Federal Reserve Bulletin, 1983-04

VOLUME 69 • NUMBER 4 • APRIL 1983 FEDERAL RESERVE B U L L E T IN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield Griffith L. Garwood • James L. Kichline • Edwin M. Truman Naomi P. Salus, Coordinator The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. 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 251 U.S. INTERNATIONAL TRANSACTIONS 281 ANNOUNCEMENTS IN 1982 Appointment of seven new members to the U.S. international transactions in 1982 re- Thrift Institutions Advisory Council and desflected the impact of the longest worldwide ignation of a new president of the Council. recession in more than a generation. Amendment to Regulation D to modify reserve requirements on nonpersonal time 261 INDUSTRIAL PRODUCTION deposits (see Legal Developments) and pro- Output rose about 1.1 percent in March. posal to amend the regulation to reduce the deposit reporting burden of small institu- 263 STATEMENTS TO CONGRESS tions. Preston Martin, Vice Chairman, Board of Amendments to Regulation Z affecting ar- Governors, discusses interest rates on con- rangers of credit, student loans, and the use sumer loans and says that the Federal Re- of calculation devices in determining annual serve remains committed to policies that percentage rates. will permit the economy to expand without Revisions to the national fee schedule for regenerating inflationary pressures and that the Federal Reserve's book-entry securities this course should lead to lower interest service and the continuation of current rates over time, before the Subcommittee charges to depository institutions for wire on Consumer Affairs of the Senate Committransfer of funds and net settlement sertee on Banking, Housing, and Urban Afvices. fairs, March 17, 1983. Publication of the Board's Annual Report 266 Henry C. Wallich, Member, Board of Govfor 1982. ernors, presents the views of the Board on the expansion of resources for the Interna- Change in Board staff. tional Monetary Fund and reviews the role Admission of two state banks to memberof the IMF in helping to resolve serious ship in the Federal Reserve System. international financial problems, such as those that have recently arisen for many countries, and some of the regulatory pro- 284 RECORD OF POLICY ACTIONS OF THE posals relating to U.S. banks' participation FEDERAL OPEN MARKET COMMITTEE in international lending activities in the fu- At its meeting on February 8-9, 1983, the ture, before the Subcommittee on Interna- Committee established the following ranges tional Trade, Investment and Monetary Polfor growth of the monetary aggregates: for icy of the House Committee on Banking, the period from February-March of 1983 to Finance and Urban Affairs, April 7, 1983. the fourth quarter of 1983, 7 to 10 percent at 273 Chairman Volcker touches briefly on the an annual rate for M2, taking into account international financial situation, the IMF the probability of some residual shifting into legislation, and the Board's proposals with that aggregate from non-M2 sources; and regard to international lending, before the for the period from the fourth quarter of Senate Committee on Banking, Housing, 1982 to the fourth quarter of 1983, 6V2 to 9Vi and Urban Affairs, April 11, 1983. percent for M3, which appeared to be less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

distorted by shifts associated with new de- 292 LEGAL DEVELOPMENTS posit accounts. For the same period, a Amendment to Regulation D; various bank tentative range of 4 to 8 percent was estabholding company and bank merger orders; lished for Ml, assuming that Super NOW and pending cases. accounts would draw only modest amounts of funds from sources outside Ml and that the authority to pay interest on transaction Ai FINANCIAL AND BUSINESS STATISTICS accounts was not extended beyond currently eligible accounts. An associated range of A3 Domestic Financial Statistics growth for total domestic nonfinancial debt A46 Domestic Nonfinancial Statistics was estimated at 8V2 to IIV2 percent. A54 International Statistics The Committee agreed that the near-term A70 Special Tables outlook for growth in the monetary aggregates remained subject to unusual uncer- A69 GUIDE TO TABULAR PRESENTATION, tainties and that an appropriate assessment STATISTICAL RELEASES, AND SPECIAL of such growth would need to take account TABLES of the distortions that might continue to be created by the introduction of new deposit A80 BOARD OF GOVERNORS AND STAFF accounts. Consequently, the Committee decided that for the more immediate future, A82 FEDERAL OPEN MARKET COMMITTEE open market operations should be directed AND STAFF: ADVISORY COUNCILS toward maintaining the existing degree of restraint on reserve positions. It was agreed A83 FEDERAL RESERVE BANKS, BRANCHES, that lesser restraint would be acceptable in AND OFFICES the context of appreciable slowing of growth in the monetary aggregates to or A84 FEDERAL RESERVE BOARD below the paths implied by the long-term PUBLICATIONS ranges. The intermeeting range for the federal funds rate, which provides a mecha- A86 INDEX TO STATISTICAL TABLES nism for initiating consultation of the Committee, was set at 6 to 10 percent. A88 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1982 Thomas C. Glaessner of the Board's Division of third of the total measured decline in U.S. real International Finance prepared this article. GNP for the year. The strong appreciation of the dollar induced U.S. international transactions in 1982 reflected monetary authorities in some foreign industrial the impact of the longest worldwide recession in countries to undertake sizable net intervention more than a generation. During 1982, average sales of dollars at times during the year. Nevergrowth rates of real gross national product were theless, foreign official reserve assets held in the negative in the United States and other industrial United States rose slightly in 1982 because intercountries, and economic growth in developing vention sales were financed chiefly by liquidacountries as a group slowed to near zero by the tion of reserve assets held outside the United fourth quarter. The U.S. current account balance States and by borrowings in the Eurocurrency moved from surplus into deficit during the year, market. The rise was also the result of the marking the first deficit recorded since 1979. addition by some members of the Organization of Two international developments especially af- Petroleum Exporting Countries (OPEC) and by fected U.S. international transactions during other developing countries to their reserves in 1982. First, several Latin American countries the United States, though at a markedly reduced experienced severe problems in servicing the pace. At the same time, U.S. official reserve debt that they had amassed in their attempts, assets rose during the year, primarily because largely during the 1970s, to finance rapid eco- the U.S. position in the International Monetary nomic growth. Much of this debt was in the form Fund (IMF) increased as foreign countries drew of loans from foreign commercial banks that dollars to help meet external payments difficulcarried floating interest rates; thus difficulties ties. Another factor was U.S. participation in arose when dollar interest rates increased sharp- bridging loans for Brazil and Mexico, which led ly and the worldwide recession reduced the to an increase in U.S. holdings of foreign currenvolume and prices of exports from these coun- cies. tries. U.S. banks accordingly faced the need to Private capital flows in 1982 continued to adjust the repayment terms on loans to some of reflect the growing integration of international these countries, as they did on some domestic financial markets. Private foreigners made large credits. These same debt-servicing problems also net purchases of U.S. Treasury securities and tended to reduce the volume of U.S. exports. U.S. corporate bonds, the latter issued primarily Second, the continuing appreciation of the in the oifshore Eurobond market. Meanwhile, dollar through November 1982, which brought U.S. nonbank residents continued to increase the increase in its value over 2Vi years to 45 their deposits with offshore banking institutions; percent, greatly reduced the price competitive- but the pace was not so strong as it was in 1981, ness of U.S. exports in foreign markets and and it slackened beginning in the second half of encouraged U.S. residents to substitute imports 1982. The financial difficulties of some nonfor domestically produced goods. These relative- OPEC developing countries and the worldwide price effects, coupled with the decline in the recession also affected U.S. bank lending in demand for U.S. exports owing to the worldwide 1982: in the second half outstanding gross claims recession, caused the merchandise trade deficit by banks on the Group of Ten (G-10) countries to grow, particularly during the second half of and offshore banking centers actually fell, while 1982. The decltoe in real U.S. exports of goods growth in such claims on developing countries and services last year accounted for more than a other than OPEC almost came to a halt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 Federal Reserve Bulletin • April 1983 1. U.S. international transactions Billions of dollars, capital inflow (+) 1982 IItteemm 11998800 11998811 11998822 Q1 Q2 Q3 Q4 U.S. current account balance1 1.5 4.5 -8.1 1.0 2.2 -5.2 -6.1 Trade balance -25.3 -27.9 -36.3 -5.9 -5.8 -12.5 -12.1 Other, net 26.9 32.4 28.2 7.0 8.0 7.3 6.0 Foreign official assets in the United States, net (increase, +) 15.4 4.8 3.0 -3.1 2.0 2.5 1.6 Industrial countries 1.0 -12.2 -6.5 -6.8 -1.9 1.9 .3 OPEC 12.8 13.3 7.2 5.0 3.1 .3 -1.2 Other countries 1.8 3.7 2.3 -1.3 .9 .2 2.6 U.S. government reserve assets, net (increase, -) -8.2 -5.2 -5.0 -1.1 -1.1 -.8 -2.0 U.S. government credits, net (increase, -)1 -5.1 -5.1 -5.8 -.9 -1.5 -2.5 -.8 Private capital flows, net -33.7 -25.8 -26.1 -1.1 -7.5 -8.1 -9.3 Allocation of special drawing rights 1.2 1.1 Statistical discrepancy2 28.9 25.8 41.9 5.1 6.0 14.1 16.5 1. Seasonally adjusted. SOURCE. U.S. Department of Commerce, Bureau of Economic 2. Includes seasonal adjustment. Analysis. For the past three years, errors and omissions 1. Interest rate differential and the in the reporting system have limited the useful- weighted-average value of the dollar ness of balance of payments data for analyzing private capital flows and current account transactions. The positive statistical discrepancy (net inflow) arising from these errors and omissions was more than $40 billion in 1982 (table 1). The size of this discrepancy during the past four years most likely reflects greater use of nontraditional channels of financial intermediation, particularly those that bypass U.S. banks and in principle should be reported by nonbanks, and possibly growing inadequacies in the reporting of current account transactions. Exchange value of the U.S. dollar is the index of weighted average exchange value of the U.S. dollar against currencies of other G-10 countries plus Switzerland using 1972-76 total trade weights. Interest rate differential is the interest rate on three-month U.S. CDs minus a EXCHANGE RATE DEVELOPMENTS weighted average of three-month interest rates in other G-10 countries and Switzerland using 1972-76 total trade weights. The weighted average foreign exchange value of the dollar rose 16 percent from the fourth quarter years has been the reduction in inflation brought of 1981 to the fourth quarter of 1982. (Unless about by restraint on the growth of money and otherwise noted, this is the period for which credit. The result has been a decline in the U.S. comparisons are made in this article.) Thus the rate of inflation, from its peak in March 1980 to cumulative rise in the dollar from the summer of December 1982, of 10 percentage points on the 1980 to its peak in November 1982 reached consumer price index and 53/t percentage points nearly 45 percent (chart 1). The dollar's appreci- on the fixed-weight price index for personal ation during 1982 occurred in the face of both a consumption expenditure (chart 2). In contrast, steady decline in the differential between U.S. consumer price inflation in other major industrial and foreign nominal interest rates and a worsen- countries (on a trade-weighted average basis) ing U.S. current account position. One of the declined less than 4 percentage points over the factors strengthening the dollar over the past two same period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1982 253 2. Consumer price index itself to the drop in U.S. consumer price inflation Percentage change from previous year while damping the growth of U.S. real GNP. Simulations performed with the Federal Reserve's Multicountry Model suggest that the appreciation of the dollar over the 2Vi years be- United States tween mid-1980 and the end of 1982 may have acted to reduce the annual rate of consumer price inflation by about 1 Vi percentage points in both 1981 and 1982. The simulations also indicate that U.S. real GNP in 1982 was about Wi percent below the level it would have attained in the absence of the appreciation. Foreign is multilateral^ weighted average of the G-10 countries plus Switzerland using 1972-76 total trade weights. Data for the United MERCHANDISE TRADE States are from the U.S. Department of Commerce. The U.S. merchandise trade deficit increased by nearly a third in 1982 to $36 billion (table 2). A The uncertainty surrounding major debt re- distinct shift took place in the trade balance at structurings and political events abroad also con- midyear: in the first half the deficit was about $25 tributed to the appreciation of the dollar. In that billion at an annual rate, but by the third quarter environment many investors have increased the it was $50 billion. The primary causes of the proportion of assets denominated in dollars they increase were the weakness of economic activity wish to hold in their portfolios. This market view abroad and the decline in the price competitivehas reflected U.S. progress in reducing inflation ness of U.S. goods on world markets owing to and the expectation that economic and political the cumulative appreciation of the dollar. conditions will be more stable in the United Economic activity in 1982, as in the previous States than in other major financial centers. two years, continued to be weak in industrial Accordingly, dollar assets, particularly those countries and in the developing countries outside held within the United States, have become a OPEC (chart 3). Average growth of real GNP in "safe haven" for internationally mobile funds. foreign industrial countries, as in the United The rise in the exchange value of the dollar States, was negative during 1982. Growth of provided important channels through which U.S. macroeconomic policies affected the domestic 3. Real GNP in the United States and abroad economy. The higher exchange value of the dollar contributed directly to the drop in U.S. inflation by lowering prices of imported goods. In addition, the appreciation of the dollar indirectly damped domestic inflation as lower prices of imported goods intensified competitive pressures on U.S. producers and reduced the cost-ofliving adjustments in wage contracts. The decline in the price competitiveness of U.S. goods and the subsequent drop in net exports also contributed to the decline in real GNP in 1982. Moreover, to the extent that the movements in the V The index for developing countries other than OPEC is based on exchange value of the dollar reflected financial arithmetic averages of the annual growth rates of individual countries weighted by their average share over the previous three years of total difficulties in various countries that were inde- GNP (in dollars) of all those countries. The foreign industrial real GNP pendent of U.S. macroeconomic policies, the index is the weighted average of the G-10 countries plus Switzerland using 1972-76 total trade weights. Data for the United States are from appreciation of the dollar contributed in and of the U.S. Department of Commerce. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 Federal Reserve Bulletin • April 1983 2. U.S. merchandise trade, international transaction basis Billions of dollars, seasonally adjusted annual rate 1981 1982 IItteemm 11998811 11998822 Q4 Q1 Q2 Q3 Q4 Value Exports 236.3 211.0 230.4 222.4 220.0 209.3 192.3 Agricultural 44.3 37.4 42.4 41.6 42.3 33.6 32.3 Nonagricultural 192.0 173.6 188.0 180.8 177.7 175.8 160.0 Imports 264.1 247.3 267.1 246.2 243.1 259.3 240.8 Petroleum 77.6 61.2 72.4 62.6 53.6 65.8 62.8 Nonpetroleum 186.6 186.1' 194.7 183.6 189.4 193.5 178.0 Trade balance -27.9 -36.3 -36.7 -23.8 -23.0 -50.0 -48.5 Volume (1972 dollars) Agricultural exports 18.1 17.2 18.6 18.3 19.1 15.8 15.6 Nonagricultural exports 70.5 60.8 66.5 62.7 62.1 62.0 56.1 Petroleum imports 5.9 5.0 5.8 5.0 4.5 5.5 5.2 Nonpetroleum imports 72.1 71.9 76.3 69.6 72.6 75.4 69.9 SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, and Bureau of the Census. production in developing countries decreased but it was the shifts in volume that accounted for sharply during the year to an average of 1 percent most of the change in the trade balance. (year over year), much less than half the rate The volume of nonagricultural exports fell 16 during the 1970s. Many of these countries need- percent during 1982, primarily because of a deed to restrain growth in aggregate demand to cline in their price competitiveness. The fall in more sustainable rates and to curtail imports in volume was distributed fairly evenly among maorder to help meet the large payments due on jor commodity groups: half was with the major external debts. industrial countries, particularly Canada and The competitiveness of U.S. goods on world Western Europe, and the other half was with markets was eroded between the summer of 1980 Latin American countries, especially Mexico. and November 1982. This loss is measured by The volume of agricultural exports fell 16 the rise of roughly 40 percent in the price- percent during the year, the sharpest drop since adjusted value of the dollar over this period 1974. Steep declines for wheat, corn, and soy- (chart 4). Such a rise indicates broadly that the beans accounted for most of the decrease. Good relative price of U.S. exports to foreigners rose crops worldwide, the sluggish world economy, while the relative price of U.S. imports fell. and the appreciation of the dollar were partly Estimates made by the Federal Reserve Board staff using econometric models suggest that, with everything else equal, each 1 percent apprecia- 4. Average exchange value of the U.S. dollar tion of the dollar depresses the U.S. merchandise March 1973=100 trade balance $2 billion (annual rate) after two years; most of the effect is felt in the second year. According to these estimates, the appreciation of the dollar in the second half of 1980 and 1981 contributed substantially to the sharp rise in the U.S. trade deficit in the latter half of 1982. The value of exports declined steadily during 1982, falling more than 16 percent (table 2). In contrast, the value of imports held up during the first three quarters of the year and dropped 1978 1980 1982 sharply only in the fourth quarter. Prices of both Price-adjusted dollar is the weighted average dollar multiplied by exports and imports fell during most of the year, relative consumer prices (U.S. divided by foreign consumer prices). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1982 255 responsible for the large declines in both the 3. OPEC official price and Rotterdam spot market volume and the prices of agricultural exports. price of crude oil These factors accounted for accumulation of Dollars per barrel grain inventories in the United States by year- Price of Mideast light oil end that were 12 percent of total world grain OOPPEECC Rotterdam OPEC ooffffiicciiaall pprriiccee production, compared with 8.5 percent at the end YYeeaarr oorr spot official Difference, ((aavveerraaggee ffoorr of 1981. Inventories of grain, corn, and other qquuaarrtteerr price1 price2 (1) - (2) aallll ccrruuddee ooiill))33 agricultural commodities increased more in the (1) (2) (3) (4) United States than in other major exporting 1973 ... 2.81 2.64 .17 3.39 countries, partly because the United States and 1974 ... 10.98 9.56 1.42 11.29 1975 ... 10.43 10.46 -.03 11.02 the European Community use different types of 1976 ... 11.63 11.51 .12 11.77 subsidies to support the prices of such goods. In 1977 ... 12.57 12.40 .17 12.88 the United States, large crop loans by the Com- 1978 ... 12.91 12.70 .21 12.93 1979 ... 29.19 17.84 11.35 18.67 modity Credit Corporation and other price sup- 1980 ... 35.85 29.38 6.47 30.87 1981 ... 34.29 33.16 1.13 34.50 ports encourage farmers to hold larger inven- 1982 ... 31.76 33.51 -1.75 33.63 tories. By contrast, the European Community 1981 subsidizes the exports of agricultural commod- Ql... 37.73 32.50 5.23 34.84 Q2... 33.70 33.00 .70 34.64 ities. Q3... 32.06 33.05 -.99 34.06 Q4... 33.68 34.10 -.42 34.48 The volume of oil imports declined 10 percent during 1982. The main cause was a decline in oil 1982 Ql... 31.00 33.80 -2.80 34.05 consumption due partly to the U.S. recession. Q2... 32.29 33.43 -1.14 33.37 Q3... 31.98 33.57 -1.59 33.57 Other factors were conservation and the substi- Q4... 31.75 33.23 -1.48 33.53 tution of other energy sources for oil in the wake 1. Composed mainly of spot prices for Arabian light, with a small of the oil price shocks of 1973-74 and 1979-80, adjustment for spot prices of Dubai light. both illustrated by the decrease in the ratio of oil 2. Composed of the official prices for Arabian, Iranian, and Dubai light, and Iraq Basrah and Iraq Kirkuk crudes, weighted by exports. consumption to GNP (chart 5). Also contributing 3. Composed of the official prices for crudes from all 13 OPEC were the large inventory drawdowns of petro- countries, weighted by their exports. leum and petroleum products by U.S. oil compa- SOURCES. Petroleum Intelligence Weekly, and other published data. nies, particularly in the first half of 1982. Average prices of imported oil fell from a peak of $36 per barrel in early 1981 to $31 per barrel at the tion of a large surplus on world oil markets after end of 1982. The decline reflected the accumula- the price hikes imposed by OPEC in the seventies and the weakening of world demand. The extent of that weakness was suggested by the 5. Oil consumption/GNP index and oil import price widening gap between the Rotterdam spot price 1973-100 Dollars per barrel and the official posted price for Mideast light crude, which indicated discounting by oil producers both within and outside OPEC (table 3). In fact, OPEC initiated a round of official price cuts in early 1983. The volume of non-oil imports rose gradually during the first three quarters of last year despite sluggish activity in the United States. That rise was partly in response to the relative decline in prices of such imports caused by the appreciation of the dollar. In the fourth quarter the volume of non-oil imports fell sharply, account- The import price of petroleum and products is the average quarterly ing for most of the total 8 percent drop over the unit value of U.S. imported oil, measured in dollars per barrel. The year. The decline was spread among all major ratio of oil consumption to GNP is a four-quarter moving average of U.S. oil consumption (millions of barrels per day) divided by U.S. real commodities; it was concentrated in imports GNP (1973=100). Data are from the U.S. Departments of Commerce from the major industrial countries, and may and Energy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 Federal Reserve Bulletin • April 1983 have been related to the sharp liquidation of U.S. 4. U.S. current account business inventories toward the end of the year. Billions of dollars, seasonally adjusted annual rate Among non-oil commodities, the volume of 1982 steel and car imports declined. Steel imports fell IItteemm 11998811 11998822 steadily throughout 1982, largely because of Q1 Q2 Q3 Q4 weakening U.S. economic activity; but con- U.S. current sumption of domestic steel declined even more account balance .. 4.5 -8.1 4.1 8.8 -20.9 -24.4 rapidly, and imports therefore accounted for a Merchandise trade, net -27.9 -36.3 -23.8 -23.0 -50.0 -48.5 record 22 percent of steel consumption. Only a Investment income, small part of the decline in imports appears to be net 33.0 28.7 27.5 30.8 28.3 28.3 related to uncertainty about the outcome of what Direct, net 24.1 18.1 17.3 17.8 17.0 20.1 Portfolio, net 9.0 10.7 10.2 13.0 11.3 8.2 turned out to be a ten-month dispute over steel Other services, net... 6.0 7.3 8.6 8.0 7.4 5.6 trade between the United States and the European Community. That dispute ended in October Unilateral transfers... -6.6 -7.9 -8.2 -7.0 -6.6 -9.7 with an agreement limiting European exports of SOURCE. U.S. Department of Commerce, Bureau of Economic carbon and alloy steel to the United States. Analysis. Weak demand in the U.S. market and the agreement with Japan that limits annual Japanese car drop was not enough to offset the fall in receipts. exports to this country to 1.68 million units U.S. net portfolio income continued to increase reduced the number of passenger car imports in the first half of the year—a result of rising net from 1981 levels. Japanese cars accounted for 23 recorded U.S. claims on foreigners and high percent of new car sales in 1982, about the same dollar interest rates. However, the decline in as in 1981. These and other moves toward pro- those rates in the second half of 1982 contributed tectionism in the United States and other coun- to a fall in net portfolio income, particularly in tries threatened the open trading system that has the fourth quarter. contributed to growth in the U.S. economy in the The persistence of large net unrecorded inpostwar era. flows (which have shown up as large positive statistical discrepancies in the past four years) has made it increasingly difficult to assess the NONTRADE CURRENT ACCOUNT accuracy of the measured current account. If the TRANSACTIONS cumulated statistical discrepancies of the past four years were interpreted entirely as net capital The U.S. current account was in deficit by $8 inflows, the stock of debt to foreigners, interest billion in 1982, the first recorded deficit in three payments to foreigners, and the current account years (table 4). The rising merchandise trade deficit would be substantially understated. Alterdeficit caused most of the movement; but a natively, if the entire $42 billion statistical disreduction in the surplus in nontrade items was crepancy for 1982 were interpreted as unreported responsible for about a fourth of the swing. trade or service receipts, the current account Much of the $4 billion drop in the nontrade would have been in surplus last year. Knowing current account surplus in 1982 stemmed from a the cause of the statistical discrepancy is imporloss in net receipts of direct investment. Gross tant: if the cause is unreported receipts of goods receipts fell 25 percent to $24 billion in 1982, or services, the implication is a continuing strong after a 15 percent drop in 1981. The major cause current account position, whereas this may not was the reduction in overseas earnings of U.S. be the case if the errors and omissions represent business brought about by the worldwide reces- capital flows, which can be quickly reversed. sion and the appreciation of the dollar. The overseas profits of oil companies were particularly depressed. Direct investment payments OFFICIAL CAPITAL FLOWS also fell, more than 25 percent to $5.5 billion, as the recession adversely affected the profits of Foreign official reserve assets held in the United businesses in the United States; however, the States increased about $3 billion in 1982, some- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1982 257 what less than they did the year before (table 1). currencies of foreign industrial countries (G-10 Reserve inflows from members of OPEC de- and Switzerland) rose $0.7 billion equivalent of clined markedly from 1981 because OPEC had a interest earnings, but fell on balance as $1.8 combined current account deficit estimated at billion equivalent was used to repay Treasury $10 billion, the first such deficit in the past four debt denominated in foreign currencies (Carter years. Drawdowns of reserves in the United notes) that came due during the year. The U.S. States by foreign industrial countries were small- reserve position in the IMF also increased $2.6 er in 1982, in spite of a step-up in intervention billion equivalent during the year, while holdings sales of dollars associated with the sharp appre- of special drawing rights increased $1.3 billion ciation of the dollar and exchange market pres- equivalent. Both changes were the result of use sures for some of the countries in the European of the fund's facilities by countries in financial Monetary System. Net intervention sales of $40 difficulties. billion apparently were financed chiefly by liquidation of reserve assets held outside the United States and by borrowing from the Euromarket PRIVATE CAPITAL FLOWS and other sources. U.S. official reserve assets expanded $5 billion Net recorded outflows of private capital inin 1982 (table 1). One-fifth of this expansion was creased slightly to about $26 billion in 1982 (table attributable to a rise in holdings of foreign cur- 5). If the errors and omissions are assumed to be rency. That rise in turn stemmed from acquisi- unrecorded private capital inflows and are added tions of foreign currencies in connection with to the recorded outflow, there would have been a $2.1 billion in U.S. official credits extended to combined net capital inflow last year. Within the Brazil and Mexico, which were partly offset by a recorded total were small rises in net outflows $1.1 billion drop in holdings of the currencies of reported by banks (excluding their custody acthe G-10 countries and Switzerland. The credits counts) and in reported transactions in private to Brazil and Mexico were made by the Trea- securities with foreigners. sury's Exchange Stabilization Fund, which pro- Net direct investments (U.S. direct investment vided dollars to those two countries in exchange abroad and foreign direct investment in the Unitfor their own currencies, and by the Federal ed States) registered a net inflow of about $12 Reserve, under the Mexican swap arrangement. billion, a slight decrease from the unusually large When the credits mature and are repaid, the amount recorded in 1981 (table 6). In the past transfers will be reversed at the same rate of year, however, striking changes occurred within exchange. By the end of last year, some of these the category. Foreign direct investment in the credits had already been repaid. U.S. holdings of United States totaled about $9 billion, a steep 5. Private capital flows, net Billions of dollars, capital inflow (+) 1982 IItteemm 11998800 11998811 11998822 QL Q2 Q3 Q4 Private capital flows, net -33.7 -25.8 -26.1 -1.1 -7.5 -8.1 -9.3 Bank-reported capital, net -36.1 -43.3 -43.8 -7.3 -14.4 -9.7 -12.4 Own accounts -30.1 -33.1 -39.6 -1.4 -14.9 -12.9 -10.4 Custody accounts -6.0 -10.2 -4.3 -5.9 3.6 3.2 -2.1 U.S. net purchases of foreign securities (increase, -) -3.5 --55..44 --77..88 --..55 -.4 -3.3 -3.5 Foreign net purchases of U.S. securities (increase, +) 8.1 10.0 1122..99 2.6 44..66 11..55 4.2 U.S. Treasury securities 2.6 2.9 6.9 1.3 2.1 1.3 2.3 Other U.S. securities 5.5 7.1 6.0 1.3 2.5 .2 1.9 Direct investments, net1 -5.6 12.6 11.6 1.0 5.3 2.9 2.4 Other corporate capital, net 3.4 .2 1.0 3.1 -2.6 .5 n.a. 1. Includes reinvested earnings, SOURCE. U.S. Department of Commerce, Bureau of Economic n.a. Not available. Analysis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 Federal Reserve Bulletin • April 1983 6. Direct investment components of private capital ket. Roughly 80 percent of all U.S. corporations flows issuing Eurobonds during 1982 had Standard and Billions of dollars; capital inflow (+) Poor's corporate bond ratings of A or better, a somewhat larger percentage than in previous Item 1979 1980 1981 1982 years. U.S. financial institutions, utilities, oil Direct investments, net -13.3 -5.5 12.6 11.6 refiners, chemical producers, and machinery and Foreign direct investment in equipment manufacturers were the major U.S. the United States 11.9 13.7 21.3 9.4 U.S. direct investment borrowers in 1982. abroad -25.2 -19.2 -8.7 2.2 Netherlands Antilles fi- Two factors contributed to this change in nance subsidiaries equity and intercom- corporate funding practices. First, in light of the pany accounts 1.3 2.7 3.6 9.7 historically high levels of long-term interest rates Other U.S. direct investment abroad -26.5 -21.9 -12.3 -7.5 in the first half of 1982, U.S. corporations were more willing to tailor their issues to the tradition- SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis. al medium-term maturities in the Eurobond market. Second, U.S. corporate borrowers took decline from the peak net inflow in 1981, which greater advantage of certain provisions of the tax had reflected two large corporate takeovers in- treaty between the United States and the Nethervolving foreign investors. lands Antilles. Under that treaty, a parent com- In 1982, for the first time, a small net inflow pany need not collect U.S. withholding taxes on was recorded for U.S. direct investment abroad; the interest paid on loans from its own financing 1981 had seen a net outflow of $8.7 billion. This affiliate in the Netherlands Antilles. The implicareversal was attributable primarily to the rapid tion is that a foreign investor who purchases a growth in U.S. corporate borrowings in the Eu- Eurobond issued by such a financing affiliate robond market. Such offerings rose from about receives interest without a deduction for U.S. $3 billion in 1979 to roughly $14 billion in 1982 withholding tax. That provision often makes (table 7). Nearly all of these issues were sold by borrowing by U.S. corporations through their financial affiliates of U.S. companies in the Neth- financing affiliates in the Netherlands Antilles erlands Antilles, which forward the proceeds to less costly than in the United States itself. their parent companies. The growth of Eurobond During 1982, foreign residents were again acissuance by U.S. corporate borrowers, from 8 tive in U.S. financial markets. On net, they percent of total domestic and international bond purchased $6 billion of U.S. corporate securities issuance in 1979 to 20 percent in 1982, reflected a and nearly $7 billion of U.S. Treasury securities major shift in U.S. corporate funding practices. (table 5). This overall rise in foreign demand for The number of U.S. corporations using the Euro- dollar-denominated assets was attributable, bond market has grown rapidly (chart 6), and the among other things, to the actual and expected strongest U.S. firms have dominated this mar- strong appreciation of the dollar, to relatively 7. Domestic and international bond issuance by U.S. corporate borrowers Dollar amounts in billions 1982 PPllaaccee ooff iissssuuaannccee 11997799 11998800 11998811 11998822 QL | Q2 03 Q4 Domestic 40.2 53.2 44.6 53.2 8.4 10.4 16.2 18.2 Percent of total 92 92 87 80 66 69 85 91 International' 3.4 4.4 6.7 13.6 4.3 4.6 2.8 1.9 Percent of total 8 8 13 20 34 31 15 9 Total 43.6 57.6 51.3 66.8 12.7 15.0 19.0 20.1 1. International amounts based on net proceeds, which differs from SOURCES. Securities and Exchange Commission registrations; Morface value because of the issuance of zero-coupon and partial- gan Guaranty, World Financial Markets; Agefi; Salomon Brothers, payment bonds. International Bond Market Roundup; Wall Street Journal; and New York Times. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1982 259 6. U.S. corporate borrowers in the Eurobond market Private U.S. residents other than banks added to their deposits in offshore banking offices at Number of corporations about half the pace of 1981. After accelerating in the first half of 1982, total holdings of Eurodollars by U.S. nonbank investors declined in the second half; and this decline has continued into early 1983 (table 8). Partial data from the foreign branches of U.S. banks indicate that term Eurodollars held by U.S. nonbank residents declined about $3 billion in January, bringing the cumulative fall since the end of November to about $6 The height of each step equals the number of U.S. firms in any year issuing Eurobonds for the first time. billion. Over those two months, holdings by money market mutual funds (MMMFs) of overhigh real U.S. interest rates, and to financial and night Eurodollar deposits and London certifipolitical instabilities abroad. Foreign residents cates of deposit (CDs) fell about $2.4 billion and also made greater use of U.S. financial markets $3 billion respectively. The decline in holdings of as a source of credit. Foreign bond issues in the MMMFs was a by-product of reductions in their United States totaled about $6 billion in 1982, total assets as investors shifted their accounts at marking a continuation of the growth in 1981. those funds to the initially higher-yielding, in- Many of these bond issues were floated in the sured money market deposit accounts (MMDAs) latter half of the year as long-term interest rates introduced in December 1982. declined from their peak in June 1982. Foreign Net outflows from banks (excluding bank cusentities issued more commercial paper in the tody accounts) totaled about $40 billion in 1982, a United States, particularly in the first half. About slight increase over previous years (table 5). The $13 billion of foreign commercial paper was net positions of U.S.-chartered banks with their outstanding at year-end, an increase of about $2 foreign offices have changed little since the large billion from the end of 1981. Foreign banking net borrowing from foreign offices in December institutions accounted for roughly 75 percent of 1981 and January 1982 associated with the shifts the increase. As these foreign institutions have of assets from foreign branches to international become more familiar to U.S. investors, the banking facilities (IBFs) (table 9). Small regional yields on their issues have approached those on banks made net advances of $8.5 billion to their high-quality domestic commercial paper. During foreign offices during the year (table 9, line 3), the first half of last year, these rates were also the bulk of which was placed with foreign offices below the rates that these institutions had to pay of foreign banks in the Eurocurrency interbank for Eurodollars so that foreign institutions had a market. further inducement to issue commercial paper in The pronounced outflow of funds from Unthe U.S. market. chartered banks of all sizes (including IBFs) to 8. Eurodollar holdings of U.S. nonbank residents Billions of dollars, end of period 1982 1983 TTyyppee ooff hhoollddiinngg 11998800 11998811 Q1 Q2 Q3 Q4 Jan. Total holdings 60.8 93.6 104.2 116.0 111.5 110.3 107.2' London CDs 18.0 33.2 40.6 46.9 48.4 47.0 n.a. Time deposits 42.8 60.4 63.6 69.1 63.1 63.3 n.a. MEMO: Holdings of London CDs by money funds— 5.7 16.8 19.8 19.7 20.4 21.1 19.0 1. Estimate based on information from foreign branches of U.S. SOURCE. Data on total Eurodollar holdings are obtained from banks outside the United Kingdom, member banks, the Bank of England, and the Bank of Canada. Data n.a. Not available. on Eurodollar holdings of money market mutual funds are obtained from the Investment Company Institute. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 Federal Reserve Bulletin • April 1983 9. Positions of U.S.-chartered banks with own foreign offices, by institutions ranked according to size1 Billions of dollars, net due to own foreign offices (+) 1981 1982 1983 RRaannkk Dec. Jan. Mar. June Sept. Dec. Jan. Feb. Mar. All banks .. -9.0 -3.2 -2.7 2.6 -4.6 -3.2 -13.5 -14.2 -17.2 Top 9 -.6 2.8 6.0 12.9 7.5 9.9 4.1 4.8 2.9 Next 15.... 3.0 4.7 3.3 4.9 4.5 6.1 3.8 3.3 3.2 All other... -11.5 -10.7 -12.1 -15.2 -16.7 -19.2 -21.5 -22.3 -23.2 1. Average of Wednesday data. Institutions are ranked by total SOURCE. Data on international banking facility accounts, FR 2072; assets. International banking facilities are included as domestic of- and data on Eurocurrency transactions, FR 2950. fices. their own foreign offices at the end of last year OUTLOOK and in early 1983 was indicative of changing patterns in bank funding. The changes came in In the first quarter of 1983, the weighted average response to the large expansion in U.S. bank value of the dollar rose slightly, reversing some deposit bases brought about through the intro- of the depreciation of the last few months of 1982 duction of MMDAs and Super NOW accounts. (chart 1). The recent appreciation took place in Thus U.S. banks as a group began to rely less the context of market uncertainty about the heavily on the London dollar CD market as a worsening debt situation of various developing source of funds: Eurodollar CDs outstanding at countries. Late in the quarter, some firming in their London branches dropped $5 billion be- U.S. short-term interest rates and declines in tween December 1982 and mid-February 1983. interest rates in several European countries also This drop was mirrored in the domestic CD helped to strengthen the dollar. market as banks also issued fewer CDs there. Data on foreign industrial production for the Data on the combined operations of U.S. and first few months of 1983 suggest that a recovery foreign offices of U.S.-chartered banks (not part is finally under way in several major foreign of the balance of payments accounts) reveal a countries. As in the United States, the rate of slowdown in lending by those banks to develop- inflation continued to drop in most foreign indusing countries other than OPEC and the G-10 trial countries and unemployment rates remained countries. Gross claims on those developing very high. The recovery is expected to be somecountries increased only $3 billion in the second what stronger in the United States than in other half of 1982; those on Latin American countries industrial countries, while developing countries rose only $1 billion, less than half as much as in are likely to grow quite slowly. the previous six months. Gross claims on the The outlook for the U.S. current account in G-10 countries and offshore banking centers ac- 1983 is dominated by the lagged effects of the tually declined in the second half, suggesting that dollar's appreciation during recent years. U.S. the decline in the growth of lending from the first exports are likely to be damped by the relatively to the second half of 1982 was worldwide. high exchange value of the dollar despite the Two factors contributed to this decline in recovery expected in the economies of our tradworldwide lending. First, banks became more ing partners. U.S. imports may be raised by the cautious about lending to developing countries moderate recovery of the domestic economy that outside OPEC after the Mexican crisis in the seems to be in prospect. On the other hand, the spring and summer. This caution had an impact effects on the current account of these factors beyond direct lending to those countries. It may will be partly mitigated by a lower bill for importalso have led to a slowing of lending to banks in ed oil primarily due to recent reductions in the G-10 countries and offshore banking centers, OPEC oil prices. On balance, the lagged effects which use funds borrowed from U.S.-chartered of the dollar's appreciation and the impact of banks to lend to other countries. Second, the relatively strong U.S. demand are likely to domiworldwide recession may have also slowed the nate, and the current account deficit of 1982 is demands for credit from U.S. banks. likely to widen in the second half of 1983. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

261 Industrial Production Released for publication April 15 average, industrial production in March had risen more than 3 percent from its November low, Industrial production increased 1.1 percent in reflecting significant gains in the output of auto- March after rising 0.3 percent in February and motive products, construction supplies, and du- 1.5 percent (revised upward) in January. In rable materials, especially steel. March, large gains occurred in the output of In market groupings, production of consumer construction supplies, durable and nondurable goods in March rose 0.8 percent—the fourth materials, and consumer goods other than autos successive monthly gain—despite a decline in and appliances. At 139.1 percent of the 1967 auto assemblies to an annual rate of 5.8 million 1977 1979 1981 1983 1977 1979 1981 1983 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: March. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 Federal Reserve Bulletin • April 1983 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1983 1982 1983 MMMaaarrr... 111999888222 tttooo MMMaaarrr... Feb.p Mar.e Nov. Dec. Jan. Feb. Mar. 111999888333 Major market groupings Total industrial production 137.6 139.1 -.6 .2 1.5 .3 1.1 -1.8 Products, total 140.5 141.7 -.2 .6 .6 -.1 .9 -1.4 Final products 139.6 140.5 -.3 .9 .4 -.3 .6 -2.0 Consumer goods 144.2 145.3 -.6 .5 1.1 .4 .8 2.7 Durable 134.0 134.3 -1.5 1.0 4.5 1.8 .2 4.8 Nondurable 148.3 149.6 -.4 .3 -.1 .0 .9 1.9 Business equipment.. 143.3 143.9 -.5 1.2 -1.1 -2.2 .4 -14.9 Defense and space ... 116.5 117.4 1.5 2.0 .2 .3 .8 9.7 Intermediate products .. 143.9 146.2 .1 -.2 1.3 .4 1.6 .7 Construction supplies 128.2 131.5 .7 -.3 3.3 .9 2.6 4.7 Materials 133.2 135.0 -1.2 -.5 3.1 1.1 1.4 -2.5 Major industry groupings Manufacturing 137.4 139.2 -.7 .4 1.6 .6 1.3 -.6 Durable 123.5 125.3 -.8 .5 2.0 1.0 1.5 -2.3 Nondurable 157.5 159.2 -.6 .2 1.1 .1 1.1 1.2 Mining 115.8 113.6 .8 1.4 2.5 -4.6 -1.9 -17.7 Utilities 164.1 165.9 -.7 -1.5 -.7 .6 1.1 -2.4 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. units from 6.3 million in February. However, than final products, increased 1.4 percent in output of trucks for consumer use increased March. Production of durable materials rose sharply again. Production of home goods rose 1.6 significantly, with gains widespread. Among percent, primarily reflecting gains in output of nondurable materials, textiles and chemicals adcarpeting and furniture while production of appli- vanced sharply. Output of total energy materials ances changed little. Gains in output of nondura- declined. ble consumer goods were widespread, with a In industry groupings, manufacturing output particularly large rise in gasoline production. increased 1.3 percent in March, but was still 9 Output of business equipment increased 0.4 per- percent lower than its previous high in July 1981. cent in March as manufacturing, power, and Output of durables, most notably steel, furniture, transit equipment advanced, but mining equip- and lumber, advanced sharply again in March. ment declined further. Production of defense and Production of nondurables rose about 1 percent, space equipment continued to increase and was with most industries registering gains. However, almost 10 percent more than a year earlier. output of mining fell almost 2 percent as coal Output of construction supplies rose sharply, production and activity in oil and gas well drilling especially items used in the housing industry. were curtailed further. The output of electric and Output of materials, which rose more strongly gas utilities rose 1.1 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

263 Statements to Congress Statement by Preston Martin, Vice Chairman, could play a major role in ensuring that the Board of Governors of the Federal Reserve Sys- recovery will be a sustainable one. Interest rates tem, before the Subcommittee on Consumer on most forms of credit used by consumers have Affairs of the Committee on Banking, Housing, been coming down recently, and further declines and Urban Affairs, U.S. Senate, March 17,1983. apparently are in train for some types of loans. The dimensions of the declines we can look I appreciate the opportunity to appear before this forward to differ for various types of loans— subcommittee on behalf of the Federal Reserve partly because of the characteristics of particular to discuss consumer interest rates. I feel that the markets, differences in administrative costs, and subcommittee has adopted a very appropriate the extent to which the earlier upward rate focus on consumer finance at this early stage in movements had been constrained by usury ceilwhat is expected to be a "consumer-led" recov- ings. Because of the nature of the markets inery. Increased purchases by households of volved, consumer loan rates have typically fluchomes, autos, durables, and other goods and tuated less widely than other rates in response to services, if sustained, will tend to induce mer- changes in cyclical movements of the economy, chants and manufacturers to restock inventories, and I believe there is nothing particularly unusuincrease production, and eventually hire or re- al in the recent patterns of interest rate movehire those who are suffering unemployment and ments. Some say that the pricing of consumer underemployment. and other loans by certain institutions may re- Interest rates are important to the consumer. flect caution with respect to potential loan losses Various public opinion polls have indicated that in foreign, agricultural, and energy-related credshoppers consider interest rates to be quite high it. However, our experience has been that preand that postponement of purchases often is sent-day credit markets generally are too comattributed to rates that exceed what the consum- petitive and too fluid for lending institutions to er thinks is acceptable. Recent surveys of con- extract excessive profits in any given market sumer attitudes indicate that many shoppers for over any significant period of time. credit are willing to pay around 11 percent to Nevertheless, it is true that on some kinds of finance purchases. At the same time, as you are consumer credit rates have come down less than well aware, the merchant or lender generally rates on business loans or on Treasury bills. requires rates of 14 percent or more. Short-term market rates generally are 9 to 10 Of course, interest rates are not the only percentage points below their earlier peaks; longconstraint on increased spending by households. term market rates are 4 to 5 percentage points Unemployment is very high and the pronounced lower. Mortgage rates are the exception among slowing of inflation has removed much of the consumer credit, rates have come down less than motivation for "hedge buying." House prices in Mortgage Corporation quotation of 12.79 percent some areas have declined and mortgage refinanc- on conventional home loans last week was nearly ing may be costly. Saving looks more attractive 6 percentage points below the peak in 1981. via the higher returns offered through new mon- Mortgage rates, of course, are a good deal ey market deposit accounts and the tax advan- more closely tied to market rates than are other tage offered by more liberal provisions of individ- types of consumer credit, because of the increasual retirement accounts (IRAs) and Keogh ing use of mortgage-backed securities and the accounts. secondary mortgage market. Those who origi- Given the present environment of a modest nate mortgages more and more are a different and uncertain recovery, consumer interest rates group from those who invest in them. Installment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 Federal Reserve Bulletin • April 1983 loans, revolving credit, and other consumer come down about in line with other long-term credit forms generally have no true secondary market yields. Federal Reserve data on consummarket, and thus rates tend to be "sticky" er finance rates, however, show a mixed pattern. relative to open market and mortgage rates. In early February, average consumer finance Some loan originators sell the consumer "paper" rates (APR) at reporting banks were down from they originate, but these transactions tend to be peak levels, as follows: new auto loans, down bulk sales to a commercial bank or some other 2.55 percentage points (maturity of 36 months); buyer, not to capital market investors. Thus the mobile home loans, down 1.70 (maturity of 84 majority of installment and revolving loans are months); other consumer goods and personal held in the portfolios of the originators. The very expenditures, down 1.62 points (maturity of 24 marketability of the mortgage loan may result in months). Average rates on bank credit card plans a lower rate compared with a largely nonmarket- rose in February 1983 to a level of 0.75 percentable consumer credit contract. age point above those in February 1982. An additional factor is that mortgage loans are much larger, on average, than other types of consumer credit. Data of the Federal Home Consumer Installment Loans Loan Bank Board for February indicated conventional (75 percent of value) loans ranging The reductions in rates on consumer installment from about $42,000 in Pittsburgh to around loans, to be sure, have been modest when com- $108,000 in the San Francisco area. Other than pared with other types of interest rates. Spreads chattel mortgages for mobile homes, most con- between installment loan rates and the bank sumer loans are for amounts ranging from a few prime lending rate have risen since the middle of hundred dollars to something like $10,000. Thus last year, and much the same pattern is evident the mortgage lender can spread his costs of loan when comparisons are made with rates on certifiorigination, servicing, and collection over a larg- cates of deposit at banks or with yields on er base. Faced with somewhat similar adminis- Treasury securities having maturities comparatrative costs and higher collection or servicing ble with those for consumer loans. However, outlays, the supplier of consumer credit tends to these various yield spreads—while relatively need a higher percentage rate of interest. large—are not out of line with spreads that emerged during the 1970s. It should be stressed that the recent increases RECENT BEHAVIOR in spreads between installment loan rates and OF CONSUMER INTEREST RATES other yields followed substantial reductions in spreads that occurred as market interest rates What factors explain the relative insensitivity of climbed during the 1977-81 period. This pattern, consumer rates to the dramatic decline in other also evident during earlier interest rate cycles, rates in recent months? Households borrow suggests that recent movements have mainly funds primarily in three forms that are, to some reflected fundamental market mechanisms. extent, substitutes for each other. These forms There are several reasons why rates on conare consumer installment loans, open-end or sumer installment loans tend to lag movements in "revolving" credit card plans, and mortgage open-market rates of comparable term and tend loans collateralized by homes. Movements in to move over a narrower range during the cycle. interest rates on these types of borrowing have As interest rates peak, state usury ceilings may differed considerably in recent periods. Changes limit upward movements in consumer loan rates, among the various rates paid by households and encouraging lenders to tighten nonrate loan movements in consumer rates relative to other terms and lending standards. Subsequently, rates have largely reflected two factors: the when market yields decline, lending terms and degree of credit market segmentation and the standards tend to ease first, followed by downimpact of artificial constraints on rate move- ward adjustments in consumer loan rates. Clearments in the consumer-oriented market sectors. ly, interest rate ceilings in various states constrained upward movements in installment loan As mentioned, home mortgage rates have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 265 rates to some extent in 1981-82, even though less. Under these conditions, of course, banks many states adjusted their statutes and federal resorted to other ways of passing on the rising law enacted early in 1980 provided a limited cost of their card plans as the profitability of this preemption of state limits for all federally insured function plummeted. Many institutions imposed depository institutions. annual fees on their credit cards and also raised In addition, the sluggish movement of consum- their merchant discounts; that is, the percentage er loan rates also is attributable to the imperfec- deducted by the bank from the face amount of tions in the linkages between consumer credit receivables purchased from retailers. markets and other components of our credit Increases in average bank credit card rates system—as I noted earlier. Imperfect linkages to during the past year reflect upward adjustments the general capital markets, of course, do not to rate ceilings by some states, and shifts of imply that individual lenders can maintain con- credit card operations by some banks to states sumer loan rates far out of line from those with higher ceilings or with no ceilings at all. prevailing at other institutions in their local mar- States like South Dakota and Delaware became kets. Although households may not shop as the haven for the credit card operations of a intensively for rates on short-term consumer number of large banks located in states with loans as they do for rates on large and long-term more restrictive interest rate limitations. home mortage loans, competition in the primary markets for consumer loans is increasing. In support of that thesis, there is evidence that OUTLOOK FOR CONSUMER LOAN RATES savings and loan associations, a relatively new entrant in many of these functions, are currently Further movements in interest rates on home expanding their nonmortgage portfolios to put mortgages will depend primarily on developthe dollars from money market deposit accounts ments in the markets for longer-term debt instruand Super NOW accounts to work. These insti- ments. Average rates on credit card accounts tutions are fast becoming a factor in the growth may continue to be influenced, at least in the of consumer installment credit. In January of this short run, by changes in usury statutes and by year, savings and loans increased their participa- interstate shifts of credit card operations by tion in the consumer installment credit market at banks seeking to bolster the profitability of their an annual rate of nearly $5 billion, and they plans; increases in rates associated with these increased their credit outstanding 22 percent factors, of course, may be accompanied by over the 12 months ending in January. downward adjustments in annual card fees and merchant discounts. With respect to closed-end consumer installment loans, average interest Bank Credit Cards rates could fall somewhat further in the near future. If so, this development would reflect the Although rates on closed-end consumer install- usual lagged adjustment of these loan rates bement loans have been declining, albeit sluggish- hind movements in yields on market instruly, average interest rates on bank credit card ments. In this regard, it is noteworthy that nearly plans actually have continued to rise. The behav- half the banks routinely surveyed by the Federal ior of average rates on credit card plans has been Reserve last month indicated greater willingness strongly influenced by state-imposed ceilings on to make consumer installment loans than three the rates that banks may charge cardholders on months earlier. outstanding balances. Further reductions in the entire structure of While rates on closed-end installment credit at interest rates in the economy will depend criticalbanks climbed about 6 percentage points during ly on progress against inflation and positive the 1978-81 period and those on open-market developments on budget deficits. Remarkable investments rose still more, average rates progress against inflation has been made during charged consumers on bank credit card plans the past year, and favorable conditions in marrose only about 1 percentage point as most states kets for oil and basic food commodities bode well maintained interest rate ceilings of 18 percent or for the near future. As inflation has come down, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 Federal Reserve Bulletin • April 1983 so have market interest rates. However, interest That expectation is widely held in the financial rates across all markets remain high relative to markets and by the public at large, and the the current rate of price inflation, particularly on prospect of intensified public sector "crowding longer-term instruments. This suggests that ex- out" of private demands for the available supply pected rates of future price inflation, which pro- of credit appears at least partly responsible for foundly affect nominal interest rates, remain well the maintenance of high "real" interest rates on above current actual inflation rates. longer-term instruments. Fears abound that the Such skepticism is understandable. A year or large deficits will not only place heavy demands two of progress, following more than a decade of on the credit markets but that they will thereby rapid inflation, is not enough to quell fears that create pressures for excessive monetary expanprices will accelerate again as the economic sion, causing the battle against inflation to berecovery proceeds. And it is widely anticipated come considerably more difficult. that we will see a return to aggressive wage Clearly, the fundamental outlook for interest bargaining and price setting if it appears that rates does not lie, primarily, in the hands of the inflation is being permitted to accelerate once Federal Reserve alone. Market confidence in the again. The current situation is fragile, and clearly success of monetary policy must be supported by the major test of the sustainability of our anti- the continued commitments and decisions in inflation effort lies ahead. both the Congress and the administration to The Federal Reserve remains committed to reduce the large structural federal deficits that policies that will permit the economy to expand threaten to place heavy pressure on our financial without regenerating inflationary pressures, and resources as the economy picks up speed. Comadherence to this course should lead to lower plementary monetary and fiscal policies will fosinterest rates over time. There are, however, ter the easing of inflationary expectations essensome obstacles along this path. In particular, the tial to sustained reductions in rates on consumer prospect of huge federal deficits looms ahead loans and other types of credit. Then the recoveven as the economy expands; that is, the ery can be sustained on a basis of the growth of "structural" deficit promises to remain very household purchasing power in real terms, in large even as the "cyclical" deficit declines. concert with increasing strength in other sectors. Statement by Henry C. Wallich, Member, Board to expand IMF resources that is before this of Governors of the Federal Reserve System, subcommittee. That expansion would involve a before the Subcommittee on International global increase in the IMF's basic resources in Trade, Investment and Monetary Policy of the the form of quota subscriptions from about $65 Committee on Banking, Finance and Urban Af- billion to about $97 billion, with the United fairs, U.S. House of Representatives, April 7, States providing about $5.7 billion of that in- 1983. crease. In addition, the United States and ten other industrial countries have agreed, subject to I am pleased to appear today before this subcom- legislative action, to expand from about $7 billion mittee to discuss the proposed expansion of to more than $18 billion their credit lines to the resources for the International Monetary Fund. I IMF under the General Arrangements to Borwill also review the IMF's role in helping to row; the increase in the U.S. commitment is resolve serious international financial problems about $2.6 billion. such as those that have recently arisen for many This legislation is the result of the Eighth countries and some of the regulatory proposals General Review of IMF quotas mandated by the relating to U.S. banks' participation in interna- IMF's Articles of Agreement. In this sense, this tional lending activities in the future. legislation was already in the pipeline. However, The Federal Reserve Board strongly supports in view of the IMF's declining liquidity, the participation by the United States in the proposal increased needs for temporary balance of pay- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 267 ments assistance by a large number of member less than 30 percent to about 37 percent of the countries, and the associated threats to the sta- total. bility of the world monetary system, we and These markets are sometimes more uncertain other IMF members are seeking to complete this for U.S. suppliers because government restricexpansion in IMF resources before the end of tions on imports tend to be more pervasive in 1983. Given the U.S. leadership role in the IMF these countries and because the restrictions are and especially in negotiating this package, subject to frequent change. Moreover, some of prompt completion of congressional action on these economies have experienced phases of this request is highly desirable. excessive growth and resultant unsustainable payments deficits followed by severe cutbacks in imports to regain external balance. The sharp U.S. INTERESTS IN THE IMF reversal in import demands by these countries at times has had unfavorable effects for the U.S. As the subcommittee reviews the proposed legis- economy. In the case of Mexico, for example, lation on the IMF, it is appropriate to consider the period of buoyant growth in the late 1970s led two central functions that the IMF performs. to a doubling of U.S. exports to Mexico from an First, the IMF lends resources to member coun- average rate of $8.5 billion in 1978-79 to an tries in weak external financial circumstances to average rate of nearly $17 billion in 1980-81. alleviate the abruptness and severity of the bal- When Mexico in 1982 faced severe external ance of payments adjustment process that these liquidity problems before the establishment of its countries necessarily must undergo. Second, the IMF program, U.S. exports to Mexico fell sharp- IMF through its surveillance role and through ly, to less than $12 billion, with exports in the conditions attached to the use of its resources final quarter of last year at an annual rate of less helps to limit and reduce the use by member than $7 billion. By contributing to better stability countries of exchange restrictions and other poli- in the economies of these countries in the long cies that have disruptive or inequitable effects on run, the IMF increases the stability of the trading foreign suppliers, creditors, or competing pro- environment and makes possible a more rapid ducers, and encourages its members to adopt growth of U.S. exports to these countries on a internal economic policies that help to maintain sustained basis in the future. or restore external balance. In both dimensions, By providing temporary balance of payments the IMF contributes importantly to the stability financing to countries in weak financial posiof the international financial and trading system tions, the IMF helps to stabilize the pattern of and, thus, to the market for U.S. exports. international trade. The role of the IMF is some- The preservation of a stable environment for times incorrectly criticized by observers who international trade has become increasingly im- argue that the IMF is responsible for cutbacks in portant to the U.S. economy over the past two imports or sharp currency devaluations by coundecades. In 1982, exports of goods and services tries operating under IMF-approved stabilization by the United States amounted to $350 billion, programs. While the adjustment actions underequivalent to almost one-eighth of U.S. gross taken in these circumstances are sometimes senational product. Exports are more than twice as vere, without assistance from the IMF the adimportant to the U.S. economy today as they justment that would occur, after the country's were 20 years ago. The employment generated own resources had run out, necessarily would be by these exports accounts for one of eight jobs in even more severe. During the period of IMF our manufacturing sector. One of every three assistance, the hardships for the borrowing coun- U.S. farm acres is producing for export. try are in part alleviated by the resources that are While exports have become more important to disbursed in connection with the IMF program. the U.S. economy, the destination of U.S. ex- Such disbursements normally include both the ports has also been shifting increasingly toward funds directly supplied by the IMF and the funds markets in the less-developed, nonindustrial that other foreign creditors agree to lend or to countries. Over the past 10 years the share of roll over because of the confidence-building efthese countries in U.S. exports has risen from fect of the IMF's "seal of approval." Thus, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 Federal Reserve Bulletin • April 1983 IMF's assistance implies that adjustment is less such as dividends, royalties, and license fees. draconian for the borrower than would be the Worldwide export receipts for services by the case if the country were completely cut off from United States amounted to about $140 billion in foreign financing and less burdensome for the 1982—of which nearly $40 billion is estimated to United States in terms of lower exports. have originated in Latin America and a further The financial resources provided by the IMF $30 billion in other nonindustrialized countries. are temporary and must be completely repaid The unhappy history of the 1930s should also over a relatively short period. The standard remind us that one of the IMF's central objecmaturity is three to five years, although for some tives is to avoid competitive exchange depreciamultiyear arrangements—such as those recently tions in the world economy. This fact is imporapproved for Mexico and Brazil—maturities are tant to remember at a time when the current high extended to six to ten years. The loan repay- unemployment throughout the world may tempt ments generate a revolving fund of resources for some countries to seek depreciation of their the IMF that is replenished during periods of currencies as a short-run device to stimulate calm in the international economy. Interest rates employment—rather than to correct a fundamenpaid to members on the use of their quota tal imbalance in their external accounts. The subscriptions are based on short-term market United States is vulnerable to the adoption of rates of interest in the United States, France, any such exchange rate practices by other coun- Germany, Japan, and the United Kingdom. tries because the dollar is so widely used as a When the IMF provides a standby credit to a reserve or reference currency. This latter role for member, it requires the member to forgo any the dollar tends to create a situation in which any intensification of exchange restrictions. In gener- exchange rate depreciations by other countries al, IMF members are prohibited by the IMF's would lead to further appreciation of the dollar. charter from interfering with the free flow of Such an appreciation would be particularly unforeign exchange payments for imports of goods welcome at the present time because the United and services, from imposing discriminatory tax- States has already experienced a large exchange es-subsidies on importers-exporters, and from rate appreciation and loss of export competitiveengaging in bilateral payments arrangements that ness over the past two years. The appreciation of unfairly exclude third-country competitors. As a the dollar that has already occurred, along with condition for its standby credits, the IMF nor- the weak growth performance of the world econmally requires the borrower to avoid any new omy as a whole, has been restraining and will transgressions of these rules and often, in the continue to restrain our own economic recovery. case of Extended Fund Facility programs, requires the borrower to reverse its recent or even long-standing actions in these areas. RESOLVING RECENT PAYMENTS CRISES IN Historically, the United States has been ad- THE WORLD ECONOMY versely affected by the application of exchange restrictions on international trade. During the The International Monetary Fund requires a 1930s, U.S. exporters were badly damaged by prompt expansion of its resources to provide the spread of bilateral trade and barter agree- adequate assistance to countries that are currentments among other major countries, while U.S. ly experiencing severe balance of payments adprivate holders of foreign bonds and the U.S. justment problems, but as I noted earlier the government suffered heavy losses because of the broad scope of the proposals before you was suspension or restriction of payments by foreign determined by discussions associated with the debtors for many years. Eighth General Review of IMF quotas—discus- Currently, the United States retains a vital sions that had been under way before the internaconcern for the maintenance of free and nondis- tional financial strains emerged last summer. criminatory payments for international transac- Thus, the proposals need to be evaluated in a tions. In particular, the United States is the longer-term perspective as well as from the perworld's largest recipient of the types of payments spective of the IMF's immediate liquidity needs. that are most frequently discriminated against, The increases would not result in an inordinate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 269 expansion in the IMF's role in financing pay- borrowing arrangements has the advantage that ments imbalances. Nor is the proposed enlarge- the creditor countries have somewhat greater ment of IMF resources and its lending activities control over the availability of credit to borrowdesigned to provide an opportunity for banks to ers from the IMF. But these arrangements have reduce their exposure in major borrowing coun- the disadvantage that ad hoc multilateral efforts tries or a possibility for borrowers to follow an to raise supplementary funds for the IMF take easy path toward correction of their payments time to establish. For U.S. participation, they of imbalances. course require congressional approval. Thus The IMF's effective influence over policies completion of the arrangements can come too that its members follow in correcting their pay- late to meet the problem at hand. ments imbalances is partly a function of its The proposed expansion of the General Arlending capacity. In some extreme cases, coun- rangements to Borrow (GAB) now before the tries may face negotiations with their foreign Congress would retain the advantage, but avoid creditors over new private credits or debt re- the disadvantage, of past temporary borrowing scheduling that require the borrower to conclude arrangements, such as the SFF. The General an IMF standby arrangement as a precondition. Arrangements to Borrow were established in In other cases, the IMF may be able to influence 1962, and the size of those arrangements has not a member's policies in the course of its ongoing significantly increased for more than 20 years. surveillance activities and discussions with mem- The proposed expansion in these permanent bers of their exchange policies and exchange lines of credit for the IMF would bring them restrictions. However, it is clear from recent more in line with the IMF's longer-run needs. events that, during the early stage of a country's Under a proposed change in the provisions of balance of payments problems, the size of a arrangements, GAB resources could also be used potential IMF standby credit relative to a mem- by the IMF in the future to provide loans to ber's need may affect a country's willingness to nonparticipants instead of just to other particiestablish an IMF-approved stabilization pro- pants as is now the case. However, the GAB gram. resources would be available to the IMF to lend The growth of IMF quotas over the past two to nonparticipants in the GAB only in circumdecades has lagged well behind the growth of the stances that threaten the stability of the internaworld economy, which, to some extent, may tional monetary system and in which the IMF's have reduced the IMF's influence. As an offset other resources were not sufficient to meet the the IMF has allowed countries' borrowing limits threat. Thus, the enlarged and expanded GAB under conditional arrangements to grow to a provides a mechanism whereby the industrial larger multiple of their quotas. Consequently, countries can respond quickly to the IMF's legitmost countries have been able to borrow, over a imate financial needs in extraordinary situations. three-year period, about the same amount from The current urgency of expanding the IMF's the IMF in relation to imports as they could resources stems from a sharp upsurge over reborrow in the early 1960s. cent months in demands for IMF financing. In To permit member countries to borrow larger the past four months, five developing countries multiples of their quotas, the IMF in recent years that had encountered payments imbalances or has had to rely increasingly on special borrowing liquidity problems—Mexico, Brazil, Argentina, arrangements with members to supplement nor- Chile, and the Philippines—have sought and are mal quota subscriptions. Recently, such borrow- now obtaining substantial financial assistance ings have included those under the IMF's tempo- from the IMF. In view of these and other existing rary Supplementary Financing Facility (SFF) and upcoming demands on the IMF, disburseestablished in 1979 and subsequent ad hoc bor- ments of more than $15 billion may be required in rowing arrangements with Saudi Arabia and vari- 1983, seriously depleting the IMF's present lious industrial countries. The United States par- quidity. ticipated in the SFF but not in the subsequent ad Most of the IMF's loans go to non-OPEC hoc borrowing arrangements. developing countries, which collectively had a The provision of resources to the IMF through deficit in their balance of payments for goods, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 Federal Reserve Bulletin • April 1983 services, and private transfers that amounted to credits have been approved to allow disbursemore than $70 billion in 1982 and more than $85 ments of $1.9 billion in 1983 and a further $300 billion in 1981. In view of the abrupt reduction of million in early 1984. New financial commitnew lending to many of these countries from ments of banks to lend to Argentina in 1983 international banks since last September, that amount to about $2 billion, but will be partly deficit will have to be reduced substantially offset by the payment of some arrears on debt further in 1983. Under the stabilization program service obligations that fell due in 1982. Brazil recently introduced, its current account Foreign governmental assistance to major Latdeficit is scheduled to fall from $14V2 billion in in American borrowers will mainly take the form 1982 to $7 billion in 1983. Similarly, in the case of of direct or guaranteed export credits whose Mexico the current account deficit is expected to magnitude cannot yet be determined. The largest decline from $13 billion in 1981 to about $4 billion such arrangement undoubtedly will be the guarin 1983, and in Argentina the deficit is expected antees for three-year credits by the U.S. Comto decline from $4 Vi billion in 1981 to $1 billion in modity Credit Corporation to finance shipment 1983. These represent burdensome, but neces- of substantially increased amounts of U.S. agrisary, balance of payments adjustments to restore cultural exports to Mexico during 1983. Similar financial stability for these countries. assistance will support sales of U.S. wheat to In addition to an expansion of their exports Brazil. Bridging credits that U.S. and other monand continued restraint of their imports, some etary authorities have provided to or supported developing countries will need to implement poli- for the major Latin American borrowers do not cies to improve their capital accounts. For exam- show up in longer-term assessments of the adple, Mexico and Argentina experienced large justment and financing prospects for 1983 and outflows of domestic private capital in 1981 and 1984. These loans have been useful to meet 1982. With a return of confidence in government minimum immediate liquidity requirements while policy and with appropriate incentives, these adjustment and borrowing programs were being funds can be attracted home and can help to arranged, but the loans have been or are schedfinance these countries' needed imports and the uled to be repaid within a short time. rebuilding of their foreign exchange reserves. One objective of the recent IMF-approved programs is to maintain exchange rate and interest FUTURE BANK PARTICIPATION IN rate policies that will facilitate such reflows of INTERNATIONAL LENDING capital. While the borrowing countries will have to In formulating their external adjustment proassume the main burden of resolving their cur- grams, major foreign borrowers have realistically rent financial difficulties, foreign banks, the accepted that their future access to new bank IMF, and foreign governments will also be ex- financing will be less than in the past. Outstandtending new loans to smooth the immediate ing bank loans to Brazil, Mexico, and Argentina adjustment. The recent negotiations with Brazil- are projected to grow 5 to 10 percent annually in ian, Mexican, and Argentine authorities provide 1983 and 1984. Under these circumstances, the a basis for estimating the amounts of new funds claims of U.S. banks on these countries relative that will be available from the IMF and the to their capital will decline somewhat. banks. The prospects for 1983 and 1984 represent a For Brazil, the IMF has approved credits that major adjustment from the period 1979-81, when amount to $2.2 billion in 1983 and $1.6 billion in bank exposures in Mexico, Argentina, and Brazil 1984. Bank lending to Brazil, net of repayments, were rising at annual rates of 15 to 40 percent. is expected to amount to about $4 billion each That expansion produced a rapid growth in these year. For Mexico, financing from the IMF claims in relation to bank capital; such a process should amount to $1.3 billion in 1983 and in 1984, cannot continue indefinitely. while net lending from the banks is expected to The level of capital exposure by some banks in be about $5 billion in 1983 and can be estimated some countries has led many observers to conat around $3 billion in 1984. For Argentina, IMF clude that banks have not paid adequate atten- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 271 tion to diversification of their assets. In the for troubled country loans; and (4) income-accurrent circumstances, however, it would be counting requirements that loan fees be amorunwise for regulators to force abrupt reductions tized over the life of the loan. in bank claims on large borrowers. The risks of Country lending limits are likely to be either loss on foreign sovereign loans would be in- too rigid or so flexible that they are not workcreased rather than reduced if banks attempted able. Limits based on objective criteria would to pull back quickly from lending, say, to Brazil tend to enforce diversification but would not and Mexico. In 1974, following the first sharp necessarily steer banks away from the greatest increase in oil prices by OPEC, the expansion of potential dangers. Large countries with stable, international bank lending to developing coun- diversified economies and politically mature govtries was viewed by many, given the absence of ernments tend to attract higher levels of bank obvious alternative sources of funds, as a con- exposure than do large countries that lack those structive development that helped to meet the characteristics. Should one place "too low" a growing financing needs of these countries. The limit on the former countries to reach an adecurrent international economic situation requires quately low limit for the latter? If, alternatively, a continuation of international lending at a realis- countries are differentiated among risk classes tic pace. Nevertheless, recent international fi- based on subjective evaluations, the limits would nancial developments have raised legitimate have to be changed periodically—requiring conquestions about the future international activities troversial judgments by the supervisors, provokof banks, and these questions require prompt ing diplomatic pressures or misinterpretations, consideration. and possibly inducing abrupt financial disloca- To discourage excessive exposure or lack of tions if classifications are changed. adequate diversification of some banks, two Financial disclosure requirements have a numbroad possibilities can be considered. First, ber of advantages for the investor, both directly some banks may be encouraged to slow the and through providing a solid base of information future growth in their outstanding loans to some for evaluation by independent security analysts. foreign borrowers. Second, banks may be en- On balance, requirements to provide additional couraged to expand their capital base. information could contribute to a more effective The expansion of bank capital in relation to market policing of, and hence prudence in, lendtotal assets has been a primary objective of U.S. ing practices by banks. regulatory agencies for a number of years. Re- Specific reserves have been proposed for the cently, we have witnessed some improvement in purpose of dealing with severely troubled counthe capital base for the large banks, and such try credits. These reserves have been proposed banks are especially active in international lend- to combat the view espoused by some bankers ing. Given the buoyancy of the stock market, that sovereign credits never turn bad or become conditions are now more favorable for further unrecoverable because the borrower can never actions to improve their capital positions. disappear or be liquidated. Some have also To ensure moderation in the growth of bank argued that regulatory action in such cases might lending to the largest foreign borrowers over the be harmful because it would further damage the longer term, a good deal of discussion has oc- debtor's reputation and tempt the debtor not to curred recently of closer supervisory surveil- pay. These arguments appear unconvincing to lance of banks' international lending activities me. It is clearly appropriate for banks to make and possible restraints on exposures to individ- some provision against loans when there has ual countries. Among the options that have been been a protracted period in which the debtor has mentioned in those discussions are the following: been unable to service its debt. Indeed, some (1) specific country limits, akin to the limits on banks make such provisions now. The question loans to an individual borrower that are now in is whether such a practice should be more unieffect; (2) disclosure requirements that would versally adopted. warn stockholders of country concentrations A requirement that fee income, over and that might affect the safety of their investments above identifiable expenses, be amortized over in the bank; (3) establishment of specific reserves the life of a loan might reduce somewhat the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 Federal Reserve Bulletin • April 1983 enthusiasm that some banks have shown toward raised that continued lending by banks to develforeign lending. A fee is normally received by oping countries, or lending through the IMF to banks at the time a loan is made—amounting to its members out of the U.S. quota subscription, up to 1 percent or more of the value of some will reduce the amount of credit available for the loans. In some cases, such fees are not taken into domestic economy. There are a number of ways income right away. However, if such fees are to assess the effects on domestic credit markets taken into income, in whole or in part, they tend of any increase in international lending. One to enhance reported bank income at a time when approach is in the context of the overall balance the "strength" of the bank's assets may in fact of payments; a second is in terms of the specific have deteriorated, for example, when a resched- amounts involved for specific countries; and a uling is involved. One may of course ask whether third is in terms of the repercussions on domestic an accounting requirement to amortize certain credit markets of a breakdown of private internaloan fees, which under some proposals would tional credit flows. only come into play in the case of a rescheduling, In the context of the overall balance of paywould have a significant bearing on banks' lend- ments, any increase in foreign lending either by ing decisions, but more uniform treatment is private banks or financed through the IMF may probably desirable. have only limited domestic credit implications in When considering the various regulatory ap- the short run. As long as there is no induced proaches, we should guard against overreaction change in the demand for U.S. goods and serto problems in foreign lending whose dangers vices, the borrowed funds would have to be held, were once downplayed by banks and the mar- either by the original borrowers or by others, in kets, but which may now have been exaggerated. U.S. credit markets, and there would be no net We must in any event retain an awareness that a effect on credit available to the U.S. economy. growing economy can carry a growing external On the other hand, if there is an increase in the debt. We must also acknowledge that the current demand for U.S. goods and services as a consedifficulties in international lending are more aptly quence of the lending, our exports will be larger, described as liquidity problems than as solvency and the effect on U.S. business would be the problems. Finally, when regulatory action is same as if the credit had gone directly to U.S. warranted, we should work with authorities exporters to finance their foreign sales. abroad to seek solutions that are consistent and Even if the incremental bank lending in concompatible with the supervisory and regulatory nection with these programs were quite large, it actions that other industrial countries take with would not in itself create any difficulties for respect to the banks under their jurisdiction; domestic borrowers as a group, though some such a cooperative approach will help to avoid may gain (exporters) and some may lose. Morecompetitive inequities and a retreat to the "low- over, as noted earlier, the additional bank lendest common denominator" in the supervision ing contemplated under the various arrangeand regulation of international lending. ments between banks and major foreign As you know, the federal bank regulators have borrowers is a considerable reduction from the had this entire subject under careful review. rate of lending over the past few years. The Their review is essentially complete, and I ex- increase in lending should also be viewed in the pect that the Banking Committee will receive a context of large, gross capital inflows and outmore detailed report on their conclusions by the flows from the United States; in fact, much of the end of the week. international lending by U.S. banks is in effect financed from foreign sources. Finally, the moderate further extensions of INTERNATIONAL LENDING AND THE credit that are involved in these programs may AVAILABILITY OF DOMESTIC CREDIT very well be essential for the maintenance of a healthy flow of bank credit in our domestic credit In addition to questions raised about the adequa- market. A sudden cutoff of lending by U.S. and cy of the regulatory and supervisory approaches foreign banks to the countries with severe liquidto international lending, concern also has been ity problems could force them to suspend all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 273 servicing of their debts. Such an event would Fund is reviewing its procedures in generating trigger write-offs of a large amount of banks' and sharing information and analyses on external assets, weakening their capital base and most financial circumstances of individual member likely causing them to raise the cost and slow countries with the commercial banking commudown the expansion of domestic credit that nity and with national supervisory authorities. would otherwise prevail. Over the past months, the Fund also has as- A more general point may be added. Signifi- sumed a role in coordinating various forms of cant feedbacks occur from the economies of private and official balance of payments assisother countries to the pace of economic activity tance in the framework of IMF-approved stabiliin the United States. Should a sudden contrac- zation programs. Time will tell whether this will tion of foreign lending occur, the economies of become standard procedure for the Fund or only some of our important trading partners would be reflects the exceptional circumstances prevailing forced to contract abruptly. This could mean in international credit markets over the past half another year of declining U.S. exports, after a year. Finally, in designing performance criteria year in which the weakness of the external sector in Fund programs, the IMF is intensifying its was a major factor in the slowdown of the U.S. focus on the growth and structure of members' economy. In that perspective, a relatively small external debts and the relationship of such crite- U.S. share in the flow of new financing to some ria to assessments of medium-term debt capacity of these countries may well have a widespread of the borrowing country. These new and expositive effect on the U.S. economy. panded activities by the Fund are likely to have favorable effects on the quality of lending and borrowing decisions and will help create an envi- ROLE OF THE IMF ronment that, it is hoped, will avoid a recurrence of debt problems of the severity we have experi- My comments on the role of the IMF in helping enced recently. to resolve current international debt problems In conclusion, the United States has vital longfocused on the IMF as a source of funds and its run interests in strengthening the International function in promoting appropriate adjustment. Monetary Fund and in strengthening the supervi- The Fund also has assumed a greater role in sion of banks' international lending. The liquidity recent months in developing a closer working needs now present in the world financial system relationship with commercial banks. This aspect and the consequences of failing to meet those of the Fund's activities is still evolving, but on needs also argue for prompt, favorable considerbalance it is likely to contribute to better in- ation by the Congress of the legislation to augformed lending and borrowing decisions. ment the financial resources of the International In the context of its surveillance function, the Monetary Fund. • Statement by Paul A. Volcker, Chairman, Board before this committee to examine these issues, of Governors of the Federal Reserve System, considerable progress has been made in addressbefore the Committee on Banking, Housing, and ing the problems associated with the heavy in- Urban Affairs, U.S. Senate, April 11, 1983. debtedness and external financing problems of some of the major international borrowers. How- I am pleased to appear before this committee ever, the international financial system still reonce again to discuss the legislation now before mains subject to extraordinary pressures. Boryou providing for an increase in the resources of rowing countries, the international banking the International Monetary Fund and to discuss community, the International Monetary Fund, related questions concerning the international and governments of the lending nations, will all financial situation and international lending by need to continue the efforts well started and to banks. build upon the progress that has been made. The During the eight weeks since I last appeared Senate Committee on Foreign Relations has act- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 Federal Reserve Bulletin • April 1983 ed promptly in reporting out the IMF legislation, financing has been repaid. Other components of and my hope is that this committee, after due Mexico's external financial arrangements—the deliberation, will also act favorably on this im- restructuring of public sector debt maturing from portant matter, critical to the entire effort. In my August 1982 to December 1984 and of private opinion, the proposed increase in the resources sector debt—are proceeding. Despite the decline of the IMF remains the key element in a success- in oil prices, prospects appear favorable that the ful strategy of dealing with international financial adjustment program can be carried through sucstrains for the short run as well as for the long cessfully, laying the base for renewed growth. run. An important adjustment was made in the The federal bank regulators have completed a Brazilian stabilization program in mid-February review of proposals for strengthening supervi- when the cruzeiro was devalued sharply on Febsion and regulation of U.S. banks engaged in ruary 18. The net effect should reinforce other international lending. The "Joint Memorandum" measures to move toward external equilibrium, of April 7 on our proposed program in this area and Brazil, as a major oil importer, will ultimateappears as an appendix to this statement. ly benefit from the recent decline in oil prices. In my testimony today I will touch briefly on Meanwhile, banks have completed arrangements each of these three areas of recent activity: the to loan new money to Brazil this year; the first international financial situation, the IMF legisla- drawdown was on March 10. In some respects, tion, and our proposals with regard to interna- the Brazilian adjustment may not be as far adtional lending. vanced—perhaps in part because the process started later—and the objective of halving both its current account deficit and budget deficit this year is ambitious. But the Brazilian economy INTERNATIONAL FINANCIAL SITUATION has, of course, great potential, and the challenge can be met. During the past two months, further progress has A number of other countries in Latin America been made in putting into place programs to deal and elsewhere are also grappling with difficult with some of the problems of important borrow- and painful external financial problems and intering countries that during the closing months of nal imbalances. These countries are in various 1982 threatened the stability of the international stages of negotiations with the IMF and lending financial system as well as their own economic institutions. Obviously the period of extraordiprospects. This progress has involved strong nary liquidity pressures on the international fiactions of the borrowing countries themselves, nancial system is not over. While the problems supported by the IMF, by the international bank- are manageable, they will continue to require the ing community, and in some instances by other skill and patience of all the parties involved. governments and central banks. Ultimately, successful evolution will also require In the important case of Mexico, the govern- a reasonably favorable world economic and fiment has been effectively implementing its stabi- nancial climate—a circumstance that emphasizes lization program approved by the IMF in late the importance of policies in the United States December. Economic activity had, of course, and other leading countries. But it is also crystal been severely affected by the balance of pay- clear that during this difficult period a great deal ments and economic pressures before the pro- depends on the capacity of the IMF to provide gram could be implemented, and the shortage of leadership, and potentially resources, in the foreign exchange has been reflected in a sharp worldwide effort to maintain the kind of financial drop in imports and in the current account defi- environment supportive of the needed growth. cit. But there are also early signs that more For that reason, I am gratified that the Senate fundamental adjustment processes are begin- Committee on Foreign Relations has completed ning. Meanwhile, in late March, the first dis- its work on the authorizing legislation and that bursement on the $5 billion bank credit took this committee has moved expeditiously in its place, and a large part of earlier official "bridge" consideration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 275 PROGRESS ON THE IMF LEGISLATION1 regard to the collection and dissemination of information on the international borrowing and Three amendments were added by the Commit- lending of its members, and it calls upon the tee on Foreign Relations to legislation before Secretary of the Treasury to instruct the U.S. you, each of which seems to me constructive. As Executive Director of the Fund to discuss, pro- I understand it, the first amendment essentially pose, and vote for procedures to increase the clarifies that the Congress has to authorize any IMF's traditional role in this area. future changes in the General Arrangements to I fully support the thrust of this amendment. Borrow (GAB) that would affect the basic terms As you have noticed, the program for improved of U.S. participation or the fundamental struc- supervision and regulation of international lendture of the arrangement. ing proposed by the federal bank regulators puts The second amendment would establish the forward similar ideas. We have proposed not sense of the Congress that consideration should only that the IMF try to improve the information be given to membership in the Bank for Interna- flow between borrowers and lenders, but also tional Settlements (BIS), an institution that is that the IMF intensify its analysis for the benefit playing an important role in dealing with the of members and the public of the trend and present strains on the financial system, as it has volume of international lending and strengthen from time to time in the past. The BIS also its surveillance activities in this area. The surprovides a forum for more or less continuous veillance activities of the IMF involve all memconsultation among central banks, and its role bers—including the United States—whether or and functioning are of direct interest to the not they are currently borrowing from the IMF. Federal Reserve. The Fund should be encouraged to examine For more than 20 years, the Federal Reserve closely policies of the members before internahas regularly participated in meetings at the BIS, tional financial crises break. These activities are including those of the Group of Ten central bank crucial to the IMF's central role in helping to governors and the committee on banking regula- guide the functioning of the international monetions and supervisory practices. We have found tary system, and I believe they are not inconsisthis participation very useful but, on balance, tent with the general direction in which the IMF have seen no urgent need to be a formal member has been moving. and assume the seat on the board of directors reserved for the governor of the central bank of the United States. INTERNATIONAL LENDING PROPOSALS We would, of course, be glad to examine the matter again, consulting not only with the Secre- The Joint Memorandum provides a rather comtary of the Treasury and the Secretary of State, plete treatment of the consideration of this imas provided in the amendment, but also with our portant topic by the federal banking regulators, central banking colleagues who are now mem- and I will not repeat the analysis here. bers of the BIS. In that connection, I would point I would note the basic premise of the program out that in addition to other considerations, before you is not that international lending by formal U.S. membership necessarily would in- banks is contrary to the U.S. interest or that it volve some attention to the day-by-day banking should be abruptly curtailed, but that banks operations of the BIS that are not of primary should maintain adequate financial strength to interest to us. deal with unexpected contingencies and be The third amendment to the IMF legislation strongly conscious of the need to diversify risks would establish the sense of the Congress that and avoid undue concentration. Those concerns the IMF should strengthen its activities with should be a continuing part of the supervisory effort. 1. An appendix on the role of the IMF in promoting a liberal At this particular point, I should also reiterate international trading system is available from Publications that abrupt action by lenders to withdraw from Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. lending can only be mutually self-defeating, pre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 Federal Reserve Bulletin • April 1983 cipitating financial crises in otherwise credit- IMF in improving information flows (along the worthy countries where sound economic policies lines of the amendment to the IMF legislation by are in place and damaging the stability of the the Committee on Foreign Relations) and international financial system. We need a bal- strengthening its surveillance over member anced, sound, long-range approach, protecting countries. against the possibility of a future crisis while You will note that our program does not inpermitting the flexibility to deal with the present clude the establishment of country lending limits. situation. I would point out that, in general, We concluded that lending limits based upon lending in conjunction with IMF programs can be objective criteria are likely to be entirely too extended without increasing the exposure of the rigid. More or less permanent limits would fail to banks in terms of ratios of their loans to capital distinguish between countries capable of carryor assets; in fact, these ratios should decline ing substantial debt without significant transfer moderately. risk and countries in which smaller amounts of Against this background, the federal banking debt still raise large problems of transfer of risk. regulators have designed a five-part integrated Lending limits based on subjective judgments program. that change over time are likely to have capri- 1. Strengthening of the country risk examina- cious and abrupt effects on flows of credit, imply tion and evaluation system established in 1979. a degree of foresight on the part of the regulators 2. Additional reporting and disclosure de- that may not be realistic, be difficult to adminissigned to provide the public with more current, ter fairly, and involve the impression of politicalcomplete, and consistent information about U.S. ly charged judgments. Moreover, extremely difbanks' aggregate exposure to countries and for ficult transitional problems would arise in individual banks in which the exposure passes an current circumstances. established threshold. Finally, we believe the bank regulatory agen- 3. Requirement that banks make specific pro- cies can use, and would plan to use, existing visions—to the extent that they have not already authority, including authority to define and predone so—against certain country exposures vent unsafe and unsound banking practices, to when the country has been unable to service its implement the program I have outlined. For that debt over a protracted period of time and has no reason, legislation along the lines of the Heinzprospects of establishing arrangements to do so. Proxmire bill does not appear necessary, but I 4. Establishment of guidelines to account for point out, with the exception of the country fees on syndicated international credits, in gener- lending limits provision, our proposals parallel al requiring spreading of those fees over the life the subject matter of the bill. In view of the of the credit. technical complexity of some parts of the pro- 5. Strengthening of international cooperation gram and the need to adapt the program in light in two areas. First, we would where possible of experience and economic circumstances, rigid coordinate our actions with bank supervisors or inconsistent legislative specifications would abroad to limit competitive inequalities, to as- be undesirable. In any event, before this program sure equal treatment of lenders and borrowers, is fully implemented we will want to consider and to reinforce the effectiveness of U.S. pro- comments from the Congress, the banks, and the grams. We also suggest an increased role of the public, as well as from bank supervisors abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 277 APPENDIX A: JOINT MEMORANDUM ON on residents of the country, plus other credits PROGRAM FOR IMPROVED SUPERVISION guaranteed by residents of the country, less AND REGULATION OF INTERNATIONAL credits guaranteed by residents of other coun- LENDING, APRIL 7, 1983 tries and net local currency assets of the bank's offices in the country. In recent years, the banking systems in the As a result of our review of the supervision United States and abroad have extended large and regulation of foreign lending, a five-point amounts of credit to foreign borrowers, including program has been developed. The objective of foreign governments. As a result of strained the program is to encourage prudent private economic conditions worldwide, a number of decisionmaking in foreign lending that appropricountries, particularly in Latin America, have ately recognizes the risks while permitting the simultaneously experienced reduced foreign ex- exercise of lender discretion in the funding of change earnings and external financing prob- creditworthy borrowers both here and abroad. lems, thus helping to precipitate problems in The proposed procedures reinforce two of the servicing debt burdens built up over a number of basic principles of sound banking—diversificayears. As part of the necessary readjustment, tion of risk and maintenance of adequate finanmany of the major borrowers have adopted eco- cial strength to deal with unexpected contingennomic stabilization programs approved by the cies. The program will help assure earlier IMF and involving, in addition to important recognition of potential international payments domestic measures, both the restructuring of problems, encourage orderly responses to these existing bank credits and the extension of a problems, and provide for stronger reserves to limited amount of new credit. This situation has meet adverse conditions when they infrequently, raised concern that there should be in place but inevitably, arise. strengthened supervisory and regulatory prac- The five-point program consists of the followtices aimed at avoiding excessive concentrations ing elements: of credit in foreign countries. 1. Strengthening of the existing program of In response to these problems, the federal country risk examination and evaluation. bank regulators have reviewed a number of sug- 2. Increased disclosure of banks' country exgestions for strengthening supervision and regu- posures. lation of U.S. depository institutions engaged in 3. A system of special reserves. foreign lending. Some foreign lending (for exam- 4. Supervisory rules for accounting for fees. ple, that to private companies abroad) includes 5. Strengthening international cooperation elements of credit risk analogous to domestic with foreign banking regulators and through the lending—elements relating to the capacity and International Monetary Fund. willingness of borrowers to generate resources The program constitutes an integrated packfrom operations to repay debts. Lending to for- age—none of the elements alone could accomeign governments (that is, sovereign lending), plish the intended objectives. This memorandum while not entirely free of credit risk, is not summarizes the principal aspects of the five subject to the same "market test" of potential points. insolvency. However, all foreign lending must The program has been designed to create intake account of risks not present in domestic centives for prudent lending but without estabprivate or public lending (that is, transfer risk). lishing arbitrary obstacles to international capital Thus, overall "country exposure" is also a rele- movements or preventing the continuation of vant concept for assessing the risks involved in credit flows to creditworthy borrowers. Dependforeign lending. ing upon particular circumstances, continued Transfer risk means the possibility that a bor- capital flows to basically creditworthy countries rower may not be able to maintain debt servicing in current strained economic conditions remain in the currency in which the debt is to be paid appropriate—especially in the context of IMFbecause of a lack of foreign exchange. A bank's approved economic stabilization programs—in country exposure is defined as all cross-border order to encourage appropriate adjustment by and cross-currency claims and contingent claims borrowers to their problems, to maintain their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 Federal Reserve Bulletin • April 1983 capacity to service their outstanding debt, and be weighed in the application of the capital therefore to preserve the integrity of existing adequacy guidelines used by the federal banking bank assets. These considerations are, of course, agencies. Thus, recommendations on capital levnot unique to international lending, but the scale els as a function of country exposure concentraof the lending to particular foreign borrowers tions will form an integral part of the overall means that broader considerations of the stabil- supervision and regulation process. In accority of the international financial and economic dance with their recommendations in this regard, system are at stake as well; this fact is reflected the banking regulators will expect appropriate in the role of the IMF and other official lending. corrective action as necessary to conform to safe The five-point program set forth below is de- and sound banking practices, taking full account signed to recognize these circumstances. of the need for flexibility in some circumstances for responding to needs for additional credit as part of well-considered adjustment programs. Strengthening of Country Risk Examination and Evaluation Additional Disclosure As a first step, the federal banking regulators intend to strengthen their present program of Experience suggests that the identification of country risk examination and evaluation basical- increased country exposure and transfer risk ly established in its present form in 1979. Our based on a subjective analysis of economic facreview of the operation of this system indicates tors, particularly in cases of larger countries, that increases in banks' country exposure have may not always take place at a sufficiently early not in all cases been brought to the attention of stage so as to make adjustment in banks' lending high-level management as explicitly and forceful- feasible without jeopardizing service of existing ly as they probably should have been. This debts or, indeed, without disrupting the financial procedure can be made more effective by estab- system more generally. Disclosure triggered by lishing clearer guidelines for examiners in formu- subjective risk evaluation may aggravate the lating exposure warnings and for assuring that problem. However, more routine disclosure, these warnings are considered at the policymak- centered around the concept of concentration, ing level within bank management. Its more may strengthen other approaches, helping to effective use should help to avoid risk concentra- bring appropriate marketplace discipline to bear tion and to increase risk diversification. on lending decisions. As a separate part of country risk examination Depositors and investors, through their indiand evaluation, the federal banking regulators vidual decisions, will have the information to will also analyze a bank's capital adequacy in assess better the prudence of foreign lending and relationship to the level of diversification of the require greater risk diversification and adequate bank's international portfolio. Those institutions reserves as the condition for their increased with relatively large concentrations of credit in deposits and investments in banks' equity and particular countries will be expected to maintain other securities. Banks will need to be prepared generally higher overall capital ratios than those to defend policies leading to large and conceninstitutions that are well diversified. As part of trated country exposure as a consequence of this process, the banking regulators will further their continuing reporting requirements, and indevelop, as a reference point, standards for deed considerable movement has been made in country exposure concentration as it relates to that direction by some institutions. The best capital adequacy. Because banks vary in their current practice should be made more uniform. current capital positions and other elements of To that end, individual banks should make public risk exposure, the implications for the capital disclosure of all concentrations of country expoadequacy of any particular bank would have to sure that are material. be evaluated on a case-by-case basis. Another step toward better analysis of devel- In general, the characteristics of a bank's oping trends in international lending is more country exposure will be considered a factor to frequent and earlier availability of aggregate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 279 data. To this end, reports on material country expressed that so-called front-end fees, when exposure should be submitted to the banking taken into income in the quarter or year in which supervisors quarterly, instead of semiannually as they are charged, provide an added incentive to at present. In this connection, the banking super- seek out international loans in order to boost visors will require that the reports be submitted earnings immediately and, once this has ocmore promptly than in the past so that the curred, to sustain past earnings levels. The genaggregate information on lending by U.S. banks eral practice in the industry is, apparently, to can be made available to the public on a more treat a portion of these loan fees—that part current basis. which is paid to all participating lenders—as interest to be taken into earnings over the maturity of the credit and the remainder—syndication Special Reserves fees—as current income. However, specific practice apparently varies, and the more con- Another incentive for risk diversification and servative practices may not prevail generally. increased financial strength can be created Therefore, it would be desirable to assure unithrough establishment of a system of provision- form rules so that artificial incentives are not ing against certain country exposures. When a created for foreign lending. To this end, the borrower has been unable to service its debts regulators are prepared to establish rules to over a protracted period of time, whether or not require that front-end fees be treated as interest that borrower is a sovereign, it is appropriate to except when they are identifiable as reimburserecognize the risks and the diminished quality of ment of direct costs. the assets represented by these loans. Indeed, to the extent interest has not been paid, that by itself diminishes the value of the underlying asset. International Cooperation It is prudent that the lending institutions establish specific provisions against such assets in Present problems in foreign lending are internaorder to reflect more accurately the current tional in scope, and an effective program for condition of the asset. Although some banks now limiting the potential scope for such problems in make reserve provisions for such purposes, this the future must be coordinated with bank superapproach should be more systematic. Such pro- visors abroad and with the activities and operavisions would be deducted from current earnings tions of the International Monetary Fund. and, to the extent required by regulation, would Coordination with overseas bank supervisors not be included in capital for regulatory and can help to avoid competitive inequalities, to accounting purposes. The prospective requireassure equal treatment of lenders and borrowers, ment for reserving, with its attendant bottom-line and to reinforce the effectiveness of U.S. proearnings impact, should act as a cautionary elegrams. The bank regulatory agencies will seek ment when the initial decision to lend is being understandings with foreign bank authorities to made. Such reserve provisions would not apply help achieve the objectives of risk diversification to lending to a country in which the terms of any and strengthened financial condition that we restructuring of debt were being met, in which have set for ourselves. interest payments were being made, and in which Similarly, the IMF can play a major role, the borrowing country is complying with the particularly with borrowers, in avoiding situaterms of a stabilization program that has been tions involving excessive buildups of credit, esapproved by the IMF. pecially short-term credit. We intend to work in the following areas to improve information flows Accounting for Fees and to ensure a more effective IMF surveillance process: This program element would establish rules for 1. In its consultations with member governaccounting for fees charged in connection with ments on their economic policies, the Fund international lending. Some concern has been should intensify its examination of the trend and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 Federal Reserve Bulletin • April 1983 volume of external indebtedness of private and transition period that would tend to vitiate its public borrowers in the member country and credibility. comment to the country and in its reports to the The problem that is before the international executive board of such borrowing from the financial community today is one of maintaining viewpoint of its contribution to the economic a reasonable flow of international credit to allow stability of the borrower. The IMF might also time for orderly adjustment. As for the future, as consider the extent or form in which these com- levels of exposure decrease over time, the proments might be made available to the internation- gram of intensified regulatory surveillance and al banking community and the public. evaluation of country exposures, additional dis- 2. As part of any member's stabilization pro- closure, special reserves, rules for fee accountgram approved by the IMF, the Fund should ing, and improved international cooperation place limits on public sector external short- and should prove sufficient to deal with buildups of long-term borrowing. concentrations of international credit that might As a part of its annual report, and at such times threaten a sound banking system. as it may consider desirable, the Fund should publish information on the trend and volume of international lending in the aggregate as it affects Implementation Authority the economic situation of lenders and borrowers and the smooth functioning of the international The authority of the bank regulatory agencies to financial system. define and prevent unsafe and unsound banking practices under their enabling statutes and the Financial Institutions Supervisory Act of 1966 Consideration of Lending Limits could be used to implement the program outlined above insofar as the agencies require regulatory The foregoing program does not include the action. A number of similar measures have been establishment of country lending limits. It was taken in the past utilizing this authority, and the concluded that lending limits based upon objec- courts have generally sustained the banking tive criteria are likely to be too rigid. Such limits agency actions. To be effective, the banking would fail to distinguish between countries capa- agencies must demonstrate a clear link between ble of carrying substantial debt without signifi- the established prudential practice and the safety cant transfer risk and countries in which smaller and soundness of depository institutions—a relaamounts of debt still raise large transfer risk tionship that past experience indicates can be problems. On the other hand, lending limits established in the area of international lending. based on subjective judgments that change over In view of the existence of this authority, it time are likely to have capricious and abrupt would not be desirable to establish rigid or effects on flows of credit, imply a degree of inconsistent legislative rules that could limit the foresight on the part of the regulators that may ability of the banking regulators to adapt the not be realistic, and be difficult to administer program as they gain experience with its implefairly while avoiding political complications. Fi- mentation and could have the unwarranted and nally, in view of the substantial exposures al- unintended effect of discouraging the internationready incurred, a program of lending limits al lending necessary to support world trade and would not be workable except with a very long economic recovery. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

281 Announcements THRIFT INSTITUTIONS ADVISORY COUNCIL-. Robert R. Masterton, President of The Maine NEW MEMBERS Savings Bank, Portland, Maine. Fred A. Parker, President of Heritage Federal The Federal Reserve Board on March 15, 1983, Savings and Loan Association, Monroe, North announced the appointment of seven new mem- Carolina. bers of its Thrift Institutions Advisory Council and designated Harry W. Albright, President of Those reappointed to the Council, in addition the Dime Savings Bank, New York, New York, to Mr. Albright, are the following: as President of the Council for the current year. Mary A. Grigsby, Chairman and Chief Execu- Thomas R. Bomar, President of AmeriFirst Fed- tive Officer of Houston First American Savings eral Savings and Loan Association of Miami, Association, Houston, Texas. Florida, has been designated Vice President of James F. Montgomery, Chairman of the Board the Council. of Great Western Financial Corporation, Beverly The Council is an advisory group made up of Hills, California. ten representatives from nonbank depository thrift institutions. The panel was established by the Board in 1980 and includes seven savings and loan officials, two mutual savings bankers, and REGULATION D: AMENDMENT AND one credit union representative. The Council PROPOSAL meets at least four times each year with the Board of Governors to discuss developments The Federal Reserve Board has announced an relating to thrift institutions, the housing industry amendment to Regulation D (Reserve Requireand mortgage finance, and certain regulatory ments of Depository Institutions) modifying reissues. serve requirements on nonpersonal time depos- Under the Monetary Control Act of 1980, thrift its, effective March 31, 1983. institutions, for the first time, became subject to Under the amendment, nonpersonal time dereserve requirements of the Federal Reserve posits with original maturities of two and one- System; were required to provide reports on half years or more will have no required retheir deposits; and had access to the discount serves. Nonpersonal time deposits with original window and other System services. maturities of less than two and one-half years The newly appointed members to the Council, will continue to be subject to a 3 percent reserve in addition to Mr. Bomar, are the following: requirement. James A. Aliber, Chairman and Chief Execu- The existing reserve requirement for nonpertive Officer of First Federal of Michigan, Detroit, sonal time accounts with original maturities of Michigan. less than three and one-half years is 3 percent. Gene R. Artemenko, President of United Air- The Board amended the rule to conform Regulalines Employees' Credit Union, Chicago, Illi- tion D with action by the Depository Institutions nois. Deregulation Committee (DIDC) that created a John R. Eppinger, President and Chief Execu- ceiling-free negotiable or nonnegotiable time detive Officer of MainLine Federal Savings and posit with an original maturity of two and one- Loan Association, Villanova, Pennsylvania. half years or more. Norman M. Jones, President of Metropolitan Nonpersonal time deposits are defined by the Federal Savings and Loan Association, Fargo, Monetary Control Act as time deposits that are North Dakota. transferable, regardless of the nature of the hold- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 Federal Reserve Bulletin • April 1983 er, and time deposits in which any beneficial Transfers), which cross-reference provisions of interest is held by a depositor that is not a natural Regulation Z, to bring them into line with the person. revision and simplification of Regulation Z. The minimum maturity of a time deposit instrument of two and one-half years or more is scheduled to decrease by one year annually until FEE SCHEDULES March 31, 1986, at which time the minimum maturity will be that specified for any time The Federal Reserve Board has announced revideposit. The Board said, however, that its action sions to the national fee schedule for its bookdoes not indicate that it will make further adjust- entry securities service (computer recording of ments in the reserve requirements on nonperson- government securities and related wire transal time deposits. The Board noted that reducing fers), effective April 28, 1983. further the maturity break for reserve require- The Federal Reserve is pricing its services to ments on nonpersonal time deposits could have banks and other depositories in compliance with an adverse effect on monetary and credit condi- the Monetary Control Act of 1980. As required tions by eroding the reserve base and loosening by the act, the schedule is designed to recover the linkage between reserves and deposits in the the full costs of providing the service, plus a money stock. private sector adjustment factor (PSAF).1 The Board adopted its new fee schedule for book- The Board has also issued for comment a entry securities service after receiving comment proposal to amend Regulation D by reducing the on proposals published in December 1982. deposit reporting burden for small institutions. The Board's national fee schedule (in dollars) Comment was requested by April 8, 1983. for book-entry securities service is as follows: Component Fee REGULATION Z. AMENDMENTS On-line transfer originated' (per transfer) 3.00 Off-line transfer originated (per transfer) 10.00 Off-line transfer received (per transfer) 10.00 The Federal Reserve Board adopted several Account maintenance (per account/per month) 15.00 Issues in accounts maintained (per issue/per month) 50 amendments to Regulation Z (Truth in Lending) affecting arrangers of credit, student loans, and 1. For all Federal Reserve Districts except New York the fee schedule for on-line transfers originated through the Federal Reserve the use of calculation devices in determining Bank of New York will be based on the time of day the transfers are originated. annual percentage rates. The amendments were effective April 1, 1983. The Board acted after consideration of comment received on proposals In addition, the Board announced on March published in January. 17, 1983, that it will continue without change Two of the amendments implement provisions current charges to depository institutions for of the Garn-St Germain Depository Institutions wire transfer of funds and net settlement ser- Act of 1982. The first implements the act's vices. deletion of "arrangers of credit" from the defini- The Federal Reserve is pricing its services to tion of creditor. The second implements the banks and other depositories in compliance with provision of the act exempting student loans the Monetary Control Act of 1980. The act made under title IV of the Higher Education Act requires that the Federal Reserve charge explicof 1965 from the requirements of Truth in Lend- itly for its services and that the charges recover ing. the System's costs of providing the priced ser- The Board also reinstated two provisions of vices plus the PSAF. The fees are in accordance the regulation dealing with errors in calculation of the annual percentage rate resulting from the use of faulty calculation tools. 1. The PSAF is an allocation of imputed costs taking into account taxes that would have been paid and the return on In addition, the Board is renumbering certain capital that would have been provided had the services been provisions of Regulation E (Electronic Fund provided by private-sector firms. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 283 with pricing principles established by the Board ering operations for the calendar year 1982, is and published in December 1980. available for distribution. Copies may be ob- The current fee schedules for the wire transfer tained on request to Publications Services, and net settlement services were put into effect Board of Governors of the Federal Reserve April 29, 1982. The Board has concluded that System, Washington, D.C. 20551. these fee schedules should be retained because revenues for these services are covering costs, including the PSAF, and are expected to continue to do so. CHANGE IN BOARD STAFF Accordingly, the fee schedules (in dollars) for the Federal Reserve's wire transfer of funds and The Board has announced the retirement of net settlement services will continue in effect as Murray Altmann, Assistant to the Board, Office follows: of Staff Director for Monetary and Financial Policy, effective February 25, 1983. Wire transfer of funds Net settlement1 On-line transfer Originator 65 Settlement entries 1.30 Receiver 65 SYSTEM MEMBERSHIP: ADMISSION OF Off-line surcharges Off-line surcharges STATE BANKS Originator 3.50 Per settlement 5.00 Receiver 2.25 Telephone advice 2.25 The following banks were admitted to member- 1. Reserve Banks may charge higher fees for net settlement arrangements that result in higher costs. ship in the Federal Reserve System during the period March 11 through April 10, 1983: ANNUAL REPORT: PUBLICATION California Los Angeles .. American Pacific State Bank The Sixty-Ninth Annual Report of the Board of Colorado Governors of the Federal Reserve System, cov- Longmont Pioneer Bank of Longmont Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON FEBRUARY 8-9, 1983 but nonresidential construction spending also fell somewhat. According to the Department of Domestic Policy Directive Commerce survey taken in November and December, plant and equipment spending would Preliminary estimates of the Commerce Depart- decline about VA percent in 1983; taking account ment indicated that real gross national product of respondents' expectations of inflation, the had declined at an annual rate of Vh percent in survey results implied a decline of about 5lA the fourth quarter of 1982. The decline was the percent in real terms, compared with a decline of result mainly of a sharp contraction in business 43/4 percent in 1982. inventories; final sales increased appreciably in Nonfarm payroll employment increased the quarter. Average prices, as measured by the 340,000 in January, after an average monthly fixed-weight price index for gross domestic busi- decline of about 200,000 in the second half of ness product, rose at an annual rate of about 43A 1982. Other indicators also suggested improvepercent. Over the four quarters of 1982, real ment in labor markets: in manufacturing, em- GNP declined about VA percent, nominal GNP ployment edged up for the first time in about a grew about 3*A percent, and the increase in year and a half and the factory workweek inprices on average decelerated sharply to about creased 0.8 hour to 39.7 hours. However, the 4VA percent. January data may have overstated the improve- The nominal value of retail sales edged down ment in labor market conditions because of seain December, but rose 3 percent in the fourth sonal adjustment problems. The civilian unemquarter as a whole. Retail sales at automotive ployment rate fell 0.4 percentage point to 10.4 outlets strengthened considerably in the fourth percent, as the civilian labor force declined subquarter, and sales at general merchandise and stantially. furniture and appliance stores also picked up. The producer price index for finished goods Sales of new domestic automobiles were at an was about unchanged in December, reflecting a annual rate of about 6 million units in the fourth decline in prices of energy-related items and only quarter, compared with an average selling pace modest increases in prices of consumer foods of about 51/2 million units during much of 1982; in and other goods. During 1982 the index rose 3V2 January, sales continued at about the fourth- percent, about half the pace recorded in 1981. quarter pace. The consumer price index declined 0.3 percent in Private housing starts fell somewhat in Decem- December, as homeownership costs fell sharply ber, following a surge in November, but at an and prices for food and energy declined as well. annual rate of VA million units in the fourth Over the year the index increased less than 4 quarter, starts were about 45 percent above the percent, compared with a rise of about 9 percent cyclical trough of a year earlier. Combined sales in 1981. Price increases were smaller in 1982 than of new and existing homes have advanced appre- in 1981 for all major components of the index. ciably in recent months. The rise in the index of average hourly earnings slowed further in the final months of 1982. Over Spending for business fixed investment dethe year the index rose about 6 percent, comclined substantially further in the fourth quarter pared with an increase of about 8V2 percent over to a rate nearly 8V2 percent below the recent peak 1981. in the fourth quarter of 1981. The decline was concentrated in outlays for durable equipment, In foreign exchange markets the trade-weight- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 285 ed value of the dollar against major foreign mittee had decided to seek to maintain expansion currencies had declined about 3 percent further in bank reserves consistent with growth of M2 at from mid-December to about mid-January. Sub- an annual rate of around 9¥z percent and growth sequently, the dollar appreciated and was up on of M3 at an annual rate of about 8 percent for the balance over the period since the Committee's period from December to March. The objective meeting in December. In the fourth quarter the for M2 was designed to allow for a modest U.S. merchandise trade deficit was close to the amount of growth resulting from shifts into the relatively high third-quarter rate. Agricultural newly authorized money market deposit acexports continued at about the reduced third- counts (MMDAs) from large-denomination cerquarter rate while a decline in nonagricultural tificates of deposit or market instruments. For exports was roughly offset by a decline in im- both M2 and M3, the Committee had noted that ports. greater growth would be acceptable if analysis of In July 1982 the Committee reaffirmed the incoming data and other evidence from banking objectives for monetary growth that it had set in and market reports indicated that the new early February for the period from the fourth MMDAs were generating more substantial shifts quarter of 1981 to the fourth quarter of 1982 and of funds from market instruments into the broadalso decided tentatively to retain the 1982 target er aggregates. The intermeeting range for the ranges for 1983. Those objectives included federal funds rate, which provides a mechanism ranges of 2Vz to 5Vi percent for Ml, 6 to 9 percent for initiating further consultation of the Commitfor M2, and 6V2 to 9Vi percent for M3. The tee, was set at 6 to 10 percent. associated range for bank credit was 6 to 9 On several occasions following the December percent. The Committee agreed that growth in meeting, the Committee discussed the extraordithe monetary and credit aggregates around the narily rapid growth in MMDAs that had taken top of the indicated ranges would be acceptable place since the accounts had become available in and that it would tolerate for some period of time mid-December and the implications of that growth somewhat above the target ranges if growth for the behavior and interpretation of the uncertainties relating to unsettled economic and monetary aggregates. At the conclusion of a financial conditions should lead to unusual pre- discussion on January 28, 1983, it was the Comcautionary demands for money and liquidity. mittee consensus to maintain the existing degree Actual monetary growth during 1982 was of reserve restraint for the time being but not to above the Committee's target ranges. Ml grew increase that restraint further in response to the about 8V2 percent on a fourth-quarter to fourth- reported over-target growth of the broader monquarter basis, substantially more than in 1981 etary aggregates because that growth appeared and well above the target range. M2 and M3 to be primarily related to the massive redistribuexpanded 9.2 percent and 10.1 percent respec- tion of funds under way. tively over the four quarters of 1982, somewhat M2 grew at an estimated annual rate of about above the upper limits of their target ranges; 29 percent in January, following an increase at an prior to certain revisions and redefinitions of M2 and M3 in early 1983, their indicated growth Ml comprises demand deposits at commercial banks and rates for 1982 had been 9.8 percent and 10.3 thrift institutions, currency in circulation, traveler's checks, percent respectively.1 Bank credit expanded negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at banks and thrift institutions, about 7 percent during the year. and credit union share draft accounts. M2 contains Ml and At its meeting on December 20-21, the Com- savings and small-denomination time deposits at all depository institutions, money market deposit accounts (MMDAs) at all depository institutions, overnight repurchase agree- 1. The revised data for the monetary aggregates reflect ments (RPs) at commercial banks and retail RPs at all new benchmarks and revised seasonal factors and some depository institutions, overnight Eurodollars held at foreign relatively minor changes in definitions of the broader aggre- branches of U.S. banks by U.S. residents other than banks, gates that were published on February 11, 1983. As rede- and taxable and tax-exempt money market mutual fund fined, the broader aggregates now include balances in tax- shares other than those restricted to institutions. M3 is M2 exempt money market mutual funds on the same basis as plus large-denomination time deposits at all depository instithose in taxable money funds and no longer include balances tutions, large-denomination term RPs at commercial banks in individual retirement or Keogh accounts at depository and savings and loan associations, and taxable and taxinstitutions and money market mutual funds. exempt institution-only money market mutual fund shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 Federal Reserve Bulletin • April 1983 annual rate of about 8 percent in December. At Treasury notes and bonds increased about 35 to this meeting it was reported that MMDAs had 45 basis points, apparently in response to the grown to more than $210 billion by late January, substantially increased recent and prospective and available evidence suggested that some of volume of Treasury financing. The prime rate the December increase in M2 and much of the charged by most commercial banks on shortsurge in January was related to the associated term business loans was reduced V2 percentage shifts of funds out of non-M2 assets—such as point to 11 percent in mid-January. Average market instruments and large-denomination rates on new commitments for fixed-rate conven- CDs—into MMDAs. Abstracting from such tional home mortgage loans at savings and loan shifts, which could be calculated only very associations declined about V2 percentage point roughly, the growth of M2 over the December- over the intermeeting period to a level a little January period was estimated to have been at a above 13 percent. pace that was generally consistent with the Com- Total credit at U.S. commercial banks accelermittee's longer-run growth objective for this ag- ated to an annual rate of about IOV2 percent in gregate. Growth of M3, estimated at annual rates December and was estimated to have picked up of about 3 V* percent in December and 11 percent further in January. Banks responded to the in January, was much less affected by the intro- strong inflows of funds into MMDAs by purchasduction of MMDAs, as depository institutions ing sizable amounts of Treasury and other securiresponded to large net inflows of funds in part by ties. Banks also expanded their loans somewhat. allowing their large-denomination certificates of Staff projections presented at this meeting deposit to run olF. Growth of Ml remained rapid suggested that real GNP would turn upward in in January, although the increase was apprecia- the first quarter and continue to grow moderately bly smaller than the average pace in other recent during 1983. The unemployment rate was expectmonths. To date, Ml growth appeared to have ed to remain at a high level, while inflation, as been little affected on balance by the introduc- measured by the fixed-weight price index for tion of MMDAs in mid-December or of Super gross domestic business product, was projected NOW accounts in early January. to slow somewhat further over the year. Expansion in total and nonborrowed reserves In the Committee's discussion of the economic slowed considerably in January; the slowing re- situation and outlook, members emphasized that flected the moderation in growth of transaction signs of an economic recovery had multiplied in balances as well as the substantial reduction in recent weeks, and while some question remained required reserves associated with the attrition of about the actual onset of the recovery the memlarge-denomination CDs and shifts out of savings bers generally agreed that moderate growth in and other time deposits into nonreservable real GNP was a reasonable prospect for 1983 as a MMDAs. Excess reserves were extraordinarily whole. The members also believed that economhigh around the turn of the year, and also were ic recovery could be achieved without a resuron the high side around mid-January, reflecting gence in inflation, partly in light of favorable usual year-end pressures and the implementation prospects for productivity growth and for oil of two mandated reserve requirement reduc- prices. The cautionary note was expressed, howtions. Also reflecting typical year-end money ever, that inflationary expectations, as well as market churning, adjustment borrowing (includ- actual prices and wages, would be importantly ing seasonal borrowing) was quite large at the influenced by federal budgetary developments, beginning of the year, but it tended to be relative- and monetary policy also needed to remain clearly low thereafter, with the federal funds rate ly oriented toward fostering further progress in remaining close to the 8V2 percent discount rate containing inflation. except for a brief period around year-end. While the outlook for economic activity and Interest rates on private short-term market prices was generally viewed as favorable, it instruments were little changed over the period, remained subject to considerable uncertainty. while yields on corporate bonds were up about Some members stressed the potential obstacles 30 basis points. Yields on most U.S. Treasury to a sustained recovery, including the prospect of bills rose about 35 to 40 basis points, and rates on continuing large federal deficits in the absence of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 287 new legislation, the outlook for weak export declining short-term market rates in the latter markets, real interest rates that were still high by half of the year had encouraged inflows into historical standards, and the possibility of further NOW accounts, which have become an increasdisturbances in international and domestic finan- ingly important component of Ml, as the cost of cial markets. On the other hand, a number of holding such accounts relative to market instrumembers commented that once under way, the ments fell considerably. Late in the year, the recovery might gather momentum and prove to authorization by the Depository Institutions be markedly more vigorous than the staff had Deregulation Committee (DIDC) of new deposit projected, with the expansion in 1983 perhaps instruments incorporating transaction features more in line with the average experience in the and paying interest returns tied to market rates first year of previous economic recoveries. may have been associated with some anticipa- For the period from the fourth quarter of 1982 tory increases in balances at depository instituto the fourth quarter of 1983, the central tenden- tions. Against the background of sharply declincy of the members' projections was for growth in ing velocity, the Committee had concluded that real GNP in a range of V/i percent to AV2 percent, rigid adherence to the 1982 targets would have while the range for all members was from VA resulted in a much more restrictive policy impact percent to 5Vi percent. The central tendency for than had been intended. the GNP deflator was a range of 4 to 5 percent, For 1983 the Committee faced the question of and for growth in nominal GNP it was a range of whether underlying relationships between mone- 8 to 9 percent. Projections for the rate of unem- tary and ultimate economic objectives might still ployment in the fourth quarter of 1983 ranged be in the process of changing. Past cyclical from 9Va to IOV2 percent, with a central tendency expansions had typically been accompanied by of 9.9 to 10.4 percent. These projections were sharp increases in velocity, particularly for the based on the Committee's objectives for mone- narrower measures of money. Developments tary and credit growth established at this meet- during 1982 suggested, however, that increases ing, and the members generally assumed that in velocity might be relatively restrained in 1983. legislative progress would be made over the Reduced rates of inflation, a markedly lower months ahead in reducing federal deficits in level of interest rates, and institutional changes future years. characterized by a greater availability of market- In reviewing at this meeting the monetary and related interest rates on transaction accounts credit objectives for 1983 that it had tentatively could induce larger holdings of monetary assets established in July within the framework of the relative to income than usually occurs during a Full Employment and Balanced Growth ("Hum- cyclical upturn. The payment of market rates on phrey-Hawkins") Act of 1978, the Committee the new Super NOW account could have an recognized that its assessment of appropriate especially pronounced impact on the income growth targets for implementing broad economic velocity of Ml as could the continued attractivegoals was complicated by a number of economic ness of regular NOW accounts if short-term and institutional factors. Members took particu- market interest rates were to remain near, or fall lar note of the fact that the relationships between below, current levels. More generally, movemonetary and credit growth to income and ex- ments in Ml could be influenced increasingly by penditures had deviated markedly from past pat- attitudes toward savings as well as by transaction terns during 1982. The deviations in question needs as the share of NOW accounts, which were reflected in atypical behavior of the income have both savings and transaction features, exvelocity of various measures of money—the ratio pands in this aggregate. Members recognized of gross national product to the individual mone- that it could take some time before this newly tary measures—all of which fell sharply in 1982. emerging behavior of Ml in relation to GNP To a considerable extent the declines in velocity became clear. The broader monetary aggregates, appeared to be a consequence of strong precau- too, were being affected by institutional changes, tionary demands for monetary assets in a period with M2 especially influenced in 1983 by shifts characterized by economic uncertainties and se- into its MMDA component from market instruvere strains in financial markets. In addition, ments and large-denomination CDs. Moreover, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 Federal Reserve Bulletin • April 1983 the phased deregulation of interest rate ceilings text of continuing progress toward price stabilwas undoubtedly changing the cyclical charac- ity. teristics of the broader aggregates. After weighing alternative growth ranges for The Committee's assessment of appropriate 1983, a majority of the Committee expressed monetary growth ranges was greatly complicated support for retaining the 1982 range for M3 and by the massive flows of funds associated with adopting higher ranges for M2 and Ml than had recently introduced deposit instruments, the Su- been targeted in 1982 to allow for ongoing instituper NOW accounts and especially the money tional changes. The preferred range for M3 was market deposit accounts. The extremely rapid therefore 6V2 percent to 9V2 percent on a fourthbuildup of MMDAs since mid-December had quarter 1982 to fourth-quarter 1983 basis. In resulted in a substantial flow of funds into M2 favoring this range, which contemplated growth from market instruments and large-denomination below the actual outcome for 1982, Committee certificates of deposit, which are not included in members assumed that M3 would not be greatly M2, with the consequence that growth of that affected on balance by shifts of funds associated aggregate had been greatly inflated over the with the new deposit accounts. Depository insticourse of recent weeks. It was anticipated that tutions had the option, which many had already further redistribution of funds associated with exercised in recent weeks, of reducing their MMDAs and to a lesser extent with Super NOW issuance of large-denomination certificates of accounts would continue to influence the behav- deposit if sizable inflows of MMDAs and other ior of the monetary aggregates to some degree. core deposits satisfied their need for funds. While uncertainties in predicting flows into these For M2 majority sentiment centered on a range accounts were obviously great, the staff expect- of 7 to 10 percent and the use of a Februaryed those inflows to moderate over the weeks March 1983 base period in the expectation that ahead. the latter would minimize distortions stemming In the course of the Committee's discussion, a from the highly aggressive marketing of MMDAs consensus emerged in favor of setting target in the weeks since their mid-December introducranges for all three measures of money but to tion. The members assumed that the bulk of the depart from past practice in some respects in MMDA-generated shifts into M2 from assets not light of the complexities and uncertainties that included in that aggregate would be accomwere involved. Most of the Committee members plished by March. The range did, however, allow agreed that it would be desirable for the time for some modest future asset shifts into M2. being to place substantial weight on the broader Thus, while the new 7 to 10 percent range was aggregates, M2 and M3. It was expected that, above its 1982 counterpart, it was judged in once the bulk of shifts had taken place, the practical effect to represent about the same or performance of those aggregates in relation to slightly lower growth over the balance of the economic activity might be somewhat more pre- year, after abstracting from the further anticipatdictable than that of Ml during the year ahead, ed shifts of funds into M2. Moreover, given the although major uncertainties affected all of the growth experienced in 1982, an actual outcome aggregates. Thus the members recognized that within the target range implied slower effective an unusual degree of judgment would be required growth in 1983. in interpreting the performance of the monetary Committee members' views varied consideraaggregates as a group. The ongoing appropriate- bly on the weight to attach to Ml—which had ness of the target ranges would need to be judged been given much less emphasis as a target beginin the light of evolving economic conditions, ning in the fourth quarter of last year when its including developments in domestic and interna- behavior was distorted by maturing all-savers tional financial markets. In this connection a certificates and preparation for the introduction number of members stressed the overriding im- of new depository accounts—and some members portance of assuring that monetary performance questioned the desirability of adopting an Ml remained consistent with the basic objectives of target at this time. More generally, the perforfostering sustained economic recovery in a con- mance of that aggregate had been subject over Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 289 the past year or more to substantial uncertainties the upper part of the range might occur. It was related to the growing role of NOW accounts and observed that data for such a broad credit aggrean apparent shift in the behavior of its income gate were not currently available on a monthly velocity. Against that background, a majority of basis, and that the Committee did not have the the members supported setting an Ml target with tools to exert close influence over total flows of a relatively wide range for 1983 as a whole, and credit. However, the Committee intended to most members found acceptable a proposal to monitor total debt flows closely for whatever establish a specific range of 4 to 8 percent. The information they could provide in assessing apcomparatively wide range for Ml reflected allow- propriate responses to developments in the tarance for some possible change in its cyclical geted monetary aggregates. behavior as well as for its evolving character as Given the uncertainties and complexities inan increasingly important vehicle for savings, volved in setting monetary growth targets for especially in an environment of reduced inflation 1983, the members anticipated the need for reand interest rates. Only modest allowance was viewing those targets during the spring and possimade for the possibility that the new Super NOW bly altering them in light of the accumulated accounts would draw funds into Ml from other evidence available at that time regarding the sources. It was understood that the target for Ml behavior of the aggregates and their relationship would have to be reassessed if the DIDC should to other economic variables. Policy implementaextend the authority for depository institutions tion in 1983 would in fact require a continuing to pay market rates on transaction balances held reassessment of the performance of the moneby business firms. tary and credit aggregates, particularly in the It was agreed that the behavior of Ml would be aftermath of the unusual behavior of income monitored and that the degree of emphasis to be velocities in 1982. Such reassessment would inplaced on that aggregate as the year progressed volve taking account of patterns of saving behavwould depend on evidence about whether the ior and cash management among businesses and behavior of the velocity of Ml was becoming households, and of indications of changing conmore predictable and beginning to show its usual ditions in domestic and international credit marcyclical characteristics. Over the year, growth in kets and in foreign exchange markets. the lower part of the range would be appropriate At the conclusion of its discussion, the Comif velocity rose strongly, as had usually been the mittee adopted the following: case during recoveries. An outcome near the upper end would be appropriate if velocity did The information reviewed at this meeting indicates that real GNP declined in the fourth quarter because of not rebound sharply from the declines in 1982 a sharp reduction in business inventories. Final sales and tended to stabilize close to current levels. increased appreciably, and the rise in prices remained In addition to the specification of monetary much less rapid than in 1981. Retail sales and housing growth targets, the members agreed on the desir- activity have strengthened in recent months, but busiability of indicating for the first time the Commit- ness fixed investment has weakened further. Nonfarm payroll employment rose in January, after an extended tee's expectations with respect to growth of total period of declines, and the civilian unemployment rate debt of domestic nonfinancial sectors during fell 0.4 percentage point to 10.4 percent. In recent 1983 and a consensus was expressed for a growth months the advance in the index of average hourly range of 8V2 to IIV2 percent for that variable. A earnings has slowed further. consistent range for growth in bank credit, which The weighted average value of the dollar against major foreign currencies depreciated moderately furthe Committee had associated with its monetary ther from mid-December to mid-January, but a subsetargets in previous years, was judged to be 6 to 9 quent appreciation has more than offset that decline. percent, unchanged from the range in 1982. The In the fourth quarter the U.S. merchandise trade new range for total credit encompassed growth deficit was close to the relatively high third-quarter about in line with expected growth of nominal rate. GNP in accordance with longer-term trends, but Growth of M2 surged to an extraordinary pace in January, apparently reflecting shifts of funds into the Committee recognized that in the particular recently authorized money market deposit accounts. circumstances likely to prevail in 1983, growth in Growth of M3 accelerated, following very slow expan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 Federal Reserve Bulletin • April 1983 sion in December. Growth of Ml remained rapid in adjustment to the new deposit accounts will abate. The January, although it was down appreciably from the behavior of Ml will be monitored, with the degree of average pace in other recent months. Market interest weight placed on that aggregate over time dependent rates on U.S. Treasury obligations have risen some- on evidence that velocity characteristics are resuming what since the latter part of December, while rates on more predictable patterns. Debt expansion, while not most private market instruments are about unchanged directly targeted, will be evaluated in judging responsto slightly higher. Mortgage rates have declined fur- es to the monetary aggregates. The Committee underther. stood that policy implementation would involve con- The Federal Open Market Committee seeks to fos- tinuing appraisal of the relationships between the ter monetary and financial conditions that will help to various measures of money and credit and nominal reduce inflation further, promote a resumption of GNP, including evaluation of conditions in domestic growth in output on a sustainable basis, and contribute credit and foreign exchange markets. to a sustainable pattern of international transactions. In establishing growth ranges for monetary and credit Votes for this action: Messrs. Volcker, Solomon, aggregates for 1983 in furtherance of these objectives, Balles, Gramley, Martin, Partee, Rice, and Mrs. the Committee recognized that the relationships be- Teeters. Votes against this action: Messrs. Black, tween such ranges and ultimate economic goals have Ford, Mrs. Horn, and Mr. Wallich. been less predictable over the past year; that the current impact of new deposit accounts on growth rates of monetary aggregates cannot be determined Mr. Black and Mrs. Horn dissented from this with a high degree of confidence; and that the availability of interest on large portions of transaction action because they preferred to give more accounts, declining inflation, and lower market rates weight to Ml as a policy objective. While recogof interest may be reflected in some changes in the nizing the difficulties in interpreting Ml currenthistorical trends in velocity. A substantial shift of ly, they believed that over time Ml was more funds into M2 from market instruments, including reliably related to the Committee's ultimate ecolarge certificates of deposit not included in M2, in association with the extraordinarily rapid build-up of nomic objectives than were the broader aggremoney market deposit accounts has distorted growth gates and that it constituted a better basis for in that aggregate during the current quarter. setting appropriate paths for reserve growth. In establishing growth ranges for the aggregates for They also favored reemphasizing Ml because 1983 against this background, the Committee felt that they viewed it as a more controllable aggregate. growth in M2 might be more appropriately measured In addition, Mr. Black indicated that he saw a after the period of highly aggressive marketing of money market deposit accounts has subsided. The need for lower target ranges, but he wanted to Committee also felt that a somewhat wider range was reduce monetary expansion gradually to avert appropriate for monitoring Ml. Those growth ranges dislocative effects. will be reviewed in the spring and altered, if appropri- Mr. Ford dissented because be believed that ate, in the light of evidence at that time. policy should focus more firmly on implementing With these understandings, the Committee established the following growth ranges: for the period from noninflationary growth via a smaller number of February-March of 1983 to the fourth quarter of 1983, monetary targets. He also saw an urgent need to 7 to 10 percent at an annual rate for M2, taking into begin gradually reducing the rate of monetary account the probability of some residual shifting into growth in light of its inflationary potential, parthat aggregate from non-M2 sources; and for the ticularly when complemented by highly stimulaperiod from the fourth quarter of 1982 to the fourth quarter of 1983, 6V2 to 9lA percent for M3, which tive fiscal policy. He felt strongly that this comappears to be less distorted by the new accounts. For bination of policies ran the risk of triggering the same period a tentative range of 4 to 8 percent has another short-lived recovery that might be abortbeen established for Ml, assuming that Super NOW ed in 1984 by a private credit shortage and the accounts draw only modest amounts of funds from return of high inflation and interest rates. sources outside Ml and assuming that the authority to pay interest on transaction balances is not extended Mr. Wallich favored somewhat lower monebeyond presently eligible accounts. An associated tary growth ranges for 1983, which in his view range of growth for total domestic nonfinancial debt would be more consistent with the objectives of has been estimated at 8V2 to IV/2 percent. fostering economic recovery while minimizing In implementing monetary policy, the Committee the risks of stimulating inflation. agreed that substantial weight would be placed on behavior of the broader monetary aggregates, expect- In their discussion of policy for the weeks ing that current distortions in M2 from the initial immediately ahead, Committee members were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 291 generally in favor of maintaining the existing proved and issued to the Federal Reserve Bank degree of restraint on reserve positions. Refer- of New York: ence was made to an analysis that indicated that the current degree of restraint was likely to be For the more immediate future, the Committee associated with a slowing in the growth rates of seeks to maintain the existing degree of restraint on reserve positions. Lesser restraint would be acceptthe various monetary aggregates, although M2 able in the context of appreciable slowing of growth in growth would probably remain relatively rapid. the monetary aggregates to or below the paths implied The members agreed that the near-term outlook by the long-term ranges, taking account of the distorfor growth in the monetary aggregates remained tions relating to the introduction of new accounts. The subject to unusual uncertainties, and an appro- Chairman may call for Committee consultation if it appears to the Manager for Domestic Operations that priate assessment of such growth would need to pursuit of the monetary objectives and related reserve take account of distortions that might continue to paths during the period before the next meeting is be created by the introduction of new deposit likely to be associated with a federal funds rate persisaccounts. If, after adjustment for such distor- tently outside a range of 6 to 10 percent. tions, monetary growth were to slow appreciably Votes for this action: Messrs. Volcker, Solomon, over the weeks ahead and the monetary aggre- Balles, Black, Gramley, Mrs. Horn, Messrs. Margates appeared to be growing at rates in line with tin, Partee, Rice, Mrs. Teeters, and Mr. Wallich. or below the paths implied by the Committee's Vote against this action: Mr. Ford. ranges for the year, most of the members indicated that they would find a reduced degree of Mr. Ford dissented from this action because reserve restraint acceptable. With regard to the he believed that policy should be directed more intermeeting range for the federal funds rate, firmly toward gradually reducing monetary which provides a mechanism for initiating con- growth in the period immediately ahead. He was sultation of the Committee, the members favored concerned that continued monetary expansion at retention of the current range of 6 to 10 percent. recent rapid rates would re stimulate inflation and At the conclusion of the Committee's discus- threaten the sustainability of the economic resion, the following short-run operational para- covery, especially against the backdrop of a very graph of the domestic policy directive was ap- expansionary fiscal policy. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 Legal Developments AMENDMENT TO REGULATION D BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS The Board of Governors has amended Regulation D— Reserve Requirements of Depository Institutions Orders Under Section 3 of the Bank Holding (12 C.F.R. Part 204) to modify the reserve require- Company Act ments on nonpersonal time deposits. Under the amendment, nonpersonal time deposits with original Allied Bancshares, Inc., maturities of 2-1/2 years or more will be subject to a Houston, Texas reserve requirement ratio of zero per cent. Nonpersonal time deposits with original maturities of less than Order Approving Acquisition of Bank 2-1/2 years will continue to be subject to a three per cent reserve requirement ratio. This action was taken Allied Bancshares, Inc., Houston, Texas, a bank in view of the change in the Depository Institutions holding company within the meaning of the Bank Deregulation Committee's rules, effective April 1, Holding Company Act, has applied for the Board's 1983, to permit the issuance of a ceiling-free time approval under section 3(a)(3) of the Act (12 U.S.C. deposit with an original maturity of 2-1/2 years or more § 1842(a)(3)) to acquire 100 percent of the voting which may be offered by depository institutions in shares of Citizens National Bank of Beaumont, Beaunegotiable form. mont, Texas ("Bank"). Effective March 31, 1983, the Board amends Regula- Notice of the application, affording opportunity for tion D (12 C.F.R. Part 204) by revising section 204.9 interested persons to submit comments, has been (a)(1) to read as set forth below: given in accordance with section 3(b) of the Act. The time for filing comments has expired, and the Board Part 204—Reserve Requirements of Depository has considered the application and all comments re- Institutions ceived in light of the factors set forth in section 3(c) of the Act. Section 204.9—Reserve Requirement Ratios Applicant, the seventh largest banking organization in Texas, controls 46 banking subsidiaries with depos- (a)(1) Reserve percentages. The following reserve its of approximately $4.1 billion, representing 3.89 ratios are prescribed for all depository institutions, percent of total deposits in commercial banks in the Edge and Agreement Corporations and United States state.1 Bank, with deposits of $28.2 million, is the branches and agencies of foreign banks: 447th largest commercial banking organization in Texas, holding 0.03 percent of total deposits in commer- Category Reserve Requirement cial banks in the state. Upon consummation, Applicant would remain the seventh largest banking Net Transaction Accounts organization in Texas, controlling 3.92 percent of total $0-$26.3 million 3% of amount commercial bank deposits in the state. Thus, the Over $26.3 million $789,000 plus 12% of Board concludes that acquisition of Bank would have amount over $26.3 million no significant effect on the concentration of banking resources in Texas. Nonpersonal Time Deposit Bank is the eleventh largest banking organization in By original maturity the Beaumont-Port Arthur banking market,2 control- (or notice period): less than 2-1/2 years 3% 2-1/2 years or more 0% 1. All banking data are as of December 31, 1981, and include acquisitions as of September 30, 1982. Eurocurrency Liabilities 3% 2. The Beaumont-Port Arthur banking market is approximated by the Beaumont-Port Arthur-Orange SMSA, excluding the City of Orange and the surrounding unincorporated area in the eastern part of Orange County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 293 ling approximately 1.68 percent of the total deposits in First Monco Bancshares, Inc., commercial banks in the market. Applicant also com- Monroeville, Alabama petes in the Beaumont-Port Arthur banking market, and is the fourth largest banking organization in the Order Approving Formation of a Bank Holding relevant market, controlling about 13.16 percent of Company total deposits in commercial banks in the market. Upon consummation, Applicant's market share of First Monco Bancshares, Inc., Monroeville, Alabama, deposits would increase to 14.84 percent, and Appli- has applied for the Board's approval under section cant would become the third largest banking organiza- 3(a)(1) of the Bank Holding Company Act (12 U.S.C. tion in the market. Thus, consummation of this pro- § 1842(a)(1)) to form a bank holding company by posal would eliminate some existing competition acquiring 100 percent of the voting shares of The between Applicant and Bank. However, any adverse Monroe County Bank, Monroeville, Alabama competitive consequences are mitigated by the follow- ("Bank"). ing and other facts of record. First, a number of Notice of the application, affording opportunity for banking organizations compete in the market, includ- interested persons to submit comments and views, has ing two of the state's largest banking organizations. been given in accordance with section 3(b) of the Act. Also, the Beaumont-Port Arthur banking market The time for filing comments and views has expired, would not be considered highly concentrated after and the Board has considered the application and all consummation of this proposal, with a four-firm concomments received in light of the factors set forth in centration ratio of 67.3 percent. In view of these section 3(c) of the Act. factors, as well as the relative size of Bank and its Applicant, a nonoperating Alabama corporation, small market share, the Board finds that the acquisiwas organized for the purpose of becoming a bank tion would not have any significant adverse effects on holding company by acquiring Bank, which holds competition or on the concentration of resources in deposits of $30.4 million.1 Bank is the largest of five any relevant area. banking organizations in the Monroe County banking The financial and managerial resources and future market and holds approximately 39.9 percent of the prospects of Applicant, its subsidiaries and Bank are total deposits in commercial banks in the market. regarded as generally satisfactory. Accordingly, con- This proposal involves a restructuring of Bank's siderations relating to banking factors are consistent ownership from individuals to a corporation owned by with approval. Moreover, Bank's affiliation with Ap- the same individuals. Bank's principals, who complicant will enable Bank to avail itself of Applicant's menced BanK de novo in 1904, are also directors of resources and services. Thus, considerations relating First National Bank of Monroeville, Monroeville, Alato the convenience and needs of the community to be bama ("FNB"), and until 1948 owned 50.4 percent of served lend slight weight toward approval and out- the stock of FNB. In 1948, these principals donated weigh any adverse competitive effects that might re- 50.4 percent of the voting stock of FNB to Bank. Bank sult from consummation of the proposal. Accordingly, became a registered bank holding company with rethe Board has determined that consummation of the spect to FNB by virtue of enactment of the 1970 transaction would be in the public interest and that the Amendments to the Bank Holding Company Act, application should be approved. which covered for the first time a company that owned On the basis of the record, this application is ap- or controlled one bank. FNB, with deposits of $12.3 proved for the reasons summarized above. The trans- million, also competes in the Monroe County banking action shall not be made before the thirtieth calendar market, where it currently controls 16.1 percent of day following the effective date of this Order, or later total deposits in commercial banks in the market. than three months after the effective date of this Section 3(c) of the Act precludes the Board from Order, unless such period is extended for good cause approving any proposed acquisition of a bank that (1) by the Board or by the Federal Reserve Bank of Dallas would result in a monopoly, or would be in furtherance acting pursuant to delegated authority. of any combination or conspiracy to monopolize or By order of the Board of Governors, effective attempt to monopolize the business of banking in any March 7, 1983. part of the United States; or (2) may substantially lessen competition or tend to create a monopoly or be Voting for this action: Chairman Volcker and Governors Martin, Partee, Teeters, and Rice. Absent and not voting: Governors Wallich and Gramley. (Signed) JAMES MCAFEE, 1. All banking data are as of September 30, 1982, unless otherwise [SEAL] Associate Secretary of the Board noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 Federal Reserve Bulletin • April 1983 in restraint of trade in any banking market, unless the By order of the Board of Governors, effective Board finds that such anticompetitive effects are clear- March 15, 1983. ly outweighed by the convenience and needs of the community to be served. In analyzing a case under Voting for this action: Chairman Volcker, Vice Chairman these standards where, as here, the principals of an Martin and Governors Wallich, Partee, Teeters, Rice, and Gramley. applicant control another banking organization in the same market as the bank to be placed in the holding company, the Board considers the competitive effects (Signed) JAMES MCAFEE, of the transaction whereby common control of the [SEAL] Associate Secretary of the Board formerly competing institutions was established.2 In this instance, common control of Bank and FNB was KYNB Bancshares, Inc., established in 1938, well before enactment of the Bank Lexington, Kentucky Merger Act of 1960 or the Celler-Kefauver Antimerger Act of 1950, which subjected the merger of organiza- Order Approving Formation of a Bank Holding tions to scrutiny under the Clayton Antitrust Act. At Company that time, Bank held deposits of $375,000 and FNB held deposits of $175,000. During the 46 years Bank KYNB Bancshares, Inc., Lexington, Kentucky, has and FNB have been affiliated, the affiliation has not applied for the Board's approval under section 3(a)(1) been challenged by any state or federal regulatory of the Bank Holding Company Act (12 U.S.C. authority. In fact, a proposed merger between Bank § 1842(a)(1)) to become a bank holding company by and FNB has been previously approved by the Comp- acquiring 95 percent of the voting shares of Citizens troller of the Currency, but was not consummated for Union National Bank & Trust Co., Lexington, Kenreasons unrelated to the federal antitrust laws. After tucky ("Bank"). considering the facts of record, including the size of Notice of the application, affording opportunity for the institutions at the time of affiliation and the sub- interested persons to submit comments, has been stantial number of years that the institutions have been given in accordance with section 3(b) of the Act. The affiliated, the Board concludes that competitive con- time for filing comments has expired, and the Board siderations are consistent with approval of the applica- has considered the application and all comments retion. ceived in light of the factors set forth in section 3(c) of Because of the affiliation between Bank and FNB, the Act. the Board has considered their financial and manageri- Applicant, a nonoperating corporation with no subal resources under the Board's multi-bank holding sidiaries, was organized for the purpose of becoming a company standards. Based upon such an analysis in bank holding company by acquiring Bank, which holds this case, the financial and managerial resources and deposits of approximately $173 million.1 Upon acquisifuture prospects of Applicant, bank and FNB appear tion of Bank, Applicant would control the ninth largest to be satisfactory. Therefore, considerations relating bank in Kentucky and would hold approximately 1.1 to banking factors are consistent with, but lend no percent of the total deposits in commercial banks in weight toward approval of the application. Consider- the state. ations relating to convenience and needs of the com- Bank is the second largest of 21 commercial banking munity to be served also are consistent with approval organizations in the Lexington banking market and of this application. Accordingly, it is the Board's holds approximately 11.3 percent of total deposits in judgment that the proposed acquisition is in the public commercial banks in the market.2 Although one of interest and that the application should be approved. Applicant's principals is a principal in another bank, On the basis of the record, the application is ap- this bank does not compete in the Lexington banking proved for the reasons summarized above. The trans- market. Accordingly, consummation of the proposal action shall not be consummated before the thirtieth would not result in any adverse effects upon competicalendar day following the effective date of this Order tion or increase the concentration of banking reor later than three months after the effective date of sources in any relevant area. this Order, unless such period is extended for good The financial and managerial resources and future cause by the Board or by the Federal Reserve Bank of prospects of Applicant are satisfactory and its future Atlanta acting pursuant to delegated authority. 1. All banking data are as of June 30, 1981. 2. See Mid Nebraska Bancshares, Inc., v. Board of Governors of 2. The Lexington banking market is approximated by Fayette, the Federal Reserve System, 627 F.2d 266 (D.C. Cir. 1980). Scott, Woodford, Jessamine, and Bourbon Counties in Kentucky. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 295 prospects appear favorable. In addition, as a result of in commercial banks in the state.1 Upon acquisition of consummation of this proposal, Bank's financial and Bank, with total assets of $56 million2 and deposits of managerial resources will be strengthened. Thus, con- 46.7 million, Rainier would control the eleventh largest siderations relating to banking factors lend weight bank in Alaska and 2.4 percent of total deposits in toward approval of the application as do consider- commercial banks in the state.3 ations relating to the convenience and needs of the Section 3(d) of the Bank Holding Company Act (12 community to be served. Thus, based on the foregoing U.S.C. § 1842(d)) prohibits the Board from approving and other facts of record, the Board has determined any application by a bank holding company to acquire that consummation of the proposed transaction would any bank located outside of the state in which operabe in the public interest and that the application should tions of the bank holding company's subsidiaries are be approved. principally conducted, unless such acquisition is "spe- On the basis of the record, the application is ap- cifically authorized by the statute laws of the state in proved for the reasons summarized above. The trans- which such bank is located, by language to that effect action shall not be consummated before the fifth and not merely by implication." Alaska statute law calendar day following the effective date of this Order, authorizes an "out-of-state bank holding company" to or later than three months after the effective date of acquire "one or more state banks, domestic bank this Order, unless such period is extended for good holding companies, or national banks conducting busicause by the Board, or by the Federal Reserve Bank of ness in the state unless the state bank or national bank Cleveland pursuant to delegated authority. is a recently formed bank."4The Alaska Statutes were By order of the Board of Governors, effective amended in July 1982 and Rainier proposes the first March 21, 1983. acquisition of an Alaskan bank by an out-of-state bank holding company under the new statute. Voting for this action: Chairman Volcker and Governors Rainier, an out-of-state bank holding company with- Martin, Wallich, Partee, Teeters, Rice, and Gramley. in the meaning of the Alaskan statute5, is eligible to acquire an Alaskan bank. In addition, Bank, which (Signed) JAMES MCAFEE, was organized over thirteen years ago, is not a recent- [SEAL] Associate Secretary of the Board ly formed bank such that it cannot be acquired by an out-of-state bank holding company. The State Banking Authority of Alaska has determined that Rainier's Rainier Bancorporation, proposed acquisition is permitted under Alaska law. Seattle, Washington Therefore, based on the foregoing, the Board has determined, as required by section 3(d) of the Act, that the proposed acquisition is specifically authorized by, Order Approving Acquisition of a Bank and conforms with, the statute laws of Alaska. Bank operates three offices, all of which are located Rainier Bancorporation, Inc., Seattle, Washington in the Anchorage metropolitan banking market,6 and ("Rainier"), a bank holding company within the meanholds 4.1 percent of the deposits in commercial banks ing of the Bank Holding Company Act ("Act"), has in the Anchorage market. Inasmuch as Rainier's bankapplied for the Board's approval under section 3(a)(3) ing subsidiary does not operate in Anchorage, conof the Act (12 U.S.C. § 1842(a)(3)) to acquire 90 summation of the proposal would not eliminate any percent or more of the voting shares of Peoples Bank existing competition between Rainier's banking suband Trust Company, Anchorage, Alaska ("Bank"). sidiary and Bank. However, Rainier's mortgage com- Notice of the application, affording opportunity for pany subsidiary maintains an office in Anchorage, interested persons to submit comments, has been which originated $34.9 million in real estate loans given in accordance with section 3(b) of the Act. The during 1981. Bank originated $51.6 million in real time for filing comments has expired, and the Board estate loans during the same period. While the prohas considered the application and all comments reposed acquisition would eliminate some existing comceived, including those of the Division of Banking, petition between Rainier and Bank with respect to Securities, Small Loans and Corporations of the State mortgage origination services, the Board does not of Alaska, in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). Rainier, the second largest banking organization in Washington, maintains a network of 135 branches 1. Banking data are as of September 30, 1982. throughout the state of Washington through its only 2. Banking data are as of September 30, 1982. banking subsidiary, Rainier National Bank. Rainier 3. Banking data are as of June 30, 1982. 4. Alaska Stat. § 06.05.235 (1982). has consolidated assets of $5.9 billion and holds $4.4 5. Alaska Stat. § 06.05.235(h) (1982). billion or approximately 20.4 percent of total deposits 6. This market is approximated by the Anchorage Division, Alaska. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 Federal Reserve Bulletin • April 1983 view this effect as substantially adverse since numer- Bank Holding Company Act ("Act"), has applied for ous other competitors provide such services in the the Board's approval under section 4(c)(8) of the Act market, including commercial banks, thrift institu- (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the tions, credit unions, and other mortgage companies. Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to In view of the lack of concentration in the market, acquire through its wholly owned subsidiary, Mellon the size of Bank, and the number of potential entrants Mortgage, Inc.-Texas, substantially all of the assets of into the market, the Board concludes that consumma- Mortgage and Trust, Inc. and an affiliated company, tion of this proposal would not have any significant Caroline Realty Co., both of Houston, Texas (collecadverse effects on probable future competition in the tively "M & T"). M & T engages primarily in the relevant market. origination, sale and servicing of mortgage loans. In The financial and managerial resources of Rainier, addition, M & T is engaged in the sale of credit-related its subsidiaries and Bank are considered satisfactory life, accident and health insurance to customers who and their future prospects appear favorable. Thus, have been granted extensions of credit by M & T. considerations relating to these banking factors are M & T also acts as an investment advisor to a real consistent with approval of the application. estate investment trust. Each of these activities has Affiliation with Rainier will enable Bank to improve been determined by the Board to be closely related to its current services and to provide new services to its banking, (12 C.F.R. §§ 225.4(1), (3), (5), and (9)). customers. These services include improved cash Notice of the application, affording opportunity for management and checking account services, as well as interested persons to submit comments on the public the introduction of electronic banking services to interest factors has been duly published (47 Federal Bank's market area. Thus, the Board concludes that Register 57345 (1982)). The time for filing comments considerations relating to the convenience and needs has expired, and the Board has considered the applicaof the communities to be served are favorable and are tion and all comments received in light of the public sufficient to outweigh any anticompetitive effects of interest factors set forth in section 4(c)(8) of the Act. the proposal. Accordingly, it is the Board's judgment Applicant, with total assets of $21.1 billion,1 is the that the proposed transaction would be in the public largest commercial banking organization in Pennsylvainterest and that the application should be approved. nia and the 16th largest in the United States. In Based on the foregoing and all the facts of record, addition, Applicant engages in the following nonbank the application by Rainier to acquire Bank is hereby activities: leasing, data processing, reinsurance activiapproved. The transaction shall not be made before ties, mortgage banking, and consumer and commercial the thirtieth calendar day following the effective date finance activities. M & T is headquartered in Houston, of this Order, or later than three months after the Texas, and is the 27th largest mortgage company in the effective date of the Order, unless such period is nation with total consolidated assets of $214.5 million. extended for good cause by the Board or by the M & T has offices in Texas and Colorado. Federal Reserve Bank of San Francisco acting pursu- One product market to be considered in evaluating ant to delegated authority. the competitive effects of Applicant's proposal is the By order of the Board of Governors, effective origination of l-to-4 family residential mortgages. March 29, 1983. Mortgage banking companies complete with other types of financial institutions, such as commercial Voting for this action: Chairman Volcker and Governors banks and thrift institutions, for this business, and the Martin, Wallich, Partee, Teeters, Rice, and Gramley. relevant geographic market for this activity is approximated by the local banking markets. In this case, (Signed) JAMES MCAFEE, M & T and Applicant originate mortgages in two of [SEAL] Associate Secretary of the Board the same markets, the Denver and Houston banking markets.2 In 1981, Applicant originated $13.5 million in such mortgages in the Denver market, representing Orders Under Section 4 of Bank Holding 1.1 percent of the total mortgages originated in the Company Act market. In the same year, M & T originated $5.5 million in residential mortgages, representing a 0.4 Mellon National Corporation, Pittsburgh, Pennsylvania Order Approving Acquisition of Nonbank Company 1. Banking data are of September 30, 1982. 2. The Denver banking market is approximated by the Denver Mellon National Corporation, Pittsburgh, Pennsylva- SMSA and the Houston banking market is approximated by the nia, a bank holding company within the meaning of the Houston SMSA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 297 percent market share. Although the consummation of come the eighth largest mortgage servicing company in the proposal would reduce the number of competitors the country. In view of the size of the two companies in the Denver market, the combined market share of involved in the proposal and based upon all the facts of Applicant and M & T is relatively small, and approxi- record, consummation of the proposal would have mately 300 other residential mortgage lenders would some negative effects with respect to the concentraremain. tion of resources. Nevertheless, the Board believes In the Houston market, Applicant originated $7.5 that such negative effects are mitigated by the large million in l-to-4 family residential mortgages in 1981, number of competitors that will remain in the market representing 0.2 percent of such mortgage loans origi- after consummation and the low barriers to entry for nated. In 1981, M & T made $53.0 million in such mortgage servicing. When balanced against the public loans, representing a 1.4 percent market share. Con- benefits expected to result from this transaction, the summation of the proposal would result in a combined Board believes the proposal warrants approval. market share of 1.6 percent, and over 400 other M & T is a closely held company facing problems of competitors would remain after consummation. In management succession. Affiliation with Applicant light of the unconcentrated nature of the Denver and will ensure that M & T continues to be a strong Houston markets, the low resulting market share, and competitor. Applicant also has the resources to the large number of other competitors that would strengthen M & T's capital structure and to help remain after consummation, the Board believes that M & T modernize its operations. consummation of the proposal will not have significant On the basis of these and other facts of record, the adverse effects on existing competition in the Denver Board concludes that the benefits to the public that or Houston markets. would result from Applicant's acquisition of M & T are With regard to potential competition, M & T has sufficient to outweigh the negative effects on competioffices and originates loans in eight Texas markets3 in tion and concentration of resources that would result which Mellon does not operate. Because of its finan- from the proposed acquisition. Furthermore, there is cial and managerial resources, Mellon appears to have no evidence in the record to indicate that consummathe potential to enter these markets. M & T, however, tion of the proposed transaction would result in unfair has less than 10 percent of the market share in all but competition, conflicts of interest, unsound banking one of these markets4 and there are a large number of practices or any other effects that would be adverse to other competitors in each of these areas. These factors the public interest. mitigate the negative effects on the proposal in terms Based upon the foregoing and other considerations of potential competition in these markets. Mellon reflected in the record, the Board has determined that operates its mortgage lending on a nationwide basis the balance of the public interest factors the Board is and M & T might be considered a potential entrant into required to consider under section 4(c)(8) is favorable. a number of Mellon's markets. M & T, however, does Accordingly, the application is hereby approved. This not have a history that would indicate that it would determination is subject to the conditions set forth in expand its operations outside Texas and Colorado. In § 225.4(c) of Regulation Y and to the Board's authority addition, a large number of competitors would remain to require such modification or termination of the after consummation of the proposal. Accordingly, activities of a holding company or any of its subsidiarelimination of M & T as a competitor will not result in ies as the Board finds necessary to assure compliance an adverse effect on potential competition. with the provisions and purposes of the Act and the Applicant also proposes to acquire the $2.6 billion Board's regulations and orders issued thereunder, or mortgage servicing portfolio of M & T, which ranks as to prevent evasion thereof. The transaction shall be the 27th largest mortgage servicer in the country and made not later than three months after the effective holds about 0.9 percent of the national market. Appli- date of this Order, unless such period is extended for cant's subsidiaries service a mortgage portfolio of $2.2 good cause by the Board or by the Federal Reserve billion representing 0.7 percent of the national market, Bank of Cleveland pursuant to delegated authority. and they rank as the nation's 30th largest mortgage By order of the Board of Governors, effective servicer. After consummation, Applicant would be- March 7, 1983. Voting for this action: Chairman Volcker, Governors Martin, Partee, Teeters, and Rice. Absent and not voting: Governors Wallich and Gramley. 3. These markets are approximated by the Austin, Corpus Christi, Dallas, Fort Worth, El Paso, Lubbock, Midland/Odessa, and San Antonio SMSAs. 4. M & T holds a 13.7 percent market share in the San Antonio (Signed) JAMES MCAFEE, market. [SEAL] Associate Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 Federal Reserve Bulletin • April 1983 Orders Under Section 3 and 4 of Bank Holding mercial banks in the state. Upon consummation of this Company Act proposal, Applicant's share of the total deposits in commercial banks in the state would increase to 15.3 First Tennessee National Corporation, percent. The Board concludes that consummation of Memphis, Tennessee this transaction would not have a significant effect on the concentration of banking resources in Tennessee. Order Approving Merger of Bank Holding Subsidiary banks of Applicant compete directly with Companies, and Acquisition of Leasing Company subsidiary banks of Company in the Knoxville and Hamblen County banking markets. Company operates First Tennessee National Corporation, Memphis, Ten- one bank in the Knoxville banking market, Maryville nessee, a bank holding company within the meaning of Bank, which is located in the Blount County portion of the Bank Holding Company Act of 1956, as amended the market. Maryville Bank is the fifth largest of 12 (12 U.S.C. § 1841 et seq.), has applied for the Board's banking organizations in the market and holds deposits approval under section 3(a)(5) of the Act (12 U.S.C. of $167.5 million, representing 7.1 percent of the total § 1842(a)(5)), to merge with Mountain Financial Com- deposits in commercial banks in the market.2 pany, Maryville, Tennessee ("Company"), also a On November 18, 1982, when this application was bank holding company, under the charter and name of filed, Applicant controlled one bank in the Knoxville Applicant. As a result of the merger, Applicant would market with $150 million in deposits, representing 6.4 acquire company's two subsidiary banks, Bank of percent of the total deposits in commercial banks in Maryville, Maryville, Tennessee ("Maryville Bank"), the market. This application was scheduled for considand Jefferson County Bank, Dandridge, Tennessee eration at the meeting of the Board held on February ("Jefferson Bank"). 16, 1983, and based upon the record, the competitive, Applicant has also applied for the Board's approval financial and managerial and convenience and needs under section 4(c)(8) of the Act (12 U.S.C. § 1843(c) aspects of this application were at that time consistent (8)) and section 225.4(b)(2) of the Board's Regulation with approval. On the evening of February 14, 1983, Y (12 C.F.R. § 225.4(b)(2)), to acquire indirectly the Federal Deposit Insurance Corporation, under the Mountain Leasing Company, Maryville, Tennessee emergency provisions of the Bank Merger Act of 1966, ("Leasing"). Leasing engages in the activity of leasing approved a merger of Applicant's subsidiary bank in equipment to the Maryville Bank for use by that bank. Knoxville, First Tennessee Bank, with the largest Such activities have been determined to be closely bank in the Knoxville market, United American Bank related to banking (12 C.F.R. § 225.4(a)(6)(a)). in Knoxville ("UAB"). At approximately 5:00 a.m. on Notice of the applications, affording opportunity for Monday, February 14, 1983, UAB had been closed by interested persons to submit comments and views, has the Tennessee Banking Commissioner and its assets been given in accordance with sections 3 and 4 of the and liabilities transferred to the FDIC as receiver. Act (47 Federal Register 55033 (1982)). The time for After the merger, Applicant controlled the largest filing comments has expired and the Board has consid- bank in the market and 30.3 percent of the total ered the applications and all comments received in deposits in commercial banks in the market and the light of the factors set forth in section 3(c) of the Act share of market deposits held by the four largest (12 U.S.C. § 1842(c)) and the considerations specified banking organizations in the market increased from in section 4(c)(8) of the Act. 60.9 to 67.3 percent. Applicant is the largest commercial banking organi- Upon acquisition of Company, Applicant would zation in Tennessee and controls 14 subsidiary banks control 37.4 percent of the total deposits in commerwith total deposits of $3.0 billion, representing 14.3 cial banks in the Knoxville banking market, and the percent of total deposits in commercial banks in the four-firm concentration ratio for the market would state.1 Company is the 14th largest commercial bank- increase by 7 percentage points to 74.2 percent. The ing organization in the state, controlling two subsid- Herfindahl-Hirschman index ("HHI") in the Knoxiary banks with aggregate deposits of $199.8 million, ville banking market would increase by 430 points representing 0.9 percent of the total deposits in com- from 1587 to 2017, making the transaction one that 1. Unless otherwise indicated, all banking data are as of June 30, 1982, and reflect bank holding company acquisitions approved as of 2. The Knoxville banking market consists of the Knoxville RMA March 15, 1983. and includes Anderson, Blount, and Knox Counties in Tennessee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 299 would be subject to challenge by the Department of With respect to commercial loans, the FDIC has Justice under its merger guidelines.3 indicated that extensive losses are expected to be Applicant asserts that the effect of this transaction incurred in the loan portfolio acquired by Applicant, as will not be substantially to lessen competition for the a result of the large number of loan classifications at following reasons. First, Applicant argues that Blount UAB.6These expected losses will reduce Applicant's County, where Company is located, should be consid- share of commercial loans in the market. ered a separate market from Knox County where Although the Board has not to date included thrift Applicant is located. Second, Applicant contends that, institutions generally in the commercial banking line of while it controls 30.3 percent of the market's commer- commerce, the Board has, in a number of previous cial bank deposits based on June 1982 figures, its cases, considered the presence of thrift institutions in market share is likely to decrease substantially as a the particular market and the extent of competition result of expected deposit and loan losses associated afforded by such institutions as a mitigating factor in with the failure of UAB. Third, Applicant urges that its evaluation of the impact of a proposal on existing competition from thrift institutions in the Knoxville competition.7 The enactment of the Consumer Checkbanking market is substantial and should be taken into ing Account Equity Act of 1980,8 which authorized account when evaluating the competitive effects of this thrift institutions to offer NOW accounts, and the proposal. Garn-St Germain Depository Institutions Act of 1982,9 The Board has previously indicated that the relevant which greatly expanded the commercial lending powgeographic market within which to evaluate the effects ers of federal thrift institutions, and regulatory actions of a transaction must reflect commercial and banking by the Federal Home Loan Bank Board and various realities and should consist of the localized area where state statutes have significantly expanded the services banks involved offer their services and where local that thrifts may offer. As a result, thrift institutions customers can practicably turn for alternatives.4 In have become, or at least have the potential to become, this case, the Board has considered the record and major competitors of commercial banks not only in the finds that, because of the substantial commuting be- provision of consumer banking services but also in the tween Blount and Knox counties and other facts of provision of commercial lending services. These derecord, the Knoxville RMA, which includes Blount velopments, coupled with the size and market share County, is the appropriate market within which to held by thrift institutions in numerous markets, permeasure the effects of this merger.5 suade the Board that in many cases the competition Before its failure on February 14, 1983, UAB was afforded by thrift institutions to commercial banks the largest bank in the Knoxville banking market, may be substantial. holding 23.9 percent of the total deposits in commer- In this case, thrift institutions control 34 percent of cial banks in the market. As a result of the failure of the total deposits in the Knoxville market and federal- UAB and factors associated with that failure, Appli- ly chartered savings and loan associations control cant projects substantial losses of deposits and loans approximately 25 percent of the total deposits in the acquired in its merger with UAB and expects its share market. The three largest thrift institutions in the of deposits in commercial banks in the market to market are federally chartered and each control well decrease to 25 percent or less. While the Board makes over $100 million in deposits. The largest savings and no judgment as to the precise magnitude of the decline loan association in the market controls $473 million in in deposits, the Board believes that the record in this deposits, and, on this basis, would be the second case supports Applicant's contention that its competi- largest financial institution in the market. In the tive position in the Knoxville banking market, as Board's judgment, thrift institutions provide an altermeasured by its share of deposits in commercial banks native for consumer banking services in the Knoxville in the market based on June 30, 1982 data, is over- banking market, and the Board believes that the stated. 3. United States Department of Justice Merger Guidelines, June 14, 6. Statement by William Isaac, Chairman, FDIC, on United Ameri- 1982. If the post-merger HHI for the market is over 1800, the can Bank in Knoxville, presented to the Subcommittee on Commerce, Department is likely to challenge a merger that produces an increase Consumer and Monetary Aifairs, Committee on Government Operain the HHI of 100 points or more. tions, House of Representatives, 6-7, March 15, 1983. 4. See Wyoming Bancorporation, 68 FEDERAL RESERVE BULLETIN 7. First Bancorp of N.H., 68 FEDERAL RESERVE BULLETIN 769 313, 314 (1982), St. Joseph Valley Bank, 68 FEDERAL RESERVE (1982); United Bank Corporation of New York, 67 FEDERAL RESERVE BULLETIN 673, 674 (1982). BULLETIN 358 (1981); and Fidelity Union Bancorporation, 66 FEDER- 5. Preliminary figures from the 1980 Census show that approximate- AL RESERVE BULLETIN 576 (1980). ly one quarter of the labor force living in Blount County commute into 8. Title III, 96 Stat. 132, 145, codified at 12 U.S.C. § 1832. Knoxville to work. 9. Title III, 96 Stat. 1469, 1499-1500. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 Federal Reserve Bulletin • April 1983 presence of thrift institutions and the competitive sought to arrange for an FDIC-assisted merger of UAB influence they exert in this market should be given with one of a number of Tennessee banks, including considerable weight in assessing the competitive ef- Applicant's subsidiary in the Knoxville market. fects of this transaction, even though the thrift institu- During the early morning hours of Monday, Februtions are not presently exercising their recently ex- ary 14, Applicant proposed an offer to merge UAB into panded commercial lending powers to any significant Applicant's Knoxville subsidiary that was generally extent. satisfactory to the FDIC. The offer was made in the In a number of previous cases, the Board has belief that the acquisition of UAB would not prejudice indicated that the competitive influence in a market of this application. At that time, Applicant's offer was the the largest bank holding companies in a state may be only acceptable and available alternative to assure the greater than what would be expected based on their reopening of UAB on Monday. However, it was not market shares alone, especially with respect to their possible to arrange a merger in time for a Monday ability to serve local commercial customers.10 In this opening. At this point the Banking Commissioner case, upon consummation of the proposal, 10 other determined that UAB was insolvent and closed the banking organizations would remain in the market, bank, and the FDIC decided to seek bids for UAB including three of Tennessee's largest bank holding from other organizations. companies. These organizations as well as other orga- Nevertheless, Applicant advised the FDIC that its nizations operating in the market provide a number of proposal to acquire UAB would remain open Monalternatives for commercial financing for locally limit- dany and that, if the FDIC did not obtain other bidders ed commercial customers. for UAB, Applicant stood ready to proceed on the For the foregoing reasons, the Board believes that basis of its offer. In order to assure the public with the degree of anticompetitive effect that might normal- respect to the situation at UAB, the FDIC advised the ly be expected to result from a combination of banking public that it had an outstanding offer from a large organizations with market shares of the size involved Tennessee banking organization to assume the assets here is not likely to result upon consummation of this and liabilities of UAB that was generally satisfactory proposal. to the FDIC; that the FDIC was seeking other alterna- Finally, the Board believes that the competitive tives, both within and outside the State of Tennessee; effects of this proposal should be evaluated in the and that the FDIC expected to consummate a merger context of the important benefits to the convenience between UAB and other banking organization that and needs of the Knoxville market resulting from evening and to reopen UAB at normal business hours Applicant's acquisition of UAB, which occurred one on Tuesday, February 15, 1983. day before the Board was scheduled to consider this On Monday, February 14, the FDIC received eight application. bids for UAB, only three of which would have reduced The record shows that, prior to February 14, 1983, the FDIC's cost below that of a payoff of UAB's UAB's financial condition had deteriorated markedly insured depositors. After the highest bidder was unand it was experiencing a steady "run" of large able to consummate the proposal in time to reopen creditors.11 Late on Sunday, February 13, 1983, it UAB on February 15, the FDIC determined that became apparent that UAB was insolvent and could Applicant's bid, which was the second highest bid, not open for business on Monday without the real should be accepted in order to assure UAB's opening possibility of a massive run on the bank. In an attempt on February 15. Accordingly, the FDIC approved a to obtain a solution that would allow UAB to open on merger of First Tennessee Bank with UAB. Monday morning, avoid disruption of the business of Applicant's acquisition of UAB allowed the largest UAB's customers and maintain public confidence in bank in the market to open on Tuesday morning, as the banking system, the FDIC, late on February 13, promised by the FDIC, avoided further disruption of the business of UAB's customers and favorably resolved a volatile situation in the Knoxville market that threatened public confidence in the market's largest banking organization and the banking system. The benefits to the convenience and needs of the Knoxville 10. United Bank Corporation of New York, 67 FEDERAL RESERVE market, the State of Tennessee, and the banking BULLETIN, 358 (1981); First Bancorporation of Ohio, 67 FEDERAL system are obvious and substantial. RESERVE BULLETIN 799 (1981); Bank of New York ("Empire"), 66 FEDERAL RESERVE BULLETIN 807 (1980). In these circumstances, and considering the lack of 11. Informational supplement to the testimony of William Isaac, acceptable alternatives to the FDIC to resolve UAB's supra, n. 9, at 16. In fact, some businesses had posted signs stating failure effectively and expeditiously and to reopen that UAB checks were not welcome and one of UAB's branches had experienced a retail depositor "run". UAB's offices without further disruption to the public, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 301 the Board believes that any anticompetitive effects in expand in the market, its small absolute and relative the Knoxville banking market associated with this size, and the low population in the area where White proposal are outweighed by the benefits to the conve- Pine is located, the Board concludes that consummanience and needs of the community associated with tion of the proposal is not likely substantially to lessen Applicant's acquisition of UAB. competition in the Hamblen County market. Jefferson Bank, Company's other subsidiary bank, Jefferson Bank's remaining branch is located in the operates two branches, one in Dandridge and one in Jefferson County market, a market in which Applicant the town of White Pine, which is in the upper north- is not represented. Jefferson Bank is one of four banks eastern section of Jefferson County. The Board previ- in the Jefferson County market and holds 31.4 percent ously defined the Jefferson County banking market to of total deposits in commercial banks in the market. consist of all of Jefferson County, which includes the Based upon evidence with respect to the structure and town of White Pine. However, based upon a study of attractiveness of the Jefferson County market, the commuter, shopping and service information, the Board concludes that consummation of this transac- Board has determined that the northeastern portion of tion will not substantially lessen probable future com- Jefferson County, including the town of White Pine, petition in the Jefferson County market. There are no should be included in the neighboring Hamblen Coun- foothold entry points in the market and Applicant is ty banking market instead of the Jefferson County prohibited by law from entering the market de novo banking market.12 until January 1, 1985.15 The ratio of deposits to bank- Applicant is the third largest banking organization in ing offices in this market is significantly lower than the Hamblen County market and holds deposits of that of other markets in Tennessee, and, the economic $30.8 million representing 16.4 percent of the total condition of Jefferson County has declined markedly deposits in commercial banks in the market. Jefferson since 1975. Bank's White Pine branch (White Pine) is the smallest The financial and managerial resources and future of five banks in the Hamblen County market and holds prospects of Applicant, Company and their respective deposits of $2.7 million, representing 1.4 percent of the subsidiaries are considered satisfactory and consistent total deposits in commercial banks in the market. with approval. While there is no evidence in the record Upon consummation of this transaction, Applicant's indicating that the banking needs of the communities market share would increase to 17.8 percent of the to be served are not being met, Applicant has indicated total deposits in commercial banks in the market and that customers of Company would benefit from the Applicant's rank in the market would be unchanged. addition of new services, such as daily versus semian- The Hamblen County banking market is highly con- nual compounding of savings account interest, higher centrated, with a four-firm concentration ratio of 98.7 rates on floating rate IRA accounts, and lower premipercent which would increase to 100 percent upon ums on credit life insurance policies. In addition, consummation.13 However, the high level of concen- Company's customers will have access to increased tration in the market is due primarily to the large trust, mortgage loan and international services as well market shares of the two leading firms which together as the VISA debit card, which is offered exclusively by control nearly 75 percent of the market's deposits. Applicant in Tennessee. These additional benefits to Moreover, the structure of the Hamblen County the convenience and needs of the community to be market is such that a branch location in Morristown served lend weight toward approval of the proposal. appears essential for growth and profitability in the Applicant has also applied to acquire Company's market. White Pine is prohibited by Tennessee law existing leasing subsidiary, Leasing. Leasing is enfrom branching into Hamblen County.14 As a result, gaged solely in the activity of leasing equipment to White Pine has consistently held only one percent of Company's Maryville Bank for that bank's use. Thus, the total deposits in the market. In view of these Leasing does not compete with Applicant's existing constraints on White Pine's ability to compete and leasing subsidiary. Accordingly, consummation of the proposed merger would not decrease competition in this line of commerce. There is no evidence in the record to indicate that approval would result in other 12. The analysis revealed that residents of the town of White Pine adverse effects such as undue concentration of retend to work, shop and obtain most needed services in Morristown, sources, unfair competition, conflicts of interests, or which is the county seat of Hamblen County, and do not depend to any significant degree on Jefferson County towns for employment, unsound banking practices. Accordingly, the Board shopping or services. has determined that the balance of the public interest 13. The Herfindahl-Hirschman index of the Hamblen County market is 3156 and will increase by only 46 points upon consummation of the merger. Thus, the merger does not appear to be one that would be subject to challenge by the Department of Justice. 14. Tenn. Code Ann. § 45-2-614 (1980). 15. Tenn. Code Ann. § 45-2-1403 (2) (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 Federal Reserve Bulletin • April 1983 factors it must consider under section 4(c)(8) of the relevant precedent. Moreover, while Applicant is like- Act is consistent with approval of the application. ly to lose some loans as a result of the failure of UAB, Based on the foregoing and other facts of record, the it does not appear that the loan losses will be sufficient Board has determined that the applications under to substantially alter Applicant's market position. sections 3(a)(5) and 4(c)(8) should be and are hereby Finally, the record in this case indicates that, notapproved. The merger shall not be made before the withstanding their expanded commercial lending authirtieth calendar day following the effective date of thority, thrift institutions in the Knoxville market are this Order, and neither the merger nor the acquisition not extensively engaged in making commercial loans of the nonbanking subsidiary shall be made later than and do not therefore provide competition over the full three months after the effective date of this Order, range of services offered by commercial banks. In unless such period is extended for good cause by the addition, thrift institutions hold only 34 percent of the Federal Reserve Bank of St. Louis pursuant to dele- total deposits in the market. Based on these facts, and gated authority. The determination as to Applicant's consistent with prior Board and judicial decisions, I acquisition of Company's nonbanking subsidiary is believe that the presence of thrift institutions in the subject to the conditions set forth in section 225.4(c) of Knoxville market does not mitigate the substantial Regulation Y (12 C.F.R. § 225.4(c)) and to the Board's anticompetitive effect of this transaction. authority to require such modifications or termination I am voting to approve this application, however, of activities of a holding company or any of its because I believe that the anticompetitive effects of subsidiaries as the Board finds necessary to assure this transaction are clearly outweighed in the public compliance with the provisions and purposes of the interest by the facts related to Applicant's acquisition Act and the Board's regulations and Orders issued of UAB. I believe these two transactions should be thereunder, or to prevent evasion thereof. considered together and that the substantial benefits to By order of the Board of Governors, effective, the public associated with resolving the UAB situation March 31, 1983. quickly and effectively should be attributed to this application. Voting for this action: Chairman Volcker and Governors Partee, Rice, and Gramley. Absent and not voting: Gover- March 31, 1983 nors Martin and Wallich. Abstaining: Governor Teeters. (Signed) JAMES MCAFEE, Mellon National Corporation, [SEAL] Associate Secretary of the Board. Pittsburgh, Pennsylvania Order Approving Merger of Holding Companies and Concurring Statement of Governor Rice Acquisition of Companies Engaged in Leasing, Data Processing, Insurance, and Investment Advising I believe that the effect of this transaction would be Activities substantially to lessen competition in the Knoxville banking market and that this effect is not mitigated to Mellon National Corporation, Pittsburgh, Pennsylvaany significant extent by the factors enumerated by the nia ("Mellon"), a bank holding company within the majority. meaning of the Bank Holding Company Act of 1956, as Upon consummation of this proposal, Applicant's amended (12 U.S.C. § 1841 et seq.), has applied for share of total deposits in commercial banks in the the Board's approval under section 3(a)(5) of the Act Knoxville banking market would increase to 37.4 (12 U.S.C. § 1842(a)(5)) to merge with The Girard percent and the Herfindahl-Hirschman index (HHI) in Company, Bala Cynwyd, Pennsylvania ("Girard") the market would increase by 430 points from 1587 to also a bank holding company. As a result of the 2017. Based on previous Board and judicial precedent, merger, Mellon would acquire Girard's two subsidiary these increases in market share and concentration banks, Girard Bank, Philadelphia, Pennsylvania, and reflect a transaction whose effect would substantially Girard Bank Delaware, Dover, Delaware. lessen competition in the relevant geographic market. Mellon has also applied for the Board's approval Even accepting Applicant's projection of a loss of $150 under sections 4(c)(8) and (13) of the Act (12 U.S.C. million in deposits, this transaction would produce a § 1843(c)(8) and (13)) to acquire the following nonfirm controlling 33.2 percent of the total deposits in banking subsidiaries of Girard: Girard Leasing Corpocommercial banks in the market and the HHI would ration, Bala Cynwyd, Pennsylvania, which engages in increase by 391 points from 1395 to 1786, again reflect- the activity of leasing personal property and equiping a substantially anticompetitive transaction under ment; Girard Services, Inc., Philadelphia, Pennsylva- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 303 nia, which provides data processing and data transmis- involves a combination of sizeable commercial banksion services for banks where the data to be processed ing organizations that are among the leading banking is financial, banking, or economic in nature; GIRACO organizations in the state. However, in terms of the Life Insurance Company, Phoenix, Arizona, which concentration of deposits in commercial banks, Pennengages in the activity of reinsuring credit life and sylvania is one of the least concentrated states in the credit accident and health insurance directly related to United States, and would remain so upon consummaextensions of credit by Girard Bank, and Girard Zu- tion of the proposal. In addition, a large number of rich A.G., Zurich, Switzerland, which provides port- banking organizations of substantial size would continfolio investment advice to individuals outside the ue to operate in the state following consummation of United States. These activities have been determined this proposal.3 On the basis of these considerations, by the Board to be closely related to banking the Board concludes that the proposed merger would (12 C.F.R. §§ 225.4(a)(6), (8), (10)) or permissible have no substantial adverse effects on the concentraunder section 4(c)(13) of the Act (12 U.S.C. tion of banking resources in Pennsylvania. § 1843(c)(13)). Mellon and Girard do not operate subsidiary banks Also as a result of the merger, Mellon would acquire in the same markets. Therefore, consummation of the Girard International Bank, Miami, Florida, and New proposal would not eliminate existing competition in York, New York, a corporation organized pursuant to any relevant geographic market. the Edge Act (12 U.S.C. § 611 et seq.). The Board has considered the effects of this propos- Notice of the applications, affording opportunity for al on probable future competition and also examined interested persons to submit comments has been given the proposal in light of its proposed guidelines for in accordance with sections 3 and 4 of the Act assessing the competitive effects of market extension (47 Federal Register 57345 (1982)). The time for filing mergers and acquisitions.4 In evaluating the effects of comments has expired, and the Board has considered a proposed merger or consolidation upon probable the applications and all comments received in light of future competition, the Board considers market conthe factors set forth in section 3(c) of the Act centration, the number of probable future entrants into (12 U.S.C. § 1842(c)), the considerations specified in the market, the size of the bank to be acquired and the section 4(c)(8) of the Act and the purposes of the Edge attractiveness of the market for entry on a de novo or Act.1 foothold basis absent approval of the acquisition. Mellon, the largest commercial banking organiza- After consideration of these factors in the context of tion in Pennsylvania, controls one bank with aggregate the specific facts of this case, the Board concludes that domestic deposits of $8.8 billion, representing 12.9 consummation of this proposal would not have any percent of the total deposits in commercial banks in significant adverse effects on probable future competithe state. Girard, the seventh largest commercial tion in any relevant market. banking organization in Pennsylvania, controls one Girard's banking subsidiary in Pennsylvania opersubsidiary bank in Pennsylvania with aggregate depos- ates in the Philadelphia5 and the Allentown-Bethleits of $2.1 billion, representing 2.9 percent of the total hem-Easton6 banking markets, two markets in which deposits in commercial banks in the state2 and one Mellon is not represented. Because of its size and subsidiary bank in Delaware with aggregate deposits substantial managerial and financial resources, Mellon of $303 million. Upon consummation of this transac- appears to be a probable future entrant into these tion, Mellon's share of the total deposits in commer- markets. Girard is the fourth largest banking organizacial banks in Pennsylvania would be 15.8 percent. tion in the Philadelphia banking market and controls The Board has carefully considered the effects of the proposal on statewide banking structure and upon competition in the relevant markets. The proposal 3. Eleven commercial banking organizations with total assets over $1 billion and 15 commercial banking organizations with total assets over $500 million would remain in Pennsylvania after consummation 1. The Board received comments from the Pennsylvania Associa- of this proposal. tion of Community Organizations for Reform Now (ACORN), The 4. "Policy Statement of the Board of Governors of the Federal Community Resource Center of Philadelphia, The Philadelphia Coun- Reserve System for Assessing Competitive Factors Under the Bank cil of Neighborhood Organizations, and Kensington Action Now Merger Act and the Bank Holding Company Act," 47 Federal (KAN), on Girard's efforts to meet the needs of the community Register 9017 (March 3, 1982). While the proposed policy statement pursuant to the Community Reinvestment Act and the effect that the has not been approved by the Board, the Board is using the policy application would have on these efforts. No formal protest was filed. guidelines as part of its analysis of the effect of a proposal on probable Mellon and Girard met with these community groups to solicit future competition. information regarding problems facing the community and to ensure 5. The Philadelphia banking market is defined as Bucks, Chester, that the banking needs of the community would continue to be met Delaware, Montgomery, and Philadelphia counties in Pennsylvania after the merger, as required by the Community Reinvestment Act. and Burlington, Camden, and Gloucester counties in New Jersey. 2. Unless otherwise indicated, all banking data are as of June 30, 6. The Allentown-Bethlehem-Easton banking market is defined as 1982. the Allentown-Bethlehem-Easton SMSA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 Federal Reserve Bulletin • April 1983 slightly over 9 percent of the total deposits in commer- kets. The largest of the markets in which Mellon cial banks in the market.7 The Philadelphia market is operates is the Pittsburgh market,12 which is the unconcentrated, with a three-firm concentration ratio second largest market in the state. The Pittsburgh of 36.1 percent and there is no evidence in the record market is highly concentrated with a three-firm conthat indicates that the Philadelphia market is not centration ratio of 86.6 percent. Mellon is the largest competitive. Girard is the 41st largest of 44 banks in banking organization in the market with 51.9 percent the Allentown-Bethlehem-Easton market and controls of the market's deposits.13 However, in the Board's only 0.3 percent of the total deposits in commercial view, a large number of probable future entrants into banks in the market. The Allentown-Bethlehem-Eas- the Pittsburgh market would remain after consummaton market is also unconcentrated, with a three-firm tion of this proposal. In this regard, there would be concentration ratio of 46.6 percent, and there is no seven banking organizations in Pennsylvania with asevidence that indicates that the Allentown-Bethlehem- sets of over $1 billion that do not operate in the Easton banking market is not competitive. The Su- Pittsburgh market and, on this basis, the Board's preme Court has indicated that "the potential competi- probable future competition guidelines are not trigtion doctrine has meaning only as applied to gered. In addition, there are 15 other banking organiconcentrated markets" and has no applicability if the zations in Pennsylvania with assets over $500 million, target market is competitive.8 On the basis of the low that do not operate in the Pittsburgh market, many of concentration ratio in the relevant markets, Girard's which appear to have the financial and managerial small market share in the Allentown-Bethlehem-Eas- resources to enter the Pittsburgh market.14 Accordington market, and the absence of any evidence that the ly, the Board concludes that the elimination of Girard markets are not competitive, the Board concludes that as a probable future entrant will not have a substantial the proposal would not have substantial adverse ef- anticompetitive effect in the Pittsburgh market. fects on probable future competition in either the With regard to the other four markets in which Philadelphia or Allentown-Bethlehem-Easton market. Mellon operates, the Board finds that there are a large Girard Bank Delaware operates in the Wilmington, number of probable future entrants into each of the Dover, and Sussex banking markets.9 Girard operates markets and, moreover, that two of these markets are a full-service bank in Delaware pursuant to state not highly concentrated as measured by the Board's legislation that permits out-of-state bank holding com- guidelines. On the basis of the above and other facts of panies to acquire Delaware banks to which the state record, the Board concludes that consummation of the has provided financial assistance and in which the proposed consolidation would not have such adverse state has obtained 25 percent of the voting shares.10 effects on probable future competition in these four This legislation was enacted in order to allow an markets or in any market in the state to warrant denial orderly transfer of a specific Delaware bank. There are of the proposal. no other banks in Delaware that meet the state law The financial and managerial resources and future criteria to be acquired by an out-of-state bank holding prospects of Mellon, Girard and their respective subcompany, and it is unlikely that a bank meeting these sidiaries are considered satisfactory and consistent criteria will exist in the future. In view of the unlikeli- with approval. While there is no evidence in the record hood that Mellon could operate a full-service bank in indicating that the banking needs of the communities Delaware, the Board concludes that the proposal to be served are not being met, consummation of the would not have substantial effects on probable future merger will result in expanded services for Girard competition in the Wilmington, Dover and Sussex customers, such as a wider range of international markets. banking services and an improved cash management Mellon operates in five markets11 in which Girard system. does not operate. It appears that Girard has the Mellon has a satisfactory record for meeting the financial and managerial resources to enter these mar- needs of its community under the Community Reinvestment Act. Girard's record in this area has improved in recent years, and the public comments on 7. Market data are as of June 30, 1982. 8. United States, v. Marine Bancorporation, 418 U.S. 602, 630 (1974); accord, Mercantile Texas Corp., v. Board of Governors, 638 F.2d 1255 (5th Cir. 1980). 9. The Wilmington banking market consists of Cecil County, Mary- 12. The Pittsburgh banking market is defined as all of Allegheny land; Salem County, New Jersey; and New Castle County, Delaware. County and the adjoining portions of Armstrong, Beaver, Butler, The Dover market is comprised of Kent County, Delaware and the Washington, and Westmoreland counties, all in Pennsylvania. Sussex market is comprised of Sussex County Delaware. 13. Banking data are as of June 30, 1981. 10. See The Girard Company, 67 FEDERAL RESERVE BULLETIN 916 14. Under recent changes in Pennsylvania law, any Pennsylvania (1981). bank may establish a branch in Allegheny County, Pennsylvania, 11. These banking markets are the Pittsburgh, Butler, Kittanning, which is the county where Pittsburgh is located. 1982 Pa. Legis. Serv., Washington, and Greensburg-Latrobe markets. Act. No. 1982-44 (Purdon). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 305 this application reflect Girard Bank's continuing effort unless such period is extended for good cause by the to serve its community. Mellon is active in monitoring Board or by the Federal Reserve Bank of Cleveland, the credit needs of its communities and would help pursuant to delegated authority. The determination as assure that Girard continues to meet the needs of the to Mellon's acquisition of the nonbank subsidiaries is communities it serves. Thus, considerations relating to subject to the conditions set forth in section 225.4(c) of the convenience and needs of the community to be Regulation Y (12 C.F.R. § 225.4(c)) and to the Board's served are consistent with approval. authority to require such modification or termination Mellon has also applied, pursuant to section 4(c)(8) of the activities of a holding company or any of its of the Act, to acquire the nonbanking subsidiaries of subsidiaries as the Board finds necessary to assure Girard. While there is some service area overlap compliance with the provisions and purposes of the between Girard Leasing Corporation, a subsidiary that Act and the Board's regulations and orders issued engages in the leasing of personal property and equip- thereunder, or to prevent evasion thereof. ment, and Mellon's leasing activities in Philadelphia, By order of the Board of Governors, effective the two companies serve different segments of the March 7, 1983. market. In light of the market segmentation and the large number of other suppliers of leasing services in Voting for this action: Chairman Volcker, Governors Mar- Philadelphia, the elimination of Girard as a competitor tin, Partee, and Rice. Voting against this action: Governor Teeters. Absent and not voting: Governors Wallich and would not result in any significant adverse effects. Gramley. Girard's data processing subsidiary, Girard Services, Inc., and Datacenter, a subsidiary of Mellon's banking (Signed) JAMES MCAFEE, subsidiary, both engage in data processing activities in [SEAL] Associate Secretary of the Board the Philadelphia, Allentown-Bethlehem-Easton, and Trenton areas. However, because the data processing field contains numerous competitors and has low barriers to entry, elimination of Girard as a competitor Dissenting Statement of Governor Teeters will not have any significant adverse effects. There is no evidence in the record to indicate that approval of I would deny this application on the grounds that the this proposal would result in undue concentration of proposed merger of these two holding companies resources, decreased or unfair competition, conflicts would have a significant adverse effect on probable of interest, unsound banking practices or other ad- future competition in the Pittsburgh market. In my verse effects on the public interest. Accordingly, the dissent in the decision of PNC Financial Corp, 69 Board has determined that the balance of the public FEDERAL RESERVE BULLETIN 51, 54 (1983), I stated interest factors it must consider under section 4 of the that the Board's guidelines on probable future compe- Act is consistent with approval of the application. tition will be difficult to enforce and will permit The financial and managerial resources of Mellon combinations of bank holding companies that result in are regarded as consistent with the retention of Gi- substantially anticompetitive effects. This decision is rard's Edge Corporation by Mellon. Mellon's acquisi- further evidence that the guidelines are not drawn to tion of the Edge Corporation would enable them to reflect accurately the adverse effects that can result continue the international services that are currently from such combinations. being provided to customers, consistent with the pur- I believe that Girard has the managerial and finanposes of the Edge Act to afford at all times a means of cial capability to enter Pittsburgh and its surrounding financing international trade, to stimulate competition markets on a de novo or foothold basis. Girard's for international banking and financing services, and acquisition of the Farmers State Bank in Delaware is to facilitate and stimulate United States exports. Ac- evidence that Girard has the disposition to enter new cordingly, the Board finds that the retention of Girard markets. International Bank, Miami, Florida, and New York, In addition, the Pittsburgh market is highly concen- New York, would be in the public interest. trated and is dominated by Mellon, which controls Based on the foregoing and other facts of record, the over 50 percent of the market's deposits. Because of Board has determined that the applications under these structural characteristics, only banking organisections 3 and 4 of the Act should be and are hereby zations with substantial financial and managerial reapproved. The merger shall not be made before the sources should be viewed as probable future entrants thirtieth calendar day following the effective date of into the Pittsburgh market. In my opinion, there are this Order, and neither the merger nor the acquisition only a limited number of banking organizations in of the nonbanking subsidiaries shall be made later than Pennsylvania that have resources and incentive to three months after the effective date of this Order, enter this particular market on a de novo or foothold Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 Federal Reserve Bulletin • April 1983 basis with the prospect of a substantial deconcentrat- have been determined by the Board to be closely ing effect. Girard is plainly one of the more likely of related to banking under sections 225.4(a)(1), (3), and these few potential entrants. While it is possible that a (8) of Regulation Y (12 C.F.R. § 225.4(a)(1), (3), and smaller organization may enter the market, such entry (8)). is not as likely to occur or to produce a substantial Notice of these applications affording opportunity procompetitive effect in the market. for interested persons to submit comments and views, In my opinion, consummation of this application is has been given in accordance with sections 3 and 4 of likely to result in substantial anticompetitive effects in the Act. The time for filing comments and views has the Pittsburgh market through the elimination of one of expired, and the Board has considered the applications the few banking organizations in Pennsylvania with and all comments received in light of the factors set the resources to enter that highly concentrated market forth in section 3(c) of the Act (12 U.S.C. § 1842(c)) on a de novo or foothold basis. and the considerations specified in section 4(c)(8) of Accordingly, I dissent from the Board's decision the Act (12 U.S.C. § 1843(c)(8)). regarding this application. Applicant, with nine banking subsidiaries, has consolidated assets of $3.5 billion and deposits of $2.9 March 7, 1983 billion.1 It is the eleventh largest banking organization in New York. Upon acquisition of Northeast with consolidated assets of $551 million and deposits of Norstar Bancorp Inc., $465 million, Applicant would control the third largest Albany, New York banking organization in Maine. Section 3(d) of the Bank Holding Company Act Order Approving the Acquisition of a Bank Holding (12 U.S.C. § 1842(d)) prohibits the Board from ap- Company and Acquisition of Companies Engaged in proving any application by a bank holding company to Financing and Data Processing Activities acquire any bank located outside of the state in which operations of the bank holding company's subsidiaries Norstar Bancorp Inc., Albany, New York, a bank are principally conducted, unless such acquisition is holding company within the meaning of the Bank "specifically authorized by the statute laws of the Holding Company Act ("Act"), has applied for the state in which such bank is located, by language to that Board's approval under section 3(a)(3) of the Act effect and not merely by implication." The laws of the (12 U.S.C. § 1842) to acquire 100 percent of the voting State of Maine expressly authorize the acquisition of a shares of Northeast Bankshare Association, Portland, banking institution in Maine by a bank holding compa- Maine ("Northeast"). As a result of the acquisition, ny that controls a bank located in another state, if that Applicant will acquire Northeast's subsidiary banks: other state authorizes the acquisition of a financial Northeast Bank, Portland, Maine; Northeast Bank & institution in that state by a Maine bank holding Trust Co., Bangor, Maine; Northeast Bank N.A. of company under terms no more restrictive than those Farmington, Farmington, Maine; Northeast Bank of imposed under Maine law.2 Similarly, New York law Guilford, Guilford, Maine; Northeast Bank of Lincoln, expressly authorizes the acquisition of a banking insti- Lincoln, Maine; and Northeast Bank of Millinocket, tution in New York by a bank holding company that Millinocket, Maine. controls a bank located in another state, if that other Applicant has also applied for the Board's approval state authorizes the acquisition of a financial instituunder section 4(c)(8) of the Act (12 U.S.C. tion in that state by a New York bank holding compa- § 1843(c)(8)) and section 225.4(b)(2) of the Board's ny.3 In the Board's judgment, the conditions for Regulation Y (12 C.F.R. § 225.4(b)(2)) to acquire approval of such acquisitions under the New York law Northeast's nonbanking subsidiaries, Northeast Con- are not more restrictive than those provided for under sumer Services Corporation ("NCSC") and Northeast the Maine statute. Based on the foregoing, the Board Data Processing Corporation ("NDPC"), both of Port- has determined, as required by section 3(d) of the Act, land, Maine. NCSC provides credit services for all of that the proposed acquisition conforms with Maine Northeast's subsidiary banks and acts as a card issuing law and is expressly authorized by the statute laws of and servicing agent for two other financial institutions Maine. in Maine. NDPC engages in automatic payroll accounting, check reconciliation, and electronic funds transfer services and, incidental to these activities, the sale of excess computer processing to Northeast's subsidiary banks, other nonbanking subsidiaries, and 1. Deposit data as of September 30, 1982. 2. Me. Rev. Stat. Ann., tit. 9-B § 1013 (Supp. 1980). two correspondent banks. These nonbanking activities 3. N.Y. Banking Law § 142-b (McKinney Supp. 1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 307 Northeast's banking subsidiaries operate 50 offices acquisition of Northeast's banking subsidiaries would in 13 relevant banking markets in Maine.4 Inasmuch as not have any significant adverse effects on existing or the proposed acquisition represents Applicant's initial potential competition and would not increase the conentry into Maine, consummation of the proposal centration of banking resources in any relevant area. would not eliminate existing competition in any rele- Thus, competitive considerations are consistent with vant market. approval of the application. The Board has considered the effects of this propos- The financial and managerial resources of Applial on probable future competition and has also exam- cant, Northeast, and their subsidiaries are considered ined the proposal in light of its proposed guidelines for generally satisfactory and their future prospects apassessing the competitive effects of market extension pear favorable. Thus, considerations relating to bankmergers and acquisitions.5 In evaluating the effects of ing factors are consistent with approval of the applicaa proposal on probable future competition, the Board tion. considers market concentration, the number of proba- Applicant's acquisition of Northeast will result in ble future entrants into the market, the size of the bank the expansion of services currently offered by Northto be acquired, and the attractiveness of the market for east's banking subsidiaries to their customers. Such entry on a de novo or foothold basis absent approval of services will include trust services, accounts receivthe acquisition. After consideration of these factors in able processing, and leasing services. Northeast will the context of the specific facts of this case, the Board also be able to enhance its operating efficiency through concludes that consummation of this proposal would access to Applicant's centralized data processing sysnot have any significant adverse effects on probable tem. Thus, the Board concludes that considerations future competition in any relevant market. relating to the convenience and needs of the communi- All but two of the 13 markets in which Northeast ties to be served are consistent with approval of this operates are highly concentrated. Of these markets, application. Accordingly, the Board's judgment is that none is considered attractive for de novo entry under under section 3 of the Act consummation of the the Board's guidelines. Moreover, in view of the fact proposed transaction would be in the public interest that Maine law allows the acquisition of banks in and that the application should be approved. Maine by out-of-state bank holding companies, there With respect to the application to acquire Northare a number of probable future entrants into all of the east's financing and data processing subsidiaries, there relevant banking markets involved in this proposed is no evidence in the record to indicate that approval acquisition.6 Thus, the Board finds that intensive would result in undue concentration of resources, examination is not required under the Board's pro- decreased or unfair competition, conflicts of interests, posed policy statement in any of the 13 markets in unsound banking practices or other adverse effects on which Northeast operates. the public interest. Accordingly, the Board has deter- Based on the foregoing and other facts of record, the mined that the balance of public interest factors it must Board concludes that consummation of this proposed consider under section 4(c)(8) of the Act are consistent with approval of the application, and that the application to acquire Northeast's nonbanking subsidiaries should be approved. 4. Eight of the relevant banking markets in which Northeast operates are defined as follows: (1) Portland includes the coastal area Based on the foregoing and other facts of record, the of northeastern York and western Cumberland Counties; (2) Bangor applications are approved for the reasons set forth includes the city of Bangor, Southern Penobscot County and the town of Winterport in Waldo County; (3) Augusta includes the portion of above. The acquisition of Northeast's banking subsid- Kennebec County surrounding the city of Augusta; (4) Lewiston- iaries pursuant to section 3 of the Act shall not be Auburn includes all but the northern most portion of Androscoggin made before the thirtieth calendar day following the County; (5) Sanford includes the central portion of York County; (6) Livermore Falls includes the northwest corner of Kennebec County effective date of this Order, and neither the acquisition and the southcentral portion of Franklin County; (7) Guilford includes of Northeast's banking subsidiaries nor the acquisition the central portion of Somerset County surrounding the town of Guildford; and (8) Portsmouth-Dover-Rochester includes the southern of its nonbanking subsidiaries shall be made later than most tip of Maine and Strafford County in New Hampshire. In three months after the effective date of this Order, addition, Northeast operates offices in the following "economic unless such period is extended for good cause by the areas" as defined by the Maine State Planning Office: Lincoln, Belfast, Millinocket; Calais and Machias. Board or by the Federal Reserve Bank of New York, 5. 47 Federal Register 9017 (March 3, 1982). pursuant to delegated authority. The approval of Ap- 6. There are 20 New York banking organizations with more than $1 plicant's proposal to acquire Northeast's nonbanking billion in deposits that might be considered as probable future entrants into Maine. In addition, a recently enacted Massachusetts law that subsidiaries and to engage in finance and data processallows acquisitions in Massachusetts by out-of-state banking organiza- ing activities are subject to the conditions set forth in tions may satisfy the reciprocity requirements of Maine law. There are section 225.4(c) of Regulation Y and to the Board's five Massachusetts banking organizations that might thus be regarded as probable future entrants into the Maine banking markets. authority to require such modification or termination Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 Federal Reserve Bulletin • April 1983 of the activities of a holding company or any of its banking activities; Signal Financial Corporation, Pittssubsidiaries as the Board finds necessary to assure burgh, Pennsylvania, which engages in consumer ficompliance with the provisions and purposes of the nance and credit health, accident and life insurance Act and Board's regulations and orders issued there- activities; Congress Financial Corporation, New under, or to prevent evasion thereof. York, New York, which engages in commercial lend- By order of the Board of Governors, effective ing and factoring activities; Charter Atlantic Corpora- March 21, 1983. tion New York, New York, which engages in investment management and advisory services; Hartzler Voting for this action: Chairman Volcker and Governors Mortgage Company, Worthington, Ohio, which en- Martin, Wallich, Partee, Teeters, Rice, and Gramley. Gover- gages in mortgage banking activities; National Central nor Gramley abstains from voting on the acquisition of Commercial Corporation, Lancaster, Pennsylvania, Northeast Consumer Services Corporation. which issues commercial paper to provide funding for NCFC; Princeton Life Insurance Company, Lancas- (Signed) JAMES MCAFEE, ter, Pennsylvania, which engages in reinsuring group [SEAL] Associate Secretary of the Board credit life, accident, and health insurance, and Central Capital Corporation, Lancaster, Pennsylvania, a federally licensed Small Business Investment Company. Philadelphia National Corporation, The activities have been determined by the Board to Philadelphia, Pennsylvania be closely related to banking (12 C.F.R. §§ 225.4(a)(1), (3), (5), (9), (10)) or permissible under section National Central Financial Corporation, 4(c)(1)(C) of the Act (12 U.S.C. § 1843(c)(1)(C)). Lancaster, Pennsylvania Notice of the applications, affording opportunity for interested persons to submit comments has been given Combination of Bank Holding Companies in accordance with sections 3 and 4 of the Act (48 Federal Register 2834 (1983)). The time for filing Philadelphia National Corporation, Philadelphia, Penn- comments has expired, and the Board has considered sylvania ("PNC"), and National Central Financial the applications and all comments received in light of Corporation, Lancaster, Pennsylvania ("NCFC"), the factors set forth in section 3(c) of the Act bank holding companies within the meaning of the (12 U.S.C. § 1842(c)) and the considerations specified Bank Holding Company Act of 1956, as amended in section 4 of the Act.1 (12 U.S.C. § 1841 et seq.), have applied for the PNC, the third largest commercial banking organi- Board's approval under section 3 of the Bank Holding zation in Pennsylvania, controls one subsidiary bank Company Act (12 U.S.C. § 1842), to combine their in Pennsylvania, The Philadelphia National Bank, with operations. aggregate deposits of $3.4 billion, representing 5.0 As proposed, NCFC will be recapitalized and re- percent of the total domestic deposits in commercial named and its board of directors will be reconstituted banks in the state. PNC also controls The Philadelphia to include the 18 current PNC directors, five current Bank (Delaware), Wilmington, Delaware, which con- NCFC directors and one nominee of the current PNC ducts wholesale banking operations for PNC. NCFC, board of directors. The recapitalized NCFC will, the ninth largest commercial banking organization in thereupon, acquire PNC through a merger of PNC into Pennsylvania, controls one bank, Hamilton Bank, a newly formed subsidiary of the recapitalized NCFC. with aggregate domestic deposits of $1.6 billion, repre- The recapitalized NCFC will continue to hold all of the senting 2.4 percent of the total deposits in commercial outstanding voting common shares of NCFC's sole banks in the state.2 Upon consummation of this transbank subsidiary, Hamilton Bank, Lancaster, Pennsyl- action, PNC's shares of the total deposits in commervania. As a result, the restructured NCFC will control cial banks in Pennsylvania would be 7.4 percent and three banks: Hamilton Bank, Lancaster, Pennsylvania; The Philadelphia National Bank, Ardmore, Pennsylvania ("PNB"), and The Philadelphia Bank (Dela- 1. The Board received comments from the Tenant Action Group, ware), Wilmington, Delaware. Philadelphia, Pennsylvania, on PNC's efforts to meet the needs of the On behalf of the restructured NCFC, PNC and community pursuant to the Community Reinvestment Act and the effect that the application would have on these efforts. No formal NCFC have also applied for the Board's approval protest was filed. PNC met with the Tenant Action Group to solicit under section 4 of the Act (12 U.S.C. § 1843) to information regarding problems facing the community and to ensure acquire the operations of the following nonbanking that the banking needs of the community would continue to be met after consummation of the proposal. subsidiaries: The Colonial Group of Companies, Phila- 2. Unless otherwise indicated, all banking data are as of June 30, delphia, Pennsylvania, which engages in mortgage 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 309 the resulting organization would retain PNC's rank as assessing the competitive effects of market extension the third largest commercial banking organization in mergers and acquisitions.6 In evaluating the effects of Pennsylvania. a proposed merger or consolidation upon probable The Board has carefully considered the effects of the future competition, the Board considers market conproposal on statewide banking structure and upon centration, the number of probable future entrants into competition in the relevant markets. The proposal the market, the size of the bank to be acquired, and the involves a combination of sizeable commercial bank- attractiveness of the market for entry on a de novo or ing organizations that are among the leading banking foothold basis absent approval of the acquisition. organizations in the state. However, in terms of the After consideration of these factors in the context of concentration of deposits in commercial banks, Penn- the specific facts of this case, the Board concludes that sylvania is one of the least concentrated states in the consummation of this proposal would not have any United States, and would remain so upon consumma- significant adverse effects on probable future competition of the proposal. In addition, a large number of tion in any relevant market. banking organizations of substantial size would contin- NCFC operates in five banking markets in which ue to operate in the state following consummation of PNC does not operate. These markets are the Lancasthis proposal.3 On the basis of these considerations, ter, Reading, Harrisburg, York, and Lebanon marthe Board concludes that the proposed merger would kets. PNC has substantial financial and managerial have no substantial adverse effects on the concentra- resources and appears to be a probable future entrant tion of banking resources in Pennsylvania. into these markets. With the exception of the Reading PNC's subsidiary bank, PNB, competes only in the market, all of the markets are relatively unconcentrat- Philadelphia banking market,4 where it is the largest ed, each with a three-firm concentration level of below commercial banking organization in the market, con- 60 percent. In addition, there are numerous other trolling 14.5 percent of the total deposits of commer- probable future entrants into each of these markets. cial banks in the market.5 NCFC's subsidiary, Hamil- Thus, the Board concludes that consummation of the ton Bank, also competes in the Philadelphia banking proposed transaction would not have a substantial market and is the 37th largest bank in the market, adverse effect on probable future competition in these controlling 0.3 percent of the market's deposits. Al- markets. though the proposed acquisition would eliminate some The Reading market is concentrated, with the three existing competition between PNB and Hamilton largest banking organizations controlling 83.3 percent Bank, the Board notes that the Philadelphia banking of the total deposits in commercial banks in the market is unconcentrated, with a four-firm concentra- market. NCFC's subsidiary bank ranks third in the tion ratio of 45.3 percent and there is little competitive market and controls 19.7 percent of the market's overlap between the areas served by PNB's and deposits. However, there would remain after consum- Hamilton Bank's offices. Although PNB operates 67 mation of the proposal a large number of probable offices throughout the market, it has only one office in future entrants into the Reading market. Nine banking Chester County, where Hamilton Bank operates all its organizations in Pennsylvania with assets over $1 offices in the market. In addition, 59 commercial billion do not compete in the Reading market and thus banking organizations would continue to operate in the are considered as probable future entrants into the market after consummation of the proposal. Accord- market. In addition, there are 13 other banking organiingly, the Board concluded, that consummation of this zations in Pennsylvania with assets over $500 million, proposal would not have a significant adverse effect on that do not operate in the Reading market, many of existing competition in the Philadelphia market. which appear to have the financial and managerial The Board has considered the effects of this propos- resources to enter the Reading market. Accordingly, al on probable future competition and also examined the Board concludes that the elimination of PNC as a the proposal in light of its proposed guidelines for probable future entrant into the Reading market would 3. Twelve commercial banking organizations with total assets over $1 billion and 15 other commercial banking organizations with total 6. "Policy Statement of the Board of Governors of the Federal assets over $500 million would remain in Pennsylvania after consum- Reserve System for Assessing Competitive Factors Under the Bank mation of this proposal. Merger Act and the Bank Holding Company Act," 47 Federal 4. The Philadelphia banking market is defined as Bucks, Chester, Register 9017 (March 3, 1982). Although the proposed policy state- Delaware, Montgomery, and Philadelphia counties in Pennsylvania ment has not been approved by the Board, the Board is using the and Burlington, Camden, and Gloucester counties in New Jersey. policy guidelines as part of its analysis of the effect of a proposal on 5. Banking data are as of June 30, 1981. probable future competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 Federal Reserve Bulletin • April 1983 not have a substantial adverse effect on probable mortgage loans.7 Since 1973, however, Colonial has future competition in the Reading banking market. closed its Columbus office and has not expanded into The financial and managerial resources and future residential lending in this market. Accordingly, the prospects of the restructured NCFC and PNC and Board concludes that Colonial is unlikely to engage in their respective subsidiaries are considered satisfac- residential mortgage lending in the Ohio markets and tory and consistent with approval. Although some thus, consummation of the proposal is unlikely to have expanded services may result from approval of this an adverse effect on probable future competition in acquisition, there is no evidence in the record indicat- any relevant market. ing that the banking needs of the community to be The restructured NCFC also proposes to acquire the served are not being met. Considerations relating to mortgage servicing portfolios of Colonial and Hartzler, the convenience and needs of the community to be which rank as the 8th largest and 165th largest mortserved are consistent with approval. gage servicers in the country. Colonial and Hartzler PNC and NCFC have also applied pursuant to service mortgage portfolios of $4.2 billion and $390 section 4(c)(8) of the Act to permit its successor million respectively. The geographic market for mortcorporation to acquire their nonbanking subsidiaries. gage servicing is regional to national in character and a PNC's mortgage banking subsidiary, The Colonial larger number of competitors would remain after con- Group of Companies ("Colonial"), engages in origi- summation of the proposal. Accordingly, the Board nating and servicing 1-4 family residential mortgage concludes that no significant competition would be loans, multifamily and commercial mortgage loans and eliminated by the consummation of the proposal. construction loans in 15 states throughout the country. PNC's subsidiary, Signal Financial Corporation, NCFC's mortgage banking subsidiary, Hartzler Mort- and NCFC's subsidiary, Princeton Life Insurance gage Company ("Hartzler"), originates residential Company, underwrite and sell credit life, accident and mortgage loans principally in Ohio and to a smaller health insurance. This insurance is sold and underwritextent, in Pennsylvania. Hartzler also engages in mort- ten only in connection with loans by their respective gage servicing. subsidiaries and thus consummation of this proposal Consummation of this transaction would eliminate would not result in any significant adverse effects on some existing competition between Colonial and competition between these insurance subsidiaries. Hartzler in the Lancaster, York, Harrisburg, Reading, With respect to the successor corporation's acquisiand Philadelphia banking markets in the origination of tion of the mortgage banking, insurance and other 1- to 4-family residential mortgages. However, the nonbanking subsidiaries of PNC and NCFC, there is record indicates that Colonial and Hartzler together no evidence in the record to indicate that approval of originate less than 10 percent of the residential mort- this proposal would result in undue concentration of gages in each of these markets. In addition, numerous resources, decreased or unfair competition, conflicts financial institutions, such as thrift institutions, com- of interests, unsound banking practices or other admercial banks, and other mortgage companies com- verse effects on the public interest. Accordingly, the pete in these markets. Accordingly, the Board believes Board has determined that the balance of the public that consummation of the proposal would not have interest factors it must consider under section 4 of the significant adverse effects on existing competition in Act is consistent with approval of the application. these markets. Based on the foregoing and other facts of record, the With regard to the effect of this transaction on Board has determined that the applications under probable future competition in the product market of sections 3 and 4 of the Act should be and are hereby residential mortgage loan origination, Colonial and approved. The merger shall not be made before the Hartzler each compete in several geographic markets thirtieth calendar day following the effective date of in which the other is not represented. The record this Order, and neither the combination nor the acquiindicates, however, that Hartzler has confined its sition of the nonbanking subsidiaries shall be made expansion efforts to markets in Ohio and does not later than three months after the effective date of this appear a likely entrant into other states. In addition, Order, unless such period is extended for good cause Colonial is not a likely entrant into the other Pennsyl- by the Board or by the Federal Reserve Bank of vania or Ohio markets currently served by Hartzler. In fact, in 1973, the Board denied the application by PNC to acquire Hartzler because it believed that Colonial was likely to enter the residential mortgage loan origination market in Columbus through expansion of an existing office in Columbus that made construction 7. Philadelphia National Corporation, 59 FEDERAL RESERVE BULand commercial mortgage loans, but not residential LETIN 913 (1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 311 Philadelphia, pursuant to delegated authority. The Orders Under Bank Merger Act determination as to the acquisition of the nonbank subsidiaries is subject to the conditions set forth in 1st Source Bank, section 225.4(c) and to the Board's authority to require South Bend, Indiana such modification or termination of the activities of a bank holding company or any of its subsidiaries as the Order Approving Merger of Banks Board finds necessary to assure compliance with the provisions and purposes of the Act and the Board's 1st Source Bank, South Bend, Indiana, a subsidiary of regulations and orders issued thereunder, or to pre- 1st Source Corporation, South Bend, Indiana, a bank vent evasion thereof. holding company within the meaning of the Bank By order of the Board of Governors, effective Holding Company Act, has applied for the Board's March 31, 1983. approval under the Bank Merger Act (12 U.S.C. § 1828(c)) to merge with The First National Bank of Voting for this action: Chairman Volcker and Governors Mishawaka, Mishawaka, Indiana ("Bank"), under the Martin, Wallich, and Gramley. Voting against this action: charter and title of Applicant. Applicant has concur- Governor Teeters. Absent and not voting: Governors Partee rently applied for membership in the Federal Reserve and Rice. Governor Wallich abstains from voting on the System.1 applications regarding the acquisition of Princeton Life Insurance Company and the insurance activities of Signal Finan- Notice of the application, affording interested percial Corporation. sons an opportunity to submit comments and views, has been given in accordance with the Bank Merger (Signed) JAMES MCAFEE, Act and the Board's Rules of Procedure (12 C.F.R. [SEAL] Associate Secretary of the Board § 262.3(b)). As required by the Bank Merger Act, reports of the competitive effects of the merger were requested from the United States Attorney General, Dissenting Statement of Governor Teeters the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. I would deny this application on the grounds that the Applicant is the ninth largest commercial bank in proposed combination of these bank holding compa- Indiana and holds total deposits of $419 million, reprenies would have a significantly adverse effect on senting 1.5 percent of the total deposits in commercial probable future competition in the Reading banking banks in the state.2 Bank is the 41st largest commercial market. I believe Philadelphia National Corporation bank in the state and holds deposits of $126.9 million, has the capacity to enter the Reading market on a representing 0.45 percent of the total deposits in de novo or foothold basis. In light of the concentrated commercial banks in the state. Upon consummation of nature of the Reading market, the elimination of the proposed merger, Applicant would become the Philadelphia National Corporation as a probable future fourth largest commercial bank in Indiana and would entrant is substantially anticompetitive. control 1.9 percent of the total deposits in commercial The Board has proposed guidelines regarding proba- banks in the state. Consummation of the proposal ble future competition as a method of addressing the would have no appreciable effect upon the concentrastandards set out by the United States Court of tion of banking resources in Indiana. Appeals for the Fifth Circuit in Mercantile Texas Applicant operates in two banking markets: the La Corporation v. Board of Governors, 638 F.2d 1255 (5th Porte banking market in which Applicant maintains a Cir. 1981). As I have previously indicated, these branch office, and the Elkhart-Niles-South Bend bankguidelines will be difficult to enforce and today's ing market.3 Bank does not compete in the La Porte action reaffirms my belief that the guidelines permit banking market and therefore, consummation of this combinations of bank holding companies that, in my proposal would not eliminate any existing competition opinion, have substantially anticompetitive consequences. I believe the Board should give more attention to developing and applying standards that more realisti- 1. The application for membership is being processed by the cally reflect the adverse effects of the elimination of Federal Reserve Bank of Chicago under delegated authority. 2. State deposit figures are as of June 30, 1982. All other banking probable future competition. data are as of June 30, 1981. Accordingly, I dissent from the Board's decision 3. The Elkhart-Niles-South Bend banking market is approximated regarding this application. by Elkhart County, Indiana; St. Joseph County, Indiana (excluding Olive and Warren townships); Cass County, Michigan; and Oronoko, Berrien, Bertrand, Niles, and Buchanan townships in Berrien County, March 31, 1983 Michigan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 Federal Reserve Bulletin • April 1983 in that market. In the Elkhart-Niles-South Bend mar- of the proposed merger would not have a significant ket, the proposed merger would eliminate existing adverse effect upon existing or probable future compecompetition between Applicant and Bank. Applicant is tition in any relevant market. Thus, competitive conthe largest banking organization in the market with siderations are consistent with approval of the merger. total deposits of $383.6 million, representing 15.5 The financial and managerial resources of Applipercent of the total deposits in commercial banks in cant, its parent, and Bank are regarded as satisfactory the market. Bank is the ninth largest banking organiza- and their future prospects appear favorable. Thus, tion in the market, with total deposits of $119.9 million considerations relating to banking factors are consistrepresenting 4.8 percent of the the total deposits in ent with approval. Although no new banking services commercial banks in the market. Upon consummation to the customers of Bank would result from the of this proposal, Applicant would control 20.3 percent merger, Applicant will expand Bank's lending activiof the total deposits in commercial banks in the market ties, cash management, trust, and credit card services. and the four-firm concentration ratio in the market Thus, considerations relating to the convenience and would increase from 55.5 percent to 60.3 percent. needs of the community are consistent with approval. Although consummation of the proposed merger Based on the foregoing and other considerations rewould eliminate existing competition in the Elkhart- flected in the record, the Board's judgment is that Niles-South Bend banking market, certain facts of consummation of the transaction would be consistent record mitigate the competitive effects of this propos- with the public interest. al. The Elkhart-Niles-South Bend market is presently On the basis of the record and for the reasons unconcentrated and would become only moderately discussed above, the application is hereby approved. concentrated upon consummation of the proposal. The The transaction shall not be consummated before the Herfindahl Hirschman index in the Elkhart-Niles- thirtieth day following the effective date of this Order, South Bend market is 989 and would increase to 1138 or later than three months after the effective date of after the merger. The Department of Justice has indi- this Order, unless such period is extended for good cated that the merger would not have a significantly cause by the Board or by the Federal Reserve Bank of adverse effect on competition. Moreover, at least 20 Chicago, pursuant to delegated authority. independent banking organizations would remain in By order of the Board of Governors, effective the market upon consummation of this transaction. March 25, 1983. Based on these facts and other facts of record, the Board does not regard the elimination of existing Voting for this action: Chairman Volcker and Governors competition in this case to be so significant as to Partee, Teeters, Rice, and Gramley. Absent and not voting: warrant denial of the application. In addition, in view Governors Martin and Wallich. of its size, Bank does not appear to be a probable future entrant into the La Porte banking market. (Signed) JAMES MCAFEE, Accordingly, the Board concludes that consummation [SEAL] Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 313 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During March 1983, 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) CCB Bancshares, Inc., The Citizens Bank of Hahira, March 9, 1983 Hahira, Georgia Hahira, Georgia First City Bancorporation of Texas, Inc. First City Bank-MOPAC, N.A., March 4, 1983 Houston, Texas Austin, Texas InterFirst Corporation, InterFirst Bank NW San Antonio, N.A. March 8, 1983 Dallas, Texas San Antonio, Texas Sun Banks of Florida, Avon Citrus Bank, March 15, 1983 Orlando, Florida Avon Park, Florida Texas Commerce Bancshares, Inc., Bank of Pasadena, March 14, 1983 Houston, Texas Pasadena, Texas By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Allied Bancshares, Inc., Texas Bank & Trust Dallas March 14, 1983 Houston, Texas Company of Houston, Houston, Texas Bancshares of Hayti, Inc., Bank of Hayti, St. Louis March 3, 1983 Hayti, Missouri Hayti, Missouri Bank North Group, Inc., Franklin-Lamoille Bank, Boston March 25, 1983 St. Albans, Vermont St. Albans, Vermont Bern Bancshares, Inc., The State Bank of Bern, Kansas City March 14, 1983 Bern, Kansas Bern, Kansas Blackwater Bancshares, Inc., Central Missouri State Bank, Kansas City March 25, 1983 Blackwater, Missouri Boonville, Missouri Brazosport Corporation, Brazosport Bank of Texas, Dallas March 2, 1983 Freeport, Texas Freeport, Texas CBA Bancshares, Inc., Citizens Bank of Americus, Atlanta February 25, 1983 Americus, Georgia Americus, Georgia CSB Banco, Inc., Citizens State Banco, Kansas City March 11, 1983 Lincoln, Nebraska Lincoln, Nebraska Cedar Rapids State Company, Cedar Rapids State Bank, Kansas City February 22, 1983 Cedar Rapids, Nebraska Cedar Rapids, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Federal Reserve Bulletin • April 1983 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date Chisholm Trail Financial Derby Financial Corporation, Kansas City February 22, 1983 Corporation, Wichita, Kansas Wichita, Kansas Citi-Bancshares, Inc., Citizens National Bank Atlanta March 15, 1983 Leesburg, Florida of Leesburg, Leesburg, Florida Citizens Holding Company, Citizens Banking Company, Atlanta February 25, 1983 Lexington, Georgia Lexington, Georgia Claremont Bancshares, Inc., Security State Bank of Claremont, Minneapolis February 25, 1983 Claremont, Minnesota Claremont, Minnesota Clark Bancshares, Inc., Bank of Clarks, Kansas City March 22, 1983 Clarks, Nebraska Clarks, Nebraska Clayco Bancshares, Inc., Clayco State Bank, Kansas City March 4, 1983 Claycomo, Missouri Claycomo, Missouri Cornerstone Financial Derry Bank and Trust Company, Boston March 25, 1983 Corporation, Derry, New Hampshire Derry, New Hampshire Craco, Inc., The First National Bank Kansas City March 16, 1983 Vinita, Oklahoma of Vinita, Vinita, Oklahoma Custer Bancorp., Liberty State Bank, Kansas City February 25, 1983 Westcliffe, Colorado Colorado Springs, Colorado Custer County Bank, Westcliffe, Colorado Derby Financial Corporation, First National Bank of Derby, Kansas City February 22, 1983 Wichita, Kansas Derby, Kansas Equitable Bankshares of EquiBank-South, N.A., Kansas City March 22, 1983 Colorado, Inc., Arapahoe County, Colorado Denver, Colorado Farley Bancshares, Inc., Farley State Bank, Kansas City March 24, 1983 Farley, Missouri Farley, Missouri Fergus Falls Bancshares, Inc., Security State Bank of Fergus Falls, Minneapolis March 21, 1983 Fergus Falls, Minnesota Fergus Falls, Minnesota First Alex Bancshares, Inc., The First National Bank of Alex, Kansas City March 1, 1983 Alex, Oklahoma Alex, Oklahoma First Anderson Bancshares, Inc., The First National Bank Dallas March 17, 1983 Anderson, Texas of Anderson, Anderson, Texas First Atlanta Corporation, The First National Bank Atlanta March 17, 1983 Atlanta, Georgia of Cartersville Cartersville, Georgia First Bancorporation of Bank of Geraldine, Atlanta February 25, 1983 Geraldine, Inc., Geraldine, Alabama Geraldine, Alabama First Citizens Bancorp of The Citizens Bank, Atlanta March 23, 1983 Cherokee County, Inc., Ball Ground, Georgia Ball Ground, Georgia First Elbert Corporation, First National Bank in Elberton, Atlanta March 25, 1983 Elberton, Georgia Elberton, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 315 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First Freeport Corporation, Lincoln way State Bank, Chicago March 1, 1983 Freeport, Illinois Sterling, Illinois First State Bancorp., Inc., First State Bank of Caruthersville, St. Louis February 25, 1983 Caruthersville, Missouri Caruthersville, Missouri First Thomson Bancorp., Inc., The First National Bank Atlanta March 10, 1983 Thomson, Georgia of Thomson, Thomson, Georgia First Wyoming Bancorporation, Bank of Laramie, Kansas City March 2, 1983 Cheyenne, Wyoming Laramie, Wyoming Floresville Bancshares, Inc., First City National Bank Dallas March 25, 1983 Floresville, Texas of Floresville, Floresville, Texas Fremont State Bancshares, Inc., CSB Banco, Inc., Kansas City March 11, 1983 Lincoln, Nebraska Lincoln, Nebraska Fremont Bancshares, Inc., Lincoln, Nebraska General Bancshares Corporation, The First National Bank of Benld, St. Louis March 22, 1983 St. Louis, Missouri Benld, Illinois Germantown Banc Corp., Germantown Trust & Savings Bank, St. Louis March 7, 1983 Germantown, Illinois Germantown, Illinois Gilcrease Hills Bancorp, Inc., Gilcrease Hills Bank, Kansas City March 25, 1983 Tulsa, Oklahoma Tulsa, Oklahoma Gwinnett Holding Company, Fulton Bancshares, Inc., Atlanta March 11, 1983 Snellville, Georgia Snellville, Georgia Heritage Bank, Alpharetta, Georgia Hartsville Bancshares, Inc., Bank of Hartsville, Atlanta March 2, 1983 Hartsville, Tennessee Hartsville, Tennessee JC Bankshares, Inc., Johnson County Bankshares, Inc., Kansas City March 17, 1983 Prairie Village, Kansas Prairie Village, Kansas LaFayette County Bancshares, Inc. Lafayette County Bank of Kansas City February 23, 1983 Lexington, Missouri Lexington/W ellington, Lexington, Missouri Lakeside Bancshares, Inc., Lakeside National Bank, Dallas February 25, 1983 Rockwall, Texas Rockwall, Texas Mercantile Bancorporation, Inc., Interstate Bank of St. Peters, St. Louis March 2, 1983 St. Louis, Missouri St. Peters, Missouri Merchants & Planters Bancshares, Merchants & Planters Bank, Atlanta March 2, 1983 Inc., Monte vallo, Alabama Montevallo, Alabama Metro Bancshares, Inc., Metro Bank of Broken Arrow, Kansas City March 9, 1983 Broken Arrow, Oklahoma Broken Arrow, Oklahoma Midwest Financial Group, Inc., Sangamon Bank and Trust, Chicago March 1, 1983 Peoria, Illinois Springfield, Illinois Mountain Bancorp, Inc., Bank of the Mountains, Cleveland March 16, 1983 West Liberty, Kentucky West Liberty, Kentucky National Bancshares Corporation First National Bank of Mission, Dallas March 21, 1983 of Texas, Mission, Texas San Antonio, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin • April 1983 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Nixon Bancshares, Inc., Nixon State Bank, Dallas March 22, 1983 Nixon, Texas Nixon, Texas Northern Trust Corporation, First Security Bank of Oak Brook, Chicago March 7, 1983 Chicago, Illinois Oak Brook, Illinois Panhandle Bancshares, Inc., First State Bank, Dallas March 7, 1983 Panhandle, Texas Tulia, Texas Peoples Exchange Bancorporation Peoples Exchange Bank, Chicago March 22, 1983 of Thorp, Inc., Thorp, Wisconsin Thorp, Wisconsin Pilot Point Bancshares Corporation, The Pilot Point National Bank, Dallas March 4, 1983 Pilot Point, Texas Pilot Point, Texas Ray Bancorporation, Inc., Citizens State Bank of Ray, Minneapolis March 18, 1983 Ray, North Dakota Ray, North Dakota Rice Lake Bancorp., Inc., Citizens State Bank, Minneapolis March 1, 1983 Rice Lake, Wisconsin Birchwood, Wisconsin Richmond Bancshares, Inc., Community Bank-Fort Bend County, Dallas March 25, 1983 Richmond, Texas Richmond, Texas Rushville Bancshares, Inc., Rushville State Bank, Chicago March 11, 1983 Rushville, Illinois Rushville, Illinois Security Bancshares, Incorporated, Security Bank, Dallas March 21, 1983 Monroe, Louisiana Monroe, Louisiana South Dakota Bancshares, Inc., Farmers State Bank, Minneapolis March 3, 1983 Pierre, South Dakota Faith, South Dakota South Taylor County Bancshares, First State Bank in Tuscola, Dallas March 24, 1983 Tuscola, Texas Tuscola, Texas Southern Bankshares, Inc., Beckley National Bank, Richmond March 2, 1983 Beckley, West Virginia Beckley, West Virginia Southwest Bancshares, Inc., Westhollow National Bank, Dallas March 23, 1983 Houston, Texas Houston, Texas Sterling Bancorp., Inc., The Buffalo Bank, Richmond March 11, 1983 Eleanor, West Virginia Eleanor, West Virginia TBT Bancshares, Inc., Traders Bank and Trust Company, Cleveland March 17, 1983 Mt. Sterling, Kentucky Mt. Sterling, Kentucky TransTexas Bancshares, Inc., The First National Bank of Canton, Dallas March 11, 1983 Beaumont, Texas Canton, Texas TwinCo, Inc., First National Bank of Twin Bridges, Minneapolis March 8, 1983 Twin Bridges, Montana Twin Bridges, Montana Unicorp Bancshares-Houston, Inc., Unitedbank-Metro, Dallas March 11, 1983 Houston, Texas Houston, Texas United Banks of Wisconsin, Inc., Independent Bankshares, Inc., Chicago March 1, 1983 Madison, Wisconsin Madison, Wisconsin Walthall Capital Group, Ltd., Walthall Citizens Bank, Atlanta March 11, 1983 Tylertown, Mississippi Tylertown, Mississippi Western Illinois National National Bank of Aledo, Chicago March 25, 1983 Bancshares, Inc., Aledo, Illinois Aledo, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 317 Section 4 Nonbanking Reserve Effective Applicant company Bank date European American Bancorp, Pilgrim, Baxter, Hoyt & Greig, New York March 9, 1983 New York City, New York Philadelphia, Pennsylvania Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant company or activity Bank date American Bancorp, Inc., Central Penn National Corp., Philadelphia March 16, 1983 Reading, Pennsylvania Philadelphia, Pennsylvania Broadway Financial Corporation, Broadway Bank & Trust Company, New York March 2, 1983 Paterson, New Jersey Paterson, New Jersey Broadway Premium Computer Service Center, Inc., New York, New York Edgewater Capital Corporation, Community Bank & Trust Company Chicago March 25, 1983 Chicago, Illinois of Edgewater, Chicago, Illinois South Central Bancshares, Inc., Citizens National Bank of Russell- Russellville, Kentucky ville, Russellville, Kentucky To engage in insurance activities ORDER APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks .. „ , , . Reserve Effective AApplicant Bank(s) ^ date Bank of Virginia, The Bank of Vienna, Richmond March 10, 1983 Richmond, Virginia Vienna, Virginia PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits The Philadelphia Clearing House Association, et al. v. against the Federal Reserve Banks in which the Board Board of Governors, filed July 1982, U.S.D.C. for of Governors is not named a party. the Eastern District of Pennsylvania. Richter v. Board of Governors, et al., filed May 1982, Flagship Banks, Inc. v. Board of Governors, filed U.S.D.C. for the Northern District of Illinois. January 1983, U.S.D.C. for the District of Colum- Wyoming Bancorporation v. Board of Governors, filed bia. May 1982, U.S.C.A. for the Tenth Circuit. Flagship Banks, Inc. v. Board of Governors, filed First Bancorporation v. Board of Governors, filed October 1982, U.S.D.C. for the District of Colum- April 1982, U.S.C.A. for the Tenth Circuit. bia. Charles G. Vick v. Paul A. Volcker, et al., filed March Association of Data Processing Service Organiza- 1982, U.S.D.C. for the District of Columbia. tions, Inc., et al. v. Board of Governors, filed Jolene Gustafson v. Board of Governors, filed March August 1982, U.S.C. A. for the District of Columbia. 1982, U.S.C.A. for the Fifth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Federal Reserve Bulletin • April 1983 Edwin F. Gordon v. Board of Governors, et al., filed Securities Industry Association v. Board of Gover- October 1981, U.S.C.A. for the Eleventh Circuit nors, et al., filed October 1980, U.S.D.C. for the (two consolidated cases). District of Columbia. Allen Wolf son v. Board of Governors, filed September Securities Industry Association v. Board of Gover- 1981, U.S.D.C. for the Middle District of Florida. nors, et al., filed October 1980, U.S.C.A. for the Bank Stationers Association, Inc., et al. v. Board of District of Columbia. Governors, filed July 1981, U.S.D.C. for the North- A. G. Becker, Inc. v. Board of Governors, et al., filed ern District of Georgia. October 1980, U.S.D.C. for the District of Colum- Public Interest Bounty Hunters v. Board of Gover- bia. nors, et al, filed June 1981, U.S.D.C. for the A. G. Becker, Inc. v. Board of Governors, et al., filed Northern District of Georgia. October 1980, U.S.C.A. for the District of Colum- Edwin F. Gordon v. John Heimann, et al., filed May bia. 1981, U.S.C.A. for the Fifth Circuit. A. G. Becker, Inc. v. Board of Governors, et al., filed First Bank & Trust Company v. Board of Governors, August 1980, U.S.D.C. for the District of Columbia. filed February 1981, U.S.D.C. for the Eastern Dis- Berkovitz, et al. v. Government of Iran, et al., filed trict of Kentucky. June 1980, U.S.D.C. for the Northern District of 9 to 5 Organization for Women Office Workers v. California. Board of Governors, filed December 1980, U.S.D.C. for the District of Massachusetts. 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 A20 All reporting banks A21 Banks with assets of $1 billion or more A3 Monetary aggregates and interest rates A22 Banks in New York City A4 Reserves of depository institutions, Reserve A23 Balance sheet memoranda Bank credit A24 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 Reserve requirements of depository institutions All 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 MONETAR Y AND CREDIT AGGREGATES A33 Federal debt subject to statutory limitation A33 Gross public debt of U.S. Treasury—Types and A14 Aggregate reserves of depository institutions ownership and monetary base A34 U.S. government securities dealers— A15 Money stock measures and components Transactions, positions, and financing A16 Bank debits and deposit turnover A35 Federal and federally sponsored credit A17 Loans and securities of all commercial banks agencies—Debt outstanding COMMERCIAL BANKS A18 Major nondeposit funds A19 Assets and liabilities, last Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • April 1983 SECURITIES MARKETS AND A55 Foreign official assets held at Federal Reserve CORPORATE FINANCE Banks A56 Foreign branches of U.S. banks—Balance sheet A36 New security issues—State and local data governments and corporations A58 Selected U.S. liabilities to foreign official A37 Open-end investment companies—Net sales and institutions asset position A37 Corporate profits and their distribution A38 Nonfinancial corporations—Assets and REPORTED BY BANKS IN THE UNITED STATES liabilities A38 Total nonfarm business expenditures on new A58 Liabilities to and claims on foreigners plant and equipment A59 Liabilities to foreigners A39 Domestic finance companies—Assets and A61 Banks' own claims on foreigners liabilities; business credit A62 Banks' own and domestic customers' claims on foreigners A62 Banks' own claims on unaffiliated foreigners REAL ESTATE A63 Claims on foreign countries—Combined domestic offices and foreign branches A40 Mortgage markets A41 Mortgage debt outstanding REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A64 Liabilities to unaffiliated foreigners A42 Total outstanding and net change A65 Claims on unaffiliated foreigners A43 Extensions and liquidations SECURITIES HOLDINGS AND TRANSACTIONS FLOW OF FUNDS A66 Foreign transactions in securities A44 Funds raised in U.S. credit markets A67 Marketable U.S. Treasury bonds and notes— A45 Direct and indirect sources of funds to credit Foreign holdings and transactions markets INTEREST AND EXCHANGE RATES Domestic Nonfinancial Statistics A67 Discount rates of foreign central banks A46 Nonfinancial business activity—Selected A68 Foreign short-term interest rates measures A68 Foreign exchange rates A46 Output, capacity, and capacity utilization A47 Labor force, employment, and unemployment A48 Industrial production—Indexes and gross value A69 Guide to Tabular Presentation, A50 Housing and construction Statistical Releases, and Special A51 Consumer and producer prices Tables A52 Gross national product and income A53 Personal income and saving Special Tables International Statistics A70 Assets and liabilities of commercial banks, December 31, 1982 A54 U.S. international transactions—Summary A76 Assets and liabilities of U.S. branches and A55 U.S. foreign trade agencies of foreign banks, December 31, 1982 A55 U.S. reserve assets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1982 1982 1983 Q1 Q2 Q3 Q4 Oct. Nov. Dec. Jan. Feb. Reserves of depository institutions 1 Total 7.5 6 4.8 14.8 9.4 17.5 12.8 1.9 -14.4 2 Required 7.1 1.1 4.6 13.9 8.9 17.8 10.0 .5 -11.0 3 Nonborrowed -.9 4.2 11.2 16.5 23.8 13.4 12.7 5.0 -16.2 4 Monetary base2 7.9 6.6 6.7 13.(K 14.5 13.3 8.4 12.7 3.7 Concepts of money and liquid assets3 5 Ml 10.5 3.2 6.1 8.8' 8.0 13.3 8.9 99..88 22.2 6 M2 8.7 7.0 10.9 7.5' 9.3 9.3 3.6 29.8 24.1 7 M3 8.6 8.5 12.0 8.2' 9.2 n.a. n.a. 12.0 13.4 8 L 10.2 10.5 11.4 n.a. 10.7 n.a. n.a. n.a. n.a. Time and savings deposits Commercial banks 9 Total 6.5 13.4 18.2 3.2 2.7 -5.0 5.5 27.4 8.5 10 Savings4 4.5 1.7 -1.8 13.1' 20.3 28.8 -21.7 -88.2 -57.1 11 Small-denomination time5 9.1 17.0 18.7 -.4 -4.6 -2.2 -18.2 -83.6 -63.6 12 Large-denomination time6 4.6 17.0 26.8 -6.8 2.9 -22.9 -44.3 -97.1 -61.3 13 Thrift institutions7 1.3 4.1 6.5 6.0 5.5 7.4 4.5 8.3 20.3 14 Total loans and securities at commercial banks8 2.6 -6.7 6.0 5.5 6.8 1.5 10.5 12.8 7.6 Interest rates (levels, percent per annum) 1982 1983 1982 1983 Q2 Q3 Q4 Ql Nov. Dec. Jan. Feb. Mar. Short-term rates 15 Federal funds9 14.52 11.01 9.28 8.65 9.20 8.95 8.68 8.51 8.77 16 Discount window borrowing10 12.00 10.83 9.25 8.50 9.35 8.73 8.50 8.50 8.50 17 Treasury bills (3-month market yield) 12.42 9.32 7.90 8.11 8.07 7.94 7.86 8.11 8.35 18 Commercial paper (3-month) ' .... 13.81 11.15 8.80 8.34 8.69 8.51 8.17 8.34 8.52 Long-term rates Bonds 19 U.S. government 13.74 12.94 10.72 10.87 10.57 10.62 10.78 11.03 10.80 20 State and local government 12.33 11.39 9.90 9.43 10.06 9.96 9.50 9.58 9.20 21 Aaa utility (new issue)15 15.73 14.25 12.10 11.89 11.76 11.84 12.05 12.08 11.70 22 Conventional mortgages 16.63 15.65 13.79 n.a. , 13.80 13.62 13.44 13.18 n.a. 1. Unless otherwise noted, rates of change are calculated from average 5. Small-denomination time deposits—including retail RPs—are those issued amounts outstanding in preceding month or quarter. in amounts of less than $100,000. 2. Includes reserve balances at Federal Reserve Banks in the current week 6. Large-denomination time deposits are those issued in amounts of $100,000 plus vault cash held two weeks earlier used to satisfy reserve requirements at all or more. depository institutions plus currency outside the U.S. Treasury, Federal Reserve 7. Savings and loan associations, mutual savings banks, and credit unions. Banks, the vaults of depository institutions, and surplus vault cash at depository 8. Changes calculated from figures shown in table 1.23. Beginning December institutions. 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 9. Averages of daily effective rates (average of the rates on a given date nonbank issuers; (3) demand deposits at all commercial banks other than those weighted by the volume of transactions at those rates). due to domestic banks, the U.S. government, and foreign banks and official 10. Rate for the Federal Reserve Bank of New York. institutions less cash items in the process of collection and Federal Reserve float; 11. Quoted on a bank-discount basis. and (4) negotiable order of withdrawal (NOW) and automatic transfer service 12. Unweighted average of offering rates quoted by at least five dealers. (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. accounts, 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 Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve Eurodollars held by U.S. residents other than banks at Caribbean branches of compilations. member banks, and balances of money market mutual funds (general purpose and 16. Average rates on new commitments for conventional first mortgages on broker/dealer). new homes in primary markets, unweighted and rounded to nearest 5 basis points, M3: M2 plus large-denomination time deposits at all depository institutions from Dept. of Housing and Urban Development. and 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 other than banks, bankers acceptances, commercial paper, Treasury bills and 1980. 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

A46 Domestic Nonfinancial Statistics • April 1983 t.tl RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending FFFaaaccctttooorrrsss 1983 1983 Jan. Feb. Mar. Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23P Mar. 30P SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 157,519 155,365 156,202 155,725 156,384 155,789 154,836 155,642 157,063 155,499 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 135,318 134,379 135,201 133,833 136,442 134,751 134,321 135,149 136,337 134,460 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 134,862 133,961 135,087 133,833 134,771 134,247 134,321 135,149 136,337 134,460 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 456 418 114 0 1,671 504 0 0 0 0 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss 8,987 8,945 8,929 8,924 9,009 8,977 8,923 8,915 8,915 8,915 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,934 8,924 8,917 8,924 8,924 8,923 8,923 8,915 8,915 8,915 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 53 21 12 0 85 54 0 0 0 0 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 126 17 9 0 68 39 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 500 561 854 868 475 710 626 890 641 896 1111100000 FFFFFllllloooooaaaaattttt 2,652 2,079 2,263 2,436 1,532 2,368 2,287 1,838 2,117 1,978 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 9,936 9,384 8,946 9,665 8,858 8,944 8,680 8,851 9,054 9,250 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,146 11,142 11,138 11,143 11,139 11,139 11,138 11,138 11,138 11,138 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt ..... 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 152,672 151,650 153,186 151,846 151,881 151,963 152,693 153,369 153,367 153,356 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 438 457 482 456 462 465 473 481 485 493 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 3,250 3,200 3,361 3,271 3,221 2.896 3,709 3,690 3,387 2,534 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 259 236 244 246 210 267 260 229 219 231 1111199999 OOOOOttttthhhhheeeeerrrrr 691 551 547 545 506 531 520 565 584 521 2222200000 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd cccccllllleeeeeaaaaarrrrriiiiinnnnnggggg bbbbbaaaaalllllaaaaannnnnccccceeeeesssss 460 511 578 507 521 534 550 579 595 598 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 4,868 4,776 4,858 4,792 4,770 4.897 4,845 4,843 4,809 4,911 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaaccccccccccooooouuuuunnnnntttttsssss22222 24,431 23,530 22,487 23,609 24,354 23,778 21,328 21,427 23,159 22,397 End-of-month figures Wednesday figures 1983 1983 Jan. Feb. Mar. Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 152,537 153,936 158,047 158,051 159,752 160,402 155,576 158,633 157,499 156,688 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 132,368 135,561 136,651 134,138 138,130 136,343 134,883 136,293 136,811 134,660 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 132,368 135,561 136,651 134,138 133,965 132,817 134,883 136,293 136,811 134,660 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 0 0 4,165 3,526 0 0 0 0 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss 8,928 8,923 8,915 8,924 9,063 9,302 8,923 8,915 8,915 8,915 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,928 8,923 8,915 8,924 8,924 8,923 8,923 8,915 8,915 8,915 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 0 0 139 379 0 0 0 0 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 245 275 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 354 1,155 2,808 3,518 467 1,777 367 3,730 825 1,985 3333322222 FFFFFllllloooooaaaaattttt 1,006 -2,664 486 2,690 2,658 3,748 2,542 177 1,590 1,743 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 9,881 10,961 9,187 8,781 9,189 8,957 8,861 9,518 9,358 9,385 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,144 11,139 11,138 11,142 11,139 11,139 11,138 11,138 11,138 11,138 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt ..... 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 150,511 151,872 154,307 152,210 152,513 152,609 153,469 153,760 153,675 154,250 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 448 465 498 458 463 467 481 481 485 495 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 2,627 2,856 3,572 4,057 2,643 3,525 3,407 3,935 3,118 2,116 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 366 352 425 197 210 226 197 237 199 250 4444411111 OOOOOttttthhhhheeeeerrrrr 603 486 535 524 504 521 498 670 478 575 4444422222 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd cccccllllleeeeeaaaaarrrrriiiiinnnnnggggg bbbbbaaaaalllllaaaaannnnnccccceeeeesssss 478 535 601 504 522 535 552 575 595 598 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 4,850 4,988 4,834 4,652 4,706 4,766 4,677 4,828 4,683 4,757 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaaccccccccccooooouuuuunnnnntttttsssss22222 22,201 21,924 22,816 24,994 27,733 27,296 21,836 23,688 23,807 23,188 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 1983 Dec. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.P 1 Reserve balances with Reserve Banks1 26,163 24,273 24,471 23,385 24,252 24,604 24,804 24,431 23,530 22,028 2 Total vault cash (estimated) 19,538 19,448 19,500 19,921 19,578 19,807 20,392 21,454 20,035 19,491 3 Vault cash at institutions with required reserve balances2 13,577 13,105 13,188 13,651 13,658 13,836 14,292 14,602 13,695 13,074 4 Vault cash equal to required reserves at other institutions 2,178 2,486 2,518 2,927 2,677 2,759 2,757 2,829 2,562 2,768 S Surplus vault cash at other institutions3 3,783 3,857 3,794 3,343 3,243 3,212 3,343 4,023 3,778 3,649 6 Reserve balances + total vault cash4 45,701 43,721 43,971 43,306 43,830 44,411 45,196 45,885 43,565 41,519 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,918 39,864 40,177 39,963 40,587 41,199 41,853 41,862 39,787 37,870 8 Required reserves (estimated) 41,606 39,573 39,866 39,579 40,183 40,797 41,353 41,316 39,362 37,601 9 Excess reserve balances at Reserve Banks4 6 312 291 311 384 404 402 500 546 425 269 10 Total borrowings at Reserve Banks 642 669 510 976 455 579 697 500 557 854 11 Seasonal borrowings at Reserve Banks 53 225 119 102 86 47 33 33 39 53 12 Extended credit at Reserve Banks 149 46 94 118 141 188 187 156 277 318 Weekly averages of daily figures for week ending 1983 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23? Mar. 30p 13 Reserve balances with Reserve Banks1 23,830 23,710 22,400 23,609 24,354 23,778 21,328 21,427 23,159 22,397 14 Total vault cash (estimated) 21,836 21,228 20,952 20,396 18,684 19,663 19,859 20,307 18,274 19,468 15 Vault cash at institutions with required reserve balances2 14,892 14,513 14,074 13,679 13,156 13,616 12,974 13,096 12,690 13,193 16 Vault cash equal to required reserves at other institutions 2,801 2,677 2,853 2,731 2,161 2,433 3,039 3,237 2,369 2,701 17 Surplus vault cash at other institutions3 4,143 4,038 4,025 3,986 3,367 3,614 3,846 3,974 3,215 3,574 18 Reserve balances + total vault cash4 45,666 44,938 43,352 44,005 43,038 43,441 41,187 4411,,773344 4411,,443333 4411,,886655 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,523 40,900 39,327 40,019 39,671 39,827 37,341 37,760 38,218 38,291 20 Required reserves (estimated) 41,022 40,484 39,018 39,410 39,377 39,308 36,873 37,369 37,898 37,837 21 Excess reserve balances at Reserve Banks4-6 501 416 309 609 294 519 468 391 320 454 22 Total borrowings at Reserve Banks 325 383 370 868 475 710 626 890 641 896 23 Seasonal borrowings at Reserve Banks 34 37 35 39 45 43 44 44 59 62 24 Extended credit at Reserve Banks 197 211 234 274 335 295 297 326 346 305 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 3. Total vault cash at institutions without required reserve balances less vault clearing balances plus vault cash at institutions with required reserve balances cash equal to their required reserves. plus vault cash equal to required reserves at other institutions. 4. Adjusted to include waivers of penalties for reserve deficiencies in accord- 6. Reserve balances with Federal Reserve Banks, which exclude required ance with Board policy, effective Nov. 19, 1975, of permitting transitional relief on clearing balances plus vault cash used to satisfy reserve requirements less a graduated basis over a 24-month period when a nonmember bank merged into an required reserves. (This measure of excess reserves is comparable to the old excess reserve concept published historically.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 DomesticN onfinancial Statistics • April 1983 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1983, week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 One day and continuing contract 1 Commercial banks in United States 59,398' 63,541' 60,970 61,055 61,536 68,175 64,608 60,985 58,326 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 26,980 27,928 29,014 30,612 29,080 29,565 29,296 28,876 24,571 3 Nonbank securities dealers 5,022 4,273 5,110 4,654 4,408 4,471 4,259 4,649 4,250 4 All other 26,054 24,697 24,468 24,727 26,048 24,934 25,052 24,475 23,790 All other maturities 5 Commercial banks in United States 4,362' 4,638' 4,807' 4,476' 4,446 4,376 4,500 4,778 5,292 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 8,802 9,299 9,534 9,487 9,221 9,484 9,806 10,088 11,005 7 Nonbank securities dealers 4,914 4,986 4,898 5,010 5,213 4,997 4,687 4,801 5,516 8 All other 8,808 8,544 9,441 9,581 9,194 8,918 8,954 8,820 9,716 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 23,575 23,574 24,176 25,220 24,415 25,700 23,208 22,144 20,415 10 Nonbank securities dealers 4,749 4,638 4,137 3,897 4,636 5,121 4,467 4,260 4,359 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit1 Short-term adjustment credit Feder B al an R k e serve and seasonal credit F of i rs b t o 6 rr 0 o w da in y g s N of e x b t o r 9 r 0 o w da in y g s After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 3/31/83 date rate 3/31/83 rate 3/31/83 rate 3/31/83 rate Boston m 12/14/82 9 8!6 9 916 10 10 Vi 11 12/14/82 New York 12/15/82 12/15/82 Philadelphia 12/17/82 12/17/82 Cleveland 12/15/82 12/15/82 Richmond 12/15/82 12/15/82 Atlanta 12/14/82 12/14/82 Chicago 12/14/82 12/14/82 St. Louis 12/14/82 12/14/82 Minneapolis 12/14/82 12/14/82 Kansas City .... 12/15/82 12/15/82 Dallas 12/14/82 12/14/82 San Francisco... m 12/14/82 9 8 '6 9 9V2 10 1016 11 12/14/82 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or Effective date A le l v l e F l) . — R. B o a f n k Effective date A le l v l e F l) . — R. B o a f n k Effective A le ll v e F l . s R - . Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1973 7!/2 m 1978-- July 3 7-71/4 7'/4 1981-- May 5 13-14 14 1974— Apr. 25 716-8 8 10 71/4 71/4 8 14 14 3 0 8 8 Aug. 21 73/4 7% Nov. 2 13-14 13 Dec. 9 7V+-8 73/4 Sept. 22 8 8 6 13 13 16 73/4 73/4 Oct. 16 8-8!6 8(6 Dec. 4 12 12 20 81/2 8(6 1975— Jan. 6 7V4-73/4 73/4 Nov. 1 8'6-9>6 9 (6 1982---JJuullyy 20 11'6-12 11'6 10 71/4-73/4 71/4 3 9'/2 9V2 23 111/2 11 '/2 24 71/4 71/4 Aug. 2 11-1116 11 Feb. 5 63/4-7'/4 63/4 1979-- July 20 10 10 i 11 11 7 6% 63/4 Aug. 17 10-101/2 1016 16 10'6 1016 Mar. 10 6'/4-63/4 61/4 20 10(6 1016 27 10-1016 10 14 6V4 61/4 Sept. 19 10(6-11 11 30 10 10 May 16 6-6V4 6 21 11 11 Oct. 12 9(6-10 9'6 23 6 6 Oct. 8 11-12 12 13 91/2 9'6 10 12 12 Nov. 22 9-9'6 9 1976— Jan. 19 51/2-6 516 26 9 9 23 516 5!6 1980-- Feb. 15 12-13 13 Dec. 14 816-9 9 Nov. 22 5>/4-5>/2 51/4 19 13 13 15 8 >6-9 8'6 26 5'A 51/4 May 29 12-13 13 17 8'6 8'6 30 12 12 1977— Aug. 30 5'/4-53/4 51/4 June 13 11-12 11 31 5'/4-53/4 53/4 16 11 11 Sept. 2 53/4 53/4 July 28 10-11 10 Oct. 26 6 6 29 10 10 Sept. 26 11 11 1978— Jan. 9 6-6 '6 61/2 Nov. 17 12 12 20 616 616 Dec. 5 12-13 13 May 11 61/2-7 7 8 13 13 12 7 7 In effect Mar. 31 Wi 1. Applicable to advances when exceptional circumstances or practices involve In 1980 and 1981, the Federal Reserve applied a surcharge to short-term only a particular depository institution and to advances when an institution is adjustment credit borrowings by institutions with deposits of $500 million or more under 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 adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and 1980. 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

A46 Domestic Nonfinancial Statistics • April 1983 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Member bank requirements Depository institution requirements Type of i d n e p m o i s ll i i t o , n a s n d o f d d e o p l o l s a i r t s interval befo M re o n im et p a l r e y m C e o n n ta t t r i o o l n A o c f t the Ty d p e e p o o f s i d t e i p n o te s r it v , al a 5 n d aft M er o i n m et p a l r e y m C en o t n a t t r i o o l n A o c f t6 t he Effective date Percent Net demand~L Net transaction accounts7 8 0-2 7 12/30/76 $0—$26.3 million 2-10 9V2 12/30/76 Over $26.3 million 10-100 113/4 12/30/76 100-400 125/4 12/30/76 Nonpersonal time deposits9 Over 400 16'/4 12/30/76 By original maturity Less than 2Vi years Time and savings2'3 2'/2 years or more Savings 3/16/67 Eurocurrency liabilities Time4 All types 0-5, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Vi 1/8/76 4 years or more ... 1 10/30/75 Over 5, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2l/2 1/8/76 4 years or more ... 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97- Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report 320) provides that $2 million of reservable liabilities (transaction accounts, for 1976, table 13. Under provisions of the Monetary Control Act, depository nonpersonal time deposits, and Eurocurrency liabilities) of each depository institutions include commercial banks, mutual savings banks, savings and loan institution be subject to a zero percent reserve requirement. The Board is to adjust associations, credit unions, agencies and branches offoreign banks, and Edge Act the amount of reservable liabilities subject to this zero percent reserve requirecorporations. ment each year for the next succeeding calendar year by 80 percent of the 2. Requirement schedules are graduated, and each deposit interval applies to percentage increase in the total reservable liabilities of all depository institutions, that part of the deposits of each bank. Demand deposits subject to reserve measured on an annual basis as of June 30. No corresponding adjustment is to be requirements were gross demand deposits minus cash items in process of made in the event of a decrease. Effective Dec. 9, 1982, the amount of the collection and demand balances due from domestic banks. exemption was established at $2.1 million. In determining the reserve require- The Federal Reserve Act as amended through 1978 specified different ranges of ments of a depository institution, the exemption shall apply in the following order: requirements for reserve city banks and for other banks. Reserve cities were (1) nonpersonal money market deposit accounts (MMDAs) authorized under 12 designated under a criterion adopted effective Nov. 9, 1972, by which a bank CFR section 1204.122; (2) net NOW accounts (NOW accounts less allowable having net demand deposits of more than $400 million was considered to have the deductions); (3) net other transaction accounts; and (4) nonpersonal time deposits character of business of a reserve city bank. The presence of the head office of or Eurocurrency liabilities starting with those with the highest reserve ratio. With such a bank constituted designation of that place as a reserve city. Cities in which respect to NOW accounts and other transaction accounts, the exemption applies there were Federal Reserve Banks or branches were also reserve cities. Any only to such accounts that would be subject to a 3 percent reserve requirement. banks having net demand deposits of $400 million or less were considered to have 6. For nonmember banks and thrift institutions that were not members of the the character of business of banks outside of reserve cities and were permitted to Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, maintain reserves at ratios set for banks not in reserve cities. 1987. For banks that were members on or after July 1, 1979, but withdrew on or Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends due from domestic banks to their foreign branches and on deposits that foreign on Oct. 24, 1985. For existing member banks the phase-in period is about three branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent years, depending on whether their new reserve requirements are greater or less respectively. The Regulation D reserve requirement of borrowings from unrelated than the old requirements. All new institutions will have a two-year phase-in banks abroad was also reduced to zero from 4 percent. beginning with the date that they open for business, except for those institutions Effective with the reserve computation period beginning Nov. 16, 1978, that have total reservable liabilities of $50 million or more. domestic deposits of Edge corporations were subject to the same reserve 7. Transaction accounts include all deposits on which the account holder is requirements as deposits of member banks. permitted to make withdrawals by negotiable or transferable instruments, pay- 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as ment orders of withdrawal, and telephone and preauthorized transfers (in excess Christmas and vacation club accounts were subject to the same requirements as of three per month) for the purpose of making payments to third persons or others. savings deposits. However, MMDAs and similar accounts offered by institutions not subject to the The average reserve requirement on savings and other time deposits before rules of the Depository Institutions Deregulation Committee (DIDC) that permit implementation of the Monetary Control Act had to be at least 3 percent, the no more than six preauthorized, automatic, or other transfers per month of which minimum specified by law. no more than three can be checks—are not transaction accounts (such accounts 4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent are savings deposits subject to time deposit reserve requirements.) was imposed on large time deposits of $100,000 or more, obligations of affiliates, 8. The Monetary Control Act of 1980 requires that the amount of transaction and ineligible acceptances. This supplementary requirement was eliminated with accounts against which the 3 percent reserve requirement applies be modified the maintenance period beginning July 24, 1980. annually by 80 percent of the percentage increase in transaction accounts held by Effective with the reserve maintenance period beginning Oct. 25, 1979, a all depository institutions determined as of June 30 each year. Effective Dec. 31, marginal reserve requirement of 8 percent was added to managed liabilities in 1981, the amount was increased accordingly from $25 million to $26 million; and excess of a base amount. This marginal requirement was increased to 10 percent effective Dec. 30, 1982, to $26.3 million. beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and 9. In general, nonpersonal time deposits are time deposits, including savings was eliminated beginning July 24, 1980. Managed liabilities are defined as large deposits, that are not transaction accounts and in which the beneficial interest is time deposits, Eurodollar borrowings, repurchase agreements against U.S. held by a depositor that is not a natural person. Also included are certain government and federal agency securities, federal funds borrowings from non- transferable time deposits held by natural persons, and certain obligations issued member institutions, and certain other obligations. In general, the base for the to depository institution offices located outside the United States. For details, see marginal reserve requirement was originally the greater of (a) $100 million or (b) section 204.2 of Regulation D. the average amount of the managed liabilities held by a member bank, Edge corporation, or family of U.S. branches and agencies of a foreign bank for the two NOTE. Required reserves must be held in the form of deposits with Federal reserve computation periods ending Sept. 26, 1979. For the computation period Reserve Banks or vault cash. After implementation of the Monetary Control Act, beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease nonmembers may maintain reserves on a pass-through basis with certain apin an institution's U.S. office gross loans to foreigners and gross balances due proved institutions. from foreign offices of other institutions between the base period (Sept. 13-26, 1979) and the week ending Mar. 12, 1980, whichever was greater. For the computation period beginning May 29, 1980, the base was increased by IVi percent above the base used to calculate the marginal reserve in the statement week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and balances declined. 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 Commercial banks mut S u a a v l in sa g v s in a g n s d b lo a a n n k s a s ( s t o h c ri i f a t ti i o n n s s t it a u n t d io ns) Type and maturity of deposit In effect March 31, 1983 Previous maximum In effect March 31, 1983 Previous maximum Percent Effective Effective Effective date date date 1 Savings 5VA 7/1/79 7/1/73 5'/2 7/1/79 5'/4 2 Negotiable order of withdrawal accounts2 . . 5'/4 12/31/80 1/1/74 5'/4 12/31/80 5 Time accounts3 Fixed ceiling rates by maturity4 4 3 9 1 0 4 - d 8 a 9 y s d a to y s' 1 year 5 5! % /4 8 1 / / 1 1 / / 7 8 9 0 5 5 Vi 7 7 / / 1 1 / / 7 7 3 3 (6) 6 1/1/80 (6) 53/4 5 6 2 1 t t o o 2 IV y i e y a e rs a 7 r s7 7/1/73 5 53 '/ / 2 4 1 1 / / 2 2 1 1 / / 7 7 0 0 6V2 <>) 5 6 3 /4 7 2Vi to 4 years7 6!/2 7/1/73 1/21/70 63/4 (') 6 1 9 8 0 4 8 6 y t t o o e a 6 8 r s y y e e o a a r r r m s s 8 8 ore8 7 I 7 ' V / % 4 i 12 1 6 / 1 2 / / 1 3 1 / / / 7 7 7 8 4 3 (6) 71/4 11/1/73 7 7 1 3/ / 4 2 12 1 6 / 1 2 / / 1 3 1 / / / 7 7 7 4 8 3 ') 7'/2 11 Issued to governmental units (all maturities)10 6/1/78 73/4 12/23/74 6/1/78 73/4 12 IRAs and Keogh (H.R. 10) plans (3 years or more)10'" 6/1/78 73/4 7/6/77 6/1/78 73/4 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, cooper- more with minimum denominations of $1,000 had no ceiling; however, the amount ative banks, and mutual savings banks in Massachusetts and New Hampshire of such certificates that an institution could issue was limited to 5 percent of its were first permitted to offer negotiable order of withdrawal (NOW) accounts on total time and savings deposits. Sales in excess of that amount, as well as Jan. 1, 1974. Authorization to issue NOW accounts was extended to similar certificates of less than $1,000, were limited to the 6V2 percent ceiling on time institutions throughout New England on Feb. 27, 1976, in New York State on deposits maturing in 2]/2 years or more. Effective Nov. 1, 1973, ceilings were Nov. 10, 1978, New Jersey on Dec. 28, 1979, and to similar institutions nationwide reimposed on certificates maturing in 4 years or more with minimum denominaeffective Dec. 31, 1980. Effective January 5, 1983 the interest rate ceiling is tion of $ 1,000. There is no limitation on the amount of these certificates that banks removed for NOW accounts with an initial balance and average maintenance can issue. balance of $2,500. 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum 3. For exceptions with respect to certain foreign time deposits see the denomination requirements. BULLETIN for October 1962 (p. 1279), August 1965 (p. 1084), and February 1968 11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate (p. 167). as thrifts on IRA and Keogh accounts and accounts of governmental units when 4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts such deposits are placed in 2>/2-year-or-more variable-ceiling certificates or in 26at savings and loan associations was decreased to 14 days and the minimum week money market certificates regardless of the level of the Treasury bill rate. maturity period for time deposits at savings and loan associations in excess of $100,000 was decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity NOTE. Before M^r. 31, 1980, the maximum rates that could be paid by federally or notice period for time deposits was decreased from 30 to 14 days at mutual insured commercial banks, mutual savings banks, and savings and loan associasavings banks. tions were established by the Board of Governors of the Federal Reserve System, 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time the Board of Directors of the Federal Deposit Insurance Corporation, and the deposits was decreased from 30 to 14 days at commercial banks. Federal Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 6. No separate account category. respectively. Title II of the Depository Institutions Deregulation and Monetary 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to required for savings and loan associations, except in areas where mutual savings establish maximum rates of interest payable on deposits to the Depository banks permitted lower minimum denominations. This restriction was removed for Institutions Deregulation Committee. The maximum rates on time deposits in deposits maturing in less than 1 year, effective Nov. 1, 1973. denominations of $100,000 or more with maturities of 30-89 days were suspended 8. No minimum denomination. Until July 1, 1979, the minimum denomination in June 1970; the maximum rates for such deposits maturing in 90 days or more was $1,000 except for deposits representing funds contributed to an individual were suspended in May 1973. For information regarding previous interest rate retirement account (IRA) or a Keogh (H.R. 10) plan established pursuant to the ceilings on all types of accounts, see earlier issues of the FEDERAL RESERVE Internal Revenue Code. The $1,000 minimum requirement was removed for such BULLETIN, the Federal Home Loan Bank Board Journal, and the Annual Report accounts in December 1975 and November 1976 respectively. 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

A46 Domestic Nonfinancial Statistics • April 1983 1.16 Continued TIME DEPOSITS SUBJECT TO VARIABLE CEILING RATES 91-day time deposits. Effective May 1, 1982, depository institutions were 12-month all savers certificates. Effective Oct. 1, 1981, depository institutions authorized to offer time deposits that have a minimum denomination of $7,500 and are authorized to issue all savers certificates (ASCs) with a 1-year maturity and an a maturity of 91 days. Effective January 5, 1983, the minimum denomination annual investment yield equal to 70 percent of the average investment yield for 52required for this deposit is reduced to $2,500. The ceiling rate of interest on these week U.S. Treasury bills as determined by the auction of 52-week Treasury bills deposits is indexed to the discount rate (auction average) on most recently issued held immediately before the calendar week in which the certificate is issued. A 91-day Treasury bills for thrift institutions and the discount rate minimum 25 basis maximum lifetime exclusion of $ 1,000 ($2,000 on a joint return) from gross income points for commercial banks. The rate differential ends 1 year from the effective is generally authorized for interest income from ASCs. The annual investment date of these instruments and is suspended at any time the Treasury bill discount yield for ASCs issued in December 1982 (in percent) was as follows: Dec. 26, 6.26. rate is 9 percent or below for four consecutive auctions. The maximum allowable rates in March 1983 (in percent) for commercial banks and thrifts were as follows: 2'/2-year to less than 3'/2-year time deposits. Effective Aug. 1, 1981, commercial Mar. 1, 7.944; Mar. 8, 8.205; Mar. 15, 8.256; Mar. 22, 8.434; Mar. 29, 8.680. banks are authorized to pay interest on any variable ceiling nonnegotiable time deposit with an original maturity of 2l/2 years to less than 4 years at a rate not to Six-month money market time deposits. Effective June 1, 1978, commercial exceed 'A of 1 percent below the average 2'/2-year yield for U.S. Treasury banks and thrift institutions were authorized to offer time deposits with a maturity securities as determined and announced by the Treasury Department immediately of exactly 26 weeks and a minimum denomination requirement of $10,000. before the date of deposit. Effective May 1, 1982, the maximum maturity for this Effective January 5, 1983, the minimum denomination required for this deposit is category of deposits was reduced to less than 3'/2 years. Thrift institutions may reduced to $2,500. The ceiling rate of interest on these deposits is indexed to the pay interest on these certificates at a rate not to exceed the average 2'/2-year yield discount rate (auction average) on most recently issued 26-week U.S. Treasury for Treasury securities as determined and announced by the Treasury Department bills. Interest on these certificates may not be compounded. Effective for all 6- immediately before the date of deposit. If the announced average 2'/2-year yield month money market certificates issued beginning Nov. 1, 1981, depository for Treasury securities is less than 9.50 percent, commercial banks may pay 9.25 institutions may pay rates of interest on these deposits indexed to the higher of (1) percent and thrift institutions 9.50 percent for these deposits. These deposits have the rate for 26-week Treasury bills established immediately before the date of no required minimum denomination, and interest may be compounded on them. deposit (bill rate) or (2) the average of the four rates for 26-week Treasury bills The ceiling rates of interest at which they may be offered vary biweekly. The established for the 4 weeks immediately before the date of deposit (4-week maximum allowable rates in March 1983 (in percent) for commercial banks were average bill rate). Ceilings are determined as follows: as follows: Mar. 1, 9.25; Mar. 15, 9.45; Mar. 29, 9.70; and for thrift institutions: Mar. 1, 9.50; Mar. 15, 9.70; Mar. 29, 9.95. Bill rate or 4-week Commercial bank ceiling Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks and thrift instituaverage bill rate tions were authorized to offer variable ceiling nonnegotiable time deposits with no 7.50 percent or below 7.75 percent required minimum denomination and with maturities of 2V2 years or more. Above 7.50 percent 'A of 1 percentage point plus the higher of Effective Jan. 1, 1980, the maximum rate for commercial banks was ¥4 percentage the bill rate or 4-week average bill rate point below the average yield on 2'/2-year U.S. Treasury securities; the ceiling rate for thrift institutions was 'A percentage point higher than that for commercial Thrift ceiling banks. Effective Mar. 1, 1980, a temporary ceiling of ll3/4 percent was placed on 7.25 percent or below 7.75 percent these accounts at commercial banks and 12 percent on these accounts at savings Above 7.25 percent, but below l/z of 1 percentage point plus the higher of and loans. Effective June 2, 1980, the ceiling rates for these deposits at 8.50 percent the bill rate or 4-week average bill rate commercial banks and savings and loans were increased Vi percentage point. The 8.50 percent or above, but below 9 percent temporary ceiling was retained, and a minimum ceiling of 9.25 percent for 8.75 percent commercial banks 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 The maximum rates in March 1983 for commercial banks based on the bill rate were as follows: Mar. 1, 8.198; Mar. 8, 8.421; Mar. 15, 8.514; Mar. 22, 8.785; Mar. 29, 8.955, and based on the 4-week average bill rate were as follows: Mar. 1, 8.414; Mar. 8, 8.370; Mar. 15, 8.339; Mar. 22, 8.479; Mar. 29, 8.668. The maximum allowable rates in March 1983 for thrifts based on the bill rate were as follows: Mar. 1, 8.448; Mar. 8, 8.671; Mar. 15, 8.764; Mar. 22, 9.000; Mar. 29, 9.000; and based on the 4-week average bill rate were as follows: Mar. 1, 8.664; Mar. 8, 8.620; Mar. 15, 8.589; Mar. 22, 8.729; Mar. 29, 8.918. TIME DEPOSITS NOT SUBJECT TO INTEREST RATE CEILINGS Money market deposit account. Effective Dec. 14, 1982, depository institutions Time deposits of 7 to 31 days. Effective Sept. 1, 1982, depository institutions are authorized to offer a new account with a required initial balance of $2,500 and were authorized to issue nonnegotiable time deposits of $20,000 or more with a an average maintenance balance of $2,500 not subject to interest rate restrictions. maturity or required notice period of 7 to 31 days. The maximum rate of interest No minimum maturity period is required for this account, but depository payable by thrift institutions was the rate established and announced (auction institutions must reserve the right to require seven days' notice before withdraw- average on a discount basis) for U.S. Treasury bills with maturities of 91 days at als. When the average balance is less than $2,500, the account is subject to the the auction held immediately before the date of deposit or renewal ("bill rate"). maximum ceiling rate of interest for NOW accounts; compliance with the average Commercial banks could pay the bill rate minus 25 basis points. The interest rate balance requirement may be determined over a period of one month. Depository ceiling was suspended when the bill rate is 9 percent or below for the four most institutions may not guarantee a rate of interest for this account for a period longer recent auctions held before the date of deposit or renewal. Effective January 5, than one month or condition the payment of a rate on a requirement that the funds 1983, the minimum denomination required for this deposit was reduced to $2,500 remain on deposit for longer than one month. No more than six preauthorized, and the interest rate ceiling was removed. automatic, or other third-party transfers are permitted per month, of which no more than three can be checks. Telephone transfers to third parties or to another Time deposits of 3'/2 years or more. Effective May 1, 1982, depository account of the same depositor are regarded as preauthorized transfers. institutions are authorized to offer negotiable or nonnegotiable time deposits with a minimum original maturity of 3'/2 years or more that are not subject to interest JRAs and Keogh (H.R. 10) plans (18 months or more). Effective Dec. 1, 1981, rate ceilings. Such time deposits have no minimum denomination, but must be depository institutions are authorized to offer time deposits not subject to interest made available in a $500 denomination. Additional deposits may be made to the rate ceilings when the funds are deposited to the credit of, or in which the entire account during the first year without extending its maturity. beneficial interest is held by, an individual pursuant to an IRA agreement or Keogh (H.R. 10) plan. Such time deposits must have a minimum maturity of 18 months, and additions may be made to the time deposit at any time before 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 1983 TTyyppee ooff ttrraannssaaccttiioonn 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 7,668 13,899 17,067 1,721 425 774 2,552 1,897 0 11,,445566 2 Gross sales 7,331 6,746 8,369 651 674 0 0 731 1,983 934 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,389 1,816 3,000 600 400 0 0 200 900 300 Others within I year 5 Gross purchases 912 317 312 0 0 0 88 0 0 0 6 Gross sales 0 23 0 0 0 0 0 0 0 0 7 Maturity shift 12,427 13,794 17,295 4,938 733 623 2,819 906 558 4,564 8 Exchange -18,251 -12,869 -14,164 -3,914 -650 0 -1,924 -943 -544 -2,688 9 Redemptions 0 0 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 2,138 1,702 1,797 0 0 0 485 0 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -8,909 -10,299 -14,524 -4,938 -733 -623 -2,204 -906 -553 -4,564 13 Exchange 13,412 10,117 11,804 3,078 650 0 1,515 943 544 1,599 5 to 10 years 14 Gross purchases 703 393 388 0 0 0 194 0 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -3,092 -3,495 -2,172 601 0 0 -616 0 -5 229 17 Exchange 2,970 1,500 2,128 837 0 0 250 0 0 650 Over 10 years 18 Gross purchases 811 379 307 0 0 0 132 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -426 0 -601 -601 0 0 0 0 0 -229 21 Exchange 1,869 1,253 234 0 0 0 159 0 0 439 All maturities 22 Gross purchases 12,232 16,690 19,870 1,721 425 774 3,452 1,897 0 1,456 23 Gross sales 7,331 6,769 8,369 651 674 0 0 731 1,983 934 24 Redemptions 3,389 1,816 3,000 600 400 0 0 200 900 300 Matched transactions 25 Gross sales 674,000 589,312 543,804 39,403 51,983 45,655 39,579 72,123 59,398 35,234 26 Gross purchases 675,496 589,647 543,173 37,962 51,554 46,370 41,724 69,088 59,043 38,204 Repurchase agreements 27 Gross purchases 113,902 79,920 130,774 3,755 9,649 5,618 4,161 15,229 6,747 66,,669977 28 Gross sales 113,040 78,733 130,286 2,567 7,035 9,420 4,161 11,525 10,451 6,697 29 Net change in U.S. government securities 3,869 9,626 8,358 217 1,535 -2,313 5,596 1,636 -6,943 3,192 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 668 494 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 145 108 189 46 5 6 6 9 5 Repurchase agreements 33 Gross purchases 28,895 13,320 18,957 1,095 1,997 1,776 739 2,566 452 276 34 Gross sales 28,863 13,576 18,638 866 1,225 2,778 739 1,978 1,040 276 35 Net change in federal agency obligations 555 130 130 183 767 -1,008 * 582 -596 -5 BANKERS ACCEPTANCES 36 Repurchase agreements, net 73 -582 1,285 565 248 -813 0 1,480 -1,480 0 37 Total net change in System Open Market Account 4,497 9,175 9,773 966 2,550 -4,134 5,596 3,697 -9,019 3,187 NOTE: Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic NonfinancialS tatistics • April 1983 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1983 1983 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Jan. Feb. Mar. Consolidated condition statement ASSETS 1 Gold certificate account 11,139 11,138 11,138 11,138 11,138 11,144 11,139 11,138 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 Coin 512 510 495 495 479 506 508 477 Loans 4 To depository institutions 1,777 367 3,730 825 1,985 354 1,155 2,808 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 227755 00 00 00 00 00 00 00 Federal agency obligations 7 Bought outright 8,923 8,923 88,,991155 88,,991155 88,,991155 88,,992288 88,,992233 8,915 8 Held under repurchase agreements 379 0 0 0 0 0 0 0 U.S. government securities Bought outright 9 Bills 51,635 53,701 55,111 55,629 53,478 51,186 54,379 55,469 10 Notes 62,187 62,187 62,187 62,187 62,187 62,626 62,187 62,187 11 Bonds 18,995 18,995 18,995 18,995 18,995 18,556 18,995 18,995 12 Total1 132,817 134,883 136,293 136,811 134,660 132,368 135,561 136,651 13 Held under repurchase agreements 3,526 0 0 0 0 0 0 0 14 Total U.S. government securities 136,343 134,883 136,293 136,811 134,660 132,368 135,561 136,651 15 Total loans and securities 147,697 144,173 148,938 146,551 145,560 141,650 145,639 148,374 16 Cash items in process of collection 12,479 8,834 7,844 8,164 8,818 6,620 4,207 6,584 17 Bank premises 552 553 552 553 552 550 552 552 Other assets 18 Denominated in foreign currencies2 4,992 4,993 5,011 5,012 5,017 5,263 4,988 4,962 19 All other3 3,413 3,315 3,955 3,793 3,816 4,068 5,421 3,673 20 Total assets 185,402 178,134 182,551 180,324 179,998 174,419 177,072 180,378 LIABILITIES 21 Federal Reserve notes 139,802 140,675 140,951 140,870 141,439 137,680 139,060 141,497 Deposits 22 Depository institutions 27,832 22,389 24,265 24,403 23,793 22,683 22,468 23,419 23 U.S. Treasury—General account 3,525 3,407 3,935 3,118 2,116 2,627 2,856 3,572 24 Foreign—Official accounts 226 197 237 199 250 366 352 425 25 Other 520 497 668 477 568 599 477 533 26 Total deposits 32,103 26,490 29,105 28,197 26,727 26,275 26,153 27,949 27 Deferred availability cash items 8,731 6,292 7,667 6,574 7,075 5,614 6,871 6,098 28 Other liabilities and accrued dividends4 1,678 1,623 1,776 1,621 1,699 1,708 1,709 1,752 29 Total liabilities 182,314 175,080 179,499 177,262 176,940 171,277 173,793 177,296 CAPITAL ACCOUNTS 30 Capital paid in 1,388 1,389 1,393 1,393 1,393 1,381 1,388 1,393 31 Surplus 1,359 1,359 1,359 1,359 1,359 1,359 1,359 1,359 32 Other capital accounts 341 306 300 310 306 402 532 330 33 Total liabilities and capital accounts 185,402 178,134 182,551 180,324 179,998 174,419 177,072 180,378 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 114,134 108,925 111,5% 109,965 109,450 112,040 112,208 111122,,112200 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) 159,611 159,592 159,682 159,805 159,624 159,546 159,741 159,568 36 LESS: Held by bank5 19,809 18,917 18,731 18,935 18,185 21,866 20,681 18,130 37 Federal Reserve notes, net 139,802 140,675 140,951 140,870 141,439 137,680 139,060 141,438 Collateral for Federal Reserve notes 38 Gold certificate account 11,139 11,138 11,138 11,138 11,138 11,144 11,139 11,138 39 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. government and agency securities 124,045 124,919 125,195 125,114 125,683 121,918 123,303 125,682 42 Total collateral 139,802 140,675 140,951 140,870 141,439 137,680 139,060 141,438 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 market exchange rates of foreign-exchange commitments. against receipt of foreign currencies and foreign currencies warehoused for the 5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank U.S. Treasury. Assets shown in this line are revalued monthly at market exchange are exempt from the collateral requirement. rates. 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 1983 1983 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Jan. 31 Feb. 28 Mar. 31 1 Loans—Total 1,777 367 3,730 825 1,985 354 1,155 2,808 2 Within 15 days 1,756 347 3,708 813 1,968 338 1,141 2,782 3 16 days to 90 days 21 20 22 12 17 16 14 26 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 275 0 0 0 0 0 0 0 6 Within 15 days 275 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 136,343 134,883 136,293 136,811 134,660 132,368 135,561 136,651 10 Within 15 days1 7,519 7,088 8,669 8,422 4,596 3,755 3,916 3,525 11 16 days to 90 days 25,953 24,828 24,284 26,537 26,664 25,796 28,249 26,664 12 91 days to 1 year 40,991 41,086 41,459 39,971 41,519 39,060 40,865 44,879 13 Over 1 year to 5 years 32,127 32,128 32,128 32,128 32,128 35,092 32,778 31,830 14 Over 5 years to 10 years 12,970 12,970 12,970 12,970 12,970 12,091 12,970 12,970 15 Over 10 years 16,783 16,783 16,783 16,783 16,783 16,574 16,783 16,783 16 Federal agency obligations—Total 9,302 8,923 8,915 8,915 8,915 8,928 8,923 8,915 17 Within 15 days' 537 158 0 122 309 99 225 309 18 16 days to 90 days 601 662 789 667 508 690 602 508 19 91 days to 1 year 2,059 1,998 1,886 1,886 1,862 1,957 1,963 1,862 20 Over 1 year to 5 years 4,515 4,515 4,615 4,618 4,614 4,715 4,543 4,614 21 Over 5 years to 10 years 1,072 1,072 1,107 1,104 1,104 949 1,072 1,104 22 Over 10 years 518 518 518 518 518 518 518 518 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • April 1983 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1982 1983 IItteemm 1978 1979 1980 1981 Dec. Dec. Dec. Dec. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 1 Total reserves2 34.26 36.46 37.99 38.80 39.57 39.88 2 Nonborrowed reserves 31.95 32.79 34.77 37.35 38.29 38.63 39.40 39.84 40.26 40.43 39.88 39.95 3 Required reserves.... 32.59 33.93 35.95 37.67 38.49 39.18 39.47 40.06 40.39 40.41 40.04 40.31 4 Monetary base3 132.2 142.5 155.0 162.7 170.2 171.8 172.9 174.0 175.2 177.1 177.6 179.3 Not seasonally adjusted 5 Total reserves2 33.37 34.83 37.11 38.66 38.51 39.35 40.00 40.68 41.57 42.25 40.23 40.17 6 Nonborrowed reserves 32.50 33.35 35.42 38.03 38.00 38.42 39.52 40.06 40.94 41.72 39.65 39.38 7 Required reserves 33.13 34.50 36.59 38.34 38.20 38.97 39.59 40.28 41.07 41.71 39.80 39.74 8 Monetary base3 134.8 145.4 158.0 165.8 170.4 171.4 172.9 175.1 178.4 177.3 175.4 177.0 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS4 9 Total reserves2 41.68 43.91 40.66 41.92 40.18 39.96 40.59 41.20 41.85 41.86 39.79 38.03 10 Nonborrowed reserves 40.81 42.43 38.97 41.29 39.66 39.03 40.11 40.58 41.22 41.33 39.21 37.25 11 Required reserves 41.45 43.58 40.15 41.60 39.87 39.58 40.18 40.80 41.35 41.32 39.36 37.61 12 Monetary base3 144.6 156.2 162.4 169.7 172.8 172.3 173.8 176.0 179.3 177.9 176.0 175.9 1. Reserve aggregates include required reserves of member banks and Edge al phase-in program of the Monetary Control Act of 1980, the net changes in Act corporations and other depository institutions. Discontinuities associated required reserves of depository institutions have been as follows: Effective Nov. with the implementation of the Monetary Control Act, the inclusion of Edge Act 13, 1980, a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245 million; corporation reserves, and other changes in Regulation D have been removed. Mar. 12, 1981, an increase of $75 million; May 14, 1981, an increase of $245 Beginning with the week ended December 23, 1981, reserve aggregates have been million; Sept. 3, 1981, a reduction of $1.1 billion; Nov. 12, 1981, an increase of reduced by shifts of reservable liabilities to international banking facilities (IBFs). $210 million; Jan. 14, 1982, a reduction of $60 million; Feb. 11, 1982 an increase of On the basis of reports of liabilities transferred to IBFs by U.S. commercial banks $170 million; Mar. 4, 1982, an estimated reduction of $2.0 billion; May 13, 1982, an and U.S. agencies and branches of foreign banks, it is estimated that required estimated increase of $150 million; Aug. 12, 1982 an estimated increase of $140 reserves were lowered on average $10 millon to $20 million in December 1981 and million; and Sept. 2, 1982, an estimated reduction of $1.2 billion; Oct. 28, 1982 an $40 million to $70 million in January 1982. estimated reduction of $100 million; Dec. 23, 1982 an estimated reduction of $800 2. Reserve balances with Federal Reserve Banks (which exclude required million; and Mar. 3, 1983 an estimated reduction of $2.1 billion. Beginning with clearing balances) plus vault cash at institutions with required reserve balances the week ended December 23, 1981, reserve aggregates have been reduced by plus vault cash equal to required reserves at other institutions. shifts of reservable liabilities to IBFs. On the basis of reports of liabilities 3. Includes reserve balances and required clearing balances at Federal Reserve transferred to IBFs by U.S. commercial banks and U.S. agencies and branches of Banks in the current week plus vault cash held two weeks earlier used to satisfy foreign banks, it is estimated that required reserves were lowered on average by reserve requirements at all depository institutions plus currency outside the U.S. $60 million to $90 million in December 1981 and $180 million to $230 million in Treasury, Federal Reserve Banks, the vaults of depository institutions, and January 1982, mostly reflecting a reduction in reservable Eurocurrency transacsurplus vault cash at depository institutions. tions. 4. Reserves of depository institutions series reflect actual reserve requirement percentages with no adjustments to eliminate the effect of changes in Regulation D NOTE. Latest monthly and weekly figures are available from the Board's including changes associated with the implementation of the Monetary Control H.3(502) statistical release. Back data and estimates of the impact on required Act. Includes required reserves of member banks and Edge Act corporations and reserves and changes in reserve requirements are available from the Banking beginning November 13, 1980, other depository institutions. Under the transition- Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A15 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1982 1983 1979 1980 1981 1982 IItteemm Dec. Dec. Dec. Dec/ Oct/ Nov/ Dec/ Jan. Feb. Seasonally adjusted MEASURES1 1 Ml 389.0 414.1 440.6 478.2 468.7 474.0 478.2 482.1 491.0 2 M2 1,497.5 1,630.3 1,794.9 1,959.5 1,929.7 1,945.0 1,959.5 2,008.1 2,048.3 3 M3 1,758.4 1,936.7 2,167.9 2,377.7 2,352.0 2,370.2 2,377.7 2,401.4 2,428.2 4 L2 2,131.8 2,343.6 2,622.0 n.a. n.a. n.a. n.a. n.a. n.a. SELECTED COMPONENTS 5 Currency 106.5 116.2 123.2 132.8 131.3 131.9 132.8 134.2 135.6 6 Traveler's checks3 3.7 4.1 4.5 4.2 4.4 4.4 4.2 4.1 4.3 7 Demand deposits 262.0 266.8 236.4 239.8 236.0 237.6 239.8 239.4 238.7 8 Other checkable deposits4 17.0 26.9 76.6 101.3 97.0 100.1 100.7 104.4 112.4 9 Savings deposits5 423.1 400.7 344.4 358.9 358.0 366.4 358.7 332.5 322.1 10 Small-denomination time deposits6 635.9 731.7 828.6 859.7 878.0 874.9 859.7 798.1 756.2 11 Large-denomination time deposits7 222.2 258.9 302.6 333.8 339.6 340.4 333.8 310.6 298.0 Not seasonally adjusted MEASURES1 12 Ml 398.8 424.7 452.1 491.0 470.6 479.0 491.0 489.6 480.6 13 M2 1,502.1 1,635.0 1,799.6 1,964.5 1,928.6 1,943.6 1,964.5 2,016.4 2,040.0 14 M3 1,766.1 1,944.9 2,175.9 2,385.3 2,350.4 2,369.2 2,385.3 2,413.2 2,424.6 15 L2 2,138.9 2,350.8 2,629.7 n.a. n.a. n.a. n.a. n.a. n.a. SELECTED COMPONENTS 16 Currency 108.2 118.3 125.4 135.2 131.3 132.7 135.2 133.2 133.7 17 Traveler's checks3 3.5 3.9 4.3 4.0 4.4 4.2 4.0 3.9 4.1 18 Demand deposits 270.1 275.2 244.0 247.7 237.6 240.6 247.7 245.1 232.8 19 Other checkable deposits4 17.0 27.2 78.4 81.0 76.1 79.2 81.0 82.3 83.6 20 Overnight RPs and Eurodollars8 21.2 28.4 36.1 44.3 43.9 45.2 44.3 47.4 49.3 21 Savings deposits5 420.7 398.3 342.1 356.0 357.8 363.4 356.1 332.1 320.9 22 Small-denomination time deposits6 633.1 728.3 824.1 854.5 875.3 871.5 854.4 799.3 759.5 Money market mutual funds 23 General purpose and broker/dealer 33.4 61.4 150.9 182.2 187.6 191.1 182.2 166.7 159.4 24 Institution only 9.5 14.9 36.0 47.6 49.3 49.9 47.6 46.1 45.2 25 Large-denomination time deposits7 226.0 262.4 305.9 336.5 339.1 340.8 336.5 314.2 302.7 1. Composition of the money stock measures is as follows: 3. Outstanding amount of U.S. dollar-denominated traveler's checks of non- Ml: Averages of daily figures for (1) currehcy outside the Treasury, Federal bank issuers. Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of 4. Includes ATS and NOW balances at all institutions, credit union share draft nonbank issuers; (3) demand deposits at all commercial banks other than those balances, and demand deposits at mutual savings banks. due to domestic banks, the U.S. government, and foreign banks and official 5. Excludes NOW and ATS accounts at commercial banks and thrift instituinstitutions less cash items in the process of collection and Federal Reserve float; tions and CUSDs at credit unions. and (4) negotiable order of withdrawal (NOW) and automatic transfer service 6. Issued in amounts of less than $100,000 and includes retail RPs. (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) 7. Issued in amounts of $100,000 or more and are net of the holdings of accounts, and demand deposits at mutual savings banks. domestic banks, thrift institutions, the U.S. government, money market mutual M2: Ml plus savings and small-denomination time deposits at all depository funds, and foreign banks and official institutions. institutions, overnight repurchase agreements at commercial banks, overnight 8. Overnight (and continuing contract) RPs are those issued by commercial Eurodollars held by U.S. residents other than banks at Caribbean branches of banks to other than depository institutions and money market mutual funds member banks and balances of money market mutual funds (general purpose and (general purpose and broker/dealer), and overnight Eurodollars are those issued broker/dealer). by Caribbean branches of member banks to U.S. residents other than depository M3: M2 plus large-denomination time deposits at all depository institutions, institutions and money market mutual funds (general purpose and broker/dealer). term RPs at commercial banks and savings and loan associations, and balances of NOTE: Latest monthly and weekly figures are available from the Board's H.6 institution-only money market mutual funds. (508) release. Back data are available from the Banking Section, Division of 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. Research and Statistics, Board of Governors of the Federal Reserve System, residents other than banks, bankers acceptances, commercial paper, Treasury Washington, D.C. 20551. bills and other liquid Treasury securities, and U.S. savings bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • April 1983 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 1983 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998800'' 11998811'' 1199882211 Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 62,757.8 80,858.7 90,914.4 94,480.0 97,097.0 95,475.9 97,748.5 103,333.1 102,743.5 2 Major New York City banks 25,156.1 33,891.9 37,932.9 37,986.3 42,077.9 38,971.6 42,104.4 46,353.0 45,133.2 3 Other banks 37.601.7 46,966.9 52,981.6 56,493.7 55,019.1 56,504.4 55,644.1 56,980.1 57,610.3 4 ATS-NOW accounts3 159.3 743.4 1,036.2 1,165.4 1,109.4 1,224.6 1,448.1 1,262.3 1,286.4 5 Savings deposits4 670.0 672.7 721.4 707.8 637.0 697.1 889.3 904.3 827.9 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 198.7 285.8 324.2 341.0 343.0 333.8 342.6 361.1 361.3 7 Major New York City banks 803.7 1,105.1 1,287.6 1,282.5 1,298.7 1,263.7 1,381.2 1,462.3 1,462.5 8 Other banks 132.2 186.2 211.1 228.3 219.5 221.4 218.3 223.9 227.2 9 ATS-NOW accounts3 9.7 14.0 14.5 15.9 14.7 15.6 18.4 15.8 15.1 10 Savings deposits4 3.6 4.1 4.5 4.6 4.0 4.3 4.7 6.0 5.8 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 63,124.4 81,197.9 91,031.9 95,557.1 93,543.3 91,838.3 107,454.9 101,566.1 92,654.1 12 Major New York City banks 25,243.1 34,032.0 38,001.0 39,634.0 39,657.6 36,893.5 47,576.3 45,657.2 40,937.3 13 Other banks 37,881.3 47,165.9 53,030.9 55,923.1 53,885.7 54,944.8 59,878.6 55,908.8 51,716.8 14 ATS-NOW accounts3 158.0 737.6 1,027.1 1,097.3 1,098.0 1,115.0 1,411.9 1,525.5 1,198.7 15 MMDA5 0 0 0 0 0 0 0 278.4 324.7 16 Savings deposits4 669.8 672.9 720.0 695.2 672.7 663.3 878.0 980.4 754.3 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 202.3 286.1 325.0 345.3 327.8 319.3 367.2 346.1 334.8 18 Major New York City banks 814.8 1,114.2 1,295.7 1,362.5 1,220.8 1,198.6 1,540.7 1,368.1 1,366.7 19 Other banks 134.8 186.2 211.5 225.8 213.1 213.9 228.8 215.0 209.5 20 ATS-NOW accounts3 9.7 14.0 14.3 15.0 14.5 14.1 17.5 18.6 14.4 21 MMDA5 0 0 0 0 0 0 0 2.4 2.0 22 Savings deposits4 3.6 4.1 4.5 4.4 4.2 4.1 4.7 6.6 5.3 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 ac- July 1977. Back data are available on request from the Banking Section, Division counts authorized for automatic transfer to demand deposits (ATS). ATS data of Research and Statistics, Board of Governors of the Federal Reserve System, availability starts with December 1978. Washington, D.C. 20551. 4. Excludes ATS and NOW accounts, MMDA and special club accounts, such as Christmas and vacation clubs. 5. Money Market Deposit Accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1981 1982 1983 1981 1982 1983 CCaatteeggoorryy Dec.2 Oct. Nov. Dec. Jan.3 Feb. Dec.2 Oct. Nov. Dec. Jan.3 Feb. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities4 1,316.3 1,397.5 1,398.5 1,412.1 1,428.2 1,436.5 1,326.1 1,402.8 1,405.4 1,422.5 1,430.5 1,432.2 2 U.S. Treasury securities 111.0 122.3 126.4 130.9 139.8 144.5 111.4 121.3 125.5 131.5 139.3 145.1 3 Other securities 231.4 237.2 235.8 239.1 243.3 243.2 232.8 237.5 236.3 240.6 243.5 242.6 4 Total loans and leases4 973.9 1,038.1 1,036.4 1,042.0 1,045.1 1,048.8 981.8 1,044.0 1,043.5 1,050.4 1,047.7 1,044.4 5 Commercial and industrial loans 358.0 394.8 392.0 392.4 395.2 394.9 360.1 395.4 393.8 394.7 394.2 393.4 6 Real estate loans 285.7 300.5 301.6 303.2 305.3 307.6 286.8 301.7 302.8 304.1 305.9 307.3 7 Loans to individuals 185.1 190.0 190.3 191.8 192.6 192.9 186.4 191.5 191.5 193.1 193.2 192.3 8 Security loans 21.9 24.2 23.4 24.7 22.7 22.2 22.7 23.9 23.9 25.5 22.9 21.5 9 Loans to nonbank financial institutions 30.2 32.4 32.2 31.1 31.7 31.6 31.2 32.7 32.6 32.1 31.9 31.7 10 Agricultural loans 33.0 36.3 36.3 36.3 36.5 36.8 33.0 36.8 36.5 36.3 36.3 36.3 11 Lease financing receivables.... 12.7 13.1 13.1 13.1 13.3 13.3 12.7 13.1 13.1 13.1 13.3 13.3 12 All other loans 47.2 46.8 47.5 49.5 47.6 49.4 49.2 48.9 49.3 51.5 50.2 48.7 MEMO: 13 Total loans and securities plus loans sold4 5 1,319.1 1,400.3 1,401.5 1,415.0 1,431.2 1,439.4 1,328.9 1,405.6 1,408.3 1,425.4 1,433.5 1,435.1 14 Total loans plus loans sold4-5 .... 976.7 1,040.9 1,039.3 1,045.0 1,048.0 1,051.7 984.7 1,046.9 1,046.4 1,053.3 1,050.7 1,047.4 15 Total loans sold to affiliates4-5.... 2.8 2.8 2.9 2.9 3.0 3.0 2.8 2.8 2.9 2.9 3.0 3.0 16 Commercial and industrial loans plus loans sold5 360.2 397.0 394.3 394.6 397.5 397.2 362.3 397.7 396.1 396.9 396.5 395.8 17 Commercial and industrial loans sold5 2.2 2.2 2.3 2.3 2.3 2.3 2.2 2.2 2.3 2.3 2.3 2.3 18 Acceptances held 8.9 9.4 8.4 8.5 8.8 8.2 9.8 9.3 8.7 9.5 9.2 8.4 19 Other commercial and industrial loans 349.1 385.3 383.6 383.8 386.4 386.7 350.3 386.1 385.1 385.2 384.9 385.1 20 To U.S. addressees6 334.9 372.7 371.5 373.5 374.1 374.5 334.3 373.4 372.6 372.7 372.7 372.8 21 To non-U.S. addressees 14.2 12.6 12.1 10.3 12.3 12.2 16.1 12.7 12.6 12.4 12.2 12.3 22 Loans to foreign banks 19.0 13.9 14.0 13.5 13.7 14.3 20.0 14.2 14.1 14.5 14.3 14.1 1. Includes domestically chartered banks; U.S. branches and agencies of decreased $0.2 billion. As of February 2, 1983, real estate loans increased $0.5 foreign banks, New York investment companies majority owned by foreign billion and commercial and industrial loans decreased $0.5 billion. banks, and Edge Act corporations owned by domestically chartered and foreign 4. Excludes loans to commercial banks in the United States. banks. 5. Loans sold are those sold outright to a bank's own foreign branches, 2. Beginning December 1981, shifts of foreign loans and securities from U.S. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if banking offices to international banking facilities (IBFs) reduced the levels of not a bank), and nonconsolidated nonbank subsidiaries of the holding company. several items. Seasonally adjusted data that include adjustments for the amounts 6. United States includes the 50 states and the District of Columbia. shifted from domestic offices to IBFs are available in the Board's G.7 (407) statistical release (available from Publications Services, Board of Governors of NOTE. Data are prorated averages of Wednesday estimates for domestically the Federal Reserve System, Washington, D.C. 20551). chartered banks, based on weekly reports of a sample of domestically chartered 3. Due to loan reclassifications, several categories have breaks in series: banks and quarterly reports of all domestically chartered banks. For foreignbeginning January 12, 1983, real estate loans increased $0.4 billion and loans to related institutions, data are averages of month-end estimates based on weekly individuals decreased $0.2 billion. As of January 26, 1983, other securities reports from large agencies and branches and quarterly reports from all agencies, increased $0.2 billion and total loans and commercial and industrial loans branches, investment companies, and Edge Act corporations engaged in banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic NonfinancialS tatistics • April 1983 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1980 1981 1982 1983 SSoouurrccee Dec. Dec. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total nondeposit funds I Seasonally adjusted2 122.0 98.5 82.0 84.2 79.8 78.1 71.5 76.2 79.1 78.7 69.6 72.1 2 Not seasonally adjusted 122.6 98.9 85.4 86.3 81.8 82.6 77.2 78.6 84.4 79.2 67.8 70.3 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.1 114.2 113.2 113.8 114.3 116.7 114.8 121.9 121.7 124.2 129.2 131.3 4 Not seasonally adjusted 111.6 114.6 116.6 115.9 116.3 121.2 120.5 124.2 126.9 124.7 127.4 129.5 5 Net balances due to foreign-related institutions, not seasonally adjusted 8.2 -18.6 -34.0 -32.5 -37.3 -41.4 -46.1 -48.5 -45.5 -48.4 -62.6 -62.2 6 Loans sold to affiliates, not seasonally adjusted4 2.7 2.8 2.8 3.0 2.8 2.8 2.8 2.8 2.9 2.9 3.0 3.0 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -14.7 -22.5 -29.9 -29.2 -33.0 -34.4 -38.7 -40.4 -38.4 -39.6 -49.9 -50.4 8 Gross due from balances 37.5 54.9 58.1 57.7 60.6 65.1 68.5 69.8 69.9 72.3 80.7 78.9 9 Gross due to balances 22.8 32.4 28.3 28.5 27.6 30.6 29.8 29.4 31.5 32.7 30.7 28.5 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 22.9 3.9 -4.1 -3.3 -4.4 -7.0 -7.3 -8.1 -7.1 -8.8 -12.7 -11.8 11 Gross due from balances 32.5 48.1 49.5 50.2 52.6 53.4 54.1 53.9 53.6 54.8 57.4 55.8 12 Gross due to balances 55.4 52.0 45.4 46.9 48.3 46.4 46.7 45.8 46.5 45.9 44.7 44.0 Security RP borrowings 13 Seasonally adjusted' 64.0 70.0 69.0 69.1 69.3 71.9 68.5 75.2 74.4 77.8 81.8 83.5 14 Not seasonally adjusted 62.3 68.2 70.0 68.7 68.9 73.9 71.7 75.0 77.1 75.8 77.4 79.1 U.S. Treasury demand balances8 15 Seasonally adjusted 9.5 11.8 15.3 9.9 8.4 9.2 10.6 13.6 9.8 11.5 15.5 8.6 16 Not seasonally adjusted 9.0 11.2 15.4 10.8 8.3 8.2 12.4 16.5 7.9 10.9 16.6 10.6 Time deposits, $100,000 or more9 17 Seasonally adjusted 267.0 324.0 341.1 349.5 360.1 367.0 366.5 367.4 360.4 347.0 318.8 302.4 18 Not seasonally adjusted 272.4 330.3 340.0 344.6 350.5 359.2 361.6 364.7 361.5 353.6 325.0 309.8 IBF ADJUSTMENTS FOR SELECTED ITEMS10 19 Items 1 and 2 22.4 31.7 32.0 32.2 32.4 32.4 11111.....77777 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 21 Item 5 2222200000.....77777 2222299999.....33333 2222299999.....66666 2222299999.....88888 3333300000.....00000 3333300000.....00000 22 Item 7 33333.....11111 55555.....00000 55555.....00000 55555.....11111 55555.....11111 55555.....11111 23 Item 10 1111177777.....66666 2222244444.....33333 2222244444.....66666 2222244444.....77777 2222244444.....99999 2222244444.....99999 1. Commercial banks are those in the 50 states and the District of Columbia participations in pooled loans. Includes averages of daily figures for member with national or state charters plus agencies and branches of foreign banks, New banks and averages of current and previous month-end data for foreign-related York investment companies majority owned by foreign banks, and Edge Act institutions. corporations owned by domestically chartered and foreign banks. 4. Loans initially booked by the bank and later sold to affiliates that are still 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from held by affiliates. Averages of Wednesday data. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. 5. Averages of daily figures for member and nonmember banks. Includes averages of Wednesday data for domestically chartered banks and 6. Averages of daily data. averages of current and previous month-end data for foreign-related institutions. 7. Based on daily average data reported by 122 large banks. 3. Other borrowings are borrowings on any instrument, such as a promissory 8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at note or due bill, given for the purpose of borrowing money for the banking commercial banks. Averages of daily data. business. This includes borrowings from Federal Reserve Banks and from foreign 9. Averages of Wednesday figures. banks, term federal funds, overdrawn due from bank balances, loan RPs, and 10. Estimated effects of shifts of foreign assets from U.S. banking offices to international banking facilities (IBFs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banking Institutions A19 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1982 1983 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,300.7 1,315.4 1,313.2 1,318.8 1,337.1 1,343.0 1,347.0 1,370.4 1,370.8 1,373.7 11,,339922..88 2 Loans, excluding interbank 954.3 969.1 966.6 970.6 985.9 988.5 990.4 1,000.8 993.3 991.4 1,001.8 3 Commercial and industrial 341.9 348.7 346.4 346.2 354.4 355.8 355.4 357.9 355.6 356.3 358.6 4 Other 612.4 620.4 620.3 624.4 631.5 632.7 635.0 642.9 638.2 635.8 643.1 5 U.S. Treasury securities 111.5 113.4 113.4 113.7 115.0 119.4 122.2 129.0 136.0 141.4 150.5 6 Other securities 234.9 232.9 233.2 234.5 236.2 235.1 234.4 240.5 241.6 240.8 239.8 7 Cash assets, total 153.0 165.4 154.5 160.8 157.4 162.1 169.7 184.4 167.8 184.7 168.9 8 Currency and coin 20.0 20.1 20.5 20.3 20.4 20.5 19.0 23.0 20.4 20.3 19.9 9 Reserves with Federal Reserve Banks 21.7 18.2 25.1 26.1 17.0 23.5 22.0 25.4 23.9 25.3 20.5 10 Balances with depository institutions . 54.9 59.6 55.4 58.8 60.4 61.3 64.6 67.6 67.7 71.6 67.1 11 Cash items in process of collection ... 56.3 67.4 53.6 55.5 59.6 56.8 64.1 68.4 55.9 67.5 61.5 12 Other assets2 209.9 223.2 224.2 231.3 234.9 237.0 241.8 265.3 260.1 263.6 258.1 13 Total assets/total liabilities and capital ... 1,663.6 1,704.0 1,692.0 1,710.9 1,729.3 1,742.1 1,758.6 1,820.1 1,798.7 1,822.0 1,819.1 14 Deposits 1,244.0 1,284.8 1,266.4 1,279.1 1,290.7 1,300.2 1,316.9 1,361.8 1,340.6 1,368.3 1,374.3 15 Demand 315.4 345.2 314.4 315.5 323.0 326.5 338.1 363.9 324.0 337.9 333.4 16 Savings 227.6 228.9 227.1 229.5 230.9 238.2 244.9 296.4 361.5 395.2 419.3 17 Time 701.0 710.7 724.8 734.1 736.8 735.4 733.9 701.5 655.1 635.2 621.6 18 Borrowings 195.1 189.7 195.4 196.0 202.8 203.7 198.1 215.1 221.6 218.0 211.3 19 Other liabilities 93.9 96.6 99.1 103.9 103.4 106.2 109.3 109.2 106.4 106.0 103.4 20 Residual (assets less liabilities) 130.6 133.0 131.1 131.9 132.5 132.0 134.3 133.9 130.1 129.6 130.1 MEMO: 21 U.S. Treasury note balances included in borrowing 7.1 7.5 8.0 5.9 17.0 11.7 2.4 10.7 17.1 7.0 9.6 22 Number of banks 14,722 14,736 14,752 14,770 14,785 14,797 14,782 14,787 14,780 14,812 14,819 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,358.5 1,374.3 1,371.3 1,376.6 1,397.3 1,401.7 1,413.7 1,429.8 1,427.5 1,429.8 1,451.2 24 Loans, excluding interbank 1,007.6 1,023.7 1,020.8 1,024.7 1,042.4 1,042.3 1,052.1 1,054.9 1,044.8 1,042.3 1,054.6 25 Commercial and industrial 379.3 386.7 384.4 384.5 395.0 393.7 398.9 396.5 393.0 392.9 396.5 26 Other 628.3 637.0 636.4 640.2 647.4 648.6 653.2 658.4 652.4 650.0 658.1 27 U.S. Treasury securities 114.3 116.2 115.7 115.8 117.2 122.7 125.7 132.8 139.5 145.1 155.2 28 Other securities 236.6 234.4 234.8 236.1 237.7 236.7 235.9 242.1 243.2 242.4 241.5 29 Cash assets, total 167.7 180.3 169.3 176.2 173.7 178.7 181.2 200.7 183.7 200.5 185.5 30 Currency and coin 20.0 20.2 20.5 20.4 20.4 20.5 19.0 23.0 20.4 20.3 19.9 31 Reserves with Federal Reserve Banks 23.0 19.6 26.5 27.5 18.4 25.0 23.4 26.8 25.3 26.7 22.0 32 Balances with depository institutions . 67.3 72.2 67.8 71.8 74.2 75.3 74.4 81.4 81.1 84.9 81.0 33 Cash items in process of collection ... 57.3 68.4 54.6 56.5 60.6 57.8 64.3 69.4 56.9 68.6 62.6 34 Other assets2 285.9 300.0 299.4 306.8 310.3 313.9 323.3 341.7 333.2 330.2 325.7 35 Total assets/total liabilities and capital ... 1,812.1 1,854.7 1,840.1 1,859.6 1,881.3 1,894.2 1,918.2 1,972.2 1,944.4 1,960.4 1,962.4 36 Deposits 1,286.2 1,325.8 1,307.3 1,321.7 1,335.5 1,345.2 1,358.1 1,409.7 1,385.4 1,412.6 1,419.6 37 Demand 327.9 357.4 326.8 327.7 335.1 338.9 344.9 376.2 335.9 350.2 345.7 38 Savings 227.8 229.1 227.4 229.7 231.1 238.5 245.1 296.7 361.9 395.6 419.7 39 Time 730.4 739.3 753.1 764.3 769.2 767.8 768.0 736.7 687.7 666.8 654.2 40 Borrowings 255.3 253.2 260.0 260.0 267.6 268.3 267.0 278.3 283.5 276.0 269.8 41 Other liabilities 138.2 140.8 139.8 144.1 143.8 146.9 156.6 148.4 143.5 140.4 141.0 42 Residual (assets less liabilities) 132.5 134.9 133.0 133.8 134.4 133.9 136.6 135.8 132.0 131.5 131.9 MEMO: 43 U.S. Treasury note balances included in borrowing 7.1 7.5 8.0 5.9 17.0 11.7 2.4 10.7 17.1 7.0 9.6 44 Number of banks 15,235 15,235 15,271 15,289 15,311 15,330 15,318 15,329 15,332 15,366 15,376 1. Domestically chartered commercial banks include all commercial banks in NOTE. Figures are partly estimated. They include all bank-premises subsidiarthe United States except branches of foreign banks; included are member and ies and other significant majority-owned domestic subsidiaries. Data for domestinonmember banks, stock savings banks, and nondeposit trust companies. cally chartered commercial banks are for the last Wednesday of the month. Data 2. Other assets include loans to U.S. commercial banks. for other banking institutions are estimates made on the last Wednesday of the 3. Commercial banking institutions include domestically chartered commercial month based on a weekly reporting sample of foreign-related institutions and banks, branches and agencies of foreign banks, Edge Act and Agreement quarter-end condition report data. corporations, and New York State foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • April 1983 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures Account Feb. 9 Feb. 23 Mar. 2p Mar. 9p Mar. 23p 1 Cash items in process of collection 48,524 40,860 48,063 53,348 54,311 45,090 50,967 43,587 2 Demand deposits due from banks in the United States. 7,079 6,604 7,629 8,238 7,743 6,686 7,148 6,373 3 All other cash and due from depository institutions ... 35,750 34,195 34,519 37,542 37,128 32,276 34,130 33,903 4 Total loans and securities 662,890 653,301 657,855 650,137 665,408 660,512 658,624 653,772 Securities 5 U.S. Treasury securities 48,816 47,520 48,300 47,387 49,366 51,138 49,879 49,937 6 Trading account 10,139 8,794 9,246 8,209 9,344 10,648 9,152 9,625 7 Investment account, by maturity 38,677 38,726 39,054 39,178 40,022 40,490 40,727 40.312 8 One year or less 11,929 11,770 11,704 11,784 12,287 12,584 12,831 12,741 9 Over one through five years 23,965 24,138 24,604 24,598 25,090 25,212 25,244 24,973 10 Over five years 2.783 2,818 2,746 2,794 2,645 2,694 2,652 2,598 11 Other securities 83,015 81,131 81,484 81,470 81,848 81,712 80,924 80,829 12 Trading account 5,138 3,174 3,704 3,678 4,748 4,734 4,699 4,676 13 Investment account 77,877 77,957 77,780 77,792 77,100 76,978 76,225 76,153 14 U.S. government agencies 16,249 16,432 16,484 16,472 16,139 16,072 15,635 15,635 15 States and political subdivisions, by maturity 58,244 58,162 57,922 57,925 57,549 57,462 57,041 56,984 16 One year or less 7,188 7,121 7,012 7,130 6,995 7,064 6,739 6,724 17 Over one year 51,057 51,041 50,910 50,796 50,554 50,399 50,302 50,259 18 Other bonds, corporate stocks and securities 3,384 3,363 3,374 3,394 3,412 3.443 3,549 3,535 Loans 19 Federal funds sold1 43,106 41,682 44,493 39,144 44,901 44,604 42,036 37,221 20 To commercial banks 29,545 28,865 31,638 27,560 32,160 30,743 30,241 26,684 21 To nonbank brokers and dealers in securities 9,777 9,242 9,192 8,241 8,959 9,941 8,306 7,250 22 To others 3.784 3,575 3,664 3,343 3,782 3,920 3,489 3,286 23 Other loans, gross 501,262 496,293 496,898 495,483 502,695 496,481 499,207 499,187 24 Commercial and industrial 218,520 216,672 217,025 216,157 218,267 216,464 217,387 216,650 25 Bankers acceptances and commercial paper 5,651 4,255 4,368 4,310 4,573 4.444 4,749 4,357 26 All other 212,869 212,417 212,656 211,847 213,694 212,020 212,638 212,293 27 U.S. addressees 206,237 205,783 205,937 205,109 206,812 205,260 205,856 205,518 28 Non-U.S. addressees 6,632 6,634 6,719 6,738 6,883 6,760 6,782 6,776 29 Real estate 134,146 134,141 134,396 134,337 134,244 134,246 134,411 134,466 30 To individuals for personal expenditures 75,570 75,180 75,158 74,967 74,859 74,730 74,740 74,684 To financial institutions 31 Commercial banks in the United States 7,524 7,477 7,485 7,799 7,677 7,282 7,978 8,164 32 Banks in foreign countries 7,252 7,192 6,951 7,054 7,533 7,277 7,701 7,596 33 Sales finance, personal finance companies, etc. ... 10,255 10,129 10,220 10,133 10,490 10,104 10,174 10,413 34 Other financial institutions 16,117 16,279 16,290 15,930 16,071 15,959 15,795 15,890 35 To nonbank brokers and dealers in securities 7,131 5,823 5,817 5,146 8,571 6,928 7,181 6,899 36 To others for purchasing and carrying securities2 ... 2,627 2,593 2,581 2,598 2,580 2,563 2,563 2,669 37 To finance agricultural production 6,326 6,331 6,313 6,387 6,396 6,388 6,485 6,542 38 All other 15,794 14,475 14,661 14,975 16,007 14,538 14,792 15,212 39 LESS: Unearned income 5,520 5,490 5,482 5,473 5,361 5,364 5,356 5,331 40 Loan loss reserve 7,788 7,836 7,838 7,874 8,042 8,059 8,065 8,071 41 Other loans, net 487,953 482,967 483,578 482,136 489,293 483,058 485,786 485,785 42 Lease financing receivables 11,248 11,263 11,230 11,221 11,130 11,128 11,119 11,070 43 All other assets 146,240 147,161 146,441 144,816 146,927 147,126 146,764 142,769 44 Total assets 911,730 893,384 905,737 905,302 922,646 902,818 908,753 891,474 Deposits 45 Demand deposits 173,522 160,599 171,053 174,482 182,689 169,173 174,507 165,010 46 Mutual savings banks 729 638 704 654 720 630 822 569 47 Individuals, partnerships, and corporations 131,260 123,156 129,115 130,701 136,565 129,073 132,341 125,250 48 States and political subdivisions 5,729 4,829 4,918 4,994 5,530 4,498 5,074 5,356 49 U.S. government 1,212 1,075 2,360 1,224 2,580 1,073 2,536 2,015 50 Commercial banks in the United States 19,969 17,512 19,900 22,505 20,790 19,003 19,085 18,118 51 Banks in foreign countries 5,397 5,463 5,758 5,626 5,908 5,896 5,872 6,038 52 Foreign governments and official institutions 1,160 954 1,077 932 915 1,044 893 1,071 53 Certified and officers' checks 8,067 6,970 7,220 7,846 9,681 7,955 7,883 6,592 54 Time and savings deposits 416,778 417,466 416,398 415,704 415,774 414,208 413,433 414,958 55 Savings 147,936 151,336 153,802 155,703 159,109 161,339 162,988 163,626 56 Individuals and nonprofit organizations 134,466 136,648 139,002 140,257 143,467 145,403 147,065 147,685 57 Partnerships and corporations operated for profit . 12,301 13,428 13,516 14,177 14,390 14,719 14,677 14,793 58 Domestic governmental units 1,075 1,130 1,182 1,179 1,154 1,121 1,146 1,053 59 All other 94 130 102 90 98 96 100 95 60 Time 268,842 266,130 262,596 260,001 256,665 252,869 250,445 251,332 61 Individuals, partnerships, and corporations 232,829 230,043 226,810 224,307 221,850 218,520 216,564 217,274 62 States and political subdivisions 20,234 20,477 20,450 20,560 19,909 19,770 19,736 19,923 63 U.S. government 418 411 410 423 439 437 417 531 64 Commercial banks in the United States 11,120 11,086 10,882 10,813 10,676 10,292 9,947 9,892 65 Foreign governments, official institutions, and banks 4,240 4,112 4,044 3,898 3,791 3,850 3,782 3,712 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,982 185 2,911 1,360 3,268 264 67 Treasury tax-and-loan notes 9,484 3,346 3,186 7,585 7,381 7,041 8,437 68 All other liabilities for borrowed money3 162,222 164,225 165,875 165,879 171,681 170,440 168,806 160,698 69 Other liabilities and subordinated notes and debentures 88,417 88,162 87,042 85,193 83,929 81,846 82,193 82,793 70 Total liabilities 852,406 833,982 846,464 846,136 863,019 843,047 849,248 832,161 71 Residual (total assets minus total liabilities)4 59,324 59,402 59,273 59,166 59,627 59,770 59,505 59.313 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

Weekly Reporting Banks A21 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 1983 AAccccoouunntt Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. IP Mar. 9p Mar. 16p Mar. 23p Mar. 30P 1 Cash items in process of collection 45,652 38,400 44,996 50,044 50,974 42,590 48,067 40,953 46,744 ?. Demand deposits due from banks in the United States.. 6,365 6,008 7,046 7,424 7,086 6,081 6,580 5,744 6,247 3 All other cash and due from depository institutions .... 32,735 31,299 31,395 34,403 34,237 29,501 31,241 30,930 30,946 4 Total loans and securities 617,059 608,040 612,140 604,881 619,177 614,043 612,206 607,934 606,747 Securities 5 U.S. Treasury securities 44,862 43,508 44,078 43,142 45,007 46,680 45,332 45,448 44,673 6 Trading account 10,026 8,668 9,134 8,094 9,168 10,430 8,952 9,458 8,340 7 Investment account, by maturity 34,835 34,840 34,943 35,048 35,839 36,250 36,381 35,990 36,333 8 One year or less 10,458 10,300 10,178 10,263 10,680 10,903 11,053 11,008 11,293 9 Over one through five years 21,822 21,961 22,283 22,245 22,767 22,907 22,931 22,638 22,672 10 Over five years 2,556 2,579 2,482 2,540 2,392 2,440 2,397 2,344 2,367 11 Other securities 75,584 73,728 73,988 74,063 74,589 74,459 73,588 73,518 73,544 12 Trading account 4,970 3,023 3,438 3,507 4,576 4,580 4,475 4,506 4,529 13 Investment account 70,614 70,705 70,551 70,556 70,013 69,879 69,113 69,012 69,016 14 U.S. government agencies 14,800 14,992 15,056 15,030 14,744 14,668 14,228 14,226 14,168 15 States and political subdivisions, by maturity 52,686 52,618 52,393 52,414 52,149 52,061 51,650 51,576 51,658 16 One year or less 6,405 6,336 6,244 6,363 6,266 6,337 6,015 5,986 5,917 17 Over one year 46,281 46,282 46,149 46,051 45,883 45,723 45,635 45,589 45,741 18 Other bonds, corporate stocks and securities 3,128 3,095 3,101 3,112 3,120 3,151 3,235 3,210 3,189 Loans 19 Federal funds sold1 37,433 36,519 39,144 34,207 39,192 38,716 36,755 32,364 31,291 20 To commercial banks 24,581 24,315 26,994 23,251 27,051 25,606 25,570 22,398 21,261 21 To nonbank brokers and dealers in securities 9,124 8,684 8,548 7,684 8,414 9,273 7,787 6,736 6,797 22 To others 3,728 3,520 3,602 3,272 3,727 3,838 3,398 3,229 3,233 23 Other loans, gross 471,463 466,581 467,224 465,791 472,773 466,592 468,932 468,985 469,555 24 Commercial and industrial 207,346 205,490 205,883 205,004 206,886 205,073 205,936 205,196 204,984 25 Bankers acceptances and commercial paper 5,276 3,872 3,976 3,943 4,196 4,064 4,366 3,954 4,459 26 All other 202,070 201,618 201,907 201,061 202,690 201,009 201,570 201,242 200,525 27 U.S. addressees 195,540 195,083 195,286 194,422 195,911 194,351 194,886 194,569 193,831 2.8 Non-U.S. addressees 6,530 6,535 6,620 6,640 6,780 6,658 6,684 6,673 6,694 29 Real estate 126,216 126,207 126,481 126,407 126,251 126,246 126,358 126,407 126,487 30 To individuals for personal expenditures 67,206 66,856 66,831 66,676 66,594 66,486 66,492 66,451 66,526 To financial institutions 31 Commercial banks in the United States 7,341 7,304 7,290 7,569 7,493 7,098 7,613 7,804 7,112 32 Banks in foreign countries 7,174 7,122 6,880 6,987 7,455 7,205 7,613 7,528 7,486 33 Sales finance, personal finance companies, etc 10,088 9,965 10,057 9,969 10,325 9,934 9,996 10,235 10,332 34 Other financial institutions 15,508 15,677 15,697 15,336 15,474 15,365 15,171 15,275 15,432 35 To nonbank brokers and dealers in securities 7,091 5,797 5,793 5,108 8,535 6,899 7,155 6,868 8,117 36 To others for purchasing and carrying securities2 .... 2,394 2,356 2,346 2,353 2,334 2,327 2,326 2,430 2,435 37 To finance agricultural production 6,140 6,142 6,129 6,201 6,208 6,198 6,292 6,347 6,443 38 All other 14,958 13,666 13,837 14,180 15,216 13,759 13,980 14,445 14,200 39 LESS: Unearned income 4,899 4,868 4,860 4,852 4,752 4,754 4,746 4,718 4,727 40 Loan loss reserve 7,384 7,429 7,434 7,469 7,632 7,649 7,656 7,662 7,588 41 Other loans, net 459,181 454,285 454,930 453,469 460,389 454,188 456,531 456,6Q5 457,239 42 Lease financing receivables 10,848 10,863 10,831 10,823 10,732 10,731 10,723 10,674 10,665 43 All other assets 142,027 142,977 142,468 140,824 142,845 143,036 142,683 138,642 137,389 44 Total assets 854,686 837,588 848,876 848,400 865,052 845,983 851,502 834,878 838,738 Deposits 45 Demand deposits 160,854 148,875 158,576 162,025 169,692 157,217 162,080 152,929 161,222 46 Mutual savings banks 694 610 677 626 692 607 795 545 513 47 Individuals, partnerships, and corporations 121,511 113,869 119,478 121,161 126,724 119,645 122,724 115,988 120,762 48 States and political subdivisions 5,150 4,274 4,373 4,424 4,959 3,952 4,410 4,505 3,842 49 U.S. government 1,028 974 2,105 1,069 2,259 972 2,326 1,840 11,,889988 50 Commercial banks in the United States 18,287 16,113 18,262 20,784 18,995 17,520 17,526 16,692 1177,,221188 51 Banks in foreign countries 5,347 5,412 5,713 5,587 5,859 5,852 5,824 5,995 5,546 52 Foreign governments and official institutions 1,155 953 1,075 931 909 1,043 892 1,070 1,062 53 Certified and officers' checks 7,683 6,670 6,892 7,443 9,294 7,626 7,583 6,292 10,381 54 Time and savings deposits 388,757 389,232 388,042 387,129 387,052 385,500 384,538 386,026 386,243 55 Savings 136,904 140,046 142,368 144,165 147,281 149,364 150,896 151,509 152,278 56 Individuals and nonprofit organizations 124,510 126,593 128,849 130,016 132,972 134,781 136,307 136,919 137,396 57 Partnerships and corporations operated for profit .. 11,296 12,279 12,322 12,967 13,148 13,455 13,434 13,532 13,748 58 Domestic governmental units 1,008 1,050 1,100 1,098 1,070 1,040 1,064 975 1,020 59 All other 89 124 96 83 90 88 91 84 114 60 Time 251,853 249,185 245,674 242,964 239,771 236,136 233,642 234,517 233,964 61 Individuals, partnerships, and corporations 218,113 215,441 212,210 209,592 207,306 204,104 202,081 202,813 202,558 62 States and political subdivisions 18,274 18,436 18,429 18,545 17,879 17,764 17,720 17,873 17,788 63 U.S. government 349 339 333 333 334 332 317 430 430 64 Commercial banks in the United States 10,877 10,857 10,659 10,596 10,462 10,085 9,743 9,688 9,502 65 Foreign governments, official institutions, and banks 4,240 4,112 4,044 3,898 3,791 3,850 3,782 3,712 3,686 Liabilities for borrowed money 66 1,902 185 2,896 1,360 3,253 229 1,158 67 Treasury tax-and-loan notes 8,907 3,150 2,937 4,573 7,158 6,999 6,589 7,922 7,084 68 All other liabilities for borrowed money3 152,417 154,438 155,859 156,066 162,075 160,444 159,107 151,441 147,365 69 Other liabilities and subordinated notes and debentures 86,274 86,061 85,028 83,171 81,873 79,846 80,194 80,779 80,332 70 Total liabilities 799,111 781,940 793,338 792,964 809,210 790,005 795,760 779,326 783,404 71 Residual (total assets minus total liabilities)4 55,575 55,648 55,538 55,436 55,841 55,978 55,741 55,552 55,334 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

A20 Domestic Financial Statistics • April 1983 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2? Mar. 9f Mar. 16? Mar. 23f Mar. 30p 1 Cash items in process of collection 14,529 13,107 14,440 16,167 17,821 15,728 16,455 13,744 18,952 2 Demand deposits due from banks in the United States.. 1,235 1,367 1,420 1,637 1,246 1,066 1,172 1,011 1,064 i All other cash and due from depository institutions .... 8,845 6,445 7,463 7,508 7,420 6,936 7,622 6,154 5,884 4 Total loans and securities1 145,894 144,091 145,976 142,015 147,268 143,651 144,473 141,859 142,175 Securities U.S. Treasury securities2 6 7 Investment account, by maturity 9,024 9,036 9,156 9,126 9,288 9,252 9,215 8,745 8,860 8 One year or less 1,355 1,345 1,414 1,390 1,371 1,298 1,320 1,343 1,413 9 Over one through five years 7,138 7,160 7,285 7,277 7,357 7,345 7,309 6,891 6,935 10 Over five years 531 531 458 459 559 610 585 510 551111 11 1? Trading account2 13 Investment account 14,030 14,039 14,020 14,138 13,886 13,942 13,802 13,776 13,815 14 U.S. government agencies 1,495 1,495 1,503 1,513 1,447 1,447 1,436 1,435 1,444 15 States and political subdivisions, by maturity 11,745 11,758 11,742 11,852 11,658 11,717 11,586 11,567 11,585 16 One year or less 1,539 1,554 1,543 1,645 1,499 1,577 1,402 1,384 1,376 17 Over one year 10,206 10,204 10,199 10,207 10,159 10,139 10,184 10,183 10,209 18 Other bonds, corporate stocks and securities 790 786 775 774 782 778 780 774 786 Loans 19 Federal funds sold3 10,705 11,074 12,321 9,526 11,049 11,012 10,686 9,305 8,839 20 To commercial banks 4,309 5,032 6,155 4,394 5,074 5,200 5,576 4,694 4,160 21 To nonbank brokers and dealers in securities 4,327 4,140 4,206 3,434 4,027 4,106 3,475 3,118 3,019 22 To others 2,069 1,902 1,960 1,698 1,948 1,706 1,635 1,493 1,660 23 Other loans, gross 115,996 113,797 114,334 113,103 116,952 113,382 114,712 113,968 114,586 24 Commercial and industrial 61,418 60,537 60,710 59,797 60,182 59,497 59,626 59,120 59,295 25 Bankers acceptances and commercial paper 1,517 1,035 1,039 1,029 1,143 1,038 1,137 1,055 1,211 26 All other 59,900 59,502 59,671 58,768 59,039 58,458 58,489 58,065 58,084 27 U.S. addressees 58,514 58,099 58,270 57,370 57,518 57,001 57,006 56,549 56,525 28 Non-U.S. addressees 1,386 1,403 1.400 1,397 1,520 1,457 1,483 1,516 1,559 29 Real estate 18,906 18,909 19,035 19,146 19,015 19,099 19,164 19,222 19,264 30 To individuals for personal expenditures 11,480 11,449 11,451 11,428 11,420 11,427 1111,,442211 1111,,443344 1111,,446600 To financial institutions 31 Commercial banks in the United States 2,680 2,518 2,615 3,014 2,848 2,531 2,542 2,816 2,255 32 Banks in foreign countries 2,932 2,892 2,577 2,767 3,104 2,771 3,095 2,731 2,592 33 Sales finance, personal finance companies, etc 4,371 4,325 4,274 4,297 4,578 4,297 4,365 4,470 4,515 34 Other financial institutions 4,853 4,784 4,940 4,809 4,902 4,787 4,774 4,842 4,919 35 To nonbank brokers and dealers in securities 4,221 3,428 3,684 2,728 5,286 4,022 4,857 4,204 5,298 36 To others for purchasing and carrying securities4 .... 705 676 670 656 646 642 650 700 686 37 To finance agricultural production 417 419 416 419 408 436 461 469 480 38 All other 4,013 3,860 3,961 4,042 4,563 3,871 3,757 3,959 3,821 39 LESS: Unearned income 1,430 1,414 1,414 1,417 1,402 1,412 1,420 1,416 1,426 40 Loan loss reserve 2,431 2,441 2,442 2,463 2,505 2,524 2,523 2,518 2,498 41 Other loans, net 112,135 109,942 110,478 109,224 113,045 109,445 110,770 110,033 110,661 42 Lease financing receivables 2,045 2,046 2,041 2,031 2,018 2,017 2,018 2,018 2,008 43 All other assets5 62,187 60,661 61,024 62,002 62,695 63,646 62,150 58,937 56,502 44 Total assets 234,737 227,718 232,364 231,360 238,470 233,044 233,891 223,724 226,586 Deposits 45 Demand deposits 46,904 42,163 45,424 47,890 51,050 47,183 47,140 44,481 49,699 46 Mutual savings banks 332 275 317 292 314 275 461 257 179 47 Individuals, partnerships, and corporations 32,061 28,932 30,299 32,383 34,362 31,727 31,772 30,198 31,804 48 States and political subdivisions 996 751 606 669 782 654 667 704 574 49 U.S. government 201 225 551 267 535 243 689 518 555 50 Commercial banks in the United States 4,543 3,607 4,891 5,344 4,522 4,756 4,246 4,170 4,643 51 Banks in foreign countries 4,016 4,130 4.320 4,300 4,561 4,532 4,538 4,722 4,238 52 Foreign governments and official institutions 952 748 882 700 704 848 696 853 833 53 Certified and officers' checks 3,802 3,495 3,557 3,934 5,271 4,146 4,071 3,058 6,872 54 Time and savings deposits 75,939 75,916 75,993 75,675 76,349 75,173 74,484 74,560 74,760 55 Savings 20,608 21,438 22,080 22,686 23,412 23,936 24,476 24,878 25,310 56 Individuals and nonprofit organizations 19,046 19,394 20,230 20,431 21,128 21,704 22,222 22,612 23,053 57 Partnerships and corporations operated for profit .. 1,338 1,719 1,499 1,927 1.973 1,941 1,952 2,002 1,986 58 Domestic governmental units 215 285 306 292 263 244 253 215 199 59 All other 9 40 44 36 47 46 50 48 72 60 Time 55,331 54,479 53,913 52,989 52,937 51,238 50,008 49,682 49,450 61 Individuals, partnerships, and corporations 45,852 45,058 44,518 43,626 43,604 42,214 41,244 40,828 40,711 62 States and political subdivisions 2,246 2,345 2,339 2,364 2,337 2,280 2,248 2,281 2,271 63 U.S. government 95 86 86 86 81 78 73 83 81 64 Commercial banks in the United States 5,394 5,337 5,357 5,307 5,332 5,055 44,,888844 44,,994488 44,,887777 65 Foreign governments, official institutions, and banks 1,744 1,653 1,613 1,605 1,582 11,,661100 11,,555599 11,,554422 11,,551100 Liabilities for borrowed money 66 1,622 150 11,,330000 1,320 2 495 200 67 Treasury tax-and-loan notes 2,369 938 886688 1,438 2,038 1,978 1,949 2,252 1,994 68 All other liabilities for borrowed money6 54,774 55,681 55,956 54,403 55,998 57,642 56,130 51,260 49,542 69 Other liabilities and subordinated notes and debentures . 34,168 33,886 33,840 32,996 32,571 31,873 32,579 32,028 31,783 70 Total liabilities 215,776 208,734 213,382 212,402 219,326 213,850 214,777 204,780 207,778 71 Residual (total assets minus total liabilities)7 18,960 18,984 18,983 18,958 19,144 19,194 19,114 18,944 18,807 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. 4. Not a measure of equity capital for use in capital adequacy analysis or for other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A23 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1983 AAccccoouunntt Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. 2p Mar. 9p Mar. 16p Mar. 23p Mar. 30P BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 639,130 630,285 632,052 628,124 638,973 635,910 633,826 632,326 632,975 2 Total loans (gross) adjusted1 507,299 501,633 502,268 499,267 507,759 503,060 503,023 501,560 503,003 3 Demand deposits adjusted2 103,817 101,152 100,729 97,404 105,008 104,006 101,918 101,290 103,237 4 Time deposits in accounts of $100,000 or more 167,805 166,256 163,581 162,007 159,219 156,199 154,145 155,395 154,910 5 Negotiable CDs 118,226 116,981 114,713 113,297 111,311 108,466 106,400 107,372 107,072 6 Other time deposits 49,579 49,276 48,868 48,710 47,908 47,733 47,744 48,023 47,838 7 Loans sold outright to affiliates3 2,972 2,969 3,001 2,968 2,864 2,997 2,933 2,984 3,017 8 Commercial and industrial 2,318 2,326 2,357 2,327 2,282 2,357 2,322 2,366 2,390 9 Other 654 643 644 641 581 640 611 617 626 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 597,420 588,718 590,150 586,383 597,017 593,743 591,426 590,113 590,689 11 Total loans (gross) adjusted1 476,975 471,482 472,084 469,178 477,421 472,604 472,506 471,147 472,472 12 Demand deposits adjusted2 95,887 93,389 93,214 90,128 97,464 96,135 94,161 93,443 95,362 13 Time deposits in accounts of $100,000 or more 159,620 158,074 155,369 153,624 150,950 148,048 145,849 147,137 146,760 14 Negotiable CDs 113,694 112,471 110,126 108,704 106,794 104,099 101,884 102,966 102,695 15 Other time deposits 45,926 45,604 45,243 44,921 44,155 43,949 43,965 44,171 44,065 16 Loans sold outright to affiliates3 2,906 2,903 2,934 2,905 2,798 2,931 2,871 2,921 2,953 17 Commercial and industrial 2,266 2,276 2,306 2,277 2,233 2,306 2,275 2,323 2,345 18 Other 640 627 628 628 565 625 596 598 608 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted14 142,765 140,396 141,062 138,486 143,254 139,856 140,297 138,284 139,684 20 Total loans (gross) adjusted1 119,711 117,321 117,885 115,221 120,080 116,662 117,280 115,763 117,010 21 Demand deposits adjusted2 27,631 25,224 25,541 26,111 28,172 26,456 25,750 26,048 25,549 22 Time deposits in accounts of $100,000 or more 42,797 42,231 41,814 41,141 41,192 39,823 38,724 38,548 38,409 23 Negotiable CDs 32,089 31,554 31,243 30,813 30,832 29,541 28,525 28,398 28,382 24 Other time deposits 10,707 10,677 10,571 10,328 10,360 10,282 10,200 10,150 10,027 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, banks. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if 2. All demand deposits except U.S. government and domestic banks less cash not a 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

A46 Domestic Nonfinancial Statistics • April 1983 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Feb. 2 Feb. 9 Feb. 16 Feb. 23 Mar. IP Mar. 9p Mar. 16p Mar. 23P Mar. 30" 1 Cash and due from depository institutions. 7,093 7,013 7,210 6,954 7,232 7,560 7,409 7,199 7,448 2 Total loans and securities 42,944 42,184 41,562 41,218 42,716 42,911 43,418 43,767 43,530 3 U.S. Treasury securities 3,293 3,446 3,479 3,052 3,691 3,850 3,760 3,804 3,935 4 Other securities 885 882 887 888 890 903 907 908 901 5 Federal funds sold1 3,036 2,205 1,755 2,225 2,914 2,745 2,988 3,725 2,661 6 To commercial banks in United States .. 2,857 2,112 1,617 2,134 2,832 2,620 2,624 3,533 2,578 7 To others 179 92 138 91 82 125 364 193 83 8 Other loans, gross 35,729 35,650 35,442 35,054 35,221 35,412 35,761 35,330 36,033 9 Commercial and industrial 18,192 18,036 17,918 17,978 17,964 18,400 1188,,441122 1188,,441100 1188,,669922 10 Bankers acceptances and commercial paper 2,619 2,588 2,680 2,740 2,698 3,052 2,848 2,830 2,700 11 Allother 15,573 15,448 15,238 15,238 15,266 15,348 15,564 15,580 15,992 12 U.S. addressees 13,647 13,509 13,307 13,277 13,424 13,500 13,803 13,748 14,252 13 Non-U.S. addressees 1,926 1,939 1,931 1,960 1,843 1,848 1,761 1,832 1,739 14 To financial institutions 13,546 13,578 13,438 13,060 13,113 12,965 13,389 13,035 13,390 15 Commercial banks in United States... 10,476 10,590 10,593 10,288 10,256 10,196 10,547 9,882 10,175 16 Banks in foreign countries 2,512 2,415 2,276 2,210 2,273 2,186 2,274 2,583 2,656 17 Nonbank financial institutions 558 574 569 562 584 584 568 570 558 18 For purchasing and carrying securities .. 360 312 194 189 426 390 464 404 426 19 All other 3,630 3,723 3,892 3,827 3,718 3,657 33,,449966 33,,448811 33,,552244 20 Other assets (claims on nonrelated parties) 10,757 10,635 10,482 10,326 10,268 10,233 10,553 10,409 10,242 21 Net due from related institutions 14,906 13,918 14,112 12,960 13,462 13,456 13,573 11,990 12,854 22 Total assets 75,699 73,750 73,367 71,459 73,678 74,159 74,952 73,366 74,073 23 Deposits or credit balances2 23,848 23,620 22,775 23,003 23,359 23,157 23,287 23,788 2244,,111111 24 Credit balances 230 216 212 218 203 199 299 198 118888 25 Demand deposits 1,852 1,764 1,796 1,947 1,925 1,810 11,,887755 11,,669988 1,703 26 Individuals, partnerships, and corporations 761 747 795 866 845 821 900 817 800 27 Other 1,091 1,017 1,001 1,081 1,080 989 975 881 904 28 Total time and savings 21,765 21,640 20,767 20,838 21,230 2211,,114488 2211,,111133 2211,,889933 2222,,221199 29 Individuals, partnerships, and corporations 18,861 18,747 17,783 17,839 18,164 17,899 17,726 18,636 18,922 30 Other 2,904 2,893 2,985 2,999 3,066 3,248 3,387 3,256 3,297 31 Borrowings3 32,173 31,214 32,111 30,099 31,420 31,328 31,902 28,993 29,914 32 Federal funds purchased4 10,196 9,490 10,610 9,200 10,590 10,595 1111,,110044 88,,111177 88,,225555 33 From commercial banks in United States 9,084 8,083 9,054 7,738 8,922 9,171 9,442 6,351 6,402 34 From others 1,112 1,407 1,556 1,463 1,667 1,424 1,661 1,766 1,852 35 Other liabilities for borrowed money.... 21,977 21,724 21,501 20,898 20,830 20,733 20,799 20,876 21,660 36 To commercial banks in United States 19,598 19,407 19,240 18,502 18,421 18,250 18,359 18,414 19,242 37 To others 2,380 2,317 2,261 2,3% 2,409 2,483 2,440 2,462 2,418 38 Other liabilities to nonrelated parties 11,825 11,812 11,615 11,320 11,371 11,266 11,482 11,388 11,071 39 Net due to related institutions 7,853 7,105 6,866 7,037 7,528 8,408 8,280 9,196 8,977 40 Total liabilities 75,699 73,750 73,367 71,459 73,678 74,159 74,952 73,366 74,073 MEMO 41 Total loans (gross) and securities adjusted5 29,610 29,482 29,353 28,796 29,628 30,095 30,246 30,353 30,776 42 Total loans (gross) adjusted5 25,432 25,153 24,987 24,856 25,047 25,341 25,579 25,641 25,941 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 3. Borrowings from other than directly related institutions. United States. 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial LoansA ASeries discontinued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IPC Demand Deposits A25 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1981 1982 11997788 1199779922 11998800 DDeecc.. DDeecc.. DDeecc.. June3 Sept. Dec. Mar. June Sept. Dec. 1 All holders—Individuals, partnerships, and corporations 294.6 302.2 315.5 277.5 288.9 268.9 271.5 276.7 295.4 f 7 Financial business 27.8 27.1 29.8 1 28.2 28.0 27.8 28.6 31.9 35.5 3 Nonfinancial business 152.7 157.7 162.3 n.a. 148.6 154.8 138.7 141.4 142.9 151.7 4 Consumer 97.4 99.2 102.4 1 82.1 86.6 84.6 83.7 83.3 88.1 5 Foreign 2.7 3.1 3.3 1 3.1 2.9 3.1 2.9 2.9 3.0 6 Other 14.1 15.1 17.2 T 15.5 16.7 14.6 15.0 15.7 17.1 Weekly reporting banks 1981 1982 11997788 1199779944 11998800 DDeecc.. DDeecc.. DDeecc.. June3 Sept. Dec. Mar. June Sept. Dec. 7 All holders—Individuals, partnerships, and corporations 147.0 139.3 147.4 f 131.3 137.5 126.8 127.9 132.1 144.0 8 Financial business 19.8 20.1 21.8 n.a. 20.7 21.0 20.2 20.2 23.4 26.7 9 Nonfinancial business 79.0 74.1 78.3 1 71.2 75.2 67.1 67.7 68.7 74.2 10 Consumer 38.2 34.3 35.6 28.7 30.4 29.2 29.7 29.6 31.9 11 Foreign 2.5 3.0 3.1 1 2.9 2.8 2.9 2.8 2.7 2.9 12 Other 7.5 7.8 8.6 T 7.9 8.0 7.3 7.5 7.7 8.4 1. Figures include cash items in process of collection. Estimates of gross 3. Demand deposit ownership survey estimates for June 1981 are not available deposits are based on reports supplied by a sample of commercial banks. Types of due to unresolved reporting errors. depositors in each category are described in the June 1971 BULLETIN, p. 466. 4. 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 170 large commercial banks, each of which had total assets in domestic offices survey sample was reduced to 232 banks from 349 banks, and the estimation exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the procedure was modified slightly. To aid in comparing estimates based on the old May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership and new reporting sample, the following estimates in billions of dollars for estimates for these large banks are constructed quarterly on the basis of 97 sample December 1978 have been constructed using the new smaller sample; financial banks and are not comparable with earlier data. The following estimates in billions business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and of dollars for December 1978 have been constructed for the new large-bank panel; other, 15.1. financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5; other, 6.8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic NonfinancialS tatistics • April 1983 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1982 1983 IInnssttrruummeenntt 1977 1978 19791 1980 1981 Dec. Dec. Dec. Dec/ Dec/ Sept/ Oct/ Nov/ Dec.6r Jan/ Feb. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 65,051 83,438 112,803 124,374 165,455 172,054 169,386 165,110 166,917 165,705 168,675 Financial companies2 Dealer-placed paper3 2 Total 8,796 12,181 17,359 19,599 29,904 36,158 35,073 35,219 34,216 35,324 37,536 3 Bank-related (not seasonally adjusted) 2,132 3,521 2,784 3,561 66,,004455 5,924 5,791 6,232 2,516 2,660 2,604 Directly placed paper* 4 Total 40,574 51,647 64,757 67,854 81,715 80,209 79,533 78,290 84,204 82,978 85,020 5 Bank-related (not seasonally adjusted) 7,102 12,314 17,598 22,382 26,914 27,761 27,712 27,769 32,034 31,691 31,661 6 Nonfinancial companies5 15,681 19,610 30,687 36,921 53,836 55,687 54,780 51,601 48,497 47,403 46,119 Bankers dollar acceptances (not seasonally adjusted) 7 Total 25,450 33,700 45,321 54,744 69,226 73,818 75,811 77,125 79,543 77,529 Holder 8 Accepting banks 10,434 8,579 9,865 10,564 10,857 10,752 10,661 10,596 10,910 10,249 9 Own bills 8,915 7,653 8,327 8,963 9,743 9,370 9,399 9,455 9,471 9,067 10 Bills bought 1,519 927 1,538 1,601 1,115 1,382 1,262 1,140 1,439 1,182 Federal Reserve Banks 11 Own account 954 587 704 776 195 813 0 0 1,480 0 n a. 12 Foreign correspondents 362 664 1,382 1,791 1,442 1,139 1,080 992 949 965 13 Others 13,700 23,870 33,370 41,614 56,926 61,927 64,070 65,537 66,204 66,315 Basis 14 Imports into United States 6,378 8,574 10,270 11,776 14,765 16,075 16,511 16,716 17,683 15,803 15 Exports from United States 5,863 7,586 9,640 12,712 15,400 15,608 16,463 16,711 16,328 17,931 16 All other 13,209 17,540 25,411 30,257 39,061 42,136 42,837 43,699 45,532 43,794 1. A change in reporting instructions results in offsetting shifts in the dealer- 5. Includes public utilities and firms engaged primarily in such activities as placed and directly placed financial company paper in October 1979. communications, construction, manufacturing, mining, wholesale and retail trade, 2. Institutions engaged primarily in activities such as, but not limited to, transportation, and services. commercial, savings, and mortgage banking; sales, personal, and mortgage 6. Effective December 1, 1982, there was a break in the commercial paper financing; factoring, finance leasing, and other business lending; insurance series. The key changes in the content of the data involved additions to the underwriting; and other investment activities. reporting panel, the exclusion of broker or dealer placed borrowings under any 3. Includes all financial company paper sold by dealers in the open market. master note agreements from the reported data, and the reclassification of a large 4. As reported by financial companies that place their paper directly with portion of bank-related paper from dealer-placed to directly placed. investors. 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 Month Average rate 1981—Nov. 17 16.50- Aug. 2 15.00 1981—Oct 18.45 1982—July 17.00 16 14.50 Nov 16.84 Aug 20 16.50 18 14.00 Dec 15.75 Sept 24 16.00 23 13.50 Oct Dec. 1 15.75 Oct. 7 13.00 1982—Jan 15.75 14 12.00 Feb 16.56 Dec 1982—Feb. 18 17.00 Nov. 22 11.50 Mar 16.50 23 16.50 Apr 16.50 1983—Jan July 20 16.00 1983—Jan. 11 11.00 May 16.50 Feb 29 15.50 Feb. 28 10.50 June 16.50 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 1-6, 1982 Size of loan (in thousands of dollars) All Item sizes 1-24 25-49 50-99 100-499 500-999 an 1 d 0 o 0 v 0 e r SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 37,830,563 1,004,140 642,584 562,394 2,129,432 913,862 32,578,151 2 Number of loans 170,984 123,157 20,331 9,027 12,408 1,403 4,658 3 Weighted-average maturity (months) 1.2 3.6 3.6 4.1 4.8 3.2 .8 4 Weighted-average interest rate (percent per annum) .. 11.26 15.63 15.32 13.80 13.85 12.93 10.79 5 Interquartile range1 10.38-11.34 14.37-16.99 13.72-16.45 12.68-14.45 12.68-15.01 12.25-13.80 10.38-10.90 Percentage of amount of loans 6 With floating rate 26.4 32.5 39.5 70.8 65.4 65.0 21.6 7 Made under commitment 70.1 40.8 35.8 64.5 54.4 68.9 72.8 8 With no stated maturity 9.6 15.9 18.7 40.0 22.2 29.5 7.3 1-99 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 9 Amount of loans (thousands of dollars) 4,007,972 380,177 459,970 204,266 2,963,558 10 Number of loans 25,270 22,129 2,265 311 565 11 Weighted-average maturity (months) 46.2 43.9 26.4 45.3 49.6 12 Weighted-average interest rate (percent per annum) .. 12.24 15.17 13.98 13.02 11.54 13 Interquartile range1 10.68-13.55 13.80-16.65 13.50-14.94 12.55-13.88 10.62-12.68 Percentage of amount of loans 14 With floating rate 77.8 49.0 67.9 81.6 82.7 15 Made under commitment 76.1 44.1 32.4 69.6 87.5 1-24 25-49 50-99 500 and over CONSTRUCTION AND LAND DEVELOPMENT LOANS 16 Amount of loans (thousands of dollars) 1,433,072 157,866 179,347 85,282 531,567 479,010 17 Number of loans 25,255 16,181 4,750 1,278 2,806 241 18 Weighted-average maturity (months) 11.1 14.4 16.0 6.4 8.3 12.2 19 Weighted-average interest rate (percent per annum) .. 15.14 16.74 17.44 18.52 15.01 13.30 20 Interquartile range1 12.73-16.09 15.02-18.10 14.75-18.97 14.23-20.57 12.69-15.58 11.82-14.50 Percentage of amount of loans 21 With floating rate 56.6 27.8 27.2 34.9 47.4 91.1 22 Secured by real estate 71.6 75.0 85.6 92.8 69.2 64.3 23 Made under commitment 39.6 44.4 43.1 29.7 21.5 58.7 24 With no stated maturity 2.9 3.7 .4 4.8 2.1 4.0 Type of construction 25 1- to 4-family 43.3 74.8 64.2 72.2 56.7 5.2 26 Multifamily 12.1 1.5 18.8 7.6 4.6 22.2 27 Nonresidential 44.6 23.7 17.0 20.2 38.7 72.6 All sizes 1-9 10-24 25-49 50-99 100-249 250 and over LOANS TO FARMERS 28 Amount of loans (thousands of dollars) 1,457,533 158,122 234,089 169,062 282,570 200,860 412,831 29 Number of loans 67,611 40,418 15,969 5,177 4,206 1,304 536 30 Weighted-average maturity (months) 5.8 5.4 7.1 6.4 5.7 6.1 4.7 31 Weighted-average interest rate (percent per annum) .. 14.84 15.60 15.38 15.34 15.57 15.01 13.46 32 Interquartile range1 13.96-15.71 15.00-16.21 14.65-16.11 14.57-16.02 15.03-16.08 14.00-15.57 11.01-15.22 By purpose of loan 33 Feeder livestock 13.90 15.48 15.19 15.22 15.01 14.35 12.66 34 Other livestock 15.49 15.46 15.42 15.34 15.58 (2) (2) 35 Other current operating expenses 15.33 15.65 15.40 15.42 15.50 14.56 15.20 36 Farm machinery and equipment 15.68 15.53 15.16 15.76 (2) (2) (2) 37 Other 14.53 15.62 15.66 14.84 16.26 14.65 13.74 1. Interest rate range that covers the middle 50 percent of the total dollar NOTE. For more detail, see the Board's E.2 (111) statistical release, amount of loans made. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic NonfinancialS tatistics • April 1983 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 1983 1983, week ending IInnssttrruummeenntt 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Mar. 4 Mar. 11 Mar. 18 Mar. 25 Apr. 1 MONEY MARKET RATES 1 Federal funds12 13.36 16.38 12.26 8.95 8.68 8.51 8.77 8.44 8.59 8.57 8.75 8.88 Commercial paper3'4 2 1-month 12.76 15.69 11.83 8.53 8.19 8.30 8.56 8.16 8.44 8.51 8.68 9.04 3 3-month 12.66 15.32 11.89 8.51 8.17 8.34 8.52 8.10 8.38 8.48 8.68 8.95 4 6-month 12.29 14.76 11.89 8.50 8.15 8.39 8.48 8.07 8.33 8.45 8.67 8.90 Finance paper, directly placed3-4 5 1-month 12.44 15.30 11.64 8.35 8.03 8.25 8.48 8.07 8.34 8.47 8.60 8.87 6 3-month 11.49 14.08 11.23 8.18 7.96 8.24 8.35 8.01 8.20 8.34 8.52 8.66 7 6-month 11.28 13.73 11.20 8.20 7.97 8.26 8.35 8.02 8.21 8.33 8.51 8.66 Bankers acceptances4-5 8 3-month 12.72 15.32 11.89 8.54 8.19 8.36 8.54 8.10 8.43 8.52 8.77 8.84 9 6-month 12.25 14.66 11.83 8.50 8.19 8.41 8.52 8.10 8.39 8.48 8.76 8.85 Certificates of deposit, secondary market6 10 1-month 12.91 15.91 12.04 8.64 8.28 8.40 8.62 8.20 8.52 8.61 8.79 8.97 11 3-month 13.07 15.91 12.27 8.66 8.36 8.54 8.69 8.24 8.55 8.67 8.91 9.05 12 6-month 12.99 15.77 12.57 8.80 8.46 8.77 8.80 8.32 8.63 8.79 9.08 9.16 13 Eurodollar deposits, 3-month2 14.00 16.79 13.12 9.47 8.97 9.14 9.25 8.88 8.91 9.16 9.48 9.54 U.S. Treasury bills4 Secondary market1 14 3-month 11.43 14.03 10.61 7.94 7.86 8.11 8.35 7.97 8.25 8.31 8.55 8.64 15 6-month 11.37 13.80 11.07 8.16 7.93 8.23 8.37 7.97 8.25 8.35 8.57 8.67 16 1-year 10.89 13.14 11.07 8.23 8.01 8.28 8.36 7.98 8.27 8.37 8.55 8.60 Auction average8 17 3-month 11.506 14.077 10.686 8.013 7.810 8.130 8.304 7.944 8.205 8.256 8.434 8.680 18 6-month 11.374 13.811 11.084 8.225 7.898 8.233 8.325 7.948 8.171 8.264 8.535 8.705 1199 1100..774488 1133..115599 1111..009999 88..223344 88..000077 88..330088 88..442277 88..442277 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 12.05 14.78 12.27 8.91 8.62 8.92 9.04 8.59 8.93 9.05 9.28 9.34 9.65 22 2-year 11.77 14.56 12.80 9.66 9.33 9.64 9.66 9.27 9.61 9.66 9.83 9.89 '>3 9.70 9.95 24 3-year 11.55 14.44 12.92 9.88 9.64 9.91 9.84 9.48 9.78 9.83 10.03 10.06 25 5-year 11.48 14.24 13.01 10.22 10.03 10.26 10.08 9.76 10.03 10.08 10.26 10.28 26 7-year 11.43 14.06 13.06 10.49 10.36 10.56 10.31 9.97 10.24 10.30 10.51 10.53 27 10-year 11.46 13.91 13.00 10.54 10.46 10.72 10.51 10.25 10.51 10.52 10.60 10.62 28 20-year 11.39 13.72 12.92 10.62 10.78 11.03 10.80 10.60 10.84 10.85 10.84 10.84 29 30-year 11.30 13.44 12.76 10.54 10.63 10.88 10.63 10.47 10.66 10.67 10.67 10.68 Composite13 30 Over 10 years (long-term) 10.81 12.87 12.23 10.33 10.37 10.60 10.34 10.16 10.36 10.39 10.39 10.40 State and local notes and bonds Moody's series14 31 Aaa 7.85 10.43 10.88 9.34 9.00 8.80 8.42 8.30 8.45 8.40 8.45 8.50 32 Baa 9.01 11.76 12.48 10.80 10.98 10.59 10.05 9.90 10.15 10.05 10.05 10.10 33 Bond Buyer series15 8.59 11.33 11.66 9.96 9.50 9.58 9.20 9.04 9.22 9.19 9.15 9.38 Corporate bonds Seasoned issues16 34 All industries 12.75 15.06 14.94 13.02 12.90 13.02 12.71 12.70 12.75 12.74 12.71 12.69 35 Aaa 11.94 14.17 13.79 11.83 11.79 12.01 11.73 11.63 11.72 11.79 11.76 11.75 36 Aa 12.50 14.75 14.41 12.44 12.35 12.58 12.32 12.30 12.37 12.35 12.30 12.31 37 A 12.89 15.29 15.43 13.66 13.53 13.52 13.15 13.22 13.23 13.21 13.19 13.14 38 Baa 13.67 16.04 16.11 14.14 13.94 13.95 13.61 13.67 13.65 13.61 13.58 13.56 Aaa utility bonds17 39 12.74 15.56 14.41 11.84 12.05 12.08 11.70 11.57 11.72 11.82 40 Recently offered issues 12.70 15.56 14.45 11.91 11.84 12.09 11.74 11.65 11.76 11.77 11.74 11.79 MEMO: Dividend/price ratio18 41 Preferred stocks 10.60 12.36 12.53 11.20 11.23 11.13 10.86 11.05 10.83 10.71 10.95 10.78 42 Common stocks 5.26 5.20 5.81 4.93 4.79 4.74 4.59 4.57 4.56 4.66 4.58 4.56 1. Weekly and monthly figures are averages of all calendar days, where the five business days ending on the Monday following the date indicated. Beginning rate for a weekend or holiday is taken to be the rate prevailing on the preceding April 1, 1983, this rate determines the maximum interest payable in the following business day. The daily rate is the average of the rates on a given day weighted by two-week period on l-'/i year small saver certificates. (See table 1.16.) the volume of transactions at these rates. 12. Each biweekly figure is the average of five business days ending on the 2. Weekly figures are statement week averages—that is, averages for the Monday following the date indicated. Until March 31, 1983, the biweekly rate week ending Wednesday. determined the maximum interest rate payable in the following two-week period 3. Unweighted average of offering rates quoted by at least five dealers (in the on 2-1/2 year small saver certificates. (See table 1.16.) case of commercial paper), or finance companies (in the case of finance paper). 13. Unweighted averages of yields (to maturity or call) for all outstanding notes Before November 1979, maturities for data shown are 30-59 days, 90-119 days, and bonds neither due nor callable in less than 10 years, including several very low and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150— yielding "flower" bonds. 179 days for finance paper. 14. General obligations only, based on figures for Thursday, from Moody's 4. Yields are quoted on a bank-discount basis, rather than an investment yield Investors Service. basis (which would give a higher figure). 15. General obligations only, with 20 years to maturity, issued by 20 state and 5. Dealer closing offered rates for top-rated banks. Most representative rate local governmental units of mixed quality. Based on figures for Thursday. (which may be, but need not be, the average of the rates quoted by the dealers). 16. Daily figures from Moody's Investors Service. Based on yields to maturity 6. Unweighted average of offered rates quoted by at least five dealers early in on selected long-term bonds. the day. 17. Compilation of the Federal Reserve. Issues included are long-term (20 7. Unweighted average of closing bid rates quoted by at least five dealers. years or more). New-issue yields are based on quotations on date of offering; 8. Rates are recorded in the week in which bills are issued. those on recently offered issues (included only for first 4 weeks after termination 9. Yields are based on closing bid prices quoted by at least five dealers. of underwriter price restrictions), on Friday close-of-business quotations. 10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 18. Standard and Poor's corporate series. Preferred stock ratio based on a are read from a yield curve at fixed maturities. Based on only recently issued, sample of ten issues: four public utilities, four industrials, one financial, and one actively traded securities. transportation. Common stock ratios on the 500 stocks in the price index. 11. The figure for April 1 is the average Treasury rate for the five business days ending Thursday, March 31. Subsequent biweekly figures will be the average of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A29 1.36 STOCK MARKET Selected Statistics 1982 1983 IInnddiiccaattoorr 11998800 11998811 11998822 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 68.06 74.02 68.93 62.82 62.91 70.21 76.10 79.75 80.30 83.25 84.74 87.50 ? Industrial 78.64 85.44 78.18 71.37 70.98 80.08 86.67 90.76 92.00 95.37 97.26 100.61 3 Transportation 60.52 72.61 60.41 53.40 53.98 61.39 66.64 71.92 73.40 75.65 79.44 83.28 4 Utility 37.35 38.90 39.75 37.20 38.19 40.36 42.67 43.46 42.93 45.59 45.92 45.89 5 Finance 64.28 73.52 71.99 61.59 62.84 69.66 80.59 88.66 86.22 85.66 86.57 93.22 6 Standard & Poor's Corporation (1941-43 = 10)1 ... 118.71 128.05 119.71 109.38 109.65 122.43 132.66 138.10 139.37 145.13 146.80 151.88 7 American Stock Exchange (Aug. 31, 1973 = 100) 300.94 343.58 282.62 250.63 253.54 286.22 308.74 333.54 333.36 360.92 373.84 383.76 Volume of trading (thousands of shares) 8 New York Stock Exchange 44,867 46,967 64,617 54,530 76,031 73,710 98,508 88,431 76,463 88,463 85,026 82,694 9 American Stock Exchange 6,377 5,346 5,283 3,611 5,567 5,064 7,828 8,672 7,475 9,220 8,256 7,354 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 14,721 14,411 13,325 11,729 11,396 11,208 11,728 12,459 13,325 13,370 13,985 11 Margin stock3 14,500 14,150 12,980 11,470 11,150 10,950 11,450 12,170 12,980 13,070 13,680 12 Convertible bonds 219 259 344 258 245 257 277 288 344 299 304 13 Subscription issues 2 2 1 1 1 1 1 1 1 1 1 n a. Free credit balances at brokers4 14 Margin-account 2,105 3,515 5,735 4,410 4,470 4,990 5,520 5,600 5,735 6,257 6,195 15 Cash-account 6,070 7,150 8,390 6,730 7,550 7,475 8,120 8,395 8,390 8,230 7,960 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 14.0 37.0 21.0 44.0 30.0 27.0 21.0 20.0 21.0 18.0 18.0 18 40-49 30.0 24.0 24.0 23.0 26.0 26.0 24.0 21.0 24.0 23.0 20.0 19 50-59 25.0 17.0 24.0 13.0 18.0 20.0 22.0 25.0 24.0 25.0 27.0 n a. 20 60-69 14.0 10.0 14.0 9.0 12.0 12.0 16.0 15.0 14.0 16.0 16.0 21 70-79 9.0 6.0 9.0 6.0 8.0 8.0 9.0 10.0 9.0 9.0 10.0 22 80 or more 8.0 6.0 8.0 5.0 6.0 7.0 8.0 9.0 8.0 9.0 9.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 21,690 25,870 35,598 29,773 31,102 31,644 33,689 34,909 35,598 35,654 43,006 Distribution by equity status (percent) 24 Net credit status 47.8 58.0 62.0 59.0 60.0 61.0 61.0 62.0 62.0 57.0 66.0 n a. Debt status, equity of 25 60 percent or more 44.4 31.0 29.0 26.0 28.0 27.0 29.0 29.0 29.0 35.0 27.0 26 Less than 60 percent 7.7 11.0 9.0 14.0 12.0 12.0 10.0 9.0 9.0 8.0 7.0 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 2. Margin credit includes all credit extended to purchase or carry stocks or other collateral in the customer's margin account or deposits of cash (usually sales related equity instruments and secured at least in part by stock. Credit extended is proceeds) occur. end-of-month data for member firms of the New York Stock Exhange. 7. Regulations G, T, and U of the Federal Reserve Board of Governors, In addition to assigning a current loan value to margin stock generally, prescribed in accordance with the Securities Exchange Act of 1934, limit the Regulations T and U permit special loan values for convertible bonds and stock amount of credit to purchase and carry margin stocks that may be extended on acquired through exercise of subscription rights. securities as collateral by prescribing a maximum loan value, which is a specified 3. A distribution of this total by equity class is shown on lines 17-22. percentage of the market value of the collateral at the time the credit is extended. 4. Free credit balances are in accounts with no unfulfilled commitments to the Margin requirements are the difference between the market value (100 percent) brokers and are subject to withdrawal by customers on demand. and the maximum loan value. The term "margin stocks" is defined in the corresponding regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • April 1983 t.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1982 1983 AAccccoouunntt 11998800 11998811 May June July Aug. Sept. Oct. Nov. Dec.r Jan/ Feb.? Savings and loan associations 1 Assets 630,712 664,167 687,273 692,759 697,690 703,399 691,077 692,549 697,189 706,045 714,676 722,309 2 Mortgages 503,192 518,547 514,046 512,997 510,678 509,776 493,899 489,923 488,614 482,234 481,470 479,970 3 Cash and investment securities' 57,928 63,123 70,302 70,824 72,854 74,141 74,692 75,638 78,122 84,767 90,662 93,948 4 Other 69,592 82,497 102,925 108,938 114,158 119,482 122,486 126,988 130,453 139,044 142,544 148,388 5 Liabilities and net worth 630,712 664,167 687,273 692,759 697,690 703,399 691,077 692,549 697,189 706,045 714,676 722,309 6 Savings capital 511,636 525,061 535,215 538,667 539,830 542,648 547,628 547,112 548,439 566,189 582,918 591,249 7 Borrowed money 64,586 88,782 94,117 96,850 98,433 98,803 99,771 100,881 102,948 97,979 88 925 86,883 8 FHLBB 47,045 62,794 65,216 66,925 67,019 66,374 65,567 65,015 64,202 63,861 60,415 59,060 9 Other 17,541 25,988 28,901 29,925 31,414 32,429 34,204 35,866 38,746 34,118 28,510 27,823 10 Loans in process 8,767 6,385 6,766 7,116 7,250 7,491 8,084 8,484 8,967 9,934 10,453 10,971 11 Other 12,394 15,544 25,756 24,671 27,375 29,965 19,202 20,018 21,048 15,720 16,658 17,824 12 Net worth2 33,329 28,395 25,419 25,455 24,802 24,492 24,476 24,538 24,754 26,157 26,175 26,350 13 MEMO: Mortgage loan commitments outstanding3 16,102 15,225 16,622 16,828 15,924 16,943 17,256 18,407 19,682 18,054 19,453 22,096 Mutual savings banks4 14 Assets 171,564 175,728 174,952 175,225 175,683 172,901 173,487 172,908 172,287 174,204 174,720 Loans 15 Mortgage 99,865 99,997 96,334 96,364 96,282 94,498 94,382 94,261 94,017 94,452 93,883 16 Other 11,733 14,753 17,409 16,721 17,128 16,929 17,458 17,035 16,702 16,876 17,460 Securities 17 U.S. government5 8,949 9,810 9,968 10,217 10,058 9,675 9,404 9,219 9,456 9,685 10,244 18 State and local government 2,390 2,288 2,259 2,240 2,236 2,201 2,191 2,505 2,496 2,500 2,453 19 Corporate and other6 39,282 37,791 37,486 36,612 36,651 35,937 35,845 35,599 35,753 36,286 36,371 20 Cash 4,334 5,442 5,469 6,074 6,225 6,460 6,695 6,749 6,291 6,920 6,282 21 Other assets 5,011 5,649 6,027 6,997 7,104 7,192 7,514 7,540 7,572 7,485 8 ,062 n a. 22 Liabilities 171,564 175,728 174,952 175,225 175,683 172,901 173,487 172,908 172,287 174,204 174,720 23 Deposits 154,805 155,110 153,354 154,392 154,314 152,014 153,089 152,210 151,304 155,225 157,161 24 Regular7 151,416 153,003 151,253 152,167 151,969 149,736 150,795 149,928 149,167 152,735 154,918 25 Ordinary savings 53,971 49,425 47,895 47,977 47,580 46,901 47,496 48,520 49,208 56,548 41,962 26 Time 97,445 103,578 103,358 117,449 116,998 116,213 103,299 101,408 99,959 110,330 104,100 27 Other 2,086 2,108 2,101 2,225 2,345 2,278 2,294 2,283 2,137 2,490 2,243 28 Other liabilities 6,695 10,632 12,246 11,264 11,926 11,671 11,166 11,556 11,893 9,742 7,637 29 General reserve accounts 11,368 9,986 9,352 9,570 9,443 9,216 9,232 9,141 9,089 9,238 9,204 30 MEMO: Mortgage loan commitments outstanding8 1,476 1,293 998 1,010 992 1,056 1,217 1,281 1,400 1,285 1, 253 Life insurance companies 31 Assets 479,210 525,803 543,470 547,075 551,124 557,094 563,321 571,902 578,200 584,311 589,490 Securities 32 Government 21,378 25,209 27,835 28,243 28,694 30,263 30,759 31,791 32,682 34,558 35,567 33 United States9 5,345 8,167 10,187 10,403 10,774 12,214 12,606 13,538 14,370 16,072 16,731 34 State and local 6,701 7,151 7,543 7,643 7,705 7,799 7,834 7,871 7,935 8,094 8 ,225 35 Foreign10 9,332 9,891 10,105 10,197 10,215 10,250 10,319 10,382 10,377 10,392 10,611 n a. 36 Business 238,113 255,769 264,107 265,080 267,627 270,029 273,539 279,918 283,650 283,799 290,178 37 Bonds 190,747 208,098 217,594 219,006 221,503 221,642 223,783 226,879 229,101 228,220 233,380 38 Stocks 47,366 47,670 46,513 46,074 46,124 48,387 49,756 53,039 54,549 55,579 56,798 39 Mortgages 131,030 137,747 139,455 139,539 140,044 140,244 140,404 140,678 140,956 141,919 142,277 40 Real estate 15,063 18,278 19,713 19,959 20,198 20,176 20,268 20,293 20,480 21,019 20,922 41 Policy loans 41,411 48,706 50,992 51,438 51,867 52,238 52,525 52,751 52,916 53,114 53,239 42 Other assets 31,702 40,094 41,368 42,816 42,694 44,144 45,826 46,471 47,516 49,902 47,307 Credit unions 43 Total assets/liabilities and capital 71,709 77,682 82,858 84,107 84,423 85,102 86,554 88,144 89,261 88,844 44 Federal 39,801 42,382 45,077 45,705 45,931 46,310 47,076 47,649 48,272 49,642 45 State 31,908 35,300 37,781 38,402 38,492 38,792 39,478 40,495 40,989 39,203 46 Loans outstanding 47,774 50,448 49,556 49,919 50,133 50,733 51,047 50,934 50,936 51,053 n a. n a. 25,627 27,458 27,073 27,295 27,351 27,659 27,862 27,789 27,824 27,690 48 State 22,147 22,990 22,483 22,624 22,782 23,074 23,185 23,145 23,139 23,363 49 Savings 64,399 68,871 73,602 74,834 75,088 75,331 76,874 78,529 79,799 81,905 50 Federal (shares) 36,348 37,574 40,213 40,710 40,969 41,178 41,961 42,852 43,413 45,525 51 State (shares and deposits) 28,051 31,297 33,389 34,124 34,119 34,153 34,913 35,677 36,386 36,380 For notes see bottom of opposite page. 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 FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 1981 1982 1982 1983 11998800 11998811 11998822 H2 HI H2 Dec. Jan. Feb. U.S. budget 1 Receipts1 517,112 599,272 617,766 301,777 322,478 286,338 54,498 57,505 38,816 2 Outlays1-2 576,675 657,204 728,375 358,558 348,678 390,846 72,436 67,087 64,152 3 Surplus, or deficit (-) -59,563 -57,932 -110,609 -56,780 -26,200 -104,508 -17,938 -9,582 -25,336 4 Trust funds 8,801 6,817 5,456 -8,085 -17,690 -6,576 3,382 -3,623 -4,830 5 Federal funds3 -68,364 -64,749 -116,065 -48,697 -43,889 -97,934 -21,320 -5,959 -20,506 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -14,549 -20,769 -14,142 -8,728 -7,942 -4,923 -198 -271 -52 77 OOtthheerr44 303 -236 -3,190 -1,752 227 -2,267 33 -63 47 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -73,808 -78,936 -127,940 -67,260 -33,914 -111,699 -18,103 -9,916 -25,341 Source or financing 9 Borrowing from the public 70,515 79,329 134,993 54,081 41,728 119,609 29,895 6,419 17,919 10 Cash and monetary assets (decrease, or increase (-))' -355 -1,878 -11,911 -1,111 -408 -9,057 -13,002 2,179 7,496 11 Other6 3,648 1,485 4,858 14,290 -7,405 1,146 1,211 1,318 -74 MEMO: 12 Treasury operating balance (level, end of period) 20,990 18,670 29,164 12,046 10,999 19,773 19,773 17,502 10,006 13 Federal Reserve Banks 4,102 3,520 10,975 4,301 4,099 5,033 5,033 2,627 2,856 14 Tax and loan accounts 16,888 15,150 18,189 7,745 6,900 14,740 14,740 14,875 7,150 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold voluntary hospital insurance premiums, previously included in other insurance tranche drawing rights; loans to International Monetary Fund; and other cash and receipts, have been reclassified as offsetting receipts in the health function. monetary assets. 2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was 6. Includes accrued interest payable to the public; allocations of special reclassified from an off-budget agency to an on-budget agency in the Department drawing rights; deposit funds; miscellaneous liability (including checks outstandof Labor. ing) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S. 3. Half-year figures are calculated as a residual (total surplus/deficit less trust currency valuation adjustment; net gain/loss for IMF valuation adjustment; and fund surplus/deficit). profit on the sale of gold. 4. Other off-budget includes Postal Service Fund; Rural Electrification and Telephone Revolving Fund; and Rural Telephone Bank; it also includes petroleum SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. acquisition and transportation and strategic petroleum reserve effective Novem- Government." Treasury Bulletin, and the Budget of the United States Governber 1981. ment, Fiscal Year 1984. NOTES TO TABLE 1.37 10. Issues of foreign governments and their subdivisions and bonds of the 1. Holdings of stock of the Federal Home Loan Banks are included in "other International Bank for Reconstruction and Development. assets." 2. Includes net undistributed income, which is accrued by most, but not all, NOTE. Savings and loan associations: Estimates by the FHLBB for all associations. associations in the United States. Data are based on monthly reports of federally 3. Excludes figures for loans in process, which are shown as a liability. insured associations and annual reports of other associations. Even when revised, 4. The NAMSB reports that, effective April 1979, balance sheet data are not data for current and preceding year are subject to further revision. strictly comparable with previous months. Beginning April 1979, data are reported Mutual savings banks: Estimates of National Association of Mutual Savings on a net-of-valuation-reserves basis. Before that date, data were reported on a Banks for all savings banks in the United States. gross-of-valuation-reserves basis. Life insurance companies: Estimates of the American Council of Life Insurance 5. Beginning April 1979, includes obligations of U.S. government agencies. for all life insurance companies in the United States. Annual figures are annual- Before that date, this item was included in "Corporate and other." statement asset values, with bonds carried on an amortized basis and stocks at 6. Includes securities of foreign governments and international organizations year-end market value. Adjustments for interest due and accrued and for and, before April 1979, nonguaranteed issues of U.S. government agencies. differences between market and book values are not made on each item separately 7. Excludes checking, club, and school accounts. but are included, in total, in "other assets." 8. Commitments outstanding (including loans in process) of banks in New York Credit unions: Estimates by the National Credit Union Administration for a State as reported to the Savings Banks Association of the state of New York. group of federal and state-chartered credit unions that account for about 30 9. Direct and guaranteed obligations. Excludes federal agency issues not percent of credit union assets. Figures are preliminary and revised annually to guaranteed, which are shown in the table under "Business" securities. incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic NonfinancialS tatistics • April 1983 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Source or type year year year 11998811 1982 11998822 1983 1980 1981 1982 H2 HI H2 Dec. Jan. Feb. RECEIPTS 1 All sources1 517,112 599,272 617,766 301,777 322,478 286,338 54,498 57,505 38,816 2 Individual income taxes, net 244,069 285,917 297,744 147,035 150,565 145,676 24,946 34,151 20,544 3 Withheld 223,763 256,332 267,513 134,199 133,575 131,567 23,843 20,953 22,288 4 Presidential Election Campaign Fund ... 39 41 39 5 34 5 0 0 4 5 Nonwithheld 63,746 76,844 84,691 17,391 66,174 20,040 1,906 13,217 1,970 6 Refunds 43,479 47,299 54,498 4,559 49,217 5,938 804 18 3,717 Corporation income taxes 7 Gross receipts 72,380 73,733 65,991 31,056 37,836 25,661 9,402 2,394 2,115 8 Refunds 7,780 12,596 16,784 738 8,028 11,467 1,238 1,230 2,388 9 Social insurance taxes and contributions, net 157,803 182,720 201,498 91,592 108,079 94,278 15,776 17,071 13,797 10 Payroll employment taxes and contributions2 133,025 156,932 172,744 82,984 88,795 85,063 15,138 15,479 11,845 11 Self-employment taxes and contributions3 5,723 6,041 7,941 244 7,357 177 0 415 43 12 Unemployment insurance 15,336 15,763 16,600 6,355 9,809 6,857 264 789 1,553 13 Other net receipts14 3,719 3,984 4,212 2,009 2,119 2,181 373 387 356 14 Excise taxes 24,329 40,839 36,311 22,097 17,525 16,556 2,674 2,707 2,795 15 Customs deposits 7,174 8,083 8,854 4,661 4,310 4,299 724 485 503 16 Estate and gift taxes 6,389 6,787 7,991 3,742 4,208 3,445 572 553 349 17 Miscellaneous receipts5 12,748 13,790 16,161 8,441 7,984 7,891 1,643 1,374 1,101 OUTLAYS 18 All types1'6 576,675 657,204 728,375 358,558 346,286 390,846 72,436 67,087 64,152 19 National defense 135,856 159,765 187,418 87,421 93,154 100,419 18,141 16,297 16,567 20 International affairs 10,733 11,130 9,982 4,655 5,183 4,406 1,044 804 108 21 General science, space, and technology ... 5,722 6,359 7,070 3,388 3,370 3,903 838 487 610 22 Energy 6,313 10,277 4,674 4,394 2,814 2,059 362 296 330 2.3 Natural resources and environment 13,812 13,525 12,934 7,296 5,636 6,940 1.060 1,007 998 24 Agriculture 4,762 5,572 14,875 5,181 7,087 13,260 5,326 3,223 2,170 25 Commerce and housing credit 7,788 3,946 3,865 1,825 1,410 2,244 968 1,213 -559 26 Transportation ; 21,120 23,381 20,560 10,753 9,915 10,686 1,567 1,718 1,557 27 Community and regional development 10,068 9,394 7,165 4,269 3,193 4,186 638 504 405 28 Education, training, employment, social services 30,767 31,402 26,300 13,878 12,595 12,187 2,019 2,259 2,159 79 Health1 55,220 65,982 74,017 35,322 37,213 39,073 6,895 6,612 6,575 30 Income security6 193,100 225,101 248,343 129,269 112,782 133,779 24,263 23,010 22,812 31 Veterans benefits and services 21,183 22,988 23,955 12.880 10,865 13,241 3,202 837 2,063 32 Administration of justice 4,570 4,696 4,671 2,290 2,334 2,373 382 448 412 33 General government 4,505 4,614 4,726 2,311 2,410 2,322 451 337 345 34 General-purpose fiscal assistance 8,584 6,856 6,393 3,043 3,325 3,152 58 1,269 89 35 Net Interest' 52,458 68,726 84,697 39,950 41,880 44,948 6,611 7,616 8,416 36 Undistributed offsetting receipts8 -9,887 -16,509 -13,270 -9,564 -6,490 -8,333 -1,389 -849 -905 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous voluntary hospital insurance premiums, previously included in other insurance receipts. receipts, have been reclassified as offsetting receipts in the health function. 6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. reclassified from an off-budget agency to an on-budget agency in the Department 3. Old-age, disability, and hospital insurance. of Labor. 4. Federal employee retirement contributions and civil service retirement and 7. Net interest function includes interest received by trust funds. disability fund. 8. Consists of rents and royalties on the outer continental shelf and U.S. government contributions for employee retirement. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Government" and the Budget of the U.S. Government, Fiscal Year 1984. 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 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 936.7 970.9 977.4 1,003.9 1,034.7 1,066.4 1,084.7 1,147.0 1,201.9 2 Public debt securities 930.2 964.5 971.2 997.9 1,028.7 1,061.3 1,079.6 1,142.0 1.197.1 3 Held by public 737.7 773.7 771.3 789.8 825.5 858.9 867.9 925.6 987.7 4 Held by agencies 192.5 190.9 199.9 208.1 203.2 202.4 211.7 216.4 209.4 5 Agency securities 6.5 6.4 6.2 6.1 6.0 5.1 5.0 5.0 4.8 6 Held by public 5.0 4.9 4.7 4.6 4.6 3.9 3.9 3.7 3.7 7 Held by agencies 1.5 1.5 1.5 1.5 1.4 1.2 1.1 1.3 1.1 8 Debt subject to statutory limit 931.2 965.5 972.2 998.8 1,029.7 1,062.2 1,080.5 1,142.9 1,197.9 9 Public debt securities 929.6 963.9 970.6 997.2 1,028.1 1,060.7 1,079.0 J,141.4 1,196.5 10 Other debt1 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.5 1.4 11 MEMO: Statutory debt limit 935.1 985.0 985.0 999.8 1,079.8 1,079.8 1,143.1 1,143.1 1,290.2 1. Includes guaranteed debt of government agencies, specified participation NOTE. Data from Treasury Bulletin (U.S. Treasury Department), certificates, 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 1983 TTyyppee aanndd hhoollddeerr 11997788 11997799 11998800 11998811 Nov. Dec. Jan. Feb. Mar. 1 Total gross public debt 789.2 845.1 930.2 1,028.7 1,161.7 1,197.1 1,201.0 1,215.3 1,244.5 By type 2 Interest-bearing debt 782.4 844.0 928.9 1,027.3 1,160.5 1,195.5 1,199.6 1,213.7 1,243.0 3 Marketable 487.5 530.7 623.2 720.3 852.5 881.5 1 88.7 907.7 937.8 4 Bills 161.7 172.6 216.1 245.0 293.5 311.8 308.1 314.9 331.9 5 Notes 265.8 283.4 321.6 375.3 454.2 465.0 473.0 481.3 494.1 6 Bonds 60.0 74.7 85.4 99.9 104.7 104.6 107.6 111.5 11.4 7 Nonmarketable1 294.8 313.2 305.7 307.0 308.0 314.0 310.9 306.1 305.2 8 2.2 2.2 9 State and local government series 24.3 24.6 23.8 23.0 25.0 25.7 25.6 25.7 27.1 10 Foreign issues3 29.6 28.8 24.0 19.0 14.9 14.7 14.0 12.7 12.4 11 Government 28.0 23.6 17.6 14.9 12.5 13.0 12.7 11.4 11.1 12 Public 1.6 5.3 6.4 4.1 2.4 1.7 1.3 1.3 1.3 13 Savings bonds and notes 80.9 79.9 72.5 68.1 68.1 68.0 68.1 68.3 68.5 14 Government account series4 157.5 177.5 185.1 196.7 199.9 205.4 203.0 199.1 197.0 15 Non-interest-bearing debt 6.8 1.2 1.3 1.4 1.2 1.6 1.4 1.6 1.5 By holder5 16 U.S. government agencies and trust funds 170.0 187.1 192.5 203.3 203.9 209.4 17 Federal Reserve Banks 109.6 117.5 121.3 131.0 137.7 139.3 18 Private investors 508.6 540.5 616.4 694.5 848.2 19 Commercial banks 93.2 96.4 116.0 109.4 131.4 20 Mutual savings banks 5.0 4.7 5.4 5.2 n.a. 21 Insurance companies 15.7 16.7 20.1 19.1 34.8 22 Other companies 19.6 22.9 25.7 37.8 n.a. n a. n a. n a. 23 State and local governments 64.4 69.9 78.8 85.6 n a. n.a. Individuals 24 Savings bonds 80.7 79.9 72.5 68.0 68.3 25 Other securities 30.3 36.2 56.7 75.6 47.3 26 Foreign and international6 137.8 124.4 127.7 141.4 152.0 27 Other miscellaneous investors7 58.9 90.1 106.9 152.3 n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Data for Federal Reserve Banks and U.S. government agencies and trust tion Administration, depository bonds, retirement plan bonds, and individual funds are actual holdings; data for other groups are Treasury estimates. retirement bonds. 6. Consists of investments of foreign balances and international accounts in the 2. These nonmarketable bonds, also known as Investment Series B Bonds, United States. may be exchanged (or converted) at the owner's option for 1 l/i percent, 5-year 7. Includes savings and loan associations, nonprofit institutions, corporate marketable Treasury notes. Convertible bonds that have been so exchanged are pension trust funds, dealers and brokers, certain government deposit accounts, removed from this category and recorded in the notes category (line 5). and government sponsored agencies. 3. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners. NOTE. Gross public debt excludes guaranteed agency securities. 4. Held almost entirely by U.S. government agencies and trust funds. Data by type of security from Monthly Statement of the Public Debt of the United States (U.S. Treasury Department); data by holder from Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 DomesticN onfinancial Statistics • April 1983 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1982 1983 1983, week ending Wednesday IItteemm 11997799 11998800 11998811 Dec/ Jan/ Feb. Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Immediate delivery1 1 U.S. government securities 13,183 18,331 24,728 31,392 35,736 40,618 44,144 48,189 39,189 30,961 40,663 37,396 By maturity 2 Bills 7,915 11,413 14,768 18,478 19,443 20,355 21,292 23,747 21,572 17,511 21,009 19,283 i Other within 1 year 454 421 621 647 821 706 637 617 471 510 649 403 4 1-5 years 2,417 3,330 4,360 5,350 6,975 9,247 12,259 9,515 7,281 6,107 11,359 6,213 5 5-10 years 1,121 1,464 2,451 3,794 4,263 5,272 5,108 8,743 5,638 3,948 4,262 6,314 6 Over 10 years 1,276 1,704 2,528 3,124 4,234 5,038 4,847 5,566 4,227 2,886 3,384 5,183 By type of customer 7 U.S. government securities dealers 1,448 1, 484 1,640 2,156 2,219 1,905 2,141 2,401 11,,660000 11,,555566 22,,001111 11,,661177 8 U.S. government securities brokers 5,170 7,610 11,750 14,165 17,130 20,025 21,702 22,876 19,859 15,410 20,179 17,545 9 All others2 6,564 9,237 11,337 15,071 16,387 18,688 20,302 22,911 17,730 13,995 18,473 18,234 10 Federal agency securities 2,723 3,258 3,306 4,505 5,199 5,005 4,965 7,260 5,145 4,937 3,901 4,030 11 Certificates of deposit 1,764 2,472 4,477 4,347 4,747 4,404 4,824 5,107 3,734 3,948 3,570 3,431 12 Bankers acceptances A 1,807 2,446 2,827 2,598 3,109 2,938 2,271 2,324 2,381 2,049 13 Commercial paper T 6,128 6,915 7,911 7,806 88,,005555 88,,440099 77,,007777 77,,008866 77,,774411 77,,991166 Futures transactions3 14 Treasury bills 1 3,523 4,280 5,173 6,277 6,178 5,539 7,751 5,880 6,445 5,257 15 Treasury coupons n.a. n a. 1.330 1,529 1,672 2,086 2,529 2,543 2,339 2,045 2,204 1,984 16 Federal agency securities 1 234 254 169 236 281 293 257 383 119988 224411 Forward transactions4 17 U.S. government securities 1 365 1,082 1,035 1,699 1,525 1,243 847 1,670 2,427 1,514 18 Federal agency securities t 1,370 1,063 1,136 1,175 1,184 1,295 1,606 1,707 1,420 1,086 1. Before 1981, data for immediate transactions include forward transactions. from the date of the transaction for government securities (Treasury bills, notes, 2. Includes, among others, all other dealers and brokers in commodities and and bonds) 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 Transactions are market purchases and sales of U.S. government securities exchange in which parties commit to purchase or sell securities for delivery at a dealers reporting to the Federal Reserve Bank of New York. The figures exclude future date. allotments of, and exchanges for, new U.S. government securities, redemptions 4. Forward transactions are agreements arranged in the over-the-counter of called or matured securities, purchases or sales of securities under repurchase market in which securities are purchased (sold) for delivery after 5 business days agreement, reverse repurchase (resale), or similar contracts. 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing Averages of daily figures, in millions of dollars 1982 1983 1983, week ending Wednesday IItteemm 11997799 11998800 11998811 Dec. Jan. Feb. Feb. 9 Feb. 16 Feb. 23 Mar. 2 Mar. 9 Positions Net immediate1 1 U.S. government securities 3,223 4,306 9,033 14,814 14,670 14,174 13,244 11,111 16,919 17,074 16,566 2 Bills 3,813 4,103 6,485 8,732 9,953 10,534 10,257 8,972 11,896 10,789 13,273 i Other within 1 year -325 -1,062 -1,526 428 -230 -428 -584 -455 -283 -109 106 4 1-5 years -455 434 1,488 4,249 3,091 2,726 2,204 1,396 4,143 3,776 1,638 5 5-10 years 160 166 292 -36 -193 -291 -205 -589 -614 627 -263 6 Over 10 years 30 665 2,294 1,442 2,049 1,633 1,571 1,787 1,7F2 1,991 1,812 7 Federal agency securities 1,471 797 2,277 5,948 5,125 4,455 4,514r 4,935 4,2% 4,013 5,081 8 Certificates of deposit 2,794 3,115 3,435 6,850 6,180 5,683 5,969 5,184 5,443 6,093 6,293 9 Bankers acceptances 1,746 4,037 3,551 2,901 3,014 2,372 3,029 3,180 3,139 10 Commercial paper 2,658 3,157 3,436 2,892 3,267 2,410 22,,554433 33,,222299 33,,772222 Futures positions 11 Treasury bills -8,934 -4,913 -7,108 -3,221 -707' -3,325 -5,384 -6,704 -2,280 12 Treasury coupons n a. n.a. -2,733 -2,304 • -2,142 -1,217 -925r -1,220 -1,372 -1,980 -1,785 13 Federal agency securities 522 -335 -343 -134 -153 -155 -112 -177 --117799 Forward positions 14 U.S. government securities -603 -1,235 -1,397 -1,061 -1,041 -1,297 -1,060 -972 -970 15 Federal agency securities -451 -2,108 -2,329 -1,962 -2,039 -2,527 -1,689 -1,493 -1,695 Financing2 Reverse repurchase agreements 16 Overnight and continuing.... 14,568 29,053 27,038 24,136 24,808 25,253 24,205 20,862 17 Term agreements 32,048 61,639 49,013 49,425 51,467 48,935 47,569 49,319 Repurchase agreements4 18 Overnight and continuing.... 35,919 57,009 59,753 56,033 56,003 57,304 55,326 54,397 19 Term agreements 29,449 50,073 43,846 42,891 42,939 42,571 42,335 43,700 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A35 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1982 1983 AAggeennccyy 11997799 11998800 11998811 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Federal and federally sponsored agencies1 163,290 193,229 227,210 243,623 245,951 244,599 243,535 247,119 247,887 245,108 2 Federal agencies 24,715 28,606 31,806 32,280 32,606 32,713 32,772 33,055 33,018 33,045 3 Defense Department2 738 610 484 399 388 377 364 354 346 336 4 Export-Import Bank3 4 9,191 11,250 13,339 13,918 14,042 14,000 13,999 14,218 14,267 14,255 5 Federal Housing Administration5 537 477 413 345 335 323 311 288 282 281 6 Government National Mortgage Association participation certificates6 2,979 2,817 2,715 2,165 2,165 2,165 2,165 2,165 2,165 2,165 7 Postal Service7 1,837 1,770 1,538 1,471 1,471 1,471 1,471 1,471 1,471 1,471 8 Tennessee Valley Authority 8,997 11,190 13,115 13,775 14,010 14,185 14,270 14,365 14,365 14,415 9 United States Railway Association7 436 492 202 207 195 192 192 194 122 122 10 Federally sponsored agencies' 138,575 164,623 195,404 211,343 213,345 212,886 210,763 214,064 214,869 212,063 11 Federal Home Loan Banks 33,330 41,258 58,090 61,747 61,251 60,904 60,356 61,447 59,969 58,380 12 Federal Home Loan Mortgage Corporation 2,771 2,536 2,604 3,099 3,000 3,000 3,000 3,000 3,000 2,460 13 Federal National Mortgage Association 48,486 55,185 58,749 65,733 68,130 67,916 66,852 70,052 72,247 72,221 14 Federal Land Banks 16,006 12,365 9,717 7,652 7,652 6,813 6,813 6,813 5,802 5,802 15 Federal Intermediate Credit Banks 2,676 1,821 1,388 926 926 926 926 926 926 926 16 Banks for Cooperatives 584 584 220 220 220 220 220 220 220 220 17 Farm Credit Banks1 33,216 48,153 60,034 65,657 65,553 66,449 65,877 65,014 66,360 65,796 18 Student Loan Marketing Association 1,505 2,720 4,600 6,307r 6,61 lr 6,657 6,718 6,591 6,404 66,,225577 19 Other 1 1 2 2 2 1 1 1 1 11 MEMO: 20 Federal Financing Bank debt1'8 67,383 87,460 110,698 122,623 124,357 125,064 125,707 126,424 126,587 126,623 Lending to federal and federally sponsored agencies 21 Export-Import Bank4 8,353 10,654 12,741 13,823 13,954 13,954 13,954 14,177 14,177 14,177 22 Postal Service7 1,587 1,520 1,288 1,221 1,221 1,221 1,221 1,221 1,221 1,221 23 Tennessee Valley Authority 7,272 9,465 11,390 12,050 12,285 12,460 12,545 12,640 12,640 12,690 24 United States Railway Association7 436 492 202 207 195 192 192 194 122 122 Other Lending9 25 Farmers Home Administration 32,050 39,431 48,821 53,311 53,736 53,661 53,661 53,261 53,056 52,431 26 Rural Electrification Administration 6,484 9,196 13,516 15,916 16,282 16,600 16,750 17,157 17,330 17,502 27 Other 9,696 13,982 18,140 21,095 21,684 26,976 27,384 27,774 28,041 28,480 1. In September 1977 the Farm Credit Banks issued their first consolidated and Urban Development; Small Business Administration; and the Veterans bonds, and in January 1979 they began issuing these bonds on a regular basis to Administration. replace the financing activities of the Federal Land Banks, the Federal Intermedi- 7. Off-budget. ate Credit Banks, and the Banks for Cooperatives. Line 17 represents those 8. The FFB, which began operations in 1974, is authorized to purchase or sell consolidated bonds outstanding, as well as any discount notes that have been obligations issued, sold, or guaranteed by other federal agencies. Since FFB issued. Lines 1 and 10 reflect the addition of this item. incurs debt solely for the purpose of lending to other agencies, its debt is not 2. Consists of mortgages assumed by the Defense Department between 1957 included in the main portion of the table in order to avoid double counting. and 1963 under family housing and homeowners assistance programs. 9. Includes FFB purchases of agency assets and guaranteed loans; the latter 3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. contain loans guaranteed by numerous agencies with the guarantees of any 4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. particular agency being generally small. The Farmers Home Administration item 5. Consists of debentures issued in payment of Federal Housing Administration consists exclusively of agency assets, while the Rural Electrification Administrainsurance claims. Once issued, these securities may be sold privately on the tion entry contains both agency assets and guaranteed loans. securities market. 6. Certificates of participation issued prior to fiscal 1969 by the Government National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing NOTES TO TABLE 1.43 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 a arranged to make delivery on short sales and those for which the securities commitment, that is, trade-date basis, including any such securities that have obtained have been used as collateral on borrowings, i.e., matched agreements. been sold under agreements to repurchase (RPs). The maturities of some 4. Includes both repurchase agreements undertaken to finance positions and repurchase agreements are sufficiently long, however, to suggest that the securi- "matched book" repurchase agreements. ties involved are not available for trading purposes. Securities owned, and hence dealer positions, do not include securities to resell (reverse RPs). Before 1981, NOTE. Data for positions are averages of daily figures, in terms of par value, data for immediate positions include forward positions. based on the number of trading days in the period. Positions are shown net and are 2. Figures cover financing involving U.S. government and federal agency on a commitment basis. Data for financing are based on Wednesday figures, in securities, negotiable CDs, bankers acceptances, and commercial paper. terms of actual money borrowed or lent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • April 1983 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1982 1983 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11997799 11998800 11998811 July Aug. Sept. Oct. Nov. Dec. Jan. 1 All issues, new and refunding1 43,365 48,367 47,732 5,583 6,510 6,497 8,260 9,850 9,085 3,485 Type of issue 2 General obligation 12,109 14,100 12,394 974 1,683 1,701 2,262 3,352 1,543 828 3 U.S. government loans2 53 38 34 22 25 30 30 34 37 0 4 Revenue 31,256 34,267 35,338 4,609 4,827 4,796 5,998 6,498 7,542 2,657 5 U.S. government loans2 67 57 55 49 52 54 57 57 62 0 Type of issuer 6 State 4,314 5,304 5,288 257 835 1,077 1,010 1,088 169 237 7 Special district and statutory authority 23,434 26,972 27,499 3,695 3,654 3,455 5,101 5,269 5,824 2,044 8 Municipalities, counties, townships, school districts 15,617 16,090 14,945 1,631 2,021 1,965 2,149 3,493 3,092 1,204 9 Issues for new capital, total 41,505 46,736 46,530 5,396 6,083 6,294 7,073 9,106 8,886 3,041 Use of proceeds 10 Education 5,130 4,572 4,547 293 516 830 532 716 810 352 11 Transportation 2,441 2,621 3,447 118 768 551 636 1,286 1,338 49 12 Utilities and conservation 8,594 8,149 10,037 1,272 685 283 1,335 1,961 1,830 954 13 Social welfare 15,968 19,958 12,729 2,705 2,500 2,542 2,619 2,204 2,963 754 14 Industrial aid 3,836 3,974 7,651 562 728 1,048 556 729 1,066 285 15 Other purposes 5,536 7,462 8,119 446 886 1,040 1,395 2,210 879 647 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. 1.46 NEW SECURITY ISSUES of Corporations Millions of dollars 1982 Type of issue or issuer, 11998800 11998811'' 11998822'' or use June July Aug. Sept. Oct. Nov. Dec. 1 All issues' 73,694 69,991 83,788 4,928 6,222 9,318 8,247 9,989' 8,802 9,830 2 Bonds 53,206 44,642 53,226 3,228 3,934 6,553 5,762 7,121' 5,412 5,636 Type of offering 3 Public 41,587 37,653 43,428 2,398 2,868 5,546 5,308 6,426' 4,927 4,264 4 Private placement 11,619 6,989 9,798 830 1,066 1,007 454 695 485 1,372 Industry group 5 Manufacturing 15,409 12,325 13,307 462 1,638 1,602 1,730 2,044 2,138 1,204 6 Commercial and miscellaneous 6,693 5,229 5,681 343 493 1,202 481 417 523 565 7 Transportation 3,329 2,052 1,474 82 58 402 64 285 88 120 8 Public utility 9,557 8,963 12,155 761 717 934 1,021 1,663 1,246 944 9 Communication 6,683 4,280 2,265 176 84 1 205 311 208 115 372 10 Real estate and financial 11,534 11,793 18,344 1,403 944 2,208 2,156 2,504 1,302 2,431 11 Stocks2 20,489 25,349 30,562 1,700 2,288 2,765 2,485 2,868 3,390 4,194 Type 12 Preferred 3,631 1,797 5,113 67 644 622 522 611 573 421 13 Common 16,858 23,552 25,449 1,633 1,644 2,143 1,963 2,257 2,817 3,773 Industry group 14 Manufacturing 4,839 5,074 5,649 503' 187 717' 345 666 481 921' 15 Commercial and miscellaneous 5,245 7,557 7,770 317 615 375 742 640 1,024 693 16 Transportation 549 779 709 52 5 62 84 80 225 22 17 Public utility 6,230 5,577 7,517 277 331 759 1,003 620 752 742 18 Communication 567 1,778 2,227 17 % 495 4 33 14 1,361 19 Real estate and financial 3,059 4,584 6,690 534 1,054 357 307 829 894 455 1. Figures, which represent gross proceeds of issues maturing in more than one 2. Beginning in August 1981, gross stock offerings include new equity volume year, sold for cash in the United States, are principal amount or number of units from swaps of debt for equity. multiplied by offering price. Excludes offerings of less than $100,000, secondary offerings, undefined or exempted issues as defined in the Securities Act of 1933, SOURCE. Securities and Exchange Commission and the Board of Governors of employee stock plans, investment companies other than closed-end, intracorpo- the Federal Reserve System. rate transactions, and sales to foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1982 1983 IItteemm 11998811 11998822 July Aug. Sept. Oct. Nov. Dec. Jan/ Feb. INVESTMENT COMPANIES' 1 Sales of own shares2 20,596 45,675 3,304 4,322 4,709 5,668 5,815 5,291 8,095 6,115 2 Redemptions of own shares3 15,866 30,078 2,145 2,335 3,052 3,046 3,493 4,835 4,233 3,510 3 Net sales 4,730 15,597 1,159 1,987 1,657 2,622 2,322 456 3,862 2,605 4 Assets4 55,207 76,741 54,592 62,212 63,783 70,964 74,864 76,841 80,384 84,981 5 Cash position5 5,277 5,999 5,992 6,039 5,556 5,948 5,838 6,040 6,943 7,404 6 Other 49,930 70,742 48,600 56,173 58,227 65,016 69,026 70,801 73,441 77,577 1. Excluding money market funds. 5. Also includes all U.S. government securities and other short-term debt 2. Includes reinvestment of investment income dividends. Excludes reinvest- securities. ment 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 comprise substantially all open-end investment companies registered with the another in the same group. Securities and Exchange Commission. Data reflect newly formed companies after 4. Market value at end of period, less current liabilities. their initial offering of securities. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1981 1982 AAccccoouunntt 11998800 11998811 11998822 Q1 Q2 Q3 Q4 QL Q2 Q3 Q4P 1 Corporate profits with inventory valuation and capital consumption adjustment 181.6 190.6 161.5 200.3 185.1 193.1 183.9 157.1 155.4 166.2 167.5 2 Profits before tax 242.4 232.1 175.6 253.1 225.4 233.3 216.5 171.6 171.7 180.3 178.8 3 Profits tax liability 84.6 81.2 58.1 91.5 79.2 82.4 71.6 56.7 55.3 60.9 59.3 4 Profits after tax 157.8 150.9 117.5 161.6 146.2 150.9 144.9 114.9 116.3 119.4 119.4 5 Dividends 58.1 65.1 70.3 61.5 64.0 66.8 68.1 68.8 69.3 70.5 72.4 6 Undistributed profits 99.7 85.8 47.3 100.1 82.2 84.1 76.8 46.1 47.0 48.8 47.0 7 Inventory valuation -43.0 -24.6 -9.2 -35.5 -22.8 -23.0 -17.1 -4.4 -9.4 -10.3 -12.6 8 Capital consumption adjustment -17.8 -16.8 -4.9 -17.3 -17.5 -17.1 -15.5 -10.1 -6.9 -3.8 1.3 SOURCE. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic NonfinancialS tatistics • April 1983 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1981 1982 AAccccoouunntt 11997766 11997777 11997788 11997799 11998800 Q3 Q4 Ql Q2 Q3 1 Current assets 827.4 912.7 1,043.7 1,218.2 1,333.5 1,410.5 1,426.8 1,424.2 1,420.7 1,443.2 2 Cash 88.2 97.2 105.5 118.0 127.1 125.1 131.9 121.5 123.5 125.1 3 U.S. government securities 23.5 18.2 17.3 17.0 19.3 18.1 18.0 17.2 17.5 20.5 4 Notes and accounts receivable 292.9 330.3 388.0 461.1 510.6 542.0 536.2 537.9 534.6 536.9 5 Inventories 342.5 376.9 431.6 505.5 543.7 577.0 587.1 594.1 589.4 598.5 6 Other 80.3 90.1 101.3 116.7 132.7 148.3 153.6 153.6 155.8 162.3 7 Current liabilities 495.1 557.1 669.3 807.8 890.9 966.7 979.5 986.3 983.7 1,000.2 8 Notes and accounts payable 282.1 317.6 382.9 461.2 515.2 549.0 562.4 555.5 555.4 562.7 9 Other 213.0 239.6 286.4 346.6 375.7 417.7 417.1 430.9 428.3 437.5 10 Net working capital 332.4 355.5 374.4 410.5 442.6 443.7 447.3 437.9 437.0 443.1 11 MEMO: Current ratio1 1.671 1.638 1.559 1.508 1.497 1.459 1.457 1.444 1.444 1.443 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. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1981 1982 1983 IInndduussttrryy11 11998811 11998822 1199883311 Q4 QL Q2 Q3 Q4 Ql> Q2> 1 Total nonfarm business 321.49 316.43 310.92 327.83 327.72 323.22 315.79 302.77 302.25 302.20 Manufacturing 2 Durable goods industries 61.84 56.44 54.22 60.78 60.84 59.03 57.14 50.50 52.76 50.85 3 Nondurable goods industries 64.95 63.23 61.69 66.14 67.48 64.74 62.32 59.59 60.05 60.45 Nonmanufacturing 4 Mining 16.86 15.45 15.46 16.81 17.60 16.56 14.63 13.31 14.56 14.62 Transportation 5 Railroad 4.24 4.38 4.21 4.18 4.56 4.73 3.94 4.31 3.69 4.49 6 Air 3.81 3.93 3.33 4.82 3.20 3.54 4.11 4.85 3.71 3.64 7 Other 4.00 3.64 3.46 4.12 4.23 4.06 3.24 3.25 3.56 3.46 Public utilities 8 Electric 29.74 33.40 33.09 31.14 30.95 32.26 34.98 35.12 33.38 32.94 9 Gas and other 8.65 8.55 7.91 8.60 9.17 9.14 8.40 7.77 7.61 8.43 10 Trade and services 86.33 86.95 87.78 88.33 87.80 88.85 87.31 84.00 85.38 85.23 11 Communication and other2 41.06 40.46 39.78 42.92 41.89 40.33 39.73 40.06 37.55 38.09 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 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1981 1982 AAccccoouunntt 11997777 11997788 11997799 11998800 Q3 Q4 Q1 Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer 44.0 52.6 65.7 73.6 84.5 85.5 85.1 88.0 88.3 89.5 2 Business 55.2 63.3 70.3 72.3 76.9 80.6 80.9 82.6 82.2 81.0 Total 99.2 116.0 136.0 145.9 161.3 166.1 166.0 170.6 170.5 170.4 4 LESS: Reserves for unearned income and losses.... 12.7 15.6 20.0 23.3 27.7 28.9 29.1 30.2 30.4 30.5 Accounts receivable, net 86.5 100.4 116.0 122.6 133.6 137.2 136.9 140.4 140.1 139.8 6 Cash and bank deposits 2.6 3.5 1 7 Securities .9 1.3 \ 24.91 27.5 34.5 34.2 35.0 37.3 39.1 39.7 8 All other 14.3 17.3 J 9 Total assets 104.3 122.4 140.9 150.1 168.1 171.4 171.9 177.8 179.2 179.5 LIABILITIES 10 Bank loans 5.9 6.5 8.5 13.2 14.7 15.4 15.4 14.5 16.8 18.6 11 Commercial paper 29.6 34.5 43.3 43.4 51.2 51.2 46.2 50.3 46.7 45.8 Debt 12 Short-term, n.e.c 6.2 8.1 8.2 7.5 11.9 9.6 9.0 9.3 9.9 8.7 13 Long-term, n.e.c 36.0 43.6 46.7 52.4 50.7 54.8 59.0 60.3 60.9 63.5 14 Other 11.5 12.6 14.2 14.3 17.1 17.8 19.0 18.9 20.5 18.7 15 Capital, surplus, and undivided profits 15.1 17.2 19.9 19.4 22.4 22.8 23.3 24.5 24.5 24.2 16 Total liabilities and capital 104.3 122.4 140.9 150.1 168.1 171.4 171.9 177.8 179.2 179.5 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments receivable AAAccccccooouuunnntttsss rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuutttssstttaaannndddiiinnnggg 1982 1983 1982 1983 1982 1983 JJJaaannn... 333111,,, 111999888333111 Nov. Dec. Jan. Nov. Dec. Jan. Nov. Dec. Jan. 1 Total 80,830 -1,891 -571 1,030 22,319 20,031 22,808 24,210 20,602 21,778 2 Retail automotive (commercial vehicles) 12,734 430 142 269 1,330 1,036 1,230 900 894 961 3 Wholesale automotive 12,066 -1,416 -1,087 182 6,637 4,965 6,458 8,053 6,052 6,276 4 Retail paper on business, industrial, and farm equipment 27,852 -476 222 -41 1,297 1,420 11,,330088 11,,777733 11,,119988 11,,334499 5 Loans on commercial accounts receivable and factored commercial accounts receivable 8,993 -13 -350 501 11,310 10,493 12,286 11,323 10,843 11,785 6 All other business credit 19,185 -416 502 119 1,745 2,117 1,526 2,161 1,615 1,407 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Financial Statistics • April 1983 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1982 1983 IItteemm 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 83.4 90.4 94.6 91.4 95.0 99.1 97.9 91.8 88.9 88.4 2 Amount of loan (thousands of dollars) 59.2 65.3 69.8 66.5 71.6 74.4 75.6 67.6 65.4 66.6 3 Loan/price ratio (percent) 73.2 74.8 76.6 74.1 78.7 77.9 79.0 75.2 75.2 77.9 4 Maturity (years) 28.2 27.7 27.6 26.4 28.1 28.4 27.9 26.9 26.5 27.2 5 Fees and charges (percent of loan amount)2 2.09 2.67 2.95 2.87 3.04 2.74 2.76 2.98 2.46 2.78 6 Contract rate (percent per annum) 12.25 14.16 14.47 15.05 14.34 13.86 13.26 13.09 13.00 12.62 Yield (percent per annum) 7 FHLBB series5 12.65 14.74 15.12 15.68 14.98 14.41 13.81 13.69 13.49 13.16 8 HUD series4 13.95 16.52 15.79 15.40 15.05 13.95 13.80 13.62 13.44 13.18 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 13.44 16.31 15.31 14.61 14.03 12.99 12.82 12.80 12.87 12.65 10 GNMA securities6 12.55 15.29 14.68 14.51 13.57 12.83 12.66 12.60 12.06' 11.94 FNMA auctions7 14.11 16.70 15.78 1144..4433 1166..6644 1155..9955 1155..7788 1155..3366 1133..9922 1133..7755 1133..7722 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 55,104 58,675 66,031 67,810 68,841 69,152 70,126 71,814 73,106 73,555 14 FHA/VA-insured 37,365 39,341 39,718 39,922 39,871 39,523 39,174 39,057 38,924 38,768 15 Conventional 17,725 19,334 26,312 27,888 28,970 29,629 30,952 32,757 34,182 34,788 Mortgage transactions (during period) 16 Purchases 8,099 6,112 15,116 1,931 1,670 1,449 1,681 2,495 2,045 1,594 17 Sales 0 2 0 0 0 0 0 0 0 0 Mortgage commitments8 18 Contracted (during period) 8,083 9,331 22,105 1,820 1,482 1,426 2,795 3,055 2,006 785 19 Outstanding (end of period) 3,278 3,717 7,606 6,900 6,587 6,268 7,286 7,606 7,487 6,475 Auction of 4-month commitments to buy Government-underwritten loans 20 Offered 8,605.4 2,487.2 307.4 43.3 16.4 2.5 27.0 4.6 2.0 0 21 Accepted 4,002.0 1,478.0 104.3 5.7 0 0 0 0 0 0 Conventional loans 22 Offered 3,639.2 2,524.7 445.3 70.1 27.5 13.6 22.1 23.2 7.8 1.8 23 Accepted 1,748.5 1,392.3 237.6 42.9 0 8.9 11.4 15.3 0 0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 4,362 5,245 5,153 5,201 5,207 4,957 4,676 4,733 4,560 4,450 25 FHA/VA 2,116 2,236 1,921 2,216 2,225 1,016 1,012 1,009 1,004 1,000 26 Conventional 2,246 3,010 3,224 2,985 2,982 3,891 3,618' 3,724 3,556 3,450 Mortgage transactions (during period) 27 Purchases 3,723 3,789 23,671 2,529 1,799 2,000 1,917 3,916 1,479 1,688 28 Sales 2,527 3,531 24,164 2,619 1,923 2,197 2,182 3,798 1,641 1,756 Mortgage commitments10 29 Contracted (during period) 3,859 6,974 28,187 2,768 2,892 2,506 1,714 1,068 2,059 868 30 Outstanding (end of period) 447 3,518 7,549 9,318 10,211 10,572 10,407 7,549 8,098 7,238 1. Weighted averages based on sample surveys of mortgages originated by ing prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the major institutional lender groups. Compiled by the Federal Home Loan Bank prevailing ceiling rate. Monthly figures are unweighted averages of Monday Board in cooperation with the Federal Deposit Insurance Corporation. quotations for the month. 2. Includes all fees, commissions, discounts, and "points" paid (by the 7. Average gross yields (before deduction of 38 basis points for mortgage borrower or the seller) to obtain a loan. servicing) on accepted bids in Federal National Mortgage Association's auctions 3. Average effective interest rates on loans closed, assuming prepayment at the of 4-month commitments to purchase home mortgages, assuming prepayment in end of 10 years. 12 years for 30-year mortgages. No adjustments are made for FNMA commitment 4. Average contract rates on new commitments for conventional first mort- fees or stock related requirements. Monthly figures are unweighted averages for gages, rounded to the nearest 5 basis points; from Department of Housing and auctions conducted within the month. Urban Development. 8. Includes some multifamily and nonprofit hospital loan commitments in 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing addition to 1- to 4-family loan commitments accepted in FNMA's free market Administration-insured first mortgages for immediate delivery in the private auction system, and through the FNMA-GNMA tandem plans. secondary 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, assum- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A41 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1981 1982 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998800 11998811 11998822 Q3 Q4 Ql Q2 Q3 Q4 1 1,471,786 1,583,732 1,654,446 1,561,813 1,583,732 1,603,450 1,624,707 1,633,059 1,654,446 ? 1- to 4-family 986,979 1,060,633 1,104,528 1,047,799 1,060,633 1,071,462 1,082,971 1,089,504 1,104,528 3 Multifamily 137,134 141,442 148,218 140,243 141,442 143,812 145,559 145,399 148,218 4 Commercial 255,655 279,930 294,641 273,765 279,930 284,261 290,693 291,740 294,641 5 92,018 101,727 107,059 100,006 101,727 103,915 105,484 106,416 107,059 6 Major financial institutions 997,168 1,040,827 1,021,225 1,034,032 1,040,827 1,041,702 1,042,904 1,027,027 1,021,225 7 Commercial banks1 263,030 284,536 301,742 279,017 284,536 289,365 294,022 298,342 301,742 8 1- to 4-family 160,326 170,013 177,122 167,550 170,013 171,350 172,596 175,126 177,122 9 Multifamily 12,924 15,132 15,841 14,481 15,132 15,338 15,431 15,666 15,841 10 Commercial 81,081 91,026 100,269 88,588 91,026 94,256 97,522 99,050 100,269 11 Farm 8,699 8,365 8,510 8,398 8,365 8,421 8,473 8,500 8,510 1? Mutual savings banks 99,865 99,997 93,882 99,994 99,997 97,464 96,346 94,382 93,882 13 1- to 4-family 67,489 68,187 63,708 68,116 68,187 66,305 65,381 63,849 63,708 14 Multifamily 16,058 15,960 14,946 15,939 15,960 15,536 15,338 15,026 14,946 15 Commercial 16,278 15,810 15,200 15,909 15,810 15,594 15,598 15,479 15,200 16 Farm 40 40 28 30 40 29 29 28 28 17 Savings and loan associations 503,192 518,547 484,297 518,985 518,547 516,111 512,997 493,899 484,297 18 1- to 4-family 419,763 433,142 400,563 433,923 433,142 430,178 425,890 410,035 400,563 19 Multifamily 38,142 37,699 36,177 37,990 37,699 37,986 38,321 36,894 36,177 20 Commercial 45,287 47,706 47,557 47,072 47,706 47,947 48,786 46,970 47,557 71 Life insurance companies 131,081 137,747 141,304 136,036 137,747 138,762 139,539 140,404 141,304 V 1- to 4-family 17,943 17,201 16,975 17,376 17,201 17,086 16,451 16,865 16,975 73 Multifamily 19,514 19,283 19,107 19,441 19,283 19,199 18,982 18,967 19,107 ?4 Commercial 80,666 88,163 92,322 86,070 88,163 89,529 91,113 91,640 92,322 25 Farm 12,958 13,100 12,900 13,149 13,100 12,948 12,993 12,932 12,900 76 Federal and related agencies 114,300 126,112 139,291 121,772 126,112 128,721 131,485 134,449 139,291 77 Government National Mortgage Association... 4,642 4,765 4,556 4,382 4,765 4,438 4,669 4,110 4,556 78 1- to 4-family 704 693 683 696 693 689 688 682 683 29 Multifamily 3,938 4,072 3,873 3,686 4,072 3,749 3,981 3,428 3,873 30 Farmers Home Administration 3,492 2,235 1,785 1,562 2,235 2,469 1,335 947 1,785 31 1- to 4-family 916 914 783 500 914 715 491 302 783 3? Multifamily 610 473 218 242 473 615 179 46 218 33 Commercial 411 506 377 325 506 499 256 164 377 34 Farm 1,555 342 407 495 342 640 409 435 407 35 Federal Housing and Veterans Administration 5,640 5,999 5,947 6,005 5,999 6,003 5,908 5,362 5,947 36 1- to 4-family 2,051 2,289 2,097 2,240 2,289 2,266 2,218 2,130 2,097 37 Multifamily 3,589 3,710 3,850 3,765 3,710 3,737 3,690 3,232 3,850 38 Federal National Mortgage Association 57,327 61,412 71,814 59,682 61,412 62,544 65,008 68,841 71,814 39 1- to 4-family 51,775 55,986 66,500 54,227 55,986 57,142 59,631 63,495 66,500 40 Multifamily 5,552 5,426 5,314 5,455 5,426 5,402 5,377 5,346 5,314 41 Federal Land Banks 38,131 46,446 50,433 44,708 46,446 47,947 49,270 49,983 50,433 4? 1- to 4-family 2,099 2,788 3,077 2,605 2,788 2,874 2,954 3,029 3,077 43 Farm 36,032 43,658 47,356 42,103 43,658 45,073 46,316 46,954 47,356 44 Federal Home Loan Mortgage Corporation.... 5,068 5,255 4,756 5,433 5,255 5,320 5,295 5,206 4,756 45 1- to 4-family 3,873 4,018 3,494 4,166 4,018 4,075 4,042 3,944 3,494 46 Multifamily 1,195 1,237 1,262 1,267 1,237 1,245 1,253 1,262 1,262 47 Mortgage pools or trusts2 142,258 162,990 214,430 158,140 162,990 172,292 183,647 198,365 214,430 48 Government National Mortgage Association... 93,874 105,790 118,402 103,750 105,790 108,592 111,459 114,776 118,402 49 1- to 4-family 91,602 103,007 115,293 101,068 103,007 105,701 108,487 111,728 115,293 50 Multifamily 2,272 2,783 3,109 2,682 2,783 2,891 2,972 3,048 3,109 51 Federal Home Loan Mortgage Corporation.... 16,854 19,843 41,278 17,936 19,843 23,960 28,693 35,121 41,278 S? 1- to 4-family 13,471 16,605 46,903 14,401 16,605 21,781 27,193 35,686 46,903 53 Multifamily 3,383 3,955 8,825 3,535 3,955 4,964 6,056 7,568 8,825 54 Federal National Mortgage Association3 n.a. 717 14,450 n.a. 717 2,786 4,556 8,133 14,450 55 1- to 4-family n.a. 717 14,450 n.a. 717 2,786 4,556 8,133 14,450 56 Farmers Home Administration 31,530 36,640 40,300 36,454 36,640 36,955 38,939 40,335 40,300 57 1- to 4-family 16,683 18,378 20,005 18,407 18,378 18,740 19,357 20,079 20,005 58 Multifamily 2,612 3,426 4,344 3,488 3,426 3,447 4,044 4,344 4,344 59 Commercial 5,271 6,161 7,011 6,040 6,161 6,351 6,762 7,056 7,011 60 Farm 6,964 8,675 8,940 8,519 8,675 8,417 8,776 8,856 8,940 61 Individual and others4 218,060 253,808 279,500 247,869 253,803 260,735 266,671 273,218 279,500 62 1- to 4-family5 138,284 167,412 187,325 162,524 167,412 172,560 177,592 182,554 187,325 63 Multifamily 27,345 28,286 31,352 28,272 28,286 29,703 29,935 30,572 31,352 64 Commercial 26,661 30,558 31,905 29,761 30,558 30,085 30,656 31,381 31,905 65 Farm 25,770 27,547 28,918 27,312 27,547 28,387 28,488 28,711 28,918 1. Includes loans held by nondeposit trust companies but not bank trust NOTE. Based on data from various institutional and governmental sources, with departments. 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 of guaranteed by the agency indicated. nonfarm mortgage debt by type of property, if not reported directly, and 3. Outstanding balances on FNMA's issues of securities backed by pools of interpolations and extrapolations when required, are estimated mainly by the conventional mortgages held in trust. The program was implemented by FNMA in Federal Reserve. Multifamily debt refers to loans on structures of five or more October 1981. units. 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

A46 DomesticN onfinancial Statistics • April 1983 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1982 1983 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Amounts outstanding (end of period) 1 Total 313,472 331,697 344,798 333,285 334,971 337,469 336,473 338,372 344,798 343,355 341,545 By major holder 2 Commercial banks 147,013 147,622 152,069 147,559 148,438 149,801 149,528 149,651 152,069 150,906 150,257 3 Finance companies .... 76,756 89,818 94,322 93,353 93,207 93,357 92,541 93,462 94,322 95,080 93,859 4 Credit unions 44,041 45,954 47,253 45,698 46,154 46,846 46,645 46,832 47,253 47,150 47,833 5 Retailers2 28,448 29,551 30,202 26,710 26,751 26,829 27,046 27,639 30,202 28,859 27,734 6 Savings and loans 9,911 11,598 13,891 12,520 12,833 13,051 13,457 13,672 13,891 14,209 14,860 7 Gasoline companies ... 4,468 4,403 4,063 4,600 4,714 4,669 4,322 4,141 4,063 4,102 3,906 8 Mutual savings banks.. 2,835 2,751 2,998 2,845 2,874 2,916 2,934 2,975 2,998 3,049 3,096 By major type of credit 9 Automobile 116,838 125,331 130,227 128,110 128,051 128,856 128,375 129,299 130,227 129,090 129,081 1 1 1 2 0 1 Co D I m n i d m re ir e c e r t c c t l i o a p a l a n b p s a e n r ks.. . 2 6 3 6 5 1 , , , 3 2 5 0 3 3 3 3 6 2 5 3 8 3 4 , , , 0 3 7 8 7 0 1 5 6 2 3 58 5 3 , , , 8 1 6 5 7 7 1 8 3 2 3 5 3 7 4 , , , 8 4 3 8 9 8 2 3 9 3 2 5 4 7 3 , , , 3 9 6 4 9 4 5 2 7 3 5 2 8 4 3 , , , 5 7 8 4 2 1 2 8 4 3 2 5 4 8 3 , , , 7 5 8 4 5 0 4 2 8 3 5 2 8 4 3 , , , 7 8 8 0 8 1 1 4 7 3 5 2 8 5 3 , , , 8 1 6 5 7 7 1 8 3 57,74 ( ( 03 3 ) ) 57,97 ( ( 13 3 ) ) 13 Credit unions 21,060 21,975 22,596 21,852 22,071 22,402 22,306 22,395 22,596 22,066 48,724 14 Finance companies .. 34,242 45,275 48,780 48,376 47,988 47,921 47,518 48,203 48,780 49,284 22,386 15 Revolving 58,352 62,819 67,184 60,556 61,293 61,845 61,836 62,362 67,184 65,562 63,498 16 Commercial banks... 29,765 32,880 36,688 32,937 33,509 34,017 34,110 34,233 36,688 36,282 35,481 17 Retailers 24,119 25,536 26,433 23,019 23,070 23,159 23,404 23,988 26,433 25,178 24,111 18 Gasoline companies . 4,468 4,403 4,063 4,600 4,714 4,669 4,322 4,141 4,063 4,102 3,906 19 Mobile home 17,322 18,373 18,988 18,721 18,918 19,011 19,043 19,049 18,988 19,315 19,408 20 Commercial banks... 10,371 10,187 9,684 9,977 9,967 9,956 9,860 9,806 9,684 9,828 9,806 21 Finance companies .. 3,745 4,494 4,965 4,801 4,916 4,953 4,971 4,970 4,965 4,981 4,960 22 Savings and loans ... 2,737 3,203 3,836 3,458 3,544 3,604 3,716 3,775 3,836 3,984 4,112 23 Credit unions 469 489 503 486 491 498 496 498 503 522 530 24 Other 120,960 125,174 128,399 125,898 126,709 127,748 127,219 127,662 128,399 129,388 129,558 25 Commercial banks... 45,341 46,474 46,846 46,763 46,970 47,286 47,006 46,911 46,846 47,056 46,999 26 Finance companies .. 38,769 40,049 40,577 40,176 40,303 40,483 40,052 40,289 40,577 40,815 40,175 27 Credit unions 22,512 23,490 24,154 23,360 23,592 23,946 23,844 23,939 24,154 24,562 24,917 28 Retailers 4,329 4,015 3,769 3,691 3,681 3,670 3,642 3,651 3,769 3,681 3,623 29 Savings and loans ... 7,174 8,395 10,055 9,063 9,289 9,447 9,741 9,897 10,055 10,225 10,748 30 Mutual savings banks 2,835 2,751 2,998 2,845 2,874 2,916 2,934 2,975 2,998 3,049 3,096 Net change (during period)4 31 Total 1,448 18,217 13,096 839 256 1,256 -131 2,015 2,418 2,929 1,744 By major holder 32 Commercial banks -7,163 607 4,442 287 -21 688 73 457 1,111 410 788 33 Finance companies .... 8,438 13,062 4,504 152 -192 106 -372 1,051 1,024 1,881 -658 34 Credit unions -2,475 1,913 1,298 -47 157 255 38 412 197 224 923 35 Retailers2 329 1,103 651 246 -43 69 -67 -51 -91 -14 36 36 Savings and loans 1,485 1,682 2,290 190 263 200 274 181 201 412 677 37 Gasoline companies ... 739 -65 -340 -7 45 -88 -108 -35 -51 -78 -71 38 Mutual savings banks.. 95 -85 251 18 47 26 31 0 27 94 49 By major type of credit 39 Automobile 477 8,495 4,898 37 -380 349 -70 1,534 1,491 233 185 4 4 4 1 2 0 Co D I m n i d m re ir e c e r t c c t l i o a p a l a n p b s e a r n ks... - - - 3 2 5 , , , 1 7 8 0 2 3 4 6 0 - - 3 2 - , , 8 4 5 5 9 5 8 7 5 - 8 7 3 0 7 3 3 0 - 2 1 5 0 4 9 1 2 -1 -9 4 5 1 3 2 2 3 1 3 6 2 8 0 2 1 1 2 1 3 0 7 7 3 2 1 0 3 3 2 6 4 4 5 2 9 2 9 8 7 -58 ( ( 1 3 3 ) ) 3 ( ( 213 3 ) ) 43 Credit unions -1.184 914 622 -19 60 110 16 211 89 1,186 -569 44 Finance companies .. 7.491 11,033 3,505 -86 -349 -121 -223 987 875 -372 433 45 Revolving 1,415 4,467 4,365 558 199 311 81 39 501 68 -6 46 Commercial banks... -97 3,115 3,808 299 166 311 223 74 650 130 61 47 Retailers 773 1,417 897 266 -12 88 -34 0 -98 16 4 48 Gasoline companies . 739 -65 -340 -7 45 -88 -108 -35 -51 -78 -71 49 Mobile home 483 1,049 609 108 177 75 -35 23 -37 444 215 50 Commercial banks... -276 -186 -508 -16 -22 -6 -105 -47 -74 193 26 51 Finance companies .. 355 749 471 66 108 18 -9 5 -15 53 59 52 Savings and loans ... 430 466 633 57 89 60 78 61 49 175 120 53 Credit unions -25 20 14 1 2 3 1 4 3 23 10 54 Other -927 4,206 3,224 136 260 521 -107 419 463 2,184 1,350 55 Commercial banks... -960 1,133 372 -138 -74 23 -182 94 8 668 380 56 Finance companies .. 592 1,280 528 172 49 209 -140 59 164 642 -148 57 Credit unions -1,266 975 662 -29 95 142 21 197 105 573 480 58 Retailers -444 -314 -246 -20 -31 -19 -33 -51 7 -30 32 59 Savings and loans ... 1,056 1,217 1,657 133 174 140 196 120 152 237 557 60 Mutual savings banks 95 -85 251 18 47 26 31 0 27 94 49 1. The Board's series cover most short- and intermediate-term credit extended liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings, to individuals through regular business channels, usually to finance the purchase seasonally adjusted less outstandings of the previous period, seasonally adjusted. of consumer goods and services or to refinance debts incurred for such purposes, NOTE: Total consumer noninstallment credit outstanding—credit scheduled to and scheduled to be repaid (or with the option of repayment) in two or more be repaid in a lump sum, including single-payment loans, charge accounts, and installments. service credit—amounted to, not seasonally adjusted, $74.8 billion at the end of 2. Includes auto dealers and excludes 30-day charge credit held by travel and 1980, $80.6 billion at the end of 1981, and $85.9 billion at the end of 1982. entertainment companies. 3. Not reported after December 1982. • These data have been revised from December 1980 through December 1982. 4. For 1982 and earlier, net change equals extensions, seasonally adjusted less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A43 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT Percent unless noted otherwise 1982 1983 IItteemm 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks1 1 14.30 16.54 16.83 17.08 15.97 14.81 ~> 15.47 18.09 18.65 18.93 17.99 17.59 3 14.99 17.45 18.05 18.43 17.55 16.73 4 1177..3311 1177..7788 1188..5511 1188..7733 1188..7755 1188..8899 Auto finance companies 5 New car 14.82 16.17 16.15 17.87 17.35 16.66 12.82 12.57 12.25 12.05 6 Used car 19.10 20.00 20.75 20.93 20.89 20.76 20.68 20.63 20.20 19.91 OTHER TERMS3 Maturity (months) 7 New car 45.0 45.4 46.0 46.1 46.1 45.9 46.4 46.4 46.0 45.9 8 Used car 34.8 35.8 34.0 36.9 37.1 37.1 36.9 36.9 38.2 37.7 Loan-to-value ratio 9 New car 87.6 86.1 85.3 85.0 85.0 85.0 87.0 87.0 86.0 86.0 10 Used car 94.2 91.8 90.3 91.0 91.0 91.0 91.0 90.0 90.0 90.0 Amount financed (dollars) 11 New car 6,322 7,339 8.178 8,085 7,968 8,184 8,339 8,468 8,683 8,755 12 Used car 3,810 4,343 4,746 4,799 4,790 4,821 4,822 4,846 4,742 4,731 1. Data for midmonth of quarter only. 3. At auto finance companies. 2. Before 1983 the maturity for new car loans was 36 months, and for mobile home loans was 84 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic NonfinancialS tatistics • April 1983 1.57 FUNDS RAISED IN U. S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1980 1981 1982 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997777 11997788 11997799 11998800 11998811 11998822 HI H2 HI H2 HI H2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 317.7 368.6 388.8 355.0 391.1 408.1 325.1 384.9 402.7 379.6 365.1 451.1 By sector and instrument 2 U.S. government 56.8 53.7 37.4 79.2 87.4 161.3 63.3 95.1 81.9 92.9 99.3 223.3 3 Treasury securities 57.6 55.1 38.8 79.8 87.8 162.1 63.9 95.7 82.4 93.2 100.6 223.6 4 Agency issues and mortgages -.9 -1.4 -1.4 -.6 -.5 -.9 -.6 -.6 -.5 -.4 -1.4 -.4 5 Private domestic nonfinancial sectors 260.9 314.9 351.5 275.8 303.7 246.8 261.9 289.7 320.8 286.7 265.8 227.8 6 Debt capital instruments 169.8 198.7 216.0 204.1 175.0 168.3 203.8 204.4 196.5 153.5 157.5 179.2 7 Tax-exempt obligations 21.9 28.4 29.8 35.9 32.9 60.7 30.7 41.0 35.1 30.6 53.1 68.4 8 Corporate bonds 21.0 20.1 22.5 33.2 23.9 22.4 37.3 29.0 24.7 23.0 13.4 31.4 Mortgages 9 Home mortgages 94.3 112.1 120.1 96.7 78.6 55.6 96.5 96.9 95.2 62.0 54.8 56.5 10 Multifamily residential 7.1 9.2 7.8 8.8 4.6 7.9 8.1 9.5 5.1 4.1 8.5 7.4 N Commercial 18.4 21.7 23.9 20.2 25.3 16.3 20.3 20.1 27.4 23.2 22.2 10.3 12 Farm 7.1 7.2 11.8 9.3 9.8 5.3 10.9 7.8 9.0 10.5 5.4 5.2 13 Other debt instruments 91.1 116.2 135.5 71.7 128.8 78.5 58.1 85.4 124.3 133.2 108.3 48.6 14 Consumer credit 40.2 48.8 45.4 4.9 25.3 14.4 -3.3 13.0 29.4 21.2 14.4 14.4 15 Bank loans n.e.c 26.7 37.1 49.2 35.4 51.1 53.7 18.0 52.7 47.7 54.6 77.1 30.4 16 Open market paper 2.9 5.2 11.1 6.6 19.2 -1.3 20.3 -7.1 10.7 27.6 4.4 -7.0 17 Other 21.3 25.1 29.7 24.9 33.1 11.6 23.0 26.7 36.5 29.8 12.4 10.9 18 By borrowing sector 260.9 314.9 351.5 275.8 303.7 246.8 261.9 289.7 320.8 286.7 265.8 227.8 19 State and local governments 15.4 19.1 20.2 27.3 22.3 47.2 21.8 32.8 25.1 19.5 41.5 52.9 20 Households 137.3 169.3 176.5 117.5 120.4 85.1 115.2 119.8 141.0 99.9 83.6 86.6 21 Farm 12.3 14.6 21.4 14.4 16.4 9.3 15.7 13.0 19.9 12.8 8.4 10.2 22 Nonfarm noncorporate 28.3 32.4 34.4 33.8 40.5 28.2 27.5 40.2 41.8 39.3 34.9 21.5 23 Corporate 67.6 79.4 99.0 82.8 104.1 77.0 81.7 83.9 93.0 115.2 97.4 56.6 24 Foreign net borrowing in U.S 13.5 33.8 20.2 27.2 27.3 16.2 29.0 25.3 34.0 20.6 17.4 14.9 25 Bonds 5.1 4.2 3.9 .8 5.5 6.5 2.0 -.4 3.3 7.6 2.2 10.8 26 Bank loans n.e.c 3.1 19.1 2.3 11.5 3.7 -5.0 5.9 17.2 5.0 2.3 -.4 -9.7 27 Open market paper 2.4 6.6 U.2 10.1 13.9 9.5 15.7 4.5 20.6 7.1 12.5 6.4 28 U.S. government loans 3.0 3.9 2.9 4.7 4.3 5.2 5.4 4.0 5.0 3.6 3.2 7.2 29 Total domestic plus foreign 331.2 402.3 409.1 382.2 418.4 424.2 354.2 410.2 436.7 400.2 382.5 465.9 Financial sectors 30 Total net borrowing by financial sectors 48.8 75.0 80.7 61.3 80.7 64.3 57.6 65.0 85.8 75.5 93.3 35.2 By instrument 31 U.S. government related 21.9 36.7 47.3 43.6 45.1 60.6 47.3 39.8 42.5 47.8 59.3 61.8 32 Sponsored credit agency securities 7.0 23.1 24.3 24.4 30.1 13.2 27.1 21.7 26.9 33.3 21.4 5.0 33 Mortgage pool securities 16.1 13.6 23.1 19.2 15.0 47.4 20.2 18.1 15.6 14.5 3377..99 5566..88 34 Loans from U.S. government -1.2 35 Private financial sectors 26.9 38.3 33.4 17.7 35.6 3.7 10.3 25.2 43.4 27.8 34.0 -26.6 36 Corporate bonds 10.1 7.5 7.8 7.1 -.8 2.4 9.9 4.4 -2.1 .4 -3.4 8.2 37 Mortgages 3.1 .9 -1.2 -.9 -2.9 1.8 -5.3 3.5 -2.3 -3.5 1.9 1.6 38 Bank loans n.e.c -.3 2.8 -.4 -.4 2.2 1.4 .1 -.9 3.7 .7 5.9 -3.1 39 Open market paper 9.6 14.6 18.0 4.8 20.9 -2.7 -.1 9.7 24.8 17.0 16.0 -21.3 40 Loans from Federal Home Loan Banks 4.3 12.5 9.2 7.1 16.2 .8 5.8 8.5 19.3 13.2 13.8 -12.1 By sector 41 Sponsored credit agencies 5.8 23.1 24.3 24.4 30.1 13.2 27.1 21.7 26.9 33.3 21.4 5.0 42 Mortgage pools 16.1 13.6 23.1 19.2 15.0 47.4 20.2 18.1 15.6 14.5 37.9 56.8 43 Private financial sectors 26.9 38.3 33.4 17.7 35.6 3.7 10.3 25.2 43.4 27.8 34.0 -26.6 44 Commercial banks 1.1 1.3 1.6 .5 .4 1.4 .8 .3 .2 .5 .6 2 1 45 Bank affiliates 2.0 7.2 6.5 6.9 8.3 .8 5.8 8.0 6.9 9.7 9.7 -8.0 46 Savings and loan associations 9.9 14.3 11.4 6.6 13.1 -3.7 .1 13.2 19.2 6.9 16.6 -23.9 47 Finance companies 16.9 18.1 16.6 6.3 14.1 5.7 6.0 6.5 17.3 11.0 7.6 33..88 48 REITs -2.5 -1.4 -1.3 -2.2 .2 .1 -2.0 -2.5 .2 .2 .1 ..11 All sectors 49 Total net borrowing 379.9 477.4 489.7 443.5 499.1 488.5 411.8 475.2 522.5 475.7 475.8 501.1 50 U.S. government securities 79.9 90.5 84.8 122.9 132.6 222.0 110.7 135.1 124.5 140.7 158.7 285.2 51 State and local obligations 21.9 28.4 29.8 35.9 32.9 60.7 30.7 41.0 35.1 30.6 53.1 68.4 52 Corporate and foreign bonds 36.1 31.8 34.2 41.1 28.5 31.4 49.3 33.0 26.0 30.9 12.2 50.5 53 Mortgages 129.9 151.0 162.4 134.0 115.2 86.8 130.4 137.7 134.3 96.2 92.7 80.9 54 Consumer credit 40.2 48.8 45.4 4.9 25.3 14.4 -3.3 13.0 29.4 21.2 14.4 14.4 55 Bank loans n.e.c 29.5 59.0 51.0 46.5 57.0 50.1 24.0 69.0 56.4 57.6 82.5 17.6 56 Open market paper 15.0 26.4 40.3 21.6 54.0 5.5 35.9 7.2 56.2 51.8 32.8 -21.9 57 Other loans 27.4 41.5 41.8 36.6 53.7 17.7 34.1 39.2 60.7 46.6 29.4 6.0 External corporate equity funds raised in U.S. 58 Total new share issues 6.5 1.9 -3.8 22.1 -2.9 26.7 16.3 27.9 11.2 -17.0 16.3 37.1 59 Mutual funds .9 -.1 .1 5.0 7.7 19.5 5.5 4.5 8.9 6.5 14.5 24.5 60 All other 5.6 1.9 -3.9 17.1 -10.6 7.2 10.8 23.4 2.3 -23.5 1.8 12.6 61 Nonfinancial corporations 2.7 -.1 -7.8 12.9 -11.5 3.7 6.9 18.8 .9 -23.8 -.1 7.5 62 Financial corporations 2.5 2.5 3.2 2.1 .9 2.2 1.9 2.3 .8 1.0 2.2 2.2 Digitized for6 F3 RASFEorReig n shares purchased in U.S .4 -.5 .8 2.1 * 1.3 1.9 2.2 .7 -.7 -.2 2.9 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A45 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates 1980 1981 1982 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997777 11997788 11997799 11998800 11998811 11998822 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 317.7 368.6 388.8 355.0 391.1 408.1 325.1 384.9 402.7 379.6 365.1 451.1 By public agencies and foreign 2 Total net advances 79.2 101.9 74.6 95.8 95.9 115.7 104.6 87.0 98.7 93.2 92.1 139.3 3 34.9 36.1 -6.3 15.7 17.2 23.9 20.5 10.9 15.9 18.5 47.8 4 Residential mortgages 20.0 25.7 35.8 31.7 23.4 59.9 34.9 28.5 21.4 25.5 47.4 72.3 5 FHLB advances to savings and loans 4.3 12.5 9.2 7.1 16.2 .8 5.8 8.5 19.3 13.2 13.8 -12.1 6 Other loans and securities 20.1 27.6 35.9 41.3 39.1 31.1 43.4 39.1 42.1 36.0 30.9 31.3 Total advanced, by sector 7 U.S. government 10.0 17.1 19.0 23.7 24.2 18.9 24.6 22.8 27.1 21.2 14.0 23.8 8 Sponsored credit agencies 22.4 39.9 52.4 44.4 46.0 61.9 45.2 43.7 44.3 47.7 60.5 63.3 9 Monetary authorities 7.1 7.0 7.7 4.5 9.2 9.8 14.9 -5.9 -3.7 22.1 -6.3 25.9 10 Foreign 39.6 38.0 -4.6 23.2 16.6 25.1 19.9 26.5 30.9 2.2 24.0 26.3 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies & mortgage pools 21.9 36.7 47.3 43.6 45.1 60.6 47.3 39.8 42.5 47.8 59.3 61.8 12 Foreign 13.5 33.8 20.2 27.2 27.3 16.2 29.0 25.3 34.0 20.6 17.4 14.9 Private domestic funds advanced 13 Total net advances 273.9 337.1 381.8 329.9 367.6 369.1 296.9 362.9 380.5 354.7 349.8 388.5 14 U.S. government securities 45.1 54.3 91.1 107.2 115.4 198.0 90.2 124.2 108.5 122.3 158.7 237.4 15 State and local obligations 21.9 28.4 29.8 35.9 32.9 60.7 30.7 41.0 35.1 30.6 53.1 68.4 16 Corporate and foreign bonds 22.2 22.4 23.7 25.8 20.6 17.0 31.6 20.1 18.6 22.7 * 34.0 17 Residential mortgages 81.4 95.5 92.0 73.7 59.7 3.6 69.6 77.8 78.8 40.5 15.8 -8.6 18 Other mortgages and loans 107.6 149.1 154.3 94.4 155.3 90.6 80.6 108.3 158.7 151.8 135.9 45.3 19 LESS: Federal Home Loan Bank advances 4.3 12.5 9.2 7.1 16.2 .8 5.8 8.5 19.3 13.2 13.8 -12.1 Private financial intermediation 20 Credit market funds advanced by private financial institutions 261.7 302.9 292.2 257.9 301.3 254.7 245.4 270.4 326.3 276.3 277.8 231.7 21 Commercial banking 87.6 128.7 121.1 99.7 103.5 98.8 64.7 134.8 107.8 99.2 120.9 76.6 22 Savings institutions 81.6 73.6 55.5 54.1 24.6 24.2 34.9 73.2 43.9 5.3 29.7 18.7 23 Insurance and pension funds 69.0 75.0 66.4 74.4 75.8 87.7 84.3 64.4 75.8 75.8 87.6 87.9 24 Other finance 23.5 25.6 49.2 29.8 97.4 44.0 61.5 -1.9 98.8 95.9 39.5 48.4 25 Sources of funds 261.7 302.9 292.2 257.9 301.3 254.7 245.4 270.4 326.3 276.3 277.8 231.7 26 Private domestic deposits and RP's 138.9 141.1 142.5 167.8 211.2 161.9 162.5 173.1 212.0 210.3 158.4 165.5 27 Credit market borrowing 26.9 38.3 33.4 17.7 35.6 3.7 10.3 25.2 43.4 27.8 34.0 -26.6 28 Other sources 96.0 123.5 116.4 72.4 54.6 89.1 72.7 72.1 70.9 38.2 85.4 92.9 29 Foreign funds 1.2 6.3 25.6 -23.0 -8.8 -27.9 -20.0 -26.0 -.7 -16.8 -18.2 -37.6 30 Treasury balances 4.3 6.8 .4 -2.6 -1.1 4.5 -6.1 1.0 6.0 -8.2 -4.9 14.0 31 Insurance and pension reserves 51.4 62.2 49.1 65.4 70.8 77.9 70.3 60.5 66.0 75.6 77.7 78.0 32 Other, net 39.1 48.3 41.3 32.6 -6.4 34.6 28.6 36.6 -.4 -12.3 30.7 38.5 Private domestic nonfinancial investors 33 Direct lending in credit markets 39.0 72.5 122.9 89.7 101.9 118.1 61.7 117.7 97.5 106.2 106.0 130.2 34 U.S. government securities 24.6 36.3 61.4 38.3 50.4 60.1 23.3 53.3 43.0 57.7 58.8 61.4 35 State and local obligations -.8 3.6 9.4 12.6 20.3 47.5 6.2 18.9 22.8 17.8 41.8 53.2 36 Corporate and foreign bonds -5.1 -2.9 10.2 9.3 -7.9 -11.7 7.8 10.8 -9.2 -6.6 -26.4 3.2 37 Open-market paper 9.6 15.6 12.1 -3.4 3.5 -1.9 -8.1 1.4 -1.4 8.4 7.8 -11.6 38 Other 10.7 19.9 29.8 32.9 35.6 24.1 32.5 33.3 42.3 29.0 24.1 24.0 39 Deposits and currency 148.5 152.3 151.9 179.2 221.0 167.3 172.4 186.1 218.6 223.4 158.4 176.1 40 Currency 8.3 9.3 7.9 10.3 9.5 8.3 9.3 11.3 5.8 13.2 2.1 14.6 •il Checkable deposits 17.2 16.3 19.2 4.2 18.3 17.8 -2.5 11.0 26.5 10.1 8.6 26.9 •42 Small time and savings accounts 93.5 63.7 61.0 79.5 46.6 123.8 73.4 85.7 26.9 66.3 79.3 168.2 43 Money market fund shares .2 6.9 34.4 29.2 107.5 24.7 61.9 -3.4 104.1 110.8 39.4 10.1 44 Large time deposits 25.8 46.6 21.2 48.3 36.3 1.8 24.4 72.1 46.8 25.7 30.1 -26.5 45 Security RPs 2.2 7.5 6.6 6.5 2.5 -6.1 5.3 7.8 7.7 -2.6 1.0 -13.3 46 Deposits in foreign countries 1.3 2.0 1.5 1.1 .3 -3.0 .6 1.7 .8 -.2 -2.0 -3.9 47 Total of credit market instruments, deposits and currency 187.5 224.9 274.8 269.0 322.8 285.4 234.1 303.8 316.1 329.6 264.4 306.3 48 Public holdings as percent of total 23.9 25.3 18.2 25.1 22.9 27.3 29.5 21.2 22.6 23.3 24.1 29.9 49 Private financial intermediation (in percent) 95.6 89.9 76.5 78.2 82.0 69.0 82.7 74.5 85.8 77.9 79.4 59.6 50 Total foreign funds 40.8 44.3 21.0 .2 7.8 -2.8 * .5 30.3 -14.6 5.8 -11.4 MEMO: Corporate equities not included above 51 Total net issues 6.5 1.9 -3.8 22.1 -2.9 26.7 16.3 27.9 11.2 -17.0 16.3 37.1 52 Mutual fund shares .9 -.1 .1 5.0 7.7 19.5 5.5 4.5 8.9 6.5 14.5 24.5 53 Other equities 5.6 1.9 -3.9 17.1 -10.6 7.2 10.8 23.4 2.3 -23.5 1.8 12.6 54 Acquisitions by financial institutions 7.4 4.6 10.4 14.6 22.9 24.5 8.6 20.7 25.3 20.5 20.8 28.2 55 Other net purchases -.8 -2.7 -14.2 7.5 -25.8 2.2 7.7 7.2 -14.1 -37.5 -4.4 8.9 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line 1 of table 1.58. 33. Line 12 less line 20 plus line 27. 2. Sum of lines 3-6 or 7-10. 34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes 6. Includes farm and commercial mortgages. mortgages. 11. Credit market funds raised by federally sponsored credit agencies, and net 40. Mainly an offset to line 9. issues of federally related mortgage pool securities. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also 48. Line 2/line 1. sum of lines 28 and 47 less lines 40 and 46. 49. Line 20/line 13. 18. Includes farm and commercial mortgages. 50. Sum of lines 10 and 29. 26. Line 39 less lines 40 and 46. 51. 53. Includes issues by financial institutions. 27. Excludes equity issues and investment company shares. Includes line 19. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates. outstanding, may be obtained from Flow of Funds Section, Division of Research 30. Demand deposits at commercial banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 31. Excludes net investment of these reserves in corporate equities. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • April 1983 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1982 1983 MMeeaassuurree 11998800 11998811 11998822 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Industrial production1 147.0 151.0 138.6 138.8 138.4 137.3 135.7 134.9 135.2 137.2 137.6 139.1 Market groupings 2 Products, total 146.7 150.6 141.8 142.6 142.0 140.8 139.3 139.0 139.9 140.7 140.5 141.7 3 Final, total 145.3 149.5 141.5 142.5 141.2 140.0 138.7 138.3 139.5 140.0 139.6 140.5 4 Consumer goods 145.4 147.9 142.6 145.8 144.1 143.4 142.2 141.3 142.0 143.6 144.2 145.3 5 Equipment 145.2 151.5 139.8 138.0 137.3 135.2 134.0 134.2 136.1 135.2 133.3 134.0 6 Intermediate 151.9 154.4 143.3 142.8 144.7 143.7 141.6 141.8 141.5 143.3 143.9 146.2 7 Materials 147.6 151.6 133.7 133.0 132.8 132.0 130.0 128.4 127.8 131.7 133.2 135.0 Industry groupings 8 Manufacturing 146.7 150.4 137.6 138.1 138.0 137.1 135.0 134.0 134.5 136.6 137.4 139.2 Capacity utilization (percent)12 9 Manufacturing 79.1 78.5 69.8 70.0 69.8 69.2 68.0 67.4 67.5 67.1 67.7 69.4 10 Industrial materials industries 80.0 79.9 68.9 68.5 68.2 67.7 66.6 65.7 65.2 68.4 68.7 68.5 11 Construction contracts (1977 = 100)3 107.0 111.0 111.0 98.0 112.0 117.0 105.0 122.0 131.0 127.0 119.0 n.a. 12 Nonagricultural employment, total4 137.4 138.5 136.2 136.1 135.7 135.7 135.1 134.9 134.6 135.1 134.8 135.0 13 Goods-producing, total 110.1 109.3 102.5 102.3 101.5 101.0 99.7 99.0 •98.2 99.4' 98.8 98.8 14 Manufacturing, total 104.3 103.7 96.9 96.7 96.0 95.5 94.2 93.5 93.2 93.6 93.7 93.9 15 Manufacturing, production-worker ... 99.3 98.0 89.3 89.2 88.4 87.8 86.2 85.3 85.1 85.6' 85.7' 86.1 16 Service-producing 152.4 154.4 154.7 154.6 154.5 154.7 154.4 154.5 154.3 154.7 154.6 154.9 17 Personal income, total 342.9 383.5 408.0 410.8 411.4 412.3 414.5 417.7 418.7 419.1' 419.5 n.a. 18 Wages and salary disbursements 317.6 349.9 365.5 367.6 367.8 367.7 368.0 368.2 370.0' 373.7 373.3 n.a. 19 Manufacturing 264.3 288.1 285.3 287.7 286.4 284.5 281.3 280.0 279.3' 283.4' 284.7 n.a. 20 Disposable personal income5 332.9 370.3 396.7 400.6 400.9 402.0 403.7 406.8 407.4 408.8 408.9 n.a. 21 Retail sales® 303.8 330.6 326.0 341.9 340.3 343.5 347.4 353.4 353.3 352.7 348.5 349.7 Prices7 22 Consumer 246.8 272.4 289.1 292.2 292.8 293.3 294.1 293.6 292.4 292.6 293.2 n.a. 23 Producer finished goods 247.0 269.8 280.6 281.7 282.3 281.2 284.1 284.9 285.1 283.6 283.7 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 the Bureau of Labor Statistics, U.S. Department of Labor. Commerce. 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 6, nonresidential and heavy engineering, from McGraw-Hill Information Systems and indexes for series mentioned in notes 3 and 7 may also be found in the Survey Company, F. W. Dodge Division. 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 1982 1983 1982 1983 1982 1983 SSeerriieess Q2 Q3 Q4' Ql Q2 Q3 Q4 Ql Q2 Q3 Q4' Ql Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 138.1 137.7 134.5 137.7 196.4 197.7 198.9 200.1 70.3 69.7 67.6 68.8 2 Primary processing 132.3 132.4 129.3 135.0 199.5 200.4 201.3 202.3 66.3 66.1 64.2 66.7 3 Advanced processing 141.2 140.5 137.3 139.4 194.9 196.2 197.6 199.0 72.5 71.6 69.5 70.0 4 Materials 134.7 132.6 128.7 133.3 193.7 194.6 195.5 196.6 69.6 68.1 65.8 67.8 5 Durable goods 127.1 124.7 117.1 123.9 197.3 198.3 199.2 200.2 64.4 62.9 58.8 61.9 6 Metal materials 77.0 73.0 66.5 77.6 142.4 142.3 142.4 142.6 54.1 51.3 46.7 54.4 7 Nondurable goods 156.8 155.1 157.0 160.2 216.1 217.4 218.9 220.2 72.6 71.3 71.8 72.8 8 Textile, paper, and chemical 160.5 158.4 160.8 164.6 227.3 228.8 230.5 231.9 70.6 69.2 69.8 71.0 9 Textile 101.8 102.0 103.0 106.9 142.4 142.8 143.1 143.6 71.5 71.5 72.0 74.5 10 Paper 142.0 145.9 147.6 149.5 164.6 165.4 166.3 167.0 86.3 88.2 88.7 89.5 11 Chemical 194.0 188.5 191.9 196.3 289.6 291.9 294.3 296.7 67.0 64.6 65.2 66.2 12 Energy materials 125.5 123.8 121.5 122.8 157.0 157.6 158.2 158.8 79.9 78.5 76.8 77.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A47 2.11 Continued Previous cycle1 Latest cycle2 1982 1982 1983 SSeerriieess High Low High Low Mar. July Aug. Sept. Oct. Nov. Dec/ Jan/ Feb/ Mar. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 71.7 70.0 69.8 69.2 68.0 67.4 67.5 68.4 68.7 69.4 14 Primary processing 93.8 68.2 90.1 71.0 68.5 65.7 66.1 66.4 65.0 63.9 63.7 65.9 66.9 67.6 15 Advanced processing .... 85.5 69.4 86.2 77.2 72.8 72.3 71.7 70.7 69.6 69.2 69.5 70.0 69.8 70.5 16 Materials 92.6 69.4 88.8 73.8 71.4 68.5 68.2 67.7 66.6 65.7 65.2 67.1 67.7 68.5 17 Durable goods 91.5 63.6 88.4 68.2 66.2 63.7 63.1 61.9 59.6 58.4 58.4 60.6 61.8 63.2 18 Metal materials 98.3 68.6 96.0 59.6 65.8 50.7 51.2 51.9 48.6 45.5 46.0 52.0 54.6 56.6 19 Nondurable goods 94.5 67.2 91.6 77.5 73.2 70.2 71.0 72.8 72.5 71.9 71.0 72.4 72.6 73.3 20 Textile, paper, and chemical 95.1 65.3 92.2 75.3 70.7 68.0 68.9 70.7 70.3 69.9 69.3 70.3 70.9 71.7 21 Textile 92.6 57.9 90.6 80.9 68.6 69.8 72.3 72.3 73.0 71.6 71.3 73.1 74.5 n.a. 22 Paper 99.4 72.4 97.7 89.3 87.6 86.0 88.6 89.8 89.7 90.0 86.5 89.9 89.2 n.a. 23 Chemical 95.5 64.2 91.3 70.7 67.4 63.7 63.9r 66.2 65.4 65.1 65.1 65.4 66.2 n.a. 24 Energy materials 94.6 84.8 88.3 82.7 83.7 80.0 79.0 76.6 77.6 76.8 76.0 77.8 77.4 76.8 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 1983 CCaatteeggoorryy 11998800 11998811 11998822 Sept. Oct. Nov. Dec. Jan. Feb. Mar. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 169,847 172,272 174,451 174,888 175,069 175,238 175,381 175,543 175,693 175,850 2 Labor force (including Armed Forces)1 109,042 110,812 112,383 113,056 112,940 113,222 113,311 112,737 112,741 112,678 3 Civilian labor force 106,940 108,670 110,204 110,858 111100,,775522 111111,,004422 111111,,112299 111100,,554488 111100,,555533 111100,,448844 Employment 4 Nonagricultural industries2 95,938 97,030 96,125 96,180 95,763 95,670 95,682 95,691 95,670 95,729 5 Agriculture 3,364 3,368 3,401 3,363 3,413 3,466 3,411 3,412 3,393 3,375 Unemployment 6 Number 7,637 8,273 10,678 11,315 11,576 11,906 12,036 11,446 11,490 11,381 7 Rate (percent of civilian labor force)... 7.1 7.6 9.7 10.2 10.5 10.7 10.8 10.4 10.4 10.3 8 Not in labor force 60,805 61,460 62,061 61,832 62,129 62,016 62,070 62,806 62,952 63,172 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment^ 90,406 91,105 89,619 89,264 88,877 88,750 88,565 88,920' 88,735' 88,854 10 Manufacturing 20,285 20,173 18,849 18,572 18,325 18,181 18,131 18,208' 18,224' 18,263 11 Mining 1,020 1,104 1,122 1,075 1,058 1,046 1,037 1,027' 1,005' 994 12 Contract construction 4,399 4,307 3,917 3,883 3,856 3,854 3,818 3,927' 3,789' 3,768 13 Transportation and public utilities 5,143 5,152 5,057 5,031 5,007 4,992 4,983 4,949' 4,937' 4,933 14 Trade 20,386 20,736 20,547 20,492 20,441 20,425 20,316 20,487' 20,435' 20,476 15 Finance 5,168 5,330 5,350 5,367 5,357 5,363 5,377 5,384' 5,403' 5,410 16 Service 17,901 18,598 19,000 19,084 19,074 19,135 19,148 19,200^ 19,205' 19,293 17 Government 16,249 16,056 15,784 15,763 15,742 15,754 15,755 15,738' 15,737' 15,717 1. Persons 16 years of age and over. Monthly figures, which are based on 3. Data include all full- and part-time employees who worked during, or sample data, relate to the calendar week that contains the 12th day; annual data received pay for, the pay period that includes the 12th day of the month, and are averages of monthly figures. By definition, seasonality does not exist in exclude proprietors, self-employed persons, domestic servants, unpaid family population figures. Based on data from Employment and Earnings (U.S. Depart- workers, and members of the Armed Forces. Data are adjusted to the March 1979 ment of Labor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • April 1983 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1982 1983 11998822 GGrroouuppiinngg por- avg. tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec/ Jan. Feb.P Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 138.6 141.7 140.2 139.2 138.7 138.8 138.4 137.3 135.7 134.9 135.2 137.2 137.6 2 Products 60.71 141.8 143.7 142.9 142.3 142.1 142.6 142.0 140.8 139.3 139.0 139.9 140.7 140.5 3 Final products 47.82 141.5 143.3 142.6 142.2 142.1 142.5 141.2 140.0 138.7 138.3 139.5 140.0 139.6 4 Consumer goods 27.68 142.6 141.5 142.1 143.6 144.8 145.8 144.1 143.4 142.2 141.3 142.0 143.6 144.2 Equipment 20.14 139.8 145.9 143.4 140.4 138.4 138.0 137.3 135.2 134.0 134.2 136.1 135.2 133.3 6 Intermediate products 12.89 143.3 145.2 143.7 142.6 141.9 142.8 144.7 143.7 141.6 141.8 141.5 143.3 143.9 7 Materials 39.29 133.7 138.5 136.2 134.3 133.5 133.0 132.8 132.0 130.0 128.4 127.8 131.7 133.2 Consumer goods 8 Durable consumer goods 7.89 129.2 128.1 130.7 132.6 134.6 137.3 132.9 131.3 126.5 124.6 125.9 131.6 134.0 9 Automotive products 2.83 129.5 125.0 129.9 138.9 143.0 149.7 135.5 135.5 123.6 120.7 128.7 136.2 145.5 10 Autos and utility vehicles 2.03 99.0 93.6 100.5 111.8 117.1 127.7 107.1 105.8 89.6 86.9 99.0 107.0 120.8 11 Autos 1.90 86.6 79.8 87.2 96.1 101.9 114.6 93.3 94.3 79.5 77.7 87.9 97.1 107.3 12 Auto parts and allied goods .80 206.9 204.5 204.6 207.6 208.6 205.4 207.6 210.7 210.0 206.6 204.0 210.2 208.2 13 Home goods 5.06 129.1 129.9 131.1 129.1 129.9 130.4 131.4 128.9 128.1 126.8 124.3 129.1 127.6 14 Appliances, A/C, and TV 1.40 102.6 97.0 102.7 100.5 106.4 102.7 104.5 99.4 106.1 104.8 94.2 109.6 105.5 15 Appliances and TV 1.33 104.6 97.4 103.1 101.5 108.8 106.1 108.6 104.1 110.5 108.4 98.3 113.0 108.4 16 Carpeting and furniture 1.07 149.7 151.3 151.8 145.9 149.0 151.4 152.5 153.3 151.9 151.4 150.8 149.0 153.0 17 Miscellaneous home goods 2.59 135.0 138.9 138.0 137.7 134.9 136.7 137.2 134.9 130.1 128.6 129.8 131.4 129.1 18 Nondurable consumer goods 19.79 148.0 146.8 146.6 147.9 148.8 149.1 148.6 148.2 148.5 147.9 148.4 148.3 148.3 19 4.29 20 Consumer staples 15.50 159.0 158.1 158.3 159.0 159.9 159.7 159.4 158.8 159.1 158.1 158.8 158.5 158.6 ">! 8.33 149.7 149.6 148.1 149.9 150.9 149.9 149.6 148.6 150.2 149.0 149.5 150.5 72 Nonfood staples 7.17 169.7 168.0 170.0 169.5 170.4 171.2 170.8 170.7 169.5 168.7 169.6 167.7 167.2 23 Consumer chemical products .... 2.63 219.9 217.8 218.3 216.6 219.8 222.3 222.4 221.7 220.0 218.9 220.9 221.6 221.0 2.4 Consumer paper products 1.92 127.7 127.8 128.7 126.7 126.7 128.1 129.4 128.2 125.3 125.1 128.3 126.4 126.7 25 Consumer energy products 2.62 150.2 147.6 151.9 153.6 152.8 151.4 149.3 150.6 151.1 150.2 148.4 143.8 142.9 2266 11..4455 117700..88 117700..44 117744..55 117733..77 117711..11 116677..77 116699..77 116699..55 116699..11 117711..55 116699..33 116644..11 Equipment 77 Business 12.63 157.9 169.0 164.9 159.9 156.7 154.9 153.9 150.5 147.1 146.4 148.1 146.5 143.3 28 Industrial 6.77 134.9 151.2 145.9 138.9 134.0 131.3 128.4 123.8 118.3 117.2 117.9 118.2 114.4 29 Building and mining 1.44 214.2 256.9 242.2 224.4 209.0 200.4 190.8 182.1 169.3 165.7 171.9 173.8 153.6 30 Manufacturing 3.85 107.2 116.3 114.0 109.7 107.5 106.0 104.4 101.6 98.0 97.5 97.0 97.3 97.8 31 Power 1.47 129.9 139.0 134.8 131.5 129.9 129.6 130.1 124.7 121.0 121.0 119.7 118.3 119.4 37 Commercial transit, farm 5.86 184.4 189.5 186.9 184.1 183.0 182.2 183.3 181.4 180.5 180.2 183.0 179.2 176.7 33 Commercial 3.26 253.5 257.8 253.1 247.7 247.5 248.8 253.5 254.0 253.5 254.8 258.6 254.9 251.6 34 Transit 1.93 103.9 110.5 110.9 110.9 108.3 106.3 102.0 95.5 93.2 92.3 96.2 90.8 88.6 35 Farm .67 80.5 84.9 83.5 85.8 84.1 76.9 75.8 76.1 76.8 70.7 65.1 66.0 66.0 36 Defense and space 7.51 109.4 107.0 107.2 107.7 107.6 109.5 109.5 109.5 111.9 113.6 115.9 116.1 116.5 Intermediate products 37 Construction supplies 6.42 124.3 125.6 123.6 122.2 123.1 124.1 127.1 125.5 122.5 123.4 123.0 127.0 128.2 38 Business supplies 6.47 162.1 164.6 163.7 162.8 160.6 161.4 162.1 161.8 160.5 160.1 159.8 159.6 159.5 39 Commercial energy products 1.14 181.1 184.5 183.5 180.3 178.3 179.8 178.1 179.2 180.4 182.4 182.4 181.0 181.1 Materials 40 Durable goods materials 20.35 125.0 130.7 128.1 126.6 126.6 126.0 125.1 123.0 118.5 116.4 116.5 121.2 i;3.7 41 Durable consumer parts 4.58 95.3 94.1 94.7 98.9 103.1 103.8 101.0 97.1 91.4 90.0 91.1 95.5 99.0 42 Equipment parts 5.44 166.8 177.5 173.9 170.0 168.3 166.1 164.1 158.3 155.4 155.1 155.3 157.5 158.0 43 Durable materials n.e.c 10.34 116.2 122.2 118.8 116.1 115.1 114.8 115.4 115.8 111.1 107.7 107.4 113.5 116.6 44 Basic metal materials 5.57 79.9 88.6 82.3 79.4 77.4 75.7 76.1 77.7 73.0 69.1 68.7 77.5 81.5 45 Nondurable goods materials 10.47 157.5 162.0 160.3 156.6 153.5 152.3 154.5 158.5 158.2 157.3 155.6 159.0 159.9 46 Textile, paper, and chemical materials 7.62 161.1 166.6 164.4 160.4 156.7 155.3 157.7 162.2 161.5 161.0 160.0 162.7 164.5 47 Textile materials 1.85 102.2 104.5 104.5 101.8 99.1 99.6 103.2 103.3 104.4 102.5 102.1 104.8 107.0 48 Paper materials 1.62 145.6 146.7 143.5 141.8 140.7 142.1 146.6 148.9 148.9 149.7 144.1 150.1 149.0 49 Chemical materials 4.15 193.5 202.2 199.3 193.9 188.7 185.4 186.5 193.7 192.0 191.6 192.0 193.4 196.3 50 Containers, nondurable 1.70 161.4 161.3 159.8 157.2 158.5 158.1 162.8 167.3 164.9 160.8 155.2 162.2 159.8 51 Nondurable materials n.e.c 1.14 127.9 132.4 134.2 130.6 124.8 123.4 120.1 121.1 125.5 127.4 127.2 129.5 129.3 5? Energy materials 8.48 125.1 128.2 125.8 125.4 125.4 126.0 124.5 121.0 122.6 121.4 120.4 123.4 122.9 53 Primary energy 4.65 116.0 119.2 117.3 116.9 116.6 117.2 113.8 111.1 114.4 113.7 113.5 116.5 115.5 54 Converted fuel materials 3.82 136.3 139.1 136.1 135.7 136.0 136.7 137.4 133.0 132.6 130.8 128.9 131.7 132.0 Supplementary groups 55 Home goods and clothing 9.35 119.6 118.9 118.9 119.5 120.2 121.4 121.3 120.1 119.9 119.6 118.2 121.1 120.0 56 Energy, total 12.23 135.7 137.6 136.7 136.5 136.2 136.4 134.8 132.7 134.1 133.3 132.2 133.1 132.6 57 Products 3.76 159.6 158.8 161.5 161.7 160.5 160.0 158.0 159.3 160.0 160.0 158.7 155.1 154.5 58 Materials 8.48 125.1 128.2 125.8 125.4 125.4 126.0 124.5 121.0 122.6 121.4 120.4 123.4 122.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1983 SIC pro- 1982 Grouping code por- avg. tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec Jan. Feb.? Mar Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 146.3 153.1 151.6 148.8 145.2 142.6 141.3 139.7 140.4 140.4 140.1 141.1 138.6 138.3 2 Mining 6.36 126.1 138.1 134.1 128.9 123.5 120.1 116.9 114.7 115.9 116.8 118.4 121.4 115.8 113.6 3 Utilities 5.69 168.7 170.0 171.0 170.9 169.4 167.7 168.5 167.5 167.8 166.7 164.2 163.1 164.1 165.9 4 Electric 3.88 190.5 191.7 193.1 193.4 191.6 189.2 189.9 188.2 188.4 188.3 185.6 184.5 186.0 188.4 5 Manufacturing 87.95 137.6 140.1 138.7 137.9 137.7 138.1 138.0 137.1 135.0 134.0 134.5 136.6 137.4 139.2 6 Nondurable 35.97 156.2 157.3 156.1 155.0 155.3 155.7 156.9 156.7 156.2 155.3 155.6 157.3 157.5 159.2 7 Durable 51.98 124.7 128.2 126.7 126.1 125.5 125.9 124.9 123.5 120.3 119.3 119.9 122.3 123.5 125.3 Mining 8 Metal 10 .51 82.4 109.9 108.8 90.0 71.8 58.1 53.4 55.4 63.1 70.4 74.9 81.0 83.2 9 Coal 11.12 .69 142.7 155.6 146.2 149.2 144.4 140.3 135.8 127.9 143.2 134.1 129.7 144.8 136.5 127.3 10 Oil and gas extraction 13 4.40 131.1 141.4 137.7 132.7 129.1 127.0 123.3 121.0 119.1 120.3 122.9 124.0 116.7 114.3 11 Stone and earth minerals 14 .75 112.1 121.6 119.6 114.6 106.6 103.8 105.7 106.3 108.5 111.9 111.7 112.8 114.3 Nondurable manufactures 12 Foods 20 8.75 151.1 150.8 149.7 150.5 151.0 151.0 150.7 149.0 151.5 152.0 152.8 154.4 13 Tobacco products 21 .67 118.0 126.7 116.1 118.6 123.6 121.4 120.6 113.3 110.6 113.0 109.9 104.7 14 Textile mill products 22 2.68 124.5 126.0 126.3 123.5 123.7 124.3 125.9 126.1 125.9 123.1 122.2 125.8 128.8 15 Apparel products 23 3.31 16 Paper and products 26 3.21 150.8 150.6 149.8 146.5 146.8 147.0 152.5 154.3 155.0 154.5 151.1 158.8 155.7 155.4 17 Printing and publishing 27 4.72 144.1 145.9 144.2 143.8 142.6 143.9 145.3 144.3 142.0 141.7 142.8 141.4 142.5 145.3 18 Chemicals and products 28 7.74 196.1 200.3 198.6 193.6 193.2 194.1 195.6 196.4 194.1 192.8 195.9 196.0 196.6 19 Petroleum products 29 1.79 121.8 121.3 120.8 122.2 124.3 124.7 121.4 122.6 123.8 120.0 118.7 117.8 115.7 118.8 20 Rubber and plastic products 30 2.24 254.7 253.4 255.1 257.0 258.9 256.8 261.1 262.0 256.3 250.2 249.7 256.2 258.9 21 Leather and products 31 .86 60.9 61.2 60.6 61.1 62.3 62.9 60.8 60.9 59.5 57.7 56.0 59.5 60.4 Durable manufactures 22 Ordnance, private and government 19.91 3.64 86.9 83.8 85.2 86.3 86.5 87.1 86.5 86.9 89.5 91.9 92.5 93.5 93.0 93.5 23 Lumber and products 24 1.64 112.6 103.5 106.2 110.6 112.2 116.9 120.3 119.9 117.2 119.1 121.4 130.0 132.4 24 Furniture and fixtures 25 1.37 151.9 150.2 151.8 151.1 152.5 154.5 156.7 155.7 154.3 152.4 153.7 150.0 151.0 25 Clay, glass, stone products 32 2.74 128.2 131.5 127.0 125.0 126.1 126.9 128.8 130.4 128.1 127.3 125.4 127.9 131.3 26 Primary metals 33 6.57 75.3 83.0 76.4 75.2 72.8 72.9 72.9 73.2 69.6 63.6 63.5 72.9 76.6 79.0 27 Iron and steel 331.2 4.21 61.7 73.0 65.1 62.4 58.0 58.1 57.4 56.4 54.1 47.5 46.6 59.0 64.8 28 Fabricated metal products 34 5.93 114.8 121.1 119.1 115.8 115.0 115.5 114.3 112.3 107.6 107.0 107.3 107.6 109.6 111.8 29 Nonelectrical machinery 35 9.15 149.0 157.3 153.7 150.0 147.4 147.1 147.2 144.9 140.4 139.6 139.2 138.0 135.7 137.8 30 Electrical machinery 36 8.05 169.3 172.6 172.2 170.9 170.8 170.3 169.7 167.0 165.4 165.5 165.5 169.5 169.4 171.6 31 Transportation equipment 37 9.27 104.9 104.4 105.9 110.0 111.6 112.7 107.0 105.3 100.8 100.2 103.7 105.8 109.9 110.2 32 Motor vehicles and parts 371 4.50 109.8 105.6 110.7 119.8 124.0 127.2 116.7 113.5 103.0 101.7 108.8 113.3 123.0 122.5 33 Aerospace and miscellaneous transportation equipment. .. 372-9 4.77 100.4 103.2 101.3 100.8 99.9 99.0 97.8 97.6 98.6 98.7 98.9 98.7 97.5 98.7 34 Instruments 38 2.11 161.9 163.0 162.8 163.8 164.8 165.2 165.5 161.9 157.4 155.8 155.2 154.5 154.0 155.8 35 Miscellaneous manufactures 39 1.51 137.0 145.3 144.6 141.7 136.8 134.7 133.9 132.9 129.6 129.5 128.2 130.7 131.0 133.1 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 579.6 586.8 582.1 586.1 584.1 585.8 578.5 575.3 570.0 568.4 572.9 579.4 579.5 585.6 37 Final 390.9 451.1 456.6 453.5 458.3 456.7 457.2 449.2 446.3 442.8 441.3 445.8 449.9 449.5 453.2 38 Consumer goods . 277.5 308.0 306.9 306.7 312.3 313.1 314.9 309.1 309.3 306.6 305.6 306.8 312.7 314.0 315.2 39 Equipment 113.4 143.1 149.7 146.8 146.0 143.5 142.3 140.1 137.0 136.2 135.7 138.9 137.3 135.5 138.1 40 Intermediate 116.6 128.5 130.2 128.6 127.8 127.4 128.7 129.3 129.0 127.2 127.1 127.1 129.5 130.0 132.4 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

A46 Domestic Nonfinancial Statistics • April 1983 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1982 1983 IItteemm 11998800 11998811 11998822RR July Aug. Sept. Oct.' Nov.' Dec.' Jan.' Feb. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,191 986 985 1,062 888 1,003 1,172 1,192 1,305 1,478 1,493 2 I-family 710 564 538 500 497 561 651 729 736 903 825 3 2-or-more-family 480 421 448 562 391 442 521 463 569 575 668 4 Started 1,292 1,084 1,062 1,185 1,046 1,134 1,142 1,361 1,280 1,707 1,756 5 1-family 852 705 663 625 651 683 716 868 842 1,136 1,040 6 2-or-more-family 440 379 400 560 395 451 426 493 438 571 716 7 Under construction, end of period1 896 682 719 67(X 671' 685' 691 712 728 756 A 8 1-family 515 382 398 377' 374' 38(Y 383 395 409 426 T 9 2-or-more-family 382 301 321 293' 296 306' 307 317 319 329 1 10 Completed 1,502 1,266 1,006 1,010' 1,001' 936' 1,077 1,053 1,034 1,197 n.a. 11 1-family 957 818 631 684' 638 585' 679 679 645 778 1 12 2-or-more-family 545 447 374 326' 363' 351' 398 374 389 419 \ 13 Mobile homes shipped 222 241 239 240 234 222 224 251 243 284 Merchant builder activity in 1-family units 14 Number sold 545 436 413 364 389 473 481 545 526 593 558 15 Number for sale, end of period1 342 278 255 250 248 247 245 246 251 259 262 Price (thousands of dollars)2 Median 16 Units sold 64.7 68.8 69.3 70.9 70.1 67.7 69.7 73.5 71.5 74.2 75.1 Average 17 Units sold 76.4 83.1 83.8 86.5 86.5 79.6 79.9 87.8 86.8 88.8 89.9 EXISTING UNITS (1-family) 18 Number sold 2,974' 2,418' 1,991 1,910' 1,860' 1,910 1,990 2,150 2,260 2,580 2,470 Price of units sold (thousands of dollars)2 19 Median 62.1 66.1 67.7 69.2 68.9 67.3 66.9 67.7 67.8 68.1 68.3 20 Average 72.7 78.0 80.4 82.0 82.0 80.0 79.3 80.4 80.6 80.0 80.4 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,748 238,198 229,566 227,638 228,053 228,136 230,818 239,637 239,031 256,055 250,901 22 Private 175,701 185,221 179,418 178,734 176,644 177,002 179,792 187,517 191,441 200,157 201,266 23 Residential 87,261 86,566 75,003 73,436 72,139 71,451 75,687 81,744 86,950 93,492 95,379 24 Nonresidential, total 88,440 98,655 104,415 105,298 104,505 105,551 104,105 110055,,777733 110044,,449911 110066,,666655 110055,,888877 Buildings 25 Industrial 13,839 17,031 16,670 16,404 16,691 16,587 17,072 15,838 15,257 15,518 14,979 26 Commercial 29,940 34,243 37,125 37,512 36,091 37,129 35,677 37,769 37,516 38,773 39,828 27 Other 8,654 9,543 10,421 10,130 10,499 10,506 10,778 11,100 11,476 12,234 12,176 28 Public utilities and other 36,007 37,838 40,199 41,252 41,224 41,329 40,578 41,066 40,242 40,140 38,904 29 Public 55,047 52,977 50,148 48,904 51,409 51,134 51,026 52,120 47,590 55,898 49,635 30 Military 1,880 1,966 2,192 2,261 2,481 2,674 2,324 2,527 2,320 2,671 2,709 31 Highway 13,808 13,304 13,180 14,119 13,327 13,464 14,314 13,906 12,417 14,757 13,376 32 Conservation and development 5,089 5,225 4,983 5,055 5,036 4,719 4,541 4,718 4,601 5,214 4,878 33 Other 34,270 32,482 29,793 27,469 30,565 30,277 29,847 30,969 28,252 33,256 28,672 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 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of comparable with data in prior periods because of changes by the Bureau of the existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from originating agency. Permit authoriza- Construction Reports (C-30-76-5), issued by the Bureau in July 1976. tions are 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 A5 1 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted Change IIIInnnnddddeeeexxxx From e a 1 r 2 l ie m r onths From 3 months earlier (at annual rate) From 1 month earlier lllleeeevvvveeeellll FFFFeeeebbbb.... 1111999988883333 IIIItttteeeemmmm 1982 1982 1983 ==== (((( 11119999 11110000 66667777 0000 ))))1111 11998822 11998833 FFeebb.. FFeebb.. Mar. June Sept. Dec. Oct. Nov. Dec. Jan. Feb. CONSUMER PRICES2 1 All items 7.7 3.5 1.3 9.8 4.1 .5 .4 .0 -.3 .2 -.2 293.2 2 Food 4.6 2.0 5.0 6.2 .6 .8 .2 .0 .0 .1 .0 289.0 3 Energy items 3.0 -1.5 -17.7 7.5 8.1 10.2 1.3 .8 .3 -2.5 -3.7 406.7 4 All items less food and energy 9.2 4.6 4.1 9.6 4.7 -.3 .4 -.1 -.5 1.7 -.9 282.0 Commodities 6.0 6.0 5.3 9.9 2.4 5.4 .6 .3 .3 .6 .5 237.9 6 Services 11.9 3.4 2.9 11.3 4.6 -4.8 .1 -.3 -1.0 .1 .7 332.9 PRODUCER PRICES 7 Finished goods 5.5 2.1 .9 4.6 4.2 4.6 .4 .6 .2 -1.0 .1 283.7 8 Consumer foods 2.7 .7 6.8 10.2 -5.2 -2.6 .0 .1 .1 -.2 .6 259.9 9 Consumer energy 5.4 -4.8 -21.9 -9.2 30.9 7.1 .4 2.2 -.9 -4.2 -2.9 792.4 10 Other consumer goods 6.3 4.0 3.8 5.7 4.2 6.5 .8 .4 .4 -1.0 .7 238.1 11 Capital equipment 7.1 4.1 3.6 5.2 3.5 3.9 .0 .5 .5 -.1 .5 286.2 12 Intermediate materials3 5.1 -.2 -2.3 -.5 2.3 1.5 .1 .3 .0 -.4 -.2 315.9 13 Excluding energy 5.2 .9 .3 .0 1.0 1.2 .0 .2 .2 -.1 .4 292.7 Crude materials 14 Foods -7.0 .4 23.3 15.8 -26.4 1.3 -1.0 1.0 .4 1.1 2.4 249.3 15 Energy 1.8 1.0 -5.8 1.6 8.7 5.8 .9 1.8 -1.2 -1.2 -.6 804.8 16 Other -7.8 -4.6 -35.7 19.2 2.9 -7.9 -.7 -.8 -.5 -2.9 -2.8 238.5 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds, rental-equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • April 1983 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 11998800 11998811 1982r Q4 Ql Q2 Q3 Q4 GROSS NATIONAL PRODUCT 1 Total 2,633.1 2,937.7 3,059.3 3,003.2 2,995.5 3,045.2 3,088.2 3,108.2 By source 2 Personal consumption expenditures 1,667.2 1,843.2 1,971.1 1,884.5 1,919.4 1,947.8 1,986.3 22,,003300..88 3 Durable goods 214.3 234.6 242.7 229.6 237.9 240.7 240.3 251.8 4 Nondurable goods 670.4 734.5 762.1 746.5 749.1 755.0 768.4 775.7 5 Services 782.5 874.1 966.3 908.3 932.4 952.1 977.6 1,003.3 6 Gross private domestic investment 402.4 471.5 420.3 468.9 414.8 431.5 443.3 391.5 7 Fixed investment 412.4 451.1 444.1 455.7 450.4 447.7 438.6 439.9 8 Nonresidential 309.2 346.1 348.0 360.2 357.0 352.2 344.2 338.4 9 Structures 110.5 129.7 141.5 139.6 141.4 143.6 141.3 139.6 10 Producers' durable equipment 198.6 216.4 206.5 220.6 215.6 208.6 203.0 198.8 11 Residential structures 103.2 105.0 96.2 95.5 93.4 95.5 94.3 101.4 12 Nonfarm 98.3 99.7 90.5 89.4 87.9 89.6 88.7 95.7 13 Change in business inventories -10.0 20.5 -23.8 13.2 -35.6 -16.2 4.7 -48.3 14 Nonfarm -5.7 15.0 -24.3 6.0 -36.0 -15.0 3.7 -50.0 15 Net exports of goods and services 25.2 26.1 20.5 23.5 31.3 34.9 6.9 9.1 339.2 367.3 350.8 367.9 359.9 365.8 349.5 328.1 17 Imports 314.0 341.3 330.3 344.4 328.6 330.9 342.5 319.1 18 Government purchases of goods and services 538.4 596.9 647.4 626.3 630.1 630.9 651.7 676.8 19 Federal 197.2 229.0 257.9 250.5 249.7 244.3 259.0 278.7 20 State and local 341.2 368.0 389.4 375.7 380.4 386.6 392.7 398.0 By major type of product 21 Final sales, total 2,643.1 2,917.3 33,,008833..11 22,,998899..99 33,,003311..11 33,,006611..44 33,,008833..55 33,,115566..55 22 Goods 1,141.9 1,289.2 1,280.4 1,298.5 1,269.4 1,283.1 1,295.5 1,273.6 23 Durable 477.3 528.1 493.3 504.9 482.4 505.9 516.9 467.9 24 Nondurable 664.6 761.1 787.1 793.6 787.0 777.2 778.6 805.7 1,225.6 1,364.3 1,494.4 1,421.5 1,444.4 1,476.7 1,509.5 1,547.0 26 Structures 265.7 284.2 284.5 283.3 281.7 285.3 283.2 287.7 27 Change in business inventories -10.0 20.5 -23.8 13.2 -35.6 -16.2 4.7 -48.3 28 Durable goods -5.2 8.7 -18.9 -5.6 -30.9 -6.6 10.1 -48.3 -4.8 11.8 -5.0 18.9 -4.8 -9.6 -5.4 .0 30 MEMO: Total GNP in 1972 dollars 1,474.0 1,502.6 1,476.9 1,490.1 1,470.7 1,478.4 1,481.1 1,477.2 NATIONAL INCOME 31 Total 2,117.1 2,352.5 2,437.3 2,404.5 2,396.9 2,425.2 2,455.6 2,471.7 32 Compensation of employees 1,598.6 1,767.6 1,856.5 1,813.4 1,830.8 1,850.7 1,868.3 1,876.1 33 Wages and salaries 1,356.1 1,494.0 1,560.6 1,531.1 1,541.5 1,556.6 1,570.0 1,574.5 34 Government and government enterprises 260.2 283.1 302.3 292.3 296.3 300.0 303.5 309.2 35 Other 1,095.9 1,210.9 1,258.4 1,238.8 1,245.2 1,256.6 1,266.4 1,265.4 36 Supplement to wages and salaries 242.5 273.6 295.8 282.3 289.3 294.1 298.3 301.6 37 Employer contributions for social insurance 115.3 133.2 142.1 136.5 140.2 141.7 142.8 143.7 38 Other labor income 127.3 140.4 153.8 145.8 149.1 152.5 155.5 157.9 116.3 124.7 120.3 124.1 116.4 117.3 118.4 128.9 40 Business and professional1 96.9 100.7 101.3 99.5 98.6 99.9 101.7 104.8 41 Farm1 19.4 24.0 19.0 24.6 17.8 17.4 16.6 24.1 32.9 33.9 34.1 33.6 33.9 34.2 34.6 33.9 43 Corporate profits1 181.6 190.6 161.5 183.9 157.1 155.4 166.2 167.5 242.5 232.1 175.6 216.5 171.6 171.7 180.3 178.8 -43.0 -24.6 -9.2 -17.1 -4.4 -9.4 -10.3 -12.6 46 Capital consumption adjustment -17.8 -16.8 -4.9 -15.5 -10.1 -6.9 -3.8 1.3 j 187.7 J 235.7 j 264.9 249.5 258.7 267.5 268.1 265.3 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 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 11998800 11998811 11998822rr Q4 Q1 Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total personal income 2,160.2 2,404.1 2,569.9 2,494.6 2,510.5 2,552.7 2,592.5 2,624.0 2 Wage and salary disbursements 1,356.1 1,493.9 1,560.7 1,531.2 1,541.6 1,556.6 1,570.0 1,574.5 3 Commodity-producing industries 468.0 510.8 509.9 517.7 514.3 513.6 510.2 501.6 4 Manufacturing 354.4 386.4 382.6 388.7 385.1 385.6 383.8 375.8 5 Distributive industries 330.5 361.4 376.0 368.3 371.4 375.4 378.4 378.8 6 Service industries 297.5 338.6 372.5 352.8 359.5 367.6 377.8 385.0 7 Government and government enterprises 260.2 283.1 302.3 292.4 296.5 300.0 303.5 309.2 8 Other labor income 127.3 140.4 153.8 145.8 149.1 152.5 155.5 157.9 9 Proprietors' income1 116.3 124.7 120.3 124.1 116.4 117.3 118.4 128.9 10 Business and professional1 96.9 100.7 101.3 99.5 98.6 99.9 101.7 104.8 11 Farm1 19.4 24.0 19.0 24.6 17.8 17.4 16.6 24.1 12 Rental income of persons2 32.9 33.9 34.1 33.6 33.9 34.2 34.6 33.9 13 Dividends 55.9 62.5 67.0 65.2 65.8 66.1 67.2 68.8 14 Personal interest income 256.3 308.5 371.2 351.0 359.7 372.0 378.2 374.6 15 Transfer payments 297.2 336.3 374.7 350.7 354.6 365.2 381.0 397.8 16 Old-age survivors, disability, and health insurance benefits.... 154.2 182.0 204.5 192.8 194.7 197.5 209.2 216.6 17 LESS: Personal contributions for social insurance 88.7 104.9 111.7 107.0 110.6 111.4 112.4 112.5 18 EQUALS: Personal income 2,160.2 2,404.1 2,569.9 2,494.6 2,510.5 2,552.7 2,592.5 2,624.0 19 LESS: Personal tax and nontax payments 336.2 386.7 397.2 393.2 393.4 401.2 394.4 399.7 20 EQUALS: Disposable personal income 1,824.1 2,029.2 2,172.7 2,101.4 2,117.1 2,151.5 2,198.1 2,224.3 21 LESS: Personal outlays 1,717.9 1,898.9 2,030.5 1,942.7 1,977.9 2,007.2 2,046.1 2,090.9 22 EQUALS: Personal saving 106.2 130.2 142.2 158.6 139.1 144.3 152.0 133.4 MEMO: Per capita (1972 dollars) 23 Gross national product 6,474 6,536 6,364 6,458 6,360 6,380 6,376 6,342 24 Personal consumption expenditures 4,087 4,122 4,123 4,088 4,104 4,121 4,117 4,151 25 Disposable personal income 4,472 4,538 4,545 4,559 4,527 4,552 4,555 4,547 26 Saving rate (percent) 5.8 6.4 6.5 7.5 6.6 6.7 6.9 6.0 GROSS SAVING 27 Gross saving 406.3 477.5 414.7 476.3 428.8 441.5 422.4 366.2 28 Gross private saving 438.3 504.7 531.8 547.7 520.3 529.0 546.1 532.6 29 Personal saving 106.2 130.2 142.2 158.6 139.1 144.3 152.0 133.4 30 Undistributed corporate profits1 38.9 44.4 33.2 44.3 32.5 30.7 34.8 35.8 31 Corporate inventory valuation adjustment -43.0 -24.6 -9.2 -17.1 -4.4 -9.4 -10.3 -12.6 Capital consumption allowances 32 Corporate 181.2 206.2 225.1 221166..00 221188..99 223.4 222277..55 223300..66 33 Noncorporate 112.0 123.9 131.3 128.7 129.8 130.5 131.9 132.9 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -33.2 -28.2 -117.1 -72.5 -90.7 -87.5 -123.7 -166.4 36 Federal -61.4 -60.0 -149.3 -101.7 -118.4 -119.6 -156.0 -203.1 37 State and local 28.2 31.7 32.2 29.1 27.7 32.1 32.3 36.6 38 Capital grants received by the United States, net 1.2 1.1 .0 1.1 .0 .0 .0 .0 39 Gross investment 410.1 475.6 415.7 469.0 421.3 442.3 426.0 373.1 40 Gross private domestic 402.4 471.5 420.3 468.9 414.8 431.5 443.3 391.5 41 Net foreign 7.8 4.1 -4.6 0.1 6.5 10.8 -17.3 -18.5 42 Statistical discrepancy 3.9 -1.9 1.0 -7.2 -7.5 .8 3.6 6.9 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 • April 1983 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 11998800 11998811 11998822 Q4 Ql' Q2' Q3' Q4P 1 Balance on current account 1,520 4,471 -8,093 --992277 1,034 22,,118888 --55,,221144 --66,,110033 11,,229933 729 22,,884411 --77,,443366 --44,,222277 3 Merchandise trade balance2 -25,338 -27,889 -36,331 --99,,118855 -5,938 --55,,776622 --1122,,449955 --1122,,113366 4 Merchandise exports 224,237 236,254 211,013 5577,,559933 55,607 5555,,000011 5522,,333344 4488,,007711 5 Merchandise imports -249,575 -264,143 -247,344 --6666,,777788 -61,545 --6600,,776633 --6644,,882299 --6600,,220077 6 Military transactions, net -2,472 -1,541 640 --552288 167 224477 220011 2244 7 Investment income, net3 29,910 33,037 28,720 88,,552299 6,867 77,,669944 77,,008822 77,,007766 8 Other service transactions, net 6,203 7,471 6,746 22,,112277 1,986 11,,774499 11,,664466 11,,336644 9 Remittances, pensions, and other transfers -2,101 -2,104 -2,455 -562 -575 -671 -601 -608 10 U.S. government grants (excluding military) -4,681 -4,504 -5,413 -1,308 -1,473 -1,069 -1,048 -1,823 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,126 -5,137 -5,766 -987 -904 -1,547 -2,496 -818 12 Change in U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 262 -1,089 -1,132 -794 -1,949 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -16 -1,824 -1,371 -134 -400 -241 -434 -297 15 Reserve position in International Monetary Fund -1,667 -2,491 -2,552 -358 -547 -814 -459 -732 16 Foreign currencies -6,472 -861 -1,041 754 -142 -77 99 -920 17 Change in U.S. private assets abroad (increase, -)3 -72,746 -98,982 -107,535 -46,952 -29,264 -35,166 -22,307 -20,800 18 Bank-reported claims -46,838 -84,531 -106,711 -42,645 -32,708 -36,923 -20,430 -16,650 19 Nonbank-reported claims -3,146 -331 4,750 -508 4,112 -304 942 n.a. 20 U.S. purchase of foreign securities, net -3,524 -5,429 -7,772 -2,843 -531 -441 -3,266 -3,535 21 U.S. direct investments abroad, net3 -19,238 -8,691 2,198 -956 -137 2,502 447 -615 22 Change in foreign official assets in the United States (increase, +) 15,442 4,785 3,043 8,119 -3,122 1,998 2,494 1,673 23 U.S. Treasury securities 9,708 4,983 5,716 4,439 -1,344 -2,076 4,825 4,311 24 Other U.S. government obligations 2,187 1,289 -670 -246 -296 258 -76 -556 25 Other U.S. government liabilities4 561 -69 -12 275 -182 387 -286 69 26 Other U.S. liabilities reported by U.S. banks -159 -4,083 -1,713 3,436 -1,516 3,393 -1,981 -1,609 27 Other foreign official assets5 3,145 2,665 -278 215 216 36 12 -542 28 Change in foreign private assets in the United States (increase, +)3 39,041 73,136 81,451 30,988 28,202 27,621 14,178 11,451 29 U.S. bank-reported liabilities 10,743 41,262 62,869 20,476 25,423 22,552 10,687 4,207 30 U.S. nonbank-reported liabilities 6,530 532 -3,760 -457 -982 -2,304 -474 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,645 2,932 6,945 1,238 1,277 2,095 1,316 2,257 32 Foreign purchases of other U.S. securities, net 5,457 7,109 5,973 396 1,319 2,497 220 1,938 33 Foreign direct investments in the United States, net3 13,666 21,301 9,424 9,336 1,165 2,781 2,429 3,049 34 Allocation of SDRs 1,152 1,093 0 00 0 0 0 0 35 Discrepancy 28,870 25,809 41,864 99,,449977 5,142 6,038 14,139 16,546 22,,447744 -802 672 -1,904 2,035 37 Statistical discrepancy in recorded data before seasonal adjustment 28,870 25,809 41,864 77,,002233 5,944 5,366 16,043 14,511 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 262 -1,089 -1,132 -794 -1,949 39 Foreign official assets in the United States (increase, +) 14,881 4,854 3,055 7,844 -2,940 1,611 2,780 1,604 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 12,769 13,314 7,176 2,230 4,988 3,079 350 -1,241 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 631 602 514 64 93 125 137 158 1. Seasonal factors are no longer calculated for lines 12 through 41. 4. Primarily associated with military sales contracts and other transactions 2. Data are on an international accounts (IA) basis. Differs from the Census arranged with or through foreign official agencies. basis data, shown in table 3.11, for reasons of coverage and timing; military 5. Consists of investments in U.S. corporate stocks and in debt securities of exports 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'" 1983 IItteemm 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 220,626 233,677 212,193 17,463 17,320 16,671 15,852 16,347 17,393 16,326 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 244,871 261,305 243,952 22,930 20,581 21,006 18,892 19,154 20,021 19,015 3 Trade balance -24,245 -27,628 -31,759 -5,467 -3,261 -4,335 -3,041 -2,808 -2,628 -2,689 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 of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of combined with other military transactions and reported separately in the "service export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in account" in table 3.10, line 6). On the import side, additions are made for gold, the Census basis trade data; this adjustment has been made for all data shown in ship purchases, imports of electricity from Canada and other transactions; the table. Beginning with 1982 data, the value of imports are on a customs military payments are excluded and shown separately as indicated above. valuation basis. The Census basis data differ from merchandise trade data shown in table 3.10, SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" U.S. International Transactions Summary, for reasons of coverage and timing. On (U.S. Department of Commerce, Bureau of the Census). the export side, the largest adjustments are: (1) the addition of exports to Canada 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1982 1983 TTyyppee 11997799 11998800 11998811 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Total1 18,956 26,756 30,075 31,864 31,711 34,006 33,958 33,936 34,233 34,261 2 Gold stock, including Exchange Stabilization Fund1 11,172 11,160 11,151 11,148 11,148 11,148 11,148 11,144 11,139 11,138 3 Special drawing rights2-3 2,724 2,610 4,095 4,809 4,801 4,929 5,250 5,267 5,284 5,229 4 Reserve position in International Monetary Fund2 1,253 2,852 5,055 6,406 6,367 7,185 7,348 8,035 8,594 9,293 5 Foreign currencies4-5 3,807 10,134 9,774 8,630 9,395 10,744 10,212 9,490 9,216 8,601 1. Gold held under earmark at Federal Reserve Banks for foreign and interna- 3. Includes allocations by the International Monetary Fund of SDRs as follows: tional 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 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 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in against receipt of foreign currencies, if any. 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 1983 AAsssseettss 11997799 11998800 11998811 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Deposits 429 411 505 396 326 386 328 366 352 424 Assets held in custody 2 U.S. Treasury securities1 95,075 102,417 104,680 106,117 107,636 107,467 112,544 115,872 116,428 114,999 3 Earmarked gold 15,169 14,965 14,804 14,726 14,706 14,711 14,716 14,717 14,752 14,726 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. NOTE. Excludes deposits and U.S. Treasury securities held for international Treasury securities payable in dollars and in foreign currencies. and regional organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • April 1983 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1982 1983 AAsssseett aaccccoouunntt 11997799 11998800 11998811 July Aug. Sept. Oct. Nov. Dec. Jan.p All foreign countries 1 Total, all currencies 364,409 401,135 462,790 465,933' 471,710 471,085 463,601 468,376 468,738 462,285 2 Claims on United States 32,302 28,460 63,743 82,558' 88,936 90,267 89,036 90,844' 91,899 89,521 3 Parent bank 25,929 20,202 43,267 55,%5r 60,315 60,872 61,283 62,476' 61,789 59,414 4 Other 6,373 8,258 20,476 26,593 28,621 29,395 27,753 28,368' 30,110 30,107 5 Claims on foreigners 317,330 354,960 378,899 364,126' 362,437 360,462 354,373 357,104' 357,387 353,254 6 Other branches of parent bank 79,662 77,019 87,821 89,446 91,593 93,283 90,030 91,894' 90,907 89,343 7 Banks 123,420 146,448 150,708 142,852' 138,517 135,454 133,365 133,269' 133,517 130,667 8 Public borrowers 26,097 28,033 28,197 24,700r 24,521 24,333 23,850 23,340 23,971 24,464 9 Nonbank foreigners 88,151 103,460 112,173 107,128' 107,806 107,392 107,128 108,601 108,992 108,780 10 Other assets 14,777 17,715 20,148 19,249r 20,337 20,356 20,192 20,428 19,452 19,510 11 Total payable in U.S. dollars 267,713 291,798 350,678 359,981' 366,148 369,746 361,804 363,483 361,167 355,008 12 Claims on United States 31,171 27,191 62,142 80,915' 87,328 88,613 87,316 88,971' 90,179 87,820 13 Parent bank 25,632 19,896 42,721 55,286' 59,634 60,207 60,538 61,662' 61,133 58,639 14 Other 5,539 7,295 19,421 25,629 27,694 28,406 26,778 27,309' 29,046 29,181 15 Claims on foreigners 229,120 255,391 276,882 267,267 266,420 268,253 261,896 261,701' 258,958 255,367 16 Other branches of parent bank 61,525 58,541 69,398 72,488 74,252 77,470 74,032 74,759 73,303 71,051 17 Banks 96,261 117,342 122,055 115,072 111,712 110,591 107,448 106,636' 106,014 103,269 18 Public borrowers 21,629 23,491 22,877 19,306 19,043 18,984 18,659 18,187 18,301 18,717 19 Nonbank foreigners 49,705 56,017 62,552 60,401 61,413 61,208 61,757 62,119 61,340 62,330 20 Other assets 7,422 9,216 11,654 11,799 12,400 12,880 12,592 12,811 12,030 11,821 United Kingdom 21 Total, all currencies 130,873 144,717 157,229 164,106 164,523 167,189 164,582 165,687 161,067 157,464 22 Claims on United States 11,117 7,509 11,823 23,962 27,031 27,534 27,829 28,677 27,354 27,175 23 Parent bank 9,338 5,275 7,885 19,680 22,730 22,970 23,717 24,278 23,017 22,539 24 Other 1,779 2,234 3,938 4,282 4,301 4,564 4,112 4,399 4,337 4,636 25 Claims on foreigners 115,123 131,142 138,888 133,964 130,814 132,746 129,913 130,666 127,694 124,354 26 Other branches of parent bank 34,291 34,760 41,367 37,250 36,937 40,385 37,013 38,319 37,000 34,955 27 Banks 51,343 58,741 56,315 56,428 53,582 52,203 52,568 51,414 50,757 49,497 28 Public borrowers 4,919 6,688 7,490 6,456 6,286 6,086 6,157 6,170 6,240 6,421 29 Nonbank foreigners 24,570 30,953 33,716 33,830 34,009 34,072 34,175' 34,763 33,697 33,481 30 Other assets 4,633 6,066 6,518 6,180 6,678 6,909 6,840 6,344 6,019 5,935 31 Total payable in U.S. dollars 94,287 99,699 115,188 125,247 126,344 131,129 127,517 128,863 123,740 120,233 32 Claims on United States 10,746 7,116 11,246 23,421 26,514 26,919 27,255 28,093 26,761 26,581 33 Parent bank 9,297 5,229 7,721 19,451 22,496 22,758 23,478 24,035 22,756 22,250 34 Other 1,449 1,887 3,525 3,970 4,018 4,161 3,777 4,058 4,005 4,331 35 Claims on foreigners 81,294 89,723 99,850 97,699 95,293 99,008 95,269 95,870 92,228 89,137 36 Other branches of parent bank 28,928 28,268 35,439 32,007 31,414 35,703 32,243 33,154 31,648 29,380 37 Banks 36,760 42,073 40,703 42,515 40,321 39,786 39,077 38,310 36,717 35,645 38 Public borrowers 3,319 4,911 5,595 4,513 4,336 4,214 4,251 4,281 4,329 4,600 39 Nonbank foreigners 12,287 14,471 18,113 18,664 19,222 19,305 19,698 20,125 19,534 19,512 40 Other assets 2,247 2,860 4,092 4,127 4,537 5,202 4,993 4,900 4,751 4,515 Bahamas and Caymans 41 Total, all currencies 108,977 123,837 149,051 141,099 144,194 140,614 139,438 140,939 144,841 142,561 42 Claims on United States 19,124 17,751 46,546 52,646 56,087 55,467 55,713 57,076' 59,374 56,960 43 Parent bank 15,196 12,631 31,643 31,242 32,822 32,155 32,927 34,022' 34,653 32,511 44 Other 3,928 5,120 14,903 21,404 23,265 23,312 22,786 23,054' 24,721 24,449 45 Claims on foreigners 86,718 101,926 98,002 84,416 83,835 81,054 79,539 79,185' 81,168 81,512 46 Other branches of parent bank 9,689 13,342 12,951 17,538 17,806 17,772 17,955 18,066 18,720 20,118 47 Banks 43,189 54,861 55,096 44,229 43,616 41,333 40,439 41,025' 42,419 40,471 48 Public borrowers 12,905 12,577 10,010 7,031 7,036 6,999 6,743 6,310 6,411 6,434 49 Nonbank foreigners 20,935 21,146 19,945 15,618 15,377 14,950 14,402 13,784 13,618 14,489 50 Other assets 3,135 4,160 4,503 4,037 4,272 4,093 4,186 4,678 4,299 4,089 51 Total payable in U.S. dollars 102,368 117,654 143,686 135,619 138,771 136,077 134,607 135,648 139,290 136,724 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.14 Continued 1982 1983 LLiiaabbiilliittyy aaccccoouunntt 11997799 11998800 11998811 July Aug. Sept. Oct. Nov. Dec. Jan.P All foreign countries 52 Total, all currencies 364,409 401,135 462,790 465,933' 471,710 471,085 463,601 468,376 468,738 462,285 To United States 66,689 91,079 137,712 164,538' 167,661 170,430 169,312 171,762' 176,779 178,284 54 Parent bank 24,533 39,286 56,289 60,973' 64,419 67,028 64,102 66,254 73,408 79,811 55 Other banks in United States 13,968 14,473 19,197 31,555 32,425 33,763 32,607 31,764 33,401 32,779 56 Nonbanks 28,188 37,275 62,226 72,010 70,817 69,639 72,603 73,744' 69,970 65,694 57 To foreigners 283,510 295,411 305,630 281,849' 283,954 280,450 274,222 276,287' 272,164 265,591 58 Other branches of parent bank 77,640 75,773 86,396 86,802' 92,202 93,753 91,658 91,270 91,824 89,318 59 Banks 122,922 132,116 124,906 106,016' 103,466 99,966 98,259 98,209 96,622 92,832 60 Official institutions 35,668 32,473 25,997 20,239 20,004 20,527 19,440 21,095 19,614 20,250 61 Nonbank foreigners 47,280 55,049 68,331 68,792' 68,282 66,204 64,865 65,713' 64,104 63,191 62 Other liabilities 14,210 14,690 19,448 19,546' 20,095 20,205 20,067 20,327 19,795 18,410 63 Total payable in U.S. dollars 273,857 303,281 364,390 376,129' 381,898 385,440 377,121 379,142 378,455 370,457 64 To United States 64,530 88,157 134,645 161,250' 164,403 167,534 166,377 168,291' 173,304 174,656 65 Parent bank 23,403 37,528 54,437 58,958' 62,369 65,114 62,191 63,963 71,086 77,536 66 Other banks in United States 13,771 14,203 18,883 31,224' 32,162 33,508 32,362 31,428 33,036 32,255 67 Nonbanks 27,356 36,426 61,325 71,068' 69,872 68,912 71,824 72,900' 69,182 64,865 68 To foreigners 201,514 206,883 217,602 203,767 205,709 206,553 199,297 198,938' 193,933 185,663 69 Other branches of parent bank 60,551 58,172 69,299 70,429 75,344 78,499 76,237 74,621 74,593 71,463 70 Banks 80,691 87,497 79,594 66,520 63,959 62,535 59,782 58,829 57,300 52,233 71 Official institutions 29,048 24,697 20,288 15,737 15,672 16,607 15,253 16,774 15,055 15,940 72 Nonbank foreigners 31,224 36,517 48,421 51,081 50,734 48,912 48,025 48,714' 46,985 46,027 73 Other liabilities 7,813 8,241 12,143 11,112 11,786 11,353 11,447 11,913 11,218 10,138 United Kingdom 74 Total, all currencies 130,873 144,717 157,229 164,106 164,523 167,189 164,582 165,687 161,067 157,464 75 To United States 20,986 21,785 38,022 46,965 49,001 53,919 53,777 54,003 53,954 52,650 76 Parent bank 3,104 4,225 5,444 6,679 8,022 11,336 10,568 10,597 13,091 14,287 77 Other banks in United States 7,693 5,716 7,502 11,215 11,616 13,280 12,567 12,374 12,205 12,343 78 Nonbanks 10,189 11,844 25,076 29,071 29,363 29,303 30,642 31,032 28,658 26,020 79 To foreigners 104,032 117,438 112,255 109,105 107,268 104,967 102,611 103,927 99,567 97,827 80 Other branches of parent bank 12,567 15,384 16,545 18,010 18,666 19,123 18,399 19,372 18,361 19,343 81 Banks 47,620 56,262 51,336 48,541 47,502 45,526 45,601 44,266 44,020 41,073 82. Official institutions 24,202 21,412 16,517 12,076 12,006 12,348 11,379 12,940 11,504 12,377 83 Nonbank foreigners 19,643 24,380 27,857 30,478 29,094 27,970 27,232 27,349 25,682 25,034 84 Other liabilities 5,855 5,494 6,952 8,036 8,254 8,303 8,194 7,757 7,546 6,987 85 Total payable in U.S. dollars 95,449 103,440 120,277 131,199 132,536 137,268 133,591 135,188 130,261 126,286 86 To United States 20,552 21,080 37,332 46,129 48,266 53,262 53,146 53,056 53,029 51,808 87 Parent bank 3,054 4,078 5,350 6,603 7,928 11,223 10,442 10,306 12,814 14,105 88 Other banks in United States 7,651 5,626 7,249 11,048 11,510 13,142 12,472 12,188 12,026 12,128 89 Nonbanks 9,847 11,376 24,733 28,478 28,828 28,897 30,232 30,562 28,189 25,575 90 To foreigners 72,397 79,636 79,034 81,207 79,954 80,025 76,519 77,982 73,477 71,000 91 Other branches of parent bank 8,446 10,474 12,048 14,202 14,514 15,548 14,614 15,310 14,300 15,081 97 Banks 29,424 35,388 32,298 32,364 31,898 31,187 30,404 29,092 28,810 25,177 93 Official institutions 20,192 17,024 13,612 10,200 10,322 11,012 9,806 11,198 9,668 10,657 94 Nonbank foreigners 14,335 16,750 21,076 24,441 23,220 22,278 21,895 22,382 20,699 20,085 95 Other liabilities 2,500 2,724 3,911 3,863 4,316 3,981 3,926 4,150 3,755 3,478 Bahamas and Caymans 96 Total, all currencies 108,977 123,837 149,051 141,099 144,194 140,614 139,438 140,939 144,841 142,561 97 To United States 37,719 59,666 85,704 98,609 99,270 96,936 96,810 98,475 102,469 104,415 98 Parent bank 15,267 28,181 39,396 41,122 42,971 41,806 40,225 41,900 45,101 50,476 99 Other banks in United States 5,204 7,379 10,474 17,831 17,911 17,927 17,481 16,805 18,509 17,549 100 Nonbanks 17,248 24,106 35,834 39,656 38,388 37,203 39,104 39,770 38,859 36,390 101 To foreigners 68,598 61,218 60,012 39,740 42,039 40,965 39,793 39,603 39,919 35,900 102 Other branches of parent bank 20,875 17,040 20,641 15,018 17,348 17,690 17,421 17,566 17,541 14,688 103 Banks 33,631 29,895 23,202 11,766 11,599 10,910 10,297 10,413 10,111 9,279 104 Official institutions 4,866 4,361 3,498 2,407 2,288 2,091 2,137 1,846 1,967 1,849 105 Nonbank foreigners 9,226 9,922 12,671 10,549 10,804 10,274 9,938 9,778 10,300 10,084 106 Other liabilities 2,660 2,953 3,335 2,750 2,885 2,713 2,835 2,861 2,453 2,246 107 Total payable in U.S. dollars 103,460 119,657 145,227 137,910 140,750 137,717 136,574 137,828 141,593 139,148 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • April 1983 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1982 1983 IItteemm 11998800 11998811 Aug. Sept. Oct. Nov. Dec. Jan. Feb .p 1 Total1 164,578 169,702 169,289 171,094 171,308 168,048 172,764 175,282 172,874 By type 2 Liabilities reported by banks in the United States2 30,381 26,572 26,594 26,440 26,965 25,376 24,873 23,977 21,377 3 U.S. Treasury bills and certificates3 56,243 52,389 44,182 44,450 43,964 42,906 46,658 50,432 49,954 U.S. Treasury bonds and notes 4 Marketable 41,455 53,150 63,415 64,940 65,581 65,801 67,666 67,686 69,265 5 Nonmarketable4 14,654 11,791 9,350 9,350 9,350 8,750 8,750 8,750 7,950 6 U.S. securities other than U.S. Treasury securities5 21,845 25,800 25,748 25,914 25,448 25,215 24,817 24,437 24,328 By area 7 Western Europe1 81,592 65,484 61,120 61,350 60,723 59,355 61,409 62,469 62,021 8 Canada 1,562 2,403 1,771 2,057 2,204 2,044 2,070 2,520 2,754 9 Latin America and Caribbean 5,688 6,954 6,802 6,385 7,181 5,884 6,028 7,147 6,100 10 Asia 70,784 91,790 94,883 95,822 95,187 94,091 95,999 95,356 95,717 11 Africa 4,123 1,829 1,326 1,303 1,452 1,371 1,350 1,716 1,327 12 Other countries6 829 1,242 3,387 4,177 4,561 5,303 5,908 6,074 4,955 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, commer- agencies, and U.S. corporate stocks and bonds. cial paper, negotiable time certificates of deposit, and borrowings under repur- 6. Includes countries in Oceania and Eastern Europe. chase agreements. 3. Includes nonmarketable certificates of indebtedness (including those pay- NOTE. Based on Treasury Department data and on data reported to the able in foreign currencies through 1974) and Treasury bills issued to official Treasury Department by banks (including Federal Reserve Banks) and securities institutions of foreign countries. dealers in 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 1982 IItteemm 11997799 11998800 11998811 Mar. June Sept. Dec.P 1 Banks' own liabilities 1,918 3,748 3,767 4,290 4,783 4,973 4,751 2 Banks' own claims 2,419 4,206 5,224 5,574 6,401 6,772 7,689 3 Deposits 994 2,507 3,398 3,532 3,526 3,429 4,241 4 Other claims 1,425 1,699 1,826 2,042 2,875 3,343 3,448 5 Claims of banks' domestic customers1 580 962 971 944 921 506 676 1. Assets owned by customers of the reporting bank located in the United NOTE. Data on claims exclude foreign currencies held by U.S. monetary States that represent claims on foreigners held by reporting banks for the accounts authorities, of their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-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 1983 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11997799 11998800 11998811..44 Aug. Sept. Oct. Nov. Dec/ Jan. Feb.? 1 All foreigners 187,521 205,297 243,279 293,122 298,515 297,617 303,015 305,320 304,472 302,676 2 Banks' own liabilities 117,196 124,791 162,974 217,564 220,427 218,741 226,307 225,379 219,058 217,776 3 Demand deposits 23,303 23,462 19,628 15,840 15,418 17,064 17,216 16,017 16,083 17,540 4 Time deposits1 13,623 15,076 28,903 62,208 62,332 62,236 62,976 67,072 64,349 65,183 5 Other2 16,453 17,583 17,398 24,211 23,520 22,842 24,382 23,791 23,057 20,229 6 Own foreign offices3 63,817 68,670 97,044 115,305 119,158 116,600 121,733 118,499 115,569 114,824 7 Banks' custody liabilities4 70,325 80,506 80,305 75,558 78,089 78,876 76,708 79,941 85,414 84,900 8 U.S. Treasury bills and certificates5 48,573 57,595 55,316 49,646 51,572 53,374 52,138 55,614 62,137 6611,,883322 9 Other negotiable and readily transferable instruments6 19,396 20,079 19,019 22,134 22,437 21,787 20,965 20,625 19,347 19,192 10 Other 2,356 2,832 5,970 3,778 4,080 3,715 3,605 3,702 3,930 3,877 11 Nonmonetary international and regional organizations7 2,356 2,344 2,721 5,073 5,050 6,036 6,465 4,597 6,611 5,969 12 Banks' own liabilities 714 444 638 3,093 2,752 2,337 3,387 1,584 1,787 1,695 13 Demand deposits 260 146 262 265 194 261 257 106 284 195 14 Time deposits1 151 85 58 453 734 431 969 1,339 1,333 1,367 15 Other2 303 212 318 2,376 1,825 1,645 2,161 139 170 134 16 Banks' custody liabilities4 1,643 1,900 2,083 1,980 2,298 3,699 3,078 3,013 4,824 4,275 17 U.S. Treasury bills and certificates 102 254 541 328 676 2,160 1,774 1,621 33,,660033 33,,115533 18 Other negotiable and readily transferable instruments6 1.538 1,646 1,542 1,652 1,621 1,539 1,304 1,392 1,221 1,122 19 Other 2 0 0 0 0 0 0 0 0 0 20 Official institutions8 78,206 86,624 79,037 70,776 70,891 70,930 68,282 71,531 74,409 71,331 21 Banks' own liabilities 18,292 17,826 16,813 16,323 16,646 16,898 16,676 16,526 16,550 14,580 22 Demand deposits 4,671 3,771 2,564 1,994 2,526 2,138 2,127 1.981 2,168 2,062 23 Time deposits' 3,050 3,612 4,197 5,859 5,312 6,132 5,524 5,489 4,907 5,481 24 Other2 10,571 10,443 10,052 8,470 8,809 8,629 9,025 9,057 9,476 7,036 25 Banks' custody liabilities4 59,914 68,798 62,224 54,453 54,245 54,031 51,607 55.006 57.859 56,751 26 U.S. Treasury bills and certificates5 47,666 56,243 52,389 44,182 44,450 43,964 42,906 46,658 50,432 4499,,995544 27 Other negotiable and readily transferable instruments6 12,196 12,501 9,787 10,234 9,755 10,033 8.672 8,319 7,391 6,764 28 Other 52 54 47 37 39 34 28 28 35 33 29 Banks9 88,316 96,415 135,558 177,557 181,452 179,672 185,792 185,097 178,022 178,982 30 Banks' own liabilities 83,299 90,456 123,839 163,348 165,627 164,054 169,525 168,679 161,200 161,000 31 Unaffiliated foreign banks 19,482 21,786 26,795 48,043 46,469 47,454 47,792 50,179 45,630 46,175 32 Demand deposits 13,285 14,188 11,614 8,765 8,138 9,887 9,739 8,733 8,185 9,746 33 Time deposits1 1,667 1,703 8,695 26,698 26,503 26,099 26,220 28.267 25,558 25,182 34 Other2 4,530 5,895 6,486 12,580 11,828 11,468 11,833 13.179 11,888 11,247 35 Own foreign offices3 63,817 68,670 97,044 115,305 119,158 116,600 121,733 118,499 115,569 114,824 36 Banks' custody liabilities4 5,017 5,959 11,718 14,209 15,825 15,618 16,267 16,419 16,822 17,982 37 U.S. Treasury bills and certificates 422 623 1,687 3,970 4,897 5,634 5,792 5,809 6,292 66,,777722 38 Other negotiable and readily transferable instruments6 2,415 2,748 4,421 7,102 7,916 7,181 7,782 7,844 7,698 8,334 39 Other 2,179 2.588 5,611 3,138 3,012 2,803 2,693 2,766 2,833 2,876 40 Other foreigners 18,642 19,914 25,964 39,716 41,123 40,980 42,476 44,095 45,429 46,394 41 Banks' own liabilities 14,891 16,065 21,684 34,800 35,401 35,452 36,719 38,591 39.521 40,502 42 Demand deposits 5,087 5,356 5,189 4,816 4,560 4,778 5,093 5.197 5,447 5,537 43 Time deposits 8,755 9,676 15,953 29,199 29,783 29,574 30,263 31,977 32,551 33,153 44 Other2 1,048 1,033 543 785 1,059 1,100 1,363 1,416 1,524 1,812 45 Banks' custody liabilities4 3,751 3,849 4,279 4,916 5,721 5,528 5,756 5,504 5,908 5,893 46 U.S. Treasury bills and certificates 382 474 699 1,167 1,548 1,615 1,666 1.525 1,810 11,,995533 47 Other negotiable and readily transferable instruments6 3,247 3,185 3,268 3,147 3,146 3,035 3,207 3,070 3,037 22,,997722 48 Other 123 190 312 603 1.028 878 884 908 1,062 996688 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,984 10,745 10,747 13,921 13,533 13,999 13,408 14,296 13,367 11,611 1. Excludes negotiable time certificates of deposit, which are included in 6. Principally bankers acceptances, commercial paper, and negotiable time "Other negotiable and readily transferable instruments." certificates 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 the Inter-American and Asian Development Banks. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 8. Foreign central banks and foreign central governments, and the Bank for regulatory agencies. Agencies, branches, and majority-owned subsidiaries of International Settlements. foreign banks: principally amounts due to head office or parent foreign bank, and 9. Excludes central banks, which are included in "Official institutions." foreign branches, agencies or wholly owned subsidiaries of head office or parent • Liabilities and claims of banks in the United States were increased, foreign bank. beginning in December 1981, by the shift from foreign branches to international 4. Financial claims on residents of the United States, other than long-term banking facilities in the United States of liabilities to. and claims on, foreign securities, held by or through reporting banks. residents. 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 • April 1983 3.17 Continued 1982 1983 AArreeaa aanndd ccoouunnttrryy 11997799 11998800 11998811AA Aug. Sept. Oct. Nov. Dec/ Jan. Feb.P 1 Total 187,521 205,297 243,279 293,122 298,515 297,617 303,015 305,320 304,472 302,676 2 Foreign countries 185,164 202,953 240,558 288,049 293,466 291,581 296,550 300,723 297,861 296,707 3 Europe 90,952 90,897 91,019 112,017 114,263 114,895 117,245 117,695 118,800 115,990 4 Austria 413 523 587 531 537 508 441 512 473 513 Belgium-Luxembourg 2,375 4,019 4,117 3,218 3,259 2,782 2,499 2,517 2,264 2,295 6 Denmark 1,092 497 333 446 149 166 221 509 996 1,197 V Finland 398 455 296 224 328 478 572 748 473 369 8 France 10,433 12,125 8,486 8,145 7,720 7,358 7,065 8,169 8,498 7,723 9 Germany 12,935 9,973 7,665 5,397 5,331 5,360 6,093 5,375 5,807 6,217 10 Greece 635 670 463 559 471 516 496 537 589 595 11 Italy 7,782 7,572 7,290 6,703 6,714 5,541 4,779 5,674 4,938 4,514 12 Netherlands 2,337 2,441 2,823 2,838 2,899 3,102 3,100 3,362 3,770 3,196 13 Norway 1,267 1,344 1,457 1,634 1,773 2,026 2,197 11,,556677 1,476 1,406 14 Portugal 557 374 354 453 386 356 453 338888 398 370 15 Spain 1,259 1,500 916 1,223 1,106 1,315 1,301 1,405 1,316 1,523 16 Sweden 2,005 1,737 1,545 1,278 1,324 2,000 1,615 1,380 1,315 1,645 1/ Switzerland 17,954 16,689 18,720 25,014 26,519 26,736 27,994 28,999 28,996 30,340 18 Turkey 120 242 518 287 301 317 255 296 190 251 19 United Kingdom 24,700 22,680 28,287 46,881 48,478 48,809 50,276 48,169 50,344 47,195 20 Yugoslavia 266 681 375 317 307 390 470 499 470 452 21 Other Western Europe1 4,070 6,939 6,245 6,381 6,294 6,484 6,889 6,965 6,028 5,802 22 U.S.S.R 52 68 49 47 47 111 45 50 47 41 23 Other Eastern Europe2 302 370 493 440 322 541 486 573 412 345 24 Canada 7,379 10,031 10,250 12,194 11,623 12,163 11,719 12,217 11,079 13,616 25 Latin America and Caribbean 49,686 53,170 84,685 106,882 109,110 106,616 110,345 112,916 110,142 109,242 26 Argentina 1,582 2,132 2,445 2,713 3,359 3,482 3,432 3,577 4,833 4,893 21 Bahamas 15,255 16,381 34,400 41,502 42,164 41,100 44,324 44,026 4422,,447799 4433,,220000 28 Bermuda 430 670 765 1,289 1,519 1,507 1,596 1,572 11,,998899 11,,888844 29 Brazil 1,005 1,216 1,568 1,865 1,752 2,020 1,865 2,010 1,915 2,010 30 British West Indies 11,138 12,766 17,794 22,871 23,294 23,071 24,302 26,372 24,640 23,937 31 Chile 468 460 664 1,170 1,293 1,438 1,444 1,626 1,341 1,280 32 Colombia 2,617 3,077 2,993 2,636 2,516 2,407 22,,442266 2,593 2,384 2,335 a Cuba 13 6 9 9 7 7 88 9 10 10 34 Ecuador 425 371 434 478 524 556 519 453 472 498 35 Guatemala 414 367 479 616 639 636 639 670 682 669 36 Jamaica 76 97 87 136 121 118 108 126 115 103 il Mexico 4,185 4,547 7,163 9,259 8,468 8,031 8,135 7,967 7,925 7,380 38 Netherlands Antilles 499 413 3,182 3,759 3,713 3,677 3,518 3,597 3,756 3,473 39 Panama 4,483 4,718 4,847 4,656 6,172 4,688 4,795 4,738 4,923 4,981 40 Peru 383 403 694 984 974 11,,003311 959 1,147 1,052 903 41 Uruguay 202 254 367 665 721 884444 651 759 747 817 42 Venezuela 4,192 3,170 4,245 9,219 8,625 8,796 8,315 8,382 7,627 7,659 43 Other Latin America and Caribbean 2,318 2,123 2,548 3,056 3,249 3,207 3,309 3,291 3,252 3,212 44 33,005 42,420 5500,,000055 5500,,885544 5511,,111155 4499,,880000 4488,,559977 4488,,667799 4488,,119944 4499,,553322 China 45 Mainland 49 49 158 245 254 216 214 203 220 196 46 Taiwan 1,393 1,662 2,082 2,323 2,490 2,568 2,786 2,716 3,139 3,466 47 Hong Kong 1,672 2,548 3,950 4,551 4,945 4,957 4,847 4,465 4,542 4,988 48 India 527 416 385 655 407 449 507 433 514 962 49 Indonesia 504 730 640 593 436 748 534 849 11,,115566 614 50 Israel 707 883 592 486 583 622 705 606 660088 515 51 Japan 8,907 16,281 20,750 19,291 18,895 16,860 15,680 16,098 15,836 16,613 52 Korea 993 1,528 2,013 1,712 1,905 1,886 1,791 1,692 11,,447733 1,458 53 Philippines 795 919 874 728 712 736 768 770 668800 787 54 Thailand 277 464 534 369 310 365 349 629 482 529 55 Middle-East oil-exporting countries3 15,300 14,453 13,174 14,106 14,026 14,050 14,396 13,433 12,332 11,672 56 Other Asia 1,879 2,487 4,854 5,795 6,152 6,344 6,020 6,784 7,210 7,731 57 Africa 3,239 5,187 3,180 2,586 2,783 3,369 3,192 3,070 3,331 3,087 58 Egypt 475 485 360 405 385 242 373 398 500 416 59 Morocco 33 33 32 47 63 54 66 75 51 51 60 South Africa 184 288 420 341 344 279 564 277 276 317 61 Zaire 110 57 26 25 20 23 22 23 25 31 62 Oil-exporting countries4 1,635 3,540 1,395 908 1,074 1,669 1,250 1,280 1,603 1,333 63 Other Africa 804 783 946 860 897 1,103 918 1,016 877 939 64 Other countries 904 1,247 1,419 3,516 4,572 4,738 5,452 6,146 6,314 5,241 65 Australia 684 950 1,223 3,317 4,355 4,530 5,224 5,904 6,080 5,052 66 All other 220 297 196 199 216 207 228 243 235 190 67 Nonmonetary international and regional organizations 2,356 2,344 2,721 5,073 5,050 6,036 6,465 4,597 6,611 5,969 68 International 1,238 1,157 1,661 3,936 3,934 5,141 5,522 3,705 5,769 5,186 69 Latin American regional 806 890 710 776 719 573 533 517 527 487 70 Other regional5 313 296 350 362 397 322 410 375 316 296 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Asian, African, Middle Eastern, and European regional organizations, includes Eastern European countries not listed in line 23. except the Bank for Internationa] Settlements, which is included in "Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Western Europe." Democratic Republic, Hungary, Poland, and Romania. • 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

Nonbank-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 1983 AArreeaa aanndd ccoouunnttrryy 11997799 11998800 11998811AA Aug. Sept. Oct. Nov. Dec/ Jan. Feb.? 1 Total 133,943 172,592 251,047 328,621 339,367 334,138 336,566 353,733 356,952 359,376 2 Foreign countries 133,906 172,514 250,991 328,515 339,323 334,082 336,509 353,665 356,879 359,299 3 Europe 28,388 32,108 49,058 70,807 76,481 78,346 79,213 84,005 83,505 84,010 4 Austria 284 236 121 186 146 173 197 216 234 226 5 Belgium-Luxembourg 1,339 1,621 2,843 4,421 4,804 4,962 5,404 5,115 4,753 5,352 6 Denmark 147 127 187 323 358 396 406 554 609 650 7 Finland 202 460 546 776 806 813 904 990 984 967 8 France 3,322 2,958 4,124 5,960 5,815 6,218 6,638 6,863 7,220 7,359 9 Germany 1,179 948 936 1,565 1,609 1,522 1,766 1,860 1,407 1,740 10 Greece 154 256 333 270 283 335 373 452 576 652 11 Italy 1,631 3,364 5,240 6,569 6,733 7,346 7,718 7,498 7,553 7,006 12 Netherlands 514 575 682 1,085 1,099 1,285 1,122 1,428 1,470 1,358 13 Norway 276 227 384 482 575 544 650 572 625 587 14 Portugal 330 331 529 970 998 1,018 924 943 843 834 15 Spain 1,051 993 2,100 3,520 3,469 3,558 3,633 3,730 3,692 3,217 16 Sweden 542 783 1,205 1,693 2,398 2,799 2,804 3,030 3,113 2,693 17 Switzerland 1,165 1,446 2,213 1,589 1,859 1,636 1,516 1,639 1,568 1,497 18 Turkey 149 145 424 600 605 603 598 560 527 616 19 United Kingdom 13,795 14,917 23,655 37,181 41,370 41,652 40,862 44,754 44,654 45,568 20 Yugoslavia 611 853 1,224 1,220 1,196 1,248 1,261 1,418 1,382 1,417 21 Other Western Europe1 175 179 209 286 325 266 380 378 310 319 22 U.S.S.R 268 281 377 296 246 242 227 263 233 245 23 Other Eastern Europe2 1,254 1,410 1,725 1,814 1,787 1,728 1,832 1,741 1,752 1,708 24 Canada 4,143 4,810 9,164 12,083 11,852 12,977 12,526 14,216 14,864 15,523 75 Latin America and Caribbean 67,993 92,992 138,121 181,708 186,355 179,981 180,868 187,379 191,586 192,883 26 Argentina 4,389 5,689 7,522 10,936 10,964 11,019 10,816 10,960 11,231 11,531 77 Bahamas 18,918 29,419 43,437 54,706 55,340 51,692 52,204 56,300 57,617 56,421 28 Bermuda 496 218 346 385 429 602 957 603 578 534 29 Brazil 7,713 10,496 16,918 22,146 23,081 22,970 22,978 23,204 23,036 23,681 30 British West Indies 9,818 15,663 21,920 28,519 29,982 28,223 27,323 29,162 32,760 33,349 31 Chile 1,441 1,951 3,690 5,367 5,394 5,276 5,091 5,560 5,229 5,401 32 Colombia 1,614 1,752 2,018 2,650 2,826 2,838 2,895 3,185 3,221 3,145 33 Cuba 4 3 3 3 3 3 3 3 11 2 34 Ecuador 1,025 1,190 1,531 2,048 2,127 2,057 2,101 2,053 2,038 2,140 35 Guatemala3 134 137 124 116 119 111 140 124 129 120 36 Jamaica3 47 36 62 508 387 151 218 181 206 199 37 Mexico 9,099 12,595 22,408 29,347 29,596 29,371 29,508 29,449 29,422 30,612 38 Netherlands Antilles 248 821 1,076 778 825 688 731 814 813 907 39 Panama 6,041 4,974 6,779 9,842 10,583 9,983 10,575 10,133 10,035 9,277 40 Peru 652 890 1,218 2,062 2,252 2,244 2.259 2.332 2,299 2,330 41 Uruguay 105 137 157 457 550 572 609 681 687 680 42, Venezuela 4,657 5,438 7,069 9,800 9,867 9,925 10,250 10,682 10,228 10,382 43 Other Latin America and Caribbean 1,593 1,583 1,844 2,039 2,032 2,257 2,211 1,953 2,045 2,173 44 Asia 30,730 39,078 49,770 57,229 57,335 55,678 56,671 60,629 59,087 59,069 China 45 Mainland 35 195 107 127 126 139 194 210 198 195 46 Taiwan 1,821 2,469 2,461 1,891 1,949 2,020 2,255 2,285 2,223 1,973 47 Hong Kong 1,804 2,247 4,126 6,447 6,723 5,976 6,201 7,705 7,081 7,217 48 India 92 142 123 235 275 254 258 222 230 201 49 Indonesia 131 245 346 297 292 315 314 342 370 429 50 Israel 990 1,172 1,562 1,534 1,623 1,748 1,895 2,043 1,835 1,762 51 Japan 16,911 21,361 26,757 29,491 28,496 26,722 25,952 27,199 26,796 26,750 52 Korea 3,793 5,697 7,324 6,967 7,365 7,790 8,536 9,389 9,052 9,250 53 Philippines 737 989 1,817 2,611 2,508 2,560 2,467 2,555 2,444 2,609 54 Thailand 933 876 564 388 409 442 501 643 649 652 55 Middle East oil-exporting countries4 1,548 1,432 1,575 2,633 2,591 2,848 3,176 3,087 3,428 3,394 56 Other Asia 1,934 2,252 3,009 4,607 4,978 4,865 4,923 4,948 4,781 4,636 57 Africa 1,797 2,377 3,503 4,811 5,176 5,017 5,274 5,350 5,608 5,532 58 Egypt 114 151 238 399 386 365 349 322 310 286 59 Morocco 103 223 284 368 376 367 384 347 342 358 60 South Africa 445 370 1,011 1,574 1,775 1,744 1,832 2,013 2,061 2,188 61 Zaire 144 94 112 58 59 61 58 57 57 55 62 Oil-exporting countries5 391 805 657 761 842 762 903 803 914 845 63 Other 600 734 1,201 1,651 1,738 1.718 1,747 1,807 1,924 1,800 64 Other countries 855 1,150 1,376 1,878 2,125 2,083 1,957 2,086 2,229 2,283 65 Australia 673 859 1,203 1,534 1,792 1,713 1,528 1,713 1,715 1,705 66 All other 182 290 172 344 332 370 429 373 514 578 67 Nonmonetary international and regional organizations6 36 78 56 106 44 56 57 68 73 77 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 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German "Other Western Europe." Democratic 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 • Liabilities and claims of banks in the United States were increased, United Arab Emirates (Trucial States). beginning 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 • April 1983 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 1983 TTyyppee ooff ccllaaiimm 11997799 11998800 11998811AA Aug. Sept. Oct. Nov. Dec/ Jan. Feb.P 1 Total 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,666666699999998888888 222222288888886666666,,,,,,,444444411111115555555 333333377777776666666,,,,,,,999999922222223333333 333333399999993333333,,,,,,,666666644444442222222 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,000000044444447777777 328,621 333333333333339999999,,,,,,,333333366666667777777 334,138 336.566 333333355555553333333,,,,,,,777777733333333333333 356,952 359,376 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 11111115555555,,,,,,,999999933333337777777 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,333333311111116666666 41,758 44444442222222,,,,,,,666666688888882222222 42,459 42.280 44444444444444,,,,,,,666666600000001111111 44,389 45,462 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 44444447777777,,,,,,,444444422222228888888 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666644444447777777 118,642 111111122222225555555,,,,,,,777777766666661111111 116,870 118,060 111111122222227777777,,,,,,,222222277777775555555 133,321 134.475 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,000000088888886666666 109,143 111111111111111111111,,,,,,,444444499999999999999 114,301 115,223 111111111111119999999,,,,,,,333333322222227777777 116,220 117,731 66 DDeeppoossiittss 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 22222222222222,,,,,,,999999977777779999999 40,929 44444440000000,,,,,,,777777700000005555555 42.024 41.113 44444443333333,,,,,,,000000011111112222222 42.048 43,375 77 OOtthheerr 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,111111100000007777777 68,214 77777770000000,,,,,,,777777799999994444444 72,278 74,109 77777776666666,,,,,,,333333311111115555555 74,172 74.356 88 AAllll ootthheerr ffoorreeiiggnneerrss 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999999999998888888 59,078 55555559999999,,,,,,,444444422222224444444 60,508 61,003 66666662222222,,,,,,,555555533333330000000 63,021 61,708 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,333333366666668888888 33333337777777,,,,,,,555555555555556666666 33333339999999,,,,,,,999999900000009999999 999999955555555555555 888888888888885555555 1111111,,,,,,,333333377777778888888 1111111.......333333388888889999999 2222222,,,,,,,222222222222226666666 11 Negotiable and readily transferable 11111113333333,,,,,,,111111100000000000000 11111115555555,,,,,,,555555577777774444444 22222225555555,,,,,,,777777755555552222222 22222229999999.......000000044444447777777 33333330000000,,,,,,,666666622222227777777 12 Outstanding collections and other 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,111111122222220000000 7777777,,,,,,,000000055555556666666 13 MEMO: Customer liability on 11111118888888,,,,,,,000000022222221111111 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,555555511111117777777 33333335555555,,,,,,,222222277777773333333 33333338888888,,,,,,,333333399999991111111 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 . . . 22,333 24,511 39,831 43,911 43,649 45,537 46,884 40,967 38,263 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 subsidiaries consolidated in "Consolidated Report of Condition" filed with bank certificates of deposit denominated in U.S. dollars issued by banks abroad. For regulatory agencies. Agencies, branches, and majority-owned subsidiaries of description of changes in data reported by nonbanks, see July 1979 BULLETIN, p. foreign banks: principally amounts due from head office or parent foreign bank, 550. and foreign branches, agencies, or wholly owned subsidiaries of head office or A Liabilities and claims of banks in the United States were increased, parent foreign bank. beginning in December 1981, by the shift from foreign branches to international 2. Assets owned by customers of the reporting bank located in the United banking facilities in the United States of liabilities to. and claims on, foreign States that represent claims on foreigners held by reporting banks for the account residents. of their domestic customers. NOTE. Beginning April 1978, data for banks' own claims are given on a monthly 3. Principally negotiable time certificates of deposit and bankers acceptances. basis, but the data for claims of banks' own domestic customers are available on a quarterly basis only. 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 1981 1982 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11997799 11998800 Dec. A Mar. June Sept. Dec. 1 86,181 106,748 153,839 174,506 200,493 213,028 225,853 By borrower ?. Maturity of 1 year or less' 65,152 82,555 115,818 133.035 151,622 161,257 171,852 3 Foreign public borrowers 7,233 9.974 15,099 16,573 19,397 20,115 20,999 4 All other foreigners 57,919 72,581 100,718 116,463 132,225 141,143 150,852 5 Maturity of over 1 year' 21,030 24,193 38,022 41,470 48,871 51,770 54,001 6 Foreign public borrowers 8,371 10.152 15,662 16,831 20,082 21,903 22,883 7 All other foreigners 12,659 14,041 22,360 24,639 28,789 29,867 31,118 By area Maturity of 1 year or less' 8 Europe 15,235 18.715 27,903 34,284 39,053 44,828 49,232 9 Canada 1,777 2,723 4,634 5,805 6,582 7,021 7,554 10 Latin America and Caribbean 24,928 32,034 48,473 58,244 67,975 71,597 72,922 11 21,641 26.686 31,408 30,564 33,537 33,028 37.226 17 Africa 1,077 1,757 2,457 2,890 3,259 3,621 3,692 13 All other2 493 640 943 1,249 1.217 1,163 1.225 Maturity of over 1 year' 14 Europe 4,160 5,118 8,092 8,333 9,243 10,507 11,559 1 5 Canada 1,317 1,448 1,774 1,858 2,340 1,957 1,923 16 Latin America and Caribbean 12,814 15,075 25,088 27,666 32,897 33,985 35.121 17 1,911 1.865 1,902 2,245 2,474 3,359 3,168 18 Africa 655 507 899 1,056 1,295 1,328 1,491 19 All other2 173 179 267 312 622 635 740 1. Remaining time to maturity. • Liabilities and claims of banks in the United States were increased, 2. Includes nonmonetary international and regional organizations. beginning 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 Banks' Billions of dollars, end of period 1981 1982 AArreeaa oorr ccoouunnttrryy 1199778822 11997799 11998800 Mar. June Sept. Dec. Mar. June Sept. Dec.'' 1 266.2 303.9 352.0 372.1 382.9 399.8 414.4 417.6 432.0 433.6 435.1 2 G-10 countries and Switzerland 124.7 138.4 162.1 168.5 168.3 172.2 175.2 173.7 175.0 173.4 177.2 3 Belgium-Luxembourg 9.0 11.1 13.0 13.6 13.8 14.1 13.3 13.2 14.1 13.5 13.0 4 France 12.2 11.7 14.1 14.5 14.7 16.0 15.3 15.9 16.4 15.7 16.6 5 Germany 11.3 12.2 12.1 13.3 12.1 12.7 12.9 12.5 12.7 12.2 12.6 6 6.7 6.4 8.2 7.7 8.4 8.6 9.6 9.0 9.0 9.7 10.3 7 Netherlands 4.4 4.8 4.4 4.6 4.2 3.7 4.0 4.0 4.1 3.8 3.6 8 Sweden 2.1 2.4 2.9 3.2 3.1 3.4 3.7 4.0 4.0 4.7 5.0 9 Switzerland 5.3 4.7 5.0 5.1 5.2 5.1 5.5 5.3 5.1 5.0 5.0 10 United Kingdom 47.3 56.4 67.4 68.5 67.0 68.8 69.9 69.7 68.5 69.0 70.9 11 Canada 6.0 6.3 8.4 8.9 10.8 11.8 10.9 11.6 11.3 10.8 10.9 12 Japan 20.6 22.4 26.5 29.1 28.9 28.0 30.1 28.4 29.9 28.9 29.0 13 Other developed countries 19.4 19.9 21.6 23.5 24.8 26.4 28.4 30.6 32.1 32.6 33.6 14 Austria 1.7 2.0 1.9 1.8 2.1 2.2 1.9 2.1 2.1 2.0 1.9 IS Denmark 2.0 2.2 2.3 2.4 2.3 2.5 2.3 2.5 2.6 2.5 2.4 16 Finland 1.2 1.2 1.4 1.4 1.3 1.4 1.7 1.6 1.6 1.8 2.3 17 Greece 2.3 2.4 2.8 2.7 3.0 2.9 2.8 2.8 2.6 2.5 2.9 18 Norway 2.1 2.3 2.6 2.8 2.8 3.0 3.1 3.2 3.2 3.4 3.3 19 Portugal .6 .7 .6 .6 .8 1.0 1.1 1.2 1.5 1.6 1.5 20 Spain 3.5 3.5 4.4 5.5 5.7 5.8 6.7 7.2 7.3 7.7 7.5 21 Turkey 1.5 1.4 1.5 1.5 1.4 1.5 1.4 1.6 1.5 1.5 1.4 22 Other Western Europe 1.3 1.4 1.7 1.8 1.8 1.9 2.1 2.2 2.2 2.1 2.3 23 South Africa 2.0 1.3 1.1 1.5 1.9 2.5 2.8 3.3 3.5 3.6 3.7 24 Australia 1.4 1.3 1.3 1.5 1.7 1.9 2.5 3.0 4.0 4.0 4.3 25 OPEC countries3 22.7 22.9 22.7 21.7 22.2 23.5 24.5 25.1 26.1 27.0 27.2 26 Ecuador 1.6 1.7 2.1 2.0 2.0 2.1 2.2 2.3 2.4 2.3 2.2 27 Venezuela 7.2 8.7 9.1 8.3 8.8 9.2 9.7 9.7 9.8 10.1 10.6 28 Indonesia 2.0 1.9 1.8 2.1 2.1 2.5 2.5 2.7 2.7 2.9 3.2 29 Middle East countries 9.5 8.0 6.9 6.7 6.8 7.1 7.5 8.2 8.7 9.0 8.5 30 African countries 2.5 2.6 2.8 2.6 2.6 2.6 2.5 2.2 2.5 2.7 2.7 31 Non-OPEC developing countries 52.6 63.0 77.4 82.2 84.8 90.2 96.2 97.5 103.6 103.8 106.9 Latin America 32 Argentina 3.0 5.0 7.9 9.5 8.5 9.3 9.4 9.9 9.7 9.2 8.9 33 Brazil 14.9 15.2 16.2 17.0 17.5 17.7 19.1 19.7 21.3 22.4 22.8 34 Chile 1.6 2.5 3.7 4.0 4.8 5.5 5.8 6.0 6.4 6.2 6.3 35 Colombia 1.4 2.2 2.6 2.4 2.5 2.5 2.6 2.3 2.6 2.8 3.0 36 Mexico 10.8 12.0 15.9 17.0 18.2 20.0 21.6 22.9 25.1 24.8 24.4 37 1.7 1.5 1.8 1.8 1.7 1.8 2.0 1.9 2.4 2.6 2.6 38 Other Latin America 3.6 3.7 3.9 4.7 3.8 4.2 4.1 4.1 4.0 4.3 4.2 Asia China 39 Mainland .0 .1 .2 .2 .2 .2 .2 .2 .3 .2 .3 40 Taiwan 2.9 3.4 4.2 4.4 4.6 5.1 5.1 5.1 5.0 4.9 5.2 41 India .2 .2 .3 .3 .3 .3 .3 .5 .5 .5 .6 4? Israel 1.0 1.3 1.5 1.3 1.8 1.5 2.1 1.7 2.2 1.9 2.3 43 Korea (South) 3.9 5.4 7.1 7.7 8.8 8.6 9.4 8.6 8.9 9.3 10.8 44 Malaysia .6 1.0 1.1 1.2 1.4 1.4 1.7 1.7 1.9 1.8 2.1 45 Philippines 2.8 4.2 5.1 4.8 5.1 5.6 6.0 5.9 6.3 6.0 6.2 46 Thailand 1.2 1.5 1.6 1.6 1.5 1.4 1.5 1.4 1.3 1.3 1.6 47 Other Asia .2 .5 .6 .5 .7 .8 1.0 1.2 1.1 1.3 1.1 Africa 48 Egypt ..44 .6 .8 .8 .7 1.0 1.1 1.3 1.3 1.3 1.2 49 Morocco .6 .6 .7 .6 .5 .7 .7 .7 .7 .8 .7 50 Zaire .2 .2 .2 .2 .2 .2 .2 .2 .2 .1 .1 51 Other Africa4 1.4 1.7 2.1 2.2 2.1 2.2 2.3 2.3 2.3 2.2 2.5 52 Eastern Europe 6.9 7.3 7.4 7.7 7.7 7.7 7.8 7.2 6.7 6.3 6.2 53 U.S.S.R 1.3 .7 .4 .4 .5 .4 .6 .4 .4 .3 .3 54 Yugoslavia 1.5 1.8 2.3 2.4 2.5 2.5 2.5 2.5 2.4 2.2 2.2 55 Other 4.1 4.8 4.6 4.8 4.8 4.7 4.7 4.3 3.9 3.8 3.7 56 Offshore banking centers 31.0 40.4 47.0 53.7 59.3 61.7 63.5 65.2 70.7 70.3 66.6 57 Bahamas 10.4 13.7 13.7 15.5 17.9 21.3 18.9 19.8 23.1 20.1 18.0 58 Bermuda .7 .8 .6 .7 .7 .8 .7 .7 .7 .8 .9 59 Cayman Islands and other British West Indies 7.4 9.4 10.6 11.9 12.6 12.1 12.4 12.0 12.2 13.3 12.8 60 Netherlands Antilles .8 1.2 2.1 2.3 2.4 2.2 3.2 3.2 3.0 3.3 3.3 61 Panama5 3.0 4.3 5.4 6.5 6.9 6.7 7.6 7.1 7.3 8.0 7.5 62 Lebanon .1 .2 .2 .2 .2 .2 .2 .2 .2 .1 .1 63 Hong Kong 4.2 6.0 8.1 8.4 10.3 10.3 11.8 12.9 14.3 14.9 14.8 64 Singapore 3.9 4.5 5.9 7.3 8.1 8.0 8.7 9.3 9.8 9.8 9.1 65 Others6 .5 .4 .3 .9 .3 .1 .1 .1 .1 .0 .0 66 Miscellaneous and unallocated7 9.1 11.7 14.0 14.9 15.7 18.2 18.8 18.3 18.2 20.1 17.6 1. The banking offices covered by these data are the U.S. offices and foreign the U.S. offices also include customer claims and foreign currency claims branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. (amounting in June 1978 to $10 billion). Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. In addition to the Organization of Petroleum Exporting Countries shown (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are individually, this group includes other members of OPEC (Algeria, Gabon, Iran, adjusted to exclude the claims on foreign branches held by a U.S. office or another Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as foreign branch of the same banking institution. The data in this table combine well as Bahrain and Oman (not formally members of OPEC). foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 4. Excludes Liberia. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 5. Includes Cana] Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). However, 6. Foreign branch claims only. see also footnote 2. 7. Includes New Zealand, Liberia, and international and regional organiza- 2. Beginning with data for June 1978, the claims of the U.S. offices in this table tions. include only banks' own claims payable in dollars. For earlier dates the claims of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • April 1983 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1981 1982 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 Sept. Dec. Mar. June' Sept.P 1 Total 17,433' 22,226' 22,480' 23,608' 22,480' 22,393' 20,965 21,439 2 Payable in dollars 14,323 18,481 18,758' 20,377' 18,758' 19,623' 18,182 18,320 3 Payable in foreign currencies 3,110' 3,745' 3,722' 3,230' 3,722' 2,770' 2,783 3,119 By type 4 Financial liabilities 7,523' 11,330' 12,117' 13,084' 12,117' 12,599' 10,028 10,707 5 Payable in dollars 5,223 8,528 9,446' 10,688 9,446' 10,627' 8,066 8,399 6 Payable in foreign currencies 2,300' 2,802' 2,671' 2,396' 2,671' 1,972' 1,961 2,308 7 Commercial liabilities 9,910 10,896 10,363' 10,524' 10,363' 9,794' 10,937 10,732 8 Trade payables 4,591 4,993 4,720 4,430 4,720 4,022 5,027 4,526 9 Advance receipts and other liabilities 5,320 5,903 5,643' 6.094' 5,643' 5,773' 5,910 6,206 10 Payable in dollars 9,100 9,953 9,312' 9,689' 9,312' 8,996' 10,115 9,921 11 Payable in foreign currencies 811 943 1,052 835 1,052 798 822 811 By area or country Financial liabilities 12 Europe 4,665' 6,481' 6,819' 7,968' 6,819' 7,883' 5,947 6,389 13 Belgium-Luxembourg 338' 479' 471' 507' 471' 605' 518 494 14 France 175 327 709 929 709 924 581 672 15 Germany 497 582 491 430 491 503 439 446 16 Netherlands 829 681 748 664 748 755 517 759 17 Switzerland 170 354 715 465 715 707 661 670 18 United Kingdom 2,477 3,923 3,559 4,800 3,559 4,282 3,084 3,212 19 Canada 532 964 958 977 958 914 758 702 20 Latin America and Caribbean 1,514 3,136 3,356' 3,293 3,356' 3,333' 2,805 2,969 21 Bahamas 404 964 1,279 1,019 1,279 1,095 1,003 933 22 Bermuda 81 1 7 6 7 6 7 14 23 Brazil 18 23 22 20 22 27 24 28 24 British West Indies 516 1,452 1,241 1,398 1,241 1,469 1,044 981 25 Mexico 121 99 102 107 102 67 83 85 26 Venezuela 72 81 98 90 98 97 100 104 27 Asia 804 723 957 814 957 455 502 631 28 Japan 726 644 792 696 792 293 340 424 29 Middle East oil-exporting countries2 31 38 75 51 75 63 66 67 30 Africa 4 11 3 3 3 2 3 3 31 Oil-exporting countries3 1 1 0 1 0 0 0 0 32 All other4 4 15 24 29 24 12 11 13 Commercial liabilities 33 Europe 3,709 4,402 3,771 3,963 3,771 3,422 3,742 3,862 34 Belgium-Luxembourg 137 90 71 79 71 50 47 50 35 France 467 582 573 575 573 504 700 759 36 Germany 545 679 545 590 545 473 457 431 37 Netherlands 227 219 221 239 221 232 248 281 38 Switzerland 316 499 424 569 424 400 412 358 39 United Kingdom 1,080 1,209 880 925 880 824 850 904 40 Canada 924 888 897 853 897 884 1,116 1,188 41 Latin America and Caribbean 1,325 1,300 1,044' 1,137' 1,044' 817' 1,418 11,,221199 42 Bahamas 69 8 2 3 2 22 20 66 43 Bermuda 32 75 67 113 67 71 102 48 44 Brazil 203 111 67 61 67 83 62 128 45 British West Indies 21 35 2 11 2 27 2 3 46 Mexico 257 367 340 392 340 210 727 484 47 Venezuela 301 319 276 273 276 194 219 269 48 2,991 3,034 3,285 3,221 3,285 3,404 3,298 3,201 49 Japan 583 802 1,094 775 1,094 11,,009900 1,064 1,133 50 Middle East oil-exporting countries2 1,014 890 910 881 910 999988 958 821 51 Africa 728 817 703 757 703 664 732 668 52 Oil-exporting countries3 384 517 344 355 344 247 340 248 53 All other4 233 456 664 593 664 604 630 595 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 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 Type, and area or country 11997799 11998800 11998811 Sept. Dec. Mar. June' Sept.? 1 Total 31,299' 34,482' 35,672' 34,170' 35,672' 30,203' 30,483 29,428 2 Payable in dollars 28,096' 31,528' 32,071' 31,161' 32,071' 27,564' 27,983 26,734 3 Payable in foreign currencies 3,203' 2,955' 3,601' 3,010' 3,601' 2,639' 2,500 2,694 By type 4 Financial claims 18,398' 19,763' 20,742' 19,171' 20,742' 17,748' 18,360 17,714 5 Deposits 12,858' 14,166' 14,688' 13,611' 14,688' 12,730' 13.603 12,608 6 Payable in dollars 11,936 13,381' 14,057' 12,876' 14,057' 12,267' 13,229 12,194 7 Payable in foreign currencies 923' 785' 631' 734' 631' 463' 374 413 8 Other financial claims 5,540' 5,597' 6,054' 5,561' 6,054' 5,018' 4,757 5,106 9 Payable in dollars 3,714' 3,914' 3,600' 3,867' 3,600' 3,362' 3,189 3,419 10 Payable in foreign currencies 1,826 1,683 2,454 1,694' 2,454 1,656' 1,568 1,687 11 Commercial claims 12,901 14,720 14,930' 14,999' 14,930' 12.455' 12,122 11,714 12 Trade receivables 12,185 13,960 13,965' 14,062' 13,965' 11.493' 11,069 10,709 13 Advance payments and other claims.. 716 759 965 937 965 962' 1,053 1,005 14 Payable in dollars 12,447 14,233 14,414' 14,417' 14,414' 11,935' 11,565 11,121 15 Payable in foreign currencies 454 487 516 582 516 520 557 593 By area or country Financial claims 16 Europe 6,179' 6,069' 4,515' 4,515' 4,515' 4,506' 4,661 4,728 17 Belgium-Luxembourg 32 145 43 43 43 16 13 16 18 France 177 298' 285' 285' 285' 375' 313 305 19 Germany 409 230 224 224 224 197 148 174 20 Netherlands 53 51 50 50 50 79 56 52 21 Switzerland 73 54' 57' 43' 57' 53 63 60 22 United Kingdom 5,099' 4,987' 3,525' 3,525' 3,525' 3,549' 3,795 3.749 23 Canada 5,003' 5,036' 6,628' 6,040' 6,628' 4.942' 4.365 4.322 24 Latin America and Caribbean 6,312 7,811 8.615 7,762 8,615 7.432 8,312 7.630 25 Bahamas 2,773 3,477 3,925 3,284 3.925 3.537 3,845 3,366 26 Bermuda 30 135 18 15 18 27 42 19 27 Brazil 163 96 30 66 30 49 76 76 28 British West Indies 2,011 2,755 3.503 3,315 3.503 2,797 3,504 3,171 29 Mexico 157 208 313 283 313 281 274 268 30 Venezuela 143 137 148 143 148 130 134 133 31 Asia 601 60" 762' 501' 762' 670' 800 825 32 Japan 199 189 366' 113' 366' 257' 327 247 33 Middle East oil-exporting countries2 16 20 37 29 37 36 33 30 34 Africa 258 208 173 169 173 164 156 165 49 26 46 41 46 43 41 50 35 Oil-exporting countries3 44 32 48' 116 48' 34 66 44 36 All other4 Commercial claims 4,922 5,544 5.359 5,378 5.359 4,381 4.273 4,164 37 Europe 202 233 234 220 234 246 211 178 38 Belgium-Luxembourg 727 1,129 776 767 776 698 636 646 39 France 593 599 557 582 557 452 392 408 40 Germany 298 318 303 308 303 227 297 277 41 Netherlands 272 354 427 404 427 354 384 258 42 Switzerland 901 929 969 1,034 969 1.062 905 1,036 43 United Kingdom 44 Canada 859 914 967 1,017 967 943 713 665 45 Latin America and Caribbean 2.879 3,766 3,479' 3.734' 3,479' 2,925' 2.787 2.772 46 Bahamas 21 21 12 18 12 80 30 19 47 Bermuda 197 108 223 241 223 212 225 154 48 Brazil 645 861 668 726 668 417 423 481 49 British West Indies 16 34 12 13 12 23 10 .7 50 Mexico 708 1,102 1,022 985 1,022 762 750 869 51 Venezuela 343 410 424 456 424 396 383 373 52 Asia 3,451 3.522 3,914 3,700 3,914 3,155 3,323 3,027 53 Japan 1,177 1,052 1.244 1.129 1,244 1,160 1,213 866 54 Middle East oil-exporting countries2 765 825 901 829 901 757 806 775 55 Africa 551 653 750 717 750 587 614 638 56 Oil-exporting countries3 130 153 152 154 152 143 138 148 57 Al! other4 240 321 461 453 461 463 413 448 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 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 • April 1983 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1983 1982 1983 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998811 11998822 Jan.- Feb. Aug. Sept. Oct. Nov. Dec. Jan. Feb.P U.S. corporate securities STOCKS 1 Foreign purchases 40,686 41,901r 10,642 3,183 4,292 5,967 5,581 5,839' 5,141 5,500 2 Foreign sales 34,856 37,950 8,918 2,650 4,399 5,675 5,245 4,868 4,376 4,542 3 Net purchases, or sales (-) 5,830 3,951' 1,724 532 -107 292 336 971' 765 958 4 Foreign countries 5,803 3,866' 1,693 530 -110 282 325 946' 755 938 5 Europe 3,662 2,596' 1,473 272 -268 175 69 672' 586 887 6 France 900 -143 99 -7 -43 -30 -8 43 47 52 7 Germany -22 333 221 -12 -43 47 26 138 84 113377 8 Netherlands 42 -60 10 12 -62 -102 -24 25 2 88 9 Switzerland 288 -529 435 -53 -144 -118 -208 226 211 223 10 United Kingdom 2,235 3,129' 620 366 73 435 317 242' 183 437 11 Canada 783 222 151 73 115 5 72 154 90 61 12 Latin America and Caribbean -30 304 79 121 -82 142 54 39 -5 84 13 Middle East1 1,140 368 -70 101 134 -98 9 -153 -57 -13 14 Other Asia 287 244 27 -43 -16 22 112 210 118 -91 15 Africa 7 2 9 1 0 0 2 3 6 4 16 Other countries -46 131 24 5 6 35 7 22 18 6 17 Nonmonetary international and regional organizations 27 85 30 2 3 10 11 25 10 21 BONDS2 18 Foreign purchases 17,290 21,431 4,134 1,513 2,088 2,778 2,099 2,099 1,933 2,201 19 Foreign sales 12,247 20,340 4,518 1,760 2,230 2,939 2,280 2,457 2,278 2,240 20 Net purchases, or sales (-) 5,043 1,091 -384 -247 -142 -162 -181 -358 -345 -39 21 Foreign countries 4,976 1,118 -357 -111 -106 -202 -190 -348 -343 -14 22 Europe 1,356 1,736 -385 -27 -279 429 -236 -158 -189 -196 23 France 11 296 -23 -18 25 -16 24 146 -21 -2 24 Germany 848 2,122 -131 106 86 190 11 43 -96 -35 25 Netherlands 70 29 16 0 -10 -2 -4 -1 16 0 26 Switzerland 108 161 91 32 -24 -4 -13 44 29 62 27 United Kingdom 181 -1,085 -250 -109 -380 240 -327 -461 -105 -145 28 Canada -12 25 25 4 2 -152 10 -2 11 15 29 Latin America and Caribbean 132 160 34 18 19 -15 28 -6 23 11 30 Middle East1 3,465 -769 -125 -78 193 -435 -20 -177 -211 86 31 Other Asia 44 -23 95 -31 -47 -30 28 -5 23 72 32 Africa -1 -19 -1 0 0 0 0 0 0 -1 33 Other countries -7 7 0 2 5 0 0 -1 0 0 34 Nonmonetary international and regional organizations 66 -28 -27 -136 -36 41 10 -10 -2 -25 Foreign securities 35 Stocks, net purchases, or sales (-) -188 -1,334 -560 11 -160 -308 -740 -272 -320 -240 36 Foreign purchases 9,281 7,151 2,059 532 545 706 772 927 1,032 1,027 37 Foreign sales 9,469 8,485 2,619 520 705 1,014 1,512 1,199 1,352 1,267 38 Bonds, net purchases, or sales (-) -5,449 -6,610 -276 -1,353 -1,157 -1,331 -463 -417 22 -298 39 Foreign purchases 17,553 29,959 6,980 3,279 3,064 3,058 2,948 2,962 2,881 4,098 40 Foreign sales 23,003 36,569 7,255 4,632 4,222 4,389 3,411 3,379 2,859 4,396 41 Net purchases, or sales (—), of stocks and bonds .... -5,637 -7,944 -836 -1,342 -1,317 -1,639 -1,204 -689 -298 -538 42 Foreign countries -4,625 -6,756 -1,122 -1,144 -810 -1,247 -1,173 -736 -273 -850 43 Europe -707 -2,489 -1,027 -128 -271 -517 -572 -555 -307 -720 44 Canada -3,697 -2,376 -469 -678 -299 -181 -12 -29 -20 -449 45 Latin America and Caribbean 69 336 603 49 -65 -268 -62 29 258 345 46 Asia -322 -1,853 -230 -433 241 -283 -536 -195 -193 -37 47 Africa -55 -9 12 17 1 0 4 4 -9 21 48 Other countries 87 -364 -12 29 -416 3 5 1100 -2 --1100 49 Nonmonetary international and regional organizations -1,012 -1,188 286 -198 -507 -392 -31 47 -26 312 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, 2. Includes state and local government securities, and securities of U.S. Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). government 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 1983 1982 1983 CCoouunnttrryy oorr aarreeaa 119988!! 11998822 Jan.- Aug. Sept. Oct. Nov. Dec. Jan. Feb.P Feb Holdings (end of period)1 1 Estimated total2 70,201 85,346 80,694 82,345 84,047 84,844 85,346 85,635 86,234 2 Foreign countries2 64,530 80,541' 76,722 78,339 79,132 79,402 80,541' 80,809 82,054 3 Europe2 23,976 29,214 27,722 28,805 29,023 29,388 29,214 29,796 30,980 4 Belgium-Luxembourg 543 447 576 551 834 448 447 716 -87 5 Germany2 11,861 14,841 13,959 14,520 14,493 14,704 14,841 15,151 16,650 6 Netherlands 1,955 2,702 2,302 2,333 2,315 2,420 2,702 2,787 2,958 7 Sweden 643 667 644 635 655 687 667 668 681 8 Switzerland2 846 1,540 1,100 1,233 1,266 1,532 1,540 1,013 1,039 9 United Kingdom 6,709 6,554 7,129 7,362 7,242 7,104 6,554 6,726 6,943 10 Other Western Europe 1,419 2,464 2,012 2,171 2,218 2,493 2,464 2,736 2,792 11 Eastern Europe 0 0 0 0 0 0 0 0 2 12 Canada 514 602 353 428 482 552 602 649 639 13 Latin America and Caribbean 736 1,076 1,166 1,204 1,086 1,231 1,076 1,067 1,051 14 Venezuela 286 188 222 221 204 172 188 190 74 15 Other Latin America and Caribbean 319 656 611 771 657 759 656 720 793 16 Netherlands Antilles 131 232 333 211 225 300 232 156 185 17 Asia 38,671 49,516' 47,165 47,682 48,302 48,093 49,516' 49,160 49,270 18 Japan 10,780 11,562' 11,247 11,395 11,381 11,299 11.562' 11,640 11,692 19 Africa 631 78 305 180 180 78 78 78 81 20 All other 2 54 12 41 60 61 54 59 33 21 Nonmonetary international and regional organizations 5,671 4.805' 3,972 4,006 4,915 5,442 4,805' 4,826 4,180 22 International 5,638 4,439 3,882 3,811 4,670 5,192 4,439 4,418 3,657 23 Latin American regional 1 6 -4 -4 -4 -4 6 6 6 Transactions (net purchases, or sales (-) during period) 24 Total2 12,652 15,144 889 822 1,651 1,703 797 502 289 600 25 Foreign countries2 11,568 16,011' 1,513 1,374 1,618 792 270 1,139' 268 1,245 76 Official institutions 11,694 14,516 1,599 367 1,525 641 220 1,866 20 1,579 27 Other foreign2 -127 1,494' -85 1,007 93 152 51 -727' 248 -333 28 Nonmonetary international and regional organizations 1,085 -865' -625 -553 33 910 526 -637' 21 -646 MEMO: Oil-exporting countries 29 Middle East3 11,156 7,537 -112 257 176 209 -320 303 121 -233 30 Africa4 -289 -552 0 -100 -125 0 -100 0 0 0 1. Estimated official and private holdings of marketable U.S. Treasury securi- 2. Beginning December 1978, includes U.S. Treasury notes publicly issued to ties 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 United Arab Emirates (Trucial States). foreign countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Mar. 31, 1983 Rate on Mar. 31, 1983 Rate on Mar. 31, 1983 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 3.75 Mar. 1983 France1 12.5 Feb. 1983 Norway 9.0 Nov. 1979 Belgium . 11.0 Mar. 1983 Germany, Fed. Rep. of 4.0 Mar. 1983 Switzerland 4.0 Mar. 1983 Brazil .. . 49.0 Mar. 1981 Italy 18.0 Aug. 1981 United Kingdom2 Canada.. 9.51 Mar. 1983 Japan 5.5 Dec. 1981 Venezuela 13.0 Sept. 1982 Denmark 8.5 Mar. 1983 Netherlands 3.5 Mar. 1983 1. As of the end of February 1981, the rate is that at which the Bank of France or makes advances against eligible commercial paper and/or government commerdiscounts Treasury bills for 7 to 10 days. cial banks or brokers. For countries with more than one rate applicable to such 2. Minimum lending rate suspended as of Aug. 20, 1981. discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion of its credit operations. NOTE. Rates shown are mainly those at which the central bank either discounts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • April 1983 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages pf daily figures 1982 1983 CCoouunnttrryy,, oorr ttyyppee 11998800 11998811 11998822 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Eurodollars 14.00 16.79 12.24 11.74 10.43 9.77 9.47 8.97 9.14 9.25 2 United Kingdom 16.59 13.86 12.21 10.84 9.74 9.30 10.55 11.04 11.29 10.92 3 Canada 13.12 18.84 14.38 13.57 12.14 11.08 10.56 9.87 9.69 9.36 4 Germany 9.45 12.05 8.81 8.13 7.55 7.24 6.54 5.78 5.79 5.40 5 Switzerland 5.79 9.15 5.04 3.97 3.66 3.76 3.71 2.78 2.95 3.64 6 Netherlands 10.60 11.52 8.26 7.85 7.09 6.36 5.66 4.97 4.82 4.34 7 France 12.18 15.28 14.61 14.09 13.51 12.98 12.70 12.55 12.88 12.64 8 Italy 17.50 19.98 19.99 18.56 18.57 19.05 19.20 18.95 19.04 19.19 9 Belgium 14.06 15.28 14.10 13.06 12.75 12.50 12.25 12.25 12.25 13.32 10 Japan 11.45 7.58 6.84 7.19 6.97 6.98 6.96 6.47 6.64 6.78 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 1983 CCoouunnttrryy//ccuurrrreennccyy 11998800 11998811 11998822 Oct. Nov. Dec. Jan. Feb. Mar. 1 Argentina/peso n.a. n.a. 20985.00 29487.50 39200.00 43883.91 48916.66 50239.47 62386.95 2 Australia/dollar1 114.00 114.95 101.65 94.35 94.27 96.82 98.26 96.62 88.39 3 Austria/schilling 12.945 15.948 17.060 17.797 17.947 16.994 16.783 17.076 16.940 4 Belgium/franc 29.237 37.194 45.780 49.103 49.600 47.493 46.888 47.739 47.519 5 Brazil/cruzeiro n.a. 92.374 179.22 215.34 228.51 244.63 262.30 309.01 401.30 6 Canada/dollar 1.1693 1.1990 1.2344 1.2301 1.2262 1.2385 1.2287 1.2277 1.2263 7 Chile/peso n.a. n.a. 51.118 66.770 69.050 72.630 74.257 76.863 76.378 8 China, P.R./yuan n.a. 1.7031 1.8978 1.9887 2.0002 1.9445 1.9238 1.9653 1.9834 9 Colombia/peso n.a. n.a. 64.071 66.856 68.168 69.526 70.762 71.751 73.179 10 Denmark/krone 5.6345 7.1350 8.3443 8.9192 8.9595 8.5275 8.4171 8.5811 8.6223 11 Finland/markka 3.7206 4.3128 4.8086 5.3480 5.5263 5.3425 5.3120 5.3907 5.4266 12 France/franc 4.2250 5.4396 6.5793 7.1557 7.2152 6.8548 6.7725 6.8855 7.0204 13 Germany/deutsche mark 1.8175 2.2631 2.428 2.5320 2.5543 2.4193 2.3893 2.4280 2.4110 14 Greece/drachma n.a. n.a. 66.872 71.948 72.889 70.788 80.761 83.621 83.897 15 Hong Kong/dollar n.a. 5.5678 6.0697 6.6038 6.6724 6.5417 6.5252 6.6060 6.6536 16 India/rupee 7.8866 8.6807 9.4846 9.7005 9.7968 9.6926 9.7938 9.9184 9.9652 17 Indonesia/rupiah n.a. n.a. 660.43 670.31 680.92 687.95 694.62 700.01 714.72 18 Iran/rial n.a. 79.324 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 19 Ireland/pound1 205.77 161.32 142.05 134.35 132.91 137.69 139.16 136.81 134.79 20 Israel/shekel n.a. n.a. 24.407 29.860 31.344 32.966 34.863 36.986 38.867 21 Italy/lira 856.20 1138.60 1354.00 1439.94 1468.84 1398.74 1374.71 1399.78 1429.72 22 Japan/yen 226.63 220.63 249.06 271.61 264.09 241.94 232.73 236.12 238.25 23 Malaysia/ringgit 2.1767 2.3048 2.3395 2.3688 2.3647 2.3529 2.2822 2.2757 2.2898 24 Mexico/peso 22.968 24.547 72.990 108.83 130.61 147.35 150.75 157.81 161.78 25 Netherlands/guilder 1.9875 2.4998 2.6719 2.7608 2.7861 2.6698 2.6310 2.6779 2.6834 26 New Zealand/dollar1 97.34 86.848 75.101 71.431 71.092 72.569 72.921 71.895 66.642 27 Norway/krone 4.9381 5.7430 6.4567 7.1735 7.2397 7.0346 7.0447 7.1171 7.1852 28 Peru/sol n.a. n.a. 694.59 819.14 878.66 942.47 1019.54 1087.43 1160.19 29 Philippines/peso n.a. 7.8113 8.5324 8.7760 8.8733 9.0546 9.2632 9.4488 9.5896 30 Portugal/escudo 50.082 61.739 80.101 89.652 91.911 92.685 94.548 93.771 95.867 31 Singapore/dollar n.a. 2.1053 2.1406 2.1984 2.2123 2.1522 2.0768 2.0758 2.0854 32 South Africa/rand1 128.54 114.77 92.297 86.20 87.77 92.03 93.82 91.04 91.64 33 South Korea/won n.a. n.a. 731.93 743.65 745.60 746.36 749.80 752.19 757.94 34 Spain/peseta 71.758 92.396 110.09 115.20 119.09 126.125 126.844 129.886 133.498 35 Sri Lanka/rupee 16.167 18.967 20.756 20.898 21.009 21.166 21.378 22.355 22.982 36 Sweden/krona 4.2309 5.0659 6.2838 7.1543 7.5095 7.3555 7.3227 7.4385 7.4882 37 Switzerland/franc 1.6772 1.9674 2.0327 2.1736 2.1931 2.0588 1.9679 2.0180 2.0663 38 Thailand/baht n.a. 21.731 23.014 23.000 23.000 23.000 23.000 22.999 22.991 39 United Kingdom/pound1 232.58 202.43 174.80 169.62 163.21 161.60 157.56 153.29 149.00 40 Venezuela/bolivar n.a. 4.2781 4.2981 4.2976 4.2996 4.2971 4.2973 4.3101 7.9500 MEMO: United States/dollar2 87.39 102.94 116.57 123.16 124.27 119.22 117.73 119.70 120.71 1. Value in U.S. cents. description and back data, see "Index of the Weighted-Average Exchange Value 2. Index of weighted-average exchange value of U.S. dollar against currencies of the U.S. Dollar: Revision" on page 700 of the August 1978 BULLETIN. of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76 global trade of each of the 10 countries. Series revised as of August 1978. For NOTE. Averages of certified noon buying rates in New York for cable tranfers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading when IPCs Individuals, partnerships, and corporations about half of the figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 when SMSAs Standard metropolitan statistical areas the smallest unit given is millions) Cell not applicable 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 December 1982 A76 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Assets and liabilities of commercial banks, March 31, 1982 July 1982 A70 Assets and liabilities of commercial banks, June 30, 1982 October 1982 A70 Assets and liabilities of commercial banks, September 30, 1982 January 1983 A70 Assets and liabilities of commercial banks, December 31, 1982 April 1983 A70 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 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1982 January 1983 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1982 April 1983 A76 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • April 1983 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1" Consolidated Report of Condition; December 31, 1982 Millions of dollars Banks with foreign offices2 BBaannkkss IItteemm Insured ww ffoo ii rr tt ee hh ii oo gg uu nn tt Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ooffffiicceess 1 Total assets 1,758,723 1,288,454 389,915 962,967 470,269 2 Cash and due from depository institutions 291,737 233,708 124,031 109,677 58,029 3 Currency and coin (U.S. and foreign) 14,744 8,882 248 8,634 5,862 4 5 B B a a l l a a n n c c e e s s w wi i t t h h o F t e h d e e r r a c l e n R t e ra s l e r b v a e n k B s a nks 2 3 4 , , 5 5 9 4 9 3 1 3 8 , , 5 6 9 0 9 5 3,4 2 0 0 7 3 18,4 1 0 9 2 1 5,9 ( 349 ) 6 Demand balances with commercial banks in United States 19,100 7,639 200 7,439 11,461 7 All other balances with depository institutions in United States and with banks in foreign countries 163,418 141,115 118,890 22,226 22,303 8 Time and savings balances with commercial banks in United States 22,536 13,036 8,558 4,478 9,500 9 Balances with other depository institutions in United States 727 534 464 70 193 1 1 1 0 1 2 Ba F O la o t n h r c e e e i r g s n b w a b n it r k h a s n b c i a n h n e f k s o s r o e i f n i g o n f t o h c r e e o r i u g U n n t . r c S i o e . s u b n a t n ri k e s s 140, ( 1 ( 5 4 44 ) ) 1 1 2 2 0 1 7 5 , , , 6 5 9 4 0 4 5 0 5 1 9 0 1 2 9 6 , , , 9 8 9 4 6 2 1 8 7 1 1 4 3 7 , , , 6 0 6 7 0 7 3 4 7 12, ( 6 ( 4 04 ) 9 ) 13 Cash items in process of collection 66,334 53,868 1,082 52,786 12,466 14 Total securities, loans, and lease financing receivables 1,327,390 936,147 212,980 723,167 391,234 15 Total securities, book value 259,142 142,490 11,195 131,294 116,643 16 U.S. Treasury 76,148 37,431 223 37,209 38,717 17 Obligations of other U.S. government agencies and corporations 40,244 16,181 21 16,161 24,063 18 Obligations of states and political subdivisions in United States 108,926 59,045 619 58,426 49,881 19 All other securities 33,823 29,832 10,333 19,499 3,991 20 Other bonds, notes, and debentures 12,767 10,065 8,044 2,021 2,703 21 Federal Reserve and corporate stock 1,924 1,428 170 1,258 497 22 Trading account securities 19,131 18,339 2,120 16,220 792 23 Federal funds sold and securities purchased under agreements to resell 74,093 41,620 819 40,801 32,472 24 Total loans, gross 1,002,817 753,085 200,210 552,875 249,732 25 LESS: Unearned income on loans 14,004 7,292 1,861 5,432 6,712 26 Allowance for possible loan loss 10,951 8,048 359 7,689 2,904 27 EQUALS: Loans, net 977,862 737,745 197,991 539,755 240,117 Total loans, gross, by category 3 2 2 3 3 3 3 3 3 3 3 3 8 9 0 8 6 7 2 4 5 1 Re C S S S al e e e o M c c 1 c n e u u u - s s u C F F C r r r t t t o e e l e a r H H o o t d d u d t i n 4 n e f A A c a - v v b b b t f - - m l i e e y y y a o i i o n n n n m i a n l f t n t r s s n y i i a e i u u o o o s a l r s y r r n n n n m i e e d f d a a d d a l e l l a r n l n o m a t d r n i a d n V l o d A p n e r - r o v g e p e s u l i e a o d r r p e t a i n m n e t s t i e e a n e l t d p roperties 230,0 ( ( ( ( ( ( ( ( ( ( 44 4 4 4 4 4 4 4 4 4 7 ) ) ) ) ) ) ) ) ) ) 141, ( ( ( ( 9 ( ( ( ( ( ( 7 4 4 4 4 4 4 4 4 4 4 5 ) ) ) ) ) ) ) ) ) ) 8,9 ( ( ( ( ( ( ( ( ( ( 2 4 4 4 4 4 4 4 4 4 4 ) 7 ) ) ) ) ) ) ) ) ) 1 6 3 7 6 2 3 6 4 3 4 6 0 2 3 3 , , , , , , , , , 7 7 8 8 2 6 5 5 0 8 2 3 9 5 2 1 1 7 4 9 4 2 1 4 5 5 7 9 7 8 7 2 8 4 4 4 8 2 1 2 8 6 3 8 6 2 2 1 1 , , , , , , , , , , 5 1 9 4 0 3 3 2 7 4 1 5 3 7 1 2 4 1 1 7 0 1 3 3 2 4 0 0 0 9 0 9 1 39 Loans to financial institutions 102,325 94,854 33,631 61,223 7,471 40 REITs and mortgage companies in United States 5,451 4,858 59 4,799 593 4 4 4 1 2 3 Co O U m t . m h S e . e r r b c c r i o a a n m l c b m h a e e n s r k c a s ia n i l d n b a U a g n n e k i n t s c e i d e s S t o a f t e fo s reign banks 15, ( ( 184 4 2 ) ) 1 5 5 0 , , , 3 2 5 2 2 5 7 9 5 5 2 2 5 6 1 1 7 8 1 4 5 0 , , , 9 0 0 7 6 3 8 0 7 4,6 ( ( 24 4 7 ) ) 4 4 4 6 4 5 Ba O F n o k th r s e e i r i g n n f o b r r e a i n g c n h c e o s u o n f t r o ie th s er U.S. banks 47, ( 6 ( 9 4 45 ) ) 4 4 6 7 , , 4 0 5 9 7 8 2 2 0 2 2 4 4 , , 2 5 2 1 0 9 3 3 0 2 2 2 2 , , 2 5 2 7 6 9 9 9 0 ( ( 6 4 423 ) ) 47 Finance companies in United States 12,024 11,523 325 11,198 501 48 Other financial institutions 21,973 20,845 8,226 12,619 1,127 49 Loans for purchasing or carrying securities 15,163 13,011 2,121 10,890 2,152 50 Brokers and dealers in securities 10,210 9,601 1,600 8,001 608 51 Other 4,953 3,409 521 2,888 1,544 52 Loans to finance agricultural production and other loans to farmers 12,487 7,181 858 6,323 5,305 5 5 5 3 4 5 Co N U m o . m S n . e - U r a c d . i S d al . r e a a s n d s d e d e r i e s n s d ( s d u e o e s m t s r i i ( a c d l i o le l m o ) a ic n i s l e) 445,8 ( ( 44 4 7 ) ) 2 3 1 3 6 3 4 6 1 , , , 7 5 8 3 6 2 8 0 2 1 1 1 2 0 7 3 6 , , , 9 4 5 8 3 4 5 5 9 2 2 4 1 2 2 7 5 , , , 5 3 2 7 0 7 5 2 3 79,2 ( ( 84 4 7 ) ) 5 5 5 6 6 6 5 6 6 6 6 6 6 7 8 3 4 5 9 0 1 2 6 7 Lo I S a n i n s n P C O M s t g a a r t o R l t C O R O s e h l o e l b s d e e h e m - t t e i i r h h p t i s e l t n a n e e i e e a c i g d i d n c r r y n k l h e e t i a m s v r r i n ( o r t a n e l c i d a t e m o n d t a s i h l s n a a a d t u l u a e t i a m l n t a l a r s l o r s g l n l l p e e c s m o m e d n r v o a o t f e o o n a n r o p n b l c e s s l r e v t o i c u l r l a i h a o m l e n t t n o y o u s e g e s a u n d r n r s c t e ) s e p r g p e h l o c f a d a o o r o i n i e l r r t d s d d s h a , i t n o f d u a c s m a m e r i d h o l y o d , l e d a r , n n f d iz a a m o t t i i h l o y e n , r a p n e d r s o o t n h a e l r e p x e p r e s n o d n i a t l u r e e x s p enditures 143, ( 5 ( ( ( ( ( ( ( ( ( ( 6 4 4 4 4 4 4 4 4 4 4 4 4 ) ) ) ) ) ) ) ) ) ) ) 80,3 ( ( ( ( ( ( ( ( ( ( ( 6 4 4 4 4 4 4 4 4 4 4 4 2 ) ) ) ) ) ) ) ) ) ) ) 6,7 ( ( ( ( ( ( ( ( ( ( ( ( ( 0 4 4 4 4 4 4 4 4 4 4 4 4 4 3 ) ) ) ) ) ) ) ) ) ) ) ) ) 7 6 2 1 1 1 1 3 4 0 3 4 3 3 8 6 9 6 3 , , , , , , , , , , , , 0 6 1 2 8 9 1 4 6 8 6 4 5 4 6 4 8 0 9 4 7 3 1 1 1 1 0 8 2 4 7 6 8 1 6 2 6 5 2 1 1 1 3 1 1 9 3 3 3 8 0 1 1 6 , , , , , , , , , , , , 2 2 4 3 1 8 4 9 7 4 7 0 0 0 0 7 4 3 8 2 8 4 9 0 1 2 5 4 2 5 2 0 6 8 6 2 6 6 7 8 9 0 All L O o o th t a h e n e r s r t l o o a f n o s re ign government and official institutions 53, ( ( 394 4 9 ) ) 4 3 1 9 3 5 , , , 1 5 5 4 4 9 1 9 2 2 2 3 2 1 , , , 9 1 8 8 4 3 5 6 9 2 1 1 5 3 1 , , , 1 4 7 5 4 1 7 7 0 4,2 ( ( 5 4 47 ) ) 71 Lease financing receivables 16,293 14,292 2,975 11,317 2,001 72 Bank premises, furniture and fixtures, and other assets representing bank premises 25,320 15,738 1,588 14,150 9,582 73 Real estate owned other than bank premises 3,183 2,005 92 1,913 1,178 74 All other assets 111,066 100,857 51,224 114,061 10,209 75 Investment in unconsolidated subsidiaries and associated companies 1,746 1,609 1,252 357 137 7 7 7 7 6 9 7 8 C N u e N U s t t o . d o S n u m . - e U e a f r d . r s S d o ' . r m e li a s a d f s b o e d i r l e r i e e s t i y s g ( s n d e o o e n b m s r a a i ( c c n d c i c o l e e h m p ) e t i s c a , i n l f c e o ) e r s e i o g u n t s s t u a b n s d i i d n i g a ries, Edge and agreement subsidiaries .... 64, ( 2 ( ( 54 4 4 9 ) ) ) 6 4 1 5 3 8 , , , 3 8 ( 5 1 2 1 42 9 8 ) 2 1 2 7 , , ( ( 0 048 5 4 5 9 ) ) 4 4 6 2 , , 7 ( ( 3 44 4 7 4 0 ) ) 4 ( ( ( 24 4 4 9 ) ) ) 80 Other 45,061 35,418 10,829 24,590 9,643 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20 Continued Banks with foreign offices2 BBaannkkss wwiitthhoouutt IItteemm IInnssuurreedd ffoorreeiiggnn Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ooffffiicceess 81 Total liabilities and equity capital5 1,758,723 1,288,454 (4) (4) 470,269 82 Total liabilities excluding subordinated debt 1,659,954 1,223,814 389,417 898,825 436,140 83 Total deposits 1,325,562 938,484 306,708 631,776 387,078 84 Individuals, partnerships, and corporations 1,029,144 687,061 158,673 528,388 342,083 R5 U.S. government 2,631 1,680 344 1,336 951 86 States and political subdivisions in United States 57,072 27,353 741 26,612 29,719 87 All other 223,383 212,822 146,332 66,490 10,562 88 Foreign governments and official institutions 27,182 26,979 19,144 7,835 203 89 Commercial banks in United States 83,414 73,536 33,037 40,499 9,878 90 U.S. branches and agencies of foreign banks (4) 6,791 4,515 2,276 (4) 91 Other commercial banks in United States (4) 66,745 28,522 38,223 (4) 92 Banks in foreign countries 112,787 112,307 94,151 18,156 480 93 Foreign branches of other U.S. banks (4) 18,485 15,585 2,900 (4) 94 Other banks in foreign countries (4) 93,822 78,565 15,256 (4) 95 Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,333 9,569 618 8,951 3,764 96 Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries 171,055 135,543 269 135,274 35,513 97 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 53,392 48,287 16,142 32,145 5,104 98 Interest-bearing demand notes (note balances) issued to U.S. Treasury 14,241 11,438 (4) 11,438 2,803 99 Other liabilities for borrowed money 39,150 36,849 16,142 20,707 2,301 100 Mortgage indebtedness and liability for capitalized leases 2,340 1,525 16 1,508 815 101 All other liabilities 107,606 99,975 66,281 98,122 7,631 102 Acceptances executed and outstanding 64,497 64,067 12,903 51,164 431 103 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries (4) (4) 42,370 22,059 (4) 104 Other 43,108 35,909 11,009 24,900 7,200 105 Subordinated notes and debentures 6,701 5,094 470 4,624 1,607 106 Total equity capital5 92,068 59,546 (4) (4) 32,521 107 Preferred stock 271 194 (4) (4) 77 108 Common stock 17,471 11,477 (4) (4) 5,994 109 30,549 18,309 (4) (4) 12,240 110 Undivided profits and reserve for contingencies and other capital reserves 43,777 29,566 (4) (4) 14,211 111 Undivided profits 42,982 29,228 (4) (4) 13,754 112 Reserve for contingencies and other capital reserves 794 337 (4) (4) 457 MEMO Deposits in domestic offices 113 Total demand 290,391 192,932 0 192,932 97,460 114 Total savings 211,972 114,419 0 114,419 97,552 115 Total time 516,496 324,425 0 324,425 192,071 116 Time deposits of $100,000 or more 285,671 213,838 0 213,838 71,833 117 Certificates of deposit (CDs) in denominations of $100,000 or more 242,905 175,991 0 175,991 66,914 118 Other 42,766 37,847 0 37,847 4,919 119 Savings deposits authorized for automatic transfer and NOW accounts 53,556 27,540 0 27,540 26,016 120 Money market time deposits (A) in minimum denomination of $10,000 but less than $100,000 with original maturities of 26 weeks, and (B) in minimum denomination of $7,500 but less than $100,000 with original maturities of 91 days 133,382 63,019 0 63,019 70,363 121 All savers certificates 5,717 3,056 0 3,056 2,661 17? Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 12,342 6,222 0 6,222 6,120 123 Demand deposits adjusted6 192,903 116,021 0 116,021 76,882 124 Standby letters of credit, total 98,305 92,489 15,975 76,515 5,816 125 U.S. addressees (domicile) (4) 70,943 (4) (4) (4) 126 Non-U.S. addressees (domicile) (4) 21,546 (4) (4) (4) 127 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 8,697 8,399 790 7,609 298 128 Holdings of commercial paper included in total gross loans (4) (4) (4) 357 958 Average for 30 calendar days (or calendar month) ending with report date 129 Total assets 1,730,139 1,272,078 341,489 930,590 458,060 130 Cash and due from depository institutions 288,708 234,139 124,180 109,959 54,569 131 Federal funds sold and securities purchased under agreements to resell 70,767 41,912 909 41,002 28,855 137 Total loans 976,631 736,174 198,134 538,041 240,456 133 Total deposits 1,301,582 926,476 313,291 613,184 375,106 134 Time CDs in denominations of $100,000 or more in domestic offices 253,328 (4) (4) 185,579 67,750 135 Federal funds purchased and securities sold under agreements to repurchase 173,559 137,851 336 137,515 35,708 136 Other liabilities for borrowed money 37,320 35,193 15,890 19,304 2,127 137 Number of banks 1,689 196 196 196 1,493 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • April 1983 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over ! 7" Consolidated Report of Condition; December 31, 1982 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,433,236 1,220,185 920,209 299,976 213,051 2 Cash and due from depository institutions 167,706 145,480 105,922 39,558 22,227 3 Currency and coin (U.S. and foreign) 14,495 12,436 9,684 2,753 2,059 4 Balances with Federal Reserve Banks 24,340 23,224 16,551 6,672 1,117 5 Balances with other central banks 191 191 134 57 * 6 Demand balances with commercial banks in United States 18,900 12,874 10,305 2,568 6,026 7 All other balances with depository institutions in United States and with banks in foreign countries 44,528 34,475 26,517 7,958 10,053 8 Time and savings balances with commercial banks in United States 13,979 9,819 7.823 1,996 4,160 9 Balances with other depository institutions in United States 264 146 104 43 117 10 Balances with banks in foreign countries 30,286 24,510 18,591 5,919 5,776 11 Cash items in process of collection 65,252 62,280 42,729 19,550 2,972 12 Total securities, loans, and lease financing receivables 1,114,401 935,914 712,301 223,613 178,487 13 Total securities, book value 247,938 196,000 148,197 47,803 51,938 14 U.S. Treasury 75,926 58,828 44,570 14,258 17,098 15 Obligations of other U.S. government agencies and corporations 40,224 29,032 24,136 4,896 11.192 16 Obligations of states and political subdivisions in United States 108,307 86,910 65,610 21,300 21,397 17 All other securities 23,490 21,230 13,881 7,349 2,260 18 Other bonds, notes, and debentures 4,724 2,899 2,181 719 1,824 19 Federal Reserve and corporate stock 1,755 1,570 1,186 384 185 20 Trading account securities 17,011 16,760 10,514 6,246 251 21 Federal funds sold and securities purchased under agreements to resell 73,274 62,122 47,718 14,404 11,152 22 Total loans, gross 802,607 684,351 521,476 162,875 118,255 23 LESS: Unearned income on loans 12,143 9,387 7,107 2,280 2,756 24 Allowance for possible loan loss 10,592 9,277 7,008 2,268 1,315 25 EQUALS: Loans, net 779,872 665,688 507,361 158,327 114,184 Total loans, gross, by category 26 Real estate loans 221,120 178,446 146,841 31,606 42,673 27 Construction and land development 46,625 39,629 31,079 8,550 6,996 28 Secured by farmland 2,251 1,664 1,489 175 588 29 Secured by residential properties 119,173 96,327 80,687 15,639 22,846 30 1- to 4-family 112,927 91,344 76,611 14,733 21,583 31 FHA-insured or VA-guaranteed 6,435 5,662 4,666 996 774 32 Conventional 106,492 85,682 71,945 13,738 20,809 33 Multifamily 6,245 4,982 4,076 906 1.263 34 FHA-insured 338 237 127 109 102 35 Conventional 5,907 4,746 3,949 797 1.161 36 Secured by nonfarm nonresidential properties 53,071 40,828 33,587 7,241 12.243 37 Loans to financial institutions 68,693 64,100 40,458 23,641 4,594 38 REITs and mortgage companies in United States 5,391 5,139 3,855 1,283 253 39 Commercial banks in United States 14,664 11,636 8,385 3,251 3,028 40 Banks in foreign countries 23,192 22,600 12,618 9,982 592 41 Finance companies in United States 11,699 11,404 7,242 4,162 295 42 Other financial institutions 13,747 13,321 8,359 4,963 425 43 Loans for purchasing or carrying securities 13,042 12,451 7,140 5,311 591 44 Brokers and dealers in securities 8,610 8,396 4,110 4,285 214 45 Other 4,432 4,056 3,029 1,026 377 46 Loans to finance agricultural production and other loans to farmers 11,628 10,266 9,382 884 1,363 47 Commercial and industrial loans 321,862 280,984 208,615 72,369 40,878 48 Loans to individuals for household, family, and other personal expenditures 136,861 110,843 90,759 20,084 26,018 49 Installment loans 111,653 90,338 74,658 15,680 21,315 37.805 28,771 23,613 5,158 9,035 51 Credit cards and related plans 34,664 31,512 26,045 5,467 3,152 52 Retail (charge account) credit card 29,166 26,760 22,297 4,462 2,406 53 Check and revolving credit 5,498 4,752 3,747 1,005 746 54 Mobile homes 6,566 5,261 4,829 432 1,305 55 Other installment loans 32,618 24,795 20,172 4,623 7,823 56 Other retail consumer goods 7,316 5,876 4,836 1,040 1,439 57 Residential property repair and modernization 7,464 5,333 4,345 988 2,131 58 Other installment loans for household, family, and other personal expenditures 17,838 13,585 10,991 2,594 4,253 25,208 20,505 16,101 4.404 4,703 29,414 27,261 18,281 8,979 2,154 61 Lease financing receivables 13,318 12,104 9,025 3,080 1,214 62 Bank premises, furniture and fixtures, and other assets representing bank premises 23,732 19,400 15,599 3,801 4,332 63 Real estate owned other than bank premises 3,091 2,509 2,044 465 582 64 All other assets 124,270 116,881 84.343 32,538 7,389 65 Investment in unconsolidated subsidiaries and associated companies 495 387 358 29 107 66 Customers' liability on acceptances outstanding 47,174 46,470 31,726 14,744 704 67 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 42,370 40,322 31,806 8,516 2,047 68 Other 34,232 29,701 20,453 9,249 4,531 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 69 Total liabilities and equity capital8 1,433,236 1,220,185 920,209 299,976 213,051 70 Total liabilities excluding subordinated debt 1,334,965 1,137,366 857,779 279,587 197,600 71 Total deposits 1,018,854 839,933 648,777 191,156 178,921 72 Individuals, partnerships, and corporations 870,470 711,606 557,772 153,834 158,864 73 U.S. government 2,286 1,923 1,645 278 363 74 States and political subdivisions in United States 56,331 42,454 35,066 7,388 13,877 75 All other 77,052 73,121 47,703 25,418 3,931 76 Foreign governments and official institutions 8,038 7,813 4,174 3,639 225 77 Commercial banks in United States 50,377 47,347 33,709 13,638 3,030 78 Banks in foreign countries 18,636 17,960 9,820 8,140 676 79 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,715 10,829 6,590 4,239 1,886 80 Demand deposits 290,391 248,314 182,422 65,892 42,077 81 Mutual savings banks 1,315 1,162 608 554 153 82 Other individuals, partnerships, and corporations 226,406 190,015 141,928 48,088 36,390 83 U.S. government 1,324 1,098 899 200 226 84 States and political subdivisions in United States 10,323 8,492 6,813 1,679 1,831 85 All other 38,310 36,718 25,585 11,133 1,592 86 Foreign governments and official institutions 1,001 957 661 296 44 87 Commercial banks in United States 30,913 29,594 22,084 7,510 1,318 88 Banks in foreign countries 6,396 6,167 2,839 3,328 229 89 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,715 10,829 6,590 4,239 1,886 90 Time deposits 516,496 423,433 329,019 94,413 93,063 91 Mutual savings banks 169 147 96 51 22 92 Other individuals, partnerships, and corporations 433,044 353,961 279,327 74,634 79,083 93 U.S. government 903 775 698 77 128 94 States and political subdivisions in United States 43,718 32,212 26,842 5,369 11,506 95 All other 38,662 36,338 22,056 14,282 2,324 96 Foreign governments and official institutions 7,007 6,827 3,483 3,343 180 97 Commercial banks in United States 19,416 17,718 11,592 6,126 1,697 98 Banks in foreign countries 12,240 11,793 6,981 4,812 447 99 Savings deposits 211,972 168,192 137,341 30,851 43,780 100 Mutual savings banks 30 4 3 * 27 101 Other individuals, partnerships, and corporations 209,512 166,322 135,815 30,507 43,189 102 Individuals and nonprofit organizations 195,174 155,672 126,993 28,678 39,502 103 Corporations and other profit organizations 14,338 10,651 8,822 1,829 3,687 104 U.S. government 60 50 49 1 10 105 States and political subdivisions in United States 2,290 1,751 1,411 340 540 106 All other 80 65 62 3 15 107 Foreign governments and official institutions 31 30 30 1 1 108 Commercial banks in United States 49 35 32 2 14 109 Banks in foreign countries * * * * * 110 Federal funds purchased and securities sold under agreements to repurchase 170,786 159,737 114,013 45,724 11,049 111 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 37,249 35,041 22,747 12,294 2,209 112 Interest-bearing demand notes (note balances) issued to U.S. Treasury 14,241 13,183 10,064 3,119 1,059 113 Other liabilities for borrowed money 23,008 21,858 12,683 9,174 1,150 114 Mortgage indebtedness and liability for capitalized leases 2,324 1,914 1,622 292 410 115 All other liabilities 105,753 100,741 70,620 30,121 5,012 116 Acceptances executed and outstanding 51,595 50,890 36,092 14,797 705 117 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 22,059 21,109 13,961 7,148 950 118 Other 32,100 28,742 20,567 8,175 3,357 119 Subordinated notes and debentures 6,231 5,153 3,424 1,729 1,078 120 Total equity capital8 92,040 77,666 59,006 18,660 14,373 MEMO 17.1 Time deposits of $100,000 or more 285,671 244,282 180,236 64,046 41,388 122 Certificates of deposit (CDs) in denominations of $100,000 or more 242,905 204,307 154,323 49,984 38,598 P3 Other 42,766 39,976 25,914 14,062 2,790 124 Savings deposits authorized for automatic transfer and NOW accounts 53,556 42,530 34,518 8,012 11,026 175 Money market time deposits (A) in minimum denomination of $10,000 but less than $100,000 with original maturities of 26 weeks, and (B) in minimum denomination of $7,500 but less than $100,000 with original maturities of 91 days 133,382 103,828 86,727 17,101 29,554 176 All savers certificates 5,717 4,509 3,712 797 1,208 177 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 12,342 9,684 7,895 1,789 2,658 128 Demand deposits adjusted6 192,903 155,342 116,709 38,632 37,561 179 Standby letters of credit 82,331 79,216 49,652 29,564 3,115 130 Conveyed to others through participation (included in standby letters of credit) 7,907 7,818 5,580 2,238 89 131 Holdings of commercial paper included in total gross loans 1,315 842 655 187 473 Average for 30 calendar days (or calendar month) ending with report date 13? Total assets 1,388,650 1,180,874 889,603 291,271 207,776 133 Cash and due from depository institutions 164,528 143,691 105,094 38,596 20,838 134 Federal funds sold and securities purchased under agreements to resell 69,858 60,166 44,932 15,234 9,692 135 Total loans 778,497 663,650 503,318 160,333 114,847 136 Total deposits 988,291 814,483 628,553 185,929 173,808 137 Time CDs in denominations of $100,000 or more in domestic offices 253,328 213,767 161,843 51,924 39,562 138 Federal funds purchased and securities sold under agreements to repurchase 173,223 161,725 117,112 44,613 11,498 139 Other liabilities for borrowed money 21,431 20,248 11,463 8,785 1,183 140 Number of banks 1,689 1,056 881 175 633 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • April 1983 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition; December 31, 1982 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,861,199 1,398,810 1,069,984 328,826 462,389 2 Cash and due from depository institutions 207,313 163,529 121,145 42,384 43,784 3 Currency and coin (U.S. and foreign) 19,529 14,696 11,575 3,121 4,833 4 Balances with Federal Reserve Banks 26,665 25,179 18,192 6,987 1,487 5 Balances with other central banks 191 191 134 57 * 6 Demand balances with commercial banks in United States 34,829 18,337 14,993 3,344 16,492 7 All other balances with depository institutions in United States and with banks in foreign countries 57,883 41,036 32,062 8,974 16,847 8 Cash items in process of collection 68,213 64,087 44,189 19,898 4,126 9 Total securities, loans, and lease financing receivables 1,484,200 1,088,821 840,415 248,407 395,378 10 Total securities, book value 373,394 247,849 191,657 56,192 125,546 11 U.S. Treasury 117,782 76,137 58,821 17,316 41,646 12 Obligations of other U.S. government agencies and corporations 76,262 43,516 36,178 7,338 32,746 13 Obligations of states and political subdivisions in United States 154,003 106,115 82,076 24,039 47,888 14 All other securities 25,348 22,081 14,582 7,499 3,267 15 Federal funds sold and securities purchased under agreements to resell 102,807 75,097 58,505 16,592 27,710 16 Total loans, gross 1,025,567 775,897 598,232 177,665 249,670 17 LESS: Unearned income on loans 18,512 12,103 9,377 2,726 6,409 18 Allowance for possible loan loss 12,806 10,232 7,821 2,412 2,574 19 EQUALS: Loans, net 994,260 753,562 581,034 172,528 240,699 Total loans, gross, by category 20 Real estate loans 298,162 209,661 172,622 37,039 88,501 21 Construction and land development 52,225 41,594 32,825 8,769 10,631 22 Secured by farmland 8,362 3,719 3,117 601 4,643 23 Secured by residential properties 165,447 115,953 96,743 19,210 49,495 24 1- to 4-family 157,821 110,447 92,226 18,221 47,374 25 Multifamily 7,627 5,506 4,517 989 2,121 26 Secured by nonfarm nonresidential properties 72,127 48,395 39,937 8,459 23,731 27 Loans to financial institutions 73,220 66,094 42,210 23,884 7,126 28 Loans for purchasing or carrying securities 13,705 12,717 7,368 5,350 988 29 Loans to finance agricultural production and other loans to farmers 36,130 19,504 16,974 2,529 16,627 30 Commercial and industrial loans 379,566 304,766 229,030 75,735 74,800 31 Loans to individuals for household, family, and other personal expenditures 191,618 134,308 110,452 23,856 57,311 32 Installment loiins 151,958 107,916 89,423 18,493 44,042 33 Passenger automobiles 58,231 37,466 30,923 6,543 20,765 34 Credit cards and related plans 36,697 32,845 27,152 5,693 3,852 9,760 6,690 6,025 665 3,071 36 All other installment loans for household, family, and other personal expenditures 47,270 30,916 25,323 5,593 16,355 37 Single-payment loans 39,660 26,391 21,028 5,363 13,269 38 All other loans 33,174 28,846 19,576 9,270 4,328 39 Lease financing receivables 13,738 12,314 9,218 3,095 1,424 40 Bank premises, furniture and fixtures, and other assets representing bank premises 32,301 22,971 18,608 4,363 9,331 41 Real estate owned other than bank premises 4,281 2,959 2,406 553 1,322 42 All other assets 133,077 120,530 87,410 33,120 12,546 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 43 Total liabilities and equity capital8 1,861,199 1,398,810 1,069,984 328,826 462,389 44 Total liabilities excluding subordinated debt 1,726,011 1,300,598 994,640 305,957 425,413 45 Total deposits 1.393,696 995,174 779,122 216,052 398,522 46 Individuals, partnerships, and corporations 1.209,705 852,690 676,236 176,454 357,015 47 U.S. government 3,006 2,226 1,912 315 780 48 States and political subdivisions in United States 86,393 54,115 44,915 9,200 32,278 49 All other 78,409 73,846 48,243 25,603 4,562 50 Certified and officers' checks, travelers checks, and letters of credit sold for cash 16,174 12,288 7,808 4,480 3,886 51 Demand deposits 369,933 281,833 210,784 71,050 88,100 52 Individuals, partnerships, and corporations 297,324 220,372 167,296 53,076 76,952 53 U.S. government 1,879 1,333 1,106 227 546 54 States and political subdivisions in United States 15,557 10,666 8,645 2,021 4,891 55 All other 38,990 37,165 25,921 11,244 1,825 56 Certified and officers' checks, travelers checks, and letters of credit sold for cash 16,174 12,288 7,808 4,480 3,886 57 Time deposits 720,398 506,164 398,352 107,812 214,234 58 Other individuals, partnerships, and corporations 614,176 428,086 341,365 86,721 186,090 59 U.S. government 1,051 838 752 86 212 60 States and political subdivisions in United States 65,881 40,648 33,996 6,651 25,234 61 All other 39,291 36,593 22,239 14,354 2,698 62 Savings deposits 303,370 207,183 169,991 37,192 96,187 63 Corporations and other profit organizations 17,962 12,101 10,014 2,086 5,862 64 Other individuals, partnerships, and corporations 280,254 192,145 157,575 34,571 88,109 65 U.S. government 77 55 53 2 21 66 States and political subdivisions in United States 4,957 2,802 2,274 528 2,156 67 All other 120 80 75 5 40 68 Federal funds purchased and securities sold under agreements to repurchase 178,849 164,191 117,632 46,558 14,659 69 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money 38,861 35,875 23,356 12,519 2,986 70 Mortgage indebtedness and liability for capitalized leases 2,737 2,064 1,744 319 673 71 All other liabilities 111,869 103,295 72,794 30,501 8,574 72 Subordinated notes and debentures 6,787 5,388 3,632 1,755 1,399 73 Total equity capital8 128,390 92,813 71,703 21,110 35,577 MEMO ITEMS 74 Time deposits of $100,000 or more 333,175 263,172 196,490 66,682 70,003 75 Certificates of deposit (CDs) in denominations of $100,000 or more 287,019 221,830 169,367 52,462 65,189 76 Other 46,156 41,342 27,123 14,220 4,814 77 Savings deposits authorized for automatic transfer and NOW accounts 83,242 55,046 45,151 9,895 28,196 78 Money market time deposits (A) in minimum denomination of $10,000 but less than $100,000 with original maturities of 26 weeks, and (B) in minimum denomination of $7,500 but less than $100,000 with original maturities of 91 days 225,901 141,583 118,287 23,296 84,319 79 All savers certificates 8,499 5,639 4,651 988 2,860 80 Total Individual Retirement Accounts (IRA) and Keogh plan accounts 17,690 11,837 9,711 2,126 5,853 81 Demand deposits adjusted6 268,251 186,373 143,069 43,304 81,878 82 Total standby letters of credit 84,219 79,974 50,298 29,675 4,245 Average for 30 calendar days (or calendar month) ending with report date 83 Total deposits 1,356,061 966,452 756,145 210,307 389,609 84 Number of banks 14,436 5,618 4,579 1,039 8,818 1. Effective Dec. 31, 1978, the report of condition was substantially revised for 3. Foreign offices include branches in foreign countries and in U.S. territories commercial banks. Commercial banks with assets less than $100 million and with and possessions, subsidiaries in foreign countries, and all offices of Edge Act and domestic offices only were given the option to complete either the abbreviated or agreement corporations wherever located. the standard set of reports. Banks with foreign offices began reporting in greater 4. This item is unavailable for all or some of the banks because of the lesser detail on a consolidated domestic and foreign basis. These tables reflect the detail available from banks without foreign offices, the inapplicability of certain varying levels of reporting detail. items to banks that have only domestic offices, and the absence of detail on a fully Beginning Dec. 3, 1981, depository institutions may establish international consolidated basis for banks with foreign offices. banking facilities (IBFs). Activity of IBFs established by U.S. commercial banks 5. Equity capital is not allocated between the domestic and foreign offices of is reflected in the appropriate asset and liability line items in the domestic office banks with foreign offices. portion of the tables. Activity of IBFs established by Edge Act and Agreement 6. Demand deposits adjusted equal demand deposits other than domestic subsidiaries of U.S. commercial banks is reflected in the appropriate asset and commercial interbank and U.S. government less cash items in process of liability line items in the foreign office portion of the tables. When there is a collection. column for fully consolidated foreign and domestic data, activity of IBFs is 7. Domestic offices exclude branches in foreign countries and in U.S. terrireflected in the appropriate asset and liability line items in that portion of the tories and possessions, subsidiaries in foreign countries, and all offices of Edge tables. Act and agreement corporations wherever located. 2. All transactions between domestic and foreign offices of a bank are reported 8. This item contains the capital accounts of U.S. banks that have no Edge or in "Net due from" and "Net due to" (lines 79 and 103). All other lines represent foreign operations and reflects the difference between domestic office assets and transactions with parties other than the domestic and foreign offices of each bank. liabilities of U.S. banks with Edge or foreign operations excluding the capital Since these intraoffice transactions are erased by consolidation, total assets and accounts of their Edge or foreign subsidiaries. liabilities are the sum of all except intraoffice balances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • April 1983 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1982' Millions of dollars All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches4 Agencies Branches4 Agencies ttoottaall33 bbrraanncchheess Branches Agencies 1 Total assets5 207,704 153,574 54,130 135,137 9,236 41,201 9,649 7,710 4,772 2 Cash and due from depository institutions 30,956 28,182 2,774 26,573 780 11,,886633 1,292 255 194 3 Currency and coin (U.S. and foreign) 20 17 3 13 1 11 2 1 1 4 Balances with Federal Reserve Banks 1,305 1,192 113 1,049 65 42 32 103 14 5 Balances with other central banks 18 15 3 15 0 3 0 0 0 6 Demand balances with commercial banks in United States 1,226 1,058 168 979 82 72 39 33 22 7 All other balances with depository institutions in United States and with banks in foreign countries 28,181 25,728 2,453 2244,,334499 608 11,,773366 11,,221177 116 156 8 Time and savings balances with commercial banks in United States 12,657 11,373 1,284 10,494 421 821 726 107 88 9 Balances with other depository institutions in United States 99 90 9 90 5 2 0 0 2 10 Balances with banks in foreign countries 15,425 14,264 1,161 13,765 182 913 491 9 66 11 Foreign branches of U.S. banks 1,444 1,406 38 1,362 17 21 44 0 0 12 Other banks in foreign countries 13,981 12,858 1,123 12,403 165 892 446 9 66 13 Cash items in process of collection 206 172 34 168 24 9 3 2 1 14 Total securities, loans, and lease financing receivables . 132,979 100,495 32,485 87,565 5,846 23,574 7,630 4,382 3,983 15 Total securities, book value 5,974 5,482 492 5,254 206 288 191 29 6 16 U.S. Treasury 3,5% 3,421 176 3,353 138 41 43 22 0 17 Obligations of other U.S. government agencies and corporations 535 516 19 508 2 20 0 4 1 18 Obligations of states and political subdivisions in United States 67 62 5 45 1 1 15 1 4 19 Other bonds, notes, debentures, and corporate stock . 1,775 1,484 292 1,348 65 227 133 2 1 20 Federal funds sold and securities purchased under agreements to resell 6,872 5,339 1,532 4,805 813 678 351 162 61 By holder 21 Commercial banks in United States 5,674 4,293 1,381 3,780 752 633 330 162 16 22 Others 1,198 1,046 152 1,025 62 45 21 0 45 By type 23 One-day maturity or continuing contract 6,689 5,157 1,532 4,624 813 678 350 162 61 24 Securities purchased under agreements to resell . 336 318 18 173 18 1 20 125 0 25 Other 6,353 4,839 1,514 4,451 796 677 330 37 61 26 Other securities purchased under agreements to resell 183 182 1 181 0 1 1 0 0 27 Total loans, gross 127,179 95,132 32,047 82,415 5,652 23,326 7,448 4,358 3,979 28 LESS: Unearned income on loans 174 120 54 105 12 40 9 6 2 29 EQUALS: Loans, net 127,004 95,012 31,992 82,310 5,640 23,286 7,439 4,352 3,977 Total loans, gross, by category 30 Real estate loans 5,098 2,137 2,961 1,437 26 2,052 77 504 1,003 31 Loans to financial institutions 50,134 39,781 10,353 36,447 1,914 7,989 3,035 211 539 32 Commercial banks in United States 26,940 20,640 6,300 18,584 684 5,476 1,787 198 210 33 U.S. branches and agencies of other foreign banks . 24,012 18,268 5,743 16,488 425 5,193 1,547 188 171 34 Other commercial banks 2,928 2,372 556 2,096 259 283 241 10 39 35 Banks in foreign countries 21,599 17,885 3,714 16,933 969 2,449 923 12 312 36 Foreign branches of U.S. banks 852 636 216 568 91 126 68 0 0 37 Other 20,747 17,249 3,498 16,365 879 2,324 855 12 312 38 Other financial institutions 1,595 1,256 339 930 260 64 324 1 16 39 Loans for purchasing or carrying securities 873 821 52 742 52 78 0 1 0 40 Commercial and industrial loans 56,892 40,683 16,208 32,750 2,822 11,766 3,876 3,481 2,197 41 U.S. addressees (domicile) 33,137 22,811 10,326 16,590 921 8,385 3,280 2,430 1,532 42 Non-U.S. addressees (domicile) 23,754 17,872 5,882 16,161 1,901 3,381 596 11,,005511 665 43 Loans to individuals for household, family, and other personal expenditures 222 153 70 106 15 58 9 26 8 44 All other loans 13,960 11,558 2,402 10,933 824 1,384 451 135 234 45 Loans to foreign governments and official institutions 12,617 10,322 2,295 9,838 772 1,347 374 74 212 46 Other 1,343 1,236 107 1,094 52 37 77 61 22 47 Lease financing receivables 1 1 0 1 0 0 0 0 0 48 All other assets 36,897 19,558 17,339 16,194 1,7% 15,085 376 2,911 535 49 Customers' liability on acceptances outstanding .... 11,657 8,834 2,824 8,566 387 2,382 121 126 75 50 U.S. addressees (domicile) 6,812 4,545 2,267 4,414 58 2,207 111 9 12 51 Non-U.S. addressees (domicile) 4,846 4,289 556 4,152 330 175 10 117 62 52 Net due from related banking institutions6 19,809 6,447 13,362 3,749 1,198 11,834 0 2,675 353 53 Other 5,431 4,277 1,154 3,879 211 870 254 110 107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies All 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches4 Agencies Branches4 Agencies ttoottaall33 bbrraanncchheess Branches Agencies 54 Total liabilities5 207,704 153,574 54,130 135,137 9,236 41,201 9,649 7,710 4,772 55 Total deposits and credit balances 91,353 80,584 10,769 72,627 3,548 6,303 2,764 4,874 1,237 56 Individuals, partnerships, and corporations 37,731 34,844 2,887 28,815 948 1,213 1,068 4,712 975 57 U.S. addressees (domicile) 28,233 28,140 93 22,506 54 187 877 4,594 15 58 Non-U.S. addressees (domicile) 9,498 6,703 2,794 6,309 894 1,026 191 117 959 59 U.S. government, states, and political subdivisions in United States 91 91 0 13 0 2 1 75 0 60 All other 53,532 45,650 7,882 43,799 2,599 5,088 1,696 87 262 61 Foreign governments and official institutions .... 5,798 4,512 1,286 4,452 883 386 38 22 16 62 Commercial banks in United States 17,493 14,342 3,151 13,414 718 2,374 843 22 123 63 U.S. branches and agencies of other foreign banks 11,952 9,913 2,039 9,352 419 1,562 550 7 61 64 Other commercial banks in United States 5,541 4,430 1,111 4,061 299 812 293 15 62 65 Banks in foreign countries 29,496 26,156 3,340 25,327 933 2,299 799 30 109 66 Foreign branches of U.S. banks 5,842 4,967 875 4,657 383 475 292 19 17 67 Other banks in foreign countries 23,654 21,189 2,465 20,670 550 1,824 508 11 92 68 Certified and officers' checks, traveler's checks, and letters of credit sold for cash 744 639 105 607 65 29 15 13 14 69 Demand deposits 3,326 3,095 231 2,792 84 138 108 118 85 70 Individuals, partnerships, and corporations 1,641 1,541 100 1,357 18 42 86 81 58 71 U.S. addressees (domicile) 928 911 17 741 17 13 82 74 0 72 Non-U.S. addressees (domicile) 713 630 83 616 0 29 3 7 58 73 U.S. government, states, and political subdivisions in United States 4 4 0 3 0 0 0 1 0 74 All other 1,681 1,550 131 1,433 66 96 22 36 27 75 Foreign governments and official institutions .... 185 177 8 153 0 8 1 22 0 76 Commercial banks in United States 94 94 0 38 0 54 0 1 0 77 U.S. branches and agencies of other foreign banks 7 7 0 7 0 0 0 0 0 78 Other commercial banks in United States 87 87 0 31 0 54 0 1 0 79 Banks in foreign countries 659 641 18 635 1 5 6 0 12 80 Certified and officers' checks, traveler's checks, and letters of credit sold for cash 744 639 105 607 65 29 15 13 14 81 Time deposits 87,116 76,840 10,276 69,294 3,296 6,095 2,616 4,706 1,109 82 Individuals, partnerships, and corporations 35,543 32,930 2,613 27,194 837 1,103 943 4,581 885 83 U.S. addressees (domicile) 26,937 26,936 1 21,570 1 134 758 4,474 0 84 Non-U.S. addressees (domicile) 8,606 5,994 2,612 5,624 836 969 184 108 885 85 U.S. government, states, and political subdivisions in United States 86 86 0 10 0 2 0 74 0 86 All other 51,487 43,824 7,663 42,090 2,459 4,990 1,673 51 224 87 Foreign governments and official institutions .... 5,518 4,253 1,265 4,216 871 378 37 0 16 88 Commercial banks in United States 17,297 14,179 3,118 13,305 687 2,319 843 21 123 89 U.S. branches and agencies of other foreign banks 11,932 9,893 2,039 9,333 419 1,561 550 7 61 90 Other commercial banks in United States 5,365 4,286 1,079 3,973 268 757 292 14 61 91 Banks in foreign countries 28,672 25,392 3,280 24,568 901 2,294 794 30 85 92 Savings deposits 375 335 39 228 0 43 40 48 16 93 Individuals, partnerships, and corporations 375 335 39 228 0 43 40 48 16 94 U.S. addressees (domicile) 272 272 0 174 0 17 36 45 0 95 Non-U.S. addressees (domicile) 103 63 39 54 0 26 4 3 16 96 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 97 All other 0 0 0 0 0 0 0 0 0 98 Credit balances 537 314 223 312 168 27 0 2 28 99 Individuals, partnerships, and corporations 173 38 135 36 94 25 0 2 16 too U.S. addressees (domicile) 96 22 74 20 36 23 0 2 15 101 Non-U.S. addressees (domicile) 76 16 61 16 58 2 0 0 1 102 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 103 All other 364 276 88 276 74 2 0 0 11 104 Foreign governments and official institutions .... 96 82 13 82 12 1 0 0 0 10S Commercial banks in United States 103 70 33 70 32 1 0 0 0 106 U.S. branches and agencies of other foreign banks 14 13 1 13 0 1 0 0 0 107 Other commercial banks in United States 89 57 32 57 32 0 0 0 0 108 Banks in foreign countries 166 124 42 124 31 0 0 0 11 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • April 1983 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa.. IIlllliinnooiiss,, Total Branches4 Agencies Branches4 Agencies ttoottaall33 bbrraanncchheess Branches Agencies 109 Federal funds purchased and securities sold under agreement to repurchase 18,870 12,244 6.626 10,618 1,444 4,377 1,051 397 983 By holder NO Commercial banks in United States 16,205 10,544 5.661 9.114 1,158 4,134 981 376 441 111 Others 2,665 1,700 965 1,504 286 243 71 20 541 By type 112 One-day maturity or continuing contract 17,411 10,894 6,517 9.308 1.419 4.296 1,011 397 981 113 Securities sold under agreements to repurchase . . 920 815 106 647 53 51 53 115 1 114 Other 16,490 10,079 6,412 8.661 1,366 4,245 958 282 979 115 Other securities sold under agreements to repurchase 1,460 1,351 109 1.310 25 82 41 0 2 116 Other liabilities for borrowed money 49,898 22,918 26,981 20.723 1,911 24,605 1,332 796 531 117 Owed to banks 47,597 21,108 26,489 18,964 1,902 24,122 1,295 787 527 118 U.S. addressees (domicile) 45,850 19,751 26,098 17,726 1,684 24.043 1,277 703 417 119 Non-U.S. addressees (domicile) 1,747 1,356 391 1.238 217 79 18 84 111 120 Owed to others 2,301 1,810 491 1.758 9 483 37 10 4 121 U.S. addressees (domicile) 1,961 1,564 397 1.516 1 401 33 10 0 122 Non-U.S. addressees (domicile) 341 246 94 243 8 82 4 0 4 123 All other liabilities 47,583 37,829 9,754 31,169 2,333 5,915 4,501 1,643 2.021 124 Acceptances executed and outstanding 13,347 10,371 2,976 10.104 430 2,488 121 125 77 125 Net due to related banking institutions6 30.395 24,420 5.976 18,274 1,752 2,826 4,233 1,433 1,878 126 Other 3,841 3,038 803 2.791 151 601 147 85 66 MEMO 127 Time deposits of $100,000 or more 68,707 62,325 6,382 55,551 69 5,568 1.913 4,644 961 128 Certificates of deposit (CDs) in denominations of $100,000 or more 33,998 32,345 1.653 26,740 25 1,037 940 4,552 705 129 Other 34,709 29,981 4.728 28,812 45 4,532 973 92 256 130 Savings deposits authorized for automatic transfer and NOW accounts 50 31 18 7 0 11 12 8 12 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 1 1 0 0 0 1 0 0 0 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months 3,081 3,059 22 2.747 10 10 44 262 9 133 Acceptances refinanced with a U.S.-chartered bank . . 3,734 2,892 842 2.555 86 753 33 304 4 134 Statutory or regulatory asset pledge requirement 86,225 83.945 2.280 77,218 2,224 70 6,667 40 5 135 Statutory or regulatory asset maintenance requirement 9,437 9,265 171 5.808 22 506 335 2,618 147 136 Commercial letters of credit 7,612 5,226 2,387 4.747 482 1,846 273 190 74 137 Standby letters of credit, total 16,330 14,168 2,163 12.921 424 1,169 588 441 787 138 U.S. addressees (domicile) 14,089 12,275 1,814 11.370 334 935 434 303 714 139 Non-U.S. addressees (domicile) 2,241 1,893 348 1.551 90 235 154 138 73 140 Standby letters of credit conveyed to others through participation (included in total standby letters of credit) 3,086 2,868 218 2.803 111 107 45 20 0 141 Holdings of commercial paper included in total gross loans 968 852 117 811 28 57 41 0 31 142 Holdings of acceptances included in total commercial and industrial loans 5,221 3,864 1.357 3.687 134 1,205 64 111 20 143 Immediately available funds with a maturity greater than one day (included in other liabilities for borrowed money) 36,610 14,830 21,780 13.051 1,652 19.985 1,273 451 198 144 Gross due from related banking institutions6 78,913 53,942 24,970 47,593 5,526 18.557 2,362 3,822 1,052 145 U.S. addressees (domicile) 21,234 9,314 11,920 5.392 1,435 10,322 134 3,642 309 146 Branches and agencies in the United States 20,781 9,141 11,640 5.230 1,349 10,130 126 3,642 304 147 In the same state as reporter 500 79 421 44 63 355 0 35 4 148 In other states 20,280 9,062 11,218 5.185 1,286 9,775 126 3,608 301 149 U.S. banking subsidiaries7 453 173 280 163 86 192 8 0 4 150 Non-U.S. addressees (domicile) 57,679 44,628 13,051 42,201 4,091 8,235 2,229 179 744 151 Head office and non-U.S. branches and agencies. 55,453 42,676 12,778 40.306 4,003 8,119 2,184 166 675 152 Non-U.S. banking companies and offices 2,225 1,953 273 1.895 88 117 45 13 69 153 Gross due to related banking institutions6 89,499 71,915 17.584 62,118 6,080 9,550 6,595 2,579 2,577 154 U.S. addressees (domicile) 19,989 14,252 5,737 8.794 1,318 3,403 3,216 1,890 1,368 155 Branches and agencies in the United States 19,670 14,067 5,604 8.649 1,279 3,321 3,206 1,887 1,328 156 In the same state as reporter 570 129 442 63 143 278 0 66 21 157 In other states 19,100 13,938 5,162 8.586 1,137 3,043 3,206 1,821 1,307 158 U.S. banking subsidiaries7 318 185 133 145 39 82 10 3 40 159 Non-U.S. addressees (domicile) 69,511 57,663 11.848 53,325 4.761 6,147 3,379 689 1,209 160 Head office and non-U.S. branches and agencies. 67,880 56,201 11,679 51,989 4,690 6,067 3,289 659 1,186 161 Non-U.S. banking companies and offices 1,631 1,462 168 1.336 72 80 90 30 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches4 Agencies Branches4 Agencies ttoottaall33 bbrraanncchheess Branches Agencies Average for 30 calendar days (or calendar month) ending with report date 162 Total assets 206,146 151,625 54,520 133,695 9,185 41,409 9,436 7,553 4,868 163 Cash and due from depository institutions 29,008 26,464 2,544 24,862 600 1,810 1,303 238 195 164 Federal funds sold and securities purchased under agreements to resell 6,467 4,797 1,671 4,520 1,071 534 188 86 69 165 Total loans 121,991 90,342 31,649 77,993 5,219 23,307 7,297 4,285 3,891 166 Loans to banks in foreign countries 20,204 16,449 3,755 15,660 1,062 2,414 781 4 282 167 Total deposits and credit balances 86,847 76,525 10,321 68,863 3,330 6,137 2,528 4,833 1,156 168 Time CDs in denominations of $100,000 or more 32,513 30,977 1,536 25,406 30 907 889 4,574 706 169 Federal funds purchased and securities sold under agreements to repurchase 18,707 12,032 6,674 10,522 1,365 4,318 1,178 312 1,011 170 Other liabilities for borrowed money 49,380 22,583 26,798 20,553 1,551 24,805 1,209 759 503 171 Number of reports filed8 409 221 188 136 44 109 42 32 46 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, footnote 6). On the former monthly branch and agency report, available through "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign the G. 11 statistical release, gross balances were included in total assets and total Banks." This form was first used for reporting data as of June 30, 1980. From liabilities. Therefore, total asset and total liability figures in this table are not November 1972 through May 1980, U.S. branches and agencies of foreign banks comparable to those in the G.ll tables. had filed a monthly FR 886a report. Aggregate data from that report were 6. "Related banking institutions" includes the foreign head office and other available through the Federal Reserve statistical release G.ll, last issued on July U.S. and foreign branches and agencies of the bank, the bank's parent holding 10, 1980. Data in this table and in the G.ll tables are not strictly comparable company, and majority-owned banking subsidiaries of the bank and of its parent because of differences in reporting panels and in definitions of balance sheet holding company (including subsidiaries owned both directly and indirectly). items. Gross amounts due from and due to related banking institutions are shown as 2. Includes the District of Columbia. memo items. 3. Agencies account for virtually all of the assets and liabilities reported in 7. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majority- California. owned by the foreign bank and by related foreign banks and includes U.S. offices 4. Includes all offices that have the power to accept deposits from U.S. of U.S.-chartered commercial banks, of Edge Act and Agreement corporations, residents, including any such offices that are considered agencies under state law. and of New York State (Article XII) investment companies. 5. Total assets and total liabilities include net balances, if any, due from or due 8. In some cases two or more offices of a foreign bank within the same to related banking institutions in the United States and in foreign countries (see metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 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 STANLEY J. SIGEL, Assistant to the Board WILLIAM R. JONES, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM R. MALONI, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director JOSEPH S. ZEISEL, Deputy Director MICHAEL BRADFIELD, General Counsel MICHAEL J. PRELL, Senior Associate Director J. VIRGIL MATTINGLY, JR., Associate General Counsel JARED J. ENZLER, Associate Director GILBERT T. SCHWARTZ, Associate General Counsel DONALD L. KOHN, Associate Director RICHARD M. ASHTON, Assistant General Counsel ELEANOR J. STOCKWELL, Associate Director NANCY P. JACKLIN, Assistant General Counsel DAVID E. LINDSEY, Deputy Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel FREDERICK M. STRUBLE, Deputy Associate Director HELMUT F. WENDEL, Deputy Associate Director MARTHA BETHEA, Assistant Director JOE M. CLEAVER, Assistant Director OFFICE OF THE SECRETARY ROBERT M. FISHER, Assistant Director SUSAN J. LEPPER, Assistant Director WILLIAM W. WILES, Secretary THOMAS D. SIMPSON, Assistant Director BARBARA R. LOWREY, Associate Secretary LAWRENCE SLIFMAN, Assistant Director JAMES MCAFEE, Associate Secretary STEPHEN P. TAYLOR, Assistant Director PETER A. TINSLEY, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) DIVISION OF CONSUMER AND COMMUNITY AFFAIRS DIVISION OF INTERNATIONAL FINANCE GRIFFITH L. GARWOOD, Director EDWIN M. TRUMAN, Director JERAULD C. KLUCKMAN, Associate Director ROBERT F. GEMMILL, Senior Associate Director GLENN E. LONEY, Assistant Director CHARLES J. SIEGMAN, Senior Associate Director DOLORES S. SMITH, Assistant Director LARRY J. PROMISEL, Associate Director DALE W. HENDERSON, Deputy Associate Director SAMUEL PIZER, Staff Adviser DIVISION OF BANKING MICHAEL P. DOOLEY, Assistant Director SUPERVISION AND REGULATION RALPH W. SMITH, JR., Assistant Director JOHN E. RYAN, Director WILLIAM TAYLOR, Deputy Director FREDERICK R. DAHL, Associate Director DON E. KLINE, 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

A81 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 S. DAVID FROST, 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 GLENN L. CUMMINS, Assistant Director WALTER ALTHAUSEN, Assistant Director NEAL H. HILLERMAN, Assistant Director CHARLES W. BENNETT, Assistant Director ELIZABETH A. JOHNSON, Assistant Director ANNE M. DEBEER, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director JACK DENNIS, JR., Assistant Director ROBERT J. ZEMEL, Assistant Director RICHARD B. GREEN, 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 BRENT L. BOWEN, Assistant 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

82 Federal Reserve Bulletin • April 1983 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman ANTHONY M. SOLOMON, Vice Chairman LYLE E. GRAMLEY PRESTON MARTIN EMMETT J. RICE ROGER GUFFEY FRANK E. MORRIS THEODORE H. ROBERTS SILAS KEEHN J. CHARLES PARTEE NANCY H. TEETERS HENRY C. WALLICH STEPHEN H. AXILROD, Staff Director and Secretary RICHARD G. DAVIS, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary THOMAS E. DAVIS, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary ROBERT EISENMENGER, Associate Economist MICHAEL BRADFIELD, General Counsel EDWARD C. ETTIN, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL J. PRELL, Associate Economist JAMES L. KICHLINE, Economist KARL A. SCHELD, Associate Economist EDWIN M. TRUMAN, Economist (International) CHARLES J. SIEGMAN, Associate Economist ANATOL BALBACH, 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 RONALD TERRY, Eighth District, President WILLIAM S. EDGERLY, First District, Vice President LEWIS T. PRESTON, Second District ROGER E. ANDERSON, Seventh District JOHN H. WALTHER, Third District E. PETER GILLETTE, JR., Ninth District JOHN G. MCCOY, Fourth District N. BERNE HART, Tenth District VINCENT C. BURKE, JR., Fifth District T. C. FROST, JR., Eleventh District PHILIP F. SEARLE, Sixth District JOSEPH J. PINOLA, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary CONSUMER ADVISORY COUNCIL SUSAN PIERSON DE WITT, Chicago, Illinois, Chairman WILLIAM J. O'CONNOR, JR., Buffalo, New York, Vice Chairman ARTHUR F. BOUTON, Little Rock, Arkansas KENNETH V. LARKIN, San Francisco, California JAMES G. BOYLE, Austin, Texas TIMOTHY D. MARRINAN, Minneapolis, Minnesota GERALD R. CHRISTENSEN, Salt Lake City, Utah STANLEY L. MULARZ, Chicago, Illinois THOMAS L. CLARK, JR., New York, New York WILLARD P. OGBURN, Boston, Massachusetts JEAN A. CROCKETT, Philadelphia, Pennsylvania ELVA QUIJANO, San Antonio, Texas JOSEPH N. CUGINI, Westerly, Rhode Island JANET J. RATHE, Portland, Oregon MEREDITH FERNSTROM, New York, New York JANET M. SCACCIOTTI, Providence, Rhode Island ALLEN J. FISHBEIN, Washington, D.C. GLENDA G. SLOANE, Washington, D.C. E. C. A. FORSBERG, SR., Atlanta, Georgia HENRY J. SOMMER, Philadelphia, Pennsylvania LUTHER R. GATLING, New York, New York NANCY Z. SPILLMAN, LOS Angeles, California RICHARD F. HALLIBURTON, Kansas City, Missouri WINNIE F. TAYLOR, Gainesville, Florida CHARLES C. HOLT, Austin, Texas MICHAEL M. VAN BUSKIRK, Columbus, Ohio GEORGE S. IRVIN, Denver, Colorado CLINTON WARNE, Cleveland, Ohio HARRY N. JACKSON, Minneapolis, Minnesota FREDERICK T. WEIMER, Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 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 John Brademas Anthony M. Solomon Gertrude G. Michelson Thomas M. Timlen Buffalo 14240 M. Jane Dickman John T. Keane PHILADELPHIA 19105 Robert M. Landis, Esq. Edward G. Boehne Nevius M. Curtis 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 William S. Lee, III Jimmie R. Monhollon Baltimore 21203 Edward H. Covell Robert D. McTeer, Jr. Charlotte 28230 Dr. Henry Ponder 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 35283 Samuel R. Hill, Jr. Fred R. Herr Jacksonville 32231 Joan W. Stein Charles D. East Miami 33152 Eugene E. Cohen Patrick K. Barron Nashville 37203 Robert C.H. Mathews, Jr. Jeffrey J. Wells New Orleans 70161 Roosevelt Steptoe 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 W.L. Hadley Griffin Theodore H. Roberts Mary P. Holt Donald W. Moriarty, Jr. Little Rock 72203 Richard V. Warner John F. Breen Louisville 40232 William C. Ballard, Jr. Donald L. Henry Memphis 38101 G. Rives Neblett Randall C. Sumner MINNEAPOLIS 55480 William G. Phillips E. Gerald Corrigan John B. Davis, Jr. Thomas E. Gainor Helena 59601 Jean J. Etchart Robert F. McNellis KANSAS CITY 64198 Paul H. Henson Roger Guffey Doris M. Drury Henry R. Czerwinski Denver 80217 James E. Nielson Wayne W. Martin Oklahoma City 73125 Christine H. Anthony William G. Evans Omaha 68102 Robert G. Lueder Robert D. Hamilton DALLAS 75222 Gerald D. Hines Robert H. Boykin John V. James William H. Wallace El Paso 79999 Chester J. Kesey Joel L. Koonce, Jr. Houston 77252 Paul N. Howell J.Z. Rowe San Antonio 78295 Carlos Zuniga Thomas H. Robertson SAN FRANCISCO 94120 Caroline L. Ahmanson John J. Balles Alan C. Furth John B. Williams Los Angeles 90051 Bruce M. Schwaegler Richard C. Dunn Portland 97208 John C. Hampton Angelo S. Carella Salt Lake City 84125 Wendell J. Ashton A. Grant Holman Seattle 98124 John W. Ellis Gerald R. Kelly •"Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, payable to the order of the Board of Governors of the Federal Mail Stop 138, 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

A85 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 1982. 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. SUSTAINABLE RECOVERY: SETTING THE STAGE, November DIVISIA MONETARY AGGREGATES: COMPILATION, DATA, 1982. AND HISTORICAL BEHAVIOR, by William A. Barnett and REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT ANNUAL Paul A. Spindt. May 1982. 82 pp. HUMAN RELATIONS AWARD DINNER, December 1982. THE COMMUNITY REINVESTMENT ACT AND CREDIT ALLO- REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT DEDICATION CATION, by Glenn Canner. June 1982. 8 pp. CEREMONIES: FEDERAL RESERVE BANK OF SAN FRAN- INTEREST RATES AND TERMS ON CONSTRUCTION LOANS AT CISCO, MARCH 1983. COMMERCIAL BANKS, by David F. Seiders. July 1982. 14 pp. STRUCTURE-PERFORMANCE STUDIES IN BANKING: AN UP- DATED SUMMARY AND EVALUATION, by Stephen A. CONSUMER EDUCATION PAMPHLETS Rhoades. Aug. 1982. 15 pp. Short pamphlets suitable for classroom use. Multiple FOREIGN SUBSIDIARIES OF U.S. BANKING ORGANIZATIONS, copies available without charge. by James V. Houpt and Michael G. Martinson. Oct. 1982. 18 pp. Alice in Debitland REDLINING: RESEARCH AND FEDERAL LEGISLATIVE RE- Consumer Handbook to Credit Protection Laws SPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. The Equal Credit Opportunity Act and . . . Age BANK CAPITAL TRENDS AND FINANCING, by Samuel H. The Equal Credit Opportunity Act and . . . Credit Rights in Talley. Feb. 1983. 19 pp. Housing The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit REPRINTS The Equal Credit Opportunity Act and . . . Women Most of the articles reprinted do not exceed 12 pages. Fair Credit Billing Federal Reserve Glossary Perspectives on Personal Saving. 8/80. Guide to Federal Reserve Regulations Federal Reserve and the Payments System: Upgrading Elec- How to File A Consumer Credit Complaint tronic Capabilities for the 1980s. 2/81. If You Borrow To Buy Stock Survey of Finance Companies, 1980. 5/81. If You Use A Credit Card Bank Lending in Developing Countries. 9/81. Series on the Structure of the Federal Reserve System The Commercial Paper Market since the Mid-Seventies. 6/82. The Board of Governors of the Federal Reserve System Applying the Theory of Probable Future Competition. 9/82. The Federal Open Market Committee International Banking Facilities. 10/82. Federal Reserve Bank Board of Directors U.S. International Transactions in 1982. 4/83. Federal Reserve Banks Monetary Control Act of 1980 Organization and Advisory Committees Truth in Leasing U.S. Currency What Truth in Lending Means to You Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Index to Statistical Tables References are to pages A3 through A79 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, 70-75 Turnover, 15 Domestic finance companies, 39 Depository institutions Federal Reserve Banks, 12 Reserve requirements, 8 Foreign banks, U.S. branches and agencies, 23, 76 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, 71, 73, 75 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) BANKERS balances, 18, 19-21, 70, 72, 74 Discounts and advances by Reserve Banks (See (See also Foreigners) Loans) Banks for Cooperatives, 35 Dividends, corporate, 37 Bonds (See also U.S. government securities) New issues, 36 EMPLOYMENT, 46, 47 Rates, 3 Eurodollars, 28 Branch banks, 16, 22-23, 56, 76 Business activity, nonfinancial, 46 Business expenditures on new plant and equipment, 38 FARM mortgage loans, 41 Business loans (See Commercial and industrial loans) 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, 71, 73, 75 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, 70-75 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, 71, 73, 75 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, 70, 72, 74 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 14 agencies, 23, 76 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, 71, 73, 75 Liabilities to, 22, 55, 56-60, 64, 66, 67 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 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, 71 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 Insured commercial banks, 70-75 Residential mortgage loans, 40 Interbank loans and deposits, 18 Retail credit and retail sales, 42, 43, 46 Interest rates Bonds, 3 SAVING Business loans of banks, 27 Flow of funds, 44, 45 Federal Reserve Banks, 3, 7 National income accounts, 53 Foreign central banks and foreign countries, 67 Savings and loan associations, 9, 30, 41, 42, 43, 44 Money and capital markets, 3, 28 (See also Thrift institutions) Mortgages, 3, 40 Savings deposits (See Time and savings deposits) Prime rate, commercial banks, 27 Securities (See specific types) Time and savings deposits, 9 Federal and federally sponsored credit agencies, 35 International banking facilities, 17 Foreign transactions, 66 International capital transactions of United States, 54-67 New issues, 36 International organizations, 58, 59-61, 64-67 Prices, 29 Inventories, 52 Special drawing rights, 4, 12, 54, 55 Investment companies, issues and assets, 37 State and local governments Investments (See also specific types) Deposits, 19, 20, 21 Banks, by classes, 18, 30 Holdings of U.S. government securities, 33 Commercial banks, 3, 16, 18, 19-21, 70, 72 New security issues, 36 Federal Reserve Banks, 12, 13 Ownership of securities issued by, 19, 20, 21, 30 Savings institutions, 30, 41 Rates on securities, 3 Stock market, 29 LABOR force, 47 Stocks (See also Securities) Life insurance companies (See Insurance 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, 70, 72, 74 Federal Reserve Banks, 3, 4, 5, 7, 12, 13 TAX receipts, federal, 32 Insured or guaranteed by United States, 40, 41 Thrift institutions, 3 (See also Credit unions, Savings institutions, 30, 41 Mutual savings banks, and Savings and loan associations) MANUFACTURING Time and savings deposits, 3, 9, 15, 18, 19-22, 71, 73, 75 Capacity utilization, 46 Trade, foreign, 55 Production, 46, 49 Treasury currency, Treasury cash, 4 Margin requirements, 29 Treasury deposits, 4, 12, 31 Member banks (See also Depository institutions) Treasury operating balance, 31 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, 70, 72, 74 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 Prices VETERANS Administration, 40, 41 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

A88 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories York January 1971 ALASKA • h h hm i W M PH © A/p ^ gl 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