40,710 40,969 41,178 41,961 51 State (shares and deposits) 25,702 28,051 31,297 31,896 32,787 32,881 33,389 34,124 34,119 34,153 34,913 For notes see bottom of opposite page. End of Tape 06589STB15--12-14-82 10-10-30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1981 1982 1982 1980 1981 1982 HI H2 HI Aug. Sept. Oct. U.S. budget 1 Receipts" 517,112 599,272 617,766 317,304 301,777 322,478 44,924 59,694 40,539 2 Outlays1'2 576,675 657,204 728,424 333,115 358,558 348,678 59,628 61,403 66,708 3 Surplus, or deficit (-) -59,563 -57,932 -110,658 -15,811 -56,780 -26,200 -14,704 -1,708 -26,169 4 Trust funds 8,801 6,817 5,456 5,797 -8,085 -17,690 -1,997 10,246 -6,269 5 Federal funds3 -68,364 -64,749 -116,115 -21,608 -48,697 -43,889 -12,707 -11,954 -19,889 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -14,549 -20,769 -14,142 -11,046 -8,728 -7,942 -1,336 -1,371 -521 77 OOtthheerr44 303 -236 -3,190 -900 -1,752 227 -711 -1,495 226 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -73,808 -78,936 -127,989 -27,757 -67,260 -33,914 -16,751 -4,575 -26,462 Source or financing 9 Borrowing from the public 70,515 79,329 134,912 33,213 54,081 41,728 21,086 22,129 6,228 10 Cash and monetary assets (decrease, or increase (-))' -355 -1,878 -11,936 2,873 -1,111 -408 2,338 -20,648 13,964 11 Other6 3,648 1,485 5,013 -8,328 14,290 -7,405 -6,673 3,094 6,270 MEMO: 12 Treasury operating balance (level, end of period) 20,990 18,670 29,164 16,389 12,046 10,999 8,019 29,164 14,078 13 Federal Reserve Banks 4,102 3,520 10,975 2,923 4,301 4,099 3,234 10,975 2,309 14 Tax and loan accounts 16,888 15,150 18,189 13,466 7,745 6,900 4,785 18,189 11,769 1. The Budget of the U.S. Government, Fiscal Year 1983, has reclassified sup- 5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold plemental medical insurance premiums and voluntary hospital insurance premiums, tranche drawing rights; loans to International Monetary Fund; and other cash and previously included in other social insurance receipts, as offsetting receipts in the monetary assets. health function. 6. Includes accrued interest payable to the public; allocations of special drawing 2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re- rights; deposit funds; miscellaneous liability (including checks outstanding) ana classified from an off-budget agency to an on-budget agency in the Department of asset accounts; seigniorage; increment on jold; net gain/loss for U.S. currency Labor. valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on 3. Half-year figures are calculated as a residual (total surplus/deficit less trust the sale of gold. fund surplus/deficit). 4. Other off-budget includes Postal Service Fund; Rural Electrification and Tele- SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. phone Revolving Fund; and Rural Telephone Bank; it also includes petroleum Government," Treasury Bulletin, and the Budget of the United States Government, acquisition and transportation and strategic petroleum reserve effective November Fiscal Year 1983. 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 vear are subject to further revision. on a net-of-valuation-reserves basis. Before 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. Be- Life insurance companies: Estimates of the American Council of Life Insurance fore 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, before 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

A32 Domestic Nonfinancial Statistics • December 1982 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Fiscal Source or type year year year 1981 1982 1982 1980 1981 1982 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources1 517,112 599,272 617,766 317,304 301,777 322,478 44,924 59,694 40,539 2 Individual income taxes, net 244,069 285,917 298,111 142,889 147,035 150,565 20,867 32,592 20,832 3 Withheld 223,763 256,332 267,474 126,101 134,199 133,575 20,521 21.814 19,541 4 Presidential Election Campaign Fund... 39 41 39 36 5 34 1 0 0 5 Nonwithheld 63,746 76,844 85,096 59,907 17,391 66,174 1,529 11.429 1,791 6 Refunds 43,479 47,299 54,498 43,155 4,559 49,217 1,185 651 500 Corporation income taxes 7 Gross receipts 72,380 73,733 65,991 44,048 31,056 37,836 1,694 8,118 2,371 8 Refunds 7,780 12,596 16,784 6,565 738 8,028 1,271 1,972 2,832 9 Social insurance taxes and contributions, net 157,803 182,720 201,131 101,316 91,592 108,079 17,961 15,608 15,157 10 Payroll employment taxes and contributions2 133,042 156,953 172.744 83,851 82,984 88,795 14,823 14.283 14,036 11 Self-employment taxes and contributions3 5,723 6,041 7,941 6,240 244 7,357 0 790 36 12 Unemployment insurance 15,336 16,129 16,234 9,205 6,355 9,809 2,743 167 762 13 Other net receipts1-4 3,702 3,598 4,212 2,020 2,009 2,119 396 368 324 14 Excise taxes 24,329 40,839 36,311 21,945 22,097 17,525 2,828 2,732 2,623 15 Customs deposits 7,174 8,083 8,854 3,926 4,661 4,310 747 688 675 16 Estate and gift taxes 6,389 6,787 7,991 3,259 3,742 4,208 681 595 500 17 Miscellaneous receipts5 12,748 13,790 16.161 6,487 8,441 7,984 1,418 1,333 1,212 OUTLAYS 18 All types1-6 576,675 657,204 728,424 333,115 358,558 346,286 59,628 61,403 66,708 19 National defense 135,856 159,765 187.397 80,005 87,421 93,154 15,318 16,983 16,283 20 International affairs 10,733 11,130 9,983 5,999 4,655 5,183 395 1,435 1,027 21 General science, space, and technology . .. 5,722 6,359 7,096 3.314 3,388 3,370 620 519 603 22 Energy 6,313 10,277 4,844 5.677 4,394 2,814 256 71 694 23 Natural resources and environment 13,812 13.525 13,086 6,476 7,296 5,636 1,172 1,311 1,137 24 Agriculture 4,762 5,572 14,808 3,101 5,181 7,087 707 1,044 2,029 25 Commerce and housing credit 7,788 3,946 3,843 2,073 1,825 1,410 -385 -402 1,119 26 Transportation 21,120 23,381 20,589 11,991 10,753 9,915 1,836 2,054 1,745 27 Community and regional development.... 10,068 9,394 7.410 4,621 4,269 3,193 675 708 946 28 Education, training, employment, social services 30,767 31,402 25,411 15,928 13,878 12,595 2,408 1,696 2,167 29 Health1 55,220 65,982 74,018 33,113 35,322 37,213 6,356 6.499 6,403 30 Income security6 193,100 225,099 248,807 113,490 129,269 112,782 20,346 21,612 22,186 31 Veterans benefits and services 21,183 22,988 23,973 10.531 12,880 10,865 997 1,928 1,945 32 Administration of justice 4,570 4,698 4,648 2,344 2,290 2,334 427 401 368 33 General government 4,505 4,614 4,833 2,692 2,311 2,410 630 365 146 34 General-purpose fiscal assistance 8,584 6,856 6,161 3.015 3,043 3.325 38 32 1,558 35 Interest 64,504 82,537 100,777 41,178 47,667 50,070 8,871 6.931 7,672 36 Undistributed offsetting receipts7 -21,933 -30.320 -29,261 -12,432 -17.281 -14,680 -1,038 -1.785 -1,319 1. The Budget of the U.S. Government, Fiscal Year 1983 has reclassified sup- 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous replemental medical insurance premiums and voluntary hospital insurance premiums, ceipts. previously included in other social insurance receipts, as offsetting receipts in the 6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was rehealth function. classified from an off-budget agency to an on-budget agency in the Department of 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. Labor. 3. Old-age, disability, and hospital insurance. 7. Consists of interest received by trust funds, rents and royalties on the outer 4. Federal employee retirement contributions and civil service retirement and continental shelf, and U.S. government contributions for employee retirement. disability fund. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Government" and the Budget of the U.S. Government, Fiscal Year 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1980 1981 1982 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 914.3 936.7 970.9 977.4 1,003.9 1,034.7 1,066.4 1,084.7 1,147.0 ?. Public debt securities 907.7 930.2 964.5 971.2 997.9 1,028.7 1,061.3 1,079.6 1.142.0 3 Held by public 710.0 737.7 773.7 771.3 789.8 825.5 858.9 867.9 925.6 4 Held by agencies 197.7 192.5 190.9 199.9 208.1 203.2 202.4 211.7 216.4 5 Agency securities 6.6 6.5 6.4 6.2 6.1 6.0 5.1 5.0 5.0 6 Held by public 5.1 5.0 4.9 4.7 4.6 4.6 3.9 3.9 3.7 7 Held by agencies 1.5 1.5 1.5 1.5 1.5 1.4 1.2 1.1 1.3 8 Debt subject to statutory limit 908.7 931.2 965.5 972.2 998.8 1,029.7 1,062.2 1,080.5 1,142.9 9 Public debt securities 907.1 929.6 963.9 970.6 997.2 1,028.1 1,060.7 1,079.0 1.141.4 10 Other debt1 1.6 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.5 11 MEMO: Statutory debt limit 925.0 935.1 985.0 985.0 999.8 1,079.8 1,079.8 1,143.1 1,143.1 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 1982 TTyyppee aanndd hhoollddeerr 11997788 11997799 11998800 11998811 July Aug. Sept. Oct. Nov. 1 Total gross public debt 789.2 845.1 930.2 1,028.7 1,089.6 1,109.2 1,142.0 1,142.8 1,161.7 By type 2 Interest-bearing debt 782.4 844.0 928.9 1,027.3 1,083.3 1,108.1 1,140.9 1,136.8 1,160.5 3 Marketable 487.5 530.7 623.2 720.3 774.1 801.4 824.4 824.7 852.5 4 Bills 161.7 172.6 216.1 245.0 262.0 273.1 277.9 283.9 293.5 5 Notes 265.8 283.4 321.6 375.3 411.1 457.4 442.9 438.1 454.2 6 Bonds 60.0 74.7 85.4 99.9 101.0 100.9 103.6 102.7 104.7 7 Nonmarketable1 294.8 313.2 305.7 307.0 309.2 306.7 316.5 312.2 308.0 8 2.2 2.2 9 State and local government series 24.3 24.6 23.8 23.0 23.4 23.5 23.6 23.8 25.0 10 Foreign issues3 29.6 28.8 24.0 19.0 16.6 15.6 14.6 14.6 14.9 11 Government 28.0 23.6 17.6 14.9 13.6 12.5 12.2 12.2 12.5 12 Public 1.6 5.3 6.4 4.1 3.1 3.1 2.4 2.4 2.4 13 Savings bonds and notes 80.9 79.9 72.5 68.1 67.4 67.4 67.5 67.8 )8.1 14 Government account series4 157.5 177.5 185.1 196.7 201.5 119.9 210.5 205.7 199.9 15 Non-interest-bearing debt 6.8 1.2 1.3 1.4 1.1 1.1 1.2 6.0 1.2 By holder5 16 U.S. government agencies and trust funds 170.0 187.1 192.5 203.3 206.7 205.8 216.4 17 Federal Reserve Banks 109.6 117.5 121.3 131.0 129.4 132.9 134.4 18 Private investors 508.6 540.5 616.4 694.5 749.6 19 Commercial banks 93.2 96.4 116.0 109.4 110.0 20 Mutual savings banks 5.0 4.7 5.4 5.2 5.6 21 Insurance companies 15.7 16.7 20.1 19.1 22.6 22 Other companies 19.6 22.9 25.7 37.8 39.9 n .a. n a. n a. n a. 23 State and local governments 64.4 69.9 78.8 85.6 88.7 Individuals 24 Savings bonds 80.7 79.9 72.5 68.0 67.4 25 Other securities 30.3 36.2 56.7 75.6 79.0 26 Foreign and international6 137.8 124.4 127.7 141.4 143.3 27 Other miscellaneous investors7 58.9 90.1 106.9 152.3 193.1 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'/2 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. 1.42 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity^ ASeries discontinued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Financial Statistics • December 1982 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1982 1982, week ending Wednesday IItteemm 11997799 11998800 11998811 Aug. r Sept. ' Oct. Oct. 27 Nov. 3 Nov. 10 Nov. 17 Nov. 24 Immediate delivery1 1 U.S. government securities 13,183 18,331 24.728 40.466 38,001 35,137 32,897 34,892 38,955 32,660 37,220 By maturity 2 Bills 7,915 11,413 14.768 23.287 21,037 18,466 16,729 19,007 17,823 19,194 20,325 3 Other within 1 year 454 421 621 1,093 1,180 816 633 929 838 900 531 4 1-5 years 2,417 3.330 4.360 8.631 7,278 7,629 8,179 7,029 7,803 5,815 7,938 5 5-10 years 1,121 1,464 2,451 4,138 4,863 4,250 3,747 3,716 4,595 3,016 4,695 6 Over 10 years 1,276 1,704 2.528 3.317 3,643 3,976 3,608 4,210 7,896 3,735 3,732 By type of customer 7 U.S. government securities dealers 1,448 1,484 1,640 1,980 1,849 1,614 1,939 1,879 2,156 2,190 2,236 8 U.S. government securities brokers 5,170 7,610 11,750 19,792 17,937 17,298 15,804 16,096 17,864 16,651 17,699 9 All others2 6,564 9,237 11,337 18.695 18,215 16,225 15,153 16,917 18,935 14,819 17,286 10 Federal agency securities 2,723 3,258 3.306 4.972 4,644 5,827 5,634 5,815 5,282 5,035 5,056 11 Certificates of deposit 1,764 2.472 4.477 5,381 4,542 5,273 4,061 5,290 3,689 4,929 5,877 12 Bankers acceptances 1,807 2,787 2,376 3,065 2,708 3,247 2,577 2,723 3,278 13 Commercial paper 6,128 7,685 7,669 7.342 6,270 8,550 7,202 7,523 7.692 Futures transactions3 14 Treasury bills 3.523 6.404 5,600 4,499 4,048 4,213 3,957 5,575 4,946 15 Treasury coupons 1.330 1.572 1,678 1,922 1,863 1,864 2,242 1,618 1,912 16 Federal agency securities n a. n a. 234 331 262 332 337 224 186 269 148 Forward transactions4 17 U.S. government securities 365 1,027 1,752 760 1,125 865 1,318 1,105 1,590 18 Federal agency securities 1,370 815 985 1,132 1,197 1,133 1,228 1,143 557 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, NOTE. 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 1982 1982, week ending Wednesday IItteemm 11997799 11998800 11998811 Aug. Sept. ' Oct. Oct. 6 Oct. 13 Oct. 20 Oct. 27 Nov. 3 Net immediate1 1 U.S. government securities 3,223 4,306 9,033 4,957 2,107 3,641 1,879 3,595 3,931 4,611 4,541 2 Bills 3,813 4.103 6,485 1,130 275 1,024 85 772 1,372 1,271 2,062 3 Other within 1 year 325 -1.062 -1,526 -632 -534 109 -128 41 126 275 341 4 1-5 years 455 434 1,488 2,645' 1,423 2,612 2,305 2,622 2,135 3,409 2,484 5 5-10 years 160 166 292 -266' -325 -691 -701 -369 -488 -1,020 -900 6 Over 10 years 30 665 2.294 1,880' 1,268 587 317 530 786 676 554 7 Federal agency securities 1,471 797 2,277 3,556' 4,416 5,241 5,073 5,270 4,787 5,617 5,856 8 Certificates of deposit 2.794 3.115 3,435 7,834 6,467 6,109 6,282 6,870 6,480 5,306 5,281 9 Bankers acceptances 1,746 3,210 2,778 3,283 2,823 3.368 3,393 3,366 3,488 10 Commercial paper 2,658 3,658 3,555 3,965 4,244 3.941 4,083 3,806 3,752 Futures positions 11 Treasury bills -8,934 6,200 5,250 5,347 2,489 4,406 5,303 7,684 5,694 12 Treasury coupons n. a. n. a. -2,733 -2,130' -1,282 -1,141 -552 -998 -1,281 -1,385 -1,803 13 Federal agency securities 522 -285 -569 -569 -816 -588 -598 -461 -260 Forward positions 14 U.S. government securities -603 -654 -2,117 -565 -749 -306 -318 -805 -732 15 Federal agency securities -451 -1,222 -1,689 -1,835 -1,880 -1,588 -1,789 -1,973 - 2,042 Financing2 Reverse repurchase agreements- 16 Overnight and continuing ... 14.568 29,374 30,477 29,581 30,451 28.874 29,951 29,049 17 Term agreements 32,048 50,497 49,870 50,483 47,767 49,792 52,184 52,187 Repurchase agreements4 18 Overnight and continuing ... 35.919 50,318 45,342 51,250 43,919 55,129 53,410 52,544 19 Term agreements 29.449 48,692 50,617 43,963 47,612 40,607 43,744 43,887 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 1982 AAggeennccyy 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. 1 Federal and federally sponsored agencies1 137,063 163,290 193,229 228,749 232,274 234,593 238,787 242,565 n.a. n.a. 2 Federal agencies 23,488 24,715 28,606 31,408 31,613 31,551 32,274 32.302 32,280 32,606 .3 Defense Department2 968 738 610 454 447 434 419 408 399 388 4 Export-Import Bank3 4 8,711 9,191 11,250 13,421 13,475 13,416 13,939 13,938 13,918 14,042 5 Federal Housing Administration5 588 537 477 382 376 363 358 353 345 335 6 Government National Mortgage Association participation certificates6 3,141 2,979 2,817 2,165 2,165 2,165 2,165 2.165 2,165 2,165 7 Postal Service7 2,364 1,837 1,770 1,538 1,538 1,471 1,471 1,471 1,471 1,471 8 Tennessee Valley Authority 7,460 8,997 11,190 13,250 13,410 13,500 13,715 13,760 13,775 14,010 9 United States Railway Association7 356 436 492 198 202 202 207 207 207 195 10 Federally sponsored agencies' 113,575 138,575 164,623 197,341 200,661 203,042 206,513 210,263 n.a. n.a. 11 Federal Home Loan Banks 27,563 33,330 41,258 58,839 59,937 60,772 61,883 62,058 n.a. n.a. 12 Federal Home Loan Mortgage Corporation 2,262 2,771 2,536 2,500 2,500 2,500 3,099 3,099 n.a. n.a. 13 Federal National Mortgage Association 41,080 48,486 55,185 59,270 60,478 61,996 62,660 65,563 65,733 68,130 14 Federal Land Banks 20,360 16,006 12,365 8,717 8,217 8,217 8,217 7,652 7,652 7,652 15 Federal Intermediate Credit Banks 11.469 2,676 1,821 1,388 926 926 926 926 926 926 16 Banks for Cooperatives 4,843 584 584 220 220 220 220 220 220 220 17 Farm Credit Banks1 5,081 33,216 48,153 61,405 63,381 63,409 64,506 65,743 65,657 65,553 18 Student Loan Marketing Association8 915 1,505 2,720 5,000 5,000 5,000 5,000 5,000 5,000 5,000 19 Other 2 1 1 2 2 2 2 2 2 2 MEMO: 20 Federal Financing Bank debt1,9 51,298 67,383 87,460 113,567 114,961 117,475 120,241 121,261 122,623 124,357 Lending to federal and federally sponsored agencies 21 Export-Import Bank4 6,898 8,353 10,654 13,305 13,305 13,305 13,829 13,829 13,823 13,954 22 Postal Service7 2,114 1,587 1,520 1,288 1,288 1,221 1,221 1,221 1,221 1,221 23 Student Loan Marketing Association8 915 1,505 2,720 5,000 5,000 5,000 5,000 5,000 5,000 5.000 24 Tennessee Valley Authority 5,635 7,272 9,465 11,525 11,685 11,775 11,990 12,035 12,050 12,285 25 United States Railway Association7 356 436 492 198 202 202 207 207 207 195 Other Lendingw 26 Farmers Home Administration 23,825 32,050 39,431 48,681 49,356 51,056 52,346 52,711 53,311 53.736 27 Rural Electrification Administration 4,604 6,484 9,196 14,452 14,716 15,046 15,454 15,688 15,916 16,282 28 Other 6,951 9.696 13.982 19,118 19,409 19,870 20,194 20.570 21,095 21,684 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 Financial Statistics • December 1982 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1982 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11997799 11998800 11998811 Mar. Apr. May' June' July' Aug.' Sept. 1 All issues, new and refunding1 43,365 48,367 47,732 5,661 6,709 5,617 5,753 5,528 6,484 6,397 Type of issue 2 General obligation 12,109 14,100 12,394 1,733 2,223 1,506 1,811 967 1,682 1,696 3 U.S. government loans2 53 38 34 9 10 10 16 22 25 30 4 Revenue 31,256 34,267 35,338 3,928 4,486 4,111 3,942 4,561 4,802 4,701 5 U.S. government loans2 67 57 55 5 32 38 45 49 52 54 Type of issuer 6 State 4,314 5,304 5,288 432 1,061 601 1,074 257 835 1,071 7 Special district and statutory authority 23,434 26,972 27,499 2,993 3,880 2,973 2.839 3,696 3,641 3,372 8 Municipalities, counties, townships, school districts 15,617 16,090 14,945 2,236 1,768 2,043 1.840 1,575 2,008 1,954 9 Issues for new capital, total 41,505 46,736 46,530 4,798 6,682 5,487 5,663 5,342 6,051 6,198 Use of proceeds 10 Education 5,130 4,572 4,547 405 460 483 724 288 511 833 11 Transportation 2,441 2,621 3,447 363 284 293 244 117 767 542 12 Utilities and conservation 8,594 8,149 10,037 754 1,333 1,363 830 1,272 685 280 13 Social welfare 15,968 19,958 12,729 1,773 2,339 2,021 2,292 2,735 2,488 2,475 14 Industrial aid 3,836 3.974 7,651 636 667 353 397 493 717 1,030 15 Other purposes 5,536 7,462 8,119 867 1,599 974 1,176 437 883 1.038 1. Par amounts of long-term issues based on date of sale. SOURCE. Public Securities Association. 2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration. 1.47 NEW SECURITY ISSUES of Corporations Millions of dollars 1982 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11997799 11998800 11998811 Mar. Apr. May June July' Aug.' Sept. 1 All issues1 51,533 73,694 69,992 6,655 4,819 7,106 4,546 6,162 8,757 7,748 2 Bonds 40,208 53,206 44,643 4,512 2,575 4,420 2,836 3,919 6,509 5,486 Type of offering 3 Public 25.814 41,587 37,653 3,540 2,100 3,973 2,398 2,868 5,546 5,308 4 Private placement 14.394 11,619 6,989 972 475 447 438 1,051 963 178 Industry group 5 Manufacturing 9,678 15,409 12,325 708 497 608 211 1,638 1,602 1,615 6 Commercial and miscellaneous 3,948 6,693 5,229 691 139 490 329 493 1,202 465 7 Transportation 3,119 3,329 2,054 224 26 74 79 43 402 64 8 Public utility 8,153 9,557 8,963 1,568 888 1,186 699 717 902 900 9 Communication 4,219 6,683 4,280 84 16 315 174 84 205 301 10 Real estate and financial 11,094 11,534 11,793 1,236 1.010 1,748 1,344 944 2,196 2,141 11 Stocks 11,325 20,489 25,349 2,143 2,244 2,686 1,710 2,243 2,248 2,262 Type 12 Preferred 3,574 3,631 1,797 199 172 888 67 645 622 447 13 Common 7.751 16,858 23,522 1,944 2,072 1,798 1,643 1,598 1,627 1,815 Industry group 14 Manufacturing 1,679 4,839 5,073 546 259 458 444 203 727 254 15 Commercial and miscellaneous 2,623 5,245 7,557 657 770 578 397 615 374 733 16 Transportation 255 549 779 27 15 35 52 17 62 84 17 Public utility 5,171 6,230 5,577 600 766 477 277 267 697 928 18 Communication 303 567 1,778 3 3 44 8 96 31 4 19 Real estate and financial 1,293 3,059 4,585 310 431 1,094 532 1,045 357 259 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 1982 IItteemm 11998800 11998811 Mar. Apr. May June July Aug. Sept.r Oct. INVESTMENT COMPANIES1 1 Sales of own shares2 15,266 20,596 3,325 2,754 2,345 3,061 3,304 4,322 4,709 5,668 2 Redemptions of own shares3 12,012 15,866 2,056 2,293 1,854 2,038 2,145 2,335 3,052 3,046 3 Net sales 3,254 4,730 1,269 461 491 1,023 1,159 1,987 1,657 2,622 4 Assets4 58,400 55,207 53,001 56,026 54,889 54,238 54,592 62,212 63,783 70,962 Cash position5 5,321 5,277 5,752 6,083 5,992 6,298 5,992 6,039 5,556 5,948 6 Other 53,079 49,930 47,249 49,943 48,896 47,940 48,600 56,173 58,227 65,014 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. 1981 1982 AAccccoouunntt 11997799 11998800 11998811 Q1 Q2 Q3 Q4 Q1 Q2 Q3p 1 Corporate profits with inventory valuation and capital consumption adjustment 194.8 181.6 190.6 200.3 185.1 193.1 183.9 157.1 155.4 165.9 2 Profits before tax 252.7 242.4 232.1 253.1 225.4 233.3 216.5 171.6 171.7 179.9 3 Profits tax liability 87.6 84.6 81.2 91.5 79.2 82.4 71.6 56.7 55.3 60.8 4 Profits after tax 165.1 157.8 150.9 161.6 146.2 150.9 144.9 114.9 116.4 119.1 5 Dividends 52.7 58.1 65.1 61.5 64.0 66.8 68.1 68.8 69.3 70.5 6 Undistributed profits 112.4 99.7 85.8 100.1 82.2 84.1 76.8 46.1 47.0 48.5 7 Inventory valuation -43.1 -43.0 -24.6 -35.5 -22.8 -23.0 -17.1 -4.4 -9.4 -9.9 8 Capital consumption adjustment -14.8 -17.8 -16.8 -17.3 -17.5 -17.1 -15.5 -10.1 -6.9 -4.0 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 • December 1982 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1981 1982 AAccccoouunntt 11997766 11997777 11997788 11997799 11998800 02 03 Q4 Q1 Q2 1 Current assets 827.4 912.7 1,043.7 1,218.2 1,333.5 1,388.3 1,410.9 1,427.1 1,423.6 1,419.4 2 Cash 88.2 97.2 105.5 118.0 127.1 126.2 125.1 131.7 121.3 123.4 3 U.S. government securities 23.5 18.2 17.3 17.0 19.3 19.9 18.0 17.9 17.1 17.4 4 Notes and accounts receivable 292.9 330.3 388.0 461.1 510.6 533.1 542.4 536.7 537.8 534.4 5 Inventories 342.5 376.9 431.6 505.5 543.7 565.3 577.0 587.1 593.8 589.2 6 Other 80.3 90.1 101.3 116.7 132.7 143.8 148.3 153.6 153.6 155.0 7 Current liabilities 495.1 557.1 669.3 807.8 890.9 931.5 967.2 980.0 985.7 982.6 8 Notes and accounts payable 282.1 317.6 382.9 461.2 515.2 525.9 549.5 562.9 555.0 554.9 9 Other 213.0 239.6 286.4 346.6 375.7 405.5 417.7 417.1 430.8 427.8 10 Net working capital 332.4 355.5 374.4 410.5 442.6 456.8 443.7 447.1 437.9 436.8 11 MEMO: Current ratio 1 1.671 1.638 1.559 1.508 1.497 1.490 1.459 1.456 1.444 1.445 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. 1981 1982 IInndduussttrryy11 11998800 11998811 1199882211 Q2 Q3 04 Q1 Q2 03 Q41 1 Total nonfarm business 295.63 321.49 319.99 316.73 328.25 327.83 327.72 323.22 315.79 315.21 Manufacturing 2 Durable goods industries 58.91 61.84 57.95 63.10 62.58 60.78 60.84 59.03 57.14 55.80 3 Nondurable goods industries 56.90 64.95 64.72 62.40 67.53 66.14 67.48 64.74 62.32 64.70 Nonmanufacturing 4 Mining 13.51 16.86 16.05 16.80 17.55 16.81 17.60 16.56 14.63 15.56 Transportation 5 Railroad 4.25 4.24 4.12 4.38 4.18 4.18 4.56 4.73 3.94 3.33 6 Air 4.01 3.81 3.97 3.29 3.34 4.82 3.20 3.54 4.11 5.02 7 Other 3.82 4.00 3.71 4.04 4.09 4.12 4.23 4.06 3.24 3.48 Public utilities 8 Electric 28.12 29.74 33.06 29.32 30.54 31.14 30.95 32.26 34.98 33.89 9 Gas and other 7.32 8.65 8.56 8.53 9.01 8.60 9.17 9.14 8.40 7.78 10 Trade and services 81.79 86.33 86.42 85.88 87.55 88.33 87.80 88.85 87.31 82.01 11 Communication and other2 36.99 41.06 41.43 39.02 41.89 42.92 41.89 40.33 39.73 43.65 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 1981 1982 AAccccoouunntt 11997777 11997788 11997799 11998800 Q2 Q3 Q4 Q1 Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 44.0 52.6 65.7 73.6 79.0 84.5 85.5 85.1 88.0 88.3 2 Business 55.2 63.3 70.3 72.3 78.2 76.9 80.6 80.9 82.6 82.2 3 Total 99.2 116.0 136.0 145.9 157.2 161.3 166.1 166.0 170.6 170.5 4 LESS: Reserves for unearned income and losses.... 12.7 15.6 20.0 23.3 25.7 27.7 28.9 29.1 30.2 30.4 5 Accounts receivable, net 86.5 100.4 116.0 122.6 131.4 133.6 137.2 136.9 140.4 140.1 6 Cash and bank deposits 2.6 3.5 7 8 A Se ll c u o r t i h ti e e r s 14. . 3 9 17 1 . . 3 3 JII 2244..9911 27.5 31.6 34.5 34.2 35.0 37.3 39.1 9 Total assets 104.3 122.4 140.9 150.1 163.0 168.1 171.4 171.9 177.8 179.2 LIABILITIES 10 Bank loans 5.9 6.5 8.5 13.2 14.4 14.7 15.4 15.4 14.5 16.8 11 Commercial paper 29.6 34.5 43.3 43.4 49.0 51.2 51.2 46.2 50.3 46.7 Debt 12 Short-term, n.e.c 6.2 8.1 8.2 7.5 8.5 11.9 9.6 9.0 9.3 9.9 13 Long-term, n.e.c 36.0 43.6 46.7 52.4 52.6 50.7 54.8 59.0 60.3 60.9 14 Other 11.5 12.6 14.2 14.3 17.0 17.1 17.8 19.0 18.9 20.5 15 Capital, surplus, and undivided profits 15.1 17.2 19.9 19.4 21.5 22.4 22.8 23.3 24.5 24.5 16 Total liabilities and capital 104.3 122.4 140.9 150.1 163.0 168.1 171.4 171.9 177.8 179.2 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 SSSeeepppttt... 333000,,, 1982 1982 1982 111999888222111 July Aug. Sept. July Aug. Sept. July Aug. Sept. 1 Total 82,234 868 849 208 20,284 21,549 19,991 19,416 20,700 19,783 2 Retail automotive (commercial vehicles) 12,024 -118 24 -59 802 938 869 920 914 928 3 Wholesale automotive 13,689 1,035 1,101 52 5,878 6,397 6,040 4,843 5,296 5,988 4 Retail paper on business, industrial, and farm equipment.... 28,161 -11 -114 362 1,365 1,448 1,148 1,376 1,562 786 5 Loans on commercial accounts receivable and factored commercial accounts receivable 9,198 85 -9 -78 10,571 11,163 10,279 10,486 11,172 10,357 6 All other business credit 19,162 -123 -153 -69 1,668 1,603 1,655 1,791 1,756 1,724 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • December 1982 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1982 Item 11997799 11998800 11998811 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 74.4 83.4 90.4 95.7 86.4 89.4 98.4 91.4 95.0R 98.7 2 Amount of loan (thousands of dollars) 53.3 59.2 65.3 70.4 64.8 66.2 73.1 66.5 71.6r 73.9 3 Loan/price ratio (percent) 73.9 73.2 74.8 77.2 77.4 77.0 77.3 74.1 78.7 77.7 4 Maturity (years) 28.5 28.2 27.7 28.6 25.9 27.4 28.4 26.4 28. R 28.3 5 Fees and charges (percent of loan amount)2 1.66 2.09 2.67 3.28 3.16 3.00 3.15 2.87 3.04r 2.83 6 Contract rate (percent per annum) 10.48 12.25 14.16 15.13 15.11 14.74 15.01 15.05 14.34 14.03 Yield (percent per annum) 7 FHLBB series5 10.77 12.65 14.74 15.84 15.89 15.40 15.70 15.68 14.98r 14.67 8 HUD series4 11.15 13.95 16.52 16.65 16.50 16.75 16.50 15.40 15.05 13.95 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 10.92 13.44 16.31 16.31 16.19 16.73 16.29 14.61 14.03 12.99 10 GNMA securities6 10.22 12.55 15.29 15.40 15.30 15.84 15.56 14.51 13.57r 12.83 FNMA auctions7 11.17 14.11 16.70 16.27 16.22 15.78 12 Conventional loans 11.77 14.43 16.64 16.66 16.33 16.73 16.85 15.78 15.36 13.92 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 48.050 55,104 58,675 63,132 63,951 65,008 66,158 67,810 68,841 69,152 14 1 HA VA-insured 33,673 37,365 39,341 39,834 39,808 39,829 39,853 39,922 39,871 39,523 15 Conventional 14,377 17,725 19,334 23,298 24,143 25,179 26,305 27,888 28,970 27,629 Mortgage transactions (during period) 16 Purchases 10,812 8,099 6,112 755 1,006 1,223 1,354 1,931 1,670 1,449 17 Sales 0 0 2 0 0 0 0 0 0 0 Mortgage commitments8 10,179 8,083 9,331 2,482 1,550 1,583 2,016 1,820 1,482 19 Outstanding (end of period) 6,409 3,278 3,717 6,586 7,016 7,206 7,674 6,900 6,587 6,268 Auction of 4-month commitments to buy Government-underwritten loans 20 Offered 8,860.4 8,605.4 2,487.2 7.0 35.7 33.1 8.9 43.3 16.4 2.5 21 Accepted 3,920.9 4,002.0 1,478.0 0.0 7.4 7.4 0.0 5.7 0.0 0.0 Conventional loans 22 Offered 4,495.3 3,639.2 2,524.7 29.5 37.8 59.0 37.2 70.1 27.5 13.6 23 Accepted 2,343.6 1,748.5 1,392.3 22.0 23.0 33.1 23.6 42.9 0.0 8.9 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 3,543 4,362 5,245 5,274 5,279 5,295 5,309 5,201 5,207 4,931 25 FHA/VA 1,995 2,116 2,236 2,226 2,232 2,225 2,232 2,216 2,225 2,174 26 Conventional 1,549 2,246 3,010 3,048 3,047 3,069 3,017 2,985 2,982 2,756 Mortgage transactions (during period) 27 Purchases 5,717 3,723 3,789 2,143 1,214 1,581 2,237 2,529 1,799 2,000 28 Sales 4,544 2,527 3,531 2,177 1,194 1,562 2,204 2,619 1,923 2,197 Mortgage commitments10 29 Contracted (during period) 5,542 3,859 6,974 2,824 2,692 3,166 2,189 2,768 2,892 2,506 30 Outstanding (end of period) 797 447 3,518 6,041 7,420 8,970 8,544 9,318 10,211 10,572 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 seror the seller) to obtain a loan. vicing) on accepted bids in Federal National Mortgage Association's auctions of 3. Average effective interest rates on loans closed, assuming prepayment at the 4-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 multifamily 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 loans. 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 1981 1982 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11997799 11998800 11998811 Q2 Q3 Q4 Q1 Q2 Q3 1 All holders 1,337,748 1,471,786 1,583,535 1,533,196 1,561,606 1,583,535 1,603,121 1,624,169 l,635,830r ? 1- to 4-familv 891.066 986,979 1,060,469 1,028,297 1,047,626 1,060,469 1,071,889 1,085,182 1,092,274' 3 Multifamilv 128,433 137,134 141,427 139,280 140,228 141,427 142,904 143,806 144,654r 4 Commercial 235,572 255,655 279,912 268,095 273,746 279,912 284,411 289,690 292,180' 5 82,677 92,018 101,727 97,524 100,006 101,727 103,917 105,491 106,722' 6 Major financial institutions 938,567 997,168 1,040,630 1,023,133 1,033,825 1,040,630 1,041,487 1,042,652 1,028,840 7 Commercial banks1 245,187 263,030 284,536 273,225 279,017 284,536 289,365 294,022 298,342 8 1- to 4-family 149,460 160,326 170,013 164,873 167,550 170,013 171,350 172,596 175,126 9 Multifamily 11,180 12,924 15,132 13,800 14,481 15,132 15,338 15,431 15,666 10 Commercial 75,957 81,081 91,026 86,091 88,588 91,026 94,256 97,522 99,050 11 Farm 8,590 8,699 8,365 8,461 8,398 8,365 8,421 8,473 8,500 12 Mutual savings banks 98,908 99,865 99,997 99,993 99,994 99,997 97,464 96,346 94,246 13 1- to 4-family 66,140 67,489 68,187 68,035 68,116 68,187 66,305 65,381 63.755 14 Multifamily 16,557 16,058 15,960 15,909 15,939 15,960 15,536 15,338 15,004 IS Commercial 16,162 16,278 15,810 15,999 15,909 15,810 15,594 15,598 15,458' 16 Farm 49 40 40 50 30 40 29 29 29 17 Savings and loan associations 475,688 503,192 518,350 515,256 518,778 518,350 515,896 512,745 495,408 18 1- to 4-family 394,345 419,763 432,978 430,702 433,750 432,978 430,928 428,194 413,096' 19 Multifamily 37,579 38,142 37,684 38,077 37,975 37,684 37,506 36,866 35,422' 20 Commercial 43,764 45,287 47,688 46,477 47,053 47,688 47,462 47,685 46,890r 21 Life insurance companies 118,784 131,081 137,747 134,659 136,036 137,747 138,762 139,539 140,844 22 1- to 4-family 16,193 17,943 17,201 17,549 17,376 17,201 17,086 16,451 16,579 23 Multifamily 19,274 19,514 19,283 19,495 19,441 19,283 19,199 18,982 19,130 24 Commercial 71,137 80,666 88,163 84,571 86,070 88,163 89,529 91,113 92,125 25 Farm 12,180 12,958 13,100 13,044 13,149 13,100 12,948 12,993 13,010 26 Federal and related agencies 97,084 114,300 126,112 119,124 121,772 126,112 128,721 132,188 136,836' 27 Government National Mortgage Association 3,852 4,642 4,765 4,972 4,382 4,765 4,438 4,669 4,697 28 1- to 4-family 763 704 693 698 696 693 689 688 687 29 Multifamily 3,089 3,938 4,072 4,274 3,686 4,072 3,749 3,981 4,010 30 Farmers Home Administration 1,274 3,492 2,235 2,662 1,562 2,235 2,469 2,038 2,188 31 1- to 4-family 417 916 914 1,151 500 914 715 792 842 32 Multifamily 71 610 473 464 242 473 615 198 223 33 Commercial 174 411 506 357 325 506 499 444 469 34 Farm 612 1,555 342 690 495 342 640 604 654 35 Federal Housing and Veterans Administration 5,555 5,640 5,999 5,895 6,005 5,999 6,003 5,908 5,921 36 1- to 4-family 1,955 2,051 2,289 2,172 2,240 2,289 2,266 2,218 2,171 37 Multifamily 3,600 3,589 3,710 3,723 3,765 3,710 3,737 3,690 3,750 38 Federal National Mortgage Association 51,091 57,327 61,412 57,657 59,682 61,412 62,544 65,008 68,841 39 1- to 4-family 45,488 51,775 55,986 52,181 54,227 55,986 57,142 59,631 63,495 40 Multifamily 5,603 5,552 5,426 5,476 5,455 5,426 5,402 5,377 5.346 41 Federal Land Banks 31,277 38,131 46,446 42,681 44,708 46,446 47,947 49,270 49,983' 42 1- to 4-family 1,552 2,099 2,788 2,401 2,605 2,788 2,874 2,954 3,029' 43 Farm 29,725 36,032 43,658 40,280 42,103 43,658 45,073 46,316 46,954' 44 Federal Home Loan Mortgage Corporation . 4,035 5,068 5,255 5,257 5,433 5,255 5,320 5,295 5,206 45 1- to 4-family 3,059 3,873 4,018 4,025 4,166 4,018 4,075 4,042 3,944 46 Multifamily 976 1,195 1,237 1,232 1,267 1,237 1,245 1,253 1,262 47 Mortgage pools or trusts2 118,664 142,258 162,990 152,308 158,140 162,990 172,292 182,945 196,337 48 Government National Mortgage Association 75,787 93,874 105,790 100,558 103,750 105,790 108,592 111,459 114,396 49 1- to 4-family 73,853 91,602 103,007 98,057 101,068 103,007 105,701 108,487 111,348 50 Multifamily 1,934 2,272 2,783 2,501 2,682 2,783 2,891 2,972 3,048 51 Federal Home Loan Mortgage Corporation . 15,180 16,854 20,560 17,565 17,936 20,560 26,745 33,249 43,254' 52 1- to 4-family 12,149 13,471 16,605 14,115 14,401 16,605 21,781 27,193 35,686' 53 Multifamily 3,031 3,383 3,955 3,450 3,535 3,955 4,964 6,056 7,568 54 717 717 2,786 4,556 8,133 55 717 717 2,786 4,556 8,133 56 Farmers Home Administration 27,697 31,530 36,640 34,185 36,454 36,640 36,955 38,237' 38,687 57 1- to 4-family 14,884 16,683 18,378 17,165 18,407 18,378 18,740 19,056 19,256 58 Multifamily 2,163 2,612 3,426 3,097 3,488 3,426 3,447 4,026 4,076 59 Commercial 4,328 5,271 6,161 5,750 6,040 6,161 6,351 6,574 6,624 60 Farm 6,322 6,964 8,675 8,173 8,519 8,675 8,417 8,581 8,731 61 Individual and others4 183,433 218,060 253,803 238,631 247,869 253,803 260,621 266,384 273,817 62 1- to 4-family5 110,808 138,284 167,412 155,173 162,524 167,412 172,237 177,499 183,260 63 Multifamily 23,376 27,345 28,286 27,782 28,272 28,286 29,275 29,636 30,149 64 Commercial 24,050 26,661 30,558 28,850 29,761 30,558 30,720 30,754 31,564 65 Farm 25,199 25,770 27,547 26,826 27,312 27,547 28,389 28,495 28,844 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. Outstanding balances on FNMA's issues of securities backed by pools of terpolations and extrapolations when required, are estimated mainly by the Federal conventional mortgages held in trust. The program was implemented by FNMA Reserve. Multifamily debt refers to loans on structures of five or more units. in October 1981. 4. Other holders include mortgage companies, real estate investment trusts, state and local credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and U.S. agencies for which amounts are small or for which separate data are not readily available. 5. Includes a new estimate of residential mortgage credit provided by individuals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 DomesticN onfinancial Statistics • December 1982 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1982 11997799 11998800 Apr. May June July Aug. Sept. Oct. Amounts outstanding (end of period) 1 Total 312,024 313,472 333,375 328,363 329,338 331,851 332,471 333,808 335,948 334,871 By major holder 2 Commercial banks 154,177 147,013 149,300 146,616 146,147 146,775 146,745 147,275 148,280 147,926 3 Finance companies 68,318 76,756 89,818 90,674 91,958 93,009 93,353 93,207 93,357 92,541 4 Credit unions 46,517 44,041 45,954 45,450 45,472 45,882 45,698 46,154 46,846 46,645 5 Retailers2 28,119 28,448 29,551 26,537 26,536 26,645 26,710 26,751 26,829 27,046 6 Savings and loans 8,424 9,911 11,598 12,081 12,202 12,312 12,520 12,833 13,051 13,457 7 Gasoline companies 3,729 4,468 4,403 4,227 4,218 4,398 4,600 4,714 4,669 4,322 8 Mutual savings banks 2,740 2,835 2,751 2,778 2,805 2,830 2,845 2,874 2,916 2,934 By major type of credit 9 Automobile 116,362 116,838 126,431 126,201 127,220 128,415 128,359 128,281 129,085 128,619 10 Commercial banks 67,367 61,536 59,181 58,458 58,099 58,140 58,131 58,222 58,762 58,796 11 Indirect paper 38,338 35,233 35,097 34,920 34,791 34,903 34,979 34,996 35,449 35,490 12 Direct loans 29,029 26,303 24,084 23,538 23,308 23,237 23,152 23,226 23,313 23,306 13 Credit unions 22,244 21,060 21,975 21,733 21,744 21,940 21,852 22,071 22,402 22,306 14 Finance companies 26,751 34,242 45,275 46,010 47,377 48,335 48,376 47,988 47,921 47,518 15 Revolving 56,937 58,352 63,049 58,641 58,647 59,302 59,824 60,475 60,932 60,811 16 Commercial banks 29,862 29,765 33,110 31,638 31,619 31,974 32,205 32,691 33,104 33,085 17 Retailers 23,346 24,119 25,536 22,776 22,810 22,930 23,019 23,070 23,159 23,404 18 Gasoline companies 3,729 4,468 4,403 4,227 4,218 4,398 4,600 4,714 4,669 4,322 19 Mobile home 16,838 17,322 18,486 18,402 18,479 18,543 18,601 18,741 18,778 18,814 20 Commercial banks 10,647 10,371 10,300 9,974 9,960 9,924 9,857 9,790 9,723 9,631 21 Finance companies 3,390 3,745 4,494 4,608 4,666 4,731 4,801 4,916 4,953 4,971 22 Savings and loans 2,307 2,737 3,203 3,336 3,369 3,400 3,458 3,544 3,604 3,716 23 Credit unions 494 469 489 484 484 488 486 491 498 496 24 Other 121,887 120,960 125,409 125,119 124,992 125,591 125,687 126,311 127,153 126,627 25 Commercial banks 46,301 45,341 46,709 46,546 46,469 46,737 46,552 46,572 46,691 46,414 26 Finance companies 38,177 38,769 40,049 40,056 39,915 39,943 40,176 40,303 40,483 40,052 27 Credit unions 23,779 22,512 23,490 23,233 23,244 23,454 23,360 23,592 23,946 23,844 28 Retailers 4,773 4,329 4,015 3,761 3,726 3,715 3,691 3,681 3,670 3,642 29 Savings and loans 6,117 7,174 8,395 8,745 8,833 8,912 9,063 9,289 9,447 9,741 30 Mutual savings banks 2,740 2,835 2,751 2,778 2,805 2,830 2,845 2,874 2,916 2,934 Net change (during period)3 31 Total 38,381 1,448 19,894 1,175 1,399 1,349 570 66 1,092 -324 By major holder 32 Commercial banks 18,161 -7,163 2,284 96 -13 -100 -66 -252 481 -49 33 Finance companies 14,020 8,438 13,062 544 1,126 874 195 -142 115 -393 34 Credit unions 2,185 -2,475 1,913 132 -39 38 -69 179 346 -32 35 Retailers2 2,132 329 1,103 181 68 304 297 -109 60 -88 36 Savings and loans 1,327 1,485 1,682 205 221 187 196 268 181 328 37 Gasoline companies 509 739 -65 -6 -20 38 3 65 -115 -115 38 Mutual savings banks 47 95 -85 23 56 8 14 57 24 25 By major type of credit 39 Automobile 14,715 477 9,595 233 959 655 61 -402 505 -78 40 Commercial banks 6,857 -5,830 -2,355 -159 -305 -240 101 -146 435 52 41 Indirect paper 4,488 -3,104 -136 2 -52 -52 225 -129 332 72 42 Direct loans 2,369 -2,726 -2,219 -161 -253 -188 -124 -17 103 -20 43 Credit unions 1,044 -1,184 914 54 -34 28 -26 65 159 -12 44 Finance companies 6,814 7,491 11,033 338 1,298 867 -14 -321 -89 -118 45 Revolving 8,628 1,415 4,697 499 537 507 612 143 210 108 46 Commercial banks 5,521 -97 3,345 285 436 219 266 162 243 246 47 Retailers 2,598 773 1,417 220 121 250 343 -84 82 -23 48 Gasoline companies 509 739 -65 -6 -20 38 3 65 -115 -115 49 Mobile home 1,603 483 1,161 51 70 67 63 141 10 -4 50 Commercial banks 1,102 -276 -74 -48 -41 -58 -57 -62 -67 -97 51 Finance companies 238 355 749 53 44 64 73 108 20 -7 52 Savings and loans 240 430 466 43 67 60 47 94 54 100 53 Credit unions 23 -25 20 3 0 1 0 1 3 0 54 Other 13,435 -927 4,441 392 -167 120 -166 184 367 -350 55 Commercial banks 4,681 -960 1,368 18 -103 -21 -376 -206 -130 -250 56 Finance companies 6,968 592 1,280 153 -216 -57 136 71 184 -268 57 Credit unions 1,118 -1,266 975 75 -5 9 -43 113 184 -20 58 Retailers -466 -444 -314 -39 -53 54 -46 -25 -22 -65 59 Savings and loans 1,087 1,056 1,217 162 154 127 149 174 127 228 60 Mutual savings banks 47 95 -85 23 56 8 14 57 24 25 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 NOTE: Total consumer noninstallment credit outstanding—credit scheduled to installments. be repaid in a lump sum, including single-payment loans, charge accounts, and 2. Includes auto dealers and excludes 30-day charge credit held by travel and service credit—amounted to, not seasonally adjusted $71.3 billion at the end of entertainment companies. 1979, $74.8 billion at the end of 1980, and $80.2 billion at the end of 1981. 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. 1982 HnlHpr anH fvnp nf rrpHit 11997799 11998800 11998811 Apr. May June July Aug. Sept. Oct. Extensions 1 Total 324,777 306,076 336,341 28,648 29,197 29,737 27,514 27,579 28,268 28,062 By major holder 2 Commercial banks 154,733 134,960 146,186 12,790 12,765 13,460 12,485 12,499 12,750 13,322 3 Finance companies 61,518 60,801 66,344 5,343 6,135 5,700 4,607 4,685 4,894 4.427 4 Credit unions 34,926 29,594 35,444 3,010 2,902 2,887 2,711 2,904 3,092 2,897 5 Retailers1 47,676 49,942 53,430 4,618 4,449 4,762 4,785 4,396 4,684 4,431 6 Savings and loans 5,901 6,621 8,142 823 841 785 803 863 786 961 7 Gasoline companies 18,005 22,253 24,902 1,915 1,880 1,969 1,944 2,021 1,876 1,835 8 Mutual savings banks 2,018 1,905 1,893 185 225 174 179 211 186 189 By major type of credit y Automobile 93,901 83,454 94,404 7,871 8,429 8,182 7,332 7,112 7,546 7,970 10 Commercial banks 53,554 41,109 42,792 3,499 3,317 3,404 3,687 3,454 3,702 4,296 11 Indirect paper 29,623 22,558 24,941 2,079 1,954 2,036 2,324 1,957 2,077 2,785 12 Direct loans 23,931 18,551 17,851 1,420 1,363 1,368 1,363 1,497 1,625 1,511 13 Credit unions 17,397 15,294 18,084 1,542 1,483 1,497 1,389 1,499 1,579 1,514 14 Finance companies 22,950 27,051 33,527 2,830 3,629 3,281 2,256 2,159 2,265 2,160 15 Revolving 120,174 128,068 140,135 12,416 12,528 13,361 12,551 12,497 12,464 12,340 16 Commercial banks 61,048 61,593 67,370 6,309 6,604 7,141 6,237 6,512 6,336 6,455 17 Retailers 41,121 44,222 47,863 4,192 4,044 4,251 4,370 3,964 4,252 4,050 18 Gasoline companies 18,005 22,253 24,902 1,915 1,880 1,969 1,944 2,021 1,876 1,835 19 Mobile home 6,471 5,093 6,028 544 478 459 441 581 452 476 20 Commercial banks 4,542 2,937 3,106 253 201 180 173 194 191 174 21 Finance companies 797 898 1,313 122 114 129 133 193 105 81 22 Savings and loans 948 1,146 1,432 151 151 137 123 181 140 207 23 Credit unions 184 113 176 18 12 13 12 13 16 14 24 Other 104,231 89,461 95,774 7,853 7,762 7,735 7,190 7,389 7,806 7,276 25 Commercial banks 35,589 29,321 32,918 2,729 2,643 2,735 2,388 2,339 2,521 2,397 26 Finance companies 37,771 32,852 31,504 2,391 2,392 2,290 2,218 2,333 2,524 2,186 27 Credit unions 17,345 14,187 17,182 1,450 1,407 1,377 1,310 1,392 1,497 1,369 28 Retailers 6,555 5,720 5,567 426 405 511 415 432 432 381 29 Savings and loans 4,953 5,476 6,710 672 690 648 680 682 646 754 30 Mutual savings banks 2,018 1,905 1,893 185 225 174 179 211 186 189 Liquidations 31 Total 286,396 304,628 316,447 27,509 27,798 28,388 26,944 27,513 27,176 28,386 By major holder 32 Commercial banks 136,572 142,123 143,902 12,694 12,778 13,560 12,551 12,751 12,269 13,371 33 Finance companies 47,498 52,363 53,282 4,799 5,009 4,826 4,412 4,827 4,779 4,820 34 Credit unions 32,741 32,069 33,531 2,878 2,941 2,849 2,780 2,725 2,746 2,929 35 Retailers1 45,544 49,613 52,327 4,437 4,381 4,458 4,488 4,505 4,624 4,519 36 Savings and loans 4,574 5,136 6,640 618 620 598 607 595 605 633 37 Gasoline companies 17,496 21,514 24,967 1,921 1,900 1,931 1,941 1,956 1,991 1,950 38 Mutual savings banks 1,971 1,810 1,978 162 169 166 165 154 162 164 By major type of credit 39 Automobile 79,186 82,977 84,809 7,638 7,470 7,527 7,271 7,514 7,041 8,048 40 Commercial banks 46,697 46,939 45,147 3,658 3,622 3,644 3,586 3,600 3,267 4,244 41 Indirect paper 25,135 25,662 25,077 2,077 2,006 2,088 2,099 2,086 1,745 2,713 42 Direct loans 21,562 21,277 20.070 1,581 1,616 1,556 1,487 1,514 1,522 1,531 43 Credit unions 16,353 16,478 17,169 1,488 1,517 1,469 1,415 1,434 1,420 1,526 44 Finance companies 16,136 19,560 22,494 2,492 2,331 2,414 2,270 2,480 2,354 2,278 45 Revolving 111,546 126,653 135,438 11,917 11,991 12,854 11,939 12,354 12,254 12,232 46 Commercial banks 55,527 61,690 64,025 6,024 6,168 6,922 5,971 6,350 6,093 6,209 47 Retailers 38,523 43,449 46,446 3,972 3,923 4,001 4,027 4,048 4,170 4,073 48 Gasoline companies 17,496 21,514 24,967 1,921 1,900 1,931 1,941 1,956 1,991 1,950 49 Mobile home 4,868 4,610 4,867 493 408 392 378 440 442 480 50 Commercial banks 3,440 3,213 3,180 301 242 238 230 256 258 271 51 Finance companies 559 543 564 69 70 65 60 85 85 88 52 Savings and loans 708 716 966 108 84 77 76 87 86 107 53 Credit unions 161 138 156 15 12 12 12 12 13 14 54 Other 90,796 90,388 91,333 7,461 7,929 7,615 7,356 7,205 7,439 7,626 55 Commercial banks 30,908 30,281 31,550 2,711 2,746 2,756 2,764 2,545 2,651 2,647 56 Finance companies 30,803 32,260 30,224 2,238 2,608 2,347 2,082 2,262 2,340 2,454 57 Credit unions 16,227 15,453 16,207 1,375 1,412 1,368 1,353 1,279 1,313 1,389 58 Retailers 7,021 6,164 5,881 465 458 457 461 457 454 446 59 Savings and loans 3,866 4,420 5,493 510 536 521 531 508 519 526 60 Mutual savings banks 1,971 1,810 1,978 162 169 166 165 154 162 164 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 • December 1982 1.58 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1979 1980 1981 1982 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997766 11997777 11997788 11997799 11998800 11998811 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total funds raised 273.5 334.3 401.7 402.0 397.1 406.9 406.6 363.0 431.2 438.2 375.7 380.6 2 Excluding equities 262.7 331.2 402.3 409.1 382.2 418.4 411.0 354.2 410.2 436.7 400.2 381.0 By sector and instrument 3 U.S. government 69.0 56.8 53.7 37.4 79.2 87.4 46.1 63.3 95.1 81.9 92.9 98.1 4 Treasury securities 69.1 57.6 55.1 38.8 79.8 87.8 46.6 63.9 95.7 82.4 93.2 98.6 5 Agency issues and mortgages -.1 -.9 -1.4 -1.4 -.6 -.5 -.5 -.6 -.6 -.5 -.4 -.5 6 All other nonfinancial sectors 204.5 277.5 348.0 364.7 317.9 319.6 360.5 299.8 336.1 356.3 282.8 282.6 7 Corporate equities 10.8 3.1 -.6 -7.1 15.0 -11.5 -4.3 8.9 21.0 1.6 -24.5 -.4 8 Debt instruments 193.6 274.4 348.7 371.7 303.0 331.0 364.9 290.9 315.0 354.8 307.3 282.9 9 Private domestic nonfinancial sectors 184.9 263.6 314.8 343.6 288.7 292.3 332.2 268.8 308.5 321.7 262.9 266.5 10 Corporate equities 10.5 2.7 -.1 -7.8 12.9 -11.5 -6.1 6.9 18.8 .9 -23.8 -.1 11 Debt instruments 174.3 260.9 314.9 351.5 275.8 303.7 338.3 261.9 289.7 320.8 286.7 266.7 12 Debt capital instruments 123.6 169.8 198.7 216.0 204.1 175.0 213.1 203.8 204.4 196.5 153.5 156.7 13 State and local obligations 15.7 21.9 28.4 29.8 35.9 32.9 32.8 30.7 41.0 35.1 30.6 47.9 14 Corporate bonds 22.8 21.0 20.1 22.5 33.2 23.9 22.6 37.3 29.0 24.7 23.0 18.5 15 Home mortgages 63.9 94.3 112.1 120.1 96.7 78.6 113.9 96.5 96.9 95.2 62.0 59.5 16 Multifamily residential 3.9 7.1 9.2 7.8 8.8 4.6 6.9 8.1 9.5 5.1 4.1 5.1 17 Commercial 11.6 18.4 21.7 23.9 20.2 25.3 25.4 20.3 20.1 27.4 23.2 20.3 18 Farm 5.7 7.1 7.2 11.8 9.3 9.8 11.5 10.9 7.8 9.0 10.5 5.4 19 Other debt instruments 50.7 91.1 116.2 135.5 71.7 128.8 125.2 58.1 85.4 124.3 133.2 110.0 20 Consumer credit 25.4 40.2 48.8 45.4 4.9 25.3 41.0 -3.3 13.0 29.4 21.2 16.0 21 Bank loans n.e.c 4.4 26.7 37.1 49.2 35.4 51.1 39.6 18.0 52.7 47.7 54.6 78.2 22 Open market paper 4.0 2.9 5.2 11.1 6.6 19.2 17.4 20.3 -7.1 10.7 27.6 3.4 23 Other 16.9 21.3 25.1 29.7 24.9 33.1 27.2 23.0 26.7 36.5 29.8 12.4 24 By borrowing sector 184.9 263.6 314,8 343.6 288.7 292.3 332.2 268.8 308.5 321.7 262.9 266.5 25 State and local governments 15.2 15.4 19,1 20.2 27.3 22.3 22.5 21.8 32.8 25.1 19.5 36.3 26 Households 89.5 137.3 169.3 176.5 117.5 120.4 165.8 115.2 119.8 141.0 99.9 89.7 27 Farm 10.2 12.3 14.6 21.4 14.4 16.4 22,7 15.7 13.0 19.9 12.8 8.4 28 Nonfarm noncorporate 15.4 28.3 32.4 34.4 33.8 40.5 37.0 27.5 40.2 41.8 39.3 30.4 29 Corporate 54.5 70.4 79.3 91.2 95.7 92.6 84.2 88.6 102.7 93.9 91.4 101.8 30 Foreign 19.6 13.9 33.2 21.0 29.3 27.3 28.3 31.0 27.5 34.6 19.9 16.0 31 Corporate equities .3 .4 -.5 .8 2.1 * 1.7 1.9 2.2 .7 -.7 -.2 32 Debt instruments 19.3 13.5 33.8 20.2 27.2 27.3 26.6 29.0 25.3 34.0 20.6 16.2 33 Bonds 8.6 5.1 4.2 3.9 .8 5.5 4.9 2.0 -.4 3.3 7.6 2.2 34 Bank loans n.e.c 5.6 3.1 19.1 2.3 11.5 3.7 2.6 5.9 17.2 5.0 2.3 -.6 35 Open market paper 1.9 2.4 6.6 11.2 10.1 13.9 16.3 15.7 4.5 20.6 7.1 11.3 36 U.S. government loans 3.3 3.0 3.9 2.9 4.7 4.3 2.8 5.4 4.0 5.0 3.6 3.3 Financial sectors 37 Total funds raised 22.5 52.2 77.5 83.9 68.5 89.3 78.7 65.1 71.9 95.5 83.0 107.9 By instrument 38 U.S. government related 14.3 21.9 36.7 47.3 43.6 45.1 50.8 47.3 39.8 42.5 47.8 57.9 39 Sponsored credit agency securities 2.5 7.0 23.1 24.3 24.4 30.1 25.8 27.1 21.7 26.9 33.3 21.4 40 Mortgage pool securities 12.2 16.1 13.6 23.1 19.2 15.0 25.0 20.2 18.1 15.6 14.5 36.5 41 Loans from U.S. government -.4 -1.2 — — — — — — — — — — 42 Private financial sectors 8.2 30.3 40.8 36.6 24.9 44.1 27.9 17.7 32.0 53.0 35.3 50.0 43 Corporate equities -.2 3.4 2.5 3.2 7.2 8.6 2.6 7.5 6.9 9.7 7.5 16.0 44 Debt instruments 8.4 26.9 38.3 33.4 17.7 35.6 25.3 10.3 25.2 43.4 27.8 34.0 45 Corporate bonds 9.8 10.1 7.5 7.8 7.1 -.8 7.7 9.9 4.4 -2.1 .4 -3.6 46 Mortgages 2.1 3.1 .9 -1.2 -.9 -2.9 -2.9 -5.3 3.5 -2.3 -3.5 1.9 47 Bank loans n.e.c -3.7 -.3 2.8 -.4 -.4 2.2 .5 .1 -.9 3.7 .7 5.9 48 Open market paper and RPs 2.2 9.6 14.6 18.0 4.8 20.9 10.8 -.1 9.7 24.8 17.0 16.1 49 Loans from Federal Home Loan Banks -2.0 4.3 12.5 9.2 7.1 16.2 9.2 5.8 8.5 19.3 13.2 13.8 By sector 50 Sponsored credit agencies 2.1 5.8 23.1 24.3 24.4 30.1 25.8 27.1 21.7 26.9 33.3 21.4 51 Mortgage pools 12.2 16.1 13.6 23.1 19.2 15.0 25.0 20.2 18.1 15.6 14.5 36.5 52 Private financial sectors 8.2 30.3 40.8 36.6 24.9 44.1 27.9 17.7 32.0 53.0 35.3 50.0 53 Commercial banks 2.3 1.1 1.3 1.6 .5 .4 1.8 .8 .3 .2 .5 .6 54 Bank affiliates 5.4 2.0 7.2 6.5 6.9 8.3 4.9 5.8 8.0 6.9 9.7 9.7 55 Savings and loan associations .1 9.9 14.3 11.4 6.6 13.1 10.2 .1 13.2 19.2 6.9 16.8 56 Other insurance companies .9 1.4 .8 .9 1.1 1.1 .9 1.0 1.1 1.1 1.1 1.0 57 Finance companies 4.3 16.9 18.1 16.6 6.3 14.1 11.0 6.0 6.5 17.3 11.0 7.7 58 REITs -2.2 -1.9 -.9 -.3 -1.5 -.5 -.1 -1.4 -1.7 -.6 -.3 -.2 59 Open-end investment companies -2.4 .9 -.1 .1 5.0 7.7 -.8 5.5 4.5 8.9 6.5 14.5 All sectors 60 Total funds raised, by instrument 296.0 386.5 479.2 485.9 465.6 496.2 485.3 428.1 503.1 533.7 458.7 488.6 61 Investment company shares -2.4 .9 -.1 .1 5.0 7.7 -.8 5.5 4.5 8.9 6.5 14.5 62 Other corporate equities 13.1 5.6 1.9 -3.9 17.1 -10.6 -.9 10.8 23.4 2.3 -23.5 1.2 63 Debt instruments 285.4 379.9 477.4 489.7 443.5 499.1 487.1 411.8 475.2 522.5 475.7 472.9 64 U.S. government securities 83.8 79.9 90.5 84.8 122.9 132.6 97.0 110.7 135.1 124.5 140.7 156.1 65 State and local obligations 15.7 21.9 28.4 29.8 35.9 32.9 32.8 30.7 41.0 35.1 30.6 47.9 66 Corporate and foreign bonds 41.2 36.1 31.8 34.2 41.1 28.5 35.2 49.3 33.0 26.0 30.9 17.0 67 Mortgages 87.1 129.9 151.0 162.4 134.0 115.2 154.7 130.4 137.7 134.3 96.2 92.1 68 Consumer credit 25.4 40.2 48.8 45.4 4.9 25.3 41.0 -3.3 13.0 29.4 21.2 16.0 69 Bank loans n.e.c 6.2 29.5 59.0 51.0 46.5 57.0 42.7 24.0 69.0 56.4 57.6 83.6 70 Open market paper and RPs 8.1 15.0 26.4 40.3 21.6 54.0 44.5 35.9 7.2 56.2 51.8 30.9 71 Other loans 17.8 27.4 41.5 41.8 36.6 53.7 39.2 34.1 39.2 60.7 46.6 29.4 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 1979 1980 1981 1982 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997766 11997777 11997788 11997799 11998800 11998811 H2 HI H2 HI H2 HIr 1 Total funds advanced in credit markets to nonfinancial sectors 262.7 331.2 402.3 409.1 382.2 418.4 411.0 354.2 410.2 436.7 400.2 381.0 By public agencies and foreign 2 Total net advances 49.8 79.2 101.9 74.6 95.8 95.9 101.0 104.6 87.0 98.7 93.2 91.9 3 U.S. government securities 23.1 34.9 36.1 -6.3 15.7 17.2 16.6 20.5 10.9 15.9 18.5 -.8 4 Residential mortgages 12.3 20.0 25.7 35.8 31.7 23.4 36.7 34.9 28.5 21.4 25.5 47.4 5 FHLB advances to savings and loans -2.0 4.3 12.5 9.2 7.1 16.2 9.2 5.8 8.5 19.3 13.2 13,8 6 Other loans and securities 16.4 20.1 27.6 35.9 41.3 39.1 38.6 43.4 39.1 42.1 36.0 31.5 Total advanced, by sector 7 U.S. government 7.9 10.0 17.1 19.0 23.7 24.2 18.7 24.6 22.8 27.1 21.2 15.4 8 Sponsored credit agencies 16.8 22.4 39.9 52.4 44.4 46.0 56.9 45.2 43.7 44.3 47.7 59.0 9 Monetary authorities 9.8 7,1 7.0 7.7 4.5 9.2 14.0 14.9 -5.9 -3.7 22.1 -6.5 10 Foreign 15.2 39.6 38.0 -4.6 23.2 16.6 11.3 19.9 26.5 30.9 2.2 23.9 11 Agency borrowing not included in line 1 14.3 21.9 36.7 47.3 43.6 45.1 50.8 47.3 39.8 42.5 47.8 57.9 Private domestic funds advanced 12 Total net advances 227.1 273.9 337.1 381.8 329.9 367.6 360.8 296.9 362.9 380.5 354.7 347.0 13 U.S. government securities 60.7 45.1 54.3 91.1 107.2 115.4 80.5 90.2 124.2 108.5 122.3 156.9 14 State and local obligations 15.7 21.9 28.4 29.8 35.9 32.9 32.8 30.7 41.0 35.1 30.6 47.9 15 Corporate and foreign bonds 30.5 22.2 22.4 23.7 25.8 20.6 24.1 31.6 20.1 18.6 22.7 4.5 16 Residential mortgages 55.4 81.4 95.5 92.0 73.7 59.7 84.0 69.6 77.8 78.8 40.5 17.0 17 Other mortgages and loans 62.9 107.6 149.1 154.3 94.4 155.3 148.7 80.6 108.3 158.7 151.8 134.5 18 LESS: Federal Home Loan Bank advances -2.0 4.3 12.5 9.2 7.1 16.2 9.2 5.8 8.5 19.3 13.2 13.8 Private financial intermediation 19 Credit market funds advanced by private financial institutions 190.9 261.7 302.9 292.2 257.9 301.3 260.7 245.4 270.4 326.3 276.3 281.3 20 Commercial banking 59.6 87.6 128.7 121.1 99.7 103.5 108.1 64.7 134.8 107.8 99.2 122.3 21 Savings institutions 70.2 81.6 73.6 55.5 54.1 24.6 48.9 34.9 73.2 43.9 5.3 30.2 22 Insurance and pension funds 49.7 69.0 75.0 66.4 74.4 75.8 60.1 84.3 64.4 75.8 75.8 89.0 23 Other finance 11.4 23.5 25.6 49.2 29.8 97.4 43.6 61.5 -1.9 98.8 95.9 39.7 24 Sources of funds 190.9 261.7 302.9 292.2 257.9 301.3 260.7 245.4 270.4 326.3 276.3 281.3 25 Private domestic deposits 124.4 138.9 141.1 142.5 167.8 211.2 145.9 162.5 173.1 212.0 210.3 177.5 26 Credit market borrowing 8.4 26.9 38.3 33.4 17.7 35.6 25.3 10.3 25.2 43.4 27.8 34.0 27 Other sources 58.0 96.0 123.5 116.4 72.4 54.6 89.5 72.7 72.1 70.9 38.2 69.8 28 Foreign funds -4.7 1.2 6.3 25.6 -23.0 -8.8 3.4 -20.0 -26.0 -.7 -16.8 -31.1 29 Treasury balances -.1 4.3 6.8 .4 -2.6 -1.1 -.7 -6.1 1.0 6.0 -8.2 -4.1 30 Insurance and pension reserves 34.3 51.4 62.2 49.1 65.4 70.8 43.8 70.3 60.5 66.0 75.6 77.4 31 Other, net 28.5 39.1 48.3 41.3 32.6 -6.4 43.0 28.6 36.6 -.4 -12.3 27.6 Private domestic nonfinancial investors 32 Direct lending in credit markets 44.7 39.0 72.5 122.9 89.7 101.9 125.4 61.7 117.7 97.5 106.2 99.8 33 U.S. government securities 15.9 24.6 36.3 61.4 38.3 50.4 54.9 23.3 53.3 43.0 57.7 54.8 34 State and local obligations 3.3 -.8 3.6 9.4 12.6 20.3 11.5 6.2 18.9 22.8 17.8 35.7 35 Corporate and foreign bonds 11.8 -5.1 -2.9 10.2 9.3 -7.9 16.9 7.8 10.8 -9.2 -6.6 -22.9 36 Commercial paper 1.9 9.6 15.6 12.1 -3.4 3.5 14.6 -8.1 1.4 -1.4 8.4 7.9 37 Other 11.8 10.7 19.9 29.8 32.9 35.6 27.6 32.5 33.3 42.3 29.0 24.2 38 Deposits and currency 133.4 148.5 152.3 151.9 179.2 221.0 149.9 172.4 186.1 218.6 223.4 177.5 39 Currency 7.3 8.3 9.3 7.9 10.3 9.5 6.3 9.3 11.3 5.8 13.2 2.0 40 Checkable deposits 10.4 17.2 16.3 19.2 4.2 18.3 22.5 -2.5 11.0 26.5 10.1 6.9 41 Small time and savings accounts 123.7 93.5 63.7 61.0 79.5 46.6 50.7 73.4 85.7 26.9 66.3 78.8 42 Money market fund shares * .2 6.9 34.4 29.2 107.5 38.6 61.9 -3.4 104.1 110.8 39.4 43 Large time deposits -12.0 25.8 46.6 21.2 48.3 36.3 39.4 24.4 72.1 46.8 25.7 51.4 44 Security RPs 2.3 2.2 7.5 6.6 6.5 2.5 -5.3 5.3 7.8 7.7 -2.6 1.0 4b Foreign deposits 1.7 1.3 2.0 1.5 1.1 .3 -2.3 .6 1.7 .8 -.2 -2.0 46 Total of credit market instruments, deposits and currency 178.1 187.5 224.9 274.8 269.0 322.8 275.3 234.1 303.8 316.1 329.6 277.2 47 Public support rate (in percent) 19.0 23.9 25.3 18.2 25.1 22.9 24.6 29.5 21.2 22.6 23.3 24.1 48 Private financial intermediation (in percent). . . 84.0 95.6 89.9 76.5 78.2 82.0 72.3 82.7 74.5 85.8 77.9 81.0 49 Total foreign funds 10.5 40.8 44.3 21.0 .2 7.8 14.8 * .5 30.3 -14.6 -7.2 MEMO: Corporate equities not included above 50 Total net issues 10.6 6.5 1.9 -3.8 22.1 -2.9 -1.7 16.3 27.9 11.2 -17.0 15.7 51 Mutual fund shares -2.4 .9 -.1 .1 5.0 7.7 -.8 5.5 4.5 8.9 6.5 14.5 52 Other equities 13.1 5.6 1.9 -3.9 17.1 -10.6 -.9 10.8 23.4 2.3 -23.5 1.2 53 Acquisitions by financial institutions 12.5 7.4 4.6 10.4 14.6 22.9 14.2 8.6 20.7 25.3 20.5 20.7 54 Other net purchases -1.9 -.8 -2.7 -14.2 7.5 -25.8 -15.9 7.7 7.2 -14.1 -37.5 -5.1 NOTES BY LINE NUMBER. 31. Mainly retained earnings and net miscellaneous liabilities. 1. Line 2 of table 1.58. 32. Line 12 less line 19 plus line 26. 2. Sum of lines 3-6 or 7-10. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes 6. Includes farm and commercial mortgages. mortgages. 11. Credit market funds raised by federally sponsored credit agencies, and net 39. Mainly an offset to line 9. issues of federally related mortgage pool securities. 46. Lines 32 plus 38, or line 12 less line 27 plus 39 and 45. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum 47. Line 2/line 1. of lines 27, 32, and 38 less lines 39 and 45. 48. Line 19/line 12. 17. Includes farm and commercial mortgages. 49. Sum of lines 10 and 28. 25. Line 38 less lines 39 and 45. 50. 52. Includes issues by financial institutions. 26. Excludes equity issues and investment company shares. Includes line 18. 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 30. Excludes net investment of these reserves in corporate equities. Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • December 1982 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1982 MMeeaassuurree 11997799 11998800 11998811 Mar. Apr. May June July Aug/ Sept.r Oct.? Nov. 1 Industrial production1 152.5 147.0 151.0 141.7 140.2 139.2 138.7 138.8 138.4 137.3 136.2 135.6 Market groupings 2 Products, total 150.0 146.7 150.6 143.7 142.9 142.3 142.1 142.6 142.0 140.6 139.4 138.9 3 Final, total 147.2 145.3 149.5 143.3 142.6 142.2 142.1 142.5 141.2 139.8 138.6 138.1 4 Consumer goods 150.8 145.4 147.9 141.5 142.1 143.6 144.8 145.8 144.1 143.3 142.3 141.6 5 Equipment 142.2 145.2 151.5 145.9 143.4 140.4 138.4 138.0 137.3 135.0 133.6 133.4 6 Intermediate 160.5 151.9 154.4 145.2 143.7 142.6 141.9 142.8 144.7 143.4 142.1 141.8 7 Materials 156.4 147.6 151.6 138.5 136.2 134.3 133.5 133.0 132.8 132.2 131.2 130.4 Industry groupings 8 Manufacturing 153.6 146.7 150.4 140.1 138.7 137.9 137.7 138.1 138.0 137.1 135.6 134.9 Capacity utilization (percent)1'2 9 Manufacturing 85.7 79.1 78.5 71.6 70.8 70.2 70.0 70.0 69.8 69.2 68.3 67.8 10 Industrial materials industries 87.4 80.0 79.9 71.8 70.5 69.4 68.8 68.5 68.2 67.8 67.2 66.7 11 Construction contracts (1977 = 100)3 121.0 106.0 107.0 105.0 88.0 94.0 111.0 98.0 112.0 117.0 n.a. n.a. 12 Nonagricultural employment, total4 136.5 137.4 138.5 137.2 136.9 137.0 136.5 136.1 135.7 135.7 135.1 134.8 13 Goods-producing, total 113.5 110.3 110.2 104.9 104.2 104.1 102.9 102.3 101.5 101.0 99.7 99.0 14 Manufacturing, total 108.2 104.3 103.7 99.3 98.6 98.3 97.3 96.7 96.0 95.5 94.2 93.5 15 Manufacturing, production-worker 105.3 99.4 98.5 92.1 91.2 90.9 89.8 89.2 88.4 87.8 86.2 85.4 16 Service-producing 149.1 152.6 155.0 155.0 154.8 155.1 154.9 154.6 154.5 154.7 154.5 154.4 17 Personal income, total 309.7 342.9 383.5 399.8 402.5 405.7 407.3 411.2 412.0 413.0 416.0 n.a. 18 Wages and salary disbursements 289.8 317.6 349.9 361.3 362.2 365.4 366.0 367.6 367.8 367.6 368.1 n.a. 19 Manufacturing 249.0 264.3 288.1 286.4 286.3 288.1 288.4 287.7 286.4 284.3 281.1 n.a. 20 Disposable personal income5 301.2 332.9 370.3 387.7 391.7 392.9 393.4 400.6 400.9 402.0 404.0 405.5 21 Retail sales" 281.6 303.8 330.6 333.5 337.4 347.1 336.4 341.8 338.2 341.3 343.3 351.2 Prices7 22 Consumer 217.4 246.8 272.4 283.1 284.3 287.1 290.6 292.2 292.8 293.3 294.1 n.a. 23 Producer finished goods 217.7 247.0 269.8 277.3 277.3 277.8 279.9 281.7 282.4 281.4 284.1 n.a. 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 1981 1982 1981 1982 1981 1982 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 145.0 139.8 138.1 137.7 193.9 195.2 196.4 197.7 74.8 71.6 70.3 69.7 2 Primary processing 143.5 137.1 132.3 132.5 197.5 198.6 199.5 200.4 72.7 69.1 66.3 66.1 3 Advanced processing 145.8 141.6 141.2 140.5 192.0 193.5 194.9 196.2 75.9 73.2 72.5 71.6 4 Materials 144.0 138.7 134.7 132.7 191.5 192.6 193.7 194.6 75.2 72.0 69.6 68.2 5 Durable goods 140.2 130.9 127.1 124.8 195.3 196.4 197.3 198.3 71.8 66.7 64.4 63.0 6 Metal materials 99.5 90.9 77.0 73.0 142.1 142.3 142.4 142.3 70.1 63.9 54.1 51.3 7 Nondurable goods 164.5 161.0 156.8 j 155.0 213.1 214.6 216.1 217.4 77.2 75.0 72.6 71.3 8 Textile, paper, and chemical 169.4 164.5 160.5/ 158.2 223.9 225.6 227.3 228.8 75.7 72.9 70.6 69.2 9 Textile 106.8 101.3 101.8 102.2 141.6 142.1 142.4 142.8 75.4 71.3 71.5 71.5 10 Paper 147.0 146.1 142.0 145.6 162.8 163.8 164.6 165.4 90.3 89.2 86.3 88.0 11 Chemical 206.2 200.0 194.0 188.3 284.4 287.3 289.6 291.9 72.5 69.6 67.0 64.5 12 Energy materials 127.9 129.8 125.5 124.0 155.8 156.5 157.0 157.6 82.1 82.9 79.9 78.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A47 2.11 Continued Previous cycle1 Latest cycle2 1981 1982 SSeerriieess High Low High Low Nov. Mar. Apr. May June July Aug.r Sept.' Oct. Nov. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 74.8 71.6 70.8 70.2 70.0 70.0 69.8 69.2 68.3 67.8 14 Primary processing 93.8 68.2 90.1 71.0 72.7 68.6 67.2 66.1 65.7 65.7 66.1 66.5 65.9 65.4 15 Advanced processing.... 85.5 69.4 86.2 77.2 75.8 73.2 72.6 72.5 72.3 72.3 71.7 70.7 69.6 69.1 16 Materials 92.6 69.4 88.8 73.8 75.5 71.8 70.5 69.4 68.8 68.5 68.2 67.8 67.2 66.7 17 Durable goods 91.5 63.6 88.4 68.2 72.2 66.4 65.0 64.2 64.0 63.7 63.1 62.1 60.6 59.8 18 Metal materials 98.3 68.6 96.0 59.6 70.8 61.1 56.2 53.9 52.2 50.7 51.2 51.9 50.4 n.a. 19 Nondurable goods 94.5 67.2 91.6 77.5 77.3 75.3 74.4 72.5 70.9 70.2 71.0 72.7 72.8 72.5 20 Textile, paper, and chemical 95.1 65.3 92.2 75.3 75.9 73.7 72.5 70.6 68.8 68.0 68.9 70.5 70.9 70.7 21 Textile 92.6 57.9 90.6 80.9 75.5 73.5 73.4 71.5 69.6 69.8 72.3 72.6 74.3 n.a. 22 Paper 99.4 72.4 97.7 89.3 92.3 89.4 87.4 86.1 85.3 86.0 88.6 89.3 89.7 n.a. 23 Chemical 95.5 64.2 91.3 70.7 72.4 70.2 69.0 66.9 65.0 63.7 63.6 65.9 66.0 n.a. 24 Energy materials 94.6 84.8 88.3 82.7 82.2 81.8 80.2 79.9 79.8 80.0 79.0 77.0 77.9 77.3 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. 1982 CCaatteeggoorryy 11997799 11998800 11998811 May June July Aug. Sept.r Oct.r Nov.'' HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 166,951 169,847 172,272 174,201 174,363 174,544 174,707 174,888 175,069 175,238 2 Labor force (including Armed Forces)1 ... 107,050 109,042 110,812 112,841 112,364 112,702 112,840 113,178 112,832 113,199 3 Civilian labor force 104,962 106,940 108,670 110,666 110,191 110,522 111100,,664444 111100,,998800 110,644 111,019 Employment 4 Nonagricultural industries2 95,477 95,938 97,030 96,629 96,406 96,272 96,404 96,352 95,667 95,563 5 Agriculture 3,347 3,364 3,368 3,488 3,357 3,460 33,,443355 33,,336688 3,426 3,470 Unemployment 6 Number 6,137 7,637 8,273 10,549 10,427 10,790 10,805 11,260 11,551 11,987 7 Rate (percent of civilian labor force) . 5.8 7.1 7.6 9.5 9.5 9.8 9.8 10.1 10.4 10.8 8 Not in labor force 59,901 60,805 61,460 61,360 61,999 61,842 61,867 61,710 62,237 62,039 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 89,823 90,406 91,105 90,166 89,839 89,535 89,312 89,267 88,878 88,715 10 Manufacturing 21,040 20,285 20,173 19,115 18,930 18,813 18,672 18,572 18,323 18,185 11 Mining 958 1,020 1,104 1,152 1,124 1,100 1,086 1,075 1,065 1,051 12 Contract construction 4,463 4,399 4,307 3,988 3,940 3,927 3,899 3,883 3,854 3,850 13 Transportation and public utilities 5,136 5,143 5,152 5,101 5,078 5,044 5,025 5,031 5,009 5,009 14 Trade 20,192 20,386 20,736 20,652 20,595 20,615 20,550 20,492 20,437 20,388 15 Finance 4,975 5,168 5,330 5,342 5,352 5,359 5,360 5,367 5,358 5,364 16 Service 17,112 17.901 18,598 18,963 18,988 19,042 19,048 19,084 19,087 19,127 17 Government 15,947 16,249 16,056 15,853 15,832 15,635 15,672 15,763 15,745 15,741 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 • December 1982 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1981 1981 1982 Grouping p p r o o r - - avertion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug/ Sept. Oct .P Nov/ Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 151.0 146.3 143.4 140.7 142.9 141.7 140.2 139.2 138.7 138.8 138.4 137.3 136.2 135.6 2 Products 60.71 150.6 147.5 146.2 142.9 144.6 143.7 142.9 142.3 142.1 142.6 142.0 140.6 139.4 138.9 3 Final products 47.82 149.5 147.2 146.3 142.8 144.1 143.3 142.6 142.2 142.1 142.5 141.2 139.8 138.6 138.1 4 Consumer goods 27.68 147.9 144.0 142.0 139.6 141.8 141.5 142.1 143.6 144.8 145.8 144.1 143.3 142.3 141.6 5 Equipment 20.14 151.8 151.5 152.1 147.2 147.3 145.9 143.4 140.4 138.4 138.0 137.3 135.0 133.6 133.4 6 Intermediate products 12.89 154.4 148.7 145.9 143.4 146.3 145.2 143.7 142.6 141.9 142.8 144.7 143.4 142.1 141.8 7 Materials 39.29 151.6 144.6 139.0 137.2 140.4 138.5 136.2 134.3 133.5 133.0 132.8 132.2 131.2 130.4 Consumer goods 8 Durable consumer goods 7.89 140.5 129.7 123.2 120.1 125.9 128.1 130.7 132.6 134.6 137.3 132.9 131.3 127.0 126.0 9 Automotive products 2.83 137.9 121.7 119.2 109.2 117.5 125.0 129.9 138.9 143.0 149.7 135.5 135.5 123.0 120.9 10 Autos and utility vehicles 2.03 111.2 88.9 87.5 71.6 82.0 93.6 100.5 111.8 117.1 127.7 107.1 105.8 89.6 87.2 11 Autos 1.90 103.4 81.1 78.1 61.3 70.5 79.8 87.2 96.1 101.9 114.6 93.3 94.3 79.5 77.7 12 Auto parts and allied goods... 80 205.6 205.0 199.7 204.4 207.8 204.5 204.6 207.6 208.6 205.4 207.6 210.7 207.8 206.3 13 Home goods 5.06 142.0 134.1 125.4 126.3 130.6 129.9 131.1 129.1 129.9 130.4 131.4 128.9 129.2 128.8 14 Appliances, A/C, and TV .... 1.40 119.6 107.7 85.7 100.6 103.5 97.0 102.7 100.5 106.4 102.7 104.5 99.4 106.0 106.6 15 Appliances and TV 1.33 121.2 108.7 86.6 101.6 104.1 97.4 103.1 101.5 108.8 106.1 108.6 104.1 110.3 16 Carpeting and furniture 1.07 158.0 146.9 144.4 137.9 147.8 151.3 151.8 145.9 149.0 151.4 152.5 153.3 151.8 17 Miscellaneous home goods.... 2.59 147.4 143.2 139.1 135.4 138.1 138.9 138.0 137.7 134.9 136.7 137.2 134.9 132.5 131.5 18 Nondurable consumer goods 19.79 150.9 149.7 149.5 147.4 148.1 146.8 146.6 147.9 148.8 149.1 148.6 148.1 148.3 147.8 19 Clothing 4.29 119.8 116.1 113.8 20 Consumer staples 15.50 159.5 159.0 159.4 158.9 159.2 158.1 158.3 159.0 159.9 159.7 159.4 158.7 159.6' 158.4 21 Consumer foods and tobacco . 8.33 150.3 150.4 150.9 150.0 151.1 149.6 148.1 149.9 150.9 149.9 149.6 148.5 22 Nonfood staples 7.17 170.0 169.1 169.3 169.1 168.7 168.0 170,0 169.5 170.4 171.2 170.8 170.5 170.3 169.6 23 Consumer chemical products 2.63 223.1 220.3 220.1 220.1 218.2 217.8 218.3 216.6 219.8 222.3 222.4 220.7 220.1 24 Consumer paper products .. 1.92 127.9 125.7 127.2 127.0 130.2 127.8 128.7 126.7 126.7 128.1 129.4 128.2 126.4 25 Consumer energy products . 2.62 147.7 149.4 149.1 148.9 147.2 147.6 151.9 153.6 152.8 151.4 149.3 151.2 152.5 26 Residential utilities 1.45 166.3 167.4 167.5 172.3 171.6 170.4 174.5 173.7 171.1 167.7 169.7 169.5 Equipment 27 Business 12.63 181.1 179.0 179.0 172.2 171.6 169.0 164.9 159.9 156.7 154.9 153.9 150.2 146.9 146.1 28 Industrial 6.77 166.4 165.1 164.0 158.1 155.9 151.2 145.9 138.9 134.0 131.3 128.4 123.8 119.0 118.5 29 Building and mining 1.44 286.2 293.8 294.6 289.0 274.9 256.9 242.2 224.4 209.0 200.4 190.8 182.1 164.0 168.0 30 Manufacturing 3.85 127.9 123.6 122.0 116.9 116.8 116.3 114.0 109.7 107.5 106.0 104.4 101.6 100.6 99.0 31 Power 1.47 149.7 147.1 145.5 137.4 141.1 139.0 134.8 131.5 129.9 129.6 130.1 124.7 122.8 121.1 32 Commercial transit, farm 5.86 198.0 195.0 196.3 188.5 189.9 189.5 186.9 184.1 183.0 182.2 183.3 180.6 179.3 177.8 33 Commercial 3.26 258.7 260.6 262.9 256.1 256.4 257.8 253.1 247.7 247.5 248.8 253.5 251.9 251.2 250.0 34 Transit 1.93 125.4 116.6 117.5 109.0 110.4 110.5 110.9 110.9 108.3 106.3 102.0 96.5 93.1 91.0 35 Farm .67 112.0 101.7 98.9 88.4 95.1 84.9 83.5 85.8 84.1 76.9 75.8 76.1 77.6 36 Defense and space 7.51 102.7 105.3 107.0 105.2 106.5 107.0 107.2 107.7 107.6 109.5 109.5 109.5 111.2 112.1 Intermediate products 37 Construction supplies 6.42 141.9 130.1 127.0 124.2 127.5 125.6 123.6 122.2 123.1 124.1 127.1 125.4 124.2 124.1 38 Business supplies 6.47 166.7 167.1 164.6 162.4 165.1 164.6 163.7 162.8 160.6 161.4 162.1 161.4 159.9 39 Commercial energy products 1.14 176.4 177.0 177.3 181.7 184.1 184.5 183.5 180.3 178.3 179.8 178.1 179.2 179.4 Materials 40 Durable goods materials 20.35 149.1 141.0 134.0 129.7 132.4 130.7 128.1 126.6 126.6 126.0 125.1 123.2 120.4 119.2 41 Durable consumer parts 4.58 114.5 102.8 92.9 86.9 92.2 94.1 94.7 98.9 103.1 103.8 101.0 97.9 93.0 91.5 42 Equipment parts 5.44 191.2 188.7 183.3 177.2 180.1 177.5 173.9 170.0 168.3 166.1 164.1 158.3 156.0 154.5 43 Durable materials n.e.c 10.34 142.3 132.9 126.1 123.6 125.1 122.2 118.8 116.1 115.1 114.8 115.4 116.0 113.9 112.9 44 Basic metal materials 5.57 112.0 101.6 94.8 94.5 94.3 88.6 82.3 79.4 77.4 75.7 76.1 77.7 75.6 45 Nondurable goods materials 10.47 174.6 164.7 158.3 156.8 164.2 162.0 160.3 156.6 153.5 152.3 154.5 158.3 158.8 158.8 46 Textile, paper, and chemical materials 7.62 181.4 169.9 161.9 159.1 167.9 166.6 164.4 160.4 156.7 155.3 157.7 161.7 162.9 162.9 47 Textile materials 1.85 113.0 106.9 102.0 97.3 102.2 104.5 104.5 101.8 99.1 99.6 103.2 103.7 106.3 48 Paper materials 1.62 150.6 150.2 141.2 143.2 148.5 146.7 143.5 141.8 140.7 142.1 146.6 148.0 148.9 49 Chemical materials 4.15 224.0 205.8 196.8 193.0 204.9 202.2 199.3 193.9 188.7 185.4 186.5 193.0 193.6 50 Containers, nondurable 1.70 169.3 163.5 161.9 162.4 166.7 161.3 159.8 157.2 158.5 158.1 162.8 168.3 165.7 51 Nondurable materials n.e.c 1.14 137.4 131.9 128.6 132.4 136.0 132.4 134.2 130.6 124.8 123.4 120.1 120.9 121.4 52 Energy materials 129.0 128.1 127.4 130.9 130.3 128.2 125.8 125.4 125.4 126.0 124.5 121.6 123.1 122.3 53 Primary energy 4.65 115.0 115.6 115.9 119.2 119.5 119.2 117.3 116.9 116.6 117.2 113.8 111.3 114.5 54 Converted fuel materials 3.82 145.9 143.4 141.4 145.1 143.4 139.1 136.1 135.7 136.0 136.7 137.4 134.0 133.7 Supplementary groups 55 Home goods and clothing 9.35 131.8 125.9 120.1 117.0 120.1 118.9 118.9 119.5 120.2 121.4 121.3 120.2 120.3 120.0 56 Energy, total 12.23 137.4 137.2 136.7 139.5 138.9 137.6 136.7 136.5 136.2 136.4 134.8 133.3 134.7 133.4 57 Products 3.76 156.4 157.8 157.7 158.8 158.4 158.8 161.5 161.7 160.5 160.0 158.0 159.7 160.7 58 Materials 129.0 128.1 127.4 130.9 130.3 128.2 125.8 125.4 125.4 126.0 124.5 121.6 123.1 122.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1981 1982 Grouping c S o I d C e p p r o o r - - 1 a 9 v 8 g 1 . tion Jan. Feb. Mar. Apr. May June July Aug.' Sept. Oct.' Nov Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities . 12.05 155.0 155.4 154.7 157.4 155.6 153.1 151.6 148.8 145.2 142.6 141.3 139.8 141.0 140.3 2 Mining 6.36 142.2 143.3 142.6 144.5 142.4 138.1 134.1 128.9 123.5 120.1 116.9 115.0 116.6 116.2 3 Utilities 5.69 169.1 168.9 168.2 171.8 170.4 170.0 171.0 170.9 169.4 167.7 168.5 167.6 168.2 167.2 4 Electric 3.88 190.9 190.9 190.2 195.2 192.5 191.7 193.1 193.4 191.6 189.2 189.9 188.3 189.6 188.3 5 Manufacturing 87.95 150.4 145.0 142.0 138.5 140.9 140.1 138.7 137.9 137.7 138.1 138.0 137.1 135.6 134.9 6 Nondurable 35.97 164.8 160.3 157.4 155.1 157.8 157.3 156.1 155.0 155.3 155.7 156.9 156.9 156.3 156.0 7 Durable 51.98 140.5 134.4 131.3 127.1 129.3 128.2 126.7 126.1 125.5 125.9 124.9 123.4 121.3 120.3 Mining 8 Metal 10 .51 123.1 115.4 110.9 121.3 120.8 109.9 108.8 90.0 71.8 58.1 53.4 55.3 69.1 9 Coal 11.12 .69 141.3 160.8 145.5 147.9 156.0 155.6 146.2 149.2 144.4 140.3 135.8 127.9 143.2 134.3 10 Oil and gas extraction ... 13 4.40 146.8 148.4 150.5 151.5 146.6 141.4 137.7 132.7 129.1 127.0 123.3 121.4 119.3 119.7 11 Stone and earth minerals. 14 .75 129.4 116.7 115.7 115.8 120.5 121.6 119.6 114.6 106.6 103.8 105.7 106.3 108.6 Nondurable manufactures 12 Foods 8.75 152.1 153.0 152.8 151.1 151.7 150.8 149.7 150.5 151.0 151.0 150.7 149.8 13 Tobacco products .67 122.2 119.6 112.6 112.7 126.7 126.7 116.1 118.6 123.6 121.4 120.6 114.3 14 Textile mill products 2.68 135.7 126.1 122.8 120.0 125.8 126.0 126.3 123.5 123.7 124.3 125.9 126.4 15 Apparel products 3.31 120.4 113.8 114.1 16 Paper and products 3.21 155.0 152.6 146.6 148.3 151.5 150.6 149.8 146.5 146.8 147.0 152.5 154.2 154.4 155.8 17 Printing and publishing 4.72 144.2 143.4 145.3 145.6 146.4 145.9 144.2 143.8 142.6 143.9 145.3 144.3 142.4 142.8 18 Chemicals and products 7.74 215.6 204.6 199.8 196.7 201.3 200.3 198.6 193.6 193.2 194.1 195.6 196.0 195.5 19 Petroleum products 1.79 129.7 128.0 128.3 123.3 119.5 121.3 120.8 122.2 124.3 124.7 121.4 124.4 125.3 20 Rubber and plastic products . 2.24 274.0 264.1 247.3 244.7 251.8 253.4 255.1 257.0 258.9 256.8 261.1 262.0 255.7 21 Leather and products 69.3 70.8 65.6 63.1 64.0 61.2 60.6 61.1 62.3 62.9 60.8 60.9 59.9 Durable manufactures 22 Ordnance, private and government 19.91 3.64 81.1 84.3 85.5 84.1 83.8 83.8 85.2 86.3 86.5 87.1 86.5 86.9 88.7 23 Lumber and products 24 1.64 119.1 104.7 104.8 99.2 104.9 103.5 106.2 110.6 112.2 116.9 120.3 120.2 118.4 24 Furniture and fixtures 25 1.37 157.2 153.7 149.4 144.3 148.4 150.2 151.8 151.1 152.5 154.5 156.7 155.7 154.7 25 Clay, glass, stone products 32 2.74 147.9 135.9 131.5 128.5 135.0 131.5 127.0 125.0 126.1 126.9 128.8 130.0 128.9 26 Primary metals 33 6.57 107.9 96.6 89.6 89.7 88.5 83.0 76.4 75.2 72.8 72.9 72.9 73.3 72.4 70.1 27 Iron and steel 331.2 4.21 99.8 87.2 79.2 79.6 78.5 73.0 65.1 62.4 58.0 58.1 57.4 56.5 55.2 28 Fabricated metal products. 34 5.93 136.4 130.2 126.1 120.7 121.4 121.1 119.1 115.8 115.0 115.5 114.3 112.2 109.9 109.3 29 Nonelectrical machinery. . . 35 9.15 171.2 167.9 167.4 160.9 160.0 157.3 153.7 150.0 147.4 147.1 147.2 144.1 141.1 138.6 30 Electrical machinery 36 8.05 178.4 175.7 170.7 168.2 172.9 172.6 172.2 170.9 170.8 170.3 169.7 167.0 166.1 165.6 31 Transportation equipment 37 9.27 116.1 106.1 103.7 96.6 102.0 104.4 105.9 110.0 111.6 112.7 107.0 105.3 100.6 99.7 32 Motor vehicles and parts 371 4.50 122.3 105.5 100.4 90.4 98.6 105.6 110.7 119.8 124.0 127.2 116.7 113.5 103.0 101.2 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 110.2 106.8 106.8 102.4 105.3 103.2 101.3 100.8 99.9 99.0 97.8 97.6 98.4 98.3 34 Instruments 38 2.11 170.3 167.1 166.8 162.2 164.5 163.0 162.8 163.8 164.8 165.2 165.5 162.2 158.4 158.0 35 Miscellaneous manufactures .... 39 1.51 154.7 151.7 147.9 144.9 144.5 145.3 144.6 141.7 136.8 134.7 133.9 132.9 131.2 130.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 612.3 597.6 592.8 577.4 588.1 586.8 582.1 586.1 584.1 585.8 578.5 573.1 569.3 566.8 37 Final 390.9 474.1 465.2 462.3 448.8 457.1 456.6 453.5 458.3 456.7 457.2 449.2 444.4 441.8 439.2 38 Consumer goods 277.5 318.0 310.5 307.2 298.9 306.3 306.9 306.7 312.3 313.1 314.9 309.1 307.6 306.0 303.5 39 Equipment 113.4 156.1 154.7 155.1 149.9 150.8 149.7 146.8 146.0 143.5 142.3 140.1 136.7 135.7 135.7 40 Intermediate 116.6 138.2 132.4 130.5 128.7 131.1 130.2 128.6 127.8 127.4 128.7 129.3 128.7 127.6 127.5 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 • December 1982 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1982 IItteemm 11997799 11998800 11998811 Mar. Apr. May June July Aug.' Sept/ Oct. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,552 1,191 986 851 879 944 929 1,062 888 1,003 1,181 2 1-family 981 710 564 460 450 488 516 500 497 561 634 3 2-or-more-family 570 480 421 391 429 456 413 562 391 442 547 4 Started 1,745 1,292 1,084 931 882 1,066 908 1,193 1,033 1,111 1,122 5 1-family 1,194 852 705 621 566 631 621 628 645 670 679 6 2-or-more-family 551 440 379 310 316 435 287 565 388 441 443 7 Under construction, end of period1 1,140 896 682 682 673 664 660 673' 669 686 n.a. 8 1-family 639 515 382 399 393 382 384 377r 373 379 n.a. 9 2-or-more-family 501 382 301 283 280 282 276 296r 296 307 n.a. 10 Completed 1,855 1,502 1,266 926 962 1,138 939 1,007 1,006 925 n.a. 11 1-family 1,286 957 818 585 596 684 582 693 638 577 n.a. 12 2-or-more-family 569 545 447 341 366 454 357 314 368 348 n.a. 13 Mobile homes shipped 277 222 241 252 255 246 257 246 234 222 n.a. Merchant builder activity in 1-family units 14 Number sold 709 545 436 380 335 395 369 352r 382 489 487 15 Number for sale, end of period1 402 342 278 269 264 259 254 250 248 248 243 PPrriiccee ((tthhoouussaannddss ooff ddoollllaarrss))22 MMeeddiiaann 1166 UUnniittss ssoolldd 62.8 64.7 68.8 67.2 70.2 69.3 69.3 70.9 70.7 67.7 69.4 AAvveerraaggee 1177 UUnniittss ssoolldd 71.9 76.4 83.1 83.7 85.0 86.5 84.9 86.5r 86.9 79.6 81.3 EXISTING UNITS (1-family) 18 Number sold 3,701 2,881 2,350 1,990 1,910 1,900 1,980 1,890 1,820 1,840 1,920 Price of units sold (thousands of dollars)2 19 Median 55.5 62.1 66.1 67.0 67.1 67.8 69.4 69.2 68.9 67.3 67.5 20 Average 64.0 72.7 78.0 79.1 79.4 80.6 82.3 82.0 82.0 80.0 79.8 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,412 230,748 238,198 224,583 226,095 228,745 231,589 228,775 230,413 232,353 234,905 22 Private 181,622 175,701 185,221 173,605 175,142 179,941 182,651 180,336 179,638 182,014 182,902 23 Residential 99,028 87,261 86,566 70,040 72,300 75,453 75,251 76,234 76,935 77,336 77,721 24 Nonresidential, total 82,594 88,440 98,655 103,565 102,842 104,488 107,400 104,102 102,703 104,678 105,181 Buildings 25 Industrial 14,953 13,839 17,031 16,641 15,882 17,118 18,424 16,404 16,691 17,728 18,283 26 Commercial 24,919 29,940 34,243 38,362 38,437 36,818 38,048 37,512 36,091 37,129 36,049 27 Other 7,427 8,654 9,543 9,880 9,897 10,427 10,579 10,130 10,499 10,506 10,826 28 Public utilities and other 35,295 36,007 37,838 38,682 38,626 40,125 40,349 40,056 39,422 39,315 40,023 29 Public 48,790 55,047 52,977 50,978 50,953 48,804 48,938 48,439 50,775 50,339 52,003 30 Military 1,648 1,880 1,966 2,317 1,706 2,140 1,901 1,891 1,997 2,060 2,149 31 Highway 11,997 13,808 13,304 13,307 12,113 11,655 13,073 14,119 13,327 13,464 14,151 32 Conservation and development 4,586 5,089 5,225 5,056 5,493 5,223 5,051 5,060 5,036 4,719 5,242 33 Other 30,559 34,270 32,482 30,298 31,641 29,786 28,913 27,369 30,415 30,096 30,461 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 because of changes by the Bureau of the Census in its units, which are published by the National Association of Realtors. All back and estimating techniques. For a description of these changes see Construction Reports current figures are available from originating agency. Permit authorizations are (C-30-76-5), issued by the Bureau in July 1976. those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices 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 IIInnndddeeexxx llleeevvveeelll OOOcccttt... IIIttteeemmm 1981 1982 1982 111999888222 1 O 1 O 99 cc 88 tt 11 .. 1 O 1 O 99 cc 88 tt 22 .. (((111999666777 Dec. Mar. June Sept. June July Aug. Sept. Oct. === 111000000)))''' CONSUMER PRICES2 1 A11 items 10.2 5.1 5.4 1.0 9.3 4.2 1.0 .6 .3 .2 .5 294.1 2 Commodities 7.1 3.7 3.6 .8 7.8 3.4 1.3 .6 .0 .2 .6 267.5 3 Food 5.8 3.4 1.7 3.9 7.3 .6 .6 -.1 .3 .5 .2 287.0 4 Commodities less food 7.7 3.9 4.3 -2.6 7.9 4.7 1.5 .8 .2 .2 .8 255.4 5 Durable 6.8 5.6 1.2 3.5 14.1 1.5 1.3 .3 .3 -.2 .5 246.0 6 Nondurable 8.8 1.9 3.8 -4.9 1.9 6.1 2.0 1.1 .2 .2 1.1 265.7 7 Services 14.6 6.8 7.8 3.5 11.3 5.4 .8 .6 .6 .1 .2 340.3 8 Rent 8.4 7.2 9.0 5.9 5.6 8.0 .4 1.0 .5 .4 .9 228.9 9 Services less rent 15.5 6.8 7.6 3.3 11.9 5.0 .9 .5 .6 .1 .2 361.6 Other groupings 10 All items less food 11.2 5.4 6.2 .9 9.7 4.9 1.2 .7 .4 .1 .5 294.0 11 All items less food and energy 10.9 5.9 5.6 3.0 10.6 4.6 .9 .6 .5 .0 .4 281.5 12 Homeownership 13.2 4.4 .3 -2.4 19.8 .4 1.4 .4 .4 -.7 -.1 382.8 PRODUCER PRICES 13 Finished goods 7.4 3.6 5.5 .9 4.1 4.2 1.0 .6 .6 -.1 .5 284.1 14 Consumer 7.0 3.3 4.5 .6 3.7' 4.2' 1.1' .5 .6 -.1 .5 284.2 15 Foods 2.4 1.5 -3.9 6.1 11.5 -7.4 .5 -1.5 .1 -.5 -.2 257.8 16 Excluding foods 8.9 4.2 7.8 -1.4 .7' 9.5' 1.3' 1.4 .8 .1 .8 293.3 17 Capital equipment 8.9 4.5 9.7 2.4 5.6' 3.8R .7' .6' .7 -.4 .2 283.8 18 Intermediate materials3 9.2 .3 2.7 -1.8 -1.5' 2.4' .3 .5 -.1 .1 -.1 315.5 Crude materials 19 Nonfood 15.4 -.8 -6.0 -18.0 8.3R 8.1' .6 1.0 -.1 1.0 .6 475.4 20 Food -12.0 -3.8 -25.5 23.3 24.3 -26.4 -.8' -2.7 -1.0 -3.8 -1.9 236.3 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 • December 1982 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1981 1982 AAccccoouunntt 11997799 11998800 11998811 Q3 Q4 Q1 Q2 Q3' GROSS NATIONAL PRODUCT 1 Total 2,417.8 2,633.1 2,937.7 2,980.9 3,003.2 2,995.5 3,045.2 3,080.7 By source 2 Personal consumption expenditures 1,507.2 1,667.2 1,843.2 1,868.8 1,884.5 1,919.4 1,947.8 1,987.5 3 Durable goods 213.4 214.3 234.6 241.2 229.6 237.9 240.7 240.1 4 Nondurable goods 600.0 670.4 734.5 741.3 746.5 749.1 755.0 767.9 5 Services 693.7 782.5 874.1 886.3 908.3 932.4 952.1 979.5 6 Gross private domestic investment 423.0 402.4 471.5 486.0 468.9 414.8 431.5 441.3 7 Fixed investment 408.8 412.4 451.1 454.2 455.7 450.4 447.7 438.4 8 Nonresidential 290.2 309.2 346.1 353.0 360.2 357.0 352.2 341.2 9 Structures 98.3 110.5 129.7 132.7 139.6 141.4 143.6 139.1 10 Producers' durable equipment 191.9 198.6 216.4 220.2 220.6 215.6 208.6 202.1 11 Residential structures 118.6 103.2 105.0 101.2 95.5 93.4 95.5 97.2 12 Nonfarm 114.0 98.3 99.7 95.6 89.4 87.9 89.6 91.3 13 Change in business inventories 14.3 -10.0 20.5 31.8 13.2 -35.6 -16.2 2.9 14 Nonfarm 8.6 -5.7 15.0 24.6 6.0 -36.0 -15.0 2.9 15 Net exports of goods and services 13.2 25.2 26.1 25.9 23.5 31.3 34.9 2.7 16 Exports 281.4 339.2 367.3 367.2 367.9 359.9 365.8 347.0 17 Imports 268.1 314.0 341.3 341.3 344.4 328.6 330.9 344.2 18 Government purchases of goods and services 474.4 538.4 596.9 600.2 626.3 630.1 630.9 649.2 19 Federal 168.3 197.2 229.0 230.0 250.5 249.7 244.3 256.4 20 State and local 306.0 341.2 368.0 370.1 375.7 380.4 386.6 392.7 By major type of product 21 Final sales, total 2,403.5 2,643.1 2,917.3 2,949.1 2,989.9 3,031.1 3,061.4 3,077.8 22 Goods 1,065.6 1,141.9 1,289.2 1,317.0 1,298.5 1,269.4 1,283.1 1,285.8 23 Durable 464.8 477.3 528.1 547.3 504.9 482.4 505.9 512.4 24 Nondurable 600.8 664.6 761.1 769.7 793.6 787.0 777.2 773.4 25 Services 1,089.7 1,225.6 1,364.3 1,382.1 1,421.5 1,444.4 1,476.7 1,511.1 26 Structures 262.5 265.7 284.2 281.9 283.3 281.7 285.3 283.8 27 Change in business inventories 14.3 -10.0 20.5 31.8 13.2 -35.6 -16.2 2.9 28 Durable goods 10.5 -5.2 8.7 19.8 -5.6 -30.9 -6.6 9.5 29 Nondurable goods 3.8 -4.8 11.8 12.0 18.9 -4.8 -9.6 -6.6 30 MEMO: Total GNP in 1972 dollars 1,479.4 1,474.0 1,502.6 1,510.4 1,490.1 1,470.7 1,478.4 1,478.4 NATIONAL INCOME 31 Total 1,966.7 2,117.1 2,352.5 2,387.3 2,404.5 2,396.9 2,425.2 2,457.6 32 Compensation of employees 1,458.1 1,598.6 1,767.6 1,789.1 1,813.4 1,830.8 1,850.7 1.868.2 33 Wages and salaries 1,237.4 1,356.1 1,494.0 1,512.6 1,531.1 1,541.5 1.556.6 1,569.9 34 Government and government enterprises 236.2 260.2 283.1 284.0 292.3 296.3 300.0 303.5 35 Other 1,001.4 1,095.9 1,210.9 1,228.6 1,238.8 1,245.2 1,256.6 1,266.3 36 Supplement to wages and salaries 220.7 242.5 273.6 276.5 282.3 289.3 294.1 298.3 37 Employer contributions for social insurance 105.8 115.3 133.2 134.3 136.5 140.2 141.7 142.8 38 Other labor income 114.9 127.3 140.4 142.2 145.8 149.1 152.5 155.5 39 Proprietors' income1 132.1 116.3 124.7 127.5 124.1 116.4 117.3 118.3 40 Business and professional1 100.2 96.9 100.7 100.4 99.5 98.6 99.9 101.7 41 Farm1 31.9 19.4 24.0 27.1 24.6 17.8 17.4 16.6 42 Rental income of persons2 27.9 32.9 33.9 33.6 33.6 33.9 34.2 34.6 43 Corporate profits1 194.8 181.6 190.6 193.1 183.9 157.1 155.4 165.9 44 Profits before tax3 252.7 242.5 232.1 233.3 216.5 171.6 171.7 179.9 45 Inventory valuation adjustment -43.1 -43.0 -24.6 -23.0 -17.1 -4.4 -9.4 -9.9 46 Capital consumption adjustment -14.8 -17.8 -16.8 -17.1 -15.5 -10.1 -6.9 -4.0 47 Net interest 153.8 187.7 235.7 244.0 249.5 258.7 267.5 270.6 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 adjustment. 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. 1981 1982 AAccccoouunntt 11997799 11998800 11998811 Q3 Q4 Q1 Q2 Q3r PERSONAL INCOME AND SAVING 1 Total personal income 1,943.8 2,160.2 2,404.1 2,458.2 2,494.6 2,510.5 2,552.7 2,596.0 2 Wage and salary disbursements 1,237.6 1,356.1 1,493.9 1,512.3 1,531.2 1,541.6 1,556.6 1,569.9 3 Commodity-producing industries 438.4 468.0 510.8 519.3 517.7 514.3 513.6 510.1 4 Manufacturing 333.9 354.4 386.4 392.9 388.7 385.1 385.6 383.7 5 Distributive industries 303.4 330.5 361.4 366.5 368,3 371.4 375.4 378.5 6 Service industries 259.7 297.5 338.6 342.8 352.8 359.5 367.6 377.7 7 Government and government enterprises 236.2 260.2 283.1 283.8 292.4 296.5 300.0 303.5 8 Other labor income 114.9 127.3 140.4 142.2 145.8 149.1 152.5 155.5 9 Proprietors' income1 132.1 116.3 124.7 127.5 124.1 116.4 117.3 118.3 10 Business and professional1 100.2 96.9 100.7 100.4 99.5 98.6 99.9 101.7 11 Farm1 31.9 19.4 24.0 27.1 24.6 17.8 17.4 16.6 12 Rental income of persons2 27.9 32.9 33.9 33.6 33.6 33.9 34.2 34.6 13 Dividends 50.8 55.9 62.5 64.1 65.2 65.8 66.1 67.2 14 Personal interest income 209.6 256.3 308.5 339.6 351.0 359.7 372.0 382.2 15 Transfer payments 250.3 297.2 336.3 344.8 350.7 354.6 365.2 380.7 16 Old-age survivors, disability, and health insurance benefits 131.8 154.2 182.0 190.6 192.8 194.7 197.5 209.2 17 LESS: Personal contributions for social insurance 81.1 88.7 104.9 106.1 107.0 110.6 111.4 112.4 18 EQUALS: Personal income 1,943.8 2,160.2 2,404.1 2,458.2 2,494.6 2,510.5 2,552.7 2,596.0 19 LESS: Personal tax and nontax payments 301.0 336.3 386.7 398.1 393.2 393.4 401.2 394.3 20 EQUALS: Disposable personal income 1,650.2 1,824.1 2,029.2 2,060.0 2,101.4 2,117.1 2,151.5 2,201.7 21 LESS: Personal outlays 1,553.5 1,717.9 1,898.9 1,925.7 1,942.7 1,977,9 2,007.2 2,047.3 22 EQUALS: Personal saving 96.7 106.2 130.2 134.4 158.6 139.1 144.3 154.4 MEMO: Per capita (1972 dollars) 23 Gross national product 6,572 6,474 6,536 6,563 6,458 6,360 6,380 6,364 24 Personal consumption expenditures 4,120 4,087 4,122 4,134 4,088 4,104 4,121 4,123 25 Disposable personal income 4,512 4,472 4,538 4,557 4,559 4,527 4,552 4,566 26 Saving rate (percent) 5.9 5.8 6.4 6.5 7.5 6.6 6.7 7.0 GROSS SAVING 27 Gross saving 422.8 406.3 477.5 490.0 476.3 428.8 441.5 428.2 28 Gross private saving 407.3 438.3 504.7 513.4 547.7 520.3 529.0 548.8 29 Personal saving 96.7 106.2 130.2 134.4 158.6 139.1 144.3 154.4 30 Undistributed corporate profits1 54.5 38.9 44.4 43.9 44.3 32.5 30.7 34.6 31 Corporate inventory valuation adjustment -43.1 -43.0 -24.6 -23.0 -17.1 -4.4 -9.4 -9.9 Capital consumption allowances 32 Corporate 157.5 181.2 206.2 209.7 216.0 218.9 223.4 227.8 33 Noncorporate 98.6 112.0 123.9 125.5 128.7 129.8 130.5 132.1 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts 14.3 -33.2 -28.2 -24.5 -72.5 x -90.7 -87.5 -120.6 36 Federal -16.1 -61.4 -60.0 -58.0 -101.7 -118.4 -119.6 -153.1 37 State and local 30.4 28.2 31.7 33.5 29.1 27.7 32.1 32.5 38 Capital grants received by the United States, net 1.1 1.2 1.1 1.1 1.1 .0 .0 .0 39 Gross investment 421.2 410.1 475.6 489.1 469.0 421.3 442.3 421.4 40 Gross private domestic 423.0 402.4 471.5 486.0 468.9 414.8 431.5 441.3 41 Net foreign -1.8 7.8 4.1 3.1 0.1 6.5 10.8 -19.9 42 Statistical discrepancy -1.5 3.9 -1.9 -0.8 -7.2 -7.5 .8 -6.8 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 • December 1982 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1981 1982 IItteemm ccrreeddiittss oorr ddeebbiittss 11997799 11998800 11998811 Q2 03 04 Q1 Q2 p 1 Balance on current account -466 1,520 4,471 11,,339999 775511 --992277 1,088 22,,006622 11,,997755 --11,,883344 11,,229933 742 22,,668800 3 Merchandise trade balance2 -27,346 -25.338 -27,889 --66,,554477 --77,,884455 --99,,118855 -5,873 --55,,778844 4 Merchandise exports 184,473 224,237 236,254 6600,,228844 5577,,669944 5577,,559933 55,780 5555,,009944 5 Merchandise imports -211,819 -249,575 -264,143 --6666,,883311 --6655,,553399 --6666,,777788 -61,653 --6600,,887788 6 Military transactions, net -2,035 -2,472 -1,541 --558877 6611 --552288 167 337711 7 Investment income, net3 31,215 29,910 33,037 88,,220011 88,,118833 88,,552299 6,861 77,,667722 8 Other service transactions, net 3,262 6,203 7,472 11,,884422 22,,116600 22,,112277 1,981 11,,553355 9 Remittances, pensions, and other transfers -2,011 -2,101 -2,104 -524 -558 -562 -575 -662 10 U.S. government grants (excluding military) -3.549 -4,681 -4,504 -986 -1,250 -1,308 -1,473 -1,070 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -3,743 -5,126 -5,137 -1,518 -1,257 -987 -904 -1,559 12 Change in U.S. official reserve assets (increase, -) -1,133 -8,155 -5,175 -905 -4 262 -1,089 -1,132 13 Gold -65 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -1,136 -16 -1,823 -23 -225 -134 -400 -241 15 Reserve position in International Monetary Fund -189 -1,667 -2,491 -780 -647 -358 -547 -814 16 Foreign currencies 257 -6,472 -861 -102 868 754 -142 -77 17 Change in U.S. private assets abroad (increase, -)3 -59.469 -72,746 -98,982 -19,143 -15,996 -46,952 -29,208 -31,924 18 Bank-reported claims -26,213 -46,838 -84,531 -14,998 -15,254 -42,645 -32,708 -33,866 19 Nonbank-reported claims -3,307 -3,146 -331 2,470 855 -508 4,112 n.a. 20 U.S. purchase of foreign securities, net -4,726 -3,524 -5,429 -1,511 -618 -2,843 -531 -409 21 U.S. direct investments abroad, net3 -25,222 -19,238 -8,691 -5,104 -979 -956 -81 2,351 22 Change in foreign official assets in the United States (increase, +) -13,697 15,442 4,785 -2,860 -5,835 8,119 -3,122 1,935 23 U.S. Treasury securities -22,435 9,708 4,983 -2,063 -4,635 4,439 -1,344 -2,087 24 Other U.S. government obligations 463 2,187 1,289 536 545 -246 -296 258 25 Other U.S. government liabilities4 -73 561 -69 48 -337 275 -182 361 26 Other U.S. liabilities reported by U.S. banks 7,213 -159 -4,083 -2,028 -2,382 3,436 -1,516 3,367 27 Other foreign official assets5 1,135 3,145 2,665 647 974 215 216 36 28 Change in foreign private assets in the United States (increase, + )* 52,157 39,042 73,136 16,324 22,715 30,988 28,203 29,248 29 U.S. bank-reported liabilities 32,607 10,743 41,262 7,663 16,916 20,476 25,423 22,006 30 U.S. nonbank-reported liabilities 1,362 6,530 532 -162 1,006 -457 -982 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 4,960 2,645 2,932 750 -446 1,238 1,277 2,074 32 Foreign purchases of other U.S. securities, net 1,351 5,457 7,109 3,533 761 396 1,319 2,495 33 Foreign direct investments in the United States, net5 11,877 13,666 21,301 4,540 4,478 9,335 1,166 2,673 34 Allocation of SDRs 1.139 1,152 1,093 0 00 00 0 0 35 Discrepancy 25,212 28,870 25,809 6,703 --337744 99,,449977 5,032 1,370 503 --22,,114444 22,,447744 -899 577 37 Statistical discrepancy in recorded data before seasonal adjustment 25.212 28,870 25,809 6,200 11,,777700 77,,002233 5,931 793 MEMO; Changes in official assets 38 U.S. official reserve assets (increase, ") -1,133 -8,155 -5,175 -905 -4 262 -1,089 -1,132 39 Foreign official assets in the United States (increase, +) -13,624 14,881 4,854 -2,908 -5,498 7,844 -2,940 1,574 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 5,543 12,769 13,314 2,786 2,935 2,230 4,988 3,072 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 465 631 602 214 132 64 93 126 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 and Official Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1982 IItteemm 11997799 11998800 11998811 Apr. May June July Aug. Sept. Oct. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 181,860 220,626 233,677 17,843 18,218 18,822 18,026 17,498 17,387 16,698 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 209,458 244,871 261,305 17,387 20,558 21,310 19,559 23,494 20,644 21,096 3 Trade balance -27,598 -24,245 -27,628 456 -2,340 -2,488 -1,532 -5,9% -3,257 -4,398 NOTE. The data through 1981 in this table are reported by the Bureau of Census not covered in Census statistics, and (2) the exclusion of military sales (which are data on a free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. combined with other military transactions and reported separately in the "service Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census account" in table 3.10, line 6). On the import side, additions are made for gold, basis trade data; this adjustment has been made for all data shown in the table. ship purchases, imports of electricity from Canada and other transactions; military Beginning with 1982 data, the value of imports are on a customs valuation basis. payments are excluded and shown separately as indicated above. The Census basis data differ from merchandise trade data shown in table 3.10, U.S. International Transactions Summary, for reasons of coverage and timing. On SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" the export side, the largest adjustments are: (1) the addition of exports to Canada (U.S. Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1982 TTyyppee 11997799 11998800 11998811 May June July Aug. Sept.r Oct. Nov. 1 Total1 18,956 26,756 30,075 30,915 30,671 31,227 31,233 31,864 31,711 34,006 2 Gold stock, including Exchange Stabilization Fund1 11,172 11,160 11,151 11,149 11,149 11,149 11,148 11,148 11,148 11,148 3 Special drawing rights2,3 2,724 2,610 4,095 4,521 4,461 4,591 4,601 4,809 4,801 4,929 4 Reserve position in International Monetary Fund2 1,253 2,852 5,055 6,099 6,062 6,386 6,433 6,406 6,367 7,185 5 Foreign currencies4 5 3,807 10,134 9,774 9,146 8,999 9,101 9,051 8,630 9,395 10,744 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, 3.13. 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. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1982 AAsssseettss 11997799 11998800 11998811 May June July Aug. Sept. Oct. Nov. 1 Deposits 429 411 505 308 585 982 347 396 326 386 Assets held in custody 2 U.S. Treasury securities1 95,075 102,417 104,680 102,112 103,292 106,696 104,136 106,117 107,636 107,467 3 Earmarked gold2 15,169 14,965 14,804 14,778 14,777 14,762 14,761 14,726 14,706 15,279 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

A56 International Statistics • December 1982 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1982 AAsssseett aaccccoouunntt 11997799 11998800 11998811 Mar' Apr. May June' July' Aug. Sept.' All foreign countries 1 Total, all currencies 364,409 401,135 462,790 463,849 460,437 461,800 458,841 465,658 471,469 470,750 2 Claims on United States 32,302 28,460 63,540 75,760 77,932 79,621 83,573 82,250 88,885 90,189 3 Parent bank 25,929 20,202 43,064 53,135 55,713 57,092 58,598 55,594 60,232 60,801 4 Other 6,373 8,258 20,476 22,625 22,219 22,529 24,975 26,656 28,653 29,388 5 Claims on foreigners 317,330 354,960 379,102 368,843 362,877 362,457 356,389 364,160 362,253 360,196 6 Other branches of parent bank 79,662 77,019 87,840 86,797 86,120' 88,406' 87,189 89,481 91,639 93,347 7 Banks 123,420 146,448 150,892 147,119 142,582 ' 139,589' 137,588 143,046 138,465 135,281 8 Public borrowers 26,097 28,033 28,197 26,346 25,603 25,002 25,239 24,654 24,492 24,321 9 Nonbank foreigners 88,151 103,460 112,173 108,581 108,572 109,460 106,373 106,979 107,657 107,247 10 Other assets 14,777 17,715 20,148 19,246 19,628 19,722 18,879 19,248 20,331 20,365 11 Total payable in U.S. dollars 267,713 291,798 350,678 355,721 351,561 351,966 353,816 360,004 366,176 369,675 12 Claims on United States 31,171 27,191 61,939 74,241 76,428 78,015 82,006 80,607 87,267 88,535 13 Parent bank 25,632 19,896 42,518 52,546 55,257 56,607 58,101 54,915 59,541 60,136 14 Other 5,539 7,295 19,421 21,695 21,171 21,408 23,905 25,692 27,726 28,399 15 Claims on foreigners 229,120 255,391 277,085 269,713 263,234 262,008 260,530 267,586 266,503 268,236 16 Other branches of parent bank 61.525 58,541 69,403 70,321 69,343' 70,733' 70,395 72,515 74,293 77,525 17 Banks 96,261 117,342 122,253 117,530 113,868'' 110,972' 110,265 115,364 111,756 110,516 18 Public borrowers 21,629 23,491 22,877 20,645 20,183 19,592 19,957 19,306 19,043 18,984 19 Nonbank foreigners 49,705 56,017 62,552 61,217 59,840 60,711 59,913 60,401 61,411 61,211 20 Other assets 7,422 9,216 11,654 11,767 11,899 11,943 11,280 11,811 12,406 12,904 United Kingdom 21 Total, all currencies 130,873 144,717 157,229 161,471 159,481 161,036 158,466 164,106 164,523 167,189 22 Claims on United States 11,117 7,509 11,823 16,343 17,676 20,155 20,744 23,962 27,031 27,534 23 Parent bank 9,338 5,275 7,885 12,446 13,750 15,854 16,768 19,680 22,730 22,970 24 Other 1,779 2,234 3,938 3,897 3,926 4,301 3,976 4,282 4,301 4,564 25 Claims on foreigners 115,123 131,142 138,888 139,292 135,634 134,845 131,860 133,964 130,814 132,746 26 Other branches of parent bank 34,291 34,760 41,367 41,186 39,811 39,621 37,696 37,250 36,937 40,385 27 Banks 51,343 58,741 56,315 56,940 55,545 54,674 54,727 56,428 53,582 52,203 28 Public borrowers 4,919 6,688 7,490 7,541 6,822 6,663 6,595 6,456 6,286 6,086 29 Nonbank foreigners 24,570 30,953 33,716 33,625 33,456 33,887 32,842 33,830 34,009 34,072 30 Other assets 4,633 6,066 6,518 5,836 6,171 6,063 5,862 6,180 6,678 6,909 31 Total payable in U.S. dollars 94,287 99,699 115,188 120,432 117,914 119,586 120,002 125,247 126,344 131,129 32 Claims on United States 10,746 7,116 11,246 15,842 17,182 19,608 20,256 23,421 26,514 26,919 33 Parent bank 9,297 5,229 7,721 12,293 13,623 15,663 16,599 19,451 22,496 22,758 34 Other 1,449 1,887 3,525 3,549 3,559 3,945 3,657 3,970 4,018 4,161 35 Claims on foreigners 81,294 89,723 99,850 100,500 96,595 95,926 95,857 97,699 95,293 99,008 36 Other branches of parent bank 28,928 28,268 35,439 36,055 34,240 33,922 32,567 32,007 31,414 35,703 37 Banks 36,760 42,073 40,703 40,732 40,070 39,593 40,479 42,515 40,321 39,786 38 Public borrowers 3,319 4,911 5,595 5,360 4,717 4,507 4,655 4,513 4,336 4,214 39 Nonbank foreigners 12,287 14,471 18,113 18,353 17,568 17,904 18,156 18,664 19,222 19,305 40 Other assets 2,247 2,860 4,092 4,090 4,137 4,052 3,889 4,127 4,537 5,202 Bahamas and Caymans 41 Total, all currencies 108,977 123,837 149,051 143,981 143,153 140,045 141,878 141,124 144,230 140,528 42 Claims on United States 19,124 17,751 46,343 54,034 55,551 54,331 56,704 52,341 56,034 55,397 43 Parent bank 15,196 12,631 31,440 36,468 38,163 37,039 36,623 30,874 32,737 32,089 44 Other 3,928 5,120 14,903 17,566 17,388 17,292 20,081 21,467 23,297 23,308 45 Claims on foreigners 86,718 101,926 98,205 85,630 83,311 81,377 81,170 84,734 83,918 81,034 46 Other branches of parent bank 9,689 13,342 12,951 11,979 12,574' 14,186' 15,407 17,538 17,806 17,772 47 Banks 43,189 54,861 55,299 48,026 45,963' 43,354' 42,747 44,547 43,701 41,313 48 Public borrowers 12,905 12,577 10,010 7,993 7,860 7,361 7,327 7,031 7,036 6,999 49 Nonbank foreigners 20,935 21,146 19,945 17,632 16,914 16,476 15,689 15,618 15,375 14,950 50 Other assets 3,135 4,160 4,503 4,317 4,291 4,337 4,004 4,049 4,278 4,097 51 Total payable in U.S. dollars 102,368 117,654 143,686 138,934 138,052 135,134 136,910 135,645 138,807 135,991 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.14 Continued 1982 T flh l tv a n int 11998800 11998811 Mar.' Apr. May June' July' Aug. Sept.'' All foreign countries 52 Total, all currencies 364,409 401,135 462,790 463,849 460,437 461,800 458,841 465,658 471,469 470,750 53 To United States 66,689 91,079 137,712 150,975 153,220 156,296 160,914 164,549 167,689 170,428 54 Parent bank 24,533 39,286 56,143 58,898 57,031 56,414 59,202 60,949 64,390 66,909 55 Other banks in United States 13,968 14,473 19,343 24,427 26,022 27,685 29,534 31,560 32,453 33,885 56 Nonbanks 28,188 37,275 62,226 67,650 70,167 72,197 72,178 72,040 70,846 69,634 57 To foreigners 283,510 295,411 305,630 293,416 287,024 284,411 278,451 281,571 283,693 280,107 58 Other branches of parent bank 77,640 75,773 86,406 85,576 84,149' 85,630' 84,517 86,777 92,190 93,721 59 Banks 122,922 132,116 124,896 117,121 111,716' 107,376' 105,147 105,962 103,417 99,919 60 Official institutions 35,668 32,473 25,997 23,039 22,340 22,703 19,914 20,239 20,004 20,277 61 Nonbank foreigners 47,280 55,049 68,331 67,680 68,819 68,702 68,873 68,593 68,082 66,190 62 Other liabilities 14,210 14,690 19,448 19,458 20,193 21,093 19,476 19,538 20,087 20,215 63 Total payable in U.S. dollars 273,857 303,281 364,390 369,689 366,867 368,544 369,380 376,153 381,929 385,394 64 To United States 64,530 88,157 134,645 147,928 150,116 153,166 157,717 161,294 164,450 167,585 65 Parent bank 23,403 37,528 54,291 56,833 54,970 54,452 57,174 58,968 62,374 65,048 66 Other banks in United States 13,771 14,203 19,029 24,186 25,685 27,270 29,198 31,228 32,175 33,630 67 Nonbanks 27,356 36,426 61,325 66,909 69,461 71,444 71,345 71,098 69,901 68,907 68 To foreigners 201,514 206,883 217,602 210,314 205,039 202,585 200,262 203,746 205,692 206,435 69 Other branches of parent bank 60,551 58,172 69,309 69,492 68,046' 68,539' 68,517 70,430 75,343 78,467 70 Banks 80,691 87,497 79,584 73,233 69,332' 66,666' 65,820 66,523 63,974 62,534 71 Official institutions 29,048 24,697 20,288 18,120 17,491 17,900 15,373 15,737 15,667 16,357 72 Nonbank foreigners 31,224 36,517 48,421 49,469 50,170 49,480 50,552 51,056 50,708 49,077 73 Other liabilities 7,813 8,241 12,143 11,447 11,712 12,793 11,401 11,113 11,787 11,374 United Kingdom 74 Total, all currencies 130,873 144,717 157,229 161,471 159,481 161,036 158,466 164,106 164,523 167,189 75 To United States 20,986 21,785 38,022 42,481 41,886 43,882 44,086 46,965 49,001 53,919 76 Parent bank 3,104 4,225 5,444 6,313 8,006 6,694 6,323 6,679 8,022 11,336 77 Other banks in United States 7,693 5,716 7,502 8,607 8,345 8,972 9,985 11,215 11,616 13,280 78 Nonbanks 10,189 11,844 25,076 27,561 25,535 28,216 27,778 29,071 29,363 29,303 79 To foreigners 104,032 117,438 112,255 111,262 109,629 109,199 106,665 109,105 107,268 104,967 80 Other branches of parent bank 12,567 15,384 16,545 17,245 18,358 19,412 17,771 18,010 18,666 19,123 81 Banks 47,620 56,262 51,336 49,616 47,549 46,204 46,628 48,541 47,502 45,526 82 Official institutions 24,202 21,412 16,517 14,608 13,908 14,119 11,746 12,076 12,006 12,098 83 Nonbank foreigners 19,643 24,380 27,857 29,793 29,814 29,464 30,520 30,478 29,094 28,220 84 Other liabilities 5,855 5,494 6,952 7,728 7,966 7,955 7,715 8,036 8,254 8,303 85 Total payable in U.S. dollars 95,449 103,440 120,277 126,359 124,248 126,901 125,859 131,199 132,536 137,268 86 To United States 20,552 21,080 37,332 41,885 41,198 43,143 43,323 46,129 48,266 53,262 87 Parent bank 3,054 4,078 5,350 6,211 7,907 6,624 6,212 6,603 7,928 11,223 88 Other banks in United States 7,651 5,626 7,249 8,489 8,167 8,755 9,806 11,048 11,510 13,142 89 Nonbanks 9,847 11,376 24,733 27,185 25,124 27,764 27,305 28,478 28,828 28,897 90 To foreigners 72,397 79,636 79,034 80,825 79,444 79,914 78,794 81,207 79,954 80,025 91 Other branches of parent bank 8,446 10,474 12,048 13,130 14,102 14,958 13,903 14,202 14,514 15,548 92 Banks 29,424 35,388 32,298 32,090 30,415 29,965 30,557 32,364 31,898 31,187 93 Official institutions 20,192 17,024 13,612 12,196 11,568 11,829 9,843 10,200 10,322 10,762 94 Nonbank foreigners 14,335 16,750 21,076 23,409 23,359 23,162 24,491 24,441 23,220 22,528 95 Other liabilities 2,500 2,724 3,911 3,649 3,606 3,844 3,742 3,863 4,316 3,981 Bahamas and Caymans 96 Total, all currencies 108,977 123,837 149,051 143,981 143,153 140,045 141,878 141,124 144,230 140,528 97 To United States 37,719 59,666 85,704 91,946 94,322 94,579 97,916 98,654 99,315 96,895 98 Parent bank 15,267 28,181 39.250 39,278 35,956 36,552 39,416 41,132 42,976 41,720 99 Other banks in United States 5,204 7,379 10,620 14,281 15,903 16,827 17,410 17,836 17,922 17,977 100 Nonbanks 17,248 24,106 35,834 38,387 42,463 41,200 41,090 39,686 38,417 37,198 101 To foreigners 68,598 61,218 60,012 49,052 45,828 42,082 41,204 39,719 42,029 40,919 102 Other branches of parent bank 20,875 17,040 20,641 18,609 17,364' 15,887' 15,855 15,018 17,348 17,690 103 Banks 33,631 29,895 23,202 16,470 14,779r 13,508' 12,702 11,770 11,615 10,910 104 Official institutions 4,866 4,361 3,498 2,607 2,512 2,448 2,471 2,407 2,288 2,091 105 Nonbank foreigners 9,226 9,922 12,671 11,366 11,173 10,239 10,176 10,524 10,778 10,228 106 Other liabilities 2,660 2,953 3,335 2,983 3,003 3,384 2,758 2,751 2,886 2,714 107 Total payable in U.S. dollars 103,460 119,657 145,227 140,301 139,673 136,713 138,640 137,934 140,786 137,632 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • December 1982 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1982 IItteemm 11998800 11998811 Apr. May. June July Aug. Sept. Oct.'' 1 Total' 116644,,557788 116699,,770022 116655,,550066 116666,,997722 116688,,335555 116699,,883355 116699,,223311 117711,,000000 117711,,116666 By type 2 Liabilities reported by banks in the United States2 3300,,338811 2266,,557722 2266,,333333 2277,,773300 2288,,445599 2255,,446699 2266,,553333 2266,,331133 2266,,776622 3 U.S. Treasury bills and certificates3 5566,,224433 5522,,338899 4433,,885500 4422,,774411 4433,,550099 4455,,882244 4444,,118822 4444,,445500 4433,,999944 U.S. Treasury bonds and notes 4 Marketable 4411,,445555 5533,,115500 5588,,445599 5599,,993333 6600,,225511 6633,,004433 6633,,441100 6644,,999900 6655,,660022 5 Nonmarketable4 1144,,665544 1111,,779911 1111,,005500 1100,,775500 1100,,115500 99,,775500 99,,335500 99,,335500 99,,335500 6 U.S. securities other than U.S. Treasury securities5 2211,,884455 2255,,880000 2255,,881144 2255,,881188 2255,,998866 2255,,774499 2255,,775566 2255,,889977 2255,,445588 By area 7 Western Europe1 8811,,559922 6655,,448844 5577,,440033 5577,,338822 5588,,007799 5588,,778877 6611,,112211 6611,,228888 6600,,556677 8 Canada 11..556622 22,,440033 11,,772211 11,,332299 11,,556688 11,,551199 11,,777711 22,,005577 22,,220033 9 Latin America and Caribbean 55,,668888 66,,995544 77,,112244 77,,224488 77,,669922 77,,112244 66,,773344 66,,227766 77,,008811 10 Asia 7700,,778844 9911,,779900 9944,,883377 9955,,888877 9955,,446666 9977,,112200 9944,,889911 9955,,888800 9955,,330000 11 Africa 44,,112233 11,,882299 11,,882233 11,,338811 11,,443377 11,,448855 11,,332266 11,,330033 11,,445522 12 Other countries6 882299 11,,224422 22,,660000 33,,774455 44,,111133 33,,779999 33,,338888 44,,119966 44,,556633 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. 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1981 1982 IItteemm 11997799 11998800 11998811'' Dec.' Mar. June' Sept.'' 1 Banks' own liabilities 1,918 3,748 3,763 3,763 4,285 4,648 4,841 2 Banks' own claims 2,419 4,206 5,224 5,224 5,574 6,260 6,604 3 Deposits 994 2,507 3,398 3,398 3,532 3,457 3,537 4 Other claims 1,425 1,699 1,826 1,826 2,042 2,803 3,067 5 Claims of banks' domestic customers1 580 962 971 971 944 921 506 1. Assets owned by customers of the reporting bank located in the United States NOTE. Data on claims exclude foreign currencies held by U.S. monetary authat represent claims on foreigners held by reporting banks for the accounts of thorities. their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported. Data A59 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1982 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11997799 11998800 11998811AA Apr. May June July Aug.' Sept. Oct.' 1 All foreigners 187,521 205,297 243,010 266,483 274,638 285,911 284,226 293,050 296,554 296,017 2 Banks' own liabilities 117,196 124,791 162,780 195,117 203,259 212,634 208,290 217,492 218,466 217,151 3 Demand deposits 23,303 23,462 19,646 17,716 16,566 17,285 17,101 15,852 15,418 17,091 4 Time deposits1 13,623 15,076 28,816 48,754 53,667 56,007 59,517 62,103 61,881 61,997 5 Other2 16,453 17,583 17,474 19,030 21,187 22,146 20,308 24,232 23,387 22,619 6 Own foreign offices3 63,817 68,670 96,844 109,616 111,839 117,196 111,363 115,305 117,780 115,444 7 Banks' custody liabilities4 70,325 80,506 80,230 71,366 71,379 73,277 75,936 75,558 78,089 78,866 8 U.S. Treasury bills and certificates5 48,573 57,595 55,316 47,362 46,487 48,817 51,211 49,646 51,572 53,403 9 Other negotiable and readily transferable instruments6 19,396 20,079 18,944 19,326 20,751 20,448 20,717 22,134 22,437 21,748 10 Other 2,356 2,832 5,970 4,679 4,141 4,011 4,009 3,778 4,080 3,715 11 Nonmonetary international and regional organizations7 2,356 2,344 2,721 2,048 3,039 4,001 4,082 5,073 4,936 5,804 12 Banks' own liabilities 714 444 638 608 1,272 1,233 2,246 3,093 2,638 2,112 13 Demand deposits 260 146 262 149 185 300 343 265 194 263 14 Time deposits1 151 85 58 291 471 586 633 453 734 409 15 Other2 303 212 318 168 616 347 1,271 2,376 1,711 1,440 16 Banks' custody liabilities4 1,643 1,900 2,083 1,439 1,767 2,768 1,835 1,980 2,298 3,692 17 U.S. Treasury bills and certificates 102 254 541 142 253 1,425 487 328 676 2,160 18 Other negotiable and readily transferable instruments6 1,538 1,646 1,542 1,297 1,514 1,343 1,349 1,652 1,621 1,532 19 Other 2 0 0 0 0 0 0 0 0 0 20 Official institutions8 78,206 86,624 78,962 70,184 70,471 71,968 71,293 70,715 70,763 70,756 21 Banks' own liabilities 18,292 17,826 16,813 17,122 17,633 18,964 15,887 16,262 16,519 16,728 22 Demand deposits 4,671 3,771 2,581 2,800 2,162 3,167 2,800 2,006 2,526 2,164 23 Time deposits1 3,050 3,612 4,146 5,623 5,769 5,500 6,061 5,749 5,203 5,965 24 Other2 10,571 10,443 10,086 8,699 9,702 10,297 7,026 8,507 8,790 8,599 25 Banks' custody liabilities4 59,914 68,798 62,149 53,063 52,838 53,004 55,406 54,453 54,245 54,028 26 U.S. Treasury bills and certificates5 47,666 56,243 52,389 43,850 42,741 43,509 45,824 44,182 44,450 43,994 27 Other negotiable and readily transferable instruments6 12,196 12,501 9,712 9,029 10,057 9,461 9,547 10,234 9,755 10,000 28 Other 52 54 47 183 40 33 36 37 39 34 29 Banks9 88,316 96,415 135,359 161,229 165,465 173,299 170,998 177,575 179,830 178,399 30 Banks' own liabilities 83,299 90,456 123,640 148,502 152,893 160,594 157,327 163,365 164,005 162,949 31 Unaffiliated foreign banks 19,482 21,786 26,796 38,886 41,054 43,398 45,964 48,060 46,226 47,506 32 Demand deposits 13,285 14,188 11,614 9,912 9,700 9,274 9,384 8,765 8,138 9,887 33 Time deposits1 1,667 1,703 8,654 19,301 21,189 23,403 25,390 26,731 26,260 26,139 34 Other2 4,530 5,895 6,528 9,673 10,165 10,721 11,190 12,564 11,828 11,480 35 Own foreign offices3 63,817 68,670 96,844 109,616 111,839 117,196 111,363 115,305 117,780 115,444 36 Banks' custody liabilities4 5,017 5,959 11,718 12,727 12,573 12,706 13,671 14,209 15,825 15,449 37 U.S. Treasury bills and certificates 422 623 1,687 2,598 2,707 2,926 3,872 3,970 4,897 5,634 38 Other negotiable and readily transferable instruments6 2,415 2,748 4,421 5,968 6,100 6,520 6,661 7,102 7,916 7,069 39 Other 2,179 2,588 5,611 4,161 3,766 3,260 3,138 3,138 3,012 2,746 40 Other foreigners 18,642 19,914 25,968 33,022 35,663 36,642 37,853 39,688 41,025 41,059 41 Banks' own liabilities 14,891 16,065 21,689 28,885 31,462 31,842 32.829 34,772 35,304 35,363 42 Demand deposits 5,087 5,356 5,189 4,855 4,518 4,544 4,575 4,816 4,560 4,778 43 Time deposits 8,755 9,676 15,958 23,540 26,239 26,518 27,433 29,171 29,685 29,485 44 Other2 1,048 1,033 543 490 705 781 822 785 1,059 1,100 45 Banks' custody liabilities4 3,751 3,849 4,279 4,137 4,201 4,800 5,023 4,916 5,721 5,696 46 U.S. Treasury bills and certificates 382 474 699 7871 786 957 1,028 1,167 1,548 1,615 47 Other negotiable and readily transferable instruments6 3,247 3,185 3,268 3,032 3,080 3,125 3,160 3,147 3,146 3,147 48 Other 123 190 312 334 335 718 835 603 1,028 934 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,984 10,745 10,672 11,673 12,652 12,878 13,029 13,921 13,533 13,990 1. Excludes negotiable time certificates of deposit, which are included in "Other 6. Principally bankers acceptances, commercial paper, and negotiable time cernegotiable and readily transferable instruments." tificates of deposit. 2. Includes borrowing under repurchase agreements. 7. Principally the International Bank for Reconstruction and Development, and 3. U.S. banks: includes amounts due to own foreign branches and foreign sub- the Inter-American and Asian Development Banks. sidiaries consolidated in "Consolidated Report of Condition" filed with bank reg- 8. Foreign central banks and foreign central governments and the Bank for ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign International Settlements. banks: principally amounts due to head office or parent foreign bank, and foreign 9. Excludes central banks, which are included in "Official institutions." branches, agencies or wholly owned subsidiaries of head office or parent foreign A Liabilities and claims of banks in the United States were increased, beginning bank. in December 1981, by the shift from foreign branches to international banking 4. Financial claims on residents of the United States, other than long-term se- facilities in the United States of liabilities to, and claims on, foreign residents. curities, held by or through reporting banks. 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • December 1982 3.17 Continued 1982 AArreeaa aanndd ccoouunnttrryy 11997799 11998800 Apr. May June July Aug.' Sept. Oct.P 1 Total 187,521 205,297 243,010 266,483 274,638 285,911 284,226 293,050 296,554 296,017 2 Foreign countries 185,164 202,953 240,289 264,435 271,599 281,910 280,144 287,977 291,619 290,214 3 Europe 90,952 90,897 90,951 91,908 97,469 102,699 106,284 112,022 114,201 114,832 4 Austria 413 523 587 472 454 434 501 531 537 508 5 Belgium-Luxembourg 2,375 4,019 4,117 2,898 3,075 2,869 2,957 3,218 3,259 2,777 6 Denmark 1,092 497 333 613 608 510 452 446 149 166 7 Finland 398 455 296 229 212 181 162 224 328 478 8 France 10,433 12.125 8,486 6,737 6,312 9,234 8,635 8,145 7,720 7,374 9 Germany 12,935 9,973 7,665 6,556 6,954 6,221 5,624 5,397 5,311 5,341 10 Greece 635 670 463 457 549 512 506 559 471 516 11 Italy 7.782 7,572 7,290 3,695 3,420 4,720 5,760 6,703 6,714 5,541 12 Netherlands 2.337 2,441 2,823 2,963 2,719 2,836 2,789 2,838 2,899 3,098 13 Norway 1.267 1,344 1,457 1,666 1,981 1,370 1,333 1,634 1,773 2,026 14 Portugal 557 374 354 272 276 365 365 453 386 356 15 Spain 1,259 1,500 916 1,055 1,114 1,191 1,133 1,223 1,096 1,315 16 Sweden 2.005 1,737 1,545 1,373 1,425 1,416 1,385 1,278 1,324 2,000 17 Switzerland 17,954 16,689 18,726 20,346 21,567 22,473 23,851 25,019 26,519 26,750 18 Turkey 120 242 518 364 204 167 222 287 301 317 19 United Kingdom 24,700 22,680 28,288 35,452 39,872 41,159 44,115 46,881 48,445 48,809 20 Yugoslavia 266 681 375 259 237 314 320 317 307 390 21 Other Western Europe1 4,070 6,939 6,170 6,116 6,090 6,163 5,734 6,381 6,275 6,400 22 U.S.S.R 52 68 49 37 30 44 41 47 47 111 23 Other Eastern Europe2 302 370 493 350 371 521 397 440 342 559 24 Canada 7.379 10,031 10,250 12,298 10,621 11,541 11,168 12,194 11,607 12,163 25 Latin America and Caribbean 49,686 53,170 84,685 103,999 105,891 109,452 103,874 106,805 107,340 105,169 26 Argentina 1,582 2,132 2,445 2,729 2,207 2,030 2,088 2,636 3,250 5,140 27 Bahamas 15,255 16.381 34,400 45,608 44,756 44,615 39,482 41,502 40,786 38,030 28 Bermuda 430 670 765 1,165 1,350 1,300 1,302 1,289 1,519 1,517 29 Brazil 1,005 1,216 1,568 1,462 1,615 1,822 1,823 1,865 1,761 2,101 30 British West Indies 11,138 12,766 17,794 19,656 19,749 22,631 22,069 22,871 23,288 22,943 31 Chile 468 460 664 992 1,224 1,224 1,442 1,170 1,293 1,438 32 Colombia 2.617 3,077 2,993 2,639 2,515 2,700 2,699 2,636 2,516 2,407 33 Cuba 13 6 9 6 6 6 7 9 7 7 34 Ecuador 425 371 434 491 465 559 527 478 524 556 35 Guatemala 414 367 479 569 583 580 613 616 639 636 36 Jamaica 76 97 87 133 104 100 139 136 121 118 37 Mexico 4.185 4,547 7.163 8,533 9,438 8,957 9,643 9,259 8,370 8,023 38 Netherlands Antilles 499 413 3,182 3,474 3,449 3,727 3,602 3,759 3,713 3,659 39 Panama 4,483 4,718 4,847 4,238 4,338 5,357 4,884 4,656 6,001 4,714 40 Peru 383 403 694 620 753 1,069 931 984 974 1,031 41 Uruguay 202 254 367 410 561 542 609 665 721 844 42 Venezuela 4.192 3,170 4,245 8,218 9,421 9,310 9,139 9,219 8,625 8,796 43 Other Latin America and Caribbean 2,318 2,123 2,548 3,056 3,357 3,022 2,874 3,056 3,232 3,209 44 Asia 33,005 42,420 49,805 50,378 50,991 51,143 52,041 50,854 51,115 49,942 China 45 Mainland 49 49 158 331 284 244 261 245 254 216 46 Taiwan 1,393 1,662 2,082 2,291 2,378 2,334 2,371 2,323 2,490 2,564 47 Hong Kong 1,672 2,548 3,950 4,587 4,737 4,880 4,918 4,551 4,945 4,956 48 India 527 416 385 544 603 540 551 655 407 449 49 Indonesia 504 730 640 837 789 583 722 593 436 748 50 Israel 707 883 592 537 562 610 476 486 584 888 51 Japan 8,907 16,281 20,551 19,311 18,896 18,994 19,827 19,291 18,906 16,734 52 Korea 993 1,528 2,013 2,356 2,192 1,863 1,934 1,712 1,894 1,886 53 Philippines 795 919 874 709 785 839 660 728 712 736 54 Thailand 277 464 534 517 474 485 450 369 310 365 55 Middle-East oil-exporting countries3 15,300 14,453 13,174 14,342 14,400 14,267 14,243 14,106 14,026 14,053 56 Other Asia 1,879 2.487 4,852 4,016 4,891 5,503 5,629 5,795 6,152 6,348 57 3,239 5,187 3,180 3,111 2,629 2,675 2,692 2,586 2,783 3,369 58 Egypt 475 485 360 411 382 447 430 405 385 242 59 Morocco 33 33 32 52 37 59 52 47 63 54 60 South Africa 184 288 420 308 305 335 339 341 344 279 61 Zaire 110 57 26 41 27 37 25 25 20 23 62 Oil-exporting countries4 1,635 3,540 1,395 1,144 846 901 1,025 908 1,074 1,669 63 Other Africa 804 783 946 1,156 1,031 896 821 860 897 1,103 64 Other countries 904 1,247 1,419 2,742 3,997 4,400 4,085 3,516 4,572 4,738 65 Australia 684 950 1,223 2,541 3,752 4,172 3,831 3,317 4,355 4,530 66 All other 220 297 196 201 245 228 254 199 216 207 67 Nonmonetary international and regional organizations 2.356 2,344 2,721 2,048 3,039 4,001 4,082 5,073 4,936 5,804 68 International 1.238 1,157 1,661 1,269 2,064 2,860 3,064 3,937 3,820 4,916 69 Latin American regional 806 890 710 450 661 694 606 776 719 573 70 Other regional5 313 296 350 328 314 446 412 361 397 315 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. 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 April 1978 comprises Bulgaria, Czechoslovakia, the German Dem- Europe." ocratic Republic, Hungary, Poland, and Romania. A Liabilities and claims of banks in the United States were increased, beginning 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and in December 1981, by the shift from foreign branches to international banking United Arab Emirates (Trucial States). facilities in the United States of liabilities to, and claims on, foreign residents. 4. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported. Data A61 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1982 AArreeaa aanndd ccoouunnttrryy 11997799 11998800 11998811AA Apr. May June July Aug.' Sept. Oct.' 1 Total 133,943 172,592 251,035 288,353 301,247 314,381 322,831 328,555 339,120 334,090 2 Foreign countries 133,906 172,514 250,979 288,313 301,203 314,338 322,785 328,448 339,076 334,034 3 Europe 28,388 32,108 49,054 59,334 62,051 64,115 67,237 70,788 76,142 78,324 4 Austria 284 236 121 200 201 140 189 186 136 178 5 Belgium-Luxembourg 1,339 1,621 2,843 3,848 3,669 3,760 4,102 4,421 4,820 4,904 6 Denmark 147 127 188 279 276 287 303 323 359 396 7 Finland 202 460 547 525 638 736 699 776 806 813 8 France 3,322 2,958 4,126 5,062 5,528 6,405 5,917 5,960 5,795 6,218 9 Germany 1,179 948 936 1,483 1,512 1,758 1,734 1,565 1,610 1,521 10 Greece 154 256 333 279 262 297 294 270 283 335 11 Italy 1,631 3,364 5,240 5,095 5,861 6,024 6,282 6,569 6,742 7,346 12 Netherlands 514 575 682 740 917 1,005 1,118 1,085 1,096 1,285 13 Norway 276 227 384 452 416 429 538 482 575 544 14 Portugal 330 331 529 813 797 938 990 970 998 1,018 15 Spain 1,051 993 2,100 2,052 2,628 3,086 3,308 3,520 3,464 3,558 16 Sweden 542 783 1,206 1,441 1,692 1,638 1,513 1,693 2,417 2,799 17 Switzerland 1,165 1,446 2,213 1,564 1,557 1,596 1,601 1,589 1,860 1,751 18 Turkey 149 145 424 487 573 584 646 600 605 603 19 United Kingdom 13,795 14,917 23,645 31,073 31,974 31,834 34,392 37,162 40,991 41,525 20 Yugoslavia 611 853 1,224 1,238 1,202 1,294 1,266 1,220 1,196 1,248 21 Other Western Europe1 175 179 209 282 386 247 280 286 325 266 22 U.S.S.R 268 281 377 195 251 296 274 296 249 242 23 Other Eastern Europe2 1,254 1,410 1,725 1,777 1,711 1,761 1,791 1,814 1,816 1,773 24 Canada 4,143 4,810 9,164 11,805 11,349 12,693 13,070 12,083 11,719 12,962 25 Latin America and Caribbean 67,993 92,992 138,114 158,212 167,187 173,201 178,018 181,600 186,361 179,976 26 Argentina 4,389 5,689 7,522 10,896 10,816 11,012 10,971 10,936 11,020 11,019 27 Bahamas 18,918 29,419 43,437 47,875 49,079 51,849 52,403 54,613 55,238 51,724 28 Bermuda 496 218 346 575 396 414 398 385 429 610 29 Brazil 7,713 10,496 16,918 19,217 20,420 21,147 21,557 22,146 23,121 23,065 30 British West Indies 9,818 15,663 21,913 22,741 25,469 25,825 27,914 28,504 29,987 28,088 31 Chile 1,441 1,951 3,690 4,590 4,899 5,268 5,228 5,367 5,358 5,276 32 Colombia 1,614 1,752 2,018 2,146 2,270 2,554 22,,661122 2,650 2,827 2,838 33 Cuba 4 3 3 137 37 3 88 3 3 3 34 Ecuador 1,025 1,190 1,531 1,879 1,852 2,022 2,027 2,048 2,132 2,057 35 Guatemala3 134 137 124 116 112 124 121 116 121 111 36 Jamaica3 47 36 62 130 781 124 578 508 387 151 37 Mexico 9,099 12,595 22,408 26,087 28,357 29,547 29,749 29,347 29,799 29,371 38 Netherlands Antilles 248 821 1,076 887 880 1,028 1,032 778 826 688 39 Panama 6,041 4,974 6,779 8,246 8,321 8,660 9,146 9,842 10,288 9,978 40 Peru 652 890 1,218 1,593 1,672 2,047 2,064 2,062 2,261 2,244 41 Uruguay 105 137 157 316 347 381 413 457 552 572 42 Venezuela 4,657 5,438 7,069 8,561 9,184 9,138 9,691 9,800 9,954 9,925 43 Other Latin America and Caribbean 1,593 1,583 1,844 2,220 2,295 2,057 2,105 2,039 2,058 2,257 44 Asia 30,730 39,078 49,770 52,770 53,963 57,368 57,404 57,235 57,519 5555,,667799 China 45 Mainland 35 195 107 98 68 124 139 127 126 139 46 Taiwan 1,821 2,469 2,461 2,275 2,114 2,048 1,977 1,891 1,951 2,020 47 Hong Kong 1,804 2,247 4,126 5,352 6,002 6,390 6,124 6,447 6,721 5,976 48 India 92 142 123 195 185 252 266 235 275 254 49 Indonesia 131 245 346 308 315 288 294 297 300 315 50 Israel 990 1,172 1,562 1,160 1,391 1,835 1,637 1,534 1,625 1,748 51 Japan 16,911 21,361 26,757 27,949 27,549 29,258 30,082 29,495 28,655 26,730 52 Korea 3,793 5,697 7,324 7,007 7,104 7,119 7,046 6,967 7,382 7,786 53 Philippines 737 989 1,817 2,270 2,464 2,605 2,605 2,611 2,508 2,560 54 Thailand 933 876 564 565 502 459 406 388 410 442 55 Middle East oil-exporting countries4 1,548 1,432 1,575 2,411 2,613 2,564 2,493 2,633 2,643 2,847 56 Other Asia 1,934 2,252 3,009 3,180 3,656 4,426 4,335 4,609 4,925 4,862 57 Africa 1,797 2,377 3,503 4,389 4,775 4,851 5,029 4,865 5,201 5,016 58 Egypt 114 151 238 345 400 416 378 399 390 365 59 Morocco 103 223 284 312 278 334 314 368 376 367 60 South Africa 445 370 1,011 1,344 1,389 1,467 1,620 1,574 1,779 1,744 61 Zaire 144 94 112 100 81 84 81 58 62 61 62 Oil-exporting countries5 391 805 657 730 844 799 849 761 852 762 63 Other 600 734 1,201 1,559 1,783 1,751 1,787 1,705 1,742 1,718 64 Other countries 855 1,150 1,376 1,803 1,878 2,111 2,028 1,878 2,135 2,078 65 Australia 673 859 1,203 1,560 1,655 1,806 1,700 1,534 1,803 1,708 66 All other 182 290 172 243 223 305 328 344 332 370 67 Nonmonetary international and regional organizations6 36 78 56 40 43 43 45 106 44 56 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 A Liabilities and claims of banks in the United States were increased, beginning United Arab Emirates (Trucial States). in December 1981, by the shift from foreign branches to international banking facilities in the United States of liabilities to, and claims on, foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • December 1982 3.19 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 1982 TTyyppee ooff ccllaaiimm 11997799 11998800 11998811AA Apr. May June' July Aug.' Sept. Oct.P 1 Total 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,666666699999998888888 222222288888886666666,,,,,,,444444400000004444444 333333355555555555555,,,,,,,000000099999993333333 333333377777776666666,,,,,,,111111199999996666666 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,000000033333335555555 288,353 301,247 333333311111114444444,,,,,,,333333388888881111111 322,831 328,555 333333333333339999999,,,,,,,111111122222220000000 334,090 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 11111115555555,,,,,,,999999933333337777777 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,222222299999994444444 35,039 37,630 44444440000000,,,,,,,000000000000001111111 40,684 41,678 44444442222222,,,,,,,777777700000008888888 42,581 44 OOwwnn ffoorreeiiggnn ooffffiicceess11 44444447777777,,,,,,,444444422222228888888 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666633333339999999 106,988 108,699 111111111111113333333,,,,,,,777777722222222222222 114,098 118,563 111111122222225555555,,,,,,,333333333333339999999 116,876 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,111111100000004444444 90,823 97,175 111111100000001111111,,,,,,,777777755555556666666 108,313 109,133 111111111111111111111,,,,,,,222222266666663333333 114,290 66 DDeeppoossiittss 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 22222222222222,,,,,,,777777700000004444444 29,338 33,725 33333335555555,,,,,,,666666666666667777777 40,028 40,945 44444440000000,,,,,,,555555511111113333333 42,070 77 OOtthheerr 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,444444400000000000000 61,485 63,450 66666666666666,,,,,,,000000099999990000000 68,285 68,189 77777770000000,,,,,,,777777755555550000000 72,220 88 AAllll ootthheerr ffoorreeiiggnneerrss 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999999999998888888 55,502 57,743 55555558888888,,,,,,,999999900000001111111 59,736 59,181 55555559999999,,,,,,,888888811111111111111 60,343 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 .... 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,333333366666668888888 44444440000000,,,,,,,777777711111112222222 33333337777777,,,,,,,000000077777776666666 999999955555555555555 888888888888885555555 1111111,,,,,,,333333377777778888888 1111111,,,,,,,444444422222226666666 1111111,,,,,,,333333399999990000000 11 Negotiable and readily transferable 11111113333333,,,,,,,111111100000000000000 11111115555555,,,,,,,555555577777774444444 22222225555555,,,,,,,777777755555552222222 33333331111111,,,,,,,999999966666666666666 22222228888888,,,,,,,555555577777777777777 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,333333322222220000000 7777777,,,,,,,111111111111110000000 1133 MMEEMMOO:: CCuussttoommeerr lliiaabbiilliittyy oonn 11111118888888,,,,,,,000000022222221111111 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,555555566666665555555 33333333333333,,,,,,,111111188888880000000 33333335555555,,,,,,,111111100000003333333 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 22,305 24,511 39,820 41,480 44,030 44,530 45,213 43,698 43,575 n.a. 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Includes demand and time deposits and negotiable and nonnegotiable certifsubsidiaries consolidated in "Consolidated Report of Condition" filed with bank icates of deposit denominated in U.S. dollars issued by banks abroad. For descripregulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign tion of changes in data reported by nonbanks, see July 1979 BULLETIN, p. 550. banks: principally amounts due from head office or parent foreign bank, and foreign ^ Liabilities and claims of banks in the United States were increased, beginning branches, agencies, or wholly owned subsidiaries of head office or parent foreign in December 1981, by the shift from foreign branches to international banking bank. facilities in the United States of liabilities to, and claims on, foreign residents. 2. Assets owned by customers of the reporting bank located in the United States NOTE. Beginning April 1978, data for banks' own claims are given on a monthly that represent claims on foreigners held by reporting banks for the account of their basis, but the data for claims of banks' own domestic customers are available on domestic customers. a quarterly basis only. 3. Principally negotiable time certificates of deposit and bankers acceptances. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1979 1980 1981 1982 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa Dec. Dec. Sept Dec.A Mar. June Sept.? 1 ToUl 86,181 106,748 122,477 153,932 174,618 200,515 213,061 By borrower 2 Maturity of 1 year or less1 65,152 82,555 94,957 115,908 133,019 151,592 160,949 3 Foreign public borrowers 7,233 9,974 12,978 15,192 16,603 19,439 20,138 4 All other foreigners 57,919 72,581 81,979 100,715 116,416 132,153 140,811 5 Maturity of over 1 year1 21,030 24,193 27,520 38,025 41,598 48,923 52,112 6 Foreign public borrowers 8,371 10,152 12,564 15,645 16,843 19,995 21,928 7 All other foreigners 12,659 14,041 14,956 22,380 24,755 28,928 30,184 By area Maturity of 1 year or less1 8 Europe 15,235 18,715 23,015 27,893 34,246 38,904 44,555 9 Canada 1,777 2,723 3,959 4,634 5,807 6,593 6,975 10 Latin America and Caribbean 24,928 32,034 35,590 48,473 58,243 67,967 71,536 11 21,641 26,686 29,295 31,508 30,585 33,603 33,079 12 Africa 1,077 1,757 2,324 2,457 2,890 3,308 3,624 13 All other2 493 640 774 943 1,249 11,,221188 1,180 Maturity of over 1 year1 14 Europe 4,160 5,118 6,424 8,095 8,435 9,356 10,576 15 Canada 1,317 1,448 1,347 1,774 1,863 2,345 1,867 16 Latin America and Caribbean 12,814 15,075 17,478 25,088 27,684 32,857 34,258 17 1,911 1,865 1,550 1,902 2,245 2,465 3,370 18 Africa 655 507 548 899 1,056 1,276 1,351 19 All other2 173 179 172 267 315 625 690 1. Remaining time to maturity. A Liabilities and claims of banks in the United States were increased, beginning 2. Includes nonmonetary international and regional organizations. in December 1981, by the shift from foreign branches to international banking facilities in the United States of liabilities to, and claims on, foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1980 1981 1982 AArreeaa oorr ccoouunnttrryy 1199778822 11997799 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept.'' 1 Total 20.3 24.7 339.3 352.0 372.1 382.8 399.8 412.3 411.8 421.9 433.4 2 G-10 countries and Switzerland 12.2 12.3 158.8 162.1 168.5 168.3 172.2 173.9 172.2 171.1 173.4 3 Belgium-Luxembourg .8 .8 13.6 13.0 13.6 13.8 14.1 13.3 13.1 13.9 13.5 4 France .7 1.2 13.9 14.1 14.5 14.7 16.0 15.3 15.8 16.3 15.7 5 Germany 3.1 3.3 12.9 12.1 13.3 12.1 12.7 12.9 12.5 12.7 12.2 6 Italy .7 .7 7.2 8.2 7.7 8.4 8.6 9.8 8.9 8.8 9.7 7 Netherlands .5 1.1 4.4 4.4 4.6 4.2 3.7 4.0 4.0 4.1 3.8 8 Sweden .5 .5 2.8 2.9 3.2 3.1 3.4 3.7 4.0 3.9 4.7 9 Switzerland .2 .1 3.4 5.0 5.1 5.2 5.1 5.5 5.3 5.1 5.0 10 United Kingdom 8.9 8.2 66.7 67.4 68.5 67.0 68.8 69.1 68.8 67.1 68.8 11 Canada 2.0 1.3 7.7 8.4 8.9 10.8 11.8 11.0 11.4 10.9 10.7 12 Japan .3 1.3 26.1 26.5 29.1 28.9 28.0 29.4 28.4 28.4 29.2 13 Other developed countries .4 .4 20.6 21.6 23.5 24.8 26.4 28.4 30.4 31.7 32.7 14 Austria .1 .0 1.8 1.9 1.8 2.1 2.2 1.9 2.1 2.1 2.0 15 Denmark .2 .1 2.2 2.3 2.4 2.3 2.5 2.3 2.5 2.6 2.5 16 Finland .3 .2 1.2 1.4 1.4 1.3 1.4 1.7 1.6 1.6 1.8 17 Greece .6 .7 2.6 2.8 2.7 3.0 2.9 2.8 2.8 2.5 2.5 18 Norway .3 .3 2.4 2.6 2.8 2.8 3.0 3.1 3.2 3.2 3.4 19 Portugal .2 .3 .7 .6 .6 .8 1.0 1.1 1.1 1.5 1.6 20 Spain .9 .9 4.2 4.4 5.5 5.7 5.8 6.6 7.1 7.2 7.7 21 Turkey .3 .1 1.3 1.5 1.5 1.4 1.5 1.4 1.5 1.4 1.5 22 Other Western Europe 2.1 2.4 1.7 1.7 1.8 1.8 1.9 2.1 2.2 2.2 2.1 23 South Africa .6 .3 1.2 1.1 1.5 1.9 2.5 2.8 3.2 3.4 3.6 24 Australia .6 .5 1.2 1.3 1.5 1.7 1.9 2.5 3.1 4.0 4.0 25 OPEC countries3 1.1 .3 21.4 22.7 21.7 22.2 23.5 24.4 24.8 25.4 27.2 26 Ecuador .6 .7 1.9 2.1 2.0 2.0 2.1 2.2 2.3 2.3 2.3 27 Venezuela 2.1 2.2 8.5 9.1 8.3 8.8 9.2 9.6 9.4 9.4 10.2 28 Indonesia .1 .1 1.9 1.8 2.1 2.1 2.5 2.5 2.7 2.7 2.9 29 Middle East countries 4.2 3.5 6.7 6.9 6.7 6.8 7.1 7.6 8.2 8.6 9.1 3P African countries .3 .3 2.4 2.8 2.6 2.6 2.6 2.5 2.2 2.3 2.7 31 Non-OPEC developing countries 14.6 16.7 73.0 77.4 82.2 84.8 90.2 95.8 94.8 100.2 104.3 Latin America 32 Argentina 1.0 1.7 7.6 7.9 9.5 8.5 9.3 9.3 9.4 9.0 9.2 33 Brazil 2.7 2.4 15.8 16.2 17.0 17.5 17.7 19.0 19.0 20.4 22.4 34 Chile .7 .8 3.2 3.7 4.0 4.8 5.5 5.8 5.7 6.0 6.2 35 Colombia .9 1.1 2.4 2.6 2.4 2.5 2.5 2.6 2.2 2.5 2.8 36 Mexico 3.2 3.5 14.4 15.9 17.0 18.2 20.0 21.5 22.5 24.2 25.1 37 Peru .8 .4 1.5 1.8 1.8 1.7 1.8 2.0 1.8 2.3 2.6 38 Other Latin America 1.3 1.4 3.9 3.9 4.7 3.8 4.2 4.1 4.1 3.9 4.5 Asia China 39 Mainland .0 .0 .1 .2 .2 .2 .2 .2 .2 .3 .2 40 Taiwan .9 1.1 4.1 4.2 4.4 4.6 5.1 5.1 5.1 5.0 4.9 41 India .0 .1 .2 .3 .3 .3 .3 .3 .5 .5 .5 42 Israel .6 .6 1.1 1.5 1.3 1.8 1.5 2.0 1.6 2.1 1.9 43 Korea (South) 1.5 2.6 7.3 7.1 7.7 8.8 8.6 9.4 8.6 8.9 9.4 44 Malaysia .1 .2 1.1 1.1 1.2 1.4 1.4 1.7 1.7 1.9 1.8 45 Philippines .1 .6 4.8 5.1 4.8 5.1 5.6 6.0 5.8 6.2 6.0 46 Thailand .6 .8 1.5 1.6 1.6 1.5 1.4 1.5 1.3 1.3 1.3 47 Other Asia .1 .3 .5 .6 .5 .7 .8 1.0 1.0 1.2 1.3 Africa 48 Egypt .1 .1 .6 .8 .8 .7 1.0 1.1 1.3 1.3 1.3 49 Morocco .1 .1 .6 .7 .6 .5 .7 .7 .7 .7 .8 50 Zaire .1 .1 .2 .2 .2 .2 .2 .2 .2 .2 .0 51 Other Africa4 .2 .3 2.1 2.1 2.2 2.1 2.2 2.3 2.3 2.3 2.3 52 Eastern Europe 1.2 1.7 7.3 7.4 7.7 7.7 7.7 7.7 7.0 6.4 6.4 53 U.S.S.R .3 .3 .5 .4 .4 .5 .4 .6 .4 .4 .3 54 Yugoslavia .3 .6 2.1 2.3 2.4 2.5 2.5 2.5 2.4 2.3 2.2 55 Other .5 .9 4.7 4.6 4.8 4.8 4.7 4.7 4.2 3.7 3.8 56 Offshore banking centers 23.4 30.9 44.6 47.0 53.7 59.3 61.7 63.6 64.4 69.5 69.7 57 Bahamas 11.9 13.6 13.2 13.7 15.5 17.9 21.3 18.9 19.7 22.9 20.2 58 Bermuda .1 .2 .6 .6 .7 .7 .8 .7 .7 .7 .8 59 Cayman Islands and other British West Indies .6 4.6 10.1 10.6 11.9 12.6 12.1 12.6 11.5 11.6 13.0 60 Netherlands Antilles .1 .3 1.3 2.1 2.3 2.4 2.2 3.2 3.2 3.0 3.3 61 Panama5 2.9 4.9 5.6 5.4 6.5 6.9 6.7 7.5 7.0 7.1 7.7 62 Lebanon .0 .0 .2 .2 .2 .2 .2 .2 .2 .2 .1 63 Hong Kong 3.8 3.2 7.5 8.1 8.4 10.3 10.3 11.8 12.8 14.3 14.9 64 Singapore 3.8 4.2 5.6 5.9 7.3 8.1 8.0 8.6 9.2 9.6 9.7 65 Others6 .4 .5 .4 .3 .9 .3 .1 .1 .1 .1 .0 66 Miscellaneous and unallocated7 .3 .4 13.7 14.0 14.9 15.7 18.2 18.7 18.2 18.2 19.8 1. The banking offices covered by these data are the U.S. offices and foreign in this table include only banks' own claims payable in dollars. For earlier dates branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. the claims of the U.S. offices also include customer claims and foreign currency Offices not covered include (1) U.S. agencies and branches of foreign banks, and claims (amounting in June 1978 to $10 billion). (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are ad- 3. In addition to the Organization of Petroleum Exporting Countries shown justed to exclude the claims on foreign branches held by a U.S. office or another individually, this group includes other members of OPEC (Algeria, Gabon, Iran, foreign branch of the same banking institution. The data in this table combine Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims well as Bahrain and Oman (not formally members of OPEC). of U.S. offices in table 3.18 (excluding those held by agencies and branches of 4. Excludes Liberia. foreign banks and those constituting claims on own foreign branches). However, 5. Includes Canal Zone beginning December 1979. see also footnote 2. 6. Foreign branch claims only. 2. Beginning with data for June 1978, the claims of the U.S. offices 7. Includes New Zealand, Liberia, and international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • December 1982 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1981 1982 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 Sept. Dec. Mar. June 1 Total 17,383 22,125 22,001 23,347 22,001 21,711 20,496 2 Payable in dollars 14,288 18,394 18,367 20,218 18,367 19,026 17,821 3 Payable in foreign currencies 3,095 3,731 3,635 3,129 3,635 2,685 2,675 By type 4 Financial liabilities 7,476 11,282 11,723 12,894 11,723 11,930 9,670 5 Payable in dollars 5,192 8,494 9,130 10,592 9,130 10,043 7,774 6 Payable in foreign currencies 2,284 2,788 2,593 2,302 2,593 1,887 1,896 7 Commercial liabilities 9,906 10,843 10,278 10,453 10,278 9,782 10,826 8 Trade payables 4,591 4,940 4,647 4,364 4,647 4,022 4,967 9 Advance receipts and other liabilities 5,315 5,903 5,631 6,089 5,631 5,760 5,859 10 Payable in dollars 9,095 9,900 9,237 9,626 9,237 8,983 10,047 11 Payable in foreign currencies 811 943 1,041 827 1,041 798 779 By area or country Financial liabilities 12 Europe 4,649 6,467 6,667 7,824 6,667 7,584 5,795 13 Belgium-Luxembourg 322 465 431 482 431 534 499 14 France 175 327 636 846 636 856 531 15 Germany 497 582 491 430 491 503 439 1ft Netherlands 829 681 738 664 738 735 503 17 Switzerland 170 354 715 465 715 707 661 18 United Kingdom 2,477 3,923 3,531 4,773 3,531 4,143 3,027 19 Canada 532 964 958 977 958 914 758 20 Latin America and Caribbean 1,483 3,103 3,114 3,247 3,114 2,968 2,605 21 Bahamas 375 964 1,279 1,019 1,279 1,095 1,003 22 Bermuda 81 1 7 6 7 6 7 23 Brazil 18 23 22 20 22 27 24 24 British West Indies 514 1,452 1,045 1,395 1,045 1,123 858 25 Mexico 121 99 102 107 102 67 83 26 Venezuela 72 81 98 90 98 97 100 27 804 723 957 814 957 450 498 28 Japan 726 644 792 696 792 293 340 29 Middle East oil-exporting countries2 31 38 47 30 47 63 66 30 Africa 4 11 3 3 3 2 3 31 Oil-exporting countries3 1 1 0 1 0 0 0 32 All other4 4 15 24 29 24 12 11 Commercial liabilities 33 Europe 3,707 4,402 3,771 3,961 3,771 3,422 3,661 34 Belgium-Luxembourg 137 90 67 78 67 50 47 35 France 467 582 573 575 573 504 657 36 Germany 545 679 545 590 545 473 457 37 Netherlands 227 219 221 238 221 232 247 38 Switzerland 316 499 424 569 424 400 412 39 United Kingdom 1,077 1,209 884 925 884 824 849 40 Canada 924 876 870 834 870 884 1,116 41 Latin America 1,323 1,259 986 1,087 986 804 1,399 42 Bahamas 69 8 2 3 2 22 20 43 Bermuda 32 75 67 113 67 71 102 44 Brazil 203 111 67 61 67 83 62 45 British West Indies 21 35 2 11 2 27 1 46 Mexico 257 326 293 345 293 210 727 47 Venezuela 301 319 276 273 276 194 219 48 2,991 3,034 3,285 3,221 3,285 3,404 3,286 49 Japan 583 802 1,094 775 1,094 1,090 1,060 50 Middle East oil-exporting countries2 1,014 890 910 881 910 998 954 51 Africa 728 817 703 757 703 664 733 52 Oil-exporting countries3 384 517 344 355 344 247 340 53 All other4 233 456 664 593 664 604 630 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Algeria, Gabon, Libya, and Nigeria. 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. 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

Nonbank-Reported Data A65 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1981 1982 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 Sept. Dec. Mar. June 1 Total 31,375 34,743 35,790 34,544 35,790 30,080 30,386 2 Payable in dollars 28,183 31,803 32,206 31,541 32,206 27,474 27,921 3 Payable in foreign currencies 3,193 2,940 3,584 3,003 3,584 2,606 2,465 By type 4 Financial claims 18,484 20,057 20,906 19,586 20,906 17,658 18,368 5 Deposits 12,847 14,220 14,694 13,775 14,694 12,590 13,463 6 Payable in dollars 11,931 13,445 14,080 13,048 14,080 12,133 13,112 7 Payable in foreign currencies 916 775 614 727 614 457 351 8 Other financial claims 5,637 5,837 6,212 5,811 6,212 5,068 4,905 9 Payable in dollars 3,810 4,154 3,758 4,116 3,758 3,439 3,348 10 Payable in foreign currencies 1,826 1,683 2,454 1,695 2,454 1,629 1,557 11 Commercial claims 12,892 14,686 14,884 14,959 14,884 12,422 12,019 12 Trade receivables 12,188 13,953 13,944 14,048 13,944 11,462 10,960 13 Advance payments and other claims 704 733 940 911 940 960 1,058 14 Payable in dollars 12,441 14,203 14,368 14,377 14,368 11,902 11,461 15 Payable in foreign currencies 450 483 516 582 516 520 557 By area or country Financial claims 16 Europe 6,191 6,179 4,592 4,846 4,592 4,511 4,624 17 Belgium-Luxembourg 32 195 43 26 43 16 13 18 France 177 337 325 348 325 422 418 19 Germany 409 230 244 320 244 197 190 20 Netherlands 53 51 50 68 50 79 81 21 Switzerland 73 59 87 100 87 53 63 22 United Kingdom 5,111 4,992 3,505 3,659 3,505 3,502 3,577 23 Canada 4,997 5,064 6,624 6,032 6,624 4,891 4,381 24 Latin America and Caribbean 6,293 7,823 8,589 7,747 8,589 7,377 8,243 25 Bahamas 2,765 3,479 3,902 3,262 3,902 3,482 3,792 26 Bermuda 30 135 18 15 18 27 42 27 Brazil 163 96 30 66 30 49 76 28 British West Indies 2,011 2,755 3,500 3,313 3,500 2,797 3,487 29 Mexico 157 208 313 283 313 281 274 30 Venezuela 143 137 148 143 148 130 134 31 706 722 882 623 882 680 870 32 Japan 199 189 363 111 363 267 397 33 Middle East oil-exporting countries2 16 20 37 29 37 36 33 34 Africa 253 238 168 222 168 164 156 35 Oil-exporting countries3 49 26 46 41 46 43 41 36 All other4 44 32 51 116 51 34 94 Commercial claims 37 Europe 4,909 5,512 5,329 5,347 5,329 4,375 4,241 38 Belgium-Luxembourg 202 233 234 220 234 245 209 39 France 727 1,129 776 767 776 696 634 40 Germany 589 591 554 580 554 452 391 41 Netherlands 298 318 303 308 303 227 296 42 Switzerland 272 353 427 404 427 354 383 43 United Kingdom 901 928 967 1,032 967 1,060 893 44 Canada 859 914 967 1,017 967 939 707 45 Latin America and Caribbean 2,879 3,765 3,464 3,726 3,464 2,905 2,763 46 Bahamas 21 21 12 18 12 80 30 47 Bermuda 197 108 223 241 223 212 226 48 Brazil 645 861 668 726 668 417 419 49 British West Indies 16 34 12 13 12 23 14 50 Mexico 708 1,101 1,020 983 1,020 761 748 51 Venezuela 343 410 422 454 422 396 381 52 3,451 3,522 3,914 3,700 3,914 3,152 3,297 53 Japan 1,177 1,052 1,244 1,129 1,244 1,158 1,211 54 Middle East oil-exporting countries2 765 825 901 829 901 757 793 55 Africa 554 655 750 717 750 587 597 56 Oil-exporting countries3 133 156 152 154 152 142 132 57 All other4 240 318 459 451 459 463 413 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Algeria, Gabon, Libya, and Nigeria. 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. 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

A66 International Statistics • December 1982 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1982 1982 Transactions, and area or country 1980 1981 J O a c n t . . - Apr. May June July Aug.r Sept. Oct.P U.S. corporate securities STOCKS 1 Foreign purchases 40,298 40.672 30,643 2.359 2,622 2.166 2,707 3,183 4,463 5,966 2 Foreign sales 34,870 34,844 28,031 2.101 2,186 1,863 2,695 2,650 4,630 5,660 3 Net purchases, or sales (-) 5,427 5,827 2,613 258 436 303 12 532 -167 306 4 Foreign countries 5,409 5,803 2,562 252 429 299 6 530 -170 296 5 Europe 3,116 3,662 1,876 167 306 158 303 272 -262 190 6 France 492 900 -179 33 -48 -25 0 -7 -45 -30 7 Germany 169 -22 170 29 43 11 21 -12 -42 47 8 Netherlands -328 42 -59 -9 36 23 0 12 -61 -102 9 Switzerland 310 288 -541 -66 6 -85 -34 -53 -137 -118 10 United Kingdom 2,528 2.235 2,584 176 279 225 309 366 73 449 11 Canada 887 783 8 0 -10 2 -36 73 116 5 12 Latin America and Caribbean 148 -30 141 53 22 25 -69 121 -153 142 13 Middle East1 1,206 1.140 515 61 104 73 -137 101 137 -98 14 Other Asia 16 287 -78 -40 -21 39 -57 -43 -15 22 15 Africa - 1 7 -3 0 1 -3 1 1 1 0 16 Other countries 38 -46 103 12 27 6 0 5 6 35 17 Nonmonetary international and regional organizations 18 24 50 6 6 4 6 2 3 10 BONDS2 18 Foreign purchases 15,425 17.290 17,197 2,217 1,929 1,483 1,738 1,513 2,098 2,737 19 Foreign sales 9,964 12.247 15,692 1,485 1,199 1,153 1,630 1,760 2,312 2,949 20 Net purchases, or sales (-) 5,461 5,043 1,505 733 730 330 107 -247 -214 -212 21 Foreign countries 5,526 4,976 1,533 674 690 356 72 -111 -178 -253 22 Europe 1,576 1,356 2,007 540 704 244 187 -27 -349 379 23 France 129 11 124 20 46 23 5 -18 23 -16 24 Germany 212 848 2,067 396 500 115 256 106 87 190 25 Netherlands -65 70 35 14 11 5 -3 0 -10 -2 26 Switzerland 54 108 130 46 48 12 -22 32 -24 -4 27 United Kingdom 1,257 181 -418 59 91 67 -63 -109 -450 189 28 Canada 135 -12 20 46 23 21 1 4 5 -152 29 Latin America and Caribbean 185 132 140 -8 15 61 18 18 20 -15 30 Middle East1 3,499 3.465 -572 126 -112 22 -68 -78 193 -435 31 Other Asia 117 44 -51 -18 61 9 -66 -31 -52 -30 32 Africa 5 -1 -19 -13 0 0 0 0 0 0 33 Other countries 10 -7 8 1 0 -1 0 2 5 0 34 Nonmonetary international and regional organizations -65 66 -27 59 40 -26 35 -136 -36 41 Foreign securities 35 Stocks, net purchases, or sales (-) -2,136 -140 -309 -63 -115 79 44 11 -164 -311 36 Foreign purchases 7.893 9.262 5.449 385 486 619 452 532 547 701 37 Foreign sales 10,029 9,402 5,758 448 601 540 409 520 711 1,012 38 Bonds, net purchases, or sales (-) - 1,000 -5,446 -5,375 -40 461 -762 -614 -1,353 -996 - 1,295 39 Foreign purchases 17,084 17,549 24,237 2,255 2,755 2,033 2,293 3,279 3,258 3,058 40 Foreign sales 18.084 22,995 29,611 2,295 2,294 2,795 2,907 4,632 4,255 4,353 41 Net purchases, or sales (—), of stocks and bonds . -3,136 -5,586 -5,684 -103 346 -684 -571 -1,342 -1,160 -1,606 42 Foreign countries -4,013 -4,574 -4,474 -38 126 -305 -578 -1,144 -653 -1,214 43 Europe -1,108 -687 -1,239 -127 -40 -425 -21 -128 -184 -520 44 Canada -1,948 -3,698 -2.174 120 76 -81 -265 -678 -272 -179 45 Latin America and Caribbean 87 69 424 202 144 76 3 49 -44 -234 46 Asia -1,147 -295 -1.090 -215 -53 127 -303 -433 261 -284 47 Africa 24 -53 -17 - 17 - 1 0 3 17 1 0 48 Other countries 79 90 -379 0 - 1 -2 6 29 -416 3 49 Nonmonetary international and regional organizations 876 -1,012 -1,210 -65 219 -379 7 -198 -507 -392 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

Investment Transactions and Discount Rates A67 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1982 1982 Country or area 1980 1981 Jan.- Oct. Apr. May June July Aug. Sept. Oct.'' Holdings (end of period)1 1 Estimated total2 57,549 70,201 77,268 77,836 78,199 79,615 80,437 82,099 83,776 2 Foreign countries2 52,961 64,530 71,925 72,950 73,005 75,343 76,717 78,386 79,143 3 Europe2 24,468 23,976 26,393 26,021 25,738 26,442 27,717 28,790 28,983 4 Belgium-Luxembourg 77 543 709 340 152 155 576 551 834 5 Germany2 12,327 11,861 13,231 12,974 13,022 13,535 13,959 14,528 14,501 6 Netherlands 1,884 1,955 2,139 2,152 2,176 2,137 2,302 2,333 2,315 7 Sweden 595 643 662 655 652 650 644 640 650 8 Switzerland2 1,485 846 1,157 1,134 1,039 1,016 1,100 1,234 1,266 9 United Kingdom 7,323 6,709 6,737 6,811 6,674 6,922 7,124 7,345 7,210 10 Other Western Europe 777 1,419 1,757 1,954 2,023 2,028 2,012 2,160 2,207 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 449 514 473 506 410 446 353 434 488 13 Latin America and Caribbean 999 736 886 938 910 848 1,166 1,207 1,089 14 Venezuela 292 286 306 296 253 229 222 221 204 15 Other Latin America and Caribbean 285 319 383 437 432 402 611 774 660 16 Netherlands Antilles 421 131 196 204 224 217 333 211 225 17 Asia 26,112 38,671 43,750 45,060 45,516 47,179 47,165 47,734 48,344 18 Japan 9,479 10,780 11,381 11,396 11,137 11,289 11,247 11,394 11,380 19 Africa 919 631 403 405 405 405 305 180 180 20 All other 14 2 22 21 26 23 12 41 60 21 Nonmonetary international and regional organizations 4,588 5,671 5,343 4,886 5,194 4,272 3,720 3,713 4,633 22 International 4,548 5,637 5,278 4,822 5,123 4,167 3,629 3,519 4,378 23 Latin American regional 36 1 -4 -4 -4 -4 -4 -4 -4 Transactions (net purchases, or sales (-) during period) 24 Total2 6,066 12,652 13,575 1,474 568 362 1,416 822 1,663 1,677 25 Foreign countries2 6,906 11,568 14,613 1,674 1,025 54 2,338 1,374 1,669 757 26 Official institutions 3,865 11,694 12,452 812 1,474 318 2,792 367 1,580 611 27 Other foreign2 3,040 -127 2,161 862 -448 -264 -454 1,007 90 146 28 Nonmonetary international and regional organizations.. -843 1,085 -1,038 -200 -457 309 -922 -553 -8 920 MEMO: Oil-exporting countries 29 Middle East3 7,672 11,156 7,593 906 907 924 1,313 257 226 198 30 Africa4 327 -289 -452 2 2 0 0 -100 -125 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. 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Nov. 30, 1982 Rate on Nov. 30, 1982 Rate on Nov. 30, 1982 Country Country Country Per- Month Per- Month Percent effective cent effective cent Austria .. 5.75 Oct. 1982 France1 12.75 Nov. 1982 Norway 9.0 Belgium.. 11.5 Nov. 1982 Germany, Fed. Rep. of 6.0 Oct. 1982 Switzerland _ 5.0 Brazil 49.0 Mar. 1981 Italy 18.0 Aug. 1981 United Kingdom2 Canada .. 10.97 Nov. 1982 Japan 5.5 Dec. 1981 Venezuela 13.0 Denmark 10.0 Nov. 1980 Netherlands 5.5 Nov. 1982 1. As of the end of February 1981, the rate is that at which the Bank of France discounts or makes advances against eligible commercial paper and/or discounts Treasury bills for 7 to 10 days. government commercial banks or brokers. For countries with 2. Minimum lending rate suspended as of Aug. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • December 1982 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1982 CCoouunnttrryy,, oorr ttyyppee 11997799 11998800 11998811 May June July Aug. Sept. Oct. Nov. 1 Eurodollars 11.96 14.00 16.79 14.53 15.45 14.37 11.57 11.74 10.43 9.77 2 United Kingdom 13.60 16.59 13.86 13.31 12.96 12.35 11.08 10.84 9.74 9.30 3 Canada 11.91 13.12 18.84 15.46 16.84 16.23 14.76 13.57 12.14 11.08 4 Germany 6.64 9.45 12.05 9.12 9.22 9.41 8.94 8.13 7.55 7.24 5 Switzerland 2.04 5.79 9.15 3.80 5.39 4.32 4.07 3.97 3.66 3.76 6 Netherlands 9.33 10.60 11.52 8.62 8.75 8.95 8.66 7.85 7.09 6.36 7 France 9.44 12.18 15.28 16.17 15.67 14.64 14.43 14.09 13.51 12.98 8 Italy 11.85 17.50 19.98 20.59 20.51 20.18 19.52 18.56 18.57 19.05 9 Belgium 10.48 14.06 15.28 15.00 15.38 15.22 14.00 13.06 12.75 12.50 10 Japan 6.10 11.45 7.58 6.80 7.14 7.15 7.14 7.19 6.97 6.98 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 Currency units per dollar 1982 CCoouunnttrryy//ccuurrrreennccyy 11997799 11998800 11998811 June July Aug. Sept. Oct. Nov. 1 Argentina/peso n.a. n.a. n.a. 15025.00 19671.43 21172.73 25961.90 29487.50 39200.00 2 Australia/dollar1 111.77 114.00 114.95 103.23 101.09 97.83 95.820 94.35 94.27 3 Austria/schilling 13.387 12.945 15.948 17.114 17.342 17.431 17.597 17.797 17.947 4 Belgium/franc 29.342 29.237 37.194 6.183 47.029 47.483 48.300 49.103 49.600 5 Brazil/cruzeiro n.a. n.a. 92.374 167.70 177.97 188.25 201.73 215.34 228.51 6 Canada/dollar 1.1603 1.1693 1.1990 1.2756 1.2699 1.2452 1.2348 1.2301 1.2262 7 Chile/peso n.a. n.a. n.a. 43.373 47.228 54.941 62.643 66.770 69.050 8 China, P.R./yuan n.a. n.a. 1.7031 1.9014 1.9300 1.9432 1.9567 1.9887 2.0002 9 Colombia/peso n.a. n.a. n.a. 63.318 65.539 65.179 65.921 66.856 68.168 10 Denmark/krone 5.2622 5.6345 7.1350 8.3481 8.5402 8.6482 8.8038 8.9192 8.9595 11 Finland/markka 3.8886 3.7206 4.3128 4.6763 4.7278 4.7515 4.8014 5.3480 5.5263 12 France/franc 4.2566 4.2250 5.4396 6.5785 6.8560 6.9285 7.0649 7.1557 7.2152 13 Germany/deutsche mark 1.8342 1.8175 2.2631 2.4292 2.4662 2.4813 2.5055 2.5320 2.5543 14 Greece/drachma n.a. n.a. n.a. 67.795 69.434 70.165 70.946 71.948 72.889 15 Hong Kong/dollar n.a. n.a. 5.5678 5.8669 5.9025 6.0598 6.1253 6.6038 6.6724 16 India/rupee 8.1555 7.8866 8.6807 9.4668 9.5633 9.5741 9.6495 9.7005 9.7968 17 Indonesia/rupiah n.a. n.a. n.a. 654.98 659.18 662.11 662.75 670.31 680.92 18 Iran/rial n.a. n.a. 79.324 n.a. n.a. n.a. n.a. n.a. n.a. 19 Ireland/pound1 204.65 205.77 161.32 141.92 139.48 138.54 136.53 134.35 132.91 20 Israel/shekel n.a. n.a. n.a. 23.179 25.320 26.940 28.922 29.860 31.344 21 Italy/lira 831.10 856.20 1138.60 1358.43 1382.26 1392.60 1411.19 1439.94 1468.84 22 Japan/yen 219.02 226.63 220.63 251.20 255.03 259.04 263.29 271.61 264.09 23 Malaysia/ringgit 2.1721 2.1767 2.3048 2.3392 2.3554 2.3528 2.3610 2.3688 2.3647 24 Mexico/peso 22.816 22.968 24.547 47.716 48.594 90.187 101.86 108.83 130.61 25 Netherlands/guilder 2.0072 1.9875 2.4998 2.6848 2.7239 2.7295 2.7444 2.7608 2.7861 26 New Zealand/dollar1 102.23 97.34 86.848 74.951 73.990 73.217 72.419 71.431 71.092 27 Norway/krone 5.0650 4.9381 5.7430 6.1869 6.3557 6.6785 6.8999 7.1735 7.2397 28 Peru/sol n.a. n.a. n.a. 656.11 693.56 730.97 772.08 819.14 878.66 29 Philippines/peso n.a. n.a. 7.8113 8.4511 8.4802 8.5142 8.6521 8.7760 8.8733 30 Portugal/escudo 48.953 50.082 61.739 78.477 84.514 85.914 87.702 89.652 91.911 31 Singapore/dollar n.a. n.a. 2.1053 2.1379 2.1464 2.1594 2.1671 2.1984 2.2123 32 South Africa/rand/1 118.72 128.54 114.77 89.57 87.20 86.77 86.830 86.20 87.77 33 South Korea/won n.a. n.a. n.a. 738.30 743.06 744.45 743.61 743.65 745.60 34 Spain/peseta 67.158 71.758 92.396 109.215 111.57 112.079 113.049 115.20 119.09 35 Sri Lanka/rupee 15.570 16.167 18.967 20.750 20.895 20.895 20.918 20.898 21.009 36 Sweden/krona 4.2892 4.2309 5.0659 6.0244 6.1159 6.1441 6.2313 7.1543 7.5095 37 Switzerland/franc 1.6643 1.6772 1.9674 2.0789 2.0960 2.1119 2.1418 2.1736 2.1931 38 Thailand/baht n.a. n.a. 21.731 23.000 23.000 23.000 23.000 23.000 23.000 39 United Kingdom/pound1 212.24 232.58 202.43 175.63 173.54 172.50 171.20 169.62 163.21 40 Venezuela/bolivar n.a. n.a. 4.2781 4.2953 4.2951 4.2981 4.3006 4.2976 4.2996 MEMO: United States/dollar2 88.09 87.39 102.94 116.97 118.91 119.63 120.93 123.16 124.27 1. Value in U.S. cents. revised as of August 1978. For description and back data, see "Index of 2. 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 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 rr RReevviisseedd ((NNoottaattiioonn aappppeeaarrss oonn ccoolluummnn hheeaaddiinngg wwhheenn IIPPCCss IInnddiivviidduuaallss,, ppaarrttnneerrsshhiipp:s , and corporations aabboouutt hhaallff ooff tthhee ffiigguurreess iinn tthhaatt ccoolluummnn aarree cchhaannggeedd..)) RREEIITTss RReeaall eessttaattee iinnvveessttmmeenntt tt rusts ** AAmmoouunnttss iinnssiiggnniiffiiccaanntt iinn tteerrmmss ooff tthhee llaasstt ddeecciimmaall ppllaaccee RRPPss RReeppuurrcchhaassee aaggrreeeemmeennttss shown in the table (for example, less than 500,000 when SMSAs Standard metropolitan statistical areas 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 1982 A76 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1981 January 1982 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1981 April 1982 A78 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1982 July 1982 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1982 October 1982 A76 Commercial bank assets and liabilities, September 30, 1981 January 1982 A70 Commercial bank assets and liabilities, December 31, 1981 April 1982 A72 Commercial bank assets and liabilities, March 31, 1982 July 1982 A70 Commercial bank assets and liabilities, June 30, 1982 October 1982 A70 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 PRESTON MARTIN, 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 FRANK O'BRIEN, JR., Deputy Assistant to the Board EDWARD C. ETTIN, Deputy Staff Director ANTHONY F. COLE, Special Assistant to the Board MURRAY ALTMANN, Assistant to the Board WILLIAM R. JONES, Special Assistant to the Board STANLEY J. SIGEL, Assistant to the Board WILLIAM R. MALONI, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director MICHAEL BRADFIELD, General Counsel JOSEPH S. ZEISEL, Deputy Director ROBERT E. MANNION, Deputy General Counsel MICHAEL J. PRELL, Associate Director J. VIRGIL MATTINGLY, JR., Associate General Counsel JARED J. ENZLER, Senior Deputy Associate Director GILBERT T. SCHWARTZ, Associate General Counsel DONALD L. KOHN, Senior Deputy Associate Director RICHARD M. ASHTON, Assistant General Counsel ELEANOR J. STOCKWELL, Senior Deputy Associate Director NANCY P. JACKLIN, Assistant General Counsel HELMUT F. WENDEL, Deputy Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel MARTHA BETHEA, Assistant Director JOE M. CLEAVER, Assistant Director ROBERT M. FISHER, Assistant Director DAVID E. LINDSEY, Assistant Director OFFICE OF THE SECRETARY LAWRENCE SLIFMAN, Assistant Director FREDERICK M. STRUBLE, Assistant Director WILLIAM W. WILES, Secretary STEPHEN P. TAYLOR, Assistant Director BARBARA R. LOWREY, Associate Secretary PETER A. TINSLEY, Assistant Director JAMES MCAFEE, Associate Secretary LEVON H. GARABEDIAN, Assistant Director (Administration) DIVISION OF CONSUMER DIVISION OF INTERNATIONAL FINANCE AND COMMUNITY AFFAIRS EDWIN M. TRUMAN, Director ROBERT F. GEMMILL, Associate Director GRIFFITH L. GARWOOD, Director JERAULD C. KLUCKMAN, Associate Director CHARLES J. SIEGMAN, Associate Director GLENN E. LONEY, Assistant Director LARRY J. PROMISEL, Senior Deputy Associate Director DOLORES S. SMITH, Assistant Director DALE W. HENDERSON, Deputy Associate Director SAMUEL PIZER, Staff Adviser MICHAEL P. DOOLEY, Assistant Director RALPH W. SMITH, JR., Assistant Director DIVISION OF BANKING SUPERVISION AND REGULATION JOHN E. RYAN, Director FREDERICK R. DAHL, Associate Director DON E. KLINE, Associate Director WILLIAM TAYLOR, Associate Director JACK M. EGERTSON, Assistant Director ROBERT A. JACOBSEN, Assistant Director ROBERT S. PLOTKIN, Assistant Director THOMAS A. SIDMAN, Assistant Director SIDNEY M. SUSSAN, 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 JOHN M. DENKLER, Staff Director THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director JOSEPH W. DANIELS, SR., Director of Equal Employment Opportunity DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF DATA PROCESSING CLYDE H. FARNSWORTH, JR., Director LORIN S. MEEDER, Associate Director CHARLES L. HAMPTON, Director DAVID L. ROBINSON, Associate Director BRUCE M. BEARDSLEY, Deputy Director C. WILLIAM SCHLEICHER, JR., Associate Director ULYESS D. BLACK, Associate Director WALTER ALTHAUSEN, Assistant Director GLENN L. CUMMINS, Assistant Director CHARLES W. BENNETT, Assistant Director NEAL H. HILLERMAN, Assistant Director ANNE M. DEBEER, Assistant Director ELIZABETH A. JOHNSON, Assistant Director JACK DENNIS, JR., Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director RICHARD B. GREEN, Assistant Director ROBERT J. ZEMEL, Assistant Director EARL G. HAMILTON, Assistant Director ELLIOTT C. MCENTEE, Assistant Director DIVISION OF PERSONNEL DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller DIVISION OF SUPPORT SERVICES DONALD E. ANDERSON, Director ROBERT E. FRAZIER, Associate Director WALTER W. KREIMANN, Associate Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • December 1982 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman ANTHONY M. SOLOMON, Vice Chairman JOHN J. BALLES LYLE E. GRAMLEY J. CHARLES PARTEE ROBERT P. BLACK KAREN N. HORN EMMETT J. RICE WILLIAM F. FORD PRESTON MARTIN NANCY H. TEETERS HENRY C. WALLICH STEPHEN H. AXILROD, Staff Director RICHARD G. DAVIS, Associate Economist MURRAY ALTMANN, Secretary EDWARD C. ETTIN, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary MICHAEL W. KERAN, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary DONALD L. KOCH, Associate Economist MICHAEL BRADFIELD, General Counsel JAMES PARTHEMOS, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL J. PRELL, Associate Economist ROBERT E. MANNION, Assistant General Counsel CHARLES J. SIEGMAN, Associate Economist JAMES L. KICHLINE, Economist EDWIN M. TRUMAN, Associate Economist JOHN M. DAVIS, Associate Economist JOSEPH S. ZEISEL, 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 DONALD C. PLATTEN, Second District, President ROBERT M. SURDAM, Seventh District, Vice President WILLIAM S. EDGERLY, First District RONALD TERRY, Eighth District JOHN H. WALTHER, Third District CLARENCE G. FRAME, Ninth District JOHN G. MCCOY, Fourth District GORDON E. WELLS, Tenth District VINCENT C. BURKE, JR., Fifth District T. C. FROST, JR., Eleventh District ROBERT STRICKLAND, Sixth District JOSEPH J. PINOLA, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary CONSUMER ADVISORY COUNCIL CHARLOTTE H. SCOTT, Charlottesville, Virginia, Chairman MARGARET REILLY-PETRONE, Upper Montclair, New Jersey, Vice Chairman ARTHUR F. BOUTON, Little Rock, Arkansas SHIRLEY T. HOSOI, Los Angeles, California JULIA H. BOYD, Alexandria, Virginia GEORGE S. IRVIN, Denver, Colorado ELLEN BROADMAN, Washington, D.C. HARRY N. JACKSON, Minneapolis, Minnesota GERALD R. CHRISTENSEN, Salt Lake City, Utah F. THOMAS JUSTER, Ann Arbor, Michigan JOSEPH N. CUGINI, Westerly, Rhode Island ROBERT J. MCEWEN, S. J., Chestnut Hill, Massachusetts RICHARD S. D'AGOSTINO, Wilmington, Delaware STAN L. MULARZ, Chicago, Illinois SUSAN PIERSON DE WITT, Springfield, Illinois WILLIAM J. O'CONNOR, Buffalo, New York JOANNE S. FAULKNER, New Haven, Connecticut WILLARD P. OGBURN, Boston, Massachusetts MEREDITH FERNSTROM, New York, New York JANET J. RATHE, Portland, Oregon ALLEN J. FISHBEIN, Washington, D.C. RENE REIXACH, Rochester, New York E. C. A. FORSBERG, SR., Atlanta, Georgia PETER D. SCHELLIE, Washington, D.C. LUTHER R. GATLING, New York, New York NANCY Z. SPILLMAN, Los Angeles, California VERNARD W. HENLEY, Richmond, Virginia CLINTON WARNE, Cleveland, Ohio JUAN J. HINOJOSA, McAllen, Texas FREDERICK T. WEIMER, Chicago, Illinois 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 Jean A. Crockett Edward G. Boehne Robert M. Landis, Esq. Richard L. Smoot CLEVELAND* 44101 J. L. Jackson Karen N. Horn William H. Knoell William H. Hendricks Cincinnati 45201 Clifford R. Meyer Robert E. Showalter Pittsburgh 15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* 23219 Steven Muller Robert P. Black Paul E. Reichardt 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 William H. Martin, III Hiram J. Honea Jacksonville 32231 Copeland D. Newbern Charles D. East Miami 33152 Eugene E. Cohen Patrick K. Barron Nashville 37203 Cecelia Adkins Jeffrey J. Wells New Orleans 70161 Leslie B. Lampton James D. Hawkins CHICAGO* 60690 John Sagan Silas Keehn Stanton R. Cook Daniel M. Doyle Detroit 48231 Russell G. Mawby William C. Conrad ST. LOUIS 63166 Armand C. Stalnaker Lawrence K. Roos W. L. Hadley Griffin Donald W. Moriarty, Jr. Little Rock 72203 Richard V. Warner John F. Breen Louisville 40232 James F. Thompson Donald L. Henry Donald B. Weis Randall C. Sumner Memphis 38101 William G. Phillips E. Gerald Corrigan MINNEAPOLIS 55480 John B. Davis, Jr. Thomas E. Gainor Ernest B. Corrick Robert F. McNellis Helena 59601 Paul H. Henson Roger Guffey KANSAS CITY 64198 Doris M. Drury Henry R. Czerwinski James E. Nielson Wayne W. Martin D O e k n la v h e o r ma City 7 8 3 0 1 2 2 1 5 7 Christine H. Anthony William G. Evans Robert G. Lueder Robert D. Hamilton Omaha 68102 Gerald D. Hines Robert H. Boykin DALLAS 75222 John V. James William H. Wallace A. J. Losee Joel L. Koonce, Jr. E H l o P us a t s o o n 7 7 9 70 9 0 9 1 9 Jerome L. Howard J. Z. Rowe Lawrence L. Crum Thomas H. Robertson San Antonio 78295 Caroline L. Ahmanson John J. Balles SAN FRANCISCO 94120 Alan C. Furth John B. Williams Bruce M. Schwaegler Richard C. Dunn Los Angeles 90051 John C. Hampton Angelo S. Carella Portland 97208 Wendell J. Ashton A. Grant Holman Salt Lake City 84130 John W. Ellis Gerald R. Kelly Seattle 98124 *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- each. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp. TIONS. 1974. 125 pp. Each volume $1.00; 10 or more to one address, $.85 ANNUAL REPORT. each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or OPEN MARKET POLICIES AND OPERATING PROCEDURES— $2.00 each in the United States, its possessions, Canada, STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to and Mexico; 10 or more of same issue to one address, one address, $1.75 each. $18.00 per year or $1.75 each. Elsewhere, $24.00 per REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHAyear or $2.50 each. NISM. Vol. 1. 1971. 276 pp. Vol 2. 1971. 173 pp. Vol. 3. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint 1972. 220 pp. Each volume $3.00; 10 or more to one of Part I only) 1976. 682 pp. $5.00. address", $2.50 each. BANKING AND MONETARY STATISTICS, 1941-1970. 1976. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- 1,168 pp. $15.00. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 ANNUAL STATISTICAL DIGEST pp. Cloth ed. $5.00 each; 10 or more to one address, 1971-75. 1976. 339 pp. $5.00 per copy. $4.50 each. Paper ed. $4.00 each; 10 or more to one 1972-76. 1977. 377 pp. $10.00 per copy. address, $3.60 each. 1973-77. 1978. 361 pp. $12.00 per copy. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1974-78. 1980. 305 pp. $10.00 per copy. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1970-79. 1981. 587 pp. $20.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1980. 1981. 241 pp. $10.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1981. 1982. 239 pp. $6.50 per copy. 1973. 271 pp. $3.50 each; 10 or more to one address, FEDERAL RESERVE CHART BOOK. Issued four times a year in $3.00 each. February, May, August, and November. Subscription IMPROVING THE MONETARY AGGREGATES: REPORT OF THE includes one issue of Historical Chart Book. $7.00 per ADVISORY COMMITTEE ON MONETARY STATISTICS. year or $2.00 each in the United States, its possessions, 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 Canada, and Mexico. Elsewhere, $10.00 per year or each. $3.00 each. ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- Regulation Z) Vol. I (Regular Transactions). 1969. 100 tion to Federal Reserve Chart Book includes one issue. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each $1.25 each in the United States, its possessions, Canada, volume $1.00; 10 or more of same volume to one and Mexico; 10 or more to one address, $1.00 each. address, $.85 each. Elsewhere, $1.50 each. FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in address, $1.50 each. the United States, its possessions, Canada, and Mexico; THE BANK HOLDING COMPANY MOVEMENT TO 1978: A 10 or more of same issue to one address, $13.50 per COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to year or $.35 each. Elsewhere, $20.00 per year or $.50 one address, $2.25 each. each. IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. THE FEDERAL RESERVE ACT, as amended through December 1978. 170 pp. $4.00 each; 10 or more to one address, 1976, with an appendix containing provisions of certain $3.75 each. other statutes affecting the Federal Reserve System. 307 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. pp. $2.50. FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- each; 10 or more to one address, $1.50 each. ERAL RESERVE SYSTEM. INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 10 or more to one address, $1.25 each. pp. $1.00 each; 10 or more to one address, $.85 each. PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY $13.50 each. OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- 48 pp. $.25 each; 10 or more to one address, $.20 each. SERVE STAFF STUDY, 1981. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: ERNMENT SECURITIES MARKET; STAFF STUDIES—PART REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 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- STAFF STUDIES: Summaries Only Printed in the ed at least monthly. (Requests must be prepaid.) Bulletin Consumer and Community Affairs Handbook. $60.00 per Studies and papers on economic and financial subjects year. that are of general interest. Requests to obtain single copies Monetary Policy and Reserve Requirements Handbook. of the full text or to be added to the mailing list for the series $60.00 per year. may be sent to Publications Services. Securities Credit Transactions Handbook. $60.00 per year. Federal Reserve Regulatory Service. 3 vols. (Contains all BELOW THE BOTTOM LINE: THE USE OF CONTINGENCIES three Handbooks plus substantial additional material.) AND COMMITMENTS BY COMMERCIAL BANKS, by Benja- $175.00 per year. min Wolkowitz and others. Jan. 1982. 186 pp. Rates for subscribers outside the United States are as MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON follows and include additional air mail costs: COMPETITION AND PERFORMANCE IN BANKING MAR- Federal Reserve Regulatory Service, $225.00 per year. KETS, by Timothy J. Curry and John T. Rose. Jan. 1982. Each Handbook, $75.00 per year. 9 pp. WELCOME TO THE FEDERAL RESERVE, December 1980. COSTS, SCALE ECONOMIES, COMPETITION, AND PRODUCT PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- MIX IN THE U.S. PAYMENTS MECHANISM, by David B. CATIONS Humphrey. Apr. 1982. 18 pp. DIVISIA MONETARY AGGREGATES: COMPILATION, DATA, CONSUMER EDUCATION PAMPHLETS AND HISTORICAL BEHAVIOR, by William A. Barnett and Short pamphlets suitable for classroom use. Multiple Paul A. Spindt. May 1982. 82 pp. copies available without charge. THE COMMUNITY REINVESTMENT ACT AND CREDIT ALLO- CATION, by Glenn Canner. June 1982. 8 pp. Alice in Debitland INTEREST RATES AND TERMS ON CONSTRUCTION LOANS AT Consumer Handbook to Credit Protection Laws COMMERCIAL BANKS, by David F. Seiders. July 1982. The Equal Credit Opportunity Act and . . . Age 14 pp. The Equal Credit Opportunity Act and . . . Credit Rights in STRUCTURE-PERFORMANCE STUDIES IN BANKING: AN UP- Housing DATED SUMMARY AND EVALUATION, by Stephen A. The Equal Credit Opportunity Act and . . . Doctors, Law- Rhoades. Aug. 1982. 15 pp. yers, Small Retailers, and Others Who May Provide FOREIGN SUBSIDIARIES OF U.S. BANKING ORGANIZATIONS, Incidental Credit by James V. Houpt and Michael G. Martinson. Oct. The Equal Credit Opportunity Act and . . . Women 1982. 18 pp. Fair Credit Billing REDLINING: RESEARCH AND FEDERAL LEGISLATIVE RE- Federal Reserve Glossary SPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. Guide to Federal Reserve Regulations How to File A Consumer Credit Complaint If You Borrow To Buy Stock If You Use A Credit Card REPRINTS Most of the articles reprinted do not exceed 12 pages. Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System The Federal Open Market Committee Perspectives on Personal Saving. 8/80. Federal Reserve Bank Board of Directors The Impact of Rising Oil Prices on the Major Foreign Federal Reserve Banks Industrial Countries. 10/80. Monetary Control Act of 1980 Federal Reserve and the Payments System: Upgrading Elec- Organization and Advisory Committees tronic Capabilities for the 1980s. 2/81. Truth in Leasing Survey of Finance Companies, 1980. 5/81. U.S. Currency Bank Lending in Developing Countries. 9/81. U.S. International Transactions in 1981. 4/82. What Truth in Lending Means to You The Commercial Paper Market since the Mid-Seventies. 6/82. Applying the Theory of Probable Future Competition. 9/82. International Banking Facilities. 10/82. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES- BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM1 Approximate Date or period Weekly Releases release days to which data refer Aggregate Reserves of Depository Institutions and Monetary Base. Monday Week ended previous H.3 (502) [1.22] Wednesday Actions of the Board; Applications and Reports. H.2 (501) Friday Week ended previous Saturday Assets and Liabilities of Domestically Chartered and Foreign Related Wednesday Wednesday, 2 weeks earlier Banking Institutions. H.8 (510) [1.25] Changes in State Member Banks. K.3 (615) Tuesday Week ended previous Saturday Factors Affecting Reserves of Depository Institutions and Condition Friday Week ended previous Statement of Federal Reserve Banks. H.4.1 (503) [1.11] Wednesday Foreign Exchange Rates. H.10 (512) [3.28] Monday Week ended previous Friday Money Stock Measures and Liquid Assets. H.6 (508) [1.21] Friday Week ended Wednesday of of previous week Selected Borrowings in Immediately Available Funds of Large Thursday Week ended Thursday of Member Banks. H.5 (507) [1.13] previous week Selected Interest Rates. H. 15 (519) [ 1.35] Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Banks Friday Wednesday, 1 week earlier and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.27, 1.28, 1.29, 1.291] Weekly Report of Assets and Liabilities of International Banking Monday Wednesday, 2 weeks earlier Facilities. H. 14 (518) Weekly Summary of Reserves and Interest Rates. H.9 (511) Friday Week ended previous Wednesday; and week ended Wednesday of previous week Monthly Releases Capacity Utilization: Manufacturing and Materials. G.3 (402) [2.11] Mid month Previous month Changes in Status of Banks and Branches. G.4.5 (404) 25th of month Previous month Commercial and Industrial Loans to U.S. Addressees Excluding 2nd Monday of Last Wednesday of previous Bankers' Acceptances and Commercial Paper by Industry. G.27 month month (429) [1.30] Consumer Installment Credit. G.19 (421) [1.56, 1.57] 5th working day of 2nd month previous month Debits and Deposit Turnover at Commercial Banks. G.6 (406) [1.20] 25th of month Previous month Finance Companies. G.20 (422) [1.52, 1.53] 5th working day of 2nd month previous month Foreign Exchange Rates. G.5 (405) [3.28] 1st of month Previous month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The BULLETIN table that reports these data is designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Approximate Date or period Monthly Releases—Continued release days to which data refer Industrial Production. G. 12.3 (414) [2.13] Mid month Previous month Loan Commitments at Selected Large Commercial Banks. G.21 (423) 20th of month 2nd month previous Loans and Securities at all Commercial Banks. G.7 (407) [1.23] 20th of month Previous month Major Nondeposit Funds of Commercial Banks. G. 10 (411) [1.24] 20th of month Previous month Maturity Distribution of Outstanding Negotiable Time Certificates of 24th of month Last Wednesday of previous Deposit. G.9 (410) month Research Library—Recent Acquisitions. G.15 (417) 1st of month Previous month Selected Interest Rates. G.13 (415) [1.35] 3rd working day of Previous month month Summary of Equity Security Transactions. G. 16 (418) Last week of Release date month Quarterly Releases Agricultural Finance Databook. E.15 (125) End of March, January, April, July, and June, September, October and December Automobile Credit. E.4 (114) 4th of April, July, Previous quarter October, and January Finance Rates and Other Terms on Selected Types of Consumer 25th of January, 2nd month previous Installment Credit Extended by Major Finance Companies. E.10 April, July, and (120) October Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) [1.58, 15th of February, Previous quarter 1.59] May, August, and November Geographical Distribution of Assets and Liabilities of Major Foreign 15th of March, Previous quarter Branches of U.S. Banks. E.ll (121) June, September, and December Survey of Terms of Bank Lending. E.2 (111) [1.34] 15th of March, February, May, August, and June, November September, and December Semiannual Releases Domestic Offices, Commercial Bank Assets and Liabilities May and End of previous December November and June Consolidated Report of Condition. E.3.4 (113) [1.26, 1.27, 1.28] February and July Previous 6 months Check Collection Services—Federal Reserve System. E.9 (119) May and End of previous December Country Exposure Lending Survey. E. 16 (126) November and June List of OTC Margin Stocks. E.7 (117) February, June Release date and October Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Approximate Date or period Annual Releases release days to which data refer Aggregate Summaries of Annual Surveys of Security Credit February End of previous June Extension. C.2 (101) Bank Holding Companies and Subsidiary Banks, March Previous year (Domestic and Foreign). C.6 (105) Bank Holding Companies and Subsidiary March Previous year Banks (Domestic only). C.5 (104) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Index to Statistical Tables References are to pages A3 through A68 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers, 11, 26, 28 Demand deposits—Continued Agricultural loans, commercial banks, 19, 20, 21, 27 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 25 Banks, by classes, 18, 19-22 Turnover, 15 Domestic finance companies, 39 Depository institutions Federal Reserve Banks, 12 Reserve requirements, 8 Foreign banks, U.S. branches and agencies, 23 Reserves and related items, 3, 4, 5, 13 Nonfinancial corporations, 38 Deposits (See also specific types) Savings institutions, 30 Banks, by classes, 3, 18, 19-22, 30 Automobiles Federal Reserve Banks, 4, 12 Consumer installment credit, 42, 43 Turnover, 15 Production, 48, 49 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) Discounts and advances by Reserve Banks (See BANKERS balances, 18, 19-21 (See also Foreigners) Loans) Banks for Cooperatives, 35 Dividends, corporate, 37 Bonds (See also U.S. government securities) New issues, 36 Rates, 3 EMPLOYMENT, 46, 47 Branch banks, 16, 22-23, 56 Eurodollars, 28 Business activity, nonfinancial, 46 Business expenditures on new plant and equipment, 38 Business loans (See Commercial and industrial loans) FARM mortgage loans, 41 Federal agency obligations, 4, 11, 12, 13, 34 Federal credit agencies, 35 CAPACITY utilization, 46 Federal finance Capital accounts Debt subject to statutory limitation and types and Banks, by classes, 18 ownership of gross debt, 33 Federal Reserve Banks, 12 Receipts and outlays, 31, 32 Central banks, 67 Treasury financing of surplus, or deficit, 31 Certificates of deposit, 22, 28 Treasury operating balance, 31 Commercial and industrial loans Federal Financing Bank, 31, 35 Commercial banks, 16, 18, 23, 27 Federal funds, 3, 6, 19, 20, 21, 28, 31 Weekly reporting banks, 19-23, 24 Federal Home Loan Banks, 35 Commercial banks Federal Home Loan Mortgage Corporation, 35, 40, 41 Assets and liabilities, 18, 19-22 Federal Housing Administration, 35, 40, 41 Business loans, 27 Federal Intermediate Credit Banks, 35 Commercial and industrial loans, 16, 18, 23, 24, 27 Federal Land Banks, 35, 41 Consumer loans held, by type, 42, 43 Federal National Mortgage Association, 35, 40, 41 Loans sold outright, 22 Federal Reserve Banks Nondeposit funds, 17 Condition statement, 12 Number, by classes, 18 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 41 U.S. government securities held, 4, 12, 13, 33 Time and savings deposits, 3 Federal Reserve credit, 4, 5, 12, 13 Commercial paper, 3, 26, 28, 39 Federal Reserve notes, 12 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 35 Construction, 46, 50 Finance companies Consumer installment credit, 42, 43 Assets and liabilities, 39 Consumer prices, 46, 51 Business credit, 39 Consumption expenditures, 52, 53 Loans, 19, 20, 21, 42, 43 Corporations Paper, 26, 28 Profits and their distribution, 37 Financial institutions Security issues, 36, 66 Loans to, 19, 20, 21 Cost of living (See Consumer prices) Selected assets and liabilities, 30 Credit unions, 30, 42, 43 Float, 4 (See also Thrift institutions) Flow of funds, 44, 45 Currency and coin, 5, 18 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 14 agencies, 23 Customer credit, stock market, 29 Foreign currency operations, 12 Foreign deposits in U.S. banks, 4, 12, 19, 20, 21 DEBITS to deposit accounts, 15 Foreign exchange rates, 68 Debt (See specific types of debt or securities) Foreign trade, 55 Demand deposits Foreigners Adjusted, commercial banks, 15 Claims on, 56, 58, 61, 62, 63, 65 Banks, by classes, 18, 19-22 Liabilities to, 22, 55, 56-60, 64, 66, 67 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 GOLD REAL estate loans Certificate account, 12 Banks, by classes, 19-21, 41 Stock, 4, 55 Rates, terms, yields, and activity, 3, 40 Government National Mortgage Association, 35, 40, 41 Savings institutions, 28 Gross national product, 52, 53 Type of holder and property mortgaged, 41 Repurchase agreements and federal funds, 6, 19, 20, 21 HOUSING, new and existing units, 50 Reserve requirements, 8 Reserves INCOME, personal and national, 46, 52, 53 Commercial banks, 18 Industrial production, 46, 48 Depository institutions, 3, 4, '5, 13 Installment loans, 42, 43 Federal Reserve Banks, 12 Insurance companies, 30, 33, 41 U.S. reserve assets, 55 Interbank loans and deposits, 18 Residential mortgage loans, 40 Interest rates Retail credit and retail sales, 42, 43, 46 Bonds, 3 Business loans of banks, 27 SAVING Federal Reserve Banks, 3, 7 Flow of funds, 44, 45 Foreign central banks and foreign countries, 67 National income accounts, 53 Money and capital markets, 3, 28 Savings and loan assns., 9, 30, 41, 42, 43, 44 Mortgages, 3, 40 (See also Thrift institutions) Prime rate, commercial banks, 27 Savings deposits (See Time and savings deposits) Time and savings deposits, 9 Securities (See specific types) International banking facilities, 17 Federal and federally sponsored credit agencies, 35 International capital transactions of United States, 54-67 Foreign transactions, 66 International organizations, 58, 59-61, 64-67 New issues, 36 Inventories, 52 Prices, 29 Investment companies, issues and assets, 37 Special drawing rights, 4, 12, 54, 55 Investments (See also specific types) State and local governments Banks, by classes, 18, 30 Deposits, 19, 20, 21 Commercial banks, 3, 16, 18, 19-21 Holdings of U.S. government securities, 33 Federal Reserve Banks, 12, 13 New security issues, 36 Savings institutions, 30, 41 Ownership of securities issued by, 19, 20, 21, 30 Rates on securities, 3 LABOR force, 47 Stock market, 29 Life insurance companies (See Insurance Stocks (See also Securities) companies) New issues, 36 Loans (See also specific types) Prices, 29 Banks, by classes, 18, 19-22 Commercial banks, 3, 16, 18, 19-22, 23, 27 TAX receipts, federal, 32 Federal Reserve Banks, 3, 4, 5, 7, 12, 13 Thrift institutions, 3 (See also Credit unions, Insured or guaranteed by United States, 40, 41 Mutual savings banks, and Savings and loan Savings institutions, 30, 41 associations) Time and savings deposits, 3, 9, 15, 18, 19-22 MANUFACTURING Trade, foreign, 55 Capacity utilization, 46 Treasury currency, Treasury cash, 4 Production, 46, 49 Treasury deposits, 4, 12, 31 Margin requirements, 29 Treasury operating balance, 31 Member banks (See also Depository institutions) Federal funds and repurchase agreements, 6 Reserve requirements, 8 UNEMPLOYMENT, 47 Mining production, 49 U.S. government balances Mobile home shipments, 50 Commercial bank holdings, 19, 20, 21 Monetary and credit aggregates, 3, 13 Treasury deposits at Reserve Banks, 4, 12, 31 Money and capital market rates (See Interest U.S. government securities rates) Bank holdings, 18, 19-21, 33 Money stock measures and components, 3, 14 Dealer transactions, positions, and financing, 34 Mortgages (See Real estate loans) Federal Reserve Bank holdings, 4, 12, 13, 33 Mutual funds (See Investment companies) Foreign and international holdings and transactions, 12, Mutual savings banks, 9, 19-21, 30, 33, 41, 42, 43 33, 67 (See also Thrift institutions) Open market transactions, 11 Outstanding, by type and ownership, 33 NATIONAL defense outlays, 32 Ownership of securities issued by, 30 National income, 52 Rates, 3, 28 U.S. international transactions, 54-67 OPEN market transactions, 11 Utilities, production, 49 PERSONAL income, 53 VETERANS Administration, 40, 41 Prices Consumer and producer, 46, 51 Stock market, 29 WEEKLY reporting banks, 19-24 Prime rate, commercial banks, 27 Wholesale (producer) prices, 46, 51 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

A81 Index to Volume 68 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Issue Text Other ('A' " pages) Issue Text Other ('A' ' pages) Index to Index to Total tables Total tables January ... 1-76 1-88 86-87 July 393-442 1-88 86-87 February . 77-124 1-80 76-77 August.... 443-526 1-78 76-77 March 125-206 1-80 76-77 September 527-564 1-78 76-77 April 207-280 1-90 88-89 October ... 565-680 1-88 86-87 May 281-326 1-78 76-77 November 681-724 1-78 76-77 June 327-392 1-82 79-80 December 725-802 1-96 79-80 (The "A" pages referred to in this index are in the December issue. For special tables published during 1982, see list on p. A69 of this issue.) Pages Pages ACKER, Duane, elected Class B director, Kansas City . 275 BAILEY, Edgar H., appointed director, Memphis Agriculture Branch 274 Food and agricultural situation, article on perspec- Balides, Paul, article 1 tives 1 Ballard, William C., Jr., appointed director, Louisville Allison, Theodore E. Branch 274 Delayed funds availability, statement 178 Bank acquisitions, mergers, or consolidations, proposed Annual Report to Congress (See Publications) Board policy statement 188 Annual Statistical Digest (See Publications) Bank Control Act, change in, expansion of delegated Articles authority of General Counsel, amendment of Rules Bank holding companies, financial developments in Regarding Delegation of Authority 711 1981 335 Bank for International Settlements 538 Banking Affiliates Act of 1982: Amendments to Sec- Bank holding companies (For orders issued to individual tion 23A of Federal Reserve Act 693 companies under the Bank Holding Company Act, Banking structure, 1970-81 77 see Bank Holding Company Act) Commercial paper market since mid-seventies 327 Applications, new pamphlet 759 Federal Reserve System pricing, report 467 Capital adequacy Financial innovation and monetary policy 393 Criteria for applying to mandatory convertible is- Food and agricultural situation, perspectives 1 sues, adoption and revision 361, 626 Foreign exchange operations of Treasury and Federal Guidelines, issuance by Comptroller of Currency Reserve (See Foreign exchange operations) and Federal Reserve 33 Industrial development bonds 135 Financial developments in 1981, article 335 Industrial production in recession 681 Investments in nonvoting shares of other holding Insured commercial banks, profitability 453 companies or banks, Board policy statement 413 International banking facilities 565 Multibank companies, staff study on competition and Monetary policy, money supply, and Federal Re- performance in banking markets 26 serve's operating procedures, paper 13 Nonbanking activities, proposed 303 Monetary policy, remarks excerpted from informal Regulation Y (See Regulations) talk 691 Theory of probable future competition, article on Mortgage and consumer credit markets 281 applying 527 Statements and reports to Congress (See Statements Bank Holding Company Act to Congress) Orders issued under Theory of probable future competition 527 Abanc Holding, Inc 797 Thrift institutions 725 ABC Bancshares, Inc 257 U.S. international transactions in 1981 207 A.B.T. Corporation 257 Ashton, Richard M., appointed Assistant General Coun- Addison Bancshares, Inc 718 sel for Litigation and Enforcement 304 Affiliated Bankshares of Colorado, Inc 557, 676 Automated clearinghouses (See Clearinghouses) Aktivbanken A/S, et al 238 Axilrod, Stephen H. Alamo Corporation of Texas 797 Debt management, statement 219 Alden Bancshares, Inc 320 Monetary policy, money supply, and Federal Re- Allied Bancshares, Inc 71, 201, 557 serve's operating procedures, paper 13 Allied Bancshares of Illinois, Inc 257 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin • December 1982 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Allied Irving Bancshares, Inc 557 Beecher Bancorp, Inc 718 Alpine Bancorp, Inc 797 Belfield Bancshares, Inc 676 Amarillo National Bancorp, Inc 201, 385 Benbrook Bancshares, Inc 257 Ameribanc, Inc 320 Beverly Bankshares, Inc 386 American Bancorp of Nevada 434 Biggsville Financial Corporation 72 American Bancorporation Holding Company 320 Big Lake Bancshares, Inc 72 American Bancorporation, Inc 797 Birnamwood Bancshares, Inc 558 American Banking Corporation 718 BNW Bancorp 257 American Commerce Bancshares, Inc 797 B.O.A. Bancshares, Inc 676 American Eagle Holding Corporation 320 Boatmen's Bancshares, Inc 386 American Heritage Bancorp, Inc 676 Bonneville Bancorp 386 American, Inc 438 Borger First Corporation 386 American Interstate Bancshares, Inc 434 BOS Bancshares, Inc 558 American Security Bancshares Inc 557 Boulevard Bancorp, Inc 72, 435 Americana Bancorporation of Alden, Inc 522 Bowbells Holding Company 257 Americana Bancorporation of Danube, Inc 434 Bradley Bancshares, Inc 257 Americo Bancshares, Inc 385 Brady National Holding AmeriTrust Corporation 434 Company, Inc 257 Amoret Bancshares, Inc 435 Bridgeport Banshares, Inc 558 AmSouth Bancorporation 522, 557 Brighton Bancshares, Inc 120 Amsterdam Bancshares, Inc 557 Brinkley Bancshares, Inc 72 Andrew Johnson Bancshares, Inc 385 Broad National Bancorporation 256 Andrews Financial Corporation 522 Broadway Bancshares, Inc 256 Antioch Holding Company 558 Bryant Bancshares, Inc 798 APSB Bancorp 718 BSD Bancorp, Inc 201,386,435 Area Financial Corp 320 Buffalo Bancorporation, Inc 201 Argyle Financial Services, Inc 201 Buhl Bancorporation, Inc 72 Ashby Bancshares, Inc 676 Bunceton Bancshares, Inc 796 Associated Banc-Corp 385 Bushnell Bancorp 389 Associated Bank Shares Corporation 797 Cairo Bancshares, Inc 321 Atlantic Bancorporation 796 Cal Coast Bancorp 558 Azle Bancorp 201 Caldwell Bancshares, Inc 386 Baldy Bancshares, Inc 321 Cambria State Bankshares, Inc 522 Ballerton Corporation 256 Camp Grove Bancorp, Inc 120 Banc of San Jacinto County Bancshares, Inc 558 Canadian Bancshares, Inc 718 Banca Commerciale Italiana 423 Canadian Commercial Bank 321 Bancap, Inc 797 Caneyville Bancshares, Inc 325 Banco de Colombia, S.A. (Colombia) 114 Capital Bancorp 257 Banco de Colombia, S.A. (Panama) 114 Capitol Bancorporation, Inc 558 Bancomer, S.A 115 Caprock Bancshares, Inc 435 Bancomer Holding Companies (Antilles) N.V. ... 115 Carbondale Bancshares, Inc 321 Bancomer Holding Company [California] 115 Carolina Bancorp, Inc 201 Bancomer Holding Company Carter Bancshares, Inc 257 (Netherlands) B.V 115 Carthage Bancshares, Inc 558 Bancorp of Mississippi, Inc 321 Carver County Bancshares, Inc 798 Bancorp of Northwestern Indiana 386 CB&T, Inc 435 BancSouth, Inc 718 CBC Bancorp, Ltd 257 BankAmerica Corporation 248, 647 CBC, Inc 72 Bankcore, Inc 522 C.C.B. Bancorp 321 BankEast Corporation 116,379,650 C.C.B. Inc 558, 676 Bankers Trust New York Corporation 651 Cedar Bancorp 120 Bank of New England Corporation 711 Cedar Valley Bankshares, Ltd 676 Bank of Poplar Bluff Bancshares, Inc 72, 718 Celeste Bancshares, Inc 558 Bank of Virginia Company 798 Centerre Bancorporation 320 Bank Sales Department, Inc 385 Central Bancorporation, Inc 558, 676, 789 Bank Securities, Inc 119 Central Bancshares, Inc 558 Bank South Corporation 72 Central Capital Corporation 321 Banks County Financial Corporation 120 Central Colorado Company 558, 676 Banks of Iowa, Inc 201 Central Dakota Bank Holding Company 718 Barnett Banks of Florida, Inc 190, 385 Central Fidelity Banks, Inc 677 Basin Bancorp Inc 386 Central Financial Corporation 321 Bay Bankshares, Inc 321 Central Illinois Banc Shares, Inc 72 Bay-Hermann Bancshares, Inc 257 Central Lakes Bancorporation, Inc 718 Beacon Financial Corporation, Inc 257 Central of Illinois, Inc 257, 718 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 68 A83 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Central Pacific Corporation 382 Cook Investment, Inc 796 Central Wisconsin Bankshares, Inc 558 Corporate Bankshares, Inc 201 Century Bancorp, Inc 435 Coulee Bancshares, Inc 257 Century Bank Shares 677 Country Bancshares, Inc 257 Ceylon Bancorporation, Inc 435 Country Bank Company 257 Charter Bancorporation, Inc 558 Credit Lyonnais 432 CharterCorp 718, 798 Crete Bancorporation, Inc 523 Chase Manhattan Corporation 120, 383 Cripple Creek Bancorporation, Inc 676 Chebelle Corporation 201 Crookston Financial Services, Inc 201 Chemical Financial Corporation 435 Crowley Holding Company 321 Chemical New York Corporation 522 Crown Bancshares, Inc 435 Chicago Heights Bancorp, Inc 257 C.S.B. Corporation 798 Chillicothe Bancshares, Inc 558 Cullen/Frost Bankers, Inc 258, 321, 523 Chisago Bancorporation, Inc 386 Dacotah Bank Holding Co 436 Citadel Bankshares, Inc 718 Dairy State Financial Services 258 Citicorp 249, 251, 499, 505, 524, 656, 776 Dairyland State Bancorporation, Inc 798 Citizens and Southern Georgia Corporation . 523, 563 Dakota Bankshares, Inc 320 Citizens Bancorp 435 Dale Bancorp, Inc 719 Citizens Ban-Corporation 718 Dallas Guaranty Bancshares, Inc 677 Citizens Bancorporation of Milaca, Inc 72 Dawson Springs Bancorp, Inc 798 Citizens Bank Holding Company 677 DeKalb Bancorp 523 Citizens Bank Services, Inc 718 DeKalb Bancshares, Inc 120, 321, 523 Citizens Commerce Corporation 523 DeKalb County Bancshares, Inc 321 Citizens First Bancorp, Inc 435 Delaware Bancshares, Inc 386 Citizens Holding Company 386 DetroitBank Corporation 258, 523 Citizens National Corporation 261 Deutsche Bank, AG 122, 261 Citizens' National Corporation 523 Dewey County Bancorporation Inc 258 Citizens State Financial Corporation 798 Dickey County Bancorporation 115 Citizens Union Bancorp of Shelbyville, Inc 386 Dixie Bancshares, Corp 436 City Bancorp Inc 558 Drew Bancshares, Inc 719 City National Corporation 62 Dunlap Iowa Holding Co 558 City Savings Bancshares, Inc 718 Early Bankshares, Inc 436 Clare Bancorporation 718 Earners and Savers Bancorporation 258 Clark County Bancshares, Inc 558 East Central Holding Company 525 Clay County Bancshares, Inc 798 Eastern Iowa Secured Bancshares Corporation ... 558 Climbing Hill Bancshares, Inc 122 East-Tex Bancorp, Inc 436 Cloud County Bancshares, Inc 718 Eaton Capital Corporation 801 CNB Capital Corp 719 Edens Bancshares, Inc 386 CNB Financial Corporation 386 Edmondton Bancshares, Inc 559 CNCC Partners 48 Eitzen Independents, Inc 798 Coleman Bancshares, Inc 386 El Campo Bancshares, Inc 202 Collins ville Bancorp, Inc 325 Elgin State Bancorp, Inc 436 Colonial Bancshares, Inc 558 Elk City State Bancshares, Inc 436 Colonial Bancshares of Greenville, Inc 321 Ellettsville Bancshares, Inc 120 Colonial Capital Corporation 525 Ellis Banking Corporation 426, 717 Colorado National Bankshares, Inc 435, 553 Emery Security Bancorporation 798 Colorado River Bancorp 435 Em Kay Financing Corp 554 Columbia Bancshares, Inc 386 Em Kay Holding Corp 554 Columbia Bancshares, Inc 677 Emmons Agency, Inc 122 Columbus Corporation 558 England Bancorp 258 Commerce Bancshares, Inc 201,435 English Valley Bancshares, Inc 386 Commercial Bancshares, Inc 386 Essex Iowa Bancorporation, Inc 677 Commercial Bancshares, Inc 558 European American Bancorp 524 Commercial Bankshares, Inc 798 Evansville Bancshares, Inc 386 Commercial Bankstock, Inc 798 Exchange Bancorporation, Inc 200 Commercial National Corporation 201 Exchange Financial Corporation 321 Community Bancorporation, Inc 435, 796 Exchange State Corp 258 Community Bancshares, Inc 72, 257 F & M Shares Corp 120 Community Banks, Inc 523 F & M Holding Company, Inc 72 Community Bankshares, Inc 321 F & M National Corporation 73 Community Corporation 798 Fairfield Bancshares, Inc 258 Community Financial Services 72 Fairmont Bancorp, Inc 798 Conifer Group Inc 201 Falkner Capital Corporation 719 Continental Illinois Corporation 256, 320 Far-Mer Bankshares, Inc 202 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • December 1982 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Farmers & Merchants Bancshares, Inc 559 First Hartford Bancshares, Inc 719 Farmers and Merchants Financial Services, Inc. . 386 First Harvey Banc Corporation 258 Farmers Bancorp, Inc 523 First Hogansville Bankshares, Inc 559 Farmers National Bancorp 321 First Holmes Corporation 73 Farmers State Corporation of Mentone 559 First Indiana Bancorp 322 Farmersville Bancshares, Inc 719 First Interstate Bancorp 441 FBT Bancshares, Inc 559 First Insurance Agency, Inc 438 F. C. B., Inc 559 First Jacksboro Bancshares 798 Fertile Bancshares, Inc 258 First Jersey National Corp 73 Fidelity BancShares (N.C.), Inc 436 First La Porte Financial Corp 559 Fifth Third Bancorp 73, 202, 258 First Lafayette Bancorporation 119 Financial Dominion of Kentucky Corporation 120 First Lakefield BanCorporation, Inc 434 Financial Future Corporation 719 First Mabel BanCorporation, Inc 434 Financial Services of Winger, Inc 436 First Manitowac Bancorp, Inc 796 Finlayson Bancshares, Inc 559 First Maryland Bancorp 320 Firsnabanco, Inc 523 First Midwest Bancorp., Inc 387, 436, 719 First Abilene Bankshares, Inc 258 First Moore Bancshares, Inc 123 First Ada Bancshares, Inc 798 First Mortgage Corporation of Shreveport 324 First Ainsworth Company 798 First National Bancorp 322 First Alabama Bancshares, Inc. ... 321,386,559,719 First National Bancorp, Inc 324 First Alamogordo Bancorp, Inc 436 First National Bancorp of Rutherford County, Inc. . 322 First Alsip Bancorp, Inc 202 First National Bancorporation 387 First Amarillo Bancorporation, Inc 436 First National Bancshares, Inc 679 First American Bank Corporation 555, 557, 643 First National Bancshares of Fredonia 523 First American Bank Group, Ltd 436 First National Bancshares of Winfield, Inc 559 First American Corporation 386 First National Bank Holding Corporation 799 First & Merchants Corporation 321,677 First National Cincinnati Corporation 121 First Banc Group, Inc 677 First National Columbus Bancorp 677 First Bancgroup-Alabama, Inc 436 First National Corporation of Jacksonville 563 First Bancorp 523 First National Corporation of Picayune 322 First Bancorp of Belleville, Inc 202, 559 First National Hoffman Bancorp, Inc 559 First Bancorp of Kansas 559 First Newton Corporation 387 First Bancorp of N.H., Inc 769 First NorthWest Bancorporation 436 First Bancorporation 253 First of Austin Bancshares, Inc 436 First Bancorporation of Ohio 677 First of Herrington, Inc 438 First Bancshares, Inc 202 First of Murphysboro Corp 322 First Bancshares of Eastern Arkansas, Inc 436 First Olathe Bancshares, Inc 121 First Bankshares of Las Animas, Inc 436 First Pacific Investments, Ltd., et al 792 First Bancshares of Texas, Inc. ... 202, 322, 436, 719 First Palmetto Bancshares Corp 719 First Bank Holding Company 559 First Pioneer Bank Corp 799 First Bank Holding Company, Inc 386 First Port Allen Bancshares, Inc 677 First Bankshares, Inc 719 First Prague Bancorporation, Inc 258 First Bolivar Capital Corporation 436 First Prestonsburg Bancshares, Inc 437 First Busey Corporation 258, 559 First Railroad and Banking Company First Carrollton Bancshares, Inc 258 of Georgia 73, 559 First Central Corporation 796 First Republic Bancshares, Inc 677 First-Citizens Corporation 798 First Roane County Bankcorp, Inc 799 First City Bancorp, Inc 258 First San Benito Bancshares, Inc 259 First City Bancorporation of Texas, Inc 71, 200, First Securities Investment, Inc 437 434, 522, 676, 772, 796 First Selmer Bancshares, Inc 322 First Colonial Bancshares Corporation 202 First Seneca Corporation 121 First Comanche Bancshares, Inc 677 First Southeast Banking Corp 387 First Community Bancorp, Inc 258 First Southern Missouri Bankshares, Inc 719 First Coweta Corporation 120 First State Bancorp, Inc 799 First Delhi Corporation 202 First State Bancshares, Inc 322 First Dodge City Bancshares, Inc 258 First State Bank Holding Company 261 First Edmond Bancshares, Inc 798 First State Corporation 437 First Exchange Corp 719 First State Holding Company, Inc 202 First Fletcher Bancshares, Inc 719 First Stratford Bancorporation 259 First Florida Banks, Inc 678 First Tazewell Bancorp, Inc 259 First Frankfort Bancshares, Inc 719 First Tennessee National Corporation 437 First Freeport Corporation 322, 385 First Texas Financial Corporation 202 First Glen Bancorp, Inc 204 First Valley National Corp 73 First Graham Bancorp, Inc 798 First Winters Holding Company 799 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 68 A85 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Flag, Inc 256 Haskell Bancorporation, Inc 677 Flagship Banks, Inc 73, 387 Haviland Bancshares, Inc 387 Flint Bancshares, Inc 387 Hawkeye Bancorporation 322, 560, 799 Florida Coast Banks, Inc 781 H C Financial Corp 387 Florida National Banks of Florida, Inc. . 49, 322, 799 Heart of Texas Bancshares, Inc 259 F.M.B. Corporation 719 Heartland Financial Bancshares, Inc 800 FM Co 524 Hebron Banshares, Inc 800 Follett Bancshares, Inc 677 Hedlund Bancshares, Inc 720 Forrest Bancshares, Inc 799 Heights Bancshares, Inc 121 Fourth Financial Corporation 202, 437 Hemingford Banshares, Inc 560 Franklin Bancshares, Inc 799 Hiawatha Bancshares, Inc 437 Freeburg Bancorp, Inc 799 Highland Park Bancorporation 202 Fresnos Bancshares, Inc 437 Highlands Bancshares, Inc 437 Frontier Bancshares, Inc 322 Hillsboro Bancshares, Inc 800 Frost Bancorporation, Inc 559 Hillsboro Capital Corporation 560 FSB Bancorporation 436 HNB Corporation 202 FSB, Covington, Tennessee 436 HNB Corporation 560 F. T. Bancshares, Inc 120 Hoi-Ark, Inc 204 Fulton Bancshares, Inc 202 Hong Kong and Shanghai Banking Gale Bank Holding Company, Inc 437 Corporation 63, 722, 782 Galva Bancshares, Inc 719 Hoosier Bancshares, Inc 560 Garrison Bancshares, Inc 322 Hopkins Financial Corporation 523 Gary Holding Company 799 Hospital Trust Corporation 501 Gary-Wheaton Corporation 259, 322 Howland Bancshares, Inc 437 Gaylord Bancorporation, Ltd 202 HTC Properties, Inc 501 General Bancshares Corporation 559 Hub Financial Corporation 800 Georgia Peoples Bankshares, Inc 437 Hudson Bancshares, Inc 322 Germantown Bancshares, Inc 73 Humble Bancshares, Inc 677 Gibbon Bancorporation, Inc 559 Huntington Bancshares Incorporated 437 Girard Company 437 Huntley Bancshares, Inc 800 GL & ML Limited 679 Hyannis Banshares, Inc 560 Glendive Bancorporation, Inc 677 Illini Community Bancgroup, Inc 560 Glenwood Bancshares, Inc 437 Illowa Bancorp, Inc 560 Global Bancorporation 256 Imperial Bancorp 784 Goddard Financial Corporation 322 Independent Community Banks, Inc 121 Goodhue County Financial Corporation 799 Indian Springs Bancshares, Inc 259 Graceville Bancorporation, Inc 322 Indiana Southern Financial Corp 322 Grand Bancshares, Inc 437 Industrial Bancshares, Inc 437 Grand Prairie Bancshares, Inc 719 Instituto Bancario San Paolo Di Turino 773 Great American Bancshares, Inc 437 InterFirst Corporation 243, 320, 385, 644 Great Guaranty Bancshares, Inc 202 Intermountain Bankshares, Inc 720 Great Lakes Financial Resources, Inc 259 International Bancorp 323, 523 Greater Jersey Bancorp 239 International Bancshares of Oklahoma, Inc 438 Green Mountain Bancorporation, Inc 719 Interstate Financial Corporation 316 Greenstone Financial, Inc 241 Ireton Bancorp 259 Greenview Banc Shares, Inc 121 Island American Bancshares, Inc 202 Grinnell Bancshares, Inc 799 James Madison, Inc 261 Groos Bancshares, Inc 259 JDOB, Inc 387 GRP, Inc 256 Jefferson Bankshares, Inc 438 Guaranty Bancshares Holding Corporation 799 Jeffersonville Bancorp 323 Guaranty Commerce Corporation 259 Jennings Bank Shares, Inc 438 Guardian Banshares, Inc 560 Johnston County Bancshares, Inc ; 387 Gulf Coast Holding Corp 322 J.P. Morgan & Co., Incorporated 514 Gulf South Bancshares, Inc 523 Kansas Bancorp II, Inc 259 Gulf Southwest Bancorp. Inc 799 Kansas State Financial Corporation 323 Halo Bancorporation, Inc 259 Kansas State Investments, Inc 560 Hampton Park Corporation 719 Kansas Unlimited Investments, Inc 203 H & H Bancshares, Inc 799 Keene Bancorp, Inc 203 Hardee Banking Corporation 560 Kentucky Southern Bancorp, Inc 560 Hardin County Bancshares, Inc 437 Kersey Bancorp, Inc 677 Harleysville National Corporation 560 Keyesport Bancshares, Inc 203 Harper Bancshares, Inc 720 Keystone Securities, Inc 438 Harris, Bankcorp, Inc 437, 555 Kilgore First Bancorp, Inc 121 Hartford National Corporation 242 Knob Noster Bancshares, Inc 440 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • December 1982 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. La Porte Bancorp, Inc 560 Mid-Central Bancshares Corporation 720 Lakeshore Bancshares, Inc 523 Mid-Citco Incorporated 720 Lakeside Bancshares, Inc 387 Midland BanCor 800 Lamesa National Corporation 720 Midland California Holdings Limited 325 Lancaster Bancshares, Inc 438 Midlands Financial Services, Inc 387 Lancaster Bancshares, Inc 438, 800 Midlantic Banks, Inc 781 Landmark Banking Corporation of Florida 389 Midstate Financial Corp 561 Lansing Bancshares, Inc 438 Midwest National Bancshares, Inc 203 LaPlace Bancshares, Inc 560 Mid-West Nebraska Bancshares, Inc 389 Larue Bancshares, Inc 438 Miles-Advance Bancshares, Inc 525 Lawton Financial Corp 259 Milford Bancorporation 645 League City Bancshares, Inc 259 Milford, N.V 256 Lebo Bancshares, Inc 720 Minnehaha Bancshares, Inc 203 LeClair Agency, Inc 801 Minto Bancorporation, Inc 203 Leeds Bancgroup, Inc 121 Mission Bancshares, Inc 438 Letchworth Independent Bancshares Corporation 325 Missouri Delta Bancshares, Inc 720 Levelland Co 387 M-L Bancshares, Inc 203 Lewellen National Corp 261 M. M. Enterprises of Plenty wood, Inc 800 Lexington Bancshares, Inc 560 Monroe Bancshares, Inc 523 Liberty Bancorp of Owasso, Inc 720 Montana Bancsystem, Inc 438 Liberty Bancshares, Inc 720 Monte Vista Bank Corp 561 Liberty National Bancshares, Inc 203 Montgomery County Bancshares, Inc 438 Lisle Bancorporation 387 Montrose County Bank Shares, Inc 121 Lometa Bancshares, Inc 438 Moody Bancshares, Inc 721 London Bancshare, Inc 560 Moore Financial Group 563 Louisiana Bancorp, Inc 438 Morehouse Bancshares, Inc 438 Loup Valley Bancshares, Inc 325 Mountain Financial Company 800 Lower Rio Grande Valley Bancshares, Inc 560 Mountain View Bancorporation, Inc 721 Lubbock Bancorporation, Inc 259 Mountcorp Bancshares, Inc 721 Luling Bancshares, Inc 720 MPS Bancorp, Inc 438 Madelia Holding Corp 797 MSB Holding Co., Inc 800 Madison Bancorp., Inc 387 Mt. Zion Bancorp, Inc 73, 561 Madison Financial Corporation 121 Mullen Banshares, Inc 560 Magnolia State Corporation 677 Multi-Line, Inc 121 Manchester Bancorp, Inc 677 Munter Agency, Inc 438 Manufacturers Hanover Corporation 324, 720 Murdock Bancshares, Inc 387 Manufacturers Hanover Trust Corporation 64 NACODOCHES Commercial Bancshares, Inc. ... 678 Maple Hill Bancshares, Inc 678 Napa Valley Bancorp 438 Maple Lake Bancshares, Inc 73 Napoleon Bancorporation, Inc 387 Marine Bancorp, Inc 387 NAPSUB Corporation 561 Marion Bancshares, Inc 387 National Bancorp of Alaska, Inc 717 Marion National Corporation 720 National Bancshares Corporation of Texas . 259, 523 Mark Twain Bancshares, Inc 203 National Bancshares, Inc 323 Marlin Financial Corporation 73 National City Corporation 427, 561 Marshall & Ulsley Corporation 720 NBC Bancorporation, Inc 561 Martinsville Bancshares, Inc 720 NBD Bancorp, Inc 306 Maryland National Corporation 203, 563 NBE Bancshares, Inc 323 Mason State Company 203 NCB Corp 203 Maybaco Company 73 NCNB Corporation 54, 561 Maynard Savings Bancshares 800 Nelson Bancorp, Inc 800 McLean County Bancshares, Inc 438 Neosho Bancshares, Inc 721 McLeod Bancshares, Inc 438 New Great Lakes Financial, Inc 561 Mechanicsville Bancshares, Inc 73 New London Agency, Inc 325 Mercantile Bankshares Corporation 71 New Mexico Banquest Corporation 561 Mercantile Texas Corporation 53, 71, 119, 191, New Ulm Financial Corporation 800 256, 320, 385, 434, 522, 557, 676, 717 N.F.B. Corporation 438 Merchants Bancorp, Inc 203 Nicol Bankshares Corp 678 Merchants Bancorporation 73 Noble Bank Holding Company, Inc 678 Merchants Bancorporation 387 Northeast Bancorporation, Inc 678 Merchants Corporation 259 Northern Cities Bancorporation, Inc 388 Meredosia Bancorporation, Inc 720 Northern Corporation 388 Metropolitan Bancshares, Inc 387 Northern Trust Corporation 203, 245, 561, 800 Met-State Corporation 261 North Plaza Bancshares, Inc 203 Mid-America Banc-System, Inc 440 North Shore Capital Corporation 388 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 68 A87 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. North Side Bancorp, Inc 678 Republic Bancshares, Inc 800 North Texas Bancshares, Inc 439 Republic of Texas Corporation . 60, 73, 195, 260, 439 Northwest Bancorporation 519 Resource Companies, Inc 721 Northwest Bancshares, Inc 323 Ridgeway Bancorp, Inc 721 Oaklawn Financial Corporation 561 Rifle Bank Agency, Inc 439 Oak Park Bancorp, Inc 721 Riverton State Bank Holding Company 524 Ocheyedan Bancorporation 259 Robuck, Inc 717 Ogden-Saratoga Corporation 203 Rochester Bancshares, Inc 721 Ogle County Bancshares, Inc 73 Rock Creek Bancshares, Inc 323 Ohnward Bancshares, Inc 259 Rockwall Finance Corporation 260 Old Colony Co-Operative Bank 785 Rocky Financial Corporation 323 Old Stone Corporation 123 Roxton Corporation 260 Oliver Bancorporation, Inc 523 Royal Bancshares, Inc 561 Olla Bancshares, Inc 561 Royal Trust Bank Corp 439 OMB Financial, Inc 523 Royal Trustco Limited 439 Orbanco Financial Services Corporation 198 Ruidoso Bank Corporation 388 Oregon Bancorp, Inc 523 SafraCorp 801 Overbrook Bancshares, Inc 323 St. James Bancorp. Inc 121 Owatonna Bancshares, Inc 388 St. Joseph Bancshares, Inc 524 Palm Bancorp 678 Salem Arkansas Bancshares Corporation 561 Pan American Banks, Inc 260 San Jose Banco, Inc 260 Panora Financial Corp 679 San Saba National Corporation 260 Paraclete Bancorp 203 Santa Barbara Bancorp 323 Park National Corporation 797 Santa Fe Trail Banc Shares, Inc 524 Patriot Bancorporation 388 Sarcoxie Bancorp, Inc 323 PDR Bancshares, Inc 523 Satanta Bancshares, Inc 323 Peachtree Bancshares, Inc 323 Savanna Bancorp, Inc 561 Pee Dee Bancshares, Inc 71, 119 S.B.W. Bancorp, Inc 721 Peoples Ban Corporation 123 Schreiner Bancshares, Inc 73, 678 Peoples Bancorp, Inc 323 Seafirst Corporation 318, 561 Peoples Bancorp, Inc 800 Seaport Bancorp, Inc 260 Peoples Bancshares, Inc 561 Second National Bancorp 721 Peoples Bancshares, Ltd 678 Security Bancorp 246 Peoples Banking Co. of Cecil County 388 Security Bancorp, Inc 561 Permian Bancshares, Inc 721 Security Bancorporation, Inc 260 Perry Bancshares, Inc 561 Security Bancshares, Inc 678 Philadelphia Capital Corporation 388 Security Financial Services, Inc 439 Philadelphia National Corporation 260 Security Holding Company 439 Piggott Bankstock, Inc 800 Security National Corporation 323 Pinellas Bancshares Corporation 388 Security Pacific Corporation 557 Pine River Holding Company 563 Security State Investments, Inc 73 Pioneer American Bancorporation 200 Sesser Bancorporation, Inc 203 Pioneer Bancorporation 439 7L Corporation 678 Pioneer Bancshares Corporation 204 Shawmut Corporation 309 Pioneer Bancshares, Inc 439 Shell Rock Bancorporation 721 Pioneer Bank Shares 800 Shively Bancshares Corporation 439 Plainview First National Bancshares, Inc 678 Shoshone Financial Corporation 439 Plain view Holding Co 721 Smith Center Bancshares, Inc 323 Plum Grove Bancorporation, Inc 388 SNB Bancshares, Inc 524 Pope County Bankshares, Inc 800 Snook Bancshares, Inc 323 Post-och Kreditbanken PKbanken 787 Solomon Bancshares, Inc 122 Prairie Bancorp., Inc 203 Sonny Wright 561 Princeton Agency, Inc 801 Southeast Banking Corporation 389 Progressive Capital Corporation 523 Southern Bancorp 260 Provident Bancorp, Inc 561 Southern Bancorporation, Inc 324, 722 Provident National Corporation 194 Southern Bancshares, Inc 388 P T & S Bancorp 388 Southern Bancshares, Inc 439 Puget Sound Bancorp 679 Southern Wisconsin Bancshares Corporation 439 Purdue National Corporation 561 SouthTrust Corporation 439, 562 Ramsey Bancshares, Inc 203 Southwest Bancshares, Inc 439 Ranger Bancshares, Inc 388 Southwest Bancshares, Inc 120, 200, 562, 800 Raymondville State Bancshares, Inc 260 Southwest Florida Banks, Inc 562 Red Bird Bancshares, Inc 524 Southwest Illinois Bancshares, Inc 721 Rend Lake Bancorp, Inc 524 Southwest Missouri Bancorporation, Inc 260 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Federal Reserve Bulletin • December 1982 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Spiro Bancshares, Inc 121 UBF Corporation 524 Springfield State Bancorporation, Inc 388 UNB Corporation 260 Stamford Bancshares, Inc 439 Union Bancorp of West Virginia, Inc 256 Standard Bancshares, Inc 323 Union Bancshares Corp 562 Stark Bancshares, Inc 439 Union Bancshares, Inc 678 State Bancshares, Inc 323 Union Bank Corporation 388 State Bancshares, Inc 439 Union-Calhoun Investments, Ltd. 524 State Bancshares, Inc 800 Union Colony Bancorp 204 State Bank of Bottineau Holding Company 562 Union Commerce Corporation 721 State Bank of India 430 Union Illinois Company 678 State Holding Company 388 Union National Corporation 678 State National Bancorp, Inc 562 United American Bancshares, Inc 524 Steel City Bancorporation, Inc 388 United American of Northwest Florida, Inc 524 Sterling Bancshares, Inc 388 United Bancorp., Inc 801 Stockmens Financial Corporation 324 United Bancorp of Maryland, Inc 324 Suburban Bancorp, Inc 441 United Bancorporation, Inc 678 Sudan Bancshares, Inc 721 United Bancorporation of Alabama, Inc 562 Summersville Bancshares, Inc 439 United Bancorporation of Wyoming 722 Summit Bancorporation 388 United Bank Corporation of New York 60 Summit Bancshares, Inc 721 United Banks of Colorado, Inc 260, 324 Sun Banks of Florida, Inc 374 United Hamblen, Inc 389 Sunflower Bancshares, Inc 562 United Madison Bancshares, Inc 204 Svenska Handelsbanken, et al 788 United Midwest Bancshares, Inc 713, 774 Table Rock Bancshares, Inc 388 United Missouri Bancshares, Inc 122, 204, 722 Tahoka First Bancorp, Inc 524 United Southern Bancorp 260 Taylor County Bancshares, Inc 325 United Texas Financial Corporation 440 TB&T Bancshares, Inc 121 University State Bancshares, Inc 440 T-C Holdings, Inc 388 Uptown Bancorporation, Inc 204 Tecumseh Bankshares, Inc 388 U.S. Bancorp 256, 320, 434, 557, 717 Tekamah Agency Company 563 U.S.B. Holding Co., Inc 801 Telluride Bank Shares, Inc 121 USTCorp 801 Telp Corporation 503 Valley Bancorp, Inc 679 Tennessee National Bancshares, Inc 524 Valley Bancorporation 801 Tennessee National Bancshares, Inc 389 Valley Bancshares, Inc 122 Terre du Lac Bancshares, Inc 260 Valley Capital Corp 389 Terry Bancshares, Inc 562 Valley View Bancshares, Inc 440, 524 Texas American Bancshares, Inc 120, 201, Vesta Bancorporation, Inc 389 256, 717, 797 Victoria Bankshares, Inc 324, 389, 440, 524 Texas Commerce Bancshares, Inc. 201, 434, 503, 557, Victory Bancshares, Inc 722 676, 713, 717, 797 Volunteer Bancshares, Inc 260 Thedford Banshares, Inc 560 Wabash Valley Bancorporation, Inc 204 Third National Corporation 794 Wakulla Bancorp 722 Three Forks Bancorporation 721 Walnut Valley Corporation 260 Thurman State Corporation 261 Walton Bancshares, Inc 440 Timpson Financial Corporation 800 Warrior Capital Corporation 389 Toledo Trustcorp, Inc 721 Washington Community Bancshares, Inc 261 Tonica Bancorp, Inc 121 Wayne Bancshares, Inc 801 Town and Country Banshares, Inc 562 Webbers Falls Bancorp, Inc 679 Trabanc 247 Wells-Foster Bankshares, Inc 204 Transworld Bancorp 524 West Alabama Bancshares, Inc 562 Transworld Corporation 646 West Carroll Bancshares, Inc 261 Traxshares, Inc 260 West Shore Bank Corporation 122 Treynor Bancshares, Inc 562 Westbrand, Inc 722 Trimont Bancorporation, Inc 439 Western Bancshares of El Paso, Inc 801 Trinity Bancshares, Inc 801 Western Indiana Bancorp 562 Tri-State Bancorporation, Inc 73 Western National Bancorporation, Inc 679 Tri-State Bankshares, Inc 74 Western Oklahoma Bancshares, Inc 122 Tri-State Financial Bancorp 74 Westlake Bancshares, Inc 204 Troup Bancshares, Inc 439 Wilber Corporation 801 Trust Company of Georgia 260, 562 Williamsburg Holding Company 324 Tucker Brothers, Inc 74 Wilson Bancshares, Inc 524 Tulsa Commerce Bancshares, Inc 196 Winnsboro Bancshares, Incorporated 324 Turtle Bancshares, Inc 440 Woodriver Banco, Inc 204 Tuscola Bancorp, Inc 204 Worland Holding Company 562 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 68 A89 Pages Pages Bank Holding Company Act—Continued Board of Governors—Continued Orders issued—Cont. Staff changes Wyoming Bancorporation 313 Ashton, Richard M 304 Yazoo Capital Corporation 389 Bleier, Michael E 228 Yip Financial Investment, Ltd., et al 197 DeBeer, Anne M 539 Youell Sales Department, Inc 204 Dennis, Jack, Jr 539 Zapata Banshares, Inc 389, 441 Dooley, Michael P 416 Zappco Inc 441 Downing, Theodore E., Jr 228 Bank Merger Act Eisenbeis, Robert A 104 Orders issued under Garwood, Griffith L 498 American Bank and Trust Company 563 Guinter, Harry A 104 AmeriTrust Company 65, 441 Hart, Janet 0 416, 498 Bank of New Jersey 325 Jacklin, Nancy P 304 Bank One of Geauga County 441 Johnson, Elizabeth A 706 Central Bank of the South 441 Jones, William R 363 Connecticut Bank and Trust Company 74, 563 Kakalec, John 416 DB Banking Co 123 Kohn, Donald L 104 F & M National Corporation 74 Livingston, George E 539 Fidelity Union Bank 325 Lowrey, Barbara R 104 First Colbert National Bank 716 McAfee, James B 104 First Virginia Bank 325, 390, 723, 802 O'Brien, Frank, Jr 228 FTB Fifth Bank 205 Peret, J. Cortland G 539 FTB Fourth Bank 74 Ring, P.D 228 FTB Sixth Bank 262 Robinson, David L 539 Guardian State Bank 390 Salus, Naomi P 228 Interim Dime Bank of Marietta 205 Schleicher, C. William, Jr 539 Michigan Bank-Port Huron 205 Schneider, William C., Jr 706 Peoples Bank of Danville 325 Smith, Dolores S 228 St. Joseph Valley Bank 673 Struble, Frederick M 104 Toledo Trust Company 262 Stull, James 363 United Jersey Bank/Southwest 205 Sussan, Sidney M 363 United Virginia Bank 680 Tinsley, Peter A 104 Bank merger (See mergers) Staff studies (See Staff studies) Bank Secrecy Act, statement on enforcement and utili- Statements and reports to Congress (See Statements zation, and reporting requirements 481 to Congress) Banking Affiliates Act of 1982, article 693 Bonds Banking organizations, U.S., staff study on foreign Industrial development, article 135 subsidiaries 609 Municipal revenue, statement on proposals to allow Banking structure, 1970-81, article 77 banks to underwrite 91 Banking structure-performance studies, staff study 477 Branch banks Banks, U.S., statement on foreign investments in 617 Edge corporation, procedure for establishing U.S. Barbee, Joe D., appointed director, San Antonio Branch 278 branch and making certain investments, amend- Barnett, William A., staff study 291 ment of Regulation K 706 Bartol, George E., Ill, appointed Class C director, Federal Reserve Philadelphia 267 Directors (See Directors) Bleier, Michael E., Assistant General Counsel, resigna- Vice presidents in charge, list A73 tion 228 Member banks, amendment of rules regarding forma- Board of Governors (See also Federal Reserve System) tion of foreign "shell" branch 768 Annual Report to Congress (See Publications) Brents, Jerry W., appointed director, New Orleans Consumer Advisory Council (See Consumer Adviso- Branch 271 ry Council) Brewer, Robert E., appointed director, Detroit Branch.. 272 Interpretations (See Interpretations) Budget, federal, statement 298 Litigation (See Litigation) Businesses, statement on financial condition of, and its Margin requirements on futures contracts based on relationship to monetary and fiscal policy 356 stock indexes, proposed regulatory framework 188 Members List 263 CAMPBELL, Raymond D., elected Class A director, Martin, Preston, appointment as Member and Vice Cleveland 267 Chairman 225 Canner, Glenn B., staff studies 345, 610 Schultz, Frederick H., resignation 185 Capital adequacy Members and officers, list A70 Criteria for applying to mandatory convertible issues Policy statements (See specific subject) of state member banks and bank holding compa- Pricing (See Fees) nies, adoption and revision 361, 626 Publications and releases (See Publications) Guidelines, issuance by Comptroller of Currency and Regulations (See Regulations) Federal Reserve 33 Rules (See Rules) Capital Assistance Act of 1982, statement 353 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 Federal Reserve Bulletin • December 1982 Pages Pages Chambers, Carolyn S., appointed director, Portland DARNELL—Continued Branch 279 Branch 273 Change in Bank Control Act (See Bank Control Act) Davis, John B., Jr., appointed Deputy Chairman and Check clearing and collection (See Transfers of funds) Class C director, Minneapolis 274 Christian, Michael T., appointed director, Nashville DeBeer, Anne M., appointed Assistant Director, Divi- Branch 271 sion of Federal Reserve Bank Operations 539 Clearinghouses Debits, bank, and deposit turnover series, revision .... 704 Fees for automated clearinghouse services, pricing Debt, public, statements on management 219, 221 policy Dennis, Jack, Jr., appointed Assistant Director, Divi- Incentive pricing, Board plan to end by 1985 302 sion of Federal Reserve Bank Operations 539 Revised schedule, and changes in procedures for Deposit Insurance Flexibility Act, statement 353 administering clearing balances 755 Depository institutions (See also specific types) Cobb, Sue McCourt, appointed director, Miami Branch . 271 Civil money penalty 705 Coin wrapping, fee schedule (See Fees) Credit extended to, by Reserve Banks (See Commercial banks (See also Member banks) Regulations: A) Construction loans, staff study on interest rates and Interlocking relationships (See Regulations: L) terms 401 Reserve requirements (See Regulations: D) Contingencies and commitments, staff study on use Depository Institutions Deregulation Committee 303 by 25 Depository Institutions Interlocks Act 628, 758, 759 Foreign banks (See Foreign banks) Deposits Insured Interest (See Interest on deposits) Collection of data on past-due loans 628 Reserve requirements (See Regulations: D) Profitability, article 453 Turnover, and bank debits series, revision 704 Commercial paper market since mid-seventies, article . 327 Deregulation of Product Lines (See Publications) Community Reinvestment Act, staff study 345 Directors Competition, article 527 Federal Reserve Banks Comptroller of Currency Chairmen and Federal Reserve Agents... 265-80, A73 Capital adequacy Deputy Chairmen 265-80, A73 Criteria for applying to mandatory convertible is- List 265-80 sues of national banks, adoption and Federal Reserve branch banks revision 361,626 Chairmen 265-80, A73 Guidelines, issuance by Comptroller and Federal List 265-80 Reserve 33 Discount rates at Reserve Banks (See Interest rates) Loans, past due, collection of data 628 Dividends Concordance of Statistics (See Publications) Federal Reserve Banks 103 Condition reports Insured commercial banks, article on profitability ... 453 Call and income subscription service 416 Dockson, Robert R., appointed director, Los Angeles Data on past-due loans, collection 628 Branch 278 Construction loans at commercial banks, staff study on Doman, Lewis A., appointed director, Jacksonville rates and terms 401 Branch 270 Consumer Advisory Council Dooley, Michael P., appointed Assistant Director, Divi- List All sion of International Finance 416 Meetings 104, 227, 415, 629 Downing, Theodore E., Jr., return to Federal Reserve New members 34, 756 Bank of Chicago 228 Nominations, requests 362 Duffy, Edward W., appointed director, Buffalo Branch.. 266 Consumer leasing (See Regulations: M) Cornyn, Anthony G., article 335 Corrigan, E. Gerald, report and announcement on Fed- EARNINGS and expenses (See Income and expenses) eral Reserve pricing of services 467, 497 Economy, statements 88, 96, 102 Cousins, Jane C., appointed Class C director, Atlanta . 270 Edge Act and Agreement corporations Crawford, William H., appointed director, Oklahoma International banking operations (See Regulations: K) City Branch 276 Eisenbeis, Robert A., Senior Deputy Associate Direc- Credit (See also Loans) tor, Division of Research and Statistics, resignation . 104 Allocation (See Community Reinvestment Act) Electronic Fund Transfer Act Equal Credit Opportunity (See Regulations: B) State exemptions, amendment of rules 306 Federal Reserve Banks (See Regulations: A) Electronic fund transfers (See Transfers of funds) Interest rates (See Interest on deposits) Ellis, John W., appointed director, Seattle Branch 280 Margin requirements (See Margin requirements) Elorriaga, John A., appointed director, Portland Branch 279 Mortgage and consumer credit markets, article 281 Ence, Lela M., appointed director, Salt Lake City Stocks (See Stock market credit) Branch 279 Truth in Lending (See Truth in Lending Act) Equal Credit Opportunity Act Credit Control Act, bill to reinstate 483 Regulation B (See Regulations) Cross, Sam Y., reports 143, 341, 579, 739 Etchart, Gene J., appointed director, Helena Branch .. 275 Curry, Timothy J., staff study 26 Executive officers of member banks, loans to, amendment of Regulation O (See Regulations) DARNELL, John E., Jr., appointed director, Louisville Export trading companies, statement 349 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 68 A91 Pages Pages FEDERAL Advisory Council A72 Foreign banks—Continued Federal Deposit Insurance Corporation International banking facilities (See International Loans, past due, collection of data 628 banking facilities) Federal Open Market Committee Foreign exchange operations Foreign exchange operations of Treasury and Federal Application by foreign banking organizations to pro- Reserve for (See Foreign exchange operations) vide, proposed Board action 759 Members and officers All Treasury and Federal Reserve, reports 143, 341, Policy actions, record 39, 105, 229, 364, 417, 541 579, 739 631, 761 Foreign investments in U.S. banks, statement 617 Federal Reserve Act Foreign subsidiaries of U.S. banking organizations, staff Banking Affiliates Act of 1982, article on amendments study 609 to section 23A 693 Forest products industries, statement 614 Orders issued under Futures contracts, based on stock indexes, regulatory Citibank Overseas Investment Corporation 671 framework proposed by Board 188 Reserve requirements, statement on proposed amendment regarding 409 GARN-ST GERMAIN Depository Institutions Act.... 758 Federal Reserve and Treasury foreign exchange opera- Garwood, Griffith L. tions (See Foreign exchange operations) Appointed Director, Division of Consumer and Com- Federal Reserve Banks munity Affairs 498 Branches (See Branch banks) Gendreau, Brian Charles, staff study 25 Chairmen and Deputy Chairmen 265-80, A73 Goldberg, Michael A., staff study 25 Credit extended by (See Regulations: A) Gramley, Lyle E. Delegation of authority to, amendment of Regulation Financial innovation and monetary policy, article ... 393 K and rules to permit action on certain appli- Housing and forest products industries, statement on cations 706, 768 present state and outlook for future 614 Directors (See Directors) Monetary policy, statement on effects of financial Discount rates (See Interest rates) innovations 174 Fees for services to depository institutions (See Fees) Griffin, W.L. Hadley, appointed Class C director, St. Income and expenses 103 Louis 273 New York Group of Ten countries, multilateral financing for Statement by senior vice president on management Mexico 538 of public debt 221 Guidelines (See also specific types) Treasury and Federal Reserve foreign exchange Capital adequacy (See Capital adequacy) operations (See Foreign exchange operations) Guinter, Harry A., Assistant Director for Contingency Presidents and Vice Presidents A73 Planning, Office of Staff Director for Federal Reserve Transfers of funds (See Transfers of funds) Bank Activities, resignation 104 Federal Reserve Board (See Board of Governors) Federal Reserve Regulatory Service (See Publications) HANNAN, Richard D., elected Class B director, Cleve- Federal Reserve System (See also Board of Governors) land 267 Foreign exchange operations (See Foreign exchange Hanweck, Gerald A., staff study 25 operations) Hart, Janet O., Director, Division of Consumer and Map A97 Community Affairs, retirement 416, 498 Membership, admissions of state banks 104, 188, Hatch, James Stokes, elected Class A director, Boston.. 265 228, 304, 363, 416, 498, 539, 630, 706, 760 Hatsopoulos, George N., elected Class B director, Monetary policy, money supply, and operating proce- Boston 265 dures, paper 13 Hennessy, Edward L., Jr., elected Class B director, Federal Reserve System Compliance Handbook (See New York 266 Publications) Hoffman, Donald D., appointed director, Denver Fees (for Federal Reserve services to depository institu- Branch 275 tions) Home Mortgage Disclosure Act (See Regulations: C) Automated clearinghouses (See Clearinghouses) Hosley, Joan D., article 681 Coin wrapping, fee schedule 36 Houpt, James V., staff study 609 Float, proposed action 703 Housing (See Real estate) Pricing, report 467 Humphrey, David B., staff study 215 Revisions 497 Hurley, Evelyn M., article 327 Wire transfer and net settlement services, proposed revision of charges to depository institutions, and INCOME and expenses change 37, 225 Call and income subscription service 416 Fern, Dale W., elected Class A director, Minneapolis . 274 Federal Reserve Banks 103 Financial innovation and monetary policy, article 393 Insured commercial banks, article on profitability ... 453 Fitton, Richard, appointed director, Industrial production Cincinnati Branch 268 Board releases 28, 86, 165, 217, 292, 347, 403, Float, proposed action 703 479, 535, 612, 701, 745 Food (See Agriculture) In recession, article 681 Foreign banking and financing (See Regulations: K) Insured commercial banks Foreign banks Article on profitability 453 Call and income subscription service 416 Loans, past due, collection of data 628 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Federal Reserve Bulletin • December 1982 Pages Pages Interest on deposits (See also Interest rates) Loans—Continued Changes (See Regulations: Q) interest rates and terms 401 Civil money penalty 705 Executive officers of member banks, amendment of Interest rates (See also Interest on deposits) Regulation O (See Regulations) Construction loans at commercial banks, staff study Mortgages (See Real estate) on rates and terms 401 Past-due, collection of data 628 Federal Reserve Banks Stocks (See Stock market credit) Changes 497, 537, 703, 755 Lowrey, Barbara R., appointed Associate Secretary, ' 'Receiver's certificates'' as collateral for advances . 413 Office of Secretary 104 Joint Resolution to lower, statement 30 Interlocking bank relationships (See Regulations: L) MADDUX, Thomas H., appointed director, Baltimore International banking facilities Branch 269 Article 565 Margin requirements Call and income subscription service 416 Effectiveness, scope, and structure of federal regula- Purchases and sales of financial assets in secondary tion of, Board study 705 market, interpretation 35 Futures contracts (See Futures contracts) International banking operations (See Regulations: K) Over-the-counter stocks (See Over-the-counter mar- International Monetary Fund 538 gin stock list) International transactions, U.S., in 1981, article 207 Regulations G, T, and U (See Regulations) Interpretations Martin, Preston Consumer leasing, commentary 302 Appointed Member and Vice Chairman, Board of Data processing activities permissible for bank hold- Governors 225 ing companies 537 Credit Control Act, statement on bill to reinstate 483 Equal Credit Opportunity 363, 703 Federal Reserve Act, statement on proposed amend- Interest on deposits, loans made upon security of time ment to exempt from reserve requirements certain deposit 704 reservable liabilities at all depository institutions .. 409 International banking facilities 35 Thrift institutions, statement on Board's views on Secondary market for negotiable time deposits issued bills to address problems facing 353 by bank, arrangements permissible 538 Martinson, Michael G., staff study 609 Truth in lending, commentary 303-04 Mathers, William L., elected Class B director, Minne- Investments apolis 274 Bank holding companies, in nonvoting shares of other Matthews, William M., Jr., appointed director, Memholding companies or banks, Board policy state- phis Branch 274 ment 413 McAfee, James B., appointed Associate Secretary, Of- Foreign, in U.S. banks, statement 617 fice of Secretary 104 McDade, Thomas B., appointed director, Houston JACKLIN, Nancy P., appointed Assistant General Branch 277 Counsel for International Banking 304 McKenna, Quentin C., appointed director, Pittsburgh Jennings, Joseph A., elected Class A director, Rich- Branch 268 mond 268 Member banks (See also Depository institutions) Johnson, Douglas Eugene, elected Class A director, Credit extended to, by Reserve Banks (See Regula- Philadelphia 267 tions: A) Johnson, Elizabeth A., appointed Assistant Director, Interlocking relationships (See Regulations: L) Data Systems, Division of Data Processing 706 Loans to executive officers, amendment of Regulation Jones, William R., appointed Manager, Operations Re- O (See Regulations) view Program, Office of Board Members 363 Securities (See Securities) Jorgenson, Wallace J., appointed director, Charlotte State member banks (See State member banks) Branch 269 Sweep accounts, petition regarding 630 Transfers of funds (See Transfers of funds) KAKALEC, John, Controller, retirement 416 Mergers (See also Bank Merger Act) Kerr, R.I., Jr., appointed director, Louisville Branch.. 273 Applications, new pamphlet 759 Key, Sydney J., article 565 Bank acquisitions, mergers, or consolidations, pro- Kohn, Donald L., appointed Senior Deputy Associate posed Board policy statement 188 Director, Division of Research and Statistics 104 Theory of probable future competition, article on applying 527 LAUFENBERG, Daniel E., article 135 Miller, Paul G., elected Class B director, Richmond... 268 Leasing, consumer (See Regulations: M) Milsom, Robert C., appointed director, Pittsburgh Lee, William S., Ill, appointed Class C director, Rich- Branch 268 mond 269 Monetary aggregates Litigation Framework of targeting, statement on conduct of Cases pending involving Board of Governors ... 74, 123, monetary policy with focus on 405 205, 262, 326, 390, 442, 525, 564, 680, 723, 802 Staff study 291 Livingston, George E., appointed Controller 539 Monetary Control Act 303, 759 Lloyd-Davies, Peter R., staff study 25 Monetary policy Loans (See also Credit) Federal Reserve's operating procedures and mone- Construction, at commercial banks, staff study on tary policy and money supply, paper 13 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 68 A93 Pages Pages Monetary policy—Continued Publications in 1982—Continued Financial innovation and monetary policy, article ... 393 Annual Statistical Digest, 1981 629 Remarks excerpted from informal talk 691 Call and income subscription service 416 Statements.... 96, 102, 171, 174, 356, 405, 487, 494, 747 Concordance of Statistics 629 Monetary Policy Reports to Congress 125, 443 Deregulation of Product Lines, proceedings of collo- Money market deposit account 758 quium held at Board 705 Money market fund shares, statement 174 Federal Reserve Regulatory Service and handbooks, Money stock, revision 185 revised rates 37 Money supply, monetary policy, and Federal Reserve's Federal Reserve System Compliance Handbook, supoperating procedures, paper 13 plement 303 Moran, Michael J., article 725 List A74 Mortgages (See Real estate) Over-the-counter margin stock list (See Over-the- Mutual funds, statement on proposals to allow banks to counter margin stock list) offer 91 "Processing Bank Holding Company and Merger Mutual savings banks, article 725 Applications," pamphlet 759 "Weekly Report of Assets and Liabilities of Interna- NATIONAL banks tional Banking Facilities," new statistical release . 228 Capital adequacy Criteria for applying to mandatory convertible is- RADDOCK, Richard D., article 681 sues, adoption and revision 361, 626 Real estate Guidelines, issuance by Comptroller of Currency Home mortgage disclosure (See Regulations: C) and Federal Reserve 33 Housing and forest products industries, statement... 614 Loans, past due, collection of data 628 Mortgage and consumer credit markets, article 281 Neblett, G. Rives, appointed director, Memphis Branch. 274 Redlining, staff study 610 Neel, C. Warren, appointed director, Nashville Branch . 271 Regulations (See also Rules) Negotiable order of withdrawal accounts, amendment of A, Extensions of Credit by Federal Reserve Banks Regulations D and Q 758, 759 Discount rates, amendments to reduce 45, 551 Nelson, Sheffield, appointed director, Little Rock 637, 707 Branch 273 B, Equal Credit Opportunity Nielson, James E., appointed director, Denver Branch 276 Business credit provisions, withdrawal of proposed Nonmember depository institutions amendment 363,703 Reserve requirements (See Regulations: D) Credit scoring, interpretations 363, 703 Small, extension of deferral of deposit reporting and C, Home Mortgage Disclosure reserve requirements 303 Disclosure and reporting form, final version Ill Nordstrom, John N., appointed director, Seattle Branch 279 State exemptions from disclosure requirements ... 705 D, Reserve Requirements of Depository Institutions O'BRIEN, Frank, Jr., appointed Deputy Assistant to Contemporaneous requirements, amendments 625, 707 Board 228 Deferral for small nonmember institutions 303, 626, 759 Opper, Barbara Negri, article 453 Exemption of first $2.1 million in reservable liabil- Over-the-counter margin stock list ities, amendment 758 Criteria for inclusion 362, 371 Money market deposit account, creation 758 Revision 497 Negotiable order of withdrawal accounts, amend- Supplements 185,629 ment affecting 758 Phasing-in PARKINSON, Patrick M., article 207 Certain new institutions, amendment 226, 305 Partee, J. Charles Former member banks, amendment 767 Bank participation in securities markets, statement on Member banks and certain other institutions, proposals to allow underwriting of municipal reve- amendment 758 nue bonds and offering of mutual funds 91 Reporting requirements for institutions experienc- Businesses, statement on financial condition of, and ing above-normal growth, amendment 226 its relationship to monetary and fiscal policy 356 Time deposits Financial markets, statement on important issues New 7- to 13-day category, amendments to define 551 related to regulation 294 Nonpersonal, long-term, amendment 302, 371 Penn Square Bank 753 Transaction accounts Pasman, James S., Jr., appointed director, Pittsburgh Adjustment of dollar amount subject to lowest Branch 268 reserve requirements, amendment 34, 45, 759 Payments mechanism (See Transfers of funds) Linked to checks or third-party transfers, tempo- Penn Square Bank, statement 753 rary amendment and revision 630, 758 Peret, J. Cortland G., Deputy Associate Director, Divi- E, Electronic Fund Transfers sion of Research and Statistics, retirement 539 Amendments to reduce regulatory burdens... 626, 709 Perlis, Sharon A., appointed director, New Orleans Small financial institutions subject to, proposed Branch 272 amendments to assist 227 Pricing of Federal Reserve services (See Fees) G, Securities Credit by Persons Other Than Banks, Production, industrial (See Industrial production) Brokers, or Dealers Publications in 1982 (including releases) Margin requirement rules, amendments to simplify Annual Report to Congress 227 and clarify 103,112 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • December 1982 Pages Pages Regulations—Continued Regulations—Continued Over-the-counter margin stocks, amendment of cri- Y, Bank Holding Companies and Change in Bank teria for inclusion on Board's list 362, 371 Control H, Membership of State Banking Institutions in the Arranging equity financing, proposed amendment .. 36 Federal Reserve System Data processing activities permissable, amendment Regulatory changes adopted by Board, amendment and related interpretation 537, 552 to conform 373 Management consulting advice and management Transfer agents, amendment 305 interlocks, amendment 227, 237 J, Collection of Checks and Other Items and Trans- Transfer agents, amendment 305 fers of Funds Z, Truth in Lending Checks drawn on closed institutions, proposed "Arranger" of credit, definition, amendment 185, 189 amendment 227 Commentary, revision and proposed updating 303-04, K, International Banking Operations 627 Permissible activities for Edge corporations, Deferral of mandatory effective date to implement amendment to add to list 226, 237 Truth in Lending Simplification and Reform Procedures for establishing U.S. branch of Edge Act 37,111 corporation and for making certain investments, Reduced rate financing in disclosures, proposed amendments 706, 767 amendment 498 L, Management Official Interlocks Regulatory Improvement Project Proposed changes to simplify and clarify 630 Regulation T, proposed overhaul 227 Ten-year grandfathered period for officials under Repurchase agreements certain conditions, amendment 628, 710 Civil money penalty regarding payment of interest .. 705 M, Consumer Leasing (formerly part of Regulation Z) U.S. government and agency issues 552 Commentary 302 Reserve requirements Deferral of mandatory effective date to implement Depository institutions (See Regulations: D) Truth in Lending Simplification and Reform Federal Reserve Act, statement on proposed amend- Act, amendments 37, 111 ment regarding 409 O, Loans to Executive Officers, Directors, and Prin- Money market fund shares, statement on imposing.. 174 cipal Shareholders of Member Banks Revisions Limitations and requirements for prior approval of Bank debits and deposit turnover series 704 bank's board of directors, amendments 703, 768 Money stock 185 Q, Interest on Deposits Rhoades, Stephen A., staff study 477 Depository Institutions Deregulation Committee Ring, P.D., Adviser, Division of Federal Reserve Bank actions, amendments to conform with 46, 538 Operations, retirement 228 637 Robinson, David L., appointed Associate Director, Di- Negotiable order of withdrawal accounts, amend- vision of Federal Reserve Bank Operations 539 ment affecting 759 Rose, John T., staff study and paper 26, 693 Repurchase agreements on certain U.S. govern- Rosine, John, article l ment or agency securities, amendment to permit Ross, Don, appointed director, Cincinnati Branch 268 member banks to issue automatically renewable Rough, Robert A., elected Class A director, agreements 552 New York 266 Time deposits Rules (See also Regulations) Issuance in book-entry form, amendment.... 538, 637 Availability of information, amendment 706 Loans made upon security of, interpretation 704 Delegation of authority, amendments, 189, 306, 423, 706, Secondary market for negotiable deposits issued by 711, 768 bank, arrangements member bank may make to Ryan, John E., statement 481 provide for, interpretation 538 Withdrawal before maturity, amendment to tempo- SALUS, Naomi P., appointed Special Assistant to rarily suspend penalty Ill Board 228 T, Credit by Brokers and Dealers Saucedo, Mary Carmen, appointed director, El Paso Collateral, amendments 363, 373, 630 Branch 277 Margin requirement rules, amendments to simplify Savage, Donald T., article 77 and clarify 103,112 Savings and loan associations, article 725 Private mortgage pass-through securities as collat- Schleicher, C. William Jr., appointed Associate Direceral, amendment 759 tor, Division of Federal Reserve Bank Operations... 539 Overhaul, proposed, as part of Regulatory Im- Schneider, William C., Jr., appointed Assistant Direcprovement Project 227 tor, Data Services, Division of Data Processing 706 Over-the-counter margin stocks, amendment of cri- Schroeder, William M., appointed director, Birmingham teria for inclusion on Board's list 362, 371 Branch 270 U, Credit by Banks for the Purpose of Purchasing or Schultz, Frederick H. Carrying Margin Stocks Interest rates, Joint Resolution to lower 30 Margin requirement rules, amendments to simplify Resignation as Member and Vice Chairman, Board of and clarify 103,112 Governors 185 Over-the-counter stocks, amendment of criteria for Schwaegler, Bruce M., appointed director, Los Angeles inclusion on Board's list 362, 371 Branch 279 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 68 A95 Pages Pages Securities credit Statements to Congress—Continued Over-the-counter (See Over-the-counter margin stock list) Monetary policy 96, 102, 171, 174, 405, 487 Stocks (See Stock market credit) 494, 747 Securities markets, bank participation in, statement on Monetary Policy Reports to Congress 125, 443 proposals 91 Penn Square Bank 753 Seiders, David F., staff study 401 Thrift institutions, Board's views on bills to address Shaver, Jesse M., elected Class B director, St. Louis.. 273 problems facing 353 Smith, Dolores S., temporary appointment as Assistant Steptoe, Roosevelt, appointed director, New Orleans Secretary of Board 228 Branch 272 Spindt, Paul A., staff study 291 Sternlight, Peter D., statement 221 Staff studies Stock indexes, proposed regulatory framework for fu- Commercial banks, use of contingencies and commit- tures contracts based on 188 ments 25 Stock market credit Community Reinvestment Act and credit allocation . 345 Margin requirements, Board study 705 Divisia monetary aggregates: Compilation, data, and Over-the-counter stocks (See Over-the-counter marhistorical behavior 291 gin stock list) Foreign subsidiaries of U.S. banking organizations .. 609 Regulations G, T, and U (See Regulations) Interest rates and terms on construction loans at Stock market, futures contracts (See Futures contracts) commercial banks 401 Stocks Margin requirements 705 Over-the-counter (See Over-the-counter margin stock Multibank holding companies, competition and per- list) formance in banking markets 26 Struble, Frederick M., transferred to Assistant Director Redlining: Research and federal legislative in Program Direction, Division of Research and response 610 Statistics 104 Structure-performance studies in banking 477 Stull, James, assignment to Federal Reserve Bank of U.S. payments mechanism, costs, scale economies, Dallas 363 competition, and product mix 215 Sussan, Sidney M., appointed Assistant Director, Divi- State member banks sion of Banking Supervision and Regulation 363 Capital adequacy Sweep accounts by member banks, petition regarding . 630 Criteria for applying to mandatory convertible issues, adoption and revision 361, 626 TABLES (for index to tables published monthly, see Guidelines, issuance by Comptroller of Currency guide at top of p. A81; for special tables published and Federal Reserve 33 during year, see list on p. A69) Membership in Federal Reserve System (See Federal Bank debits and deposit turnover series, revision ... 704 Reserve System) Talley, Samuel H., paper 693 Mergers (See Mergers) Thomas, Gerald W., appointed director, El Paso Branch 277 Regulations relating to (See Regulations: H) Thrift institutions Statements to Congress (including reports) Article 725 Bank participation in securities markets, proposals to Problems facing, statement on Board's views on bills allow underwriting of municipal revenue bonds and to address 353 offering of mutual funds 91 Tinsley, Peter A., appointed Assistant Director, Divi- Bank Secrecy Act, enforcement and utilization, and sion of Research and Statistics 104 reporting requirements 481 Tooley, William L., appointed director, Los Angeles Businesses, financial condition of, and its relationship Branch 278 to monetary and fiscal policy 356 Transfers of funds Congressional decisions on spending and revenue Checks measures, implications for fiscal position of govern- Processing and collection procedures, proposed ment and for financial markets 167, 170 changes 498 Credit Control Act, bill to reinstate 483 Regulation J (See Regulations) Debt management 219, 221 Electronic fund and wire transfers (See Regulations: Delayed funds availability 178 E) Economy 88, 96, 102 Fees for Federal Reserve services to depository insti- Export trading companies 349 tutions (See Fees) Federal budget, resolution to amend Constitution to U.S. payments mechanism, staff study 215 encourage a balanced budget 298 Trapp, Marvin D., appointed director, Charlotte Branch 269 Federal Reserve Act, proposed amendment to exempt Treasury Department from reserve requirements certain reservable liabil- Foreign exchange operations (See Foreign exchange ities at all depository institutions 409 operations) Financial markets, important issues related to regula- Truex, G. Robert Jr., appointed director tion 294 Seattle Branch 279 Foreign investments in U.S. banks 617 Truth in Lending Act Housing and forest products industries, present state Regulation Z (See Regulations) and outlook for future 614 State exemptions 303, 306, 538, 629 Interest rates, Joint Resolution to lower, 30 Monetary and budgetary situation in light of economic U.S. GOVERNMENT and agency securities objectives 494 Repurchase agreements, certain, amendment of Reg- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin • December 1982 Pages Pages U.S. Government and agency securities—Continued Monetary policy—Continued ulation Q to permit member banks to issue automat- Statements to Congress . 96, 102, 171, 174, 405, 487, ically renewable agreements 552 494, 747 U.S. international transactions in 1981, article 207 WALLICH, Henry C. VOLCKER, Paul A. Export trading companies, statement 349 Congressional decisions on spending and revenue Foreign investments in U.S. banks, statement 617 measures, statement on implications for fiscal posi- Weyerhauser, George H., elected Class B director, San tion of government and for financial markets 167, 170 Francisco 278 Economy, statements 88, 96, 102 Winer, Anthony S., article 527 Federal budget, statement on resolution to amend Wire transfers (See Transfers of funds) Constitution to encourage a balanced budget 298 Wolkowitz, Benjamin, staff study 25 Monetary and budgetary situation in light of economic objectives, statement 494 ZAHORIAN, Stephen G., appointed director, Miami Monetary policy Branch 271 Remarks excerpted from informal talk 691 Zearley, Thomas L., article 335 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A97 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

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with exten- To promote public understanding of its regulatory sions of credit for the purchase of securities, together functions, the Board publishes the Federal Reserve with all related statutes, Board interpretations, rul- Regulatory Service, a three-volume looseleaf service ings, and staff opinions. Also included is the Board's containing all Board regulations and related statutes, list of OTC margin stocks. interpretations, policy statements, rulings, and staff The Consumer and Community Affairs Handbook opinions. For those with a more specialized interest in contains Regulations B, C, E, M, Z, AA, and BB and the Board's regulations, parts of this service are associated materials. published separately as handbooks pertaining to mon- For domestic subscribers, the annual rate is $175 for etary policy, securities credit, and consumer affairs. the Federal Reserve Regulatory Service and $60 for These publications are designed to help those who each handbook. For subscribers outside the United must frequently refer to the Board's regulatory materi- States, the price including additional air mail costs is als. They are updated at least monthly, and each $225 for the Service and $75 for each Handbook. All contains conversion tables, station indexes, and a subscription requests must be accompanied by a check subject index. or money order payable to Board of Governors of the The Monetary Policy and Reserve Requirements Federal Reserve System. Orders should be addressed Handbook contains Regulations A, D, and Q plus to Publications Services, Federal Reserve Board, 20th related materials. For convenient reference, it also Street and Constitution Avenue, N.W., Washington, contains the rules of the Depository Institutions D.C. 20551. Deregulation Committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT sumer credit protections. This 44-page booklet ex- PUBLICATIONS plains how to use the credit laws to shop for credit, apply for it, keep up credit ratings, and complain about an unfair deal. The Federal Reserve Board publishes a series of Protections offered by the Electronic Fund Transfer pamphlets covering individual credit laws and topics, Act are explained in Alice in Debitland. This booklet as pictured below. The series includes such subjects as offers tips for those using the new "paperless" syshow the Equal Credit Opportunity Act protects wom- tems for transferring money. en against discrimination in their credit dealings, how Copies of consumer publications are available free to use a credit card, and how to use Truth in Lending of charge from Publications Services, Board of Goverinformation to compare credit costs. nors of the Federal Reserve System, Washington, The Board also publishes the Consumer Handbook D.C. 20551. Multiple copies for classroom use are also to Credit Protection Laws, a complete guide to con- available free of charge. IMMft LBSNO LMHNO LE4SING LE4SMG TRUTH IN LE4SING What if Ituthln You Lending Borrow Means To Buy ToYou Stock— The Equal Credit Opportunity Act and... WOMF.N IF YOU USE A CREDIT CARD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis