Federal Reserve Bulletin, 1983-05

VOLUME 69 • NUMBER 5 • MAY 1983 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • S. David Frost 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 319 NEW DEPOSIT INSTR UMENTS of the International Monetary Fund, before the Subcommittee on Financial Institutions The introduction of the money market de- Supervision, Regulation and Insurance of posit account and the Super NOW account the House Committee on Banking, Finance has hastened the deregulation of interest and Urban Affairs, April 21, 1983. rates that commercial banks and thrift institutions may pay on deposits. 346 Anthony M. Solomon, President, Federal Reserve Bank of New York, reviews the 327 ALTERNATIVE MORTGAGES AND TRUTH recent efforts of the Federal Reserve Sys- IN LENDING tem in its surveillance of the government securities market and concludes that the The role of the Federal Reserve Board is to surveillance role of the Federal Reserve regulate the disclosure to consumers of the should not be formalized and expanded at terms of alternative mortgages. this time, before the Subcommittee on Domestic Monetary Policy of the House Com- 333 STAFF STUDY mittee on Banking, Finance, and Urban "Financial Transactions within Bank Hold- Affairs, April 25, 1983. ing Companies" explores extensions of 356 Chairman Volcker discusses the evolution credit and transfers of assets between holdin markets for banking and other financial ing company banks and their nonbank affiliservices in light of a reexamination of the ates. existing legislative framework, before the Senate Committee on Banking, Housing, 335 INDUSTRIAL PRODUCTION and Urban Affairs, April 26, 1983. Output rose about 2.1 percent in May. 365 ANNOUNCEMENTS 337 STATEMENTS TO CONGRESS Procedures to eliminate or price the remain- Paul A. Volcker, Chairman, Board of Gov- ing categories of Federal Reserve check ernors, updates the Federal Reserve's offi- float. cial monetary policy report to the Congress, Interim fee schedule for use in a pilot probefore the House Committee on Banking, gram for making corporate trade payments Finance and Urban Affairs, April 12, 1983. by electronic means. 340 J. Charles Partee, Member, Board of Gov- Proposal to add depository institutions to ernors, discusses a federal preemption of the Federal Reserve check collection serstate usury laws governing interest rates on vices as part of a program to accelerate the business, agricultural, and consumer loans, collection of checks. before the Senate Committee on Banking, Amendments to Regulation D (Reserve Re- Housing, and Urban Affairs, April 12,1983. quirements of Depository Institutions) to reduce the deposit-reporting burden for 341 Governor Partee discusses various issues of small institutions. (See Legal Developsupervision and regulation of international ments.) lending and reiterates Federal Reserve support for prompt congressional action on the Proposed legislation for simplifying the proposed increase in the financial resources Consumer Leasing Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Change in Board staff. A70 BOARD OF GOVERNORS AND STAFF Admission of six state banks to membership A72 FEDERAL OPEN MARKET COMMITTEE in the Federal Reserve System. AND STAFF: ADVISORY COUNCIL 369 LEGAL DEVELOPMENTS A73 FEDERAL RESERVE BANKS, BRANCHES, Amendments to Regulations D, E, Z; vari- AND OFFICES ous bank holding company and bank merger orders; and pending cases. A74 FEDERAL RESERVE BOARD PUBLICATIONS Al FINANCIAL AND BUSINESS STATISTICS A76 INDEX TO STATISTICAL TABLES A3 Domestic Financial Statistics A46 Domestic Nonfinancial Statistics A78 MAP OF FEDERAL RESERVE SYSTEM A54 International Statistics A69 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Deposit Instruments Frederick T. Furlong of the Board's Division of In a short time, the new accounts, particularly Research and Statistics prepared this article the MMDA, have attracted large volumes of with research assistance from Alan Boyce and funds from other accounts at depository institu- Guido van der Ven. tions and from nondeposit instruments. The initial reaction of commercial banks and thrift insti- The deregulation of the interest rates that com- tutions to this development was not surprising. mercial banks and thrift institutions may pay on Depository institutions generally deemphasized deposits has been hastened in recent months by their reliance on managed liabilities and built up the introduction of two new accounts. The mon- their liquid asset holdings, while savings and loan ey market deposit account, which institutions associations stepped up mortgage-related lending were permitted to offer beginning in December as well. However, over time, the buildup of 1982, has been the more important. The Deposi- balances in short-term market-rate accounts at tory Institutions Deregulation Committee autho- commercial banks and thrift institutions could rized commercial banks and thrift institutions to well affect the behavior of the cost of funds at issue this new instrument in accordance with the these institutions and could lead to significant Garn-St Germain Depository Institutions Act of changes in asset and liability management. More- 1982. That act provides for a deposit account that over, as apparently intended by the Congress, is directly equivalent to and competitive with these short-term market-rate deposit instruments money market mutual funds. The committee also have affected the competitive position of deposipermitted commercial banks, savings and loan tory institutions relative to other financial interassociations, and mutual savings banks to offer mediaries. the so-called Super NOW account effective early in January 1983. Neither of these new instruments is subject to GROWTH IN THE NEW ACCOUNTS a ceiling on interest rates for accounts that maintain an average balance of at least $2,500; The reaction of depository institutions and dethe period over which the average is determined positors to the introduction of MMDAs was can be up to one month. Depositors with a swift. Flows into MMDAs averaged more than money market deposit account (MMDA) can $35 billion per week in the first six weeks that the make only six automatic or telephone transfers accounts were offered. In late March and early per month (three of them by check), but they are April, the weekly flows were down to about $5 permitted unlimited withdrawals in person. In billion, which is slow only relative to the unpreckeeping with the provisions of the Garn-St Ger- edented pace set in the early stage of MMDA main Act, the Depository Institutions Deregula- offerings. As table 1 shows, MMDA balances tion Committee (DIDC) did not restrict the types totaled more than $340 billion by mid-April 1983, of depositor that may hold MMDAs. The Super a mere four months after the introduction of the NOW account, on the other hand, is fully trans- instrument. In comparison, it took nearly two actional, but is available only to individuals, years for the popular six-month money market governmental units, and certain nonprofit organi- certificate (MMC) to reach that level. The bulk of zations. For both types of account, an interest MMDA balances represent deposits of individrate can be guaranteed for up to a month, and uals; businesses and other institutional investors MMDAs can be issued with a specific maturity of account for about 15 percent of all MMDA funds, up to 30 days. the bulk of which they hold at commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 Federal Reserve Bulletin • May 1983 The introduction of MMDAs resulted in the first two months of the year. Nonetheless, as of complete removal of interest-rate ceilings for a mid-April 1983, ceiling-free Super NOWs made significant fraction of deposits. The MMDAs up about one-fourth of the total other checkable outstanding at commercial banks in March ac- deposits component of Ml, which includes balcounted for more than one-fourth of the com- ances in regular negotiable order of withdrawal bined savings, small-denomination time depos- accounts, automatic transfer accounts, and share its, and MMDAs at those institutions. The draft accounts at credit unions. fraction for savings and loan associations and mutual savings banks taken together was about one-fifth. Moreover, when balances in other YIELDS ON THE NEW ACCOUNTS small-denomination ceiling-free accounts—such as retail repurchase agreements and 7- to 31-day One obvious factor in the immediate success of certificates—and accounts with indexed ceil- MMDAs was the high introductory interest rates ings—such as six-month MMCs and small savers they bore. Many depository institutions offered certificates—are added to MMDAs, about three- above market interest rates on MMDAs for a fourths of the balances in savings, small-denomi- period of time in order to attract deposits, and nation time accounts, and MMDAs at commer- then brought yields on MMDAs into closer aligncial banks as well as at thrift institutions were ment with other market rates. Yields on MMDAs earning a market-determined rate of return as of at commercial banks and mutual savings banks March 1983. are shown in table 2; they are estimates based on The performance of Super NOWs has been responses from stratified samples, and represent overshadowed by the surge in MMDAs. Al- average rates weighted by MMDA balances at though most depository institutions are offering the institutions. No comparable data are availthese market-rate transaction accounts, they able for savings and loan associations, but comhave been promoted less heavily and priced less parisons of unweighted averages suggest that attractively than MMDAs. As a result, by mid- rates on MMDAs at those institutions were close April 1983 balances in Super NOWs totaled only to rates at mutual savings banks. about $29 Vi billion (table 1). Moreover, the in- As the table shows, average yields on MMDAs creases in Super NOWs in March and early April in late December were markedly higher than were quite modest compared with those in the rates available on other short-term time deposit 1. Money market deposit accounts and Super NOW accounts Amounts in billions of dollars, not seasonally adjusted Money market deposit accounts' Super NOW accounts2 PPeerriioodd Commercial Thrift Commercial Thrift banks institutions3 Total banks institutions3 Total Monthly average 1982-December 26.5 16.7 43.2 1983-January 114.2 74.9 189.1 8.4 4.9 13.3 February 163.3 114.4 277.7 15.2 7.5 22.7 March 185.8 134.7 320.5 18.1 8.4 26.5 Weekly average 1983-March 2 174.9 125.6 300.5 16.6 8.0 24.6 9 180.6 130.6 311.2 17.6 8.3 25.9 16 185.3 134.3 319.6 18.1 8.4 26.5 23 188.4 136.9 325.3 18.4 8.4 26.8 30 190.9 138.4 329.3 18.7 8.4 27.1 April 6 194.2 140.7 334.9 19.7 9.0 28.7 13 197.6 143.0 340.6 20.5 8.9 29.4 1. Institutions began offering money market deposit accounts on 3. Includes savings and loan associations, mutual savings banks, December 14, 1982. and credit unions. • ... , 2. Institutions began offering Super NOW accounts on January 5, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Deposit Instruments 321 accounts and nondeposit instruments. For exam- sive pursuit by institutions of the Super NOW ple, the average yield on MMDAs in December account. By the end of March, however, rates on exceeded the average rate on money market MMDAs had fallen relative to those on Super mutual fund shares by 2Vi to 3 percentage points. NOWs, and the differential on average was in The table also indicates that thrift institutions line with the cost of reserve requirements. As offered higher rates on MMDAs than commercial with MMDAs, thrift institutions continued to banks, and that the differential was greater than offer higher rates on Super NOWs than did the 25 basis points that had been part of the commercial banks. structure of interest rate ceilings for many years. By the end of March, yields on MMDAs had fallen appreciably and were actually below yields SOURCES OF MMDAS AND SUPER NOWS on some short-term deposits and Treasury securities. However, the average rate of return on The MMDA was created to enable commercial MMDAs remained above the average rate on banks and thrift institutions to compete effectiveshares of money market mutual funds, in part ly with money market mutual funds. The success because movements in yields on those shares of the MMDA in attracting shares of money tend to lag increases in market interest rates. At market funds is evident in the contraction experithe end of March, the differential between rates enced by those investment companies in recent on MMDAs at commercial banks and thrift insti- months. Assets of general-purpose and broker/ tutions persisted. dealer funds fell about $37 billion between No- The initial offering rates on Super NOWs on vember 1982 and March 1983 (chart 1). At the average were further below rates on MMDAs same time, assets of institution-only money marthan can be explained solely by the cost of ket funds declined about $6!/2 billion. Given the reserve requirements on transaction accounts. relationship of money fund yields to market rates At the end of January, the spread between rates and the evident interest in equity shares in recent on Super NOWs and MMDAs averaged 140 basis months, these investment companies as a whole points at commercial banks and 170 basis points might have experienced some reduction in assets at mutual savings banks (table 2). These relative- in any event. However, the results from surveys ly large spreads reflect the generally less aggres- of both households and depository institutions 2. Interest rates on selected instruments 1. Assets of money market mutual funds for selected dates Billions of dollars Percent, annual rate 1982 1983 IInnssttrruummeenntt Dec. 29 Jan. 26 Feb. 23 Mar. 30 Money market deposit account1 Commercial banks . 10.6 9.0 8.3 8.2 Mutual savings banks 11.0 10.0 9.0 8.6 Super NOWs1 Commercial banks. 7.6 7.3 7.3 Mutual savings banks 8.3 7.6 7.5 Six-month money mar- 60 ket certificate1. Institution-only funds Commercial banks. 8.4 8.3 8.5 8.9 Mutual savings banks 8.7 8.6 8.8 9.0 Money market mutual 40 funds2 8.1 7.8 7.8 7.8 Three-month Treasury bill3 8.4 8.4 8.2 9.0 mtmmm •••• ••• i • 1. Average nominal rate based on sample data. 1982 1983 2. Average nominal rate at all money market mutual funds for the weeks ending on Wednesday. Combined assets of taxable and tax-exempt money market mutual 3. Coupon-equivalent yield. funds; monthly averages, not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 Federal Reserve Bulletin • May 1983 2. Deposits at commercial banks and thrift institutions period, at $130 billion, was even more dramatic. Once again, the outflows were quite large in Billions January, and, while still sizable, had diminished by March. For small-denomination time depos- 350 its, most of the transfers to MMDAs were from relatively short-term certificates with marketrelated yields, particularly six-month MMCs. 300 The overall impact of shifts from savings and small time deposits likely is understated by the net change in these deposit categories because combined balances in such accounts would have been expected to increase in the absence of 900 MMDAs. As chart 2 suggests, the introduction of 850 MMDAs affected the issuance of large-denomination certificates of deposit (CDs) as well as 800 core deposits. The drop in the amount of large CDs outstanding reflects direct shifts to MMDAs by holders of CDs as well as liability-management decisions by depository institutions to cut back on issuance of large CDs in the face of 400 sizable deposit inflows. Thus only a part of the falloff in large CDs can be viewed as contributing to the amount of MMDAs outstanding. In fact, 350 many depository institutions reportedly took measures to limit the size of MMDAs to prevent institutional investors from placing large sums on deposit to take advantage of the high introduc- Thrift institutions include savings and loan associations, mutual tory rates. Nevertheless, some large CDs apparsavings banks, and credit unions. Monthly averages, seasonally adjusted. ently were shifted to MMDAs. These larger MMDAs likely explain the high average balance suggest that the contraction in money funds in in MMDAs at commercial banks, which in recent months primarily reflected shifts to March was about $23,000. This average balance MMDAs. is considerably higher than the estimates for the average size of savings, small-denomination Although the diversion of money market fund time, or general-purpose and broker/dealer monshares to MMDAs certainly has been an imporey fund accounts. tant channel for new deposits for commercial banks and thrift institutions, such shifts can The introductory rates on the MMDA made account for only a fraction of total MMDA this account not only more attractive than money balances. Survey results and estimates based on market mutual funds and other deposit accounts, cross-section econometric models indicate that but also more attractive than virtually all shortmost MMDA balances have come from other term market instruments. Household surveys deposit accounts, particularly savings and small- indicated that some savers transferred funds denomination time accounts. Indeed, between from Treasury securities and other interest-bear- November 1982 and March 1983, savings depos- ing market instruments, and MMDA balances its at all institutions fell a record $48 billion. As also may have been drawn from mutual funds chart 2 shows, the outflows from savings were other than money funds and from the stock most pronounced in January (partly because the market. However, the available information does figures are based on monthly averages) and had not permit an accurate estimate of the volume of subsided noticeably by March. The drop in MMDAs that came from such market instrusmall-denomination time deposits for the same ments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Deposit Instruments 323 With yields on MMDAs, money market mutu- tendency for some depository institutions to imal funds, and other short-term investments gen- pose service charges that are waived if account erally above rates on Super NOWs, these new balances are above some threshold level, such as fully transactional accounts would be expected $5,000 or $10,000. to draw deposits primarily from demand deposit and regular NOW accounts. Survey data and econometric cross-section evidence indicate that COMPETITION AMONG DEPOSITORIES the vast bulk of the dollars placed in Super NOWs did in fact come from other transaction The MMDA clearly has enabled depository instiaccounts. Moreover, the funds attracted from tutions to compete more effectively for funds, nontransaction accounts evidently were mostly but some institutions may have had more success from savings and time deposits rather than from nondeposit sources such as money market mutu- 4. Market shares of money market deposit al funds. Because limited funds have been at- accounts, March 31, 1983 tracted to Super NOWs from sources other than Percent transaction accounts and some demand deposits Percent of and regular NOW balances have at the same time combined deposits Percent of before been moved into MMDAs, on balance the vol- MMDAs introduction of ume of transaction deposits included in Ml may TTyyppee ooff iinnssttiittuuttiioonn aanndd MMDAs1 turn out not to have been greatly affected by the ddeeppoossiitt ccllaassss ((ddoollllaarrss)) Savings Savings introduction of the two new accounts. Neverthe- and and total Total Personal small time less, the availability of a transaction account de t p im os e i ts deposits earning an explicit yield that can move with market rates may well affect the behavior of (1) (2) (3) (4) Commercial banks 58.0 52.7 47.5 56.3 household transaction balances. Under 100 million 13.3 11.5 18.0 16.5 100 million to 500 million 12.1 10.4 10.4 10.9 Evidence suggests that Super NOW account 500 million to 1 billion ... 5.1 4.6 3.7 4.4 balances generally are much higher than the 1 billion and over 27.5 26.2 15.4 24.5 $2,500 minimum established by the DIDC. The Thrift institutions 41.42 46.63 52.5 43.7 Under 100 million 4.0 4.4 8.0 6.5 average Super NOW account at commercial 100 million to 500 million 12.0 13.5 16.8 13.6 banks was about $13,500 in March 1983, com- 500 million to 1 billion ... 6.2 7.0 7.9 6.5 1 billion and over 19.2 21.7 19.8 17.1 pared with an average of a little more than $5,000 for regular NOWs in February (table 3). In 1. Excludes credit unions. 2. Excludes credit unions, which accounted for 0.6 percent of all addition, the drop in the average size of regular MMDAs. NOWs, shown in the table, is consistent with the 3. Excludes credit unions, which accounted for 0.7 percent of all personal MMDAs. shift of balances from larger NOW accounts to Super NOWs and the maintenance of smaller accounts as regular NOWs. The greater attrac- than others. How did commercial banks and tiveness of Super NOWs to depositors with thrift institutions fare in attracting MMDA ballarger account balances in part may reflect the ances? And how did smaller institutions perform relative to larger ones? As of March 30, the share of commercial banks in the MMDA market was 3. Average size of NOW accounts larger than their share of all savings and small at commercial banks time deposits before the introduction of the new Dollars account (table 4). Moreover, large commercial Date Super NOWs Regular NOWs1 banks and large thrift institutions seem to have 1982-November 30 . 5,746 been more successful in capturing a share of the MMDA market than their smaller counterparts. 1983-January 31.... 11,763 n.a. February 28... 14,241 5,143 The apparent advantage of commercial banks March 31 13,478p n.a. over thrift institutions may derive in part from 1. Commercial banks outside the Northeast, differences in clientele. Business customers may n.a. Not available, p. Preliminary. be more likely than households to shift to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 Federal Reserve Bulletin • May 1983 5. Market shares of Super NOW accounts Thrift institutions Commercial All Month banks Savings Mutual Credit institutions and savings Total unions loans banks Monthly average level (billions of dollars, not seasonally adjusted) 1983-January . 8.4 2.9 .4 1.6 4.9 13.3 February 15.2 4.7 .6 2.2 7.5 22.7 March... 18.1 5.3 .8 2.3 8.4 26.5 Percent of interest-bearing checkable deposits 1983-January . 10.2 18.5 8.5 34.0 19.5 12.4 February 18.2 28.3 12.5 44.9 28.4 20.6 March... 20.9 30.5 16.0 46.9 30.3 23.2 MMDAs, and business deposits are concentrated categories of thrift institutions. The high ratio for at commercial banks, and so shifts from business credit unions probably reflects a statistical artiaccounts would tend to boost the commercial fact; these institutions could offer ceiling-free bank share of the MMDA market. Indeed, as share draft accounts even before the DIDC autable 4 indicates, personal MMDAs were more thorized a Super NOW, and many of them alevenly distributed between commercial banks ready were paying more than 5VA percent on and thrift institutions, although the basic impres- transaction deposits, which would automatically sion that commercial banks and larger institu- be categorized as Super NOWs. tions captured a relatively high share of MMDAs remains unchanged. Any comparison of shares in the MMDA mar- BALANCE SHEET ADJUSTMENTS ket with shares of savings and small-denomina- AT DEPOSITORY INSTITUTIONS tion time deposits could be misleading. Because MMDAs may be issued in large denominations Although most MMDA balances represent shifts and because commercial banks already had the from other deposit accounts, the inflow of new higher share of large-denomination time depos- deposits to this instrument has been substantial. its, those institutions would be expected to get a These inflows are reflected in the surge of combigger portion of MMDAs shifted from large bined savings, small-denomination time depos- CDs. In fact, in a comparison of MMDA shares its, and MMDAs during the first quarter of this with those for total time and savings deposits before the introduction of the MMDA (table 4), 3. Growth in savings, small time deposits, and MMDAs the advantage of commercial banks over thrift Percent institutions or of larger institutions over smaller ones is less apparent. Commercial banks As in the case of MMDAs, commercial banks account for most of the Super NOW balances. However, their share of this instrument may be somewhat smaller than expected given the concentration of transaction balances at these insti- Thrift tutions. In March, Super NOWs accounted for only about one-fifth of total interest-bearing checkable deposits at commercial banks, compared with 30 percent at thrift institutions (table Thrift institutions include savings and loan associations, mutual 5). The proportion of interest-bearing checkable savings banks, and credit unions. Annual rates of growth based on seasonally adjusted quarterly deposits held in Super NOWs also varied among average deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Deposit Instruments 325 4. Growth in savings, total time deposits, and MMDAs Besides cutting back on issuance of large CDs, Percent commercial banks reacted to the surge in MMDAs by reducing their reliance on other managed liabilities and by building up liquid assets. Nondeposit sources of funds at commercial banks fell in the first quarter of this year, after increasing slightly in the previous quarter (chart 5). The decline in nondeposit liabilities was due partly to the combined impact of reduced Eurodollar borrowings and increased placements in the Eurodollar market. The bottom panel of the chart shows that the strengthening in bank credit during the first quarter reflect- Thrift institutions include savings and loan associations, mutual savings banks, and credit unions. ed a marked expansion in investments, which Annual rates of growth based on seasonally adjusted quarterly included sizable net acquisitions of Treasury average deposits. securities. Some of the buildup in liquid securiyear, which was particularly pronounced at com- ties could be temporary given unexpectedly large mercial banks (chart 3). As indicated earlier, inflows to MMDAs and weakness in the demand some MMDA funds were shifted directly from for short- and intermediate-term business credlarge CDs, while depository institutions, espe- it—and perhaps a hedge against the possibility cially commercial banks, sharply reduced their that funds may be withdrawn as MMDA rates issuance of large CDs in the wake of the success fall. On the other hand, with savers shifting from of MMDAs. Consequently, the pickup in the market instruments to MMDAs, an increase in growth of savings and total time deposits (includ- overall intermediation by commercial banks ing large CDs) in the first quarter was less could mean a permanent rise in their security dramatic, though it was still noticeable (chart 4). holdings. Recent portfolio adjustments at savings and loan associations were similar in some ways to 5. Net change in selected assets and those at commercial banks. At federally insured liabilities at commercial banks savings and loan associations net acquisitions of Billions of dollars cash and investment securities, which had been trending upward for some time, accelerated sharply in the first quarter of 1983 (chart 6). However, these thrift institutions do not appear to have deemphasized their reliance on managed liabilities to the same degree as commercial banks. On a quarterly average basis, savings and loan associations reduced their borrowings (excluding retail repurchase agreements) in the first quarter of 1983 by less than in the previous quarter, and in the latter part of the first quarter of this year these thrift institutions actually began to increase the level of their borrowings. In addition, while lending at commercial banks remained sluggish, mortgage-related lending at savings and loan associations picked up noticeably in early 1983. Moreover, the continued 1982 1983 strength in new commitments for mortgage loans (the bottom panel) probably foretells further Nondeposit sources of funds consist of net Eurodollar borrowings, borrowings from other than commercial banks, plus loans sold to growth in the volume of mortgages extended by affiliates. savings and loan associations. Quarterly average net changes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 Federal Reserve Bulletin • May 1983 6. Federally insured savings and loan associations SUMMARY AND CONCLUSION Billions of dollars Net change The money market deposit account has clearly enhanced the ability of commercial banks and ^.Nondeposit sources of funds thrift institutions to attract deposits. Besides attracting new deposits, the rates on the highly liquid MMDAs induced considerable shifting 1 i i 1 i i i from other deposit accounts, particularly savings Net change and small-denomination time deposits. These Cash and investment securities developments thus amounted to a complete deregulation of interest rates for a large portion of core deposits. The general reaction of depository institutions to the surge in MMDAs was to reduce managed liabilities and to build up liquid assets, while savings and loan associations stepped up their acquisitions of mortgage assets. How commercial banks and thrift institutions will adjust their portfolios in the longer run remains to be seen, but depository institutions may be expected to take into account the tendency for MMDAs to increase the sensitivity of the New commitments for mortgages cost of funds to changes in market interest rates. The initial impact of Super NOWs has been less dramatic than that of MMDAs. Flows into these accounts, which have been comparatively small, primarily reflect shifts from other transaction accounts. Nevertheless, the introduction of the account is important: as Super NOWs be- Nondeposit sources of funds consist of Federal Home Loan Bank advances and other borrowings, excluding retail repurchase agree- come a larger share of household transaction ments. Net changes in nondeposit sources of funds, cash and investdeposits included in M1, they could significantly ment securities, and mortgage assets are quarterly averages. affect the behavior of those balances relative to other economic variables. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

327 Alternative Mortgages and Truth in Lending This article was prepared by Susan M. Werthan CONSUMER CONFUSION of the Board's Division of Consumer and Community Affairs. Disclosures about alternative mortgages are particularly important because the complexity of Alternative mortgage instruments—mortgages some arrangements and the wide variety of alterthat differ from standard fixed-rate, level-pay- native mortgages in the marketplace seem to ment mortgages—have become popular in recent confuse consumers. Moreover, recent legislative years. High inflation and high, volatile interest changes that have given more lenders authority rates have made the standard fixed-rate mortgage to offer alternative mortgages could result in unattractive to many lenders and borrowers. In more varieties of plans and still more confusion. order to shift some of the risk of volatile interest The confusion is substantiated by a recent rates to borrowers, lenders have devised a varie- survey that was commissioned by the Federal ty of new financing plans. Mortgages with adjust- National Mortgage Association (FNMA). This able or renegotiable interest rates allow lenders nationwide survey was conducted in March and to change periodically the interest rate charged April 1982 to help FNMA develop new mortto borrowers as market interest rates fluctuate, gage-purchase programs. The survey notes that and short-term mortgages effectively serve the most of the consumers who are aware of the same purpose. Other financing plans, such as newer types of mortgages do not understand how growing-equity mortgages, have fixed interest these instruments work. This finding is also rates but provide for increasing payments and noted in The Report of the President's Commisshorter loan maturities. sion on Housing, published in 1982. That report Some types of alternative morgages make it suggested that the government has a role in easier for borrowers to qualify for loans when educating consumers about alternative mortgages. interest rates are high. In particular, plans with A brief look at some alternative mortgages graduated-payment features reduce initial reveals why consumers are confused. Generally, monthly payments and provide for higher pay- such mortgages permit the interest rate, the ments in the later years of the loan term, when payment amount, the term of the loan, the princithe borrower's income can be expected to be pal amount of the loan—or all of these features— higher. Some mortgages embody features of both to vary. For instance, in a graduated-payment adjustable-rate and graduated-payment con- adjustable-rate mortgage, payments vary as a tracts, allowing lenders to reduce their interest result of adjustments both in interest rates and rate risk and making mortgage credit more af- scheduled payments. Because the early payfordable for home buyers. ments do not cover the amount of interest due, This article examines the role of the Board of adjustments are also made to the principal Governors of the Federal Reserve System in amount of the loan. A growing-equity mortgage regulating alternative mortgages. Although the involves increases in scheduled payments with- Board does not regulate the types of mortgages out any adjustments in interest rates: the inthat may be offered by lenders, it is responsi- creases in payments are applied to principal, thus ble for implementing the Truth in Lending Act reducing the loan term. through Regulation Z. Thus the primary function Other alternative mortgages involve parties of the Federal Reserve regarding alternative besides traditional institutional lenders, whose mortgages is to regulate the disclosure of their participation calls for new and sometimes comterms to consumers. plex loan terms. For example, in a sluggish sales Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin • May 1983 market, a developer may agree to pay a lender to However, the annual percentage rate (APR) is offer below-market-rate or zero-rate mortgages the most important disclosure. It blends the to purchasers of the developer's homes. These interest rate and other credit charges, such as "buydown" arrangements may take different mortgage insurance, points, and loan origination forms. A contract between the lender and the fees, into a uniform measure of cost. developer may specify an amount paid, and that Consumers can use the APR to compare credit amount may be translated into a below-market costs at various points in the shopping process, rate in the borrower's note; or the lender may such as checking advertisements, applying for a simply send a letter about the buydown to the loan, or closing a loan. First, the Truth in Lendborrower and not reflect it in the note. ing Act requires that any rate of finance charge Two recent developments may broaden the stated in an advertisement must be an APR, and already wide variety of alternative mortgage in- thus makes it easy for consumers to compare struments. First, the federal regulations govern- credit terms early in the shopping process. Secing adjustable-rate mortgages have been liberal- ond, for certain purchase-money mortgages that ized. Regulations that have been promulgated by are subject to the Real Estate Settlement Procethe Federal Home Loan Bank Board (FHLBB), dures Act, a creditor must provide disclosures the Office of the Comptroller of the Currency within three days of receiving a consumer's (OCC), and the National Credit Union Adminis- application. Unlike most of the other changes tration allow federally chartered lenders, includ- made by the Truth in Lending Simplification and ing savings and loan associations, banks, and Reform Act of 1980, this provision imposes an credit unions, to offer adjustable-rate mortgages. additional requirement on creditors who, for Gradually, during the past few years, amend- most transactions, need not provide disclosures ments to these regulations have removed virtual- until consumers become obligated on a transacly all of the restrictions on adjustable-rate fea- tion. Because of the importance of home purtures so that lenders may structure their own chases and the large sums involved, the Conplans and adjust the interest rate and payments in gress decided that this provision was necessary any way they wish. to give consumers more time to shop for purchase-money mortgages than for other transac- Second, lenders that are not federally chartions. Third, before a consumer becomes contered are authorized to make loans in accordance tractually obligated on a credit transaction, a with federal regulations governing alternative creditor must provide a complete set of truth in mortgages. Title VIII of the Garn-St Germaine lending disclosures. Although this point is late in Depository Institutions Act of 1982 (DIA) allows the shopping process, this procedure still offers all housing creditors to make, purchase, and the consumer a chance to withdraw from the enforce alternative mortgages. State laws that transaction. have restricted state-chartered lenders from making alternative mortgage loans are preempt- How much consumers use truth in lending ed unless state law overrides the DIA provision disclosures as a tool for comparing alternative within three years. mortgage plans is difficult to assess. Those disclosures are not well tailored to many alternative mortgages because they are based on the under- TRUTH IN LENDING AND ITS APPLICATION lying assumption in the statute that a loan will TO MORTGAGES run to maturity on the terms established at the outset of the transaction. In fact, most mort- The Truth in Lending Act requires creditors to gages—even traditional ones—do not run to madisclose to consumers the terms of all consumer turity; moreover, alternative mortgages are credit transactions. These disclosures permit based on the very assumption that the terms will consumers to determine the cost of different change. For instance, an adjustable-rate mortcredit transactions and to shop for the best gage may have complex provisions governing the terms. The act requires creditors to disclose amount of rate changes and the indexes that basic credit terms, such as the payment amounts, trigger changes, which are not reflected in the APR. Nevertheless, instead of taking possible the finance charge, and the total of payments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Alternative Mortgages and Truth in Lending 329 rate changes into account, creditors calculate the may increase, any limitation on that increase, the APR on the assumption that the initial rate will effect that an increase may have on payments or remain in effect through the life of the mortgage other loan terms, and an example of payment (although creditors must give an example of an terms that could result from an increase. All the increase in payments or longer maturity of the calculations are based on the rate in effect at the loan that could result from a change in rate). beginning of the transaction. Rather than requir- Although available evidence suggests that con- ing creditors to predict movements in a rate, the sumers are generally aware of credit rates and regulation adopts the view that it is more helpful use them in shopping for credit, no studies have to consumers to describe the circumstances that specifically measured whether consumers under- will lead to rate changes and give an example of a stand and use the APR in comparing mortgages. payment change that could result from a rate On the face of it, the disclosure of the APR has increase. some value for consumers who are comparing The variable-rate provisions in Regulation Z the terms of various alternative mortgage plans. are used extensively in providing disclosures to No other single measure expresses complex consumers because the commentary applies credit terms in a uniform way, a factor of particu- them not only to typical adjustable-rate mortlar importance in a mortgage transaction, which gages, but also to several other types of alternais the single most significant credit decision a tive mortgages—for example, rollover mortgages consumer makes. (ROMs), also called renegotiable-rate mortgages. A ROM is a series of short-term notes (each with a fixed interest rate) secured by a long-term SPECIFIC DISCLOSURES FOR ALTERNATIVE mortgage, and so the APR will not increase MORTGAGES during the term of a note. The notes in the series typically fall due every three to five years during Whatever the merits of truth in lending disclo- the term of the underlying mortgage, and at those sures in alternative mortgages, the Board has the times the interest rate is "renegotiated" and a task of matching the law's requirements with new note reflecting that rate is signed. When a plans emerging in the marketplace. It uses the consumer finds the new rate proposed by the staff commentary to Regulation Z to explain the lender unacceptable, he or she must find another requirements of that regulation and to apply its lender to refinance the loan to pay off the balance provisions to specific alternative mortgage plans. due to the original lender. The commentary is to be updated at least annual- For truth in lending purposes, the ROM is ly to address new financing arrangements as they considered a single long-term variable-rate mortarise. Updating of the material concerning mort- gage, rather than a series of fixed-rate mortgages. gages has been particularly helpful because of For example, in a ROM involving a series of six rapidly changing mortgage instruments. More- five-year loans with the initial loan at a 12 over, the commentary is important to creditors percent interest rate, the truth in lending disclobecause those who follow its requirements may sures are based on the 30-year term of the entire rely on it as a defense in civil suits for truth in series of notes, rather than the five-year term of lending violations. the initial loan. Although the disclosed payment schedule, finance charge, total of payments, and APR are based on the initial 12 percent rate, the Variable-Rate Disclosures disclosures must also state that the rate may increase every five years according to a specified Several types of alternative mortgages require index, with a corresponding increase in the convariable-rate disclosures under Regulation Z. sumer's monthly payment. The other variable- Creditors must give consumers specific informa- rate information about limits on increases and an tion about a variable-rate feature in any transac- example of a payment change also must be given. tion in which the APR may increase after con- Because the information about rate increases is summation of the transaction. This information provided to the consumer at the beginning of the includes the circumstances under which the rate loan, the creditor need not provide any addition- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin • May 1983 al truth in lending disclosures when the interest years, in contrast to 25 years for a fixed-rate rate is renegotiated. mortgage at the same interest rate. The shared-appreciation mortgage (SAM) is The commentary provides that disclosures like another type of alternative mortgage that techni- those for variable-rate mortgages may be made cally is not a variable-rate mortgage providing for by lenders offering GEMs in which the payments periodic rate adjustments but nonetheless is sub- cannot be determined at the outset. For instance, ject to the variable-rate disclosures required by this option can be used for GEMs with payments truth in lending. Also known as an equity-partici- tied to the Commerce Department's index of pation mortgage, this plan involves a short-term disposable income. The disclosures are calculatloan with a large balloon payment, typically due ed using the fixed interest rate and initial payin ten years. The creditor offers a fixed below- ment for the entire term of the loan, even though market rate of interest, and the consumer agrees the term will be much shorter because of the to pay the lender a specified share in the appreci- annual increases in payments. However, crediated value of the home at the end of the loan tors must disclose information about the payterm. If the consumer sells the home sooner, the ment increases, including the index to which share must be paid then. If the property is not increases are tied, any limitation on the amount sold before the note matures, it is appraised and of those increases, and an example of an inthe consumer must pay the lender a share of its crease. If creditors do not use this format, the appraised value or refinance the amount due. (If commentary permits them to estimate the the home has depreciated in value, the lender amount of annual increases in payments and to collects only the principal amount due at the time reflect those amounts in the payment schedule. of sale or at maturity.) In this option the disclosure statement reflects The commentary requires that the creditor the shortened term of the loan. The creditor must disclose several details of the shared-apprecia- indicate that these disclosures are estimates, but tion feature. Although the disclosures are based need not give any information about the index on the below-market interest rate during the term used to adjust payments. of the loan, the creditor must disclose that the However, some GEM plans involve payments rate may increase at the end of the loan term or that can be determined at the outset, and the upon sale of the home, that any increase will be variable-rate disclosure is not applicable to them. collected in a lump-sum payment to the lender, For instance, in GEMs that call for a fixed annual and that the lender's share in the appreciated increase of 4 percent in payments, each succesvalue is limited to a specified amount. An exam- sive level of payments must be disclosed, along ple of the dollar amount of appreciation that may with the APR based on the varying payments and be due to the lender also must be provided.. the shortened term of the loan. Although this format calls for calculations based The treatment of ROMs, SAMs, and certain on the below-market interest rate, it at least puts GEMs as variable-rate mortgages illustrates the a consumer on notice that a very large payment Board's policy of avoiding the proliferation of may be due to the lender at a later time, even if complex rules for highly specific transactions. the home is not sold. Such information is impor- The commentary represents instead an attempt tant because should the consumer wish to keep to apply the existing rules to new mortgage the property, he or she will have to refinance the forms. Even though ROMs, SAMs, and GEMs loan to make that payment. do not contain an APR that may increase during Growing-equity mortgages (GEMs) may be the term of the transaction, the commentary treated as variable-rate mortgages in some cases. likens them to variable-rate mortgages and fits Although GEMs provide for a fixed rate of them into existing rules. The rationale that apinterest, the monthly payments increase annually plies to variable-rate disclosures applies to disduring the term of the loan. Because the interest closures for these mortgage plans as well. Berate remains constant while the payments in- cause creditors cannot accurately predict the crease, the principal is repaid more quickly than movement of various indexes or increases in it would be in a conventional mortgage. For home prices, they are permitted in all of these instance, a GEM may be paid off in full after 12 transactions to calculate their disclosures on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Alternative Mortgages and Truth in Lending 331 initial rate as long as the required information particular, guidelines are established for buyabout future changes accompanies those disclo- downs, of both the third-party and the consumer sures. type. A third-party buydown often involves a developer who promotes sales by making a lump- Exemption from Variable-Rate Disclosures sum payment to a lender in exchange for which the lender collects a below-market rate of inter- Even though they fit the definition of a variable- est for the first few years of a mortgage. The fee rate mortgage embodied in Regulation Z, some from the developer allows the lender to earn a mortgages are exempt from the disclosure re- market yield. It is typically kept in an escrow quirements for that type of instrument because account from which withdrawals are made to creditors are subject to the extensive disclosure supplement the consumer's monthly payments. requirements of other federal regulations. These At the end of the buydown period, the consumer creditors must give all the other truth in lending becomes liable for the entire amount of the disclosures but need not provide the variable- monthly payments. rate information. The Board provides the exemp- The disclosures required in third-party buytion to avoid duplicate disclosure requirements. down arrangements depend on whether the cred- Three types of creditors that extend adjust- it contract between the lender and the consumer able-rate mortgages qualify for this exemption: reflects the buydowns. In many cases the buyfirst, creditors that are required to comply with down agreement between the lender and the variable-rate regulations issued by other federal third party is an informal side agreement that is agencies, such as federal savings and loan associ- not a legal modification of the credit contract. ations and national banks; second, state-char- Thus that contract legally binds the consumer to tered creditors that are required by state law to the nonsubsidized interest rate, and the truth in comply with those regulations; and third, hous- lending disclosures do not reflect the buydown. ing creditors that are specially authorized by the Because technically the consumer could be held DIA to extend mortgages in accordance with liable for payments at the higher rate, the disclothose regulations. sure calculations are based on that rate for the The regulations issued by the FHLBB and the entire term of the transaction. On the other hand, OCC specify the information that must be pro- if the credit contract itself reflects the buydown vided to consumers. For instance, both agencies agreement, the disclosures reflect the lower inrequire lenders to explain in writing how the terest rate and payment amount for the buydown index used affects the interest rate and pay- period. ments, and to give a source for the index values. A different disclosure rule applies if the con- (The OCC also requires lenders to include a ten- sumer pays the fee to buy down the rate; then the year series of the index.) Creditors must give an truth in lending disclosures must always reflect example of the way the payment terms might the buydown amount. Even if the buydown change during the loan; and they must provide agreement is contained in a document completethis information to consumers no later than the ly separate from the credit contract, it must be time of the loan application, which is earlier than reflected in the disclosures. The fee must be required under truth in lending. Because these treated as a prepaid finance charge, and the other regulations require that more detailed vari- payment schedule must reflect the lower payable-rate information be provided to consumers ments during the buydown period. The APR will in time to be used for shopping purposes, no be affected by the prepaid finance charge and the variable-rate disclosures are required under truth varying payment streams. in lending. The commentary also lays down special rules on advertising buydowns. Generally, the truth in lending rules require that advertisements contain Disclosures for Buy downs the same information as the disclosure statement does. But if this requirement were strictly ap- The commentary also contains special disclosure plied, many advertisements of third-party buyrules for other types of alternative mortgages. In downs could not show the buydown. This situa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin • May 1983 tion would occur when a lender's credit contract mortgage forms through disclosures is important, with a consumer did not reflect a buydown especially in view of the evidence of consumer agreement between that lender and a third party. confusion. When consumers undertake adjust- Therefore, the commentary permits advertise- able-rate mortgages subject to other federal disments to state the bought-down interest rate as closure requirements, they receive valuable inlong as they also show the period during which formation without truth in lending disclosures. In the initial rate applies, the interest rate that other cases, truth in lending disclosures may be applies to the balance of the loan term, and the the only explanation of contractual terms that correct APR. The lower monthly payments for they get. the buydown period also may be shown without Administering truth in lending for alternative triggering the additional disclosures that would mortgages is difficult for the Board because a set normally be required by the regulation. This rule of disclosure rules may not remain applicable as allows developers or other parties in a buydown new programs are continually devised. In particarrangement to advertise the lower interest rate ular, the assumption of truth in lending calculato consumers. tions that a loan will run to maturity on the terms in effect at its outset does not fit most alternative mortgages. As new programs are marketed, the CONCLUSION Board must determine whether consumer understanding is served better by fitting them into the Although the economic conditions that stimulat- existing disclosure rules or by developing new ed the use of alternative mortgages have eased rules. Specially tailored new rules, although somewhat in recent months, lenders may contin- technically more accurate, would add to the ue to market these plans to minimize the prob- complexity of the truth in lending rules and could lems posed for borrowers and investors by tradi- result in confusing disclosures for consumers. tional long-term fixed-rate mortgages. Promoting They might thus add to the confusion they were consumer understanding of these relatively new intended to alleviate. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

333 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces- Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of Govwide range of economic and financial subjects. ernors, by the Federal Reserve Banks, or by the In some instances the Federal Reserve System members of their staffs. finances similar studies by members of the aca- Single copies of the full text of each of the demic profession. studies or papers summarized in the BULLETIN From time to time, papers that are of general are available without charge. The list of Federal interest to the professions and to others are Reserve Board publications at the back of each selected for the Staff Studies series. These pa- BULLETIN includes a separate section entitled pers are summarized—or, occasionally, printed "Staff Studies" that lists the studies that are in full—in the FEDERAL RESERVE BULLETIN. currently available. STUDY SUMMARY FINANCIAL TRANSACTIONS WITHIN BANK HOLDING COMPANIES John T. Rose and Samuel H. Talley—Staff, Board of Governors Prepared as a staff paper in early 1983 In the past fifteen years, most of the nation's marginal cost of funds than the other when each major banks have adopted the holding company separately is in equilibrium. Thus the direction of form of organization and have subsequently ex- the flow of funds between bank and nonbank panded by acquiring banks and nonbank firms affiliates within a holding company depends on engaged in such activities as mortgage banking, the relative configurations of the marginal reveconsumer finance, leasing, and factoring. One nue and marginal cost functions of the two aspect of the bank holding company structure sectors of the organization. that has received increasing attention in recent Market and regulatory considerations point to years—both as a topic for research and as a a lower marginal cost function for banks relative matter of public interest—concerns financial to their nonbank affiliates, but are ambiguous as transactions between affiliates within the holding to whether banks have a higher or lower marginal company organization. revenue function than the nonbank units. As a This study explores financial transactions result, the anticipated direction of fund flows within bank holding companies in both a theoret- between the two sectors of a holding company is ical and an empirical context. In theory, financial also ambiguous. transactions between two affiliates of a holding In order to determine the recent flow of funds company may be expected whenever the two between holding company banks and their nonunits operating individually do not have the same bank affiliates, data were collected on two major equilibrium level of marginal revenue and mar- types of interaffiliate financial transactions—exginal cost; that is, one affiliate has both a higher tensions of credit and transfers of assets—over marginal return on investments and a higher the 1975-80 period. The data generally point to a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin • May 1983 net downstream flow of funds from the nonbank imposed by section 23A of the Federal Reserve sector to the bank sector of a holding company. Act. Specifically, the fact that banks did not This pattern is evident in both interafliliate ex- extend large amounts of credit to their nonbank tensions of credit and transfers of assets, and affiliates during the period of study is consistent implies that holding company banks generally with the claim of bankers that the collateral have a higher marginal revenue function than requirements of section 23A have represented a does the nonbank sector as well as a higher real constraint on such lending. In this regard, equilibrium level of marginal revenue and mar- recent legislation enacted by the Congress subginal cost when each sector is operating sepa- stantially expands the types of collateral that rately. banks can accept when lending to their affiliates. The net downstream flow of funds is generally Therefore, the flows of funds within bank holding stronger in the case of extensions of credit than companies in the future may be significantly transfers of assets. In part, this result may reflect different from the general patterns observed in the restrictions on upstream credit extensions this study. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

335 Industrial Production Released for publication May 13 duction of durable and nondurable materials, consumer goods other than autos, and construc- Industrial production increased an estimated 2.1 tion supplies. The increase in April brought the percent in April following advances of 1.2 per- level of the total index to 142.6 percent of the cent in March, 0.4 percent in February, and 1.6 1967 average, almost 6 percent above the Nopercent in January; the increases in each of these vember 1982 low, but still about 7 percent below three recent months were revised upward 0.1 its high in July 1981. percent. Gains in output in April were wide- In market groupings, production of durable spread, and large advances occurred in the pro- consumer goods in April advanced more than 3 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: April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 Federal Reserve Bulletin • May 1983 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1983 1982 1983 AAAppprrr... 111999888222 tttooo AAAppprrr... Mar.p Apr.e Dec. Jan. Feb. Mar. Apr. 111999888333 Major market groupings Total industrial production 139.7 142.6 .2 1.6 .4 1.2 2.1 1.7 Products, total 141.9 144.5 .6 .7 -.3 1.0 1.8 1.1 Final products 140.3 142.9 .9 .4 -.6 .8 1.9 .2 Consumer goods 144.7 147.7 .5 1.1 .2 .6 2.1 3.9 Durable 135.0 139.3 1.0 4.5 2.1 .4 3.2 6.6 Nondurable 148.6 151.0 .3 -.1 -.5 .7 1.6 3.0 Business equipment.. 144.1 146.7 1.2 -1.0 -2.6 .9 1.8 -11.0 Defense and space ... 117.8 119.1 2.0 .4 -.3 1.6 1.1 11.1 Intermediate products .. 147.4 150.5 -.2 1.6 1.0 1.6 2.1 4.7 Construction supplies 132.1 135.5 -.3 3.3 2.0 1.9 2.6 9.6 Materials 136.5 139.5 -.5 3.3 1.7 1.6 2.2 2.4 Major industry groupings Manufacturing 139.9 142.9 .4 1.6 1.0 1.4 2.1 3.0 Durable 125.9 129.0 .5 2.2 1.0 1.8 2.5 1.8 Nondurable 160.1 163.1 .2 1.2 .8 .9 1.9 4.5 Mining 113.7 113.4 1.4 3.0 -5.3 -1.6 -.3 -15.4 Utilities 164.8 167.3 -1.5 -.7 -.8 1.9 1.5 -2.2 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. percent as home goods, particularly appliances curred in all major components. Within the nonand carpeting and furniture, registered strong durable materials, increases in output were progains. Auto assemblies edged up to an annual nounced in chemicals and textiles. Production of rate of 5.9 million units from a rate of 5.8 million energy materials increased 1 percent as generain March. Output of nondurable consumer goods tion of electricity rose. increased 1.6 percent as all major components In industry groupings, output of total manufacrose. Production of business equipment in- turing advanced 2.1 percent in April and was 6.6 creased further by almost 2 percent, reflecting percent above the low in November 1982. Prosizable gains in manufacturing, commercial, and duction of durable manufactures continued to transit equipment; however, building and mining increase sharply with the most notable gains in equipment declined again. Output of defense and the primary metals, electrical machinery, furnispace equipment increased 1.1 percent. Produc- ture, and lumber industries. Output of nonduration of construction supplies continued to recov- ble manufactures also rose strongly—almost 2 er rapidly, rising 2.6 percent in April. percent—with sizable increases in the textile, Output of materials increased 2.2 percent in chemical, petroleum products, and rubber and April as both durable and nondurable goods plastics products industries. Mining activity materials rose sharply further. Among durable edged down further as oil and gas well drilling materials, which have advanced more than 13 declined. The output of electric and gas utilities percent since the trough, substantial gains oc- rose 1.5 percent in April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

337 Statements to Congress Statement by Paul A. Volcker, Chairman, Board The major sector that is continuing to lag is of Governors of the Federal Reserve System, business capital spending, and exports remain before the Committee on Banking, Finance and depressed. Sluggish capital spending is not un- Urban Affairs, U.S. House of Representatives, usual during the early stages of an upturn, and April 12, 1983. exports are reflecting in part relatively slow economic performance abroad. But develop- I welcome the opportunity to meet again with ments in those sectors also emphasize the rethis committee to discuss the objectives and maining risks and uncertainties in the mediumconduct of monetary policy. The Federal Re- term outlook, related in substantial part to the serve's official monetary policy report to the actual and potential pressures on interest rates Congress was submitted in February.1 Given the and financial and foreign exchange markets extensive nature of that report, my earlier testi- growing out of the prospects for continuing huge mony before the Senate Banking Committee, and federal deficits and remaining inflationary conyour request to be brief, my comments today will cerns. be limited largely to updating the previous re- Currently, price performance has, if anything, port. been better than anticipated. Consumer prices When the Federal Open Market Committee were essentially unchanged between December (FOMC) was considering its annual growth and February, while producer prices declined ranges for money and credit in early February, about 1 percent over that period. I recognize that incoming economic data were suggesting that a declines in energy prices have been a major recovery was probably beginning. Price data had factor in this recent price behavior, and the data for some time shown an encouraging drop in clearly overstate the progress that has been made inflation, and a significant downward adjustment in reducing the underlying trend of inflation. But in petroleum prices appeared likely. The general in recent quarters, wage increases overall have view of the FOMC was that a moderate expan- moderated further to annual rates of 4 to 5 sion in activity was likely this year and that this percent, providing, together with increases in upturn would be consistent with continuing pro- productivity, a base for further slowing in unit gress against inflation. labor costs. Subsequent developments have been consis- At the same time, however, it is a troubling tent with that outlook. The pace of recovery has fact that a few recent wage settlements seem been uneven from month to month; but this is not widely out of keeping with recent favorable price out of the ordinary, and production, employ- trends. Special considerations apparently influment, and spending all have moved up signifi- enced those settlements, but a tendency toward cantly. The size of the pickup in home building generalization of cost-increasing wage bargains has been especially notable, coming as it has in would clearly impair longer-term inflationary the context of mortgage rates that are still high prospects and ultimately the sustainability of by historical standards. Inventory liquidation, recovery. which took place at a high rate in late 1982 and in The simple fact is that we have come a long January of this year, appears to be subsiding, way in setting the stage for noninflationary exproviding short-term impetus to activity. pansion in which unemployment will decline and workers can again enjoy lasting increases in real income. But that process needs to be nurtured 1. "Monetary Policy Report to Congress," Federal Reserve Bulletin, vol. 69 (March 1983) pp. 127-40. with care and discipline. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin • May 1983 In no area is that discipline required more than in February for that aggregate pertains to the in the federal budgetary process. I take encour- period after the first quarter, by which time the agement from the successful effort to reach a distortions are expected to abate. Based upon compromise on the social security legislation, the estimates of shifting that are available, underhelping to reestablish the financial viability of lying growth in M2 appeared to have been fairly that system. But that is only a small step toward strong for the first two months of the year, but dealing with the structural budget deficit that some slowing seems to have developed in looms ahead. The coming weeks will be critical March. to that effort, and your decisions are bound to Looking ahead, the annual growth range for have a large bearing on the outlook for interest actual M2 of 7 to 10 percent measured from the rates. average of February and March still appears Our monetary targets for the year were set out reasonable. That range allows for some limited in detail in my earlier statements. As indicated residual shifting over the remainder of the year. earlier, after a period of considerable institution- The impact of the new accounts on Ml also al and other distortions in monetary relation- has been difficult to assess, but in recent months ships, those objectives will be reviewed as neces- probably has been largely offsetting. Obviously, sary in the light of all the evidence about the Ml has been growing at a rate substantially relationships between money and credit growth, above that implied by the annual target of 4 to 8 on the one hand, and economic activity and percent, and faster relative to gross national inflation, on the other. Deposit flows in response product than would be suggested by past relato the advent of the money market deposit and tionships. To some extent—but it cannot be Super NOW accounts have been massive. As measured with any degree of certainty—the deexpected, these inflows have had a major impact creases in "velocity" may reflect the changing on the growth rates of some of the aggregates— nature of Ml; with interest-bearing NOW and particularly M2. More broadly, for much of 1982 Super NOW accounts making up an increasingly and continuing into 1983, movements in "veloci- large proportion of Ml, this aggregate may be ty" have deviated significantly from past pat- influenced by "savings" behavior as well as by terns. Necessarily in these circumstances, we "transactions" motives. That is a longer-term have put a greater premium on judgment and less factor, and the growth in Ml over the shorter run on "automaticity" in our operational decisions may have been affected by the reduced level of in responding to movements in the aggregates in market interest rates—particularly relative to recent months. interest-bearing NOW accounts—and slowing in- Starting with M3, the broadest monetary aggre- flation, as well. The range of uncertainty on gate, growth appears to have been affected rela- these points is substantial, and has led the Federtively little by the new instruments, as banks and al Open Market Committee to place less emphathrift institutions responded to the stronger in- sis on Ml in the implementation of policy over flows into the new accounts included in M2 by the short term. Nonetheless, prolonged growth running off a portion of their large certificates of at high levels, particularly if the increases are deposit (CDs). In addition, declines in the money spread among its various components, would be fund component that is included only in M3 also a cause for concern. have offset part of the strength in M2 balances. The Committee also decided to take explicit Taking account of somewhat slower growth in account of the growth of total credit in judging March, the current level of M3 is very near the the appropriate rate of monetary expansion. upper end of the FOMC's 6V2 to 9'/> percent While full data are not yet available for the first annual range. quarter, preliminary indications are that the ag- M2 has been most distorted by the impact of gregate debt of domestic nonfinancial sectors the new accounts. Precise calculation of the grew well within the 8V2 to IIV2 percent range amount of funds diverted into that aggregate projected by the FOMC. Within the total, federal from assets not included in M2 is simply not borrowing remains particularly strong, accountfeasible, and for that reason the target range set ing for around 45 percent of the growth. Mainte- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 339 nance of growth in federal borrowing at that We now provide relatively short-term projecproportion of the total would be without parallel tions or forecasts of several economic variain peacetime. For the time being, nonfinancial bles—comparable to the "assumptions" made corporate borrowing has been moderate, largely for purposes of forecasting the budget outcome. reflecting reduced needs for external financing of Those Federal Reserve projections already proinventory and capital investment. But, with the vide a means of assessing the budget forecasts in budget deficit projected to fluctuate around re- the light of our assumptions as to economic cent rates, an obvious question arises as to the activity. While I am not certain of the intent, the capacity of the credit markets to absorb a resur- proposed budget resolution language seems to gence of private credit demands as the recovery suggest something more—that the Federal Regathers momentum. serve agree upon some combination of growth, Taking account of credit as well as monetary inflation, and unemployment as a kind of ideal behavior, and some indications that the burst of path toward longer-run objectives and attempt to growth in at least the broader monetary aggre- manipulate monetary policy to stay on that pargates may be subsiding, we believe our policy ticular path. posture has been broadly consistent with the The possible implications of that approach specific objectives we set out in February. Obvi- need consideration. I believe economic analysis ously, that implies an expectation that monetary strongly suggests that monetary policy over longgrowth will subside in the coming months, partic- er periods is particularly relevant for prices, and ularly for M2 and Ml. that, in any direct or short-term sense, the divi- The larger question concerns the development sion between real and nominal GNP growth is of economic activity and prices during 1983 and not susceptible to monetary manipulation. To beyond. The FOMC has presented the estimates suggest otherwise—by requiring the Federal Reof its members for GNP growth, inflation, and serve to establish short-term "objectives" for a other variables for 1983; while those estimates variety of nominal and real variables—would be are now two months old, my sense is that the to encourage a degree of "fine tuning," and general contour anticipated today would be simi- indeed overreaction to current deviations from lar, perhaps—given recent data—with a bit trend, that could well be counterproductive in stronger growth and less inflation. Those esti- terms of our (and your) basic continuing goals. mates, given the range of uncertainty in any Moreover, experience amply demonstrates forecast, are not out of keeping with the assump- that economic conditions for even relatively tions of the administration and the Congressional short periods of a year or so cannot be forecast Budget Office. or estimated with the precision suggested by Mr. Chairman, you have requested some com- "point" forecasts. I am concerned that attempts ment or response to the "sense of Congress" by the Federal Reserve to express "objectives" provision included in the House version of the in precise statistical terms year by year would first budget resolution pointing toward the Fed- encourage a false belief in the controllability— eral Reserve establishing numerical "objec- certainly by monetary policy alone—of an enortives" with respect to certain key economic mously complicated economy subject to a varievariables over several years ahead. The Board ty of strong forces, internal and external. Obviand the FOMC of course share the common ously, we do need to be concerned with whether objective of contributing—insofar as monetary the economy is developing reasonably satisfactopolicy can—to a growing, fully employed econo- rily in terms of our continuing long-run objecmy in a framework of reasonable price and tives—and consider whether policy adjustments financial stability. I would emphasize my belief are desirable. that the "stability" objective is an essential But there is more than one pattern consistent complement of the "growth" objective over any with the longer-run basic objectives. Our policy reasonable period of time. But we are also very judgments depend upon assessments of the comconscious of the limitations on monetary policy position of the nominal GNP between real alone in achieving and reconciling those goals. growth and inflation, the implications of short- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin • May 1983 term deviations from anticipated trends, the flexibility. And, in that connection, I believe it is source of the "disturbances," and other factors especially important in the case of monetary that need to be weighed, one against another. policy to approach the question in a way that will None of this can easily, or at all, be captured by a maintain an appropriate longer-term perspective, limited series of statistical macroeconomic ob- looking beyond the passing pressures of the day. jectives at one point in time, and I believe the Certainly, there should be no misconception end result of the effort would be misleading to the that, in approaching our long-range objectives, Congress and to the public. monetary policy can relieve the need for difficult I realize that, in a world that has been charac- choices on the budget and other areas of ecoterized by a great deal of economic uncertainty nomic policy. and interest rate instability, there is an under- All this is a large subject of fundamental signifstandable desire to, in a sense, "pin down" icance for the formulation and implementation of monetary policy in a way that can reduce the monetary policy. It should be carefully and delibuncertainties about our economic future. The erately considered and debated before this comrelevant question is how best to approach that mittee and other appropriate forums. I would end in a way that is truly productive and would urge that any proposed legislation in this area be encourage confidence, while retaining necessary taken up in that framework. • Statement by J. Charles Partee, Member, Board ity of funds in local credit markets. Usury laws of Governors of the Federal Reserve System, that impose unrealistically low limits tend to before the Committee on Banking, Housing, and reduce the supply of credit to local borrowers by Urban Affairs, U.S. Senate, April 12, 1983. encouraging lenders to channel funds into other investments or to geographic areas where they I am pleased to appear before this committee on can earn market rates of return. Alternatively, to behalf of the Federal Reserve to discuss a federal compensate for the low interest rates that are preemption of state usury laws governing inter- legally permissible, lenders may tighten nonrate est rates on business, agricultural, and consumer lending terms and credit standards, thus in effect loans. As you know, a temporary preemption of rationing available credit in socially undesirable business and agricultural rate ceilings, which was ways. Also, financial institutions can often repassed as a provision of the Depository Institu- structure the types of loans they make without tions Deregulation and Monetary Control Act of altering the use borrowers make of the funds. 1980, expired on April 1 of this year. The pre- For example, rather than offer traditional conemption had authorized lenders to charge a rate sumer loans subject to an interest rate limit, up to 5 percent above the Federal Reserve dis- lenders may offer junior mortgages, which typicount rate on business and agricultural loans of cally are not subject to a usury law, but which $1,000 or more in those states with ceilings less nevertheless add to the generalized purchasing than this variable limit. Rate ceilings on consum- power of consumers. er loans were not subject to a federal preemption In sum, because money is fungible, it will tend under the act. Rate ceilings on mortgage credit to flow, in one way or another, to the credit were preempted permanently except in those markets offering the highest economic rates of states that acted to override the preemption prior return. Given the rapid deregulation of interest to April 1. The bill currently before this commit- rates paid by depository institutions, moreover, tee recommends a permanent federal preemption the cost of funds to financial institutions in local of state usury ceilings on business, agricultural, communities has become increasingly sensitive and consumer credit without imposing an alter- to national money market developments. This native federal limit tied to the discount rate or creates an even stronger incentive for these any other interest rate. institutions to earn a competitive return on their The Board has long been concerned about the assets. adverse impact of usury ceilings on the availabil- Despite the Board's basic opposition to artifi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 341 cial constraints on interest rates, we have had trary rate ceilings of any kind. In the past, we reservations about federal intrusion into an area have considered a variable rate ceiling as a traditionally regulated by the individual states. In preferable alternative to fixed-rate state usury this regard, retention of a provision clearly per- ceilings. However, the Board has viewed the use mitting states to override a federal preemption of of the Federal Reserve discount rate as an index their ceilings seems an important minimal protec- inappropriate for a variable interest rate ceiling tion of state prerogatives. Information collected at either the federal or the state level. Thus, the by Board staff indicates that, as of the middle of current bill is to be commended for not tying a last year, a dozen states had at least partially variable interest rate ceiling at the federal level to overridden the federal law imposed on them by the discount rate. the Depository Institutions Deregulation and To summarize, the Board continues to believe Monetary Control Act of 1980. Among these 12 that state action rather than federal law should states, however, usury ceilings on business and prevail whenever possible in dealing with the agricultural loans were either unspecified or problem of fixed-rate usury ceilings. Many states fixed at levels at which they had no effect on have acted since 1980 to reduce the constraining credit flows. effect of their usury ceilings on credit availabil- Those states that were most restricted by ity, and financial conditions have eased recently usury ceilings generally did not act to override to the point at which usury ceilings generally are the preemption. In fact, many states have moved not now a binding constraint. Although these to relax their regulation of interest rates follow- factors weaken the current urgency of the mating the passage of the Deregulation Act. Those ter, they do not eliminate the underlying need for states that have not relaxed or were slow to relax further action to relax interest rate ceilings. If the their usury ceilings, particularly ceilings on con- Congress determines that this should be done sumer loans, frequently have suffered certain through federal preemption, the Board would costs, as financial institutions increasingly have urge, first, that the states continue to be permitshifted some lending operations to other states ted whatever degree of override their circumthat have no usury constraints. stances seem to dictate and, second, that the The Board believes that interest rates are best Federal Reserve discount rate not be used in any determined in markets unconstrained by arbi- variable ceiling rate scheme. • Statement by J. Charles Partee, Member, Board Investment and Monetary Policy, and by Chairof Governors of the Federal Reserve System, man Volcker in testimony before the Senate before the Subcommittee on Financial Institu- Committee on Banking, Housing, and Urban tions Supervision, Regulation and Insurance of Affairs just ten days ago. the Committee on Banking, Finance and Urban I want to reiterate the Federal Reserve Affairs, U.S. House of Representatives, April 21, Board's support for prompt congressional action 1983. on the IMF legislation. Increased financial resources for the IMF will add to its capacity to I am pleased to appear before this subcommittee assist member countries in pursuing orderly adto discuss various issues of supervision and justments in their balance of payments problems regulation of international lending. These issues and will buttress the role of the IMF in the and the proposed increase in the financial re- international monetary system at a time when sources for the International Monetary Fund that system is being subjected to extraordinary have been discussed by Chairman Volcker in his pressures. A strengthened IMF should also be testimony on February 2 before the House Com- helpful in encouraging countries to avoid adoptmittee on Banking, Finance and Urban Affairs, ing restrictive trade policies that would be to the by Governor Wallich in testimony before the detriment of all trading countries, including the House Subcommittee on International Trade, United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin • May 1983 Increasing the IMF's financial resources, how- which the committee can consider the regulators' ever, will not provide a complete solution to the proposals now before it. external financing problems of some major inter- As noted by your chairman, before 1977 the national borrowers. Countries that borrowed ex- agencies differed significantly in their approachcessively in the recent past are now faced with es toward supervising country exposure. Howthe necessity of adapting to more stringent cir- ever, beginning in 1977 the banking agencies cumstances. In this adjustment process, some implemented a number of measures to improve assistance should come from the economic re- supervisory procedures and to insure basic unicovery in the major industrial nations, which will formity of treatment. improve export markets on a worldwide basis. In 1977, the three federal banking agencies Some help will also flow from the decline in began collecting the country exposure lending interest rates from their previous high levels. survey on a semiannual basis. This common In addition, a resolution of the external finan- report allowed the agencies to monitor the expocial problems of some major borrowers requires sure of individual banks on a systematic basis. It a marked slowing in the pace of borrowings in also insured that the banks themselves had a the international markets from that prevailing up mechanism for evaluating their own exposure to a year ago; in the case of banks, we would levels. The aggregate information on the amount expect that lending to such countries generally of lending by U.S. banks to individual countries will be below the growth of capital and of other is published. The information is also provided to earning assets, so that relative exposure to such the Bank for International Settlements, which countries will decline. In the late 1970s bank aggregates similar data from other major counloans to many countries were increasing on the tries on the overall indebtedness of various counorder of 20 to 25 percent per year, a rate that tries to banks in the major developed countries. clearly was unsustainable. While a slowdown in In late 1978 the three banking agencies agreed new bank lending to the heavily indebted coun- to new uniform procedures for supervising countries is now in process, attempts by banks to try risk for banks significantly involved in interreduce their aggregate outstanding credit to these national lending. In this regard I might note that a countries would be self-defeating and potentially study by the Government Accounting Oflice last dangerous. Indeed, as with other large borrow- year found that the system stresses uniformity ers, some further increase in loans, to make among examiners and agencies, and there is also possible an orderly adjustment process, can help much uniformity in practice. The GAO report did preserve the value of the existing loans. note some areas in which greater uniformity While fully recognizing the need for an orderly might be needed, and our current proposals are adjustment process, the Congress and the public in part responsive to these suggestions. have raised legitimate concerns about the pace The examination procedures adopted in 1978 and prudence of international lending by banks in were designed to encourage diversification of recent years, and these concerns lead directly to loan portfolios, to identify problem credits subissues of bank regulation. After reviewing the jected to transfer risk, to bring to the attention of recent experience, the federal bank regulators management comments on country concentrahave developed a program for strengthening the tions of loans, and to evaluate the extent to supervision and regulation of international lend- which the banks had satisfactory systems for ing and, in response to a request from the Senate monitoring country exposure and assessing Banking Committee, have prepared draft legisla- country conditions. tion to embody the major features of this pro- The new procedures involved the creation of gram. the interagency country exposure review com- Before reviewing the proposals of the bank mittee (ICERC), comprised largely of senior field regulators, I think it would be useful to discuss examiners, to insure the uniform treatment of briefly the examination and reporting procedures transfer risk with respect to comments on conthat have been in place over the past few years. centrations of country exposure. ICERC deter- This discussion provides a background against mines when credits warrant classification due to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 343 country risk. It also places countries in one of been unable to service their debts over a prothree broad groups in order to determine the tracted period of time. level at which a bank's exposure to a particular 3. Mandating guidelines for spreading fee incountry is high enough to warrant mandatory come over the life of an international credit. comment. ICERC's determinations are followed 4. Increasing the frequency of reporting and jointly by all three agencies. In general, the increasing disclosure of information on banks' federal bank regulators are satisfied with the country exposures. mechanisms, including ICERC, that have been 5. Improving international cooperation with established in recent years to provide uniform foreign banking regulators and through the IMF. treatment of international lending by banks. For The changes in the examination system are this reason we are not recommending any change designed to improve both the way in which the in those arrangements in the new program. regulatory agencies take transfer risk into ac- In making determinations about the level of count in assessing the condition of a bank, espetransfer risk in lending to various countries, cially in relation to the evaluation of capital ICERC has available a considerable amount of adequacy, and the manner in which transfer risk information. To provide a starting point for anal- is brought to the attention of the bank's senior ysis of country conditions by the ICERC, com- management and board of directors. parable quantitative information was developed While present country risk procedures call on for about 70 countries. In addition to compiling examiners to comment on concentrations of this information, economists at the Federal Re- transfer risk in the examination report, these serve Bank of New York and the Board provide comments have not always been adequately im- ICERC with current studies covering specific pressed on senior bank management or directors. countries—studies that include available infor- The agencies intend now to highlight large conmation from the IMF. ICERC also receives oral centrations and to ensure that a bank's board of briefings from U.S. Treasury staff on conditions directors considers fully the risks associated with in the countries under review. Finally, before such exposures, including in-house monitoring of each meeting, examiners visit a number of banks the bank's lending to individual countries. to obtain views on the countries and the current At the same time, procedures will be develand future lending plans of the banks. oped to incorporate the level and concentration Although the new procedures adopted in 1978, of a bank's transfer risk and country exposure together with the introduction of the country into the agencies' own analysis of the condition exposure lending survey, represented improve- of a bank. In particular, banks with relatively ments in the supervision of country risk, in large concentrations of credit in individual counretrospect the system clearly did not have suffi- tries will be expected to maintain higher capital cient force or impact on banker attitudes. In- ratios than those institutions that are well diverdeed, international lending by a growing number sified. of U.S. banks accelerated in the wake of the The program will also require that banks estabincreased demand for credit following the second lish special reserves against credits to borrowers round of oil price increases in 1979. in countries that have demonstrated protracted Against this background, we have submitted a debt-service problems. This proposal is based on proposal designed to address the problems that the belief that when a borrower has been unable have emerged in international lending. This to service its debts over an extended period of package should enhance and strengthen the regu- time, whether or not that borrower is a soverlatory structure developed in recent years. eign, it is appropriate to recognize the diminished The proposal submitted by the regulators in- value of these assets. Such reserves would be cludes the following elements: established through deductions from current 1. A strengthening of the existing country risk earnings and would not be included in capital for examination and evaluation system. regulatory and accounting purposes. 2. The establishment of a system of special The program would also impose specific stanreserves against exposures to countries that have dards in accounting for the fee income associated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin • May 1983 with international lending. To the extent that so- supervision. The Cooke committee is concerned called front-end fees have been taken into in- with bank supervisory matters; it is not concome in the quarter or year in which they are cerned with lender-of-last-resort responsibilities. charged, rather than spread over the life of the It is a consultative body; it is not empowered to loan, there may have been an incentive to pro- enter into agreements among its members. Howmote international loans in order to boost earn- ever, it does seek to establish general principles ings. The regulators' proposal would reduce this to which bank supervisors around the globe may incentive by requiring fees that are not identifi- subscribe. able as reimbursement of direct costs to be taken International cooperative efforts by their very into income over the expected life of a loan. nature are difficult and time consuming. While The program also requires that country expo- the Cooke committee has been successful in sure information be reported by banks and pub- reaching agreement in principle on a number of lished by the agencies in aggregate form quarter- matters dealing with good practices in internaly, instead of semiannually, and that full tional banking, implementation is effected at the information on concentrations of country expo- national level. Thus, while the U.S. banking sure at individual banks be made public. This agencies are determined to strengthen cooperincreased reporting will allow the regulators to ation with foreign bank regulators, that process monitor exposure levels more closely and pro- will necessarily be a continuing effort, with revide more information to lenders on the aggre- sults becoming apparent only over time. gate bank indebtedness of individual countries. National bank regulatory systems differ sub- The increased disclosures will improve informa- stantially from one country to another, and what tion to investors and depositors and should en- is sought is not international uniformity but rathhance the prospects of market discipline. er a convergence of supervisory approaches. For The final point in the program prepared by the instance, very few countries in the world have agencies concerns coordination and cooperation bank examinations at the center of the supervisowith foreign bank regulators and through the ry process as we do. Thus, the part of our IMF. Problems in international lending affect all program dealing with improved examination participants in the world banking system and techniques in relation to international lending has resolution of these problems requires a common few parallels abroad. In these circumstances, we effort. For this reason and also to help avoid will be consulting with foreign regulatory agencompetitive inequities the agencies propose to cies, through the Cooke committee and othermake every effort to strengthen relations with wise, on ways of achieving a common goal of foreign bank regulators. limiting excessive exposures. Similarly, we have Those relationships have materially improved a formal rating system in this country for assessin recent years, notably through participation in ing capital adequacy and appraising asset qualithe work of the committee on banking regula- ty. Other countries have quite different sytems. tions and supervisory practices at the BIS. In- As part of our program, we intend to develop deed, the Federal Reserve Board was instrumen- procedures through which country exposures tal in founding that committee in 1975 and has can be factored systematically into our evaluabeen active in its work ever since. The Office of tion of capital. Internationally, there is agreethe Comptroller of the Currency now also is a ment in principle that capital standards should participant. not be allowed to erode further. And some countries, for example, the Netherlands, have The committee—which is sometimes known as already begun to include elements of country risk the Basle committee because it meets in Basle, in their capital assessment systems. or the Cooke committee after its present chairman—has as its objectives the establishment and The subject of reserves or loan-loss provisions maintenance of close working relationships on country lending has been discussed within the among national bank regulators to facilitate reso- Cooke committee over an extended period. lution of common problems and the achievement From a strictly technical point of view, the of greater coordination of approaches to bank subject is a difficult one. Provisioning policies in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 345 most of the countries represented on the commit- to collect international banking data from countee are still largely determined by, and are the tries not currently covered by the BIS data, and responsibility of, the banks themselves. As a this expanded coverage should help to improve consequence, a good deal of variation exists in the overall banking data. the country credits against which provisions Questions have been raised concerning the lag have been made and in the proportions of credits in availability of international banking statistics. reserved. At the same time, there is a growing While reporting has not been as timely or as practice for the banking authorities of the various complete as might have been desirable, I want to countries to hold consultations with the banks emphasize that data were readily available from about appropriate provisioning. In this connec- existing sources pointing up the growing external tion, I hope that the reserve proposal we have bank debt of major countries. For example, BIS made will provide impetus to achieving greater data available in mid-1981 indicated that in the 18 progress in this area of supervision. months to December 1980 total bank claims on On disclosure, which is an important element Mexico had increased about two-thirds, and of our program, I do not expect much near-term short-term bank claims had more than doubled. progress on the international front. Other coun- Therefore, while statistical reporting systems tries do not have the same approach to disclosure can and should be improved, clearly there is about the affairs of individual banks that we do as room for lenders and regulators to make better a matter of national policy. Again, the U.S. use of existing information. example will certainly help in efforts to hasten The IMF, of course, plays a central role in the the day when other countries also call for fuller international financial system, and strengthening disclosures. the role of the IMF is an important aspect of the One can be more optimistic about improved regulators' proposal. In particular, we believe reporting requirements on aggregate internation- that the surveillance process of the IMF can be al lending by national banking systems. An im- improved by encouraging it to monitor more portant function of the BIS in recent years has closely the external indebtedness of member been to collect and publish data on international countries and to report to its executive board banking activity.1 These data are accompanied when such indebtedness appears to be growing by a fairly detailed commentary (copies of which excessively relative to debt-service capacity. In have been provided for the committee's rec- developing stabilization programs the IMF ords), and are made available to all commercial should be encouraged to place limits on shortbanks from whom data are collected. term external public sector borrowing when ap- Because of the complexity of the system, the propriate. The IMF also needs to consider BIS semiannual series often has not been avail- whether it can provide more data and analysis to able until about six months after the report date, the international banking community without though efforts are now under way to accelerate jeopardizing its access to confidential informathat process. Various efforts are also under way tion from its members. to improve the coverage of the BIS data, includ- A stronger surveillance role for the IMF, as ing converting the semiannual series to a consoli- well as the proposed increase in resources of the dated basis, and expanding the coverage of IMF to provide credit to countries adopting banks in the quarterly series. In addition, the appropriate adjustment programs, will help con- IMF, in consultation with the BIS, is preparing tribute to the safety and soundness of the international financial system. In this context the 1. The appendix, which describes the role of the BIS in regulators have included the IMF provision in gathering and disseminating international lending data, is their program, and we all support the IMF legisavailable from Publications Services, Board of Governors of lation before you. • the Federal Reserve System, Washington, D.C. 20551. Additional statements follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin • May 1983 Statement by Anthony M. Solomon, President, bankers acceptances with Lombard-Wall be- Federal Reserve Bank of New York, before the cause of dissatisfaction over its financial condi- Subcommittee on Domestic Monetary Policy of tion. Comark and Drysdale had approached the the Committee on Banking, Finance and Urban Federal Reserve to establish formal reporting Affairs, U.S. House of Representatives, Wash- relationships in government securities, but Coington, D.C., April 25, 1983. mark failed to qualify and Drysdale applied only days before its collapse. Nonetheless, their fail- Good afternoon, Mr. Chairman. With your per- ures were a cause of concern to us in that such mission, I am here in response to your invitation events tend to affect the functioning of the marto Chairman Volcker to review the recent efforts ket as a whole. In my statement before the of the Federal Reserve System in its surveillance Subcommittee on Securities of the Senate Comof the government securities market, in order to mittee on Banking, Housing, and Urban Affairs contribute to the orderly and effective operation on May 25 last year, I expressed this concern, of that market. and indicated that the Federal Reserve would The Federal Reserve Bank of New York, reexamine its traditional informal surveillance acting on behalf of the Federal Open Market role and work with the dealer community in Committee (FOMC), conducts open market op- seeking to remedy the practices that led to these erations to implement the FOMC's monetary difficulties. policy directives, mainly through transactions Much progress has been made in the ensuing involving U.S. government securities. Most 11 months. With the active encouragement of the dealers in such securities are located in New New York Reserve Bank, dealers have effective- York City, and many of the nation's largest ly eliminated one of the market practices that banks are also headquartered there. Additional- enabled Drysdale to overextend itself—the failly, in common with the other 11 Federal Reserve ure to include accrued interest in valuing securi- Banks, the New York Reserve Bank acts as ties for repurchase transactions—and are considfiscal agent for the U.S. Treasury in the sale of ering a number of proposals to address other new Treasury debt issues. Altogether, more than market practices when a need for change has half of the Treasury's securities are sold through been recognized. For our part, the surveillance New York financial institutions. efforts of the New York Bank have shifted into Nearly one year has elapsed since a dealer in high gear with the increase in our professional government securities, Drysdale Government staff devoted to this effort. Securities, Inc. (Drysdale), was unable to pass In my remarks, I would like to begin with a on to counterparties interest on securities pur- brief overview of the government securities marchased under repurchase agreements. In addition ket and a review of the developments of the past to causing two major banks to absorb significant year. I will then discuss in some detail the losses, Drysdale's default sent shock waves specific areas of concern that we see at the through the market that contributed to the subse- present time with respect to financial and operaquent failure of two other firms—Comark and tional matters affecting the dealers and the mar- Lombard-Wall. These events led to a heightened ket. I will address the question you raised: degree of awareness among all the participants in whether the market will be able to absorb the the market regarding the risks inherent in certain Treasury's financing needs resulting from the market practices and the need to be more cogni- projected deficits of the next few years without zant of the financial conditions of one's counter- undue upward pressure on interest rates. Finally, parties in conducting market transactions. I will turn to the issues that remain to be resolved, including the questions you posed re- None of the three firms that failed was a garding the number of dealers with whom the primary dealer conducting government securities Federal Reserve has a direct relationship: whethtransactions with the Federal Reserve Bank of er the Federal Reserve should be directly em- New York. However, the Federal Reserve had powered to regulate the government securities previously transacted business in bankers accepdealers; how repurchase transactions in governtances with Lombard-Wall. In November 1981, ment securities and certain other instruments the Federal Reserve discontinued dealing in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 347 should be treated for purposes of the bankruptcy ties from a credit standpoint. Several other faclaw; and questions regarding the level of capital tors are relevant here. needed to support a given level of operations for 1. Many of the dealers are subject to formal a dealer firm and whether specific capital ratios regulation in some form, either because they are should be imposed on the firms. banks or subsidiaries of bank holding companies or because they are part of nonbank securities firms that operate in regulated markets. 2. Although the purchase and sale of govern- OVERVIEW OF THE GOVERNMENT ment securities are not regulated as such, they SECURITIES MARKET remain subject to the general antifraud provisions of the federal securities laws, thus affording The market for U.S. government securities, protection to the individual investor in those which comprises trading in Treasury bills, notes, respects. and bonds, is the most active capital market in 3. In the usual case the ability of any market the world and hundreds of firms participate in it. participant to carry excessive security positions But it centers chiefly on some 36 primary dealer or engage in other imprudent practices is confirms that submit to the Federal Reserve Bank of strained by its relationships with the other partic- New York daily and periodic supplemental posiipants, including the degree of credit risk expotion and volume reports as well as regular finansure they are willing to assume toward that cial statements. Most of these firms are located participant. in New York, although several are in Chicago, Los Angeles, and San Francisco. This primary The role of the Federal Reserve as a key dealer group presently includes 12 bank dealers, participant in the market has also served as an which are among the nation's largest commercial important deterrent to abusive practices. In orbanks, and 24 nonbank dealers, which range der to qualify as a primary dealer that may from comparatively small specialty firms confin- transact business with the Federal Reserve, we ing their activities to this market to several of the require that a firm be actively engaged in the largest diversified investment banking firms. distribution of Treasury securities among inves- Some measure of the importance of the 36 tors, have adequate capital and capable manageprimary dealers is provided by their participation ment, make markets, and have a "track record" in the market for new Treasury issues. While the manifesting a long-term commitment to the maramounts vary, these dealers usually purchase ket. In addition, the dealer must submit periodic, from 35 to 75 percent of the total amount sold by audited financial statements to us, as well as the Treasury at each auction. In addition, they daily reports of its market positions. Not until all make secondary markets in these issues, stand- of these requirements are met, over a period of ing ready to bid or offer outstanding Treasury time, will a dealer be added to the "reporting obligations to customers and to each other. By list." From time to time, dealers that have not and large, this market functions quite well, with maintained these standards—for reasons such as the result that over the years the Treasury's huge insufficient activity, inadequate capital, or a busfinancing requirements have been met efficient- iness decision to reduce their level of participaly. Investor confidence in Treasury issues is tion in the government securities market—have fortified by the knowledge of their extraordinary been dropped from the list. liquidity in the secondary market. Inclusion in the reporting list does not ensure a Although the Federal Reserve has for decades trading relationship; at any given time, one or exercised informal surveillance of the market, more of the firms on the reporting list may not primarily through its monitoring of reports sub- actually have a trading relationship with the mitted by dealers with which it does business, Federal Reserve. A firm in this position may there has never been any formal regulation of the have been added to the reporting list while we market. Historically, the lack of a perceived are still evaluating its ability to meet our someneed for formal regulation was due in part to the what more stringent criteria for a trading relaessentially riskless nature of government securi- tionship. Alternatively, it might be a firm that has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin • May 1983 been suspended from a trading relationship while In the Lombard-Wall situation, some customa reporting relationship continues. In effect, we ers advanced funds in excess of the value of the do what other participants in the market should securities they received under repurchase agreebe doing—constantly review the soundness of ments. Others received funds from Lombardthe firms with which we do business. We do not, Wall of lesser value than the securities they however, represent that a trading or reporting provided. Again, the firm was able to employ relationship with the Federal Reserve is a guar- these excess funds to support activities well antee of a firm's soundness. beyond the level warranted by its own capital. In the wake of these developments, the Federal Reserve moved to take the lead in working DEVELOPMENTS OVER THE PAST YEAR with dealers and other market participants to improve procedures and eliminate the practices The most significant development in the govern- that were identified as having caused or contribment securities market in the past year was, of uted to these breakdowns in the market's normal course, the Drysdale failure and the subsequent self-corrective mechanisms. At the same time, problems of Comark and Lombard-Wall. On the dealers began moving toward needed September 15, 1982, the Federal Reserve Bank changes in some areas without the Federal Reof New York submitted to the Congress a report serve being actively involved. on these developments. To review briefly, the In the immediate aftermath of the disclosure common thread running through the three cases that Drysdale could not honor its commitment on was that the firms were able to circumvent in some $160 million of accrued securities interest some fashion the self-regulating mechanisms of payments due to Chase Manhattan Bank last the market, thereby raising working capital from May 17, our primary concern at the Federal careless or unwitting customers, and using that Reserve was to preserve the orderly functioning capital in their own activities. of the market until the situation could be re- In the Drysdale case, the firm essentially solved. We recognized some risk that failure to raised funds by borrowing securities, typically make these payments could cause a widespread securities with large amounts of accrued interest, "seizing up" of the market in which normally and then selling them to realize principal and major participants would be reluctant to underaccrued interest in excess of the cash margin it take new commitments or perhaps even to perprovided when it borrowed the securities. It was form on their existing commitments. able to engage in this activity on a large scale by As the major intermediary between Drysdale exploiting two market practices—the failure to and its counterparties in these transactions, the include accrued interest in the value of securities Chase Manhattan Bank contacted the New York used in repurchase transactions in determining Federal Reserve Bank and arranged for a meethow much cash should be posted, and the prac- ing at our offices with the dealer firms that were tice of "blind brokering," which enabled Drys- involved. The key issue was who should bear the dale to conceal its identity from its counter- loss resulting from Drysdale's default. The firms party—in effect hiding behind the banks that that had provided the securities through Chase acted as brokers in arranging the transactions. expected that bank to honor the interest pay- In the Comark situation, some of the firm's ments due, while Chase was looking to Drysdale customers apparently allowed Comark to retain as the responsible party. The immediate crisis custody of securities they had purchased from it. was resolved two days later on May 19, with the The firm's accounting system had fallen into announcement by Chase and Manufacturers disarray, and allegations are that it posted the Hanover, which was involved to a lesser extent, securities as collateral to secure borrowings that that they would make the interest payments in allowed it to continue functioning, even though question and would undertake to unwind Drysits capital had been depleted. It eventually dale's securities positions. proved unable to meet its demands by customers During these difficult two days, the New York for their securities. Reserve Bank took a number of actions aimed at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 349 facilitating a resolution of the crisis and making analysis, dealer operations, and law; and a few sure to the extent possible that the market con- support personnel. We anticipate that this staff tinued to function smoothly. On May 18 we will be adequate to meet our present needs, informed the 12 New York Clearing House banks although we are prepared to expand it if warrantand all of the primary dealers that we were ed by new developments—such as, for example, closely monitoring the situation and stood ready a significant increase in the number of dealers to assist any bank facing an unusual liquidity reporting data to us. In addition, our surveillance problem with a loan at our discount window. In effort draws upon the Bank's other professional addition, we extended normal deadlines for our resources as necessary for legal, analytical, and securities and funds transfer systems to make operating support. sure that the day's transactions could be com- The basic ongoing work of the surveillance pleted. unit consists of receiving and reviewing the regu- The Open Market Desk also helped by acting a lar daily and weekly reports of securities posibit earlier than usual in meeting projected re- tions and transactions submitted by the reporting serve needs on May 18, and in the period imme- dealers, as well as their monthly and annual diately thereafter, we tended to resolve any reports of financial condition. With the aid of doubts as to the timing of our actions on the side computer programs and other analytical tools, of meeting anticipated needs more promptly and this review is aimed at identifying abnormal fully. But I should emphasize that the reserve dealer behavior and incipient undesirable trends. objectives themselves were shaped by monetary The inferences and opinions formed by our anapolicy considerations and were not affected by lytical team from examining these statistical re- Drysdale-related factors. ports are supplemented by regular telephone Following the commitment of Chase and Man- calls and visits to the reporting dealer firms. ufacturers Hanover to unwind Drysdale's posi- While we have traditionally made on-site surveiltion, the Federal Reserve also helped out by lance visits to the reporting dealers, the visits alerting the dealers that we would temporarily have been expanded in both scope and frequency liberalize our rules for making short-term loans and the procedure for conducting them is more of government securities from our portfolio. As a systematic. Essentially, every reporting dealer result, the volume of securities owned by the will be visited at least once annually, and more Federal Reserve and out on loan—such volume often as necessary if areas of concern have been is normally in the vicinity of about $200 million— identified. As I mentioned earlier, we would be briefly reached a high of about $2 billion on May prepared to suspend a trading relationship with a 25, before dropping back by early June as dealers reporting dealer, or to remove the dealer from found other sources for the securities they need- the reporting list, if our surveillance efforts reed. veal that it is not complying with our standards Beyond helping to contain the effects of the and it does not take appropriate steps to alleviate immediate situation last spring and summer, the our concerns. Federal Reserve has moved to strengthen its own A little further on I will address some of the commitment to overseeing the market. Last Au- specific issues of concern being examined by our gust, we announced the appointment of a Senior surveillance staff. To bring you up to date, Vice President to head a new unit within our however, I would like to mention briefly several Open Market function devoted exclusively to issues that already have been dealt with successmarket surveillance. This individual, Edward fully. Geng, has had broad experience in government First, the Drysdale situation made clear that securities at several private firms, as well as a the failure to include accrued interest in valuing previous stint at the Federal Reserve and at the securities for repurchase transactions carried a U.S. Treasury. Early this year we filled out, for potential for abuse that was inconsistent with the the time being, the staffing of this new area, sound functioning of the markets. The Associawhich presently includes two officers; five pro- tion of Primary Dealers in Government Securifessional employees with experience in financial ties put itself on record as favoring inclusion of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin • May 1983 accrued interest for evaluation purposes, and we CURRENT ISSUES at the Federal Reserve strongly endorsed this change as well. In a letter dated July 29, 1982, Let me turn now to more current issues. By and addressed to the head of each dealer firm, I large, these are the matters identified in your expressed the support of the New York Reserve letter, Mr. Chairman: whether the number of Bank for this change and informed the dealers reporting dealers should be expanded and how that we would make the change in August with this might be accomplished; the development respect to our own repurchase transactions. I and implementation of more explicit capital adeshould add that this change was not necessary to quacy standards for the dealer firms; and the protect our own position; rather, we undertook it treatment of repurchase agreements under the with a view to providing leadership and encour- bankruptcy laws. In addition, I will touch upon agement to the rest of the market. another area to which we have been devoting A bit later we became concerned that the considerable thought and effort, "when-issued" initial momentum in the dealer community to- trading—transactions in new issues between anward making this practice more general had nouncement and settlement date. bogged down as dealers considered the time and expense to make changes, for example, to their computer systems. In individual consultations Number of Dealers with reporting dealers, we concluded that it would be feasible for market participants to As I have mentioned, 36 dealers are on the make the change in accrued interest accounting Federal Reserve's reporting list, including 12 with customers other than the Federal Reserve commercial banks and 24 nonbanks. Although by early October. Accordingly, in late August we this number has been fairly stable in recent wrote to each reporting dealer once again, indi- years, it has grown considerably from the level cating that we expected the changeover to be that prevailed historically. Through the 1960s the completed by October 4, 1982—as it eventually number of dealers remained stable at around 20, was with few problems. including 12 to 14 nonbanks and 5 to 8 banks. In The self-corrective mechanisms of the market the 1970s, however, the number of dealers inhave also contributed to inhibit some of the creased as the Treasury's financing needs grew practices that led to last year's problems. In and the market expanded in depth and breadth. general, market participants became much more The present level was reached in the latter part of cautious about the dealers with whom they were the 1970s. willing to transact business and in what amounts. From the standpoint of conducting open mar- As a result, the total of reported repurchase ket operations competitively and flexibly, the agreements fell from some $100 billion on May present number of reporting dealers appears to 12, just before the Drysdale incident, to about be satisfactory. We do not believe that a large $87 billion by mid-June. Subsequently, as confi- expansion in the number of firms with reporting dence has returned to the market, the volume of or trading relationships would significantly imrepurchase transactions has recovered in the prove our ability to operate in the market. Inaggregate. But for a while thereafter those deal- deed, a sizable expansion in trading relationships ers regarded as less creditworthy continued to could be an encumbrance to speedy and flexible experience some difficulty securing repurchase operations. Nevertheless, the door is open to financing, or found they had to pay higher inter- additional firms, if they meet our criteria and are est rates. Consistent with this atmosphere of prepared to comply with our reporting requirerenewed caution and attention to one's counter- ments. As noted, a dozen or so firms have been parties, the practice of blind brokering of repur- added to the primary dealer reporting list over chase agreements has diminished substantially. the past decade and we continue to look at the Moreover, market participants are giving closer possibility of some further additions on a caseattention to the role of intermediaries in all types by-case basis. The addition of new firms has of transactions. tended to benefit the market not only by provid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 351 ing a broadened base of participation and in- We are not suggesting a detailed and comprecreased capital, but also by keeping the older hensive reporting system such as would be enestablished firms on their toes through enhanced tailed in a formal regulatory relationship with all competition. dealers in government securities. At this point, However, while our present reporting list is our judgment is that a fully comprehensive and adequate to meet our foreseeable trading needs, mandatory reporting system is not justified on we have concluded that it is not sufficient for the basis of likely costs and benefits. We do monitoring purposes—even though we believe believe, though, that there is enough activity in these firms account for the bulk of trading activi- government securities beyond the current prity in government securities. The experience of mary reporting dealer group to warrant a more last year has shown that problems among the systematic effort to receive some information nonreporting dealers can cause shock waves that from the more active and sizable nonreporting affect the entire market, including the reporting dealers. This information would help to provide dealers. With this in mind, we have been giving leads on which follow-up inquiries could be considerable thought in recent months to the pursued, and additionally foster a greater awarequestion whether there should be some more ness of standards in regard to good market systematic surveillance of presently nonreport- practice and capital adequacy across a broader ing firms that are relatively active in the govern- spectrum of market participants. ment securities market. We have concluded that In your letter to Chairman Volcker, Mr. Chaireffective surveillance of the government securi- man, you asked whether we had any concern ties market calls for our getting acquainted with a that imposing additional standards on the govgreater number of firms on a more regular basis, ernment securities dealers could reduce the numand we plan to do so. ber of firms available to handle the forthcoming Our plans are still in a formative stage, but our heavy volume of Treasury financings. I do not present intention is to request cooperation in see either our present reporting requirements or terms of data submission from a group of dealers our plans for the foreseeable future as posing any that are less sizable and active than the primary problem in this regard. It seems to me that as reporting dealers. This group would include only long as our standards are reasonable and geared nonbank firms, as the chief focus here is on the to the legitimate business practices of the dealer financial viability of the firms, and bank dealers firms, a firm that has the resources and the desire are already under close regulatory scrutiny that to be a significant market participant is not likely we would not seek to duplicate in our market to withdraw from this market—which is, after surveillance. We are thinking in terms of a sub- all, a large and profitable source of business. stantial number of additional dealer firms that As a related matter, you have expressed some would be invited to submit regular reports to the concern regarding the budget deficit and the New York Reserve Bank on a considerably less market's ability to absorb the expected volume frequent and detailed basis than the primary of Treasury financing without compromising the reporting dealers. soundness of the dealer firms or causing undue As with the existing reporting group, the sub- upward pressure on interest rates. With the mission of reports from a second dealer group economy just beginning to recover from a deep would be entirely voluntary. This second report- recession, I do not regard the current year's ing group would form a logical pool of candidates federal deficit as a significant problem. As in past from which future primary reporting firms might recessions, weak private credit demands have emerge, thereby furnishing an incentive for the allowed the government to increase its demands firms to comply with our requests. I also believe on the credit market without exerting undue that as a matter of policy any sizable participant pressure on rates. In fact, as you know, rates in the government securities market would not have fallen substantially in the last 10 months or want to be in the position of declining to disclose so in reflection of weakened private credit deinformation in confidence to the Federal Re- mands and a growing perception that inflation serve. has slowed substantially. As recovery proceeds, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 Federal Reserve Bulletin • May 1983 however, there is a real danger that still-exces- who had entered into repurchase or reverse sive federal deficits would mean that the Trea- repurchase agreements with the firm, found that sury is competing on a massive scale with the their transactions were frozen pending a decision rising private credit demands that are the natural by the court on how to deal with these transacaccompaniment to a reviving economy. This tions. The inability of these customers to use would inevitably have an effect on interest rates, either their funds or their securities weakened and pose the potential danger of inhibiting order- confidence in the repo market. The underlying ly economic recovery. legal issue was whether these transactions Such an outcome would not be a function of should be characterized as secured loans or as the current structure of the government securi- purchases and sales. ties market, however, but simply of the outsize The principal problem with the former characfederal deficits at a time when a much more terization is that if a repo is treated as a loan, the nearly balanced federal fiscal posture is called "lender" of funds (purchaser of securities) runs for. The government securities dealers that re- the risk that his funds could be tied up for a port to the Federal Reserve are in a position to protracted period of time if the counterparty withstand the possible strains that the deficit and were to enter bankruptcy proceedings before the resulting large public sector borrowing require- repurchase portion of the transaction were comments could generate in the market. The capital pleted. In addition to tying up his funds, this positions of these dealers have strengthened in could place the "lender" in the position of recent years. Despite the difficulties of predicting unsecured creditor with respect to any portion of market movements, most dealers have ably his loan not covered by the value of the securiweathered periods of market volatility, in part ties. Thus, if the securities were to decline in due to their increasingly sophisticated trading value, he could lose money in what he had techniques and ability to adapt to shifting market thought to be an essentially riskless transaction. environments. During periods of favorable mar- While I cannot define precisely the extent to ket conditions they have added significantly to which the government securities market would their capital base, which I believe is adequate to be impaired if the secured loan characterization the tasks ahead—provided, as always, that atten- of repos were to prevail, I am confident that tion is paid to market and credit risks. This does some deterioration would result. Indeed, there not mean, of course, that heavy Treasury deficits has already been some deterioration, which will not present problems for the overall econo- might well have gone further but for the anticipamy, but only that the dealers should be able to tion by many market participants that the legal perform their underwriting task. questions overhanging the status of repos will be favorably resolved. At the least, the market would lose a significant measure of liquidity as Repurchase Agreements some risk-averse participants withdrew or reduced their exposure; the interest rate paid on As I have noted, one major area of concern such transactions would rise to reflect the greater involving repurchase agreements—the inclusion risk and lessened willingness of temporary invesof accrued interest in repurchase accounting— tors to participate; and market participants with has largely been dealt with to our satisfaction. less-established track records would experience There is another issue involving "repos" that some loss of business and higher financing costs. has arisen in the past year, however, specifically I would foresee these factors hampering to some as an outgrowth of the Lombard-Wall bankrupt- degree the Treasury's ability to market its offercy. I refer to the question of how repurchase ings as well as increasing its financing costs. agreements may be treated in a bankruptcy pro- Repurchase agreements have emerged over ceeding. the years as a particularly useful tool in conduct- On August 12 last year, Lombard-Wall filed a ing Federal Reserve open market operations, voluntary bankruptcy petition under chapter 11 because they allow us to adjust reserves for short of the bankruptcy code. Most of its customers, periods of time. Thus, a diminution in the liquid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 353 ity of the repo market could also hamper the Up to now, our surveillance staff has looked at conduct of monetary policy. capital adequacy on a case-by-case basis. Re- In letters dated September 29, 1982, to Chair- porting dealers have from time to time been man Dole of the Subcommittee on Courts, Sen- cautioned when position risks have seemed exate Judiciary Committee, and January 20, 1983, cessive in relation to capital or when they have to Chairman Rodino of the House Judiciary financed certain transactions that have swollen Committee, Chairman Volcker recommended balance sheet totals excessively. In light of these that the Congress enact proposed legislation that increasing complexities and the desire to create a would exempt repos in government and federal model of capital adequacy that may be used also agency securities and certain other instruments by dealers and customers to evaluate their tradfrom the automatic stay provisions of the bank- ing counterparties, our feeling is that more speruptcy code, which would otherwise operate to cific and objective criteria must be developed prevent the orderly liquidation of these transac- that apply across the board. tions. I certainly endorse these recommenda- The surveillance staff has assigned this project tions and urge the Congress to move forward in top priority, and efforts are under way to develop this area. Earlier, because of our concern about objective criteria for measuring dealer capital potentially significant effects on the repo market, and its usage. Clearly the starting point is a and thus on the Federal Reserve's ability to concept of available or liquid capital. To measure conduct monetary policy, the Federal Reserve the adequacy of such capital an evaluation sys- Bank of New York had filed an amicus curiae tem should encompass several broad considerbrief in the Lombard-Wall case. We took the ations. First, a dealer's portfolio positions, both position that public policy would be better gross and net, must be measured and risk evaluserved if repurchase agreements in government ated for each maturity and type of instrument, securities were not characterized as secured taking account of acceptable hedging techniques loans. that may be employed to limit exposure. Second, the risk entailed in financing transactions, especially in "matched books" (offsetting repurchase Capital Adequacy and reverse repurchase agreements), should be analyzed as part of any such system. The surveil- The question of whether a particular dealer's lance staff is presently developing a variety of capital is adequate to support its level of opera- statistical measures and computer programs that tions is perhaps the single most basic issue of look toward systematic analysis of dealer posiconcern in our surveillance efforts. The three tions and risk exposure. firms that failed last year—Drysdale, Comark, We expect that, when developed, such objecand Lombard-Wall—were all thinly capitalized tive criteria of capital adequacy will be applied in in relation to their volume of business. Thus, the the first instance to the primary reporting dealimportance of capital adequacy guidelines lies ers. We would suggest and expect voluntary not only in monitoring the reporting dealers, but compliance with such standards of capital adealso in furnishing objective criteria for dealers quacy by the large or active nonreporting dealers and others to use in appraising their trading as well, on the assumption that clearing and counterparties. lending banks as well as customers would look Unfortunately, the evaluation of capital ade- for such compliance with generally accepted quacy on any basis that attempts to give weight standards of capital adequacy. to different circumstances in a fair and realistic It would, of course, be essential that any manner can be enormously complex. The vast evaluation system also continue to take into changes in market practices and trading vehicles account more subjective measures of risk such as in recent years, including the development of the type of customers, internal controls, and forward, future, and option transactions, as well credit and margin monitoring procedures, as well as the increasingly intricate use of repos and as management's overall business philosophy, reverse repos, have all complicated the task. capacity, and experience. For our part, I know of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 Federal Reserve Bulletin • May 1983 no way to assess these factors other than through actions. The organized futures exchanges typia case-by-case approach including the surveil- cally deal with this problem through a "mark to lance visits and individual firm contacts we have market" mechanism run by the exchange itself. been pursuing. Even a firm with apparently We are continuing to have discussions with the adequate or conservative capital could nonethe- dealers as we seek a generally acceptable soluless find itself in serious difficulty in a short tion that will deal with potential excessive expoperiod of time if it is poorly managed. Obviously, sure from when-issued trading. While we are a purely mechanical approach to the capital prepared to insist on a Federal Reserve solution adequacy question cannot guarantee the elimina- if necessary, we would much prefer—and intion of such problems. deed, expect—to reach a satisfactory agreement with the dealers on a voluntary basis, as they perceive that their own long-term interests are When-Issued Trading best served by adequate safeguards on whenissued trading. In the aftermath of the Drysdale situation, we discussed with dealers other areas in which future problems might arise. One area mentioned SHOULD THE FEDERAL RESERVE HAVE A frequently involves when-issued trading. This FORMAL REGULATORY ROLE? term refers to transactions in which the parties commit to trade a security that has not yet been The final question I would like to address this issued but will be issued in the near future, with afternoon is whether the surveillance role of the the transactions to be completed when the secur- Federal Reserve should be made formal and ity is issued. The volume of this type of forward expanded through a legislative mandate. At the trading has reached very high levels in recent present time, I continue to believe that the failure years. of a handful of nonreporting dealers does not in Under current market practice no money itself justify a move to a more encompassing changes hands until the securities are actually regulatory structure—any more than the absence issued and delivered. It is, therefore, possible for of such failures for a number of years before that a market participant to trade in very large vol- should have been cause for complacency. Cerume on a when-issued basis without employing tainly, these recent events indicated a need for any capital at all. Additionally, while prudent more active and forceful market monitoring and practices might lead an individual firm to limit its surveillance, and as my remarks here have indiexposure to a particular counterparty in this type cated we at the New York Reserve Bank have of trade, nothing in the present system would taken responsive actions along these lines. prevent a market participant from entering into a But in the final analysis, whether it is neceslarge number of such trades with many different sary or desirable to impose a more formal regulafirms—each of which would be unaware of the tory structure in the public interest is not a extent of the participant's total commitments. question that can be answered in the abstract or Because these transactions can remain open for by ideological preference, but only on the basis up to three weeks before the security is issued, of carefully evaluated experience. In my judgthe possibility exists that an adverse market ment, the principal consideration that should move could render such a trader unable to honor guide the Congress is an assessment of the his commitments when the security is issued. efficacy of any particular approach in containing At the present time, we are actively discussing the "shock waves" caused by occurrences such a variety of proposals regarding when-issued as these three failures—in other words, preventtrading with market participants, most of whom ing a single firm's failure, which in itself may not share our concern about this practice in varying be a serious or even an undesirable event, from degrees. The most comprehensive proposal becoming a systemic failure. In this context, I would set up a central facility to clear when- think the events of last year, and the Federal issued trading and to maintain margins on trans- Reserve's response to those events I alluded to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 355 earlier, show that the present structure affords us to start thinking at this time about direct regulathe means and the flexibility to act promptly and tion of a market that traditionally has functioned decisively through several avenues—the Open well without it would be counterproductive. Market Desk, the discount window, and, not The next question is whether the current selfleast in importance, the exercise of moral leader- regulatory structure should be made more formal ship as we did in the accrued interest question. than it has been, and whether the Federal Re- As a second consideration, the Congress might serve's oversight role should be made more also want to consider the likelihood that mem- explicit through the legislative process. On balbers of the public participating in this market ance, I conclude that those steps are not necesmight suffer losses resulting from the types of sary at this time. I think we should keep in mind abuses we have discussed—balanced against the that the losses incurred in last year's three failcosts associated with the establishment of a ures—unpleasant and undesirable though they formal regulatory structure. In considering the were—fell almost entirely on large and sophisticosts, I would include not just the "out-of- cated market participants, rather than on small pocket" expense, but also the potential costs individual investors. Logic and experience tell us that could result from hampering the market's that when significant market participants incur flexibility and responsiveness. losses of this type they are likely thereafter to To put the discussion in perspective, there are take the lead in promoting the necessary reforms essentially three general approaches to regulat- and insuring that the market's normal self-coring a market such as the government securities rective mechanisms come into play. I have some market. First, one could rely in the first instance concern that there is less incentive for them to do on the self-regulating mechanisms inherent in the so under a more formal structure. market itself, fortified by informal oversight by It is sometimes tempting, in the wake of marthe Federal Reserve. This, of course, is essen- ket disturbances such as those of last year, to tially the structure in effect at the present time. jump to the conclusion that more formal regula- Second, a more formalized and structured self- tion would have prevented the problem, but I regulatory organization could be established, seriously doubt that such a conclusion is warwith market participants setting and enforcing ranted at this time. This market has generally rules governing such matters as trading practices functioned quite well in a self-regulatory enviand capital adequacy, under the oversight of a ronment—and no degree of regulation can guargovernmental body with explicit authority to antee that accidents won't happen from time to enforce those rules. This is essentially the ap- time. The existence of the Securities Investor proach followed with respect to such organiza- Protection Corporation (SIPC) is, after all, a tacit tions as the New York Stock Exchange and the recognition that even those securities firms that National Association of Securities Dealers. operate in regulated markets with strict capital- Third, the governmental authority in question ratio requirements are not immune from failure. could directly regulate the market, imposing The same could be said of deposit insurance for rules pursuant to a legislative mandate and taking banks and thrift institutions. disciplinary action as necessary to enforce those So at this time I conclude that formal regularules. tory authority for the Federal Reserve is not the Based on the considerations I have outlined, I best way to go. But I would emphasize that our can see no justification for the third approach, minds remain open on this score. At times some direct regulation. In my judgment, it would be of the dealers appear to have permitted a meainconsistent with the objective sought, that of sure of complacency to return now that the preventing a recurrence of lapses of proper prac- immediate threat of market disruption is over. To tices or overcommitments in relation to capital the extent that this attitude becomes more widethat led to the failures of the three dealer firms spread and cannot be overcome by us in our last year. As you know, the Congress has moved surveillance role, I would have some concern affirmatively to reduce the level of regulation in that the momentum of self-regulatory reform banking, as it has in other industries, and I think could be lost as the events of last year recede Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 Federal Reserve Bulletin • May 1983 into the past. If this were to happen, the time ing, let me emphasize that we would have no may yet come when formal regulation imposed hesitation in recommending such an action if we by the Congress will be necessary. And in clos- were to reach that conclusion. • Statement by Paul A. Volcker, Chairman, Board flected irreversible technological as well as marof Governors of the Federal Reserve System, ket forces. The low cost and speed of data before the Committee on Banking, Housing, and transmission, communication, and personal Urban Affairs, U.S. Senate, April 26, 1983. transportation have vastly enlarged the market reach of banking and financial institutions. The We in the Federal Reserve welcome your initia- technical capabilities of providing a variety of tive in undertaking these hearings to review, essentially computerized financial services are from a broad perspective, developments in mar- broadly available. At the same time, the number kets for banking and other "financial services," and wealth of potential customers have multilaying the groundwork for future legislative ini- plied, and with this increase a demand for a tiatives. There can be no doubt that a reexamina- greater array of financial services and more sotion of the existing legislative framework has phistication in seeking out maximum returns. become urgent. Our financial system has been Diversification of investments beyond traditional evolving rapidly in recent years. Much of the deposit accounts, ready access to sources of change is a constructive response to technologi- borrowing power, and the flexibility to change cal or market pressures and the opportunities financial strategies rapidly and inexpensively made possible by deregulation. But it is also have become increasingly important. clear that the process has been rushing forward Several other factors affecting the financial with little conscious sense of some of the broad environment have also provided impetus for public interests at stake—the need to maintain a change. Experience with inflation, and with safe and stable financial system, to assure equita- sharply higher and fluctuating interest rates, has ble and competitive access to services by busi- seemed to put a premium on financial manipulanesses and consumers, and to preserve an effec- tion, shifting funds rapidly to take advantage of tive mechanism for transmitting the influence of changing yield relationships or perceived monetary, credit, and other policies to the econ- changes in the outlook. Institutions with embedomy. ded costs or fixed returns inherited from invest- Many of the laws intended to guide and shape ment decisions made earlier have often been the development of the financial system were disadvantaged relative to newer market interenacted under far different circumstances. They ests. In the new environment, regulatory remay or may not serve today's purposes, and in straints adding to costs (such as reserve requiresome instances may themselves be a source of ments on the established depository institutions) distortion, competitive imbalance, and weak- or impairing quick responses to perceived opporness. For all these reasons, I appreciate the tunities (such as interest rate ceilings) have opportunity to set forth some general consider- chafed more strongly and have distorted competations that we in the Federal Reserve feel are itive positions. At the same time, the decades relevant in assessing particular legislative pro- that have passed since any serious weaknesses in posals. At a later time, we would of course be the financial system became evident, a sense of prepared to set forth more specific suggestions. security among depositors rooted in part in the knowledge of a strong governmental "safety net" protecting the financial system, and expectations of a persisting inflationary trend have all seemed to encourage less caution and a willing- THE CURRENT SITUATION ness—deliberately or not—for managers of financial institutions to undertake greater leverage The accelerated pace of change in the structure and risk in the search for higher returns. of our financial system in recent years has re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 357 In combination, the technological and eco- Whatever the merits of the process of change nomic forces at work have led to a search for in responding to felt needs—and they are considnew financial services and for new ways to erable—certain problems, actual and potential, package those services, greater competition be- have plainly emerged. Institutions need to retween traditional depository institutions and oth- spond to market incentives, and as regulators er providers or "packagers" of financial ser- and legislators concerned with the public intervices, and a blurring in many of the traditional est, our task is not to thwart change or block distinctions among depository institutions them- responses to new needs. But we also want to see selves. change channeled along constructive lines, sensi- One reflection has been the rapid growth of tive to abiding and valid concerns of public such relatively new institutions as money market policy. One of those basic concerns is the safety funds and cash management accounts. Increas- and soundness of our payments system and the ing efforts are being made, by means of mergers financial system generally. Matters of competiand otherwise, by securities firms, insurance tive equity, both for the providers and consumcompanies, and others to exploit, when possible, ers of financial services, need to be addressed. perceived "loopholes" in existing law to cross The consistency of emerging financial patterns traditional industry lines into banking and the with the needs of monetary and credit policy payments system. Banks and other depository must be considered. And historical concerns institutions have responded by bidding more over concentration of financial resources and vigorously for consumer funds and seeking, suc- conflicts of interest in the provision of financial cessfully, to ease regulatory restrictions. They services should be reexamined for their applicahave, to the extent permitted by law, moved to bility in the light of today's circumstances. acquire securities brokers and to develop rela- Unfortunately, the interaction between the tionships with mutual funds. Moreover, some current legal and regulatory structure and market nonfinancial firms—retailers or industrial pressures provides no assurance that these confirms—have sought to enter financial markets, cerns are adequately addressed. Instead, in some further eroding the traditional distinction in the ways it has channeled pressures for change in United States between "banking," broadly de- directions that have had unintended and adverse fined, and commerce. effects. Deposit-like instruments and payments Worth noting is that, after decades of stability services have sprung up in significant volume in the relative position of commercial banks in outside the framework of governmentally proour financial system, the experience of more tected and supervised depository institutions. recent years has suggested some erosion in that The depository institutions themselves have toposition. While that may well prove temporary, day a potentially more volatile structure of liabilthe sense of greater competitive pressures, the ities and smaller capital cushions than in the blurring of distinctions between banks and "non- past. With the enlarged powers of thrift institubanks," and the frustration about an unsettled tions, we now have competing "banking" sysand partly outmoded regulatory framework have tems with different legal and regulatory philosocertainly contributed to uncertainty about the phies, providing incentives to exploit the most future of depository institutions. Concerns of the "liberal" (or "lax") provisions. Anomalies in thrift institutions have been even more pressing. the structure of our current regulatory system— In the past few years, thrift institutions carrying and challenges to long-standing regulatory interlarge portfolios of mortgages acquired at lower pretations—are eroding traditional constraints interest rates have been under particularly strong on combining deposit-taking with other activiearnings pressure and their capital positions have ties, in the process threatening to undermine sharply eroded. With future prospects seemingly whatever public interest may remain in those in jeopardy, the whole orientation of the industry constraints. is in flux, responding to immediate concerns as The new vocabulary springing up of "nonbank much as to any carefully conceived vision of banks," "thrift banks," money market fund what role these institutions should play in the "checks"—seemingly inconsistent on their future. face—reflect the blurring of traditional institu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 Federal Reserve Bulletin • May 1983 tional lines and functions. Some of it is healthy, ation of a desirable evolution of the financial and some is not. What is needed is a broad look structure for the nation. at the whole, with a period of public and legisla- The federal concern in this regard extends tive debate concerning the desirable ends and beyond the fact that financial markets are inmeans, followed by a reshaping of the existing creasingly national in scope and the institutional legislative framework. setting has national implications. State-chartered depository institutions have federal support through deposit insurance and access to the discount window, reflecting the interdependence POSSIBLE INTERIM STEPS among banks and the national concern for their stability. As that process takes place, we cannot expect The Federal Reserve, in administering the the market forces to stand still. But I believe we Bank Holding Company Act, has for some years can and should deal, for an interim period, with maintained a policy of permitting state-chartered some of the most obvious distortions and loop- bank affiliates of bank holding companies to holes in the present regulatory structure that engage in any activity such a bank is permitted to tend to channel change in specific forms that may engage in under its state charter. This policy has in some instances be contrary to a desirable been premised upon the view that a certain longer-term evolution. To that end, the Federal degree of experimentation and difference in ap- Reserve has broadened the definition of "com- proach among the states is a legitimate and mercial lending" to forestall, or limit, avoidance desirable aspect of our dual banking system and of the basic purposes of the Bank Holding Com- that differences in powers allowed by states pany Act. To the same end, I welcome the would be acceptable to the extent that they Comptroller's moratorium on new chartering of would not dominate established congressional nonbank banks so that the Congress has time to policy. In view of current developments, I beaddress the underlying issues. But clearly these lieve that policy should be reviewed to consider measures are not sufficient to maintain even a whether the result is to undercut the federal limited "status quo," as indicated by the backlog standards set forth in the Bank Holding Compaof pending applications and a subsequent an- ny Act, particularly when the wider powers nouncement of an intended combination of a might clearly be exercised largely beyond the state-chartered bank and an insurance company borders of the state providing the authority. and proposed combinations of thrift institutions and securities houses. Therefore, I would suggest that the Congress consider limiting combina- AN APPROACH TOWARD THE REGULATION tions of nonbank banks (and thrifts) with nonde- OF DEPOSITORY INSTITUTIONS pository institutions for a strictly limited period of time so that it can decide on an appropriate In conducting a reexamination of the regulatory policy approach rather than be faced with a fait framework more generally, a number of goals accompli. should be kept in mind: enhancing competition; A similar, and possibly more serious, reorder- promoting efficiency in the allocation of capital ing of the national financial structure, without and credit; assuring protection of consumers, congressional review and determination, is im- depositors, investors, and others against displicit in the recent actions and proposals in a crimination, conflicts of interest, and other ponumber of states to allow the banks or thrift tential abuses; and encouraging consistency and institutions they charter to engage across the equity in the treatment of competing financial country in a much wider range of financial and institutions. It is important to keep in mind that nonfinancial activities than banks or thrifts char- some of these goals will sometimes be best tered by federal authorities. The motivation of served by less regulation rather than more. states in large part, appears to be a desire to Another consideration that has historically compete for jobs, rather than careful consider- been of special importance in public policy to- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 359 ward banks and other depository institutions is need not be frozen in an historical pattern, and plain, old-fashioned concern for safety and should be regularly reviewed in the light of soundness. After decades in which the unfortu- economic changes and the desirability of mainnate experience of the 1920s and 1930s has taining a reasonable competitive balance. receded in memory, there is a tendency to ques- 4. The central bank has an inherent concern tion the value of prudential concerns. But, as we with the evolving financial structure. The core approach regulatory reform, the old saying about responsibilities of a central bank for economic the relative values of an ounce of prevention and and financial stability entail concern over the a pound of cure is appropriate. Concerns recent- strength and stability of the banking system and ly expressed in this committee and elsewhere the consistency of the institutional structure with about international lending, for example, amply the needs of monetary policy. Those concerns demonstrate that the best time to think through are appropriately and necessarily reflected in an appropriate approaches is before a problem ongoing presence in the regulation and superviarises. sion of the banking system. Against that general background, the main lines of my own thinking about our approach toward the regulation of depository institutions BANKS AND THEIR REGULATION can be summarized as follows: 1. Banks perform a critical role in the finan- The public concern with the safety and soundcial system and in the economy. Banking institu- ness of depository institutions has historically tions, as operators of the payments system, as been related to the fact that these institutions custodians for the bulk of the liquid savings in have been custodians of the bulk of the liquid the economy, as essential suppliers of credit, and savings of the country, a situation that still holds. as the link between monetary policy and the That concern is interrelated with another pervaeconomy, have a unique function in our econo- sive public interest—protection of the payments my. system. The individual components of the bank- 2. The critical role of banks implies particular ing and payments system are, to a large extent, governmental concerns. Because of their role, mutually dependent; adverse developments in the deposit liabilities of banks, and the stability one institution, particularly of substantial size, of depository institutions generally, are protect- can dramatically and suddenly affect other unreed to a degree by a governmental "safety net." lated institutions, some of which may not even The provision of that safety net requires and have a business relationship with the institution justifies a certain amount of prudential regulation in difficulty. While secondary and tertiary effects and supervision to protect the government and are, of course, present in some degree in the the public interest. The precise terms of this failure of any business firm, seldom will the "compact"—to assure efficiency, competitive effects be so potentially contagious or so disrupbalance, and sensitivity to new needs—should be tive as when the stability of the banking system reexamined periodically. or the payments mechanism is at stake. Then, 3. A bank cannot be wholly insulated from its serious implications for overall output, employaffiliates. In the nature of things, parts of an ment, and prices—indeed, for the entire fabric of organization under common management and, in the economy—are apparent. public perception, related to each other will, to The first and most important line of defense is some degree, be affected by the fortunes of other the interest of banking institutions themselves in important parts. Consequently, concern about maintaining the confidence of their customers. the activities undertaken within a bank holding But long ago, in establishing the Federal Reserve company or otherwise within a consumer man- System, the Federal Deposit Insurance Corporaagement structure is a natural and legitimate tion, and the Federal Savings and Loan Insurextension of interest in the safety and soundness ance Corporation, the government determined of the bank itself. These activities may not that normal market incentives and protections require the same degree of supervision as a bank, needed to be supplemented by an official support Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 Federal Reserve Bulletin • May 1983 apparatus. That support apparatus—importantly seeking an overall balance of protections and reflected in access to the discount window at the restrictions for banks, we can, and should, avoid Federal Reserve and to deposit insurance—pro- competitive disadvantage to the depository instivides advantages in the competition for the pub- tutions themselves; to do otherwise is to erode lic's funds. But there are offsetting costs as well the vitality and strength of the very sector of the in, for instance, reserve requirements and insur- financial system deemed of special importance. ance premiums. To the extent that other institutions operating More broadly, the protection provided on the outside the "protected" framework nonetheless liability side of the balance sheet, in tempering tend to "take over" the essential functions of the discipline of the marketplace, can potentially banks, there are three alternatives: we can enchange attitudes and behavior over time with compass those institutions within the framework respect to risk-taking. Consequently, the logical of banking supervision in some respects (such as extension of the public concern with the stability reserve requirements on transactions balances); of the banking system is a continuing interest in we can, if consistent with other objectives, reavoiding excessive risk-taking, limiting the po- lieve the regulatory burden (such as by paying tential for contagious failures or drains upon the interest on required reserves); or we can confine public "backstop" facilities. Those concerns are the performance of certain essential banking reflected in a number of restrictions and regula- functions (such as third-party payments and ditions on how banks (or thrifts) can do business, rect access to the clearing mechanism) to banks and the operations and assets of those institu- alone. tions are examined periodically as part of a continuing supervisory process. The practical and ongoing issue in this area, it BANK HOLDING COMPANY REGULATION seems to me, is not to revolutionize the basic approach, but to achieve an appropriate bal- In the framework of existing law and policy, ance—balance between desirable risk-taking and concern with the activities of banking organizasafety, and balance among competing depository tions has not stopped with the bank itself. The and nondepository institutions. These consider- restrictions are importantly rooted in prudential ations, for instance, are immediately relevant to considerations; experience strongly suggests the the discussion by the committee of the appropri- difficulty of insulating a bank from the problems ate treatment of foreign lending and approaches of a company affiliated with a bank through a toward assuring the capital adequacy of banks holding company. To be sure, the fortunes of the and thrift institutions. bank and its affiliates can be (and are) separated One important area that is receiving attention to a degree by restrictions on the transactions is the appropriate structure of deposit insurance. among them; section 23A of the Federal Reserve The various insurance agencies have submitted Act already contains a number of rules pertaining reports to the Congress suggesting ways to modi- to such transactions. But I doubt the insulation fy the current insurance system to achieve an can ever be made so complete—at least without appropriate balance of market and supervisory defeating the business purpose in the affiliation— discipline; I have not reviewed those reports and as to rely on those rules alone. The holding cannot comment on them specifically. But I do companies themselves, the securities markets, welcome the process the Congress has set in and the general public look upon these organizamotion to consider the public policy questions in tions as consolidated units. Our experience is this area, recognizing that deposit insurance has that difficulties in a nonbank affiliate can affect become such a significant element in the support the price and availability of funds to the bank (or apparatus for depository institutions that subvice versa), even if transactions between the two stantial change requires careful assessment of are controlled. The public realizes that a holding the possible consequences. company with a troubled nondeposit subsidiary One corollary of the need to protect the integ- cannot be a source of strength to its depositrity of the payments system deserves mention. In taking affiliates and will be under pressure to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 361 draw funds from the bank, directly or indirectly, not be solely a matter of market incentives, and to support other troubled operations. Moreover, some degree of supervisory oversight over the while financial flows among affiliates can be activities of the holding company as a whole will circumscribed by regulation, management atten- remain important. The traditional presumption of tion and expertise cannot be; and the more some separation of banks from businesses endiverse the area of activity, the less attention the gaged in a general range of commercial and bank itself may receive at the top level. industrial activities, and vice versa, still seems to Other concerns—potential conflicts of interest me a reasonable starting point in approaching and concentration of resources—can also be particular questions. That separation is, at the addressed by law or regulation. But again, insu- margin, arbitrary, but in a broad way it reflects lation is not likely to be complete. continuing concerns about risk, conflicts of inter- At the same time, segregating certain activities est between the bank as owner of a nonfinancial of a bank holding company outside the bank firm and as creditor, and the implications of itself may provide certain advantages. While, excessive concentration of economic power, esfrom a safety and soundness standpoint, the pecially given the central place of banks in our entities cannot be assumed to be entirely insulat- economy. Moreover, to the degree that affiliation ed from each other, segregation may well make it with a bank implies the need for some regulatory easier to assure consistency and equity in the or supervisory oversight, practical and desirable application of those regulations appropriate to limitations on the reach of such regulation into particular activities conducted in either the bank industrial and commercial activities imply some or an affiliate. That consideration, for instance, limitation on the scope of bank holding company could well be relevant in any extension of author- affiliations. ity to bank holding companies to engage in Within this general framework, the precise line securities underwriting, in mutual funds, and in dividing what ought to be permissible for banking insurance activities. organizations and what should be proscribed Regulations specific to such activities may not does need reexamination in the light of current reflect certain of the prudential concerns of bank market conditions, changes in technology, consupervision; to that degree, nonbanking activi- sumer needs, and the regulatory and economic ties conducted by banking organizations may environment. Some activities now denied banks have to conform to some rules that would not be would seem natural extensions of what these necessary or appropriate for nonbanking firms. institutions currently do, involving little addi- But there may also be advantages in combining tional risk or new conflicts of interest, and potencertain activities with a banking license; when tially yielding significant benefits to consumers bank holding companies engage in nonbanking in the form of increased convenience and lower activities we should seek to avoid competitive costs. For some time, for instance, the Federal advantages arising from the ability to draw upon Reserve has suggested that banking organizathe implicit government support provided by the tions be allowed to underwrite municipal revebanking organization as a whole. One consider- nue bonds, establish commingled investment acation in this regard is the capitalization of the counts, and distribute mutual funds. Certain nonbanking activity; a higher degree of leverage brokerage activities have already been approved in banking should not automatically extend to within existing law, as have a wide range of data nonbanking activities. Indeed, adequate capital- processing services. ization of a bank holding company as a whole, Other activities seem ripe for consideration, taking account of the particular nature of the but need a public airing of views and congresnonbanking activities, is important to the safety sional consideration. One general category and soundness of the bank. would be further extension of brokerage activi- In the end, the appropriate range of activities ties related to the financial needs of bank cusfor a bank holding company should remain, in tomers, including sales of a variety of real estate, my judgment, a matter for determination by a insurance, and travel products. Some kinds of balance of public policy considerations; it should insurance underwriting, beyond current limita- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 Federal Reserve Bulletin • May 1983 tions to credit-related insurance, have been would seem to dictate that the special privileges urged by some. and restrictions of banks and thrifts be brought Other activities that have been discussed into more coherent relationship. raised considerably greater questions in my mind The significance goes beyond equity considerbecause of factors of risk or conflicts of interest ations. In today's world, the kind of considerthat could not be contained without the most ation I have just reviewed with respect to the elaborate and self-defeating kinds of regulation. powers of banking organizations, flowing basi- Corporate securities underwriting, real estate cally from banks' participation in the payments development, and, more generally, significant mechanism, cannot be valid for commercial equity positions in unrelated nonfinancial activi- banks alone; limitations on bank holding compaties fall into that category. nies could not be effective to the extent thrift In any event, to the extent that regulation is instititutions, with the corresponding banking needed, the goal should be to minimize the costs powers, could simply substitute as a vehicle for and burdens of regulation consistent with the combining various activities. I recognize there public interest. For example, experience has are difficult questions posed by the firms that convinced us that the present statutory require- already have operations on both sides of the line ment for public hearing in the Bank Holding between commerce and thrift banking, but we Company Act sometimes leads to unnecessary will need to find some way to resolve these delays in the processing of applications. This questions and establish a firmer policy for the requirement could be modified to relax the re- future if we are to bring about a rational structure quirement for public hearing, while retaining in this regard. The same consideration bears discretion for the Federal Reserve Board to upon a number of other issues—particularly conduct informal hearings in cases when public branching and interstate powers—when the difcomment is warranted. This change alone would ferences between regulatory treatment of banks reduce significantly the time required to process and thrift institutions have become increasingly some applications filed under the provisions of anomalous. the Bank Holding Company Act. Also, the statu- The implication is not that all thrift institutions tory requirements for approval of nonbanking and their holding companies must be regulated in activities could be modified to place greater all ways like commercial banking organizations. emphasis on safety and soundness and less em- There may well be ways of distinguishing among phasis on the finding of net benefits, and provi- institutions, depending on the scope and extent sion could be made for the Board to follow more of their actual activities, which would allow us to expedited procedures in the processing of appli- achieve necessary functional consistency and cations. assure the integrity of our policy intent, while retaining the advantages of a degree of specialization among financial institutions. As I under- CONSISTENCY IN BANK-THRIFT stand it, the Congress had such concerns in mind REGULATIONS in linking the more liberal treatment of unitary savings and loan holding companies in important The observation that thrift institutions have es- respects to satisfying a certain asset test originalsentially become bank-like institutions is indis- ly developed for tax purposes. However, that putable with respect to the powers they are asset test—the proportion of an institution's allowed to exercise; it is increasingly accurate portfolio in real estate mortgages, government with respect to the powers they do exercise. But securities, and certain other "qualified" assets— questions are posed not just by the fact that seems to me inadequate for the purpose. The powers of thrift institutions have been expanded interest of investment companies and other nonto matters previously the province of commercial banking firms in acquiring savings and loan assobanks alone; in important instances thrift powers ciations suggests that such an asset limitation extend well beyond those available to banks. would not deter substantial nonbank participa- Considerations of competitive equity alone tion in deposit-taking and payments services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 363 FEDERAL-STATE RELATIONS them at lower cost and in a more convenient manner. Indeed, broadened geographic scope For more than a century this country has main- can even serve to reduce risk to the banks tained a dual system for the regulation and themselves, and perhaps reduce pressures to supervision of banking. On the whole, this dual extend their franchise to less suitable areas of banking system has played a useful and construc- activity. I recognize the controversies and sensitive role in encouraging innovation in the finan- tivities surrounding the McFadden Act and cial regulatory environment and in helping to Douglas amendment. I also know a number of accommodate local differences in the needs of approaches could be taken in easing or removing banking organizations and their customers. those restrictions; a period of transition may still The system has worked as well as it has be useful. Indeed, I am encouraged that some because to a significant degree the goals and states have already chosen to take the lead. But I techniques of regulation were commonly shared sense the time for congressional review of the and the divergences between federal and state issue is here. treatment were kept within tolerable bounds. As I mentioned earlier, this comity appears to be breaking down, as states consider vast expan- REG ULA TOR Y STR UCTURE sions of powers for banks and thrifts that go far beyond standards allowed by federal law and yet The rapid evolution of the financial system inevstill rely on federal protections for their state- itably raises new questions about how the govchartered institutions. The issue will need to be ernment's role in regulation should be organized addressed by the Congress as to whether it is and implemented. As you know, this subject is properly a federal prerogative to establish the being reviewed by a task group under the leaderouter bounds within which the dual banking ship of Vice President Bush, on which I particisystem may continue to be a useful and construc- pate. Without going into any detail on the pros tive force. and cons of the many different ways the regula- The geographic scope of depository institu- tory agencies could be organized, I do want to tions has long been a key question of federal- comment briefly on the implications, as I see state relations. The proliferation of nonbank af- them, for carrying out the basic responsibilities filiates of bank holding companies operating of the central bank for the strength and stability across state lines, the loan production and Edge of the financial system. Act offices, the integrated national markets for The argument has sometimes been put forward money and credit at the wholesale level, the that supervision and regulation of the banking current action of some states themselves to per- system can be divorced from monetary policy, mit entry of out-of-state banking organizations, and that the Federal Reserve ought to stick to the the broadened power of thrift institutions able to latter. That argument is premised on a view of operate interstate, and the credit card itself have monetary policy and inherent Federal Reserve by now led to interstate banking de facto for responsibilities that seems to me far too narrow; most banking services. But, as a general matter, pressed to its logical conclusion, both monetary we still prohibit on an interstate basis that por- policy and supervision would be gravely weaktion of retail banking and some other services ened. The basic objective of the Federal Rethat require a brick and mortar presence, and we serve—and the principal reason for its very force other activities into "unnatural," and less founding—is to contribute to a stable and efficient, channels. smoothly functioning financial system, one that I believe your deliberations will need to con- is capable of supporting and responding to the sider whether the time has come to rationalize financial requirements of the nation under a this situation. Appropriately structured, banking variety of circumstances. Out of those concerns, across state lines can increase competition for the Federal Reserve Act explicitly provided the the delivery of financial services and by so doing Federal Reserve with both an operational role in should enable users of these services to obtain the payments mechanism and wide supervisory Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 Federal Reserve Bulletin • May 1983 authority, and I believe those concerns remain properly and understandably, look to the Federal valid today. Reserve for advice and, when necessary and Over the past 70 years of the Federal Re- possible within the framework of our statutes, serve's existence, the specifically monetary poli- for action in dealing with points of immediate cy function—explicit attention to control of the financial strain and crisis. But those responsibiltotal supply of money and credit and stabilization ities seem to me to entail a continuing responsipolicy—has been developed and refined. But bility for participation in the regulatory strucmonetary and credit policy works through the ture, "hands on" supervisory capability, and a banking and payments system and the individual strong voice in the evolution of the banking institutions within it; in the last analysis mone- system. tary policy cannot be successful independent of Moreover, monetary policy, as more conventhe strength and resiliency of that banking sys- tionally defined, needs to be conditioned by tem. Conversely, history is filled with examples circumstances as they exist in the financial of a breakdown in the banking system overrid- world. A financial system that is too fragile, for ing, in its adverse economic consequences, the example, might constrain our flexibility to pureffects of more general policy instruments. sue certain goals—most especially that of com- The interrelationships are not theoretical; they bating inflation. More general tendencies in the are embedded in our daily operating experience. financial system—such as the shift toward in- A key "monetary policy" instrument is the ad- creasingly liquid assets in recent years—can afministration of the discount window, through fect the behavior of money and other policy which we advance funds to meet temporary indicators that we rely upon in conducting moneliquidity needs and can act, if necessary, to meet tary policy, and in some cases could have destaour responsibilities as lender of last resort to the bilizing effects on financial markets and institufinancial system and to the economy as a whole. tions. By its nature, provision of funds through the None of this dictates a particular regulatory discount window presumes an intimate aware- structure; indeed, there are areas of regulation or ness of the circumstances of the particular bor- supervision of only peripheral interest to our rowers, skill and experience in financial analysis, central responsibilities. But we do feel that a and a degree of supervisory authority. continuing role in regulation and supervision is More broadly, the Congress and others, quite an inherent part of effective central banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

365 Announcements PRICING FEDERAL RESERVE FLOAT institution closes as permitted by state law—and nonstandard holidays—days on which the paying The Federal Reserve Board has approved proce- bank is closed because of a state or local holiday. dures to eliminate or price the remaining catego- In response to comment received, the Board ries of Federal Reserve check float. This type of did not adopt the proposed amendment at this float is the value of checks for which the Federal time. As an alternative, the Board decided to Reserve has given credit to the institution that eliminate or price float arising from midweek deposited the checks for collection, but for closings and nonstandard holidays, beginning in which the Federal Reserve has not yet received October 1983, by giving Reserve Banks the folpayment. lowing three options to deal with such float: The Board acted under the Monetary Control 1. A Reserve Bank could modify its availabil- Act of 1980, which requires the System to reduce ity schedule for local depositors so that credit for and price remaining Federal Reserve float. The checks drawn on closed institutions would be Board's approval of these procedures is the deferred an additional day. latest in a series of actions to fulfill these require- 2. A Reserve Bank could modify its current ments. practice of posting funds received for the ac- In November 1982, the Board requested public count of the institution on the day the institution comment on a proposal to charge depository is closed. institutions for large ($50,000 or more) interterri- 3. A Reserve Bank could price all or any retory checks as a result of a wire notification from maining float arising from midweek closings or the returning Federal Reserve Bank when such a nonstandard holidays by including the value of check is returned. Interterritory returned checks such float in the cost of the Federal Reserve's cause Federal Reserve float because Reserve check collection service. Banks are unable to debit immediately the original depositing institution's account for the re- The Board also had requested comment in turned checks. November 1982 on proposals to price intraterri- After reviewing comment received, the Board tory transportation float and the other remaining decided not to adopt the proposal. As suggested categories of check float. The Board has apby commenters, the Board deferred credit for proved the proposals to price these categories of interterritory returned items for one day. This check float by adding the cost of such float to the one-day deferral of credit will eliminate $130 cost of the check collection service. The addition million of interterritory return-item float. This of these costs to the costs of the check collection procedure will be implemented in August 1983 to service will begin in October 1983. provide Reserve Banks and depository institu- With the implementation of these procedures, tions sufficient time to make necessary opera- all Federal Reserve check float arising from the tional changes. provision of check collection services to deposi- In April 1982, the Board proposed an amend- tory institutions will be eliminated or priced. ment to Regulation J (Collection of Checks and Other Items and Wire Transfers of Funds) to require paying banks to pay for checks delivered INTERIM FEE SCHEDULE or made available to them on days the paying banks are closed and on which the Reserve Bank The Federal Reserve Board has approved an is open. Such days consist of midweek closing interim fee schedule to be used in a pilot program days—regular weekdays on which a depository for making corporate trade payments by elec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin • May 1983 tronic means through automated clearinghouses institutions. The action, taken after consider- (ACHs). ation of comment received on a proposal pub- Currently, ACH payments are made chiefly in lished in March, is effective April 28, 1983. connection with consumer transaction deposits. The Board's action implements provisions of A study carried out by the National Automated the Garn-St Germain Depository Institutions Clearing House Association indicated that cor- Act of 1982 directing the Board to reduce the porations are interested in making trade pay- administrative burden associated with deposit ments through ACHs. The use of the ACH for reporting at commercial banks and thrift institucorporate trade payments is scheduled to begin tions with $2.1 million or less in total reservable during June 1983, with a limited number of liabilities. In implementing the act the Board is to originators and recipients. It is anticipated that take into account its responsibility for insuring the pilot will be completed by the end of 1983 at compliance with the reserve requirement proviwhich time the use of the ACH for corporate sions of Regulation D and for collecting data trade payments will be available to any company necessary for monitoring and controlling the that wishes to make use of the service. monetary and credit aggregates. The Board approved the following interim fee Currently, small depository institutions either schedule for the pilot program, effective June 2, are excused from reporting requirements or are 1983: required to file a report of at least 22 items weekly or quarterly. The principal features of the amendments fol- Item Cents low: Intra-ACH Debits originated 4.5 Credits received 4.5 Each addenda record after the first 15 1 1. Institutions (other than U.S. branches and agencies of foreign banks or Edge and Agreement corpora- Inter-ACH tions) with $2.1 million or less in reservable liabilities Debits originated 7.5 Credits received 7.5 (fully exempt institutions) will be subject to a three-tier Each addenda record after the first 15 2 reporting system, based on their total deposits: Avail- New York intra-ACH able data will be used to estimate deposits at fully Debits originated 1.5 exempt institutions with less than $2 million in total Credits received 1.5 deposits; fully exempt institutions with total deposits New York inter-ACH of at least $2 million but less than $15 million will file Debits originated 4.5 an annual two-item report (FR 2910a) covering one Credits received 4.5 Each addenda record after the first 15 1 day each June; fully exempt institutions with $15 million or more in total deposits will file a condensed six-item report (FR 2910q) for the same week each quarter. PROPOSED ACTION This system in essence will keep the preponderance of institutions previously deferred from reserve and reporting requirements free of reporting requirements, The Federal Reserve Board has proposed for will convert current quarterly reporters that become public comment certain criteria for adding deposfully exempt from reserve requirements into annual itory institutions to the Federal Reserve check reporters, and will convert weekly reporters that becollection services as part of a program to accel- come fully exempt from reserve requirements into erate the collection of checks. Comments must quarterly reporters. The number of items reported by the latter two groups also will be substantially rebe received by June 17, 1983. duced. 2. All nonexempt quarterly respondents will begin reporting on the same schedule as those fully exempt REGULATION D: AMENDMENTS institutions that will file the new, reduced quarterly report. At present, institutions that report quarterly do so on a staggered basis, one-third each month. The Federal Reserve Board has approved 3. U.S. branches and agencies of foreign banks amendments to its Regulation D (Reserve Reand Edge and Agreement corporations will continue to quirements of Depository Institutions) designed file a weekly report of transaction accounts, other to reduce the deposit-reporting burden for small deposits, and vault cash (FR 2900) and the weekly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 367 report of certain Eurocurrency transactions (FR 2950 about the number of consumers who are entering and FR 2951), even if the family of related institutions into such agreements without the benefit of adehas less than $2.1 million in reservable liabilities. quate cost disclosures. The Board welcomes public comment on this proposal. PROPOSED LEGISLATION The Federal Reserve Board sent to the Congress CHANGE IN BOARD STAFF on April 18, 1983, proposed legislation for simplifying the Consumer Leasing Act. The act, passed The Board has announced the resignation of Joe in 1976, applies to personal property leased for M. Cleaver, Assistant Director, Division of Remore than four months for personal, family, or search and Statistics, effective May 20, 1983. household use. The Board said it is proposing simplification of the act to reduce the number and complexity of SYSTEM MEMBERSHIP: the disclosures, thereby lessening the burden of ADMISSION OF STATE BANKS compliance on creditors and highlighting important information for consumers. The following banks were admitted to member- In addition, the draft legislation adds coverage ship in the Federal Reserve System during the of rental-purchase agreements. These agree- period April 11 through May 10, 1983: ments are not presently covered by either the Arizona Consumer Leasing Act or the Truth in Lending Phoenix Western Security Bank Act. Under a rental-purchase agreement, the Colorado consumer rents the property (generally a televi- Meeker Peoples State Bank sion or other home appliance) for a term of one Florida week or one month. The rental is automatically Naples Collier Bank renewed with each subsequent payment, and Illinois after a certain number of payments the consumer Schaumburg Northern Trust Bank/ can become the owner of the property for little or Woodfield no additional money. Texas The draft legislation proposes coverage of Gainesville North Texas Bank and Trust these agreements because of public concern Odessa Odessa Industrial Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

369 Legal Developments AMENDMENTS TO REGULATION D (d) Computation of required reserves for institutions that report on a quarterly basis. For a depository The Board of Governors adopted in final form amend- institution that is permitted to report quarterly, rements to Regulation D—Reserve Requirements of quired reserves are computed on the basis of the Depository Institutions (12 C.F.R. Part 204) to reduce depository institution's daily average deposit balances substantially the amount of reporting required from during a seven-day computation period that begins on most depository institutions that have total reservable the third Thursday of March, June, September, and liabilities of $2.1 million or less. Such institutions December. In determining the reserve balance that generally will be required to submit either a six item such a depository institution is required to maintain report each calendar quarter, a two item report once with the Federal Reserve, the average daily vault cash each year, or no report at all, depending upon their held during the computation period is deducted from total deposit levels. the amount of the institution's required reserves. The Effective April 28, 1983, sections 204.3 of Regula- reserve balance that is required to be maintained with tion D is amended as set forth below: the Federal Reserve shall be maintained during a corresponding period that begins on the fourth Thurs- Part 204—Reserves of Depository Institutions day following the end of the institution's computation period and ends on the third Wednesday after the close 1. By amending section 204.3(c) by removing the first of the institution's next computation period. Such sentence, "Computation of required reserves.", and reserve balance shall be maintained in the amount inserting in its place, "Computation of required re- required on a daily average basis during each week of serves for institutions that report on a weekly basis."; the quarterly reserve maintenance period. and by revising paragraphs (a) and (d) as set forth below. 2. The Board also amends section 204.3(c), published Section 204.3—Computation and Maintenance at 47 FR 44707, October 12, 1982, to become effective February 2, 1984, by removing the first sentence, (a) Maintenance of required reserves. A depository "Computation of required reserves.", and inserting in institution, a U.S. branch or agency of a foreign bank, its place, "Computation of required reserves for instiand an Edge or Agreement Corporation shall maintain tutions that report on a weekly basis."; and by revisreserves against its deposits and Eurocurrency liabil- ing section 204.3(d), also published at 47 FR 44707, to ities in accordance with the procedures prescribed in become effective February 2, 1984, as set forth below: this section and § 204.4 and the ratios prescribed in § 204.9. Penalties shall be assessed for deficiencies in (d) Computation of required reserves for institutions required reserves in accordance with the provisions of that report on a quarterly basis. For a depository § 204.7. Every depository institution, U.S. branch or institution that is permitted to report quarterly, reagency of a foreign bank, and Edge or Agreement quired reserves are computed on the basis of the Corporation shall file reports of deposits in accordance depository institution's daily average deposit balances with the instructions of the Board, based on the level during a seven-day computation period that begins on of its deposits and reservable liabilities consistent with the third Tuesday of March, June, September, and the Board's need for data to carry out its responsibility December. In determining the reserve balance that to monitor and control monetary and credit aggre- such a depository institution is required to maintain gates. For purposes of this part, the obligations of a with the Federal Reserve, the daily average vault cash majority owned (50% or more) U.S. subsidiary (except held during the computation period is deducted from an Edge or Agreement Corporation) of a depository the amount of the institution's required reserves. The institution shall be regarded as obligations of the reserve balance that is required to be maintained with parent depository institution. the Federal Reserve shall be maintained during a ^ * * * corresponding period that begins on the fourth Thursday following the end of the institution's computation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin • May 1983 period and ends on the fourth Wednesday after the assessed against the account during the statement close of the institution's next computation period. period for electronic fund transfers or the right to make such transfers, or for account maintenance. AMENDMENTS TO REGULATION E The Board of Governors has adopted technical amend- Section 205.11—Procedures for Resolving ments to Regulation E (Electronic Fund Transfers) Errors 12 C.F.R. Part 205 to conform certain provisions that refer to Regulation Z (Truth in Lending). These changes reflect redesignated sections in revised Regu- (i) Relation to Truth in Lending. Where an electronic lation Z. fund transfer also involves an extension of credit Effective April 1, 1983, sections 205.5, 205.6, 205.9 under an agreement between a consumer and a finanand 205.11 are amended as set forth below. cial institution to extend credit when the consumer's account is overdrawn or to maintain a specified minimum balance in the consumer's account, the financial Part 205—Electronic Fund Transfers institution shall comply with the requirements of this section rather than those of 12 C.F.R. 226.13(a), (b), 1. By revising §§ 205.5(c)(i) ,(ii) ,205.5(c)(2)(i), (c), (e), (f), and (h). 205.6(d)(l)(i), 205.9(b)(3), and 205.1 l(i) to refer to the revised section of Regulation Z, to read as follows: AMENDMENTS TO REGULATION Z Section 205.5—Issuance of Access Devices The Board of Governors has amended revised Regulation Z (12 C.F.R. Part 226) to implement Truth in (c) Relation to Truth in Lending Lending amendments made in the Garn- St Germain Q) *** Depository Institutions Act of 1982. The amendments (ii) Addition to an accepted credit card, as defined delete from coverage arrangers of credit and exempt in 12 C.F.R. 226.12(a)(2), footnote 21 (Regulation certain student loans. For purposes of administrative Z), of the capability to initiate electronic fund enforcement, two footnotes relating to disclosure ertransfers; and rors caused by the use of faulty calculation tools are also amended. Effective October 1, 1982, sections 226.2, 226.3, (2) *** 226.14 and 226.22 are amended as set forth below: (i) Issuance of credit cards as defined in 12 C.F.R. 226.2(a)(15); Part 226—Truth in Lending 1. By removing and reserving paragraph (a)(3), and Section 205.6—Liability of Consumer for reserving footnote 2 to paragraph (a)(3) of § 226.2; Unauthorized Transfers removing paragraph (a)(17)(ii) of § 226.2 and redesignating paragraphs (a)(17)(iii), (iv), and (v) as paragraphs (a)(17)(ii), (iii), and (iv), respectively; adding a (d) Relation to Truth in Lending. new paragraph (f) to § 226.3; and removing the last (j) *** sentence of both footnote 31a to § 226.14 and footnote (i) Was initiated by use of an access device that is 45a to § 226.22, to read as follows: also a credit card as defined in 12 C.F.R. 226.2(a)(15), or Section 226.3—Exempt Transactions Section 205.9—Documentation of Transfers (f) Student loan programs. Loans made, insured, or guaranteed pursuant to a program authorized by Title IV of the Higher Education Act of 1965 (20 U.S.C. (b) Periodic Statements. *** 1070 et seq.). (3) The total amount of any fees or charges, other than a finance charge under 12 C.F.R. 226.7(f), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 371 BANK HOLDING COMPANY AND BANK MERGER Bank, with total assets of $254 million and total ORDERS ISSUED BY THE BOARD OF GOVERNORS deposits of $191.2 million controls approximately 1.6 percent of the total deposits in commercial banks in Orders Under Section 3 of Bank Holding Puerto Rico and is the tenth largest commercial bank- Company Act ing organization in Puerto Rico.3 Inasmuch as Applicant does not conduct any banking operations or other Banco De Vizcaya, S.A., business in the Commonwealth of Puerto Rico, con- Bilbao, Spain summation of the proposed transaction would have no adverse effects on either existing or potential competi- Order Approving Acquisition of a Bank tion in any relevant market and would not increase the concentration of resources in any relevant market. Banco de Vizcaya, S.A., Bilbao, Spain, has applied Therefore, the Board concludes that competitive confor the Board's approval under section 3(a)(1) of the siderations are consistent with approval of the appli- Bank Holding Company Act (12 U.S.C. § 1842) to cation. become a bank holding company through the acquisi- Based on the entire record, including comments tion of 68 percent of the voting shares of Banco made by the Protestants regarding the financial Comercial de Mayaguez, Mayaguez, Puerto Rico strength of the Applicant, the Board is of the view that ("Bank"). the financial and managerial resources of the Appli- Notice of the application, affording opportunity for cant appear generally satisfactory and its future prosinterested persons to submit comments, has been pects appear favorable. The financial and managerial given in accordance with section 3(b) of the Act. The resources of Bank appear generally satisfactory and time for filing comments and views has expired, and the future prospects of Bank appear favorable, espethe Board has considered the application and all cially in light of commitments made by Applicant to comments received, including the comments of certain inject additional capital into Bank. Based on these and minority shareholders of Bank ("Protestants"), in other commitments, the Board has determined that light of the factors set forth in section 3(c) of the Act. considerations relating to banking factors are consist- Banco de Vizcaya is the fifth largest publicly owned ent with approval of this application. banking institution in Spain, with total assets of $12 Affiliation with Applicant will permit Bank to develbillion and total deposits of $7.8 billion.1 Banco de op an international banking department as well as to Vizcaya presently operates a branch in New York and continue its current retail services. Thus, consideragencies in Miami and San Francisco, but does not ations relating to the convenience and needs of the engage directly or indirectly in any nonbanking activi- community to be served are consistent with approval. ties in the United States. Banco de Vizcaya proposes Accordingly, the Board has determined that consumto acquire the shares of Bank as part of the purchase of mation of the proposed transaction would be in the the assets of Banco Occidental, S.A., Madrid, Spain, public interest. from the Fund for the Guarantee of Deposits in Based upon the foregoing, including all the facts of Banking Institutions, Madrid, Spain (the "Fund"). record and the commitments made by Applicant, the The Fund is an agency of the Spanish Government Board has determined that the application should be established for the purpose of aiding and administering and hereby is approved. The transaction shall not be ailing financial institutions in Spain, and acquired the consummated before the thirtieth calendar day followassets of Banco Occidental, including the shares of ing the effective date of this Order, or later than three Bank, pursuant to its emergency powers. Banco de months after the effective date of this Order, unless Vizcaya has been awarded the purchase of the assets such period is extended for good cause by the Board or of Banco Occidental by the Fund, and has taken possession of those assets except for the shares of Bank, which have been retained by the Fund pending possession of or voted the shares of Bank, and has applied for the Board action on this application.2 Board's approval for its proposed acquisition. On the basis of the entire record, the Board has determined that Applicant has not acquired control of Bank under the BHC Act. Protestants' allegation that the Fund has violated the BHC Act is not relevant to this 1. All banking data for Applicant are as of September 30, 1982. application. Moreover, the Board has determined that, under the 2. Protestants allege that Applicant and the Fund have each violat- circumstances of this case, the Fund, which exercises functions ed the BHC Act by acquiring the assets of Banco Occidental, which is similar to those of the Federal Deposit Insurance Corporation, has not itself a registered bank holding company (67 FEDERAL RESERVE violated the BHC Act. The Board has also determined that the BULLETIN 186 (1981)), without the prior approval of the Board. allegations made by Protestants regarding the fairness of the proposed Protestants also allege that the Fund has violated the BHC Act by acquisition by Applicant to the minority shareholders do not, in light holding the shares of Bank pending Board action on this application. of the facts of this case, reflect adversely on the managerial factors of The record does not support the conclusion that Applicant has already Applicant and do not warrant denial of this application. acquired control of the shares of Bank. Applicant has not taken 3. All banking data for Bank are as of December 31, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin • May 1983 by the Federal Reserve Bank of New York, under received in light of the factors set forth in section 3(c) delegated authority. of the BHC Act, 12 U.S.C. § 1842(c). By order of the Board of Governors, effective Each Applicant is a one-bank holding company by April 19, 1983. virtue of its control of a bank located in Kansas. Northwest controls The Trego-Wakeeney State Bank, Voting for this action: Vice Chairman Martin and Gover- Wakeeney, Kansas, with deposits of $28.9 million.2 nors Partee, Teeters, Rice, and Gramley. Absent and not Southwest controls The First National Bank of voting: Chairman Volcker and Governor Wallich. Meade, Meade, Kansas, with deposits of $25.4 million. Santa Fe controls Haskell County State Bank, JAMES MCAFEE, Sublette, Kansas, with deposits of $28.6 million. Ar- [SEAL] Associate Secretary of the Board kansas controls The Farmers State Bank, Yoder, Kansas, with deposits of $9.4 million. Arkansas, Santa Fe, and Southwest are affiliated Northwest Kansas Banc Shares, through common management and shareholders.3 Hutchinson, Kansas Principals of these Applicants will also serve as directors and officers of Garden and Bank and will own Southwest Kansas Banc Shares, shares of Garden in their individual capacity.4 The Hutchinson, Kansas remaining 25 percent of Garden's voting shares will be owned by unaffiliated individual investors. Santa Fe Trail Banc Shares, Inasmuch as Bank is a de novo bank, the Board Hutchinson, Kansas views consummation of the proposed transaction as procompetitive. Accordingly, the Board concludes Arkansas Valley Banc Shares, that the proposal will not have adverse effects on Hutchinson, Kansas competition in any relevant area and that the competitive effects are consistent with approval of the applica- Order Approving Acquisition of Shares of a Bank tions. Holding Company The financial and managerial resources of Applicants, their banking subsidiaries and Bank are regard- Northwest Kansas Banc Shares, Inc. ("Northwest"), ed as generally satisfactory and their future prospects Southwest Kansas Banc Shares, Inc. ("Southwest"), Santa Fe Trail Banc Shares, Inc. ("Santa Fe"), Arkansas Valley Banc Shares, Inc. ("Arkansas"), all in 2. All financial data are as of December 31, 1981. Hutchinson, Kansas (together "Applicants"), each a 3. The fourth, Northwest, is majority-owned by an individual who registered one-bank holding company within the is not a shareholder, director or officer of the other three Applicants. Northwest holds approximately 4 percent of the voting shares of each meaning of the Bank Holding Company Act as amendof the other three Applicants. Arkansas and Santa Fe hold approxied, 12 U.S.C. § 1841 et seq. ("BHC Act"), have mately 4.5 percent of the voting shares of Northwest. applied for the Board's approval under section 3(a)(3) 4. Pursuant to the Supreme Court's decision in Whitney National Bank in Jefferson Parish v. Bank of New Orleans <& Trust Company, of the BHC Act, 12 U.S.C. § 1842(a)(3), to acquire 379 U.S. 411, 419 (1965), the Board may not approve an application approximately 16.7 percent each of the voting shares that would result in a violation of a valid State law. Kansas law of Garden Banc Shares, Inc., Hutchinson, Kansas prohibits the formation of a bank holding company defined as a company that directly or indirectly owns or controls or holds with ("Garden"), and thereby indirectly acquire an interest power to vote 25 percent or more of the voting shares of two or more in The Fourth Bank of Garden City, N.A., Garden banks, or controls the election of a majority of the directors of two or City, Kansas ("Bank"), a de novo bank.1 more banks. Based on opinions of the Kansas Bank Commissioner and the Kansas Attorney General, the Board recently approved Notice of these applications, affording opportunity applications by these Applicants, each a one-bank holding company for interested persons to submit comments and views, located in Kansas, to acquire approximately 20.06 percent of the voting shares of another one-bank holding company located in Kanhas been given in accordance with section 3(b) of the sas, Northwest Kansas Banc Shares, Inc., et al., 69 FEDERAL BHC Act. The time for filing comments and views has RESERVE BULLETIN 98 (1983); see also, Sierra Petroleum Company, expired and the Board has considered all comments Inc. & K&B Producers, Inc., 63 FEDERAL RESERVE BULLETIN 938 (1977). ki light of the similarity of that proposal to the present one, the Board believes that the proposed acquisition of Garden by Applicants is consistent with state law. In addition, as reflected in this Order, the 1. Under section 3(a)(3) of the BHC Act, a bank holding company proposal is consistent with competitive, financial and convenience may not, without the prior approval of the Board, acquire directly or and needs criteria of the BHC Act. Moreover, as it concluded in indirectly more than five percent of the voting shares of a bank. The Northwest, the Board does not believe that any regulatory purpose Board has held that this requirement applies to the acquisition by a would be served in requiring Applicants to file an application and bank holding company of shares of another bank holding company. register as a single multi-bank holding company because each Appli- State Street Boston Corporation, 67 FEDERAL RESERVE BULLETIN cant is already a registered bank holding company subject to the 862 (1981). Board's supervision. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 373 appear favorable. The Board has indicated on previous The time for filing comments and views has expired, occasions that a holding company should serve as a and the Board has considered the application and all source of strength to its subsidiary banks, and that the comments received in light of the factors set forth in Board would closely examine the condition of an section 3(c) of the Act (12 U.S.C. § 1842(c)). applicant in each case with this consideration in mind. Applicant, a one-bank holding company by virtue of Although each of the Applicants will incur some its control of Washington Trust Bank, Spokane, Washacquisition debt, the Board concludes that the amount ington ("Washington Bank"), is the eighth largest of debt involved in each case would not preclude commercial banking organization in Washington, with Applicants from serving as a source of strength to total domestic deposits of $320 million, representing Bank and their subsidiary banks. Accordingly, consid- 1.4 percent of the total deposits in commercial banks erations relating to banking factors are consistent with in the state.1 Bank is the fifteenth largest commercial approval of these applications. banking organization in Washington, with deposits of Since Bank is a de novo institution, Bank will serve $70.2 million, representing 0.4 percent of the total as a new source of banking services in the market. deposits in commercial banks in the state. Consumma- Thus, the Board believes that considerations relating tion of the proposed transaction would increase Applito the convenience and needs of the community to be cant's share of the total deposits in commercial banks served lend some weight towards approval of these in the state by 0.4 percent and its rank would remain applications. Accordingly, it is the Board's judgment unchanged. Accordingly, the Board concludes that that consummation of Applicants' acquisition of consummation of the proposed transaction would not shares of Bank would be in the public interest and that have a significant effect on the concentration of bankthe applications should be approved. ing resources in the state of Washington. On the basis of the record, the applications are Both Applicant and Bank compete in the Moses approved for the reasons summarized above. The Lake/Warden banking market.2 The four largest comacquisition of shares of Bank shall not be made before mercial banking organizations in the Moses Lake/ the thirtieth calendar day following the effective date Warden banking market control 89.4 percent of total of this Order or later than three months after that date, deposits in commercial banks in the market.3 Appliunless such period is extended for good cause by the cant, the fifth largest of six commercial banking orga- Board or by the Federal Reserve Bank of Kansas City nizations in this market, operates two branches which pursuant to delegated authority. hold deposits of $11.2 million, representing 9.8 percent By order of the Board of Governors, effective of the total deposits in commercial banks in the April 5, 1983. market.4 Bank is the smallest banking organization in the market with deposits of $0.9 million, representing Voting for this action: Chairman Volcker and Governors 0.8 percent of the total deposits in commercial banks Martin, Wallich, Partee, Teeters, and Gramley. Absent and in the market. Acquisition of Bank would increase not voting: Governor Rice. Applicant's share of the total deposits in commercial banks in the market to 10.6 percent; and Applicant's JAMES MCAFEE, rank in the market would remain unchanged. [SEAL] Associate Secretary of the Board Consummation of the proposed transaction would eliminate existing competition between Applicant and Bank in the Moses Lake/Warden banking market; W.T.B. Financial Corporation, however, the following and other facts of record Spokane, Washington mitigate the competitive effects of this transaction. First, the level of concentration in the market is due, in Order Approving Acquisition of Bank 1. Unless otherwise indicated, all banking data are as of Septem- W.T.B. Financial Corporation, Spokane, Washington, ber 30, 1982. a bank holding company within the meaning of the 2. The Moses Lake/Warden banking market is approximated by Bank Holding Company Act (12 U.S.C. § 1841 et seq.) 320 square miles of southeastern Grant County, Washington, and includes the cities of Moses Lake and Warden. ("Act"), has applied for the Board's approval under 3. The Herfindahl-Hirschman index ("HHI") of the Moses Lake/ section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)), to Warden market is 2284 and will increase by 16 points to 2300 upon acquire Security Bank of Washington, Ephrata, Wash- consummation. Under the Department of Justice merger guidelines, in a market where the post-merger HHI is over 1800, the Department is ington. unlikely to challenge a merger that produces an increase in the HHI of Notice of the application, affording opportunity for less than 50 points. 4. All market data are as of June 30, 1982, and include the deposits interested persons to submit comments and views, has held by Fidelity Mutual Savings Bank, which was merged into First been given in accordance with section 3(b) of the Act. Interstate Bank of Washington on March 15, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 Federal Reserve Bulletin • May 1983 large part, to the market shares of the two leading the proposed transaction would be in the public interfirms which together control approximately 54.6 per- est and that the application should be approved. cent of the market's deposits. In addition, Bank is not On the basis of the record, the application is apa strong competitor in the market. In this regard, since proved for the reasons summarized above. The acquiits opening in 1978, the share of the market's deposits sition of Bank shall not be made before the thirtieth held by Bank's branch has declined and, absent affili- calendar day following the effective date of this Order ation with Applicant, the branch likely would have or later than three months after the effective date of been closed by Bank. Based on the foregoing and this Order, unless such period is extended for good other facts of record, the Board concludes that the cause by the Board of Governors or by the Federal competitive effects of the transaction would not be so Reserve Bank of San Francisco pursuant to delegated serious as to warrant denial of the proposal. authority. The Board has considered also the effects of this By order of the Board of Governors, effective acquisition on probable future competition in light of April 28, 1983. its proposed guidelines for assessing the competitive effects of bank holding company acquisitions and Voting for this action: Chairman Volcker and Governors mergers.5 In this regard, there are a number of markets Martin, Wallich, Partee, Rice, and Gramley. Absent and not voting: Governor Teeters. in which Bank or Applicant, but not both, competes. With respect to those markets in which Bank com- WILLIAM W. WILES, petes and in which Applicant is not now represented, [SEAL] Secretary of the Board under the Board's existing standards none of these markets is considered attractive for de novo entry, and it appears unlikely that Applicant would enter these markets by alternative means. With respect to those Orders Under Section 4 of Bank Holding markets where Applicant competes and in which Bank Company Act is not now represented, because of its size, Bank does not appear to be a probable future entrant into any of Independent Bankshares Corporation, these markets. In light of these facts, the Board San Rafael, California concludes that the acquisition would not have a substantial adverse effect on probable future competition Order Approving Acquisition of Company Engaged in any relevant area. Thus, the Board concludes in Management Consulting Services competitive considerations are consistent with approval of the application. Independent Bankshares Corporation, San Rafael, The financial and managerial resources and future California, a bank holding company within the meanprospects of Applicant, its subsidiaries and Bank are ing of the Bank Holding Company Act ("Act"), has regarded as generally satisfactory. Although Applicant applied for the Board's approval, pursuant to section will incur debt in connection with the proposed acqui- 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)), and section sition, Applicant appears able to meet its debt-servic- 225.4(b)(2) of the Board's Regulation Y (12 C.F.R. ing requirements without adversely affecting Washing- § 225.4(b)(2)), to acquire Learnex Corporation, La ton Bank or Bank. Thus, banking factors are Jolla, California ("Corporation"), and thereby engage consistent with approval. In addition, Applicant will in providing management consulting services to nonafassist Bank to expand its services to include trust filiated depository institutions.1 This activity, subject services, a leasing program and ATMs. In light of the to certain conditions, has been determined by the proposed expansion in services, the Board concludes Board to be closely related to banking and, therefore, that considerations relating to the convenience and permissible for bank holding companies (12 C.F.R. needs of the communities to be served lend some § 225.4(a)(12)). weight toward approval of the application and out- Notice of the application, affording interested perweigh any slightly adverse competitive effects that sons an opportunity to submit comments and views on may result from consummation of the proposal. Ac- the public interest factors, has been duly published (48 cordingly, the Board concludes that consummation of Federal Register 7009 (1983)). The time for filing 5. 47 Federal Register 9017 (March 3, 1982). See also, Shawmut 1. Applicant also intends to provide management consulting ser- Corporation, 68 FEDERAL RESERVE BULLETIN 309 (1982); Colorado vices through Corporation to itself and its subsidiary banks. Applicant National Bankshares, Inc., 68 FEDERAL RESERVE BULLETIN is not required to obtain the Board's prior approval to engage in this 553(1982); Old Kent Financial Corporation, 69 FEDERAL RESERVE activity pursuant to section 4(c)(1)(C) of the Act (12 U.S.C. BULLETIN 102 (1983). § 1843(c)(1)(C)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 375 comments and views has expired, and the Board has The Maybaco Company, considered the application and all comments received Baltimore, Maryland in light of the public interest factors set forth in section 4(c)(8) of the Act. Equitable Bancorporation, Applicant, the 20th largest banking organization in Baltimore, Maryland California, controls six banking subsidiaries with aggregate deposits of $654 million, representing approxi- Order Approving Acquisition of Shares of ABG mately 0.4 percent of total deposits in commercial Associates, Inc. banks in the state.2 In addition, Applicant engages, through nonbanking subsidiaries, in trust company The Maybaco Company ("Maybaco") and Equitable and mortgage banking activities. Bancorporation ("Equitable") both of Baltimore, Corporation provides management consulting ser- Maryland, and both bank holding companies within vices to depository institutions, specializing in the the meaning of the Bank Holding Company Act provision of personnel development and marketing (12 U.S.C. § 1841 et seq.) have applied for the Board's technique programs. Applicant proposes to market approval under section 4(c)(8) of the Act and section Corporation's services throughout the United States. 225.4(b) of the Board's Regulation Y (12 C.F.R. Affiliation with Applicant will enable Corporation to § 225.4(b)), directly to acquire voting shares of ABG market its services more effectively. Accordingly, it is Associates, Inc., Baltimore, Maryland ("ABG"), a the Board's view that approval of this application joint venture currently held in part by Equitable's would produce benefits to the public and would be in subsidiary, Equitable Bank, National Association, the public interest. Moreover, there is no evidence in Baltimore, Maryland ("EBNA").1 the record to indicate that Applicant's engaging in this ABG is a specialized mortgage banking firm engaged activity would lead to any undue concentration of principally in the arrangement, placement, and servicresources, decreased or unfair competition, conflicts ing of government-assisted mortgage loans. Most of of interests, unsound banking practices or other ad- the transactions in which ABG plays a role involve the verse effects. financing of low- and moderate-income apartment and Based upon the foregoing and other considerations nursing home projects. ABG also engages to a limited reflected in the record, the Board has determined that extent in conventional mortgage loan servicing and in the balance of the public interest factors the Board is the provision of financial advisory services to public required to consider under section 4(c)(8) of the Act is housing authorities and other units of state and local favorable. Accordingly, the application is approved. governments with respect to the construction or reha- This determination is subject to the conditions set bilitation of housing projects. Each of these activities forth in section 225.4(c) of Regulation Y and to the has been determined by the Board to be closely related Board's authority to require such modification or to banking (12 C.F.R. §§ 225.4(a)(1), (3), and (5)). ABG termination of the activities of a holding company or has offices in Baltimore, Maryland; Richmond, Virginany of its subsidiaries as the Board finds necessary to ia; and Washington, D.C., and the geographic areas assure compliance with the provisions and purposes of served are Maryland, Pennsylvania, Delaware, the the Act and the Board's regulations and orders issued District of Columbia, West Virginia, Virginia, and thereunder, or to prevent evasions thereof. The trans- North Carolina. action shall be made not later than three months after Notice of the application, affording opportunity for the effective date of this Order, unless such period is interested persons to submit comments on the public extended for good cause by the Board or by the interest factors, has been duly Published (48 Federal Federal Reserve Bank of San Francisco pursuant to Register 3049 (1983)). The time for filing comments delegated authority. has expired, and the Board has considered the applica- By order of the Board of Governors, effective tion and all comments received in light of the public April 26, 1983. interest factors set forth in section 4(c)(8) of the Act. ABG was formed in 1980 as a de novo corporation Voting for this action: Chairman Volcker and Governors by its current shareholders, EBNA; Baker, Watts & Martin, Wallich, Partee, Teeters, Rice, and Gramley. Co. ("Baker, Watts"); and ATN & Company, Inc. WILLIAM W. WILES, [SEAL] Secretary of the Board 1. Maybaco is a party to this application only because it owns 33.6 percent of Equitable's voting shares. Maybaco is a limited partnership formed by one of Equitable's shareholders solely to hold the Equitable stock controlled by him. Maybaco engages in no other activities other 2. All banking data are as of September 30, 1982. than the holding of Equitable's stock. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 Federal Reserve Bulletin • May 1983 ("ATN").2 EBNA currently owns 49 percent of hand, is an end in itself intended to build a profitable ABG's voting common stock and 65.3 percent of its loan portfolio. Consequently, it appears that Equitable nonvoting preferred stock. Through this application, and ABG are not principally engaged in the same line Equitable proposes directly to acquire EBNA's inter- of commerce for purposes of competitive analysis. In est in ABG through a transfer of the stock as a addition, since ABG's principal customers are develdividend from EBNA to Equitable.3 Baker, Watts opers of low- and moderate-income housing and nursnow owns 26 percent of ABG's common stock and ing home projects, while EBNA makes construction 34.7 percent of its preferred stock, while ATN holds 25 loans to a much broader group of individuals and percent of ABG's common stock. businesses, any competitive overlap between ABG ATN is owned by three officers of ABG and engages and EBNA is further mitigated by the fact that they in no activity apart from its ownership of ABG's largely serve different markets. Accordingly, it is the common stock. Consequently, ATN's role as a joint Board's judgment that consummation of the proposal venturer in this proposal would have no effect on would not have any adverse effect on existing compeexisting or potential competition in any relevant mar- tition. ket. Baker, Watts is a member of the New York Stock The Board has also considered the effects of con- Exchange ("NYSE") and is engaged principally in the summation of this proposal on probable future compeactivities of: 1) underwriting and dealing in securities; tition in the relevant line of commerce, particularly in 2) securities brokerage, and; 3) rendering financial light of the fact that this application involves the use of planning and advisory services. The facts of record a joint venture to engage in the relevant activities. In indicate that Baker, Watts ranks as a medium-sized this regard, although Equitable could presumably enfirm among the mid-Atlantic NYSE-member invest- gage in these specialized mortgage banking activities ment banking firms. Equitable is the second largest independently, the Board does not consider Equitable banking organization in Maryland, controlling approx- to be a likely independent entrant into the market imately $1.8 billion in aggregate deposits, or 13.2 because it does not possess the necessary expertise to percent of commercial bank deposits in the state.4 engage separately in these highly specialized activi- Through its nonbank subsidiaries, Equitable engages ties, and the cost of doing so on a de novo basis would in permissible credit-related insurance activities, in- likely be prohibitive.5 The elimination of Equitable vestment advisory activities, and in the holding of as a probable future entrant into this line of commerce, bank premises. therefore, would have little effect on probable future Neither Equitable nor Baker, Watts currently en- competition in the market. Accordingly, the Board gages directly or indirectly in the specialized mortgage concludes that consummation of the proposed joint banking activities and related advisory services that venture would not significantly decrease competition ABG provides. Equitable engages in conventional in any market. mortgage lending activities through EBNA, but the Section 4(c)(8) of the BHC Act requires the Board to Board regards any overlap with ABG's activities as consider in connection with every application whether minimal. The record indicates that ABG's principal performance of a nonbanking activity by a particular activities involve the origination and servicing of an bank holding company "can reasonably be expected entire package of government-assisted construction to produce benefits to the public, such as greater and permanent financing for low- and moderate-in- convenience, increased competition or gains in efficome housing and nursing home projects. These activ- ciency, that outweigh possible adverse effects, such as ities frequently involve short-term construction lend- undue concentration of resources, decreased or unfair ing by ABG as an incidental part of an overall competition, conflicts of interest or unsound banking financing package. However, ABG generally sells practices." participations in such loans to other lenders and does It is the Board's view that approval of this applicanot attempt to build a substantial loan portfolio for tion could reasonably be expected to produce substanitself. Construction lending for EBNA, on the other tial benefits to the public. Specifically, Equitable's acquisition of ABG would permit the continuation of public benefits which have resulted from ABG's operations since its inception in 1980. The record indicates that the ownership interests of EBNA and Baker, 2. At the time of ABG's formation, EBNA was a state-chartered institution, The Equitable Trust Company. It became a national bank in July 1982. 3. The Comptroller of the Currency is requiring EBNA to divest its ABG stock because ABG does not qualify as an "operating subsidiary" in compliance with Federal law and the Comptroller's regula- 5. See, Florida Coast Banks, Inc., 68 FEDERAL RESERVE BULLEtions. 12 U.S.C. § 24 (Seventh), 12 C.F.R. § 7.7376. TIN 781 (1982); Svenska Handelsbanken, 68 FEDERAL RESERVE BUL- 4. All banking data are as of June 30, 1982. LETIN 788 (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 377 Watts have enabled ABG to operate as a uniquely Baker, Watts would instead be elected by the trustees effective participant in its field, producing gains in of the voting trust; no partner, officer or employee of efficiency and increased competition, and materially Baker, Watts would be eligible to serve as a director of assisting in the creation of new low- and moderate- ABG at any time. Accordingly, it is the Board's view income housing and nursing homes. that Applicants have taken sufficient measures to With regard to possible adverse effects, in prior ensure that the Glass-Steagall Act's prohibition cases the Board has considered whether the involve- against affiliation between the banking and securities ment of a bank holding company in a joint venture with industries would not be violated by approval of this a nonbanking firm may in itself constitute a general- application. Further, there is no evidence in the record ized adverse effect, in the form of an undue concentra- to indicate that consummation of this proposal would tion of economic resources or otherwise, that would result in an undue concentration of resources, unfair preclude approval of an application.6 In a case such as competition, conflicts of interests, unsound banking this one, where a bank holding company and a securi- practices, or other adverse effects on the public ties firm propose to engage in a joint venture, an interest. additional question is raised as to whether approval of Based on the foregoing and other facts of record, the the proposal would violate the letter or the intent of Board concludes that the balance of the public interest the Glass-Steagall Act.7 factors it must consider under section 4(c)(8) favors The facts of record indicate that there is no "affili- approval of this application. In addition, the financial ation" between Equitable and Baker, Watts, within and managerial resources and future prospects of the meaning of the Glass-Steagall Act. Accordingly, Equitable and ABG are considered consistent with the Board has determined that approval of this propos- approval, and the Board has determined that the al would not result in a violation of any provision of application should be and hereby is approved. that Act. The Board has also determined that the This determination is subject to the conditions set ownership interests of Equitable and Baker, Watts in forth in section 225.4(c) of Regulation Y and to the ABG would not create a level of involvement between Board's authority to require such modification or the bank holding company and the securities firm termination of the activities of a bank holding compasufficient to circumvent the intent of the Glass-Steagall ny or its subsidiaries as the Board finds necessary to Act. In this regard, ABG would not engage in securi- assure compliance with the provisions and purposes of ties activities, and none of its officers or directors the Act and the Board's regulations and orders issued would be a director, partner or employee of Baker, thereunder, or to prevent evasion thereof. Watts. Further, upon consummation of the proposal, The transaction shall be made not later than three Baker, Watts has agreed to the redemption of all of the months after the effective date of this Order, unless nonvoting preferred stock of ABG it currently owns such period is extended for good cause by the Board or and to the sale of enough of its voting common stock to by the Federal Reserve Bank of Richmond, acting reduce its ownership interest in ABG from 26 percent pursuant to delegated authority. to 19.07 percent.8 In addition, Baker, Watts would By order of the Board of Governors, effective place approximately 14.07 percent of its ABG common April 6, 1983. stock into an independent voting trust, which would deprive Baker, Watts of the power to vote those Voting for this action: Vice Chairman Martin and Govershares.9 Consequently, upon consummation of this nors Wallich, Partee, and Teeters. Absent and not voting: Chairman Volcker and Governors Rice and Gramley. proposal, Baker, Watts would have voting rights over only 4.99 percent of ABG's common stock. Applicants have further agreed that, upon consummation of this JAMES MCAFEE, [SEAL] Associate Secretary of the Board proposal, the two ABG directors formerly elected by Old Colony Co-Operative Bank, 6. See, Deutsche Bank AG, 67 FEDERAL RESERVE BULLETIN 449 Providence, Rhode Island (1981); Maryland National Corporation, 65 FEDERAL RESERVE BUL- LETIN 271 (1979). 7. See, 12 U.S.C. §§ 78, 221a(b), 377. Order Approving Establishment of De Novo Branch 8. Specifically, Baker, Watts would sell 6.93 percent of its common stock to ATN. ATN's share ownership would thereby increase to 31.93 percent. Old Colony Co-Operative Bank, Providence, Rhode 9. The trust would have three trustees, none of whom could be an Island, a bank holding company within the meaning of officer, partner or employee of Equitable, ATN or Baker, Watts. the Bank Holding Company Act, has applied for the Baker, Watts would continue to receive dividends from the shares, but could not exercise any voting rights over them. Board's approval under section 4(c)(8) of the Act Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 Federal Reserve Bulletin • May 1983 (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(1) of the Board is required to assess the public interest factors Board's Regulation Y (12 C.F.R. § 225.4(b)(1)), to in each section 4(c)(8) application, including an appliengage in the activities of a mutual building-loan cation for a de novo branch of an approved subsidiary. association at a de novo branch office in East Provi- The Board has previously determined that the operadence, Rhode Island. Applicant is a state-chartered tion of a Rhode Island mutual building-loan associamutual building-loan association that engages primari- tion by a Rhode Island bank holding company is so ly in accepting share deposits and making real estate closely related to banking as to be a proper incident mortgage loans. Applicant's accounts are insured by thereto. In its 1972 approval of Applicant's application the Federal Savings and Loan Insurance Corporation to become a bank holding company and to continue to ("FSLIC"). engage in the activities of a mutual building-loan The Board has not added the operation of a Rhode association, the Board determined that, because of the Island mutual building-loan association to the list of historical affiliation of mutual thrift associations and activities specified in section 225.4(a) of Regulation Y commercial banks in Rhode Island, Applicant's operaas generally permissible for bank holding companies. tion of a thrift institution is so closely related to Rhode In 1972, however, the Board determined that the Island banking as to be a proper incident thereto.3 The operation of such an institution is closely related to Board reaffirmed this determination in 1980 and 1982.4 banking in Rhode Island and approved Applicant's Because no evidence has been presented to indicate proposal to become a bank holding company and to that banking conditions have substantially changed in continue to engage in the activities of a mutual build- Rhode Island since the Board's last consideration of ing-loan association. The Board also approved Appli- this issue, the Board confirms its finding that the cant's proposals to acquire the Mayflower Savings and operation of a mutual building-loan association is so Loan Association, Providence, Rhode Island ("May- closely related to banking in Rhode Island as to be a flower"), a Rhode Island mutual building-loan associa- proper incident thereto. tion, in 1980, and to retain a de novo branch office in Notwithstanding this general finding, the Board 1982.1 must also consider the particular facts of this case to Notice of the application, affording opportunity for determine whether the establishment of this office can interested persons to submit comments, has been duly reasonably be expected to produce benefits to the published (48 Federal Register 7009 (1983)). The time public that outweigh possible adverse effects. Estabfor filing comments and views has expired and the lishment of this branch would have no adverse effect Board has considered the application and all com- on competition because it is a de novo office. The ments received in light of the factors set forth in Board views de novo entry as procompetitive and a section 4(c)(8) of the act. positive public benefit because such entry provides an Applicant (consolidated assets of $798.8 million), is additional source of competition in a market.5 Cona bank holding company by virtue of its control of summation of the proposal will provide an additional Newport National Bank, Newport, Rhode Island (de- source of banking services in the East Providence posits of $59.6 million).2 As of June 30, 1981, Appli- area. cant was the second largest thrift institution and the In considering similar applications involving the fifth largest commercial banking organization in Rhode affiliation of commercial banks and thrift institutions in Island. Applicant operates its commercial banking and New Hampshire, the Board has expressed the view thrift activities in common offices at 21 locations in that serious adverse effects may result from tandem Rhode Island, and seeks to operate the branch that is operation of these two types of institutions, which the subject of this application in tandem with Newport only compelling public benefits will outweigh under National. section 4(c)(8) of the Act.6 With regard to such affili- While Applicant does not seek to engage in a new ations in the State of Rhode Island, however, the activity under the Bank Holding Company Act, the Board has said: The Board recognizes that a different view of tandem operations in Rhode Island is possible because of 1. Old Colony Co-Operative Bank, 58 FEDERAL RESERVE BULLE- TIN 417 (1972); Old Colony Co-Operative Bank, 66 FEDERAL RESERVE BULLETIN 665 (1980); Old Colony Co-Operative Bank, 68 FEDERAL 3. 58 FEDERAL RESERVE BULLETIN 417 (1972). RESERVE BULLETIN 785 (1982). Under section 333 of the Garn-St 4. 66 FEDERAL RESERVE BULLETIN 665 (1980); 68 FEDERAL RE- Germain Depository Institutions Act, Applicant is not a "bank" SERVE BULLETIN 785 (1982). within the meaning of section 2(c) of the Bank Holding Company Act 5. Virginia National Bancshares, Inc., 66 FEDERAL RESERVE BULbecause its accounts are insured by the FSLIC. LETIN 668, 671 (1980). 2. All financial data are as of December 31, 1982, unless otherwise 6. First Financial Group of New Hampshire, Inc., 66 FEDERAL indicated. RESERVE BULLETIN 594 (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 379 historical and legal peculiarities affecting the opera- There is no evidence of any other potential adverse tions and competitive position of the state's depository effects that might be associated with this proposal. institutions. Nearly all thrift institutions in Rhode Based upon the foregoing and other considerations Island are associated with commercial banks in varyreflected in the record, the Board has determined that ing degrees, and over half of them conduct common the balance of public interest factors the Board is lobby operations. Consequently it is clear that the required to consider under section 4(c)(8) is favorable. expansion of tandem operations in the state will be less unsettling structurally than it would be elsewhere.7 Accordingly this application is approved.10 This determination is subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board's Based on the evidence in the record, the Board authority to require such modification or termination concludes that there are significant structural differof the activities of a holding company or any of its ences between the tandem operations of commercial subsidiaries as the Board finds necessary to assure bank-thrift institutions in Rhode Island and New compliance with the provisions and purposes of the Hampshire and that there is no basis to impose restric- Act and the Board's regulations and orders issued tions on such operations in Rhode Island. In New thereunder, or to prevent evasion thereof. The trans- Hampshire, the extent of tandem operations is limited. action shall be made not later than three months after In considering an application by a bank holding comthe effective date of this Order, unless that period is pany to acquire a previously unaffiliated thrift in New extended for good cause by the Board or by the Hampshire in 1980, the Board expressed its concern Federal Reserve Bank of Boston acting pursuant to that approval would result in circumvention of the authority hereby delegated. interest rate differential between commercial banks By order of the Board of Governors, effective and thrifts in that state, and imposed restrictions on tandem operations.8 In Rhode Island, however, the April 28, 1983. Board has reoognized a longstanding and widespread integration of the operations of depository institu- Voting for this action: Chairman Volcker and Governors Martin, Wallich, Partee, Rice, and Gramley. Absent and not tions.9 Every thrift of any size in Rhode Island that voting: Governor Teeters. now owns a commercial bank operates its thrift and bank offices in tandem. The unique historical and legal WILLIAM W. WILES, development of commercial bank and thrift affiliation [SEAL] Secretary of the Board in Rhode Island indicates that such affiliation results, at least partly, from Rhode Island's efforts to afford competitive equity among thrift institutions. Orders Under Sections 3 and 4 of Bank Holding Company Act Banc One Corporation, Columbus, Ohio 7. Old Colony Co-operative Bank, 66 FEDERAL RESERVE BULLETIN 665, 666 (1980). 8. First Federal Group of New Hampshire, Inc., 66 FEDERAL Order Approving Merger of Bank Holding RESERVE BULLETIN 594, 596 (1980). See, also, Heritage Banks, Inc., Companies and Acquisition Of Companies Engaged 66 FEDERAL RESERVE BULLETIN 917, 918 (1980); Heritage Banks, in Leasing, Insurance, and Mortgage Banking Inc., 66 FEDERAL RESERVE BULLETIN 590 (1980) (In this case, the Board did not apply its restriction against tandem operations because Activities it found mitigating factors which clearly indicated that the proposal was not a device by the Applicant to evade the interest rate differen- Banc One Corporation, Columbus, Ohio ("Banc tial). 9. In Old Colony Cooperative Bank, 66 FEDERAL RESERVE BULLE- One"), a bank holding company within the meaning of TIN 665, 666, n.6. (1980), the Board stated: the Bank Holding Company Act of 1956, (12 U.S.C. The activities and powers of depository institutions in the state § 1841 et seq.), has applied for the Board's approval are uniquely integrated, and have been for a long time. Each of under section 3(a)(5) of the Act (12 U.S.C. Rhode Island's seven mutual savings banks, having authority § 1842(a)(5)) to merge with Winters National Corporaunder state law to own a commercial bank, had acquired a commercial bank by 1967. Congress enacted section 2(a) (5) (F) of tion, Dayton, Ohio ("Winters"), also a bank holding the Act in order to exempt these combined savings-commercial company. As a result of the merger, Banc One would bank institutions from bank holding company status. In order partially to redress the competitive imbalance resulting from the superior competitive position of the seven savings-commercial bank institutions, the Rhode Island legislature, in May 1970, authorized state-chartered building-loan associations to establish 10. In connection with this application, the Board hereby delegates or acquire stock in a bank or trust company. In 1971, the state authority to the Federal Reserve Bank of Boston to approve applicaauthorized state-chartered credit unions with deposit shares over tions by Applicant to open additional de novo offices, pursuant to $1 million to accept demand deposits. section 225.4(b)(1) of Regulation Y (12 C.F.R. § 225.4(b)(1)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 Federal Reserve Bulletin • May 1983 acquire Winters' four subsidiary banks, all in Ohio: organizations in the state. In terms of the concentra- Winters National Bank & Trust Company, Dayton; tion of deposits in commercial banks, however, Ohio Euclid National Bank, Cleveland; First National Bank is one of the least concentrated states in the United of Circleville, Circleville; and Winters National Bank States and would remain so upon consummation of the of Cincinnati, Cincinnati. proposal. In addition, a large number of banking Banc One also has applied for the Board's approval organizations of substantial size would continue to under section 4(c)(8) of the Act (12 U.S.C. operate in the state following consummation of this § 1843(c)(8)) to acquire the following nonbanking sub- proposal.3 On the basis of these considerations, the sidiaries of Winters, all in Dayton, Ohio: Winters Board concludes that the proposed merger would have National Mortgage Corporation, which engages in no substantial adverse effects on the concentration of mortgage banking activities; Winters National Leasing banking resources in Ohio. Corporation, which engages in leasing personal prop- Banc One and Winters compete directly with each erty and equipment; and Winters National Life Insur- other in five banking markets in Ohio: Dayton, Cleveance Company, which provides credit life and credit land, Cincinnati, Columbus, and Middletown. The accident and health insurance in connection with in- Cincinnati banking market is unconcentrated and constallment loans made by Winters' banking subsidiar- tain numerous competitors, and Winters controls less ies. These activities have been determined by the than 1 percent of the deposits of commercial banks in Board to be closely related to banking (12 C.F.R. these markets. The Middletown banking market is a §§ 225.4(a)(1), (3), (6), and (9)). rural market and Winters is the smallest commercial Notice of the applications, affording opportunity for banking organization in the market with less than 1 interested persons to submit comments, has been percent of the market's deposits. The Columbus bankgiven in accordance with sections 3 and 4 of the Act ing market is highly concentrated, with the four largest (48 Federal Register 6592 (1983)). The time for filing commercial banking organizations controlling 85.9 comments has expired, and the Board has considered percent of the market. Applicant, through its lead the applications and all comments received in light of bank, is the market's third largest commercial banking the factors set forth in section 3(c) of the Act organization and controls 19.6 percent of the market. (12 U.S.C. § 1842(c)) and the considerations specified Winters' affiliate in the market controls less than one in section 4(c)(8) of the Act.1 percent of the market's deposits. After consummation, Banc One, the third largest commercial banking Banc One would remain the third largest commercial organization in Ohio, controls 24 banks with aggregate banking organization in the market. In addition, 19 domestic deposits of $4.0 billion, representing 8.9 commercial banks would continue to operate in the percent of the total deposits in commercial banks in Columbus market after consummation. Accordingly, Ohio. Winters, the tenth largest commercial banking consummation of the proposal would have no signifiorganization in Ohio, controls four subsidiary banks cant adverse effect on existing competition in those with aggregate deposits of $1.1 billion, representing markets. 2.5 percent of the total deposits in commercial banks Winters is the largest commercial banking organizain the state.2 Upon consummation of this transaction, tion in the Dayton banking market4 and controls 33.6 Banc One's share of the total deposits in commercial percent of the deposits of commercial banks there.5 banks would be 11.4 percent and Banc One would Banc One operates the tenth largest bank in the market become the largest commercial banking organization and controls 1.7 percent of the deposits of commercial in Ohio. banks in the market. The four largest banks in the The Board has carefully considered the effects of the Dayton market control 75.2 percent of the deposits in proposal on statewide banking structure and upon commercial banks in the market and consummation of competition in the relevant markets. The proposal the proposal would ordinarily raise concern about the involves a combination of sizeable commercial bank- elimination of existing competition in this market. ing organizations that are among the leading banking However, Banc One has committed to divest its existing bank subsidiary in Dayton in order to eliminate any anticompetitive effect that might otherwise 1. The Board received comments during the comment period from resort from the merger. The proposed divestiture Mr. William Kuntz regarding the operation of the trust department of Winters National Bank & Trust Company. Mr. Kuntz's comments do not reflect adversely on the proposed acquisition of Winters by Banc One and have been referred to the Comptroller of the Currency. 2. Statewide banking data are as of June 30, 1982, and reflect bank 4. The Dayton banking market is approximated by Montgomery, holding company acquisitions as of March 1, 1983. Greene and Miami Counties; Bethel and Mad River Townships in 3. Ten banking organizations with assets of over $1 billion and four Clark County; and Clear Creek, Massie, and Wayne Townships in organizations with assets over $500 million would remain in Ohio after Warren County, all in Ohio. consummation of the proposal. 5. Banking data are as of June 30, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 381 conforms with the Board's policy requiring that such centration, the number of probable future entrants into divestitures take place prior to or concurrent with the market, the size of the bank to be acquired, and the consummation of the proposed acquisition.6 The attractiveness of the market for entry on a de novo or Board concludes that, in the circumstances of this foothold basis absent approval of the acquisition. case, the adverse effects on existing competition in the After consideration of these factors in the context of Dayton banking market would be mitigated by Banc the specific facts of this case, the Board concludes that One's proposed actions to divest its banking subsid- consummation of this proposal would not have any iary in the market. significant adverse effects on probable future competi- In light of the proposed divestiture of Banc One's tion in any relevant market. subsidiary in Dayton, the Board has considered the Winters operates in the Darke County and Preble effect of consummation of this proposal upon probable County banking markets, two markets in which Banc future competition in the Dayton banking market. In One does not operate. Because of its size and substanthis regard, the record indicates that the Dayton tial managerial resources, Banc One appears to be a market has a three-firm concentration of 69.9 percent probable future entrant into these markets. The Preble and thus the market is considered unconcentrated banking market is concentrated, with a three-firm under the Board's guidelines. Based upon this fact and concentration ratio of 76 percent. There are, however, the structure of the market, the Board has determined a large number of probable future entrants into the that consummation of this proposal would not result in Preble County and Darke County markets. In addiany significant adverse effects on probable future tion, Winters' subsidiaries control 2 percent and less competition in the Dayton banking market. than 1 percent of the Preble and Darke banking The Cleveland market7 is moderately concentrated, markets, respectively. Accordingly, the Board conwith a four-firm concentration ratio of 72.7 percent. cludes that the proposal would not have substantial Banc One operates four banks in the market and adverse effects on probable future competition in the controls $434 million in commercial bank deposits Preble County or Darke County banking markets. representing 3.9 percent of market deposits. Winters is Banc One operates in thirty markets in which Winthe eighth largest commercial banking organization in ters does not operate.9 It appears that Winters has the the market, and controls $253.8 million in commercial financial and managerial resources to enter these marbank deposits representing 2.3 percent of the market's kets. Seventeen of these markets are small, rural deposits. Consummation of this proposal would in- markets with less than $250 million in commercial crease Banc One's market share to 6.2 percent. How- bank deposits and, thus, are excluded from analysis ever, Banc One would remain the sixth largest com- under the Board's guidelines because the possibilities mercial banking organization in the market and 22 for alternative procompetitive entry are limited. Of the commercial banking organizations would remain in the remaining thirteen markets, five of them have threemarket after consummation of the proposal. Thus, the firm concentration ratios of less than 75 percent. Board concludes that consummation of this proposal Moreover, each of the thirteen markets has numerous would not have an adverse effect on existing competi- other probable future entrants. Accordingly, the tion in the Cleveland market. Board concludes that consummation of the proposed The Board has considered the effects of this propos- merger would not have such adverse effects on probaal on probable future competition and also examined ble future competition in these markets as to warrant the proposal in light of its proposed guidelines for denial of the proposal. assessing the competitive effects of market extension The financial and managerial resources and future mergers and acquisitions.8 In evaluating the effects of prospects of Banc One, Winters and their respective a proposed merger or consolidation upon probable subsidiaries are considered satisfactory and consistent future competition, the Board considers market con- with approval. Although there is no evidence in the record indicating that the banking needs of the communities to be served are not being met, consumma- 6. See, Barnett Banks of Florida, 68 FEDERAL RESERVE BULLETIN tion of the merger would result in expanded services 180 (1982). 7. The Cleveland market is approximated by Cuyahoga, Lake, for Winters' customers, such as access to a statewide Lorain, and Geauga Counties; northern Medina County; the north- system of automated teller machines, more flexible west portion of Portage County and the northern township in Summit County, all in Ohio. 8. "Policy Statement of the Board of Governors of the Federal Reserve System for Assessing Competitive Factors Under the Bank 9. These markets are the Akron, Ashland, Ashtabula, Athens, Merger Act and the Bank Holding Company Act," 47 Federal Barnesville, Brown, Cadiz, Cambridge, Coshocton, Dover, Freeport, Register 9017 (March 3, 1982). Although the proposed policy state- Harden, Lima, Mansfield, Marion, Meigs, Morgan, Mount Gilead, ment has not been approved by the Board, the Board is using the New Lexington, Oxford, Salem, Sandusky, Scioto, Shelby, Steubenpolicy guidelines as part of its analysis of the effect of a proposal on ville, Wapakoneta, Wheeling, Windham, Wooster, and Youngstown probable future competition. banking markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 Federal Reserve Bulletin • May 1983 banking office hours, and a wider range of internation- indicate that approval of this proposal would result in al banking services. In addition, Banc One has com- undue concentration of resources, decreased or unfair mitted to inject additional capital into Winters' subsid- competition, conflicts of interests, unsound banking iary bank in Cleveland within six months of the practices or other adverse effects on the public interest merger. Thus, considerations relating to the conve- in any market. Accordingly, the Board has determined nience and needs of the community to be served are that the balance of the public interest factors it must consistent with approval. consider under section 4 of the Act is consistent with Banc One has also applied, pursuant to 4(c)(8) of the approval of the application. Act, to acquire Winters' three nonbanking subsidiar- Based on the foregoing and other facts of record, the ies, and the Board has weighed the possible adverse Board has determined that the applications under effects and reasonably expected public benefits associ- sections 3 and 4 of the Act should be and are hereby ated with the acquisition of each subsidiary. Winters approved. The merger shall not be made before the National Life Insurance Company reinsures credit life thirtieth calendar day following the effective date of and credit accident and health insurance for loan this Order, and neither the merger nor the acquisition customers of Winters' banking subsidiaries. This in- of the nonbanking subsidiaries shall be made later than surance is sold only in connection with loans made by three months after the effective date of this Order, Winters' respective subsidiaries and thus consumma- unless such period is extended for good cause by the tion of the proposal would not result in any significant Board or by the Federal Reserve Bank of Cleveland, adverse effects on competition. pursuant to delegated authority. The determination as Banc One Mortgage Company and Winters National to Banc One's acquisition of the nonbank subsidiaries Mortgage Corporation both engage in mortgage bank- is subject to the conditions set forth in section 225.4(c) ing. Banc One Mortgage Company functions solely as of Regulation Y (12 C.F.R. § 225.4(c)) and to the the servicing agent for mortgages originated by Banc Board's authority to require such modification or One's subsidiary banks. It originates no mortgage termination of the activities of a holding company or loans, nor does it extend any type of credit on its own. any of its subsidiaries as the Board finds necessary to Winters National Mortgage Corporation engages in assure compliance with the provisions and purposes of mortgage servicing activities but, unlike Banc One the Act and the Board's regulations and orders issued Mortgage, it also originates residential mortgages and thereunder, or to prevent evasion thereof. construction loans, primarily in the Dayton-Spring- By order of the Board of Governors, effective field vicinity. Because Banc One Mortgage conducts April 26, 1983. no mortgage origination activities, approval of the proposed transaction would not eliminate any direct Voting for this action: Chairman Volcker and Governors competition between these subsidiaries in the local Martin, Wallich, Partee, Rice, and Gramley. Voting against markets for residential mortgage originations or in the this action: Governor Teeters. Governor Wallich abstained from consideration of the application to acquire Winters national market for construction loans. Both affiliates National Life Insurance Company. do perform mortgage servicing activities. Neither company, however, holds any appreciable share of the WILLIAM W. WILES, national market for mortgage servicing, and there are [SEAL] Secretary of the Board numerous providers of this service. Accordingly, consummation would have no measurable effect on competition in this line of business. Dissenting Statement of Governor Teeters Finally, Banc One and Winters operate subsidiaries that engage in the leasing of personal property. The I dissent from the Board's action approving this applirecord indicates, however, that the companies serve cation. I believe that the merger of these two bank different segments of the market. Winters National holding companies will eliminate a significant amount Leasing Corporation has offices in Dayton and Cleve- of existing competition in the Columbus and Middleland and originates capital equipment leases for its town banking markets and will have a significant own customers and those of other Winters' affiliates. adverse effect on probable future competition in the Banc One Corporation does not originate leases for its Dayton, Akron, and Oxford banking markets. Moreown portfolio, but provides personal property leasing over, Winters and Banc One each are strong competifor affiliated banks. In light of this market segmenta- tors in Ohio and, without any corresponding public tion and the large number of suppliers of leasing benefits, one will be eliminated by consummation of services, consummation of this proposal would not this proposal. result in decreased competition in the leasing industry. Banc One and Winters currently compete directly in In addition, there is no evidence in the record to the Columbus banking market. Banc One is the third Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 383 largest commercial banking organization in the Colum- future entrant into these markets. In this regard, the bus market, controlling 19.6 percent of market depos- evidence indicates that the Akron banking market is its. Winters controls approximately 1 percent of the attractive for entry because the market's deposits for market's deposits. The Columbus banking market is the past two years have grown faster than the state and highly concentrated, with the four largest firms in the national averages. In addition, there are only three market controlling 85.9 percent of the market's depos- probable future entrants into Akron and the market is its. In light of the substantial market share controlled moderately concentrated with a three-firm ratio of 65.6 by Banc One and the highly concentrated nature of the percent. Thus, elimination of Winters as a probable market, I believe that consummation of this proposal future entrant, in my opinion, will have an adverse will eliminate significant existing competition in the effect on probable future competition in the Akron Columbus banking market. market. Banc One and Winters also directly compete in the The Oxford market also is very attractive for entry Middletown banking market, which contains only four by Winters. It is strategically located proximate to banks. Banc One is second largest commercial bank in other markets in which Winters currently operates and the market and controls 35.5 percent of market depos- has evidenced an average growth rate of deposits for its. Winters entered the market in 1981, by establishing the past two years that has been far above the national a branch bank that now controls approximately 1 and state averages. The market is highly concentrated, percent of the market's deposits. I believe that the with the three largest firms controlling 89.9 percent of elimination of competition between Banc One and the market's deposits. Also, Banc One is the largest Winters in the Middletown market, particularly in light bank in the market. In my opinion, the elimination of of the limited number of banking alternatives remain- Winters as an entrant will have an adverse effect on ing in that market, will have significant anticompeti- probable future competition in the Akron and Oxford tive results. banking markets. I further believe that consummation of this proposal In summary, I believe that the Board's action apwill result in the elimination of significant probable proving this application represents another situation in future competition in the Dayton, Akron, and Oxford which the Board's proposed guidelines relating to banking markets. In the Dayton market, for example, probable future competition permit combinations of Banc One plans to divest its existing subsidiary and to bank holding companies that have substantially antiacquire Winters. Winters is the largest banking organi- competitive consequences. I continue to believe the zation in the Dayton market with 33.6 percent of the Board should develop and apply standards that more deposits of commercial banks in the market. The realistically reflect the adverse effects of the eliminamarket's average growth rate of deposits for the past tion of probable future competition. two years has been greater than the average national April 26, 1983 growth rate for the same period and, because Banc One currently competes in Dayton, the market obviously is attractive for entry by Banc One. There are InterFirst Corporation, only five probable future entrants into the market with Dallas, Texas total assets over $1 billion. Finally, as the four largest firms in the market will control 76.9 percent of the Order Approving the Merger of Bank Holding market after the consummation of the proposed dives- Companies and the Acquisition of Companies titure, the market may be characterized as concentrat- Engaged in Insurance and Data Processing ed. Nonetheless, the Board would permit Banc One to Activities increase its market share by acquiring the largest banking organization in the market, even though less InterFirst Corporation, Dallas, Texas, a bank holding anticompetitive means certainly exist for Banc One to company within the meaning of the Bank Holding accomplish its objectives. Accordingly, I believe that Company Act ("Act"), has applied for the Board's consummation of the proposal will result in the elimi- approval under section 3(a)(5) of the Act (12 U.S.C. nation of significant probable future competition in the § 1842) to acquire the successor by merger to First Dayton market. United Bancorporation, Inc. ("First United"), Fort In addition, I am concerned about the elimination of Worth, Texas. As a result of the acquisition, Applicant probable future competition in the Akron and Oxford would acquire indirectly First United's 15 subsidiary banking markets. These are markets in which Banc banks. One, but not Winters, competes. Winters, however, Applicant has also applied for the Board's approval has been an aggressive competitor in entering new under section 4(c)(8) of the Act (12 U.S.C. markets and should be considered a likely probable § 1843(c)(8)) and section 225.4(b)(2) of the Board's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 Federal Reserve Bulletin • May 1983 Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire view that consummation of this acquisition would not Texas Credit Life Insurance Company, Fort Worth, have any significantly adverse effects on the concen- Texas, a company that engages in underwriting of life, tration of commercial banking resources in Texas. accident, and health insurance policies directly related In order to assess the competitive effects of a merger to extensions of credit by subsidiaries of First United, under section 3 of the Act, the Board must first and First United Services, Inc., Fort Worth, Texas, a determine the appropriate relevant geographic market. company that engages in data processing activities. The Board has previously indicated that the relevant These activities have been determined by the Board to geographic market within which to evaluate the effects be closely related to banking and permissible for bank of a transaction must reflect commercial and banking holding companies (12 C.F.R. § 225.4(a)(8) and (a)(10)) realities and should consist of the localized area where and this determination has not been affected by the the banks involved offer their services and where local recent amendments to section 4(c)(8) of the Act limit- customers can practicably turn for alternatives.3 In ing the permissible insurance activities of bank holding view of certain demographic and other economic decompanies.1 velopments in the Dallas-Fort Worth area of Texas, Notice of the applications, affording opportunity for the Board has considered whether the two cities and interested persons to submit comments and views, has their respective adjoining areas have become one been given in accordance with sections 3 and 4 of the relevant geographic market and, thus, whether con- Act (47 Federal Register 55734 (1982)). The time for summation of the proposal would substantially lessen filing comments and views has expired, and the Board competition between the subsidiary banks of Applihas considered the applications and all comments cant and First United in this market. received in light of the factors set forth in section 3(c) Dallas and Fort Worth are 30 miles apart and are of the Act (12 U.S.C. § 1842(c)) and the considerations separated by a number of smaller communities (the specified in section 4(c)(8) of the Act. "mid-cities"). In previous cases, the Board consid- Applicant is the largest banking organization in ered Dallas and Fort Worth as separate banking mar- Texas with 52 subsidiary banks that control aggregate kets. The record shows that recently, there has been deposits of $14.4 billion, representing 11.56 percent of substantial economic and demographic development the total deposits in commercial banks in the state.2 in the "mid-cities" region. There has been consider- First United is the tenth largest banking organization able growth in the populations of the communities in the state, with 15 banking subsidiaries that control between the two cities and considerable commercial aggregate deposits of $1.9 billion, representing 1.52 development in this area, including construction of the percent of the total deposits in commercial banks in airport that is located between the two cities. This the state. Upon consummation of the proposed acqui- evidence indicates that, through economic and demosition and all planned divestitures, Applicant's share graphic evolution, Dallas and Fort Worth might be in of the total deposits in commercial banks in the state the process of merging into a single metropolitan would increase to 12.7 percent. Although the Board is banking market and that competitive influences in one concerned about the effect of this merger of the largest city are transmitted to the other city. and tenth largest banking organizations in Texas on Although the record contains some evidence demthe concentration of banking resources within the onstrating that these two markets might be merging state, certain conditions that would exist after the into a single banking market, the record indicates that proposed acquisition mitigate that concern. A number there is little deposit overlap between banks headquarof other large multibank holding companies, which are tered in Dallas and banks headquartered in Fort Worth active competitors throughout the state, would remain and little cross-area advertising of commercial banking upon consummation of this proposal, and the share of services. In addition, the available evidence does not commercial bank deposits held by the four largest indicate that substantial commuting occurs between banking organizations in Texas would increase to only the cities of Dallas and Fort Worth. Thus, it does not 40.3 percent after consummation of the proposed appear at this time that banks in one city provide a merger. Thus, Texas would remain one of the least commercial banking alternative to banking customers concentrated states in the United States upon consum- in the other city. The Board therefore concludes that mation of the proposal. Accordingly, it is the Board's the relevant geographic markets within which to evaluate the competitive effects of this proposal are the 1. See Garn-St Germain Depository Institutions Act of 1982, Pub. L. No. 97-320, § 601, 96 Stat. 1469, 1536-38 (1982). 2. Unless otherwise indicated, deposit data are as of June 30, 1982, 3. Wyoming Bancorporation, 68 FEDERAL RESERVE BULLETIN 313, and reflect bank holding company formations and acquisitions ap- 314 (1982); St. Joseph Valley Bank, 68 FEDERAL RESERVE BULLETIN proved as of December 31, 1982. 673, 674 (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 385 Dallas4 and Fort Worth5 banking markets as previous- cial banks in the market. First United's subsidiary in ly defined by the Board. the market, State National Bank of Odessa, is the Subsidiary banks of Applicant compete directly with market's second largest banking organization with subsidiary banks of First United in the Dallas, Odessa, $155.3 million in deposits, representing 19.9 percent of and Killeen-Temple banking markets. On September 30, the total deposits in commercial banks in the market. 1982, Applicant sold its only bank in the Fort Worth The Odessa banking market contains six banks and the market—InterFirst Bank Cleburne, N.A., Cleburne, four-firm concentration ratio in this market is 80.6 Texas.6 As a result of this divestiture to private percent. A combination of Applicant and First United investors, consummation of this proposal would not in the market would result in a single banking organiresult in elimination of existing competition between zation controlling 45.1 percent of the total deposits in Applicant and First United in the Fort Worth market. commercial banks in the market and an increase in the Applicant's lead bank, InterFirst Bank of Dallas market's four-firm concentration ratio from 80.6 per- (total deposits of $6.0 billion), is the largest banking cent to 93.3 percent. In the Board's view, the effect of organization in the Dallas banking market and holds this transaction, absent any planned divestiture, may 29.9 percent of the total deposits in commercial banks be substantially to lessen competition in the Odessa in the market. First United is the sixteenth largest market. However, First United has committed to banking organization in the Dallas market, with four divest all of its interest in State National Bank of subsidiary banks located in suburban areas of the Odessa to Southwest Bancshares, Inc., Houston, Texmarket that hold $99.2 million in deposits, represent- as, on or before the date of consummation of the ing 0.4 percent of the total deposits in commercial proposed merger.9 The Board concludes that the sale banks in the market. The Dallas banking market has a of State National Bank, if consummated on or before four-firm concentration ratio of 74.1 percent and an the consummation of Applicant's acquisition of First Herfindahl-Hirschman Index ("HHI") of 1874.7 While United, will eliminate any substantial adverse effects consummation of the acquisition would eliminate on existing competition that might otherwise be prosome existing competition in the Dallas banking mar- duced by this merger in the Odessa market. ket, the competitive effect of this transaction in the Applicant is the largest banking organization in the Dallas market would not be so adverse as to warrant Killeen-Temple banking market, with two subsidiary denial in view of the small market share and absolute banks holding total deposits of $117.4 million, represize of First United in the Dallas banking market and senting 18.6 percent of the total deposits in commerthe number of banking alternatives remaining in the cial banks in the market.10 First United, which estabmarket. lished its subsidiary in this market de novo in 1974, is Applicant is the largest banking organization in the the eleventh largest organization in the market with Odessa banking market8 with a single banking subsid- total deposits of $24.4 million, representing 3.9 percent iary that controls total deposits of $197.1 million, of the total deposits in commercial banks in the representing 25.2 percent of total deposits in commer- market. In order to eliminate any anticompetitive effect that might result in this market from Applicant's acquisition of First United, First United has committed to divest its subsidiary in this market, Citizens 4. The Dallas banking market is approximated by Dallas County, National Bank of Temple, to Texas American Bancthe southeast quadrant of Denton County (including Denton and Lewisville), the southwest quadrant of Collin County (including shares, Fort Worth, Texas, on or before the date of McKinney and Piano), the northern half of Rockwall County, the consummation of the proposed merger. Based upon communities of Forney and Terrell in Kaufman County, Midlothian, Waxahatchie, and Ferris in Ellis County, and Grapevine and Arling- First United's commitment to divest its bank in the ton in Tarrant County. Killeen-Temple banking market, the Board concludes 5. The Fort Worth, banking market is approximated by Tarrant that the proposed merger would not have any signifi- County excluding Grapevine and Arlington, the community of Cleburne in Johnson County, the eastern half of Parker County (including cant effect on existing competition in this market. Weatherford and Springtown), the communities of Boyd and Rhome in Wise County, and the community of Roanoke in Denton County. 6. Deposit data for InterFirst's Fort Worth bank have been excluded from the data appearing in this order. 9. The Board's policy with regard to competitive divestitures, as 7. Under the Department of Justice's merger guidelines, in a stated in its Order approving the acquisition by Barnett Banks of market where the post-merger HHI is 1800 or more, the Department is Florida, Inc., Jacksonville, Florida, of First Marine Banks, Inc., unlikely to challenge a merger that produces an increase in the HHI of Riviera Beach, Florida, 68 FEDERAL RESERVE BULLETIN 190 (1982), less than 50 points. In this case, the increase in the HHI would be only requires that divestitures intended to cure the anticompetitive effects 21 points, from 1874 to 1895, and therefore the merger is not likely to resulting from a merger or acquisition occur on or before the date of be challenged under the guidelines. consummation of the merger to avoid the existence of anticompetitive 8. The Odessa market is approximated by the Odessa SMSA. elFects. See also InterFirst Corporation, 68 FEDERAL RESERVE BUL- Deposit data are as of December 31, 1981, reflecting bank holding LETIN 243 (1982). company formations and acquisitions approved as of November 30, 10. The Killeen-Temple market is approximated by the Killeen- 1982. Temple SMSA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 Federal Reserve Bulletin • May 1983 There are 25 markets in Texas in which either subsidiary that will be divested upon consummation of Applicant or First United, but not both, competes.11 this proposal. While these divestitures eliminate any The Board has considered the effects of the proposal adverse effect the proposal may have upon existing on probable future competition in these geographic competition, the Board must examine the proposal for markets and has also examined the proposal in light of any adverse effect upon probable future competition in its proposed guidelines for assessing the competitive these markets. Because of its size and financial reeffects of market extension mergers and acquisitions.12 sources, and the fact that it had already entered these In evaluating the effects of a proposed merger or markets, First United is viewed as a likely probable acquisition upon probable future competition, the future entrant into these markets. However, the Kil- Board considers market concentration, the number of leen-Temple market is unconcentrated and there are probable future entrants into the market, the attrac- numerous probable future entrants into the Odessa tiveness of the market for de novo and/or foothold market. Therefore, the Board does not view the elimientry, and the size and market position of the firm to nation of First United as a probable future entrant into be acquired. The Board has also considered the likeli- these markets as substantially anticompetitive. hood that Applicant or First United would enter each Of the remaining 20 markets in which only InterFirst other's markets de novo or on a foothold basis absent now competes, ten are rural markets not located in approval of the acquisition. SMSA's into which there are numerous probable In view of the proximity of the Dallas and Fort future entrants besides First United. Moreover, eight Worth markets and the fact that Applicant had estab- of these ten markets have total deposits in commercial lished a banking subsidiary in the Fort Worth banking banks of less than $250 million. Of the remaining 10 market which it sold in anticipation of this transaction, markets, five are not highly concentrated, one has the Board believes that Applicant is a likely probable numerous other probable future entrants besides First future entrant into the Fort Worth market absent United, and in four, InterFirst's subsidiary bank is not approval of this proposal. However, the Fort Worth among the three largest competitors in the market or banking market is not highly concentrated as indicated does not control a market share of 10 percent or more. by a three-firm concentration ratio of 63.6 percent, and Based on the foregoing and other facts of record, there is no indication that the market is not competi- including the specific economic, demographic, and tive. Thus, the Board does not view the elimination of structural characteristics of all of the relevant geo- Applicant as a probable future entrant into the market graphic markets, the Board concludes that consummaas having a substantial adverse effect on probable tion of the proposal would not have any significant future competition in the market. adverse effect on probable future competition in any There are two other markets in which First United, relevant market. Thus, competitive considerations are but not Applicant, competes. These are rural markets, consistent with approval of the application. not located in SMSA's and each market has total The financial and managerial resources of Applicant deposits of less than $250 million. In addition, there and its subsidiaries are regarded as generally satisfacare numerous other probable future entrants into each tory, and their future prospects appear favorable. of the markets. Accordingly, the Board finds that Since this transaction will be accomplished through an consummation of the proposal will not have a substan- exchange of shares, it will not have any adverse effect tially adverse effect on probable future competition in on Applicant's financial resources. Financial and manthese markets. agerial considerations are, therefore, consistent with As noted, there are two markets, Odessa and Kil- approval of the application. Considerations relating to leen-Temple, in which First United has a banking the convenience and needs of the communities to be served are also consistent with approval of the application. Applicant has also applied, pursuant to section 4(c)(8) of the Act, to acquire Texas Credit Life Insur- 11. The 22 markets in which only Applicant operates are: Abilene, ance Company ("Texas Credit"), Fort Worth, Texas, Austin, Beaumont, Bosque County, Brownsville-Harlingen, El Paso, Ennis County, Galveston, Henderson County, Hill County, Houston, a wholly-owned subsidiary of First United, through Hunt County, Kaufman County, Lamar County, Navarro County, which Applicant proposes to engage in underwriting, San Antonio, Sherman-Denison, Titus County, Tyler, Victoria Coundirectly or as reinsurer, of credit life and credit accity, Waco, and Wichita Falls. The three markets in which only First United competes are Fort Worth, Brown County, and Erath County. dent and health insurance directly related to exten- 12. "Proposed Policy Statement of the Board of Governors of the sions of credit by the banking subsidiaries acquired by Federal Reserve System for Assessing Competitive Factors Under the Applicant from First United. Credit life and credit Bank Merger Act and the Bank Holding Company Act," 47 Federal Register 9017 (March 3, 1982). While the proposed policy statement accident and health insurance policies are generally has not been approved by the Board, the Board is using the policy made available by banks and other lenders and are guidelines in its analysis of the effects of a proposal on probable future designed to assure repayment of a loan in the event of competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 387 death or disability of the borrower. In connection with must consider under section 4(c)(8) of the Act is its addition of the underwriting of such insurance to favorable and consistent with approval of the applicathe list of permissible activities for bank holding tions to acquire Texas Credit and First United Sercompanies, the Board stated: vices, Inc. Based on the foregoing and the facts of record, the To assure that engaging in the underwriting of credit Board has determined that the applications under life and credit accident and health insurance can section 3(a)(5) and 4(c)(8) of the Act should be and reasonably be expected to be in the public interest, the hereby are approved subject to the condition that Board will only approve applications in which an complete divestiture of Citizens National Bank of applicant demonstrates that approval will benefit the Temple and State National Bank of Odessa take place consumer or result in other public benefits. Normally on or before the date of consummation of the merger such a showing would be made by a projected reand that the merger shall not be made before the duction in rates or increase in policy benefits due to bank holding company performance of this service. thirtieth calendar day following the effective date of 12 C.F.R. § 225.4(a)(10), n. 7. this Order and neither the merger nor the acquisition of the nonbanking subsidiaries shall occur later than At the time First United applied to engage in these three months after the effective date of this Order, activities through Texas Credit, it committed to main- unless such period is extended for good cause by the tain reduced rates following approval of the applica- Board or by the Federal Reserve Bank of Dallas tion, a result the Board regards as being in the public pursuant to delegated authority. The determinations as interest. That commitment is reflected in the order to Applicant's nonbanking activities are subject to the approving these activities issued by the Federal Re- conditions set forth in section 225.4(c) of Regulation Y serve Bank of Dallas on December 5, 1977. As a (12 C.F.R. § 225.4(c)) and to the Board's authority to condition of approval of this application, Applicant require such modification or termination of the activiwill be expected to honor First United's commitment ties of a holding company or any of its subsidiaries as with respect to reduced rates. the Board finds necessary to assure compliance with It does not appear that Applicant's acquisition of the provisions and purposes of the Act and the Board's Texas Credit would have any significant adverse ef- regulations and orders issued thereunder, or to prefects upon existing or potential competition. Although vent evasion thereof. Applicant engages, through several subsidiaries, in By order of the Board of Governors, effective these same activities, with respect to its banking April 20, 1983. subsidiaries, no adverse competitive effect would result from this acquisition because the services of Voting for this action: Vice Chairman Martin and Governors Partee, Rice, and Gramley. Voting against this action: Texas Credit would be limited to insurance with Governor Teeters. Absent and not voting: Chairman Volcker respect to extensions of credit made by the banking and Governor Wallich. subsidiaries of First United acquired through this transaction. JAMES MCAFEE, Furthermore, there is no evidence in the record to [SEAL] Associate Secretary of the Board indicate that approval of this proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking Preferred Equity Investors of Florida, Inc., practices or other adverse effects on the public Knoxville, Tennessee interest. Applicant has also applied, pursuant to section Order Approving Formation of a Bank Holding 4(c)(8) of the Act to acquire First United Services, Company and Acquisition of Companies Engaged in Inc., Fort Worth, Texas, a company that would pro- Mortgage Financing, Insurance, Data Processing, vide data-processing services to bank subsidiaries of and Leasing Activities First United. It does not appear that Applicant's acquisition of this subsidiary would have any signifi- Preferred Equity Investors of Florida, Inc., Knoxville, cant adverse effects upon existing or potential compe- Tennessee ("Preferred Equity"), has applied for the tition. Furthermore, there is no evidence in the record Board's approval under section 3(a)(1) of the Bank to indicate that approval of this proposal would result Holding Company Act (12 U.S.C. § 1842(a)(1)) in undue concentration of resources, decreased or ("Act") to become a bank holding company by acquirunfair competition, conflicts of interests, unsound ing approximately 28.6 percent of the voting shares of banking practices or other adverse effects on the Landmark Banking Corporation of Florida, Fort Laupublic interest. Accordingly, the Board has deter- derdale, Florida ("Landmark"), and, thereby, indimined that the balance of the public interest factors it rectly acquiring an interest in Landmark's five subsid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 Federal Reserve Bulletin • May 1983 iary banks: Landmark Bank of Brevard, Melbourne, Upon acquisition of its interest in Landmark, Appli- Florida ("Brevard Bank"); Landmark First National cant would control the tenth largest banking organiza- Bank of Fort Lauderdale, Fort Lauderdale, Florida tion in Florida, with approximately $1 billion in depos- ("Fort Lauderdale Bank"); Landmark Bank of Tam- its, representing 2.4 percent of the total deposits in pa, Tampa, Florida ("Tampa Bank"); Landmark Bank commercial banks in the state.2 of Orlando, Orlando, Florida ("Orlando Bank"); and None of Landmark's subsidiary banks compete in Landmark Union Trust Bank of St. Petersburg, N.A., the same banking market. Brevard Bank is the third St. Petersburg, Florida ("St. Petersburg Bank"), (col- largest of eight commercial banking organizations in lectively, "Banks"). the South Brevard County banking market and holds Preferred Equity has also applied for the Board's approximately 18.41 percent3 of total deposits in comapproval under section 4(c)(8) of the Act (12 U.S.C. mercial banks in the market.4 Fort Lauderdale Bank § 1843(c)(8)) to acquire indirectly an interest in the competes in the Miami-Fort Lauderdale banking marfollowing nonbanking subsidiaries of Landmark: (1) ket and is the fifth largest of 68 commercial banking Landmark Mortgage Corporation, with offices in Sun- organizations in the market, controlling about 4.09 rise and St. Petersburg, Florida, which engages in the percent of total commercial bank deposits therein.5 origination of mortgages on real estate and the sale of Tampa Bank, Orlando Bank, and St. Petersburg Bank mortgages to institutional investors; (2) Landmark compete in the Tampa, Orlando, and Pinellas County, Agency, Inc., Fort Lauderdale, Florida, which en- banking markets, respectively.6 Tampa Bank is the gages in the sale of credit life and disability insurance eighth largest of 24 banking organizations in the Tamin connection with loans made by Landmark's subsid- pa banking market, holding approximately 3.53 periaries; (3) Landmark Data Services Corporation, locat- cent of commercial bank deposits therein. Orlando ed in Fort Lauderdale, St. Petersburg, and Orlando, Bank is the eleventh largest of 21 commercial banking Florida, which engages in the provision of data proc- organizations in the Orlando market, controlling 2.09 essing and transmission services for Landmark and its percent of commercial bank deposits in the market. St. subsidiaries and for other banks, where the data to be Petersburg Bank is the second largest of 32 banking processed is financial, banking, or economic in nature; organizations in the Pinellas County market, holding and, (4) Capital America, Inc., with offices in Fort approximately 8.50 percent of total deposits in com- Lauderdale and Orlando, Florida, and in Atlanta, mercial banks in the relevant market. Neither Appli- Georgia, (5) Capital Associates, Inc., located in Pom- cant nor any of its principals is affilated with any other pano Beach, Florida, and Atlanta, Georgia, and (6) banking organization in any of the relevant markets, American Capital Leasing, Inc., Rolling Meadows, and it appears that consummation of the proposal Illinois, all three of which engage in the leasing of would not result in any adverse effects upon competipersonal property and equipment. These activities tion or in an increase in the concentration of banking have been determined by the Board to be closely resources in any relevant area. Accordingly, the Board related to banking (12 C.F.R. §§ 225.4(a)(1), (6), (8), concludes that competitive considerations are consist- (9)). ent with approval of the application. Notice of the applications, affording an opportunity The financial and managerial resources and future for interested persons to submit comments, has been prospects of Preferred Equity, Landmark, and its given in accordance with sections 3 and 4 of the Act subsidiaries are regarded as generally satisfactory and (47 Federal Register 55034 (1982)). The time for filing consistent with approval. Considerations relating to comments has expired, and the Board has considered the convenience and needs of the communities to be the applications and all comments received in light of served also are consistent with approval. Further, the factors set forth in section 3(c) and the consider- there is no evidence in the record to indicate that ations specified in section 4 of the Act. approval of this proposal would result in undue con- Applicant, a nonoperating Florida corporation, was organized for the purpose of becoming a bank holding company by acquiring all of Landmark's newly issued cumulative convertible preferred stock, which repre- 2. Landmark banking data are as of June 30, 1982. sents approximately 28.6 percent of the total voting 3. Banking data for Banks are as of June 30, 1981. power in Landmark.1 4. The South Brevard County banking market is approximated by Brevard County, south of the town of Bonaventure, Florida. 5. The Miami-Fort Lauderdale banking market is approximated by Broward and Dade Counties, Florida. 6. The Tampa banking market is approximated by Hillsborough County, and the community of Land O'Lakes in Pasco County, 1. Although Applicant has agreed to certain restrictions on the Florida. The Orlando market is approximated by Orange and Osceola voting and disposition of its preferred stock interest in Landmark, Counties, and the southern half of Seminole County, Florida. The Applicant would nevertheless control Landmark for purposes of the Pinellas County banking market is approximated by Pinellas County, BHC Act. (12 U.S.C. § 1841(a)(2)(A)). Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 389 centration of resources, decreased or unfair competi- bank subsidiaries is subject to the conditions set forth tion, conflicts of interest, unsound banking practices in section 225.4(c) of Regulation Y (12 C.F.R. or other adverse effects on the public interest. Accord- § 225.4(c)) and to the Board's authority to require such ingly, the Board has determined that the balance of the modification or termination of the activities of a holdpublic interest factors it must consider under section 4 ing company or any of its subsidiaries as the Board of the Act is consistent with approval of the applica- finds necessary to assure compliance with the provition. sions and purposes of the Act and the Board's regula- Based on the foregoing and other facts of record, the tions and orders issued thereunder, or to prevent Board has determined that the applications should be evasion thereof. and hereby are approved. By order of the Board of Governors, effective The acquisition of Landmark's shares shall not be April 11, 1983. made before the thirtieth calendar day following the effective date of this Order, or later than three months Voting for this action: Chairman Volcker and Governors after the effective date of this Order, unless such Teeters, Rice, and Gramley. Absent and not voting: Governors Martin, Wallich, and Partee. period is extended for good cause by the Board or by the Federal Reserve Bank of Atlanta acting pursuant to delegated authority. The determination as to Pre- JAMES MCAFEE, ferred Equity's acquisition of an interest in the non- [SEAL] Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During April 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) Barnett Banks of Florida, Inc. Barnett Bank of Osceola County, April 29, 1983 Jacksonville, Florida N.A., Kissimmee, Florida First Dickson Corporation, The First National Bank of Dickson, April 27, 1983 Dickson, Tennessee Dickson, Tennessee 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 D i / -V Reserve Effective A r AppllCant Bank(s) Bank date Alvord Financial Corporation, Alvord National Bank, Dallas April 8, 1983 Alvord, Texas Alvord, Texas American Bankshares, Inc., The American Bank, Atlanta April 1, 1983 Bowman, Georgia Bowman, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 Federal Reserve Bulletin • May 1983 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date Americorp Financial, Inc., American National Bank Chicago March 29, 1983 Rockford, Illinois and Trust Co., Rockford Illinois Colonial Bank of Rockford, Rockford, Illinois First National Bank of Woodstock, Woodstock, Illinois Carpentersville Savings Bank, Carpentersville, Illinois Auburn Security Bancshares, Inc., The Security State Bank, Kansas City April 11, 1983 Auburn, Kansas Auburn, Kansas Bank of New Hampshire Corpora- The Bristol Bank, Boston April 15, 1983 tion, Bristol, New Hampshire Manchester, New Hampshire Bay Bancorporation, Bay Bank of Commerce, San Francisco March 31, 1983 San Leandro, California San Leandro, California Bay Bancshares, Inc., Bayshore National Bank of La Porte Dallas April 4, 1983 La Porte, Texas La Porte, Texas Bayport National Bank, La Porte, Texas Bazine Bancorp, Inc., The Bazine State Bank, Kansas City April 4, 1983 Bazine, Kansas Bazine, Kansas CCB Financial Corporation, Central Carolina Bank and Trust Richmond April 4, 1983 Durham, North Carolina Company, Durham, North Carolina Choteau Bancorporation, Inc., The Citizens State Bank of Choteau, Minneapolis April 19, 1983 Choteau, Montana Choteau, Montana Commerce Bancorp, Inc., Commerce Bank, N.A., Philadelphia April 17, 1983 Marlton, New Jersey Marlton, New Jersey Dekalb Financial Corp., Citizens State Bank, Chicago March 29, 1983 Waterloo, Indiana Waterloo, Indiana Egyptian Bancshares, Inc., The Egyptian State Bank, St. Louis April 15, 1983 Carrier Mills, Illinois Carrier Mills, Illinois Fairplay Bancorporation, Inc., The Bank of Fairplay, Kansas City April 8, 1983 Fairplay, Colorado Fairplay, Colorado Farmers Bancshares of Erick, Inc., The Farmers National Bank of Erick, Kansas City April 11, 1983 Erick, Oklahoma Erick, Oklahoma First City Financial Corporation, Bank of the Southwest, Dallas March 28, 1983 Albuquerque, New Mexico Rio Rancho, New Mexico First Citizens Bancshares Corpora- First Bank, Atlanta March 29, 1983 tion, Pineville, Louisiana Pineville, Louisiana First Granite Bancorporation, Inc., Colonial Bank of Granite City, St. Louis April 12, 1983 Granite City, Illinois Granite City, Illinois First Guaranty Corporation, The First Guaranty Bank, Cleveland March 21, 1983 Martin, Kentucky Martin, Kentucky First National of Nebraska, Inc., Valley State Bank, Kansas City April 14, 1983 Omaha, Nebraska Yankton, South Dakota First Overton Bancorp, Bank of Overton, Kansas City April 15, 1983 Overton, Nebraska Overton, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 391 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date First Service Bancshares, Inc., First State Bank of Greenville, St. Louis April 4, 1983 Greenville, Kentucky Greenville, Kentucky First United Corporation, Ashland Capital Corporation, Atlanta April 8, 1983 Jackson, Mississippi Ashland, Alabama First National Bank of Ashland, Ashland, Alabama Gaines Bancshares, Inc., First National Bank, Dallas April 8, 1983 Seminole, Texas Seminole, Texas Kansas National Bancorporation, The First Insurance Agency, Inc., Kansas City April 13, 1983 Inc., Goodland, Kansas Goodland, Kansas First National Bank, Goodland, Kansas Lake Bancshares Corporation, Bank of the Lakes, Kansas City April 14, 1983 Langley, Oklahoma Langley, Oklahoma Michigan Bancorp, Inc., Western State Bank, Chicago April 13, 1983 South Bend, Indiana South Bend, Indiana Middle States Bancorporation, Inc., Colona Avenue State Bank Chicago April 15, 1983 East Moline, Illinois East Moline, Illinois North Central Financial Corporation, The Bank of North Arkansas, St. Louis March 30, 1983 Melbourne, Arkansas Melbourne, Arkansas Orange Bancorp, Prudential Bancorp, San Francisco April 5, 1983 Fountain Valley, California Long Beach California Southern Pacific Thrift and Loan Association, Long Beach, California Outagamie Bank Shares, Inc., The Outagamie Bank, Chicago March 31, 1983 Appleton, Wisconsin Appleton, Wisconsin Phalia Bancshares, Inc., State Bank of Westphalia, Kansas City March 28, 1983 Westphalia, Kansas Westphalia, Kansas Pharr Financial Corporation, Security State Bank, Dallas April 8, 1983 Pharr, Texas Pharr, Texas St. Paul Bancorporation, Inc., St. Paul National Bank, Kansas City March 29, 1983 St. Paul, Nebraska St. Paul, Nebraska South Mississippi Capital Company, South Mississippi Bank, Atlanta April 4, 1983 Prentiss, Mississippi Prentiss, Mississippi Sunshine Bankshares Corporation, Sunshine Bank, Atlanta April 11, 1983 Fort Walton Beach, Florida Fort Walton Beach, Florida T-Mark, Inc., Farmers State Bank, Kansas City April 5, 1983 Cheyenne, Wyoming Lyman, Nebraska Texas Independent Bancshares, Inc., Bank of the West, Dallas April 19, 1983 Hitchcock, Texas Galveston, Texas WCB Corporation, Winnebago County Bank, Chicago April 7, 1983 Omro, Wisconsin Omro, Wisconsin Windsor Bancorporation, Inc., Bank of Windsor, Kansas City April 15, 1983 Windsor, Colorado Windsor, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 Federal Reserve Bulletin • May 1983 Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant company or activity Bank date St. Ansgar Bancorporation, St. Ansgar State Bank, Chicago April 8, 1983 St. Ansgar, Iowa St. Ansgar, Iowa To engage in general insurance activities ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date C. C. State Bank, The Citizens Commercial Cleveland March 28, 1983 Celina, Ohio Bank & Trust Company, Celina, Ohio Citizens Bank, Citizens South Side Bank, Chicago April 11, 1983 Sheboygan, Wisconsin Sheboygan, Wisconsin Citizens Bank of Manitowoc, Manitowoc, Wisconsin BNH Acquisition Bank, The Bristol Bank, Boston April 15, 1983 Manchester, New Bristol, New Hampshire Hampshire First Virginia Bank, Farmers and Merchants Richmond March 30, 1983 Falls Church, Virginia State Bank, Fredericksburg, Virginia PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits Association of Data Processing Service Organizaagainst the Federal Reserve Banks in which the Board tions, Inc., et al. v. Board of Governors, filed of Governors is not named a party. August 1982, U.S.C.A. for the District of Columbia. Bowler v. Treasurer of the U.S., et al, filed July 1982, Jet Courier Services, Inc., et al. v. Federal Reserve U.S.C.A. for the First Circuit. Bank of Atlanta, et al., filed February 1983, The Philadelphia Clearing House Association, et al. v. U.S.C.A. for the Sixth Circuit. Board of Governors, filed July 1982, U.S.D.C. for Securities Industry Association v. Board of Gover- the Eastern District of Pennsylvania. nors, et al., filed February 1983, U.S.C.A. for the Richter v. Board of Governors, et al., filed May 1982, Second Circuit. U.S.D.C. for the Northern District of Illinois. Flagship Banks, Inc. v. Board of Governors, filed Wyoming Bancorporation v. Board of Governors, filed January 1983, U.S.D.C. for the District of Colum- May 1982, U.S.C.A. for the Tenth Circuit. bia. First Bancorporation v. Board of Governors, filed Flagship Banks, Inc. v. Board of Governors, filed April 1982, U.S.C.A. for the Tenth Circuit. October 1982, U.S.D.C. for the District of Colum- Charles G. Vick v. Paul A. Volcker, et al., filed March bia. 1982, U.S.D.C. for the District of Columbia. Hayton v. State of Utah, et al., filed September 1982, Jolene Gustafson v. Board of Governors, filed March U.S.D.C. for the District of Utah. 1982, U.S.C.A. for the Fifth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 393 Edwin F. Gordon v. Board of Governors, et al., filed 9 to 5 Organization for Women Office Workers v. October 1981, U.S.C.A. for the Eleventh Circuit Board of Governors, filed December 1980, (two consolidated cases). U.S.D.C. for the District of Massachusetts. 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.C.A. 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. August 1980, U.S.C.A. for the District of Columbia. First Bank & Trust Company v. Board of Governors, Berkovitz, et al. v. Government of Iran, et al., filed filed February 1981, U.S.D.C. for the Eastern Dis- June 1980, U.S.D.C. for the Northern District of trict of Kentucky. California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS Domestic Financial Statistics WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and liabilities A4 Reserves of depository institutions, Reserve A20 All reporting banks Bank credit A21 Banks with assets of $1 billion or more A5 Reserves and borrowings of depository All Banks in New York City institutions A23 Balance sheet memoranda A6 Federal funds and repurchase agreements of A24 Branches and agencies of foreign banks large member banks A24 Commercial and industrial loans A25 Gross demand deposits of individuals, partnerships, and corporations POLIC YINSTR UMENTS A7 Federal Reserve Bank interest rates FINANCIAL MARKETS A8 Reserve requirements of depository institutions A9 Maximum interest rates payable on time and A26 Commercial paper and bankers dollar savings deposits at federally insured institutions acceptances outstanding All Federal Reserve open market transactions All Prime rate charged by banks on short-term business loans All Terms of lending at commercial banks FEDERAL RESERVE BANKS A28 Interest rates in money and capital markets A29 Stock market—Selected statistics A12 Condition and Federal Reserve note statements A30 Selected financial institutions—Selected assets A13 Maturity distribution of loan and security and liabilities holdings FEDERAL FINANCE MONETAR Y AND CREDIT AGGREGA TES A31 Federal fiscal and financing operations A14 Aggregate reserves of depository institutions A32 U.S. budget receipts and outlays and monetary base A33 Federal debt subject to statutory limitation A15 Money stock measures and components A33 Gross public debt of U.S. Treasury—Types and A16 Bank debits and deposit turnover ownership A17 Loans and securities of all commercial banks A34 U.S. government securities dealers— Transactions, positions, and financing A35 Federal and federally sponsored credit COMMERCIAL BANKING INSTITUTIONS agencies—Debt outstanding 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 • May 1983 SECURITIES MARKETS AND International Statistics CORPORATE FINANCE A54 U.S. international transactions—Summary A36 New security issues—State and local A55 U.S. foreign trade governments and corporations A55 U.S. reserve assets A37 Open-end investment companies—Net sales and A55 Foreign official assets held at Federal Reserve asset position Banks A3 7 Corporate profits and their distribution A56 Foreign branches of U.S. banks—Balance sheet A38 Nonfinancial corporations—Assets and data liabilities A58 Selected U.S. liabilities to foreign official A38 Total nonfarm business expenditures on new institutions plant and equipment A39 Domestic finance companies—Assets and liabilities and business credit REPORTED BY BANKS IN THE UNITED STATES A58 Liabilities to and claims on foreigners REAL ESTATE A59 Liabilities to foreigners A61 Banks' own claims on foreigners A40 Mortgage markets A62 Banks' own and domestic customers' claims on A41 Mortgage debt outstanding foreigners A62 Banks' own claims on unaffiliated foreigners A63 Claims on foreign countries—Combined CONSUMER INSTALLMENT CREDIT domestic offices and foreign branches A42 Total outstanding and net change A43 Terms REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES FLOW OF FUNDS A64 Liabilities to unaffiliated foreigners A65 Claims on unaffiliated foreigners A44 Funds raised in U.S. credit markets A45 Direct and indirect sources of funds to credit markets SECURITIES HOLDINGS AND TRANSACTIONS A66 Foreign transactions in securities Domestic Nonfinancial Statistics A67 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A46 Nonfinancial business activity—Selected measures A46 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A47 Labor force, employment, and unemployment A48 Industrial production—Indexes and gross value A67 Discount rates of foreign central banks A50 Housing and construction A68 Foreign short-term interest rates A51 Consumer and producer prices A68 Foreign exchange rates A52 Gross national product and income A53 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1982 1983 1982 1983 Q2 Q3 Q4 Ql Nov. Dec. Jan. Feb. Mar. Reserves of depository institutions 1 Total 4.8 5.1 11.0 1.1 14.3 11.1 -19.5 6.6 19.7 2 Required 5.4 4.9 10.1 0.8 14.5 8.3 -21.2 10.2 20.0 3 Nonborrowed 8.5 11.5 12.7 0.6 10.1 10.9 -16.7 5.1 13.7 4 Monetary base2 7.7 6.8 8.0 8.6 7.6 8.7 4.7 11.4 15.0 Concepts of money and liquid assets3 5 Ml 3.2 6.1 13.1 14.0 13.6 10.6 9.8 22.4 15.6 6 M2 7.0 10.9 9.3 19.8 9.5 8.9 29.8 23.9 10.7 7 M3 8.5 12.5 9.5 9.7 9.3 3.7 12.0 13.2 7.7 8 L 10.5 12.1 8.8 n.a. 7.2 6.7 n.a. n.a. n.a. Time and savings deposits Commercial banks 9 Total 13.4 18.2 3.2 12.1 -5.0 5.5 27.4 8.7 3.0 10 Savings4 -1.7 -1.8 13.1 -44.4 28.8 -21.7 -88.2 -57.1 -18.3 11 Small-denomination time5 17.0 18.7 -0.4 -48.6 -2.2 -18.2 -83.6 -63.6 -38.7 12 Large-denomination time6 17.0 26.8 -6.8 -58.6 -22.9 -44.3 -97.1 -60.9 -28.1 13 Thrift institutions7 4.1 6.5 6.2 11.1 7.4 4.5 8.3 20.3 16.8 14 Total loans and securities at commercial banks8 -6.7 6.0 5.5 9.8 1.5 10.5 12.8 7.6 11.2 Interest rates (levels, percent per annum) 1982 1983 1982 1983 Q2 Q3 Q4 Ql Dec. Jan. Feb. Mar. Apr. Short-term rates 1 1 1 1 5 7 8 6 T C D Fe r o i e s d m c a e o s m r u a u e l r n y r t f c u i b w a n i l i l d l n s p s d 9 a o ( p 3 w e - r m b ( o o 3 n r - t r m h o w o m n i t n a h r g ) k 1 1 0 e 1 ' t 1 * y ield)11 1 1 1 1 3 2 4 2 . . . . 8 4 5 0 1 2 2 0 1 1 1 9 1 1 0 . . . . 3 0 1 8 2 1 5 3 7 8 9 9 . . . . 9 2 2 8 0 5 8 0 8 8 8 8 . . . . 1 6 3 5 1 5 4 0 8 7 8 8 . . . . 5 9 9 7 1 4 5 3 8 7 8 8 . . . . 1 8 6 5 7 6 8 0 8 8 8 8 . . . . 1 5 3 5 1 1 4 0 8 8 8 8 . . . . 5 3 7 5 2 5 7 0 8 8 8 8 . . . . 2 5 8 5 1 3 0 0 Long-term rates Bonds 19 U.S. government13 13.74 12.94 10.72 10.87 10.62 10.78 11.03 10.80 10.63 20 State and local government 12.33 11.39 9.90 9.43 9.96 9.50 9.58 9.20 9.05 21 Aaa utility (new issue)' 15.73 14.25 12.10 11.89 11.84 12.05 12.08 11.70 11.41 22 Conventional mortgages 16.63 15.65 13.79 13.26 13.62 13.44 13.18 13.17 13.02 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

A4 Domestic Nonfinancial Statistics • May 1983 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending Factors 1983 1983 Feb. Mar. Apr. Mar. 16 Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20P Apr. 27p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 155,365 155,883 159,155 155,642 157,044 155,475 157,764 157,557 160,482 159,622 2 U.S. government securities' 134,379 135,201 137,877 135,149 136,337 134,460 136,396 136,576 138,847 138,223 3 Bought outright 133,961 135,087 137,453 135,149 136,337 134,460 136,396 136,576 138,847 137,690 4 Held under repurchase agreements 418 114 424 0 0 0 0 0 0 533 5 Federal agency securities 8,945 8,929 8,931 8,915 8,915 8,915 8,915 8,912 8,908 8,920 6 Bought outright 8,924 8,917 8,910 8,915 8,915 8,915 8,915 8,912 8,908 8,908 7 Held under repurchase agreements 21 12 21 0 0 0 0 0 0 12 8 Acceptances 17 9 72 0 0 0 0 0 0 41 9 Loans 557 850 995 890 641 893 1,757 575 665 1,171 10 Float 2,083 1,948 1,901 1,838 2,098 1,957 1,566 2,250 2,631 1,746 11 Other Federal Reserve assets 9,384 8,946 9,379 8,851 9,054 9,250 9,129 9,244 9,431 9,521 12 Gold stock 11,142 11,138 11,137 11,138 11,138 11,138 11,138 11,138 11,137 11,135 13 Special drawing rights certificate account . 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 14 Treasury currency outstanding 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 ABSORBING RESERVE FUNDS 15 Currency in circulation 151,650 153,186 155,354 153,369 153,367 153,356 154,670 155,812 155,643 155,098 16 Treasury cash holdings 457 482 514 481 485 493 505 513 515 519 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3,200 3,361 3,841 3,690 3,387 2,534 3,861 3,009 3,267 4,165 18 Foreign 236 244 254 229 219 231 300 239 236 253 19 Other 551 547 642 565 584 521 616 622 636 636 20 Required clearing balances 511 578 625 579 597 598 610 616 633 634 21 Other Federal Reserve liabilities and capital 4,776 4,858 4,995 4,843 4,809 4,911 4,964 4,883 5,018 5,015 22 Reserve accounts2 23,530 22,168 22,470 21,427 23,138 22,373 21,780 21,404 24,075 22,839 End-of-month figures Wednesday figures 1983 1983 Feb. Mar. Apr. Mar. 16 Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20 Apr. 27 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 153,936 158,047 161,866 158,633 157,499 156,688 158,967 156,759 161,279 165,501 24 U.S. government securities' 135,561 136,651 141,550 136,293 136,811 134,660 136,791 135,419 138,899 141,108 25 Bought outright 135,561 136,651 137,864 136,293 136,811 134,660 136,791 136,419 138,899 137,376 26 Held under repurchase agreements 0 0 3,686 0 0 0 0 0 0 3,732 27 Federal agency securities 8,923 8,915 9,156 8,915 8,915 8,915 8,915 8,908 8,908 8,995 28 Bought outright 8,923 8,915 8,908 8,915 8,915 8,915 8,915 8,908 8,908 8,908 29 Held under repurchase agreements 0 0 248 0 0 0 0 0 0 87 30 Acceptances 0 0 704 0 0 0 0 0 0 285 31 Loans 1,155 2,808 848 3,730 825 1,985 887 519 1,263 4,073 32 Float -2,664 486 -1,124 177 1,590 1,743 3,094 2,559 2,717 1,274 33 Other Federal Reserve assets 10,961 9,187 10,732 9,518 9,358 9,385 9,280 9,354 9,492 9,766 34 Gold stock 11,139 11,138 11,135 11,138 11,138 11,138 11,138 11,137 11,137 11,135 35 Special drawing rights certificate account . 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 36 Treasury currency outstanding 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 ABSORBING RESERVE FUNDS 37 Currency in circulation 151,872 154,307 155,307 153,760 153,675 154,250 155,715 156,224 155,729 155,661 38 Treasury cash holdings 465 498 524 481 485 495 513 513 515 521 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 2,856 3,572 6,015 3,935 3,118 2,116 4,393 3,523 4,5% 6,803 40 Foreign 352 425 322 237 199 250 194 212 220 194 41 Other 486 535 796 670 478 575 523 554 620 668 42 Required clearing balances 535 601 641 575 595 598 608 615 633 634 43 Other Federal Reserve liabilities and capital 4,988 4,834 5,253 4,828 4,683 4,757 4,763 4,764 4,818 4,994 44 Reserve accounts2 21,924 22,816 22,547 23,688 23,807 23,188 21,799 19,895 23,689 25,564 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. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.P 1 Reserve balances with Reserve Banks' 26,163 24,471 23,385 24,252 24,604 24,804 24,431 23,530 22,168 22,470 2 Total vault cash (estimated) 19,538 19,500 19,921 19,578 19,807 20,392 21,454 20,035 19,484 19,568 3 Vault cash at institutions with required reserve balances2 13,577 13,188 13,651 13,658 13,836 14,292 14,602 13,705 13,027 13,305 4 Vault cash equal to required reserves at other institutions 2,178 2,518 2,927 2,677 2,759 2,757 2,829 2,562 2,844 2,753 5 Surplus vault cash at other institutions3 3,783 3,794 3,343 3,243 3,212 3,343 4,023 3,768 3,613 3,510 6 Reserve balances + total vault cash4 45,701 43,971 43,306 43,830 44,411 45,196 45,885 43,565 4411,,665522 42,038 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,918 40,177 39,963 40,587 41,199 •41,853 41,862 39,797 38,039 38,528 8 Required reserves (estimated) 41,606 39,866 39,579 40,183 40,797 41,353 41,316 39,362 37,602 38,184 9 Excess reserve balances at Reserve Banks4-6 312 311 384 404 402 500 546 435 437 344 10 Total borrowings at Reserve Banks 642 510 976 455 579 697 500 557 850 995 11 Seasonal borrowings at Reserve Banks 53 119 102 86 47 33 33 39 53 82 12 Extended credit at Reserve Banks 149 94 118 141 188 187 156 277 318 407 Weekly averages of daily figures for week ending 1983 Feb. 23 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20? Apr. TIP 13 Reserve balances with Reserve Banks' 24,354 23,778 21,328 21,427 23,138 22,373 21,780 21,404 24,075 22,839 14 Total vault cash (estimated) 18,684 19,663 19,859 20,307 18,297 19,392 19,692 20,059 1188,,661133 1199,,668811 15 Vault cash at institutions with required reserve balances2 13,168 13,631 12,992 13,116 12,652 13,137 13,285 13,198 1122,,993355 1133,,447799 16 Vault cash equal to required reserves at other institutions 2,161 2,433 3,039 3,237 2,438 2,779 2,863 3,126 2,402 2,744 17 Surplus vault cash at other institutions3 3,355 3,599 3,828 3,954 3,207 3,476 3,544 3,735 3,276 3,458 18 Reserve balances + total vault cash4 43,038 43,441 41,187 41,734 41,435 41,765 41,472 41,463 42,688 42,520 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 39,683 39,842 37,359 37,780 38,228 38,289 37,928 37,728 39,412 39,062 20 Required reserves (estimated) 39,377 39,308 36,873 37,369 37,896 37,825 37,296 37,165 39,173 38,619 21 Excess reserve balances at Reserve Banks4-6 306 534 486 411 332 464 632 563 239 443 22 Total borrowings at Reserve Banks 475 710 626 890 641 893 1,757 575 665 1,171 23 Seasonal borrowings at Reserve Banks 45 43 44 44 59 62 80 72 77 90 24 Extended credit at Reserve Banks 335 295 297 326 346 305 328 353 405 484 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

A6 Domestic Nonfinancial Statistics • May 1983 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1983, week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20 Apr. 27 One day and continuing contract 1 Commercial banks in United States 61,536 68,175 64,608 60,985 58,326 67,276 6699,,118899 63,218 56,498 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 29,080 29,565 29,296 28,876 24,571 25,310 26,703 28,252 28,902 3 Nonbank securities dealers 4,408 4,471 4,259 4,649 4,250 4,139 4,322 4,164 5,375 4 All other 26,048 24,934 25,052 24,475 23,790 22,385 25,794 24,030 25,893 All other maturities 5 Commercial banks in United States 4,446 4,376 4,500 4,778 5,292 5,988 44,,993344 55,,227700 44,,886600 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 9,221 9,484 9,806 10,088 11,005 11,456 10,509 10,560 9,681 7 Nonbank securities dealers 5,213 4,997 4,687 4,801 5,518' 5,992 5,323 5,566 5,944 8 All other 9,194 8,918 8,954 8,820 9,714' 10,998 7,904 9,707 8,930 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 24,415 25,700 23,208 22,144 20,411' 25,797 27,486 24,820 22,555 10 Nonbank securities dealers 4,636 5,121 4,467 4,312r 4,356r 4,481 4,532 4,252 4,337 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 SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrr BBB aaalll aaa nnn RRR kkk eee ssseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt F of i rs b t o r 6 r 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 EEffiiffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Efifective Previous Rate on Previous Rate on Previous Rate on Previous 4/30/83 date rate 4/30/83 rate 4/30/83 rate 4/30/83 rate Boston 8'/2 12/14/82 9 8'/2 9 9'/2 10 10'/2 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 D Sa a n l la F s rancisco... 8'/2 1 1 2 2 / / 1 1 4 4 / / 8 8 2 2 9 8 /2 9 91/2 10 101/2 1 1 1 1 2 2 / / 1 1 4 4 / / 8 8 2 2 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or F.R. Efifective date A le l v l e F l) . — R. B o a f n k Effective A le l v l e F l) . — R. B o a f n k Effective date A le ll v e F l . s R - . Ba of n k Banks N.Y. Banks N.Y. Banks N.Y. I 11 n 99 77 e 44 f —— fec t AA D pprr e .. c 2 3 5 3 0 1 , 1973 71 8 l /2 x — h 8 8 8 I V2 1978-- A Ju u l g y . 2 1 1 3 0 I 7 7 - ' 1 / 3 4 / V 4 i 7 7 71 '/ 3 / 4 / 4 4 1981— M No ay v . 2 5 8 1 1 3 3 1 - - 4 1 1 4 4 1 1 1 4 3 4 Dec. 1 9 6 7 7 3 3 /4 /4 - 8 7 7 3 3 / / 4 4 O Se c p t. t . 2 2 1 0 2 6 8m 8 -8 V l 8 88V 1 2 /2 Dec. 4 6 1 1 3 2 1 1 3 2 1975— Jan. 2 1 6 4 0 7 71 V /4 7 4 — 1 -7 / 7 4 3 3 / / 4 4 I 7 7 3 1 V / / 4 4 * Nov. 1 3 8I/2— 9'/2 91 /2 9 9 > > / / 2 2 1982—J A u u ly g . 2 2 0 3 2 1 1 1 1 I 1 - I 1 / V 2 2 l - > 1 / 2 > IU 1 I 1 V V2 2 1976— F M MM N Ja e o aa a n b v yy r . . . . 2 2 2 1 1 1 1 2 3 5 7 3 0 4 6 9 6 6 5 6 3 1 1 5 / / 1 - / 6 6 6 S 4 4 4 6 / 3 1 V - - - 2 1 7 6 / / 5 4 i 4 - 1 3 / 6 4 / / V 4 4 i 6 6 6 6 6 5 5 6 5V 3 1 3 1 1 > / / / / / / 4 4 4 4 4 2 2 1 1 9 9 8 7 0 9 - - - - J AA O u S F e l uu c e y p t b gg . t . .. . 2 2 2 1 1 1 1 1 8 0 0 1 7 9 5 9 0 1 1 0 I 1 0 1 1 1 I V - 2 - 1 0 1 - 1 2 1 3 2 0 1 - ' 3 2 1 /2 1 \1 I 1 1 1 1 1 1 00 1 1 2 3 3 O 2 V V 2 2 O N De c o c t v . . . 2 1 1 2 2 3 1 1 1 2 4 2 7 6 0 3 6 3 5 1 9 9 8 S 0 1 1 1 9 / - - 2 0 1 1 9 V 1 — / ' 1 / 2 9 1 0 0 1 / 2 - l / ' 1 2 / 9 2 - > 0 9 1 1 1 1 9 9 9 9 98 0 0 0 1 1 ' ' / / l / 2 2 A 2 . 26 5'/4 51/4 MMaayy 29 12-13 13 17 81/2 8I/2 30 12 12 11997777—— AAuugg.. 3 3 1 0 5 5 1 i/ / 4 4 - -5 5 3 3 / / 4 4 5 5 3 1/ / 4 4 June 1 1 3 6 11 1 - 1 1 2 1 1 1 1 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 6-6V2 61/2 Nov. 17 12 12 20 6l/> 6 '/2 Dec. 5 12-13 13 May 11 6i/i-7 7 8 13 13 12 7 7 In effect Apr. 30, 1983 81/2 8'/2 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

A8 Domestic Nonfinancial Statistics • May 1983 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Member bank requirements Depository institution requirements Type of deposit, and deposit interval before implementation of the Type of deposit, and after implementation of the in millions of dollars Monetary Control Act deposit interval5 Monetary Control Act6 Effective date Percent Net demand2 Net transaction accounts1-* 0 2 O 1 1- - 0 0 v 2 1 0 - e 01 - r 0 4 0 4 0 0 0 0 1 1 1 9 7 1 2 6 3 '/ '/ / 3 2 4 4 /4 1 1 1 1 1 2 2 2 2 2 / / / / / 3 3 3 3 3 0 0 0 0 0 / / / / / 7 7 7 7 7 6 6 6 6 6 O N B $0 o y v - n e $ o p r 2 r e i 6 $ r g . 2 s i 3 o 6 n n . a m 3 l a i l m l m li i t o a l i l t n m i u o e r n i t y d eposits9 Less than 2Vi years Time and savings2'3 2Vi 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 V/2 1/8/76 4 years or more ... 1 10/30/75 Over 5, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2Vi 1/8/76 4 years or more ... 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual percent above the base used to calculate the marginal reserve in the statement Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was for 1976, table 13. Under provisions of the Monetary Control Act, depository reduced to the extent that foreign loans and balances declined. institutions include commercial banks, mutual savings banks, savings and loan 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97associations, credit unions, agencies and branches offoreign banks, and Edge Act 320) provides that $2 million of reservable liabilities (transaction accounts, corporations. nonpersonal time deposits, and Eurocurrency liabilities) of each depository 2. Requirement schedules are graduated, and each deposit interval applies to institution be subject to a zero percent reserve requirement. The Board is to adjust that part of the deposits of each bank. Demand deposits subject to reserve the amount of reservable liabilities subject to this zero percent reserve requirerequirements were gross demand deposits minus cash items in process of ment each year for the next succeeding calendar year by 80 percent of the collection and demand balances due from domestic banks. percentage increase in the total reservable liabilities of all depository institutions, The Federal Reserve Act as amended through 1978 specified different ranges of measured on an annual basis as of June 30. No corresponding adjustment is to be requirements for reserve city banks and for other banks. Reserve cities were made in the event of a decrease. Effective Dec. 9, 1982, the amount of the designated under a criterion adopted effective Nov. 9, 1972, by which a bank exemption was established at $2.1 million. In determining the reserve requirehaving net demand deposits of more than $400 million was considered to have the ments of a depository institution, the exemption shall apply in the following order: character of business of a reserve city bank. The presence of the head office of (1) nonpersonal money market deposit accounts (MMDAs) authorized under 12 such a bank constituted designation of that place as a reserve city . Cities in which CFR section 1204.122; (2) net NOW accounts (NOW accounts less allowable there were Federal Reserve Banks or branches were also reserve cities. Any deductions); (3) net other transaction accounts; and (4) nonpersonal time deposits banks having net demand deposits of $400 million or less were considered to have or Eurocurrency liabilities starting with those with the highest reserve ratio. With the character of business of banks outside of reserve cities and were permitted to respect to NOW accounts and other transaction accounts, the exemption applies maintain reserves at ratios set for banks not in reserve cities. only to such accounts that would be subject to a 3 percent reserve requirement. Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances 6. For nonmember banks and thrift institutions that were not members of the due from domestic banks to their foreign branches and on deposits that foreign Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent 1987. For banks that were members on or after July 1, 1979, but withdrew on or respectively. The Regulation D reserve requirement of borrowings from unrelated before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends banks abroad was also reduced to zero from 4 percent. on Oct. 24, 1985. For existing member banks the phase-in period is about three Effective with the reserve computation period beginning Nov. 16, 1978, years, depending on whether their new reserve requirements are greater or less domestic deposits of Edge corporations were subject to the same reserve than the old requirements. All new institutions will have a two-year phase-in requirements as deposits of member banks. beginning with the date that they open for business, except for those institutions 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as that have total reservable liabilities of $50 million or more. Christmas and vacation club accounts were subject to the same requirements as 7. Transaction accounts include all deposits on which the account holder is savings deposits. permitted to make withdrawals by negotiable or transferable instruments, pay- The average reserve requirement on savings and other time deposits before ment orders of withdrawal, and telephone and preauthorized transfers (in excess implementation of the Monetary Control Act had to be at least 3 percent, the of three per month) for the purpose of making payments to third persons or others. minimum specified by law. However, MMDAs and similar accounts offered by institutions not subject to the 4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent rules of the Depository Institutions Deregulation Committee (D1DC) that permit was imposed on large time deposits of $100,000 or more, obligations of affiliates, no more than six preauthorized, automatic, or other transfers per month of which and ineligible acceptances. This supplementary requirement was eliminated with no more than three can be checks—are not transaction accounts (such accounts the maintenance period beginning July 24, 1980. are savings deposits subject to time deposit reserve requirements.) Effective with the reserve maintenance period beginning Oct. 25, 1979, a 8. The Monetary Control Act of 1980 requires that the amount of transaction marginal reserve requirement of 8 percent was added to managed liabilities in accounts against which the 3 percent reserve requirement applies be modified excess of a base amount. This marginal requirement was increased to 10 percent annually by 80 percent of the percentage increase in transaction accounts held by beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and all depository institutions determined as of June 30 each year. Effective Dec. 31, was eliminated beginning July 24, 1980. Managed liabilities are defined as large 1981, the amount was increased accordingly from $25 million to $26 million; and time deposits, Eurodollar borrowings, repurchase agreements against U.S. effective Dec. 30, 1982, to $26.3 million. government and federal agency securities, federal funds borrowings from non- 9. In general, nonpersonal time deposits are time deposits, including savings member institutions, and certain other obligations. In general, the base for the deposits, that are not transaction accounts and in which the beneficial interest is marginal reserve requirement was originally the greater of (a) $100 million or (b) held by a depositor that is not a natural person. Also included are certain the average amount of the managed liabilities held by a member bank, Edge transferable time deposits held by natural persons, and certain obligations issued corporation, or family of U.S. branches and agencies of a foreign bank for the two to depository institution offices located outside the United States. For details, see reserve computation periods ending Sept. 26, 1979. For the computation period section 204.2 of Regulation D. beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution's U.S. office gross loans to foreigners and gross balances due NOTE. Required reserves must be held in the form of deposits with Federal from foreign offices of other institutions between the base period (Sept. 13-26, Reserve Banks or vault cash. After implementation of the Monetary Control Act, 1979) and the week ending Mar. 12, 1980, whichever was greater. For the nonmembers may maintain reserves on a pass-through basis with certain apcomputation period beginning May 29, 1980, the base was increased by 7'/2 proved institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Savings and loan associations and Commercial banks mutual savings banks (thrift institutions) TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy ooofff dddeeepppooosssiiittt In effect April 30, 1983 Previous maximum In effect April 30, 1983 Previous maximum Percent Eff d e a c te ti ve Percent Eff d e a c te ti ve Percent Eff d e a c te ti ve Percent Eff d e a c te ti ve 1 Savings 5555''''////4444 7777////1111////77779999 5555 77//11//7733 5555''''////>>>> 7/1/79 5555''''////4444 (') 2 Negotiable order of withdrawal accounts2 5555''''////4444 11112222////33331111////88880000 5555 11//11//7744 5555''''////4444 12/31/80 5555 1/1/74 Time accounts3 3 F 1 i 4 x e 8 d 9 c d e a il y in s' g rates by maturity4 5555»»»»////4444 8888////1111////77779999 5555 77//11//7733 ((((6666)))) ((((6666)))) 4 90 days to 1 year 55553333////4444 1111////1111////88880000 5555VVVViiii 77//11//7733 6666 111///111///888000 55553333////4444 (') 9 6 7 5 2 6 2 1 ' / t t t i o o o to 8 2 2 'A 4 y y e e y y a a e e r r a s s a 8 7 r r s s 7 7 6 6 7 7 6 6 7 7 6 6 7 7 6 6 7 7 '''' '''' //// VVVV //// >>>> 4444 iiii 11112222 1111 7777 7777 //// 1111 2222 //// //// //// 1111 1111 3333 1111 //// //// //// //// 7777 7777 7777 7777 3333 3333 4444 3333 ((((99995555 )))) 5 5 7 5 5 7 5 5 7 5 5 71111 1111 3333 3333 //// //// //// //// 4444 4444 2222 4444 11 1 1 1 1 1 // 1 / / / / 22 2 2 2 2 / 11 1 1 1 1 1 // / / / / / 77 7 7 7 7 7 00 3 0 0 0 0 6 6 V 7 6 6 V 7 6 6 V 7 6 6 V 7 3333 3333 VVVV //// //// //// 2222 2222 4444 4444 111222 111 /// 111 222 ((( ((( /// 333 111 ''' ''' ))) ))) /// /// 777 777 444 333 OOOO 6666 6 7 6 7 6 7 6 7 55553333 '''' //// //// >>>> 4444 1 1 1 1 / / 1 / 2 2 2 / 1 1 1 1 / / / / 7 7 7 7 0 0 3 0 77773333////4444 6666////1111////77778888 ((((6666)))) 8888 666///111///777888 ((((6666)))) 11 Issued to governmental units (all 12 IRAs m a a n tu d r i K ti e e o s) g 1 h 0 (H.R. 10) plans (3 years 8888 6666////1111////77778888 77773333////4444 12/23/74 8888 666///111///777888 77773333////4444 12/23/74 or more)10'11 8888 6666////1111////77778888 77773333////4444 7/6/77 8888 666///111///777888 77773333////4444 7/6/77 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loans. 9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or 2. Federally insured commercial banks, savings and loan associations, 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 6'/2 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 Mar. 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 Ccxle. 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

A10 Domestic Nonfinancial Statistics • May 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 April 1983 (in percent) for commercial banks and thrifts were as follows: V/2-year to less than 2'/2-year time deposits. Effective Aug. 1, 1981, commercial Apr. 5, 8.664; Apr. 12, 8.165; Apr. 19, 8.03; Apr. 26, 8.15. banks are authorized to pay interest on any variable ceiling nonnegotiable time deposit with an original maturity of 2[/i years to less than 4 years at a rate not to Six-month money market time deposits. Effective June I, 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. Effective Apr. 1, 1983, the reduced to $2,5(K). The ceiling rate of interest on these deposits is indexed to the maximum maturity for this category of deposits was reduced to less than 2l/2 years discount rate (auction average) on most recently issued 26-week U.S. Treasury and the minimum maturity was reduced to l'/2 years. Thrift institutions may pay bills. Interest on these certificates may not be compounded. Effective for all 6- interest on these certificates at a rate not to exceed the average 1 '/2-year yield for month money market certificates issued beginning Nov. 1, 1981, depository Treasury securities as determined and announced by the Treasury Department institutions may pay rates of interest on these deposits indexed to the higher of (1) immediately before the date of deposit. If the announced average 1 '/2-year yield the rate for 26-week Treasury bills established immediately before the date of for Treasury securities is less than 9.50 percent, commercial banks may pay 9.25 deposit (bill rate) or (2) the average of the four rates for 26-week Treasury bills percent and thrift institutions 9.50 percent for these deposits. These deposits have established for the 4 weeks immediately before the date of deposit (4-week no required minimum denomination, and interest may be compounded on them. average bill rate). Ceilings are determined as follows: The ceiling rates of interest at which they may be offered vary biweekly. The maximum allowable rates in April 1983 (in percent) for commercial banks were as Bill rate or 4-week Commercial bank ceiling follows: Apr. 1, 9.40; Apr. 12, 9.25; Apr. 26, 9.25; and for thrift institutions: average bill rate Apr. 1, 9.65; Apr. 12, 9.50; Apr. 26, 9.50. 7.50 percent or below 7.75 percent Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks and thrift institu- Above 7.50 percent '/» of 1 percentage point plus the higher of tions were authorized to offer variable ceiling nonnegotiable time deposits with no the bill rate or 4-week average bill rate required minimum denomination and with maturities of 2xh years or more. Effective Jan. 1, 1980, the maximum rate for commercial banks was 3/4 percentage Thrift ceiling point below the average yield on 2'A-year U.S. Treasury securities; the ceiling rate 7.25 percent or below 7.75 percent for thrift institutions was 'A percentage point higher than that for commercial Above 7.25 percent, but below l/i of 1 percentage point plus the higher of banks. Effective Mar. 1, 1980, a temporary ceiling of ll3/4 percent was placed on 8.50 percent the bill rate or 4-week average bill rate these accounts at commercial banks and 12 percent on these accounts at savings 8.50 percent or above, but below 9 percent and loans. Effective June 2, 1980, the ceiling rates for these deposits at 8.75 percent commercial banks and savings and loans were increased V2 percentage point. The 8.75 percent or above 'A of 1 percentage point plus the higher of temporary ceiling was retained, and a minimum ceiling of 9.25 percent for the bill rate or 4-week average bill rate commercial banks and 9.50 percent for thrift institutions was established. The maximum rates in April 1983 for commercial banks based on the bill rate were as follows: Apr. 5, 8.955; Apr. 12, 8.498; Apr. 19, 8.45; Apr. 26, 8.47, and based on the 4-week average bill rate were as follows: Apr. 5, 8.802; Apr. 12, 8.798; Apr. 19, 8.71; Apr. 26, 8.59. The maximum allowable rates in April 1983 for thrifts based on the bill rate were as follows: Apr. 5, 9.000; Apr. 12, 8.748; Apr. 19, 8.70; Apr. 26, 8.72; and based on the 4-week average bill rate were as follows: Apr. 5, 9.000; Apr. 12, 9.000; Apr. 19, 8.964; Apr. 26, 8.843. 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 2]/2 years or more. Effective May 1, 1982, depository account of the same depositor are regarded as preauthorized transfers. institutions were authorized to offer negotiable or nonnegotiable time deposits with a minimum original maturity of 3!/2 years or more that are not subject to IRAs and Keogh (H.R. 10) plans (18 months or more). Effective Dec. 1, 1981, interest rate ceilings. Such time deposits have no minimum denomination, but depository institutions are authorized to offer time deposits not subject to interest must be made available in a $500 denomination. Additional deposits may be made rate ceilings when the funds are deposited to the credit of, or in which the entire to the account during the first year without extending its maturity. Effective beneficial interest is held by, an individual pursuant to an IRA agreement or Apr. 1, 1983, the minimum maturity period for this category of deposits was Keogh (H.R. 10) plan. Such time deposits must have a minimum maturity of 18 reduced to 2V2 years. 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 7,668 13,899 17,067 425 774 2,552 1,897 0 1,456 1,259 2 Gross sales 7,331 6,746 8,369 674 0 0 731 1,983 934 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,389 1,816 3,000 400 0 0 200 900 300 0 Others within 1 year 5 Gross purchases 912 317 312 0 0 88 0 0 0 0 6 Gross sales 0 23 0 0 0 0 0 0 0 0 7 Maturity shift 12,427 13,794 17,295 733 623 2,819 906 558 4,564 1,198 8 Exchange -18,251 -12,869 -14,164 -650 0 -1,924 -943 -544 -2,688 -900 9 Redemptions 0 0 0 0 0 0 0 0 0 0 I to 5 years 10 Gross purchases 2,138 1,702 1,797 0 0 485 0 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 -733 -623 -2,204 -906 -553 -4,564 -1,198 13 Exchange 13,412 10,117 11,804 650 0 1,515 943 544 1,599 900 5 to 10 years 14 Gross purchases 703 393 388 0 0 194 0 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 0 0 -616 0 -5 229 0 17 Exchange 2,970 1,500 2,128 0 0 250 0 0 650 0 Over 10 years 18 Gross purchases 811 379 307 0 0 132 0 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -426 0 -601 0 0 0 0 0 -229 0 21 Exchange 1,869 1,253 234 0 0 159 0 0 439 0 All maturities 22 Gross purchases 12,232 16,690 19,870 425 774 3,452 1,897 0 1,456 1,259 23 Gross sales 7,331 6,769 8,369 674 0 0 731 1,983 934 0 24 Redemptions 3,389 1,816 3,000 400 0 0 200 900 300 0 Matched transactions 25 Gross sales 674,000 589,312 543,804 51,983 45,655 39,579 72,123 59,398 35,234 47,892 26 Gross purchases 675,496 589,647 543,173 51,554 46,370 41,724 69,088 59,043 38,204 47,724 Repurchase agreements 27 Gross purchases 113,902 79,920 130,774 9,649 5,618 4,161 15,229 6,747 6,697 3,526 28 Gross sales 113,040 78,733 130,286 7,035 9,420 4,161 11,525 10,451 6,697 3,526 29 Net change in U.S. government securities 3,869 9,626 8,358 1,535 -2,313 5,596 1,636 -6,943 3,192 1,090 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 5 6 * 6 9 5 8 Repurchase agreements 33 Gross purchases 28,895 13,320 18,957 1,997 1,776 739 2,566 452 276 379 34 Gross sales 28,863 13,576 18,638 1,225 2,778 739 1,978 1,040 276 379 35 Net change in federal agency obligations 555 130 130 767 -1,008 * 582 -596 -5 -8 BANKERS ACCEPTANCES 36 Repurchase agreements, net 73 -582 1,285 248 -813 0 1,480 -1,480 0 0 37 Total net change in System Open Market Account 4,497 9,175 9,773 2,550 -4,134 5,596 3,697 -9,019 3,187 1,082 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

A12 Domestic Nonfinancial Statistics • May 1983 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month 1983 Mar. 30 Apr. 6 Apr. 13 Apr. 20 Apr. 27 Apr. Consolidated condition statement ASSETS 1 Gold certificate account 11,138 11,138 11,137 11,137 11,135 11,139 11,138 11,135 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 Coin 479 461 453 448 444 508 477 452 Loans 4 To depository institutions 1,9850 8870 5190 1,2630 4,0730 1,1550 0 5 Other Acceptances 6 Held under repurchase agreements .... 704 Federal agency obligations 7 8 B H o e u ld g h u t n o d u er t ri r g e h p t u rchase agreements .... 8,9150 8,9150 8,9080 8,9080 8,9230 8,9150 8,9 2 0 4 8 8 U.S. government securities Bought outright 9 Bills 53,478 55,609 54,237 57,717 56,194 54,379 55,469 56,682 0 Notes 62,187 62,187 62,187 62,187 62,187 62,187 62,187 62,187 1 Bonds 18,995 18,995 18,995 18,995 18,995 18,995 18,995 18,995 2 Total1 134,6600 136,7910 135,4190 138,8990 137,376 135,5610 136,6510 137,864 Held under repurchase agreements .... 3,732 3,686 14 Total U.S. government securities 134,660 135,419 138,899 141,108 135,561 136,651 141,550 136,791 15 Total loans and securities . 145,560 144,846 149,070 154,461 145,639 148,374 152,258 146,593 16 Cash items in process of collection.. 8,818 9,682 10,186 8,959 4,207 6,584 6,354 17 Bank premises 552 10,152512 552 552 551 552 552 552 Other assets 18 Denominated in foreign currencies2 5,017 4,971 4,975 4,978 4,983 4,988 4,962 4,957 19 All other3 3,816 3,757 3,827 3,962 4,232 5,421 3,673 5,223 20 Total assets. 179,998 182,211 180,090 184,951 189,383 177,072 180,378 185,549 LIABILITIES 21 Federal Reserve notes 141,439 142,904 143,404 142,906 142,841 139,060 141,497 142,497 Deposits 22 Depository institutions 23,793 22,408 20,513 24,325 26,201 22,468 23,419 23,193 23 U.S. Treasury—General account. 2,116 4,393 3,523 4,596 6,803 2,856 3,572 6,015 24 Foreign—Official accounts 250 194 212 220 194 352 425 322 25 Other 568 522 551 617 665 477 533 791 26 Total deposits. 26,727 27,517 24,799 29,758 33,863 26,153 27,949 30,321 27 Deferred availability cash items 7,075 7,027 7,123 7,469 7,685 6,871 6,098 7,478 28 Other liabilities and accrued dividends4 . 1,699 1,721 1,695 1,748 1,906 1,709 1,752 2,069 29 Total liabilities . 176,940 179,169 177,021 181,881 186,295 173,793 177,296 182,365 CAPITAL ACCOUNTS 30 Capital paid in 1,393 1,394 1,395 1,398 1,407 1, 1,393 1,407 31 Surplus 1,359 1,359 1,359 1,359 1,359 1,359 1,359 1,359 32 Other capital accounts . 306 289 315 313 322 532 330 418 33 Total liabilities and capital accounts 179,998 182,211 180,090 184,951 189,383 177,072 180,378 185,549 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 109,450 111,114 111,719 111,589 110,748 112,208 112,120 109,843 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) 159,624 159,901 160,465 160,915 161,329 159,741 159,568 161,327 36 LESS: Held by bank5 18,185 16,997 17,061 18,009 18,488 20,681 18,130 18,830 37 Federal Reserve notes, net 141,439 142,904 143,404 142,906 142,841 139,060 141,438 142,497 Collateral for Federal Reserve notes 38 Gold certificate account 11,138 11,138 11,137 11,137 11,135 1111,,113399 11,138 1111,,113355 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 125,683 127,148 127,649 127,151 127,088 123,303 125,682 126,744 42 141,439 142,904 143,404 142,906 142,841 139,060 141,438 142,497 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. 30 Apr. 6 Apr. 13 Apr. 20 Apr. 27 Feb. 28 Mar. 31 Apr. 29 1 Loans—Total 1,985 887 519 1,263 4,073 1,155 2,808 848 2 Within 15 days 1,968 849 491 1,249 4,040 1,141 2,782 805 3 16 days to 90 days 17 38 28 14 33 14 26 43 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 285 0 0 704 6 Within 15 days 0 0 0 0 285 0 0 704 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 134,660 136,791 135,419 138,899 141,108 135,561 136,651 141,550 10 Within 15 days1 4,596 6,207 4,221 5,198 6,694 3,916 3,525 4,947 11 16 days to 90 days 26,664 27,060 27,474 29,732 29,095 28,249 26,664 30,724 12 91 days to 1 year 41,519 41,941 42,141 42,386 43,736 40,865 44,879 44,296 13 Over 1 year to 5 years 32,128 31,830 31,830 31,972 31,972 32,778 31,830 31,972 14 Over 5 years to 10 years 12,970 12,970 12,970 12,828 12,828 12,970 12,970 12,828 15 Over 10 years 16,783 16,783 16,783 16,783 16,783 16,783 16,783 16,783 16 Federal agency obligations—Total 8,915 8,915 8,908 8,908 8,995 8,923 8,915 9,156 17 Within 15 days1 309 212 25 110 323 225 309 484 18 16 days to 90 days 508 614 675 564 499 602 508 499 19 91 days to 1 year 1,862 1,853 1,829 1,830 2,026 1,963 1,862 2,026 20 Over 1 year to 5 years 4,614 4,614 4,732 4,756 4,499 4,543 4,614 4,499 21 Over 5 years to 10 years 1,104 1,104 1,129 1,130 1,130 1,072 1,104 1,130 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

A14 Domestic Nonfinancial Statistics • May 1983 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1982 1983 IItteemm DD 1199 ee 77 cc 88 .. DD 1199 ee 77 cc 99 .. DD 1199 ee 88 cc 00 .. DD 1199 ee 88 cc 11 .. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS' 1 Total reserves2 37.93 39.66 2 Nonborrowed reserves 31.96 32.76 34.54 39.45 38.72 39.45 39.79 40.15 39.59 39.76 40.21 40.30 3 Required reserves.... 32.59 33.91 35.71 39.53 39.27 39.53 40.01 40.28 39.57 39.91 40.57 40.83 4 Monetary base3 132.2 142.8 154.9 173.2 172.1 173.2 174.3 175.6 176.3 178.0 180.2 181.3 Not seasonally adjusted 5 Total reserves2 33.33 37.24 37.24 40.00 39.36 40.00 40.68 41.56 42.23 40.23 40.23 41.00 6 Nonborrowed reserves 32.46 35.55 35.55 39.52 38.42 39.52 40.06 40.93 41.69 39.64 39.44 40.05 7 Required reserves 33.10 36.72 36.72 39.59 38.97 39.59 40.28 41.06 41.67 39.79 39.80 40.58 8 Monetary base3 134.7 158.2 158.2 173.2 171.7 173.2 175.4 178.9 177.7 175.9 177.7 100.4 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS4 9 Total reserves2 41.68 40.66 40.66 40.59 39.96 40.59 41.20 41.85 41.86 39.80 38.04 38.66 10 Nonborrowed reserves 40.81 38.97 38.97 40.11 39.03 40.11 40.58 41.22 41.33 39.22 37.24 37.65 11 Required reserves 41.45 40.15 40.15 40.18 39.58 40.18 40.80 41.35 41.32 39.36 37.60 38.18 12 Monetary base3 144.5 162.5 162.5 173.8 172.4 173.8 176.0 179.3 177.9 176.0 175.9 178.5 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 Item Dec. Dec. Dec. Dec. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted MEASURES1 1 Ml 389.0 414.1 440.6 478.2 474.0 478.2 482.1 491.1' 497.5 2 M2 1,497.5 1,630.3 1,794.9 1,959.5 1,945.0 1,959.5 2,008.0' 2,048.0' 2,065.8 3 M3 1,758.4 1,936.7 2,167.9 2,377.6' 2,370.2 2,377.6' 2,401.5r 2,427.8' 2,442.8 4L! 2,131.8 2,343.6 2,622.0 2,899.1 2,883.1 2,899.1 n.a. n.a. n.a. SELECTED COMPONENTS 5 Currency 106.5 116.2 123.2 132.8 131.9 132.8 134.2 135.6 135.6 6 Traveler's checks3 3.7 4.1 4.5 4.2 4.4 4.2 4.1 4.3 4.5 7 Demand deposits 262.0 266.8 236.4 239.8 237.6 239.8 239.4 238.7 240.0 8 Other checkable deposits4 17.0 26.9 76.6 101.3 100.3' 104.5' 112.5' 112.5' 116.0 9 Savings deposits5 423.1 400.7 344.4 358.7' 366.4 358.7 332.5 322.1 318.8 10 Small-denomination time deposits6 635.9 731.7 828.6 859.8' 874.9 859.8r 798.1 756.1' 734.9 11 Large-denomination time deposits7 222.2 258.9 302.6 333.8 340.4 333.8 310.6 297.9' 296.2 Not seasonally adjusted MEASURES1 1? Ml 398.8 424.7 452.1 491.0 479.0 491.0 489.6 480.6 489.1 13 M2 1,502.1 1,635.0 1,799.6 1,964.5 1,943.6 1,964.5 2,016.4 2,040.0 2,061.9 14 M3 1,766.1 1,944.9 2,175.9 2,385.3 2,369.2 2,385.3 2,413.2 2,424.2' 2,441.5 15 V- 2,138.9 2,350.8 2,629.7 2,907.0 2,882.0 2,907.0 n.a. n.a. n.a. SELECTED COMPONENTS 16 Currency 108.2 118.3 125.4 135.2 132.7 135.2 133.2 133.7 135.4 17 Traveler's checks3 3.5 3.9 4.3 4.0 4.2 4.0 3.9 4.1 4.3 18 Demand deposits 270.1 275.2 244.0 247.7 240.6 247.7 245.1 232.8 235.1 19 Other checkable deposits4 17.0 27.2 78.4 81.0 79.2 81.0 82.4' 83.6 86.6 20 Overnight RPs and Eurodollars8 21.2 28.4 36.1 44.3 45.2 44.3 47.3 48.8' 48.8 21 Savings deposits5 420.7 398.3 342.1 356.2' 363.4 356.2' 332.1 320.9 319.4 22 Small-denomination time deposits6 633.1 728.3 824.1 854.5 871.5 854.4 799.3 759.5 738.8 Money market mutual funds 23 General purpose and broker/dealer 33.4 61.4 150.9 182.2 191.1 182.2 166.7 159.4 153.5 24 Institution only 9.5 14.9 36.0 47.6 49.9 47.6 46.1 45.2 43.5 25 Large-denomination time deposits7 226.0 262.4 305.9 336.5 340.8 336.5 314.2 302.6' 298.9 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) currency 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

A16 DomesticN onfinancial Statistics • May 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'' 1199881111 1199882211 Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 62,757.8 80,858.7 90,914.4 97,097.0 95,475.9 97,748.5 103,333.1 102,743.5 102,206.1 2 Major New York City banks 25,156.1 33,891.9 37,932.9 42,077.9 38,971.6 42,104.4 46,353.0 45,133.2 44,327.4 3 Other banks 37,601.7 46,966.9 52,981.6 55,019.1 56,504.4 55,644.1 56,980.1 57,610.3 57,878.7 4 ATS-NOW accounts3 159.3 743.4 1,036.2 1,109.4 1,224.6 1,448.1 1,262.3 1,286.4 1,369.4 5 Savings deposits4 670.0 672.7 721.4 637.0 697.1 889.3 904.3 827.9 803.2 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 198.7 285.8 324.2 343.0 333.8 342.6 361.1 361.3 356.1 7 Major New York City banks 803.7 1,105.1 1,287.6 1,298.7 1,263.7 1,381.2 1,462.3 1,462.5 1,437.4 8 Other banks 132.2 186.2 211.1 219.5 221.4 218.3 223.9 227.2 225.9 9 ATS-NOW accounts3 9.7 14.0 14.5 14.7 15.6 18.4 15.8 15.1 15.6 10 Savings deposits4 3.6 4.1 4.5 4.0 4.3 4.7 6.0 5.8 5.7 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 63,124.4 81,197.9 91,031.9 93,543.3 91,838.3 107,454.9 101,566.1 92,654.1 109,166.3 12 Major New York City banks 25,243.1 34,032.0 38,001.0 39,657.6 36,893.5 47,576.3 45,657.2 40,937.3 47,496.6 13 Other banks 37,881.3 47,165.9 53,030.9 53,885.7 54,944.8 59,878.6 55,908.8 51,716.8 61,669.7 14 ATS-NOW accounts3 158.0 737.6 1,027.1 1,098.0 1,115.0 1,411.9 1,525.5 1,198.7 1,398.4 15 MMDA5 0 0 0 0 0 0 278.4 324.7 454.9 16 Savings deposits4 669.8 672.9 720.0 672.7 663.3 878.0 980.4 754.3 820.4 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 202.3 286.1 325.0 327.8 319.3 367.2 346.1 334.8 391.8 18 Major New York City banks 814.8 1,114.2 1,295.7 1,220.8 1,198.6 1,540.7 1,368.1 1,366.7 1,561.1 19 Other banks 134.8 186.2 211.5 213.1 213.9 228.8 215.0 209.5 248.5 20 ATS-NOW accounts3 9.7 14.0 14.3 14.5 14.1 17.5 18.6 14.4 16.2 21 MMDA5 0 0 0 0 0 0 2.4 2.0 2.4 22 Savings deposits4 3.6 4.1 4.5 4.2 4.1 4.7 6.6 5.3 5.8 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 A17 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1981 1982 1983 1981 1982 1983 CCaatteeggoorryy Dec.2 Nov. Dec. Jan.3 Feb. Mar. Dec.2 Nov. Dec. Jan.3 Feb. Mar. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities4 1,316.3 1,398.5 1,412.1 1,428.2 1,436.5 1,450.2 1,326.1 1,405.4 1,422.5 1,430.5 1,432.2 1,445.0 2 U.S. Treasury securities 111.0 126.4 130.9 139.8 144.5 151.0 111.4 125.5 131.5 139.3 145.1 153.2 3 Other securities 231.4 235.8 239.1 243.3 243.2 242.8 232.8 236.3 240.6 243.5 242.6 242.3 4 Total loans and leases4 973.9 1,036.4 1,042.0 1,045.1 1,048.8 1,056.3 981.8 1,043.5 1,050.4 1,047.7 1,044.4 1,049.5 5 Commercial and industrial loans 358.0 392.0 392.4 395.2 394.9 396.2 360.1 393.8 394.7 394.2 393.4 395.1 6 Real estate loans 285.7 301.6 303.2 305.3 307.6 309.5 286.8 302.8 304.1 305.9 307.3 308.6 7 Loans to individuals 185.1 190.3 191.8 192.6 192.9 194.8 186.4 191.5 193.1 193.2 192.3 193.0 8 Security loans 21.9 23.4 24.7 22.7 22.2 22.6 22.7 23.9 25.5 22.9 21.5 22.0 9 Loans to nonbank financial institutions 30.2 32.2 31.1 31.7 31.6 32.0 31.2 32.6 32.1 31.9 31.7 31.6 10 Agricultural loans 33.0 36.3 36.3 36.5 36.8 38.0 33.0 36.5 36.3 36.3 36.3 37.2 11 Lease financing receivables.... 12.7 13.1 13.1 13.3 13.3 13.1 12.7 13.1 13.1 13.3 13.3 13.1 12 All other loans 47.2 47.5 49.5 47.6 49.4 50.1 49.2 49.3 51.5 50.2 48.7 48.9 MEMO: 13 Total loans and securities plus loans sold4'5 1,319.1 1,401.5 1,415.0 1,431.2 1,439.4 1,453.1 1,328.9 1,408.3 1,425.4 1,433.5 1,435.1 1,448.0 14 Total loans plus loans sold4-5 .... 976.7 1,039.3 1,045.0 1,048.0 1,051.7 1,059.3 984.7 1,046.4 1,053.3 1,050.7 1,047.4 1,052.5 15 Total loans sold to affiliates4 5.... 2.8 2.9 2.9 3.0 3.0 3.0 2.8 2.9 2.9 3.0 3.0 3.0 16 Commercial and industrial loans plus loans sold5 360.2 394.3 394.6 397.5 397.2 398.6 362.3 396.1 396.9 396.5 395.8 397.4 17 Commercial and industrial loans sold5 2.2 2.3 2.3 2.3 2.3 2.4 2.2 2.3 2.3 2.3 2.3 2.4 18 Acceptances held 8.9 8.4 8.5 8.8 8.2 8.9 9.8 8.7 9.5 9.2 8.4 8.5 19 Other commercial and industrial loans 349.1 383.6 383.8 386.4 386.7 387.3 350.3 385.1 385.2 384.9 385.1 386.6 20 To U.S. addressees6 334.9 371.5 373.5 374.1 374.5 375.0 334.3 372.6 372.7 372.7 372.8 374.4 21 To non-U.S. addressees 14.2 12.1 10.3 12.3 12.2 12.3 16.1 12.6 12.4 12.2 12.3 12.2 22 Loans to foreign banks 19.0 14.0 13.5 13.7 14.3 14.9 20.0 14.1 14.5 14.3 14.1 14.6 1. Includes domestically chartered banks; U.S. branches and agencies of billion. As of Feb. 2, 1983, real estate loans increased $0.5 billion and commercial foreign banks, New York investment companies majority owned by foreign 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 Jan. 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 Jan. 26, 1983, other securities increased reports from large agencies and branches and quarterly reports from all agencies, $0.2 billion and total loans and commercial and industrial loans decreased $0.2 branches, investment companies, and Edge Act corporations engaged in banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • May 1983 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1980 1981' 1982'" 1983 SSoouurrccee Dec/ Dec. June July Aug. Sept. Oct. Nov. Dec. Jan/ Feb/ Mar. Total nondeposit funds 1 Seasonally adjusted2 118.6 96.0 89.7 85.0 81.7 78.4 80.6 86.7 82.1 72.3 75.6 76.5 2 Not seasonally adjusted 120.6 97.5 91.2 86.7 85.4 80.8 82.8 88.7 83.5 73.8 76.5 77.2 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 107.5 111.5 119.0 119.3 120.2 121.6 126.1 129.1 127.3 131.6 134.6 135.4 4 Not seasonally adjusted 109.5 113.0 120.5 121.0 123.9 124.0 128.3 131.1 128.8 133.1 135.5 136.1 5 Net balances due to foreign-related institutions, not seasonally adjusted 8.4 -18.2 -32.2 -37.3 -41.3 -46.3 -48.0 -44.8 -48.1 -62.4 -62.0 -61.9 6 Loans sold to affiliates, not seasonally adjusted4 2.7 2.8 3.0 2.8 2.8 2.8 2.8 2.9 2.9 3.0 3.0 3.0 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -14.7 -22.5 -29.2 -33.1 -34.5 -39.0 -40.3 -38.3 -39.8 -50.1 -50.5 -52.8 8 Gross due from balances 37.5 54.9 57.7 60.7 65.2 68.8 69.6 69.9 72.4 80.8 78.9 79.6 9 Gross due to balances 22.8 32.4 28.5 27.6 30.8 29.7 29.4 31.6 32.6 30.7 28.4 26.9 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 22.9 4.3 -2.9 -4.3 -6.9 -7.3 -7.8 -6.5 -8.3 -12.3 -11.5 -9.2 11 Gross due from balances 32.5 48.1 50.2 52.9 53.8 54.6 54.1 53.7 54.9 57.6 56.1 56.2 12 Gross due to balances 55.4 52.4 47.3 48.6 46.9 47.3 46.4 47.2 46.6 45.3 44.6 47.0 Security RP borrowings 13 Seasonally adjusted' 51.7 59.0 61.7 61.9 65.2 65.0 69.0 71.5 71.0 72.2 74.3 74.7 14 Not seasonally adjusted 52.0 59.2 61.7 62.2 67.5 66.0 69.8 72.1 71.1 72.2 73.7 73.9 U.S. Treasury demand balances8 15 Seasonally adjusted 9.9 12.2 10.5 9.0 10.1 11.1 14.4 10.6 11.9 15.7 8.8 12.5 16 Not seasonally adjusted 9.0 11.1 10.7 8.2 8.1 12.3 16.4 7.8 10.8 16.3 10.2 13.2 Time deposits, $100,000 or more9 17 Seasonally adjusted 267.0 324.1 349.6 360.3 367.1 366.7 367.6 360.6 347.3 319.2 303.0 296.0 18 Not seasonally adjusted 272.4 330.4 344.8 350.6 359.3 361.8 364.9 361.7 353.9 325.4 310.4 300.7 IBF ADJUSTMENTS FOR SELECTED ITEMS10 19 22.4 32.0 32.2 32.5 32.8 33.1 33.3 33.9 34 2 2222200000 11111.....77777 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 2222211111 Item 5 2222200000.....77777 2222299999.....66666 2222299999.....88888 3333300000.....11111 3333300000.....44444 3333300000.....77777 3333300000.....99999 3333311111.....55555 3333311111.....88888 2222222222 Item 7 33333.....11111 55555.....00000 55555.....11111 55555.....33333 55555.....44444 55555.....44444 55555.....55555 55555.....88888 55555.....88888 2222233333 Item 10 1111177777.....66666 2222244444.....66666 2222244444.....77777 2222244444.....99999 2222255555.....00000 2222255555.....33333 2222255555.....44444 2222255555.....77777 2222266666.....00000 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 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 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 1,392.2 1,404.1 2 Loans, excluding interbank 969.1 966.6 970.6 985.9 988.5 990.4 1,000.8 993.3 991.4 1,001.7 1,005.3 3 Commercial and industrial 348.7 346.4 346.2 354.4 355.8 355.4 357.9 355.6 356.3 358.6 358.5 4 Other 620.4 620.3 624.4 631.5 632.7 635.0 642.9 638.2 635.8 643.7 646.8 5 U.S. Treasury securities 113.4 113.4 113.7 115.0 119.4 122.2 129.0 136.0 141.4 150.6 155.5 6 Other securities 232.9 233.2 234.5 236.2 235.1 234.4 240.5 241.6 240.8 239.9 243.2 7 Cash assets, total 165.4 154.5 160.8 157.4 162.1 169.7 184.4 167.8 184.7 168.9 170.1 8 Currency and coin 20.1 20.5 20.3 20.4 20.5 19.0 23.0 20.4 20.3 19.9 20.4 9 Reserves with Federal Reserve Banks 18.2 25.1 26.1 17.0 23.5 22.0 25.4 23.9 25.3 20.5 23.9 10 Balances with depository institutions . 59.6 55.4 58.8 60.4 61.3 64.6 67.6 67.7 71.6 67.1 66.1 11 Cash items in process of collection ... 67.4 53.6 55.5 59.6 56.8 64.1 68.4 55.9 67.5 61.5 59.6 12 Other assets2 223.2 224.2 231.3 234.9 237.0 241.8 265.3 260.1 263.6 257.9 252.3 13 Total assets/total liabilities and capital ... 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 1,818.9 1,826.4 14 Deposits 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 1,374.2 1,368.0 15 Demand 345.2 314.4 315.5 323.0 326.5 338.1 363.9 324.0 337.9 333.4 329.2 16 Savings 228.9 227.1 229.5 230.9 238.2 244.9 296.4 361.5 395.2 419.2 426.9 17 Time 710.7 724.8 734.1 736.8 735.4 733.9 701.5 655.1 635.2 621.6 611.9 18 Borrowings 189.7 195.4 196.0 202.8 203.7 198.1 215.1 221.6 218.0 211.3 224.0 19 Other liabilities 96.6 99.1 103.9 103.4 106.2 109.3 109.2 106.4 106.0 103.5 102.3 20 Residual (assets less liabilities) 133.0 131.1 131.9 132.5 132.0 134.3 133.9 130.1 129.6 130.0 132.1 MEMO: 21 U.S. Treasury note balances included in borrowing 7.5 8.0 5.9 17.0 11.7 2.4 10.7 17.1 7.0 9.6 17.8 22 Number of banks 14,736 14,752 14,770 14,785 14,797 14,782 14,787 14,780 14,812 14,819 14,823 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 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 1,451.3 1,461.0 24 Loans, excluding interbank 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 1,054.5 1,055.9 25 Commercial and industrial 386.7 384.4 384.5 395.0 393.7 398.9 396.5 393.0 392.9 396.5 394.1 26 Other 637.0 636.4 640.2 647.4 648.6 653.2 658.4 652.4 650.0 658.6 661.8 27 U.S. Treasury securities 116.2 115.7 115.8 117.2 122.7 125.7 132.8 139.5 145.1 155.3 160.3 28 Other securities 234.4 234.8 236.1 237.7 236.7 235.9 242.1 243.2 242.4 241.5 244.8 29 Cash assets, total 180.3 169.3 176.2 173.7 178.7 181.2 200.7 183.7 200.5 185.5 186.3 30 Currency and coin 20.2 20.5 20.4 20.4 20.5 19.0 23.0 20.4 20.3 19.9 20.4 31 Reserves with Federal Reserve Banks 19.6 26.5 27.5 18.4 25.0 23.4 26.8 25.3 26.7 22.0 25.4 32 Balances with depository institutions . 72.2 67.8 71.8 74.2 75.3 74.4 81.4 81.1 84.9 81.0 79.8 33 Cash items in process of collection ... 68.4 54.6 56.5 60.6 57.8 64.3 69.4 56.9 68.6 62.6 60.7 34 Other assets2 300.0 299.4 306.8 310.3 313.9 323.3 341.7 333.2 330.2 325.4 317.7 35 Total assets/total liabilities and capital ... 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 1,962.2 1,965.0 36 Deposits 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 1,419.5 1,411.0 37 Demand 357.4 326.8 327.7 335.1 338.9 344.9 376.2 335.9 350.2 345.7 341.1 38 Savings 229.1 227.4 229.7 231.1 238.5 245.1 296.7 361.9 395.6 419.7 427.3 39 Time 739.3 753.1 764.3 769.2 767.8 768.0 736.7 687.7 666.8 654.1 642.6 40 Borrowings 253.2 260.0 260.0 267.6 268.3 267.0 278.3 283.5 276.0 269.9 281.3 41 Other liabilities 140.8 139.8 144.1 143.8 146.9 156.6 148.4 143.5 140.4 141.1 138.7 42 Residual (assets less liabilities) 134.9 133.0 133.8 134.4 133.9 136.6 135.8 132.0 131.5 131.9 134.0 MEMO: 43 U.S. Treasury note balances included in borrowing 7.5 8.0 5.9 17.0 11.7 2.4 10.7 17.1 7.0 9.6 17.8 44 Number of banks 15,235 15,271 15,289 15,311 15,330 15,318 15,329 15,332 15,366 15,376 15,390 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 Nonfinancial Statistics • May 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 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30" Apr. 6p Apr. 13p Apr. 20p Apr. 27p 1 Cash items in process of collection 54,311 45,090 50,967 43,587 49,325 52,165 49,457 50,748 47,533 2 Demand deposits due from banks in the United States. 7,743 6,686 7,148 6,373 6,788 7,095 6,691 7,309 6,594 3 All other cash and due from depository institutions ... 37,128 32,276 34,130 33,903 33,978 32,359 31,061 33,591 35,840 4 Total loans and securities 665,408 660,512 658,624 653,772 652,512 668,910 662,138 662,077 657,022 Securities 5 U.S. Treasury securities 49,366 51,138 49,879 49,937 49,098 51,389 51,964 51,809 51,006 6 Trading account 9,344 10,648 9,152 9,625 8,510 9,467 10,196 10,495 9,876 7 Investment account, by maturity 40,022 40,490 40,727 40,312 40,587 41,922 41,768 41,314 41,129 8 One year or less 12,287 12,584 12,831 12,741 12,996 13,867 13,710 13,295 13,186 9 Over one through five years 25,090 25,212 25,244 24,973 24,971 25,392 25,400 25,400 25,287 10 Over five years 2,645 2,694 2,652 2,598 2,621 2,662 2,658 2,618 2,656 11 Other securities 81,848 81,712 80,924 80,829 80,877 81,137 80,967 83,307 83,520 12 Trading account 4,748 4,734 4,699 4,676 4,679 5,294 4,931 6,624 6,610 13 Investment account 77,100 76,978 76,225 76,153 76,198 75,843 76,036 76,683 76,910 14 U.S. government agencies 16,139 16,072 15,635 15,635 15,574 15,563 15,594 15,916 16,108 15 States and political subdivisions, by maturity 57,549 57,462 57,041 56,984 57,083 56,735 56,850 57,182 57,314 16 One year or less 6,995 7,064 6,739 6,724 6,663 6,541 6,625 7,086 7,042 17 Over one year 50,554 50,399 50,302 50,259 50,420 50,194 50,225 50,097 50,272 18 Other bonds, corporate stocks and securities 3,412 3,443 3,549 3,535 3,542 3,544 3,592 3,584 3,488 Loans 19 Federal funds sold1 44,901 44,604 42,036 37,221 35,752 47,793 43,768 39,624 38,962 20 To commercial banks 32,160 30,743 30,241 26,684 25,216 36,485 31,438 27,823 27,323 21 To nonbank brokers and dealers in securities 8,959 9,941 8,306 7,250 7,228 7,860 8,897 8,798 8,377 22 To others 3,782 3,920 3,489 3,286 3,308 3,448 3,433 3,004 3,262 23 Other loans, gross 502,695 496,481 499,207 499,187 500,104 501,812 498,696 500,598 496,819 24 Commercial and industrial 218,270 216,467 217,390 216,653 216,581 217,432 215,562 216,022 214,638 25 Bankers acceptances and commercial paper 4,573 4,444 4,749 4,357 4,847 4,883 4,262 4,227 4,261 26 All other 213,697 212,023 212,641 212,296 211,734 212,549 211,299 211,795 210,377 27 U.S. addressees 206,812 205,260 205,856 205,518 204,931 205,836 204,543 205,040 203,841 28 Non-U.S. addressees 6,886 6,763 6,786 6,779 6,803 6,714 6,756 6,755 6,536 29 Real estate 134,244 134,246 134,411 134,466 134,568 134,637 134,729 134,825 134,646 30 To individuals for personal expenditures 74,859 74,730 74,740 74,684 74,789 74,815 74,904 75,278 75,395 To financial institutions 31 Commercial banks in the United States 7,677 7,282 7,978 8,164 7,586 7,576 7,583 7,700 7,999 32 Banks in foreign countries 7,533 7,277 7,701 7,596 7,585 7,842 7,715 7,486 7,024 33 Sales finance, personal finance companies, etc. ... 10,490 10,104 10,174 10.413 10,504 10,598 10,323 10,173 9,491 34 Other financial institutions 16,071 15,959 15,795 15,890 16,077 15,836 15,906 15,911 15,808 35 To nonbank brokers and dealers in securities 8,571 6,928 7,181 6,899 8,138 7,532 7,845 8,160 7,215 36 To others for purchasing and carrying securities2 ... 2,580 2,563 2,563 2,669 2,673 2,727 2,655 2,824 2,796 37 To finance agricultural production 6,396 6,388 6,485 6,542 6,638 6,693 6,782 6,841 6,804 38 All other 16,004 14,535 14,789 15,209 14,964 16,124 14,692 15,376 15,003 39 LESS: Unearned income 5,361 5,364 5,356 5,331 5,327 5,320 5,325 5,307 5,282 40 Loan loss reserve 8,042 8,059 8,065 8,071 7,991 7,901 7,932 7,954 8,003 41 Other loans, net 489,293 483,058 485,786 485,785 486,785 488,591 485,439 487,336 483,534 42 Lease financing receivables 11,130 11,128 11,119 11,070 11,058 11,076 11,081 11,095 11,166 43 All other assets 147,031 147,223 146,811 142,888 141,703 146,750 144,585 144,075 140,506 44 Total assets 922,751 902,915 908,800 891,593 895,364 918,355 905,013 908,895 898,661 Deposits 45 Demand deposits 182,689 169,173 174,507 165,010 173,384 180,339 176,616 179,049 170,783 46 Mutual savings banks 720 630 822 569 541 704 668 707 640 47 Individuals, partnerships, and corporations 136,565 129,073 132,341 125,250 130,197 135,534 136,187 135,176 129,369 48 States and political subdivisions 5,530 4,498 5,074 5,356 4,439 4,942 4,375 5,020 4,853 49 U.S. government 2,580 1,073 2,536 2,015 2,095 1,817 1,586 4,234 3,480 50 Commercial banks in the United States 20,790 19,003 19,085 18,118 18,668 20,536 19,159 19,461 17,574 51 Banks in foreign countries 5,908 5,896 5,872 6,038 5,600 5,738 5,800 5,364 5,572 52 Foreign governments and official institutions 915 1,044 893 1,071 1,064 901 1,016 982 1,051 53 Certified and officers' checks 9,681 7,955 7,883 6,592 10,780 10,166 7,825 8,104 8,246 54 Time and savings deposits 415,774 414,208 413,433 414,958 415,145 415,356 416,465 413,895 409,935 55 Savings 159,109 161,339 162,988 163,626 164,469 168,963 169,494 169,232 166,800 56 Individuals and nonprofit organizations 143,467 145,403 147,065 147,617 148,199 152,511 152,869 152,553 149,969 57 Partnerships and corporations operated for profit . 14,374 14,699 14,651 14,828 15,061 15,293 15,480 15,505 15,706 58 Domestic governmental units 1,169 1,140 1,172 1,086 1,100 1,073 11,,005566 1,082 1,030 59 All other 98 96 100 95 109 85 8899 93 94 60 Time 256,665 252,869 250,445 251,332 250,676 246,393 246,971 244,663 243,135 61 Individuals, partnerships, and corporations 221,850 218,520 216,564 217,274 216,971 213,962 214,027 212,323 211,074 62 States and political subdivisions 19,909 19,770 19,736 19,923 19,789 19,088 19,286 19,196 19,263 63 U.S. government 439 437 417 531 519 502 623 595 579 64 Commercial banks in the United States 10,676 10,292 9,947 9,892 9,710 9,251 9,387 9,042 8,683 65 Foreign governments, official institutions, and banks 3,791 3,850 3,782 3,712 3,686 3,589 3,648 3,507 3,536 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,360 3,268 264 1 196 140 570 3 229 67 Treasury tax-and-loan notes 7,585 7,381 7,041 8,437 7,583 3,548 3,674 . 12,895 13^907 68 All other liabilities for borrowed money3 171,681 170,440 168,806 160,698 156,391 177,602 165,571 161,427 159,637 69 Other liabilities and subordinated notes and debentures 84,033 81,944 82,240 82,912 82,533 81,483 82,604 81,224 81,579 70 Total liabilities 863,124 843,145 849,295 832,280 836,232 858,468 844,930 849,060 839,070 71 Residual (total assets minus total liabilities)4 59,627 59,770 59,505 59,313 59,132 59,888 60,082 59,835 59,591 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 Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 3OP Apr. 6p Apr. 13? Apr. 20? Apr. 27P 1 Cash items in process of collection 50,974 42,590 48,067 40,953 46,745 49,227 46,480 47,438 44,536 2 Demand deposits due from banks in the United States.. 7,086 6,081 6,580 5,744 6,272 6,535 6,128 6,709 6,019 3 All other cash and due from depository institutions .... 34,237 29,501 31,241 30,930 31,020 29,653 28,331 30,406 32,802 4 Total loans and securities 619,177 614,043 612,206 607,934 606,847 621,652 615,042 615,260 610,733 Securities 5 U.S. Treasury securities 45,007 46,680 45,332 45,448 44,674 46,901 47,498 47,376 46,623 6 Trading account 9,168 10,430 8,952 9,458 8,341 9,249 10,005 10,280 9,654 7 Investment account, by maturity 35,839 36,250 36,381 35,990 36,333 37,652 37,493 37,096 36,970 8 One year or less 10,680 10,903 11,053 11,008 11,293 12,095 11,947 11,592 11,548 9 Over one through five years 22,767 22,907 22,931 22,638 22,672 23,149 23,143 23,140 23,019 10 Over five years 2,392 2,440 2,397 2,344 2,367 2,408 2,403 2,364 2,402 11 Other securities 74,589 74,459 73,588 73,518 73,545 73,854 73,608 75,849 75,997 12 Trading account 4,576 4,580 4,475 4,506 4,527 5,140 4,735 6,477 6,498 13 Investment account 70,013 69,879 69,113 69,012 69,018 68,714 68,873 69,372 69,499 14 U.S. government agencies 14,744 14,668 14,228 14,226 14,172 14,178 14,232 14,496 14,596 15 States and political subdivisions, by maturity 52,149 52,061 51,650 51,576 51,657 51,350 51,424 51,667 51,796 16 One year or less 6,266 6,337 6,015 5,986 5,917 5,806 5,894 6,305 6,258 17 Over one year 45,883 45,723 45,635 45,589 45,739 45,544 45,530 45,362 45,537 18 Other bonds, corporate stocks and securities 3,120 3,151 3,235 3,210 3,189 3,185 3,218 3,209 3,107 Loans 19 Federal funds sold1 39,192 38,716 36,755 32,364 31,280 41,781 37,896 34,370 34,218 20 To commercial banks 27,051 25,606 25,570 22,398 21,278 31,072 26,216 23,318 23,194 21 To nonbank brokers and dealers in securities 8,414 9,273 7,787 6,736 6,769 7,344 8,323 8,129 7,835 22 To others 3,727 3,838 3,398 3,229 3,233 3,364 3,357 2,923 3,189 23 Other loans, gross 472,773 466,592 468,932 468,985 469,652 471,329 468,290 469,913 466,164 24 Commercial and industrial 206,886 205,073 205,936 205,196 205,053 205,922 204,104 204,487 203,121 25 Bankers acceptances and commercial paper 4,196 4,064 4,366 3,954 4,439 4,491 3,904 3,867 3,859 26 All other 202,690 201,009 201,570 201,242 200,613 201,431 200,200 200,620 199,262 27 U.S. addressees 195,911 194,351 194,886 194,569 193,919 194,829 193,550 193,973 192,834 28 Non-U.S. addressees 6,780 6,658 6,684 6,673 6,694 6,602 6,650 6,647 6,428 29 Real estate 126,251 126,246 126,358 126,407 126,488 126,510 126,560 126,685 126,468 30 To individuals for personal expenditures 66,594 66,486 66,492 66,451 66,527 66,498 66,585 66,915 67,021 To financial institutions 31 Commercial banks in the United States 7,493 7,098 7,613 7,804 7,130 7,184 7,213 7,231 7,588 32 Banks in foreign countries 7,455 7,205 7,613 7,528 7,500 7,757 7,638 7,365 6,936 33 Sales finance, personal finance companies, etc 10,325 9,934 9,996 10,235 10,329 10,427 10,144 10,004 9,310 34 Other financial institutions 15,474 15,365 15,171 15,275 15,444 15,212 15,285 15,292 15,191 35 To nonbank brokers and dealers in securities 8,535 6,899 7,155 6,868 8,104 7,496 7,815 8,114 7,168 36 To others for purchasing and carrying securities2 .... 2,334 2,327 2,326 2,430 2,434 2,489 2,418 2,578 2,555 37 To finance agricultural production 6,208 6,198 6,292 6,347 6,445 6,499 6,587 6,644 6,607 38 All other 15,216 13,759 13,980 14,445 14,199 15,334 13,941 14,596 14,199 39 LESS: Unearned income 4,752 4,754 4,746 4,718 4,717 4,717 4,720 4,702 4,676 40 Loan loss reserve 7,632 7,649 7,656 7,662 7,588 7,497 7,529 7,547 7,594 41 Other loans, net 460,389 454,188 456,531 456,605 457,348 459,116 456,041 457,664 453,894 42 Lease financing receivables 10,732 10,731 10,723 10,674 10,666 10,677 10,677 10,687 10,758 43 All other assets 142,950 143,134 142,730 138,761 137,282 142,644 140,417 139,939 136,370 44 Total assets 865,156 846,081 851,548 834,997 838,833 860,387 847,076 850,438 841,219 Deposits 45 Demand deposits 169,692 157,217 162,080 152,929 161,227 167,522 163,814 165,911 158,268 46 Mutual savings banks 692 607 795 545 518 661 632 681 615 47 Individuals, partnerships, and corporations 126,724 119,645 122,724 115,988 120,804 125,677 126,247 125,442 119,870 48 States and political subdivisions 4,959 3,952 4,410 4,505 3,842 4,326 3,850 4,383 4,273 49 U.S. government 2,259 972 2,326 1,840 1,898 1,580 1,256 3,449 2,924 50 Commercial banks in the United States 18,995 17,520 17,526 16,692 17,164 18,943 17,619 17,910 16,087 51 Banks in foreign countries 5,859 5,852 5,824 5,995 5,547 5,694 5,760 5,319 5,528 52 Foreign governments and official institutions 909 1,043 892 1,070 1,062 900 1,015 981 1,050 53 Certified and officers' checks 9,294 7,626 7,583 6,292 10,394 9,741 7,434 7,746 7,922 54 Time and savings deposits 387,052 385,500 384,538 386,026 386,236 386,132 387,236 384,680 380,861 55 Savings 147,281 149,364 150,896 151,509 152,264 156,382 156,880 156,666 154,446 56 Individuals and nonprofit organizations 132,972 134,781 136,307 136,851 137,356 141,313 141,640 141,363 138,975 57 Partnerships and corporations operated for profit .. 13,133 13,436 13,408 13,566 13,788 14,003 14,181 14,214 14,431 58 Domestic governmental units 1,085 1,060 1,089 1,008 1,020 990 978 1,003 955 59 All other 90 88 91 84 100 77 81 85 85 60 Time 239,771 236,136 233,642 234,517 233,971 229,749 230,355 228,014 226,414 61 Individuals, partnerships, and corporations 207,306 204,104 202,081 202,813 202,565 199,543 199,649 197,904 196,590 62 States and political subdivisions 17,879 17,764 17,720 17,873 17,786 17,154 17,333 17,247 17,306 63 U.S. government 334 332 317 430 430 408 528 509 492 64 Commercial banks in the United States 10,462 10,085 9,743 9,688 9,504 9,056 9,198 8,849 8,490 65 Foreign governments, official institutions, and banks 3,791 33,,885500 3,782 3,712 3,686 3,589 33,,664488 3,507 3,536 Liabilities for borrowed money 66 1,360 3,253 229 1,158 130 544 3,145 67 Treasury tax-and-loan notes 7,158 6,999 6,589 7,922 7,114 3,324 3,466 12,227 13,199 68 All other liabilities for borrowed money3 162,075 116600,,444444 159,107 151,441 147,288 167,610 115555,,777700 115511,,774411 150,285 69 Other liabilities and subordinated notes and debentures 81,978 79,943 80,240 80,898 80,476 79,593 80,518 79,297 79,668 70 Total liabilities 809,315 790,103 795,807 779,445 783,499 804,311 790,804 794,401 785,426 71 Residual (total assets minus total liabilities)4 55,841 55,978 55,741 55,552 55,334 56,076 56,272 56,036 55,793 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

A22 Domestic Nonfinancial Statistics • May 1983 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30P Apr. 6p Apr. 13p Apr. 20p Apr. 27p 1 Cash items in process of collection 17,821 15,728 16,455 13,744 18,952 18,548 16,742 17,208 15,856 2 Demand deposits due from banks in the United States.. 1,246 1,066 1,172 1,011 1,064 1,101 934 1,017 902 3 All other cash and due from depository institutions .... 7,420 6,936 7,622 6,154 5,884 7,476 5,085 4,373 5,628 4 Total loans and securities1 147,268 143,651 144,473 141,859 142,175 145,475 142,749 142,886 141,999 Securities s 6 7 Investment account, by maturity 9,288 9,252 9,215 8,745 8,860 9,475 9,467 9,454 9,399 8 One year or less 1,371 1,298 1,320 1,343 1,413 1,635 1,628 1,630 1,684 9 Over one through five years 7,357 7,345 7,309 6,891 6,935 7,292 7,278 7,316 7,211 10 Over five years 559 610 585 510 511 548 561 508 504 ii Other securities2 i? 13 Investment account 13,886 13,942 13,802 13,776 13,815 13,746 13,769 14,078 14,044 14 U.S. government agencies 1,447 1,447 1,436 1,435 1,444 1,465 1,465 1,464 1,447 15 States and political subdivisions, by maturity 11,658 11,717 11,586 11,567 11,585 11,501 11,515 11,802 11,777 16 One year or less 1,499 1,577 1,402 1,384 1,376 1,301 1,309 1,568 1,518 17 Over one year 10,159 10,139 10,184 10,183 10,209 10,200 10,206 10,234 10,258 18 Other bonds, corporate stocks and securities 782 778 780 774 786 780 790 812 821 Loans 19 Federal funds sold3 11,049 11,012 10,686 9,305 8,839 11,083 9,872 9,279 11,033 20 To commercial banks 5,074 5,200 5,576 4,694 4,160 5,528 4,363 4,153 5,527 21 To nonbank brokers and dealers in securities 4,027 4,106 3,475 3,118 3,019 3,886 3,903 3,690 4,004 22 To others 1,948 1,706 1,635 1,493 1,660 1,668 1,605 1,436 1,503 23 Other loans, gross 116,952 113,382 114,712 113,968 114,586 115,010 113,537 113,986 111,447 24 Commercial and industrial 60,182 59,497 59,626 59,120 59,295 59,628 58,739 58,814 57,876 25 Bankers' acceptances and commercial paper 1,143 1,038 1,137 1,055 1,211 952 1,086 1,037 951 26 All other 59,039 58,458 58,489 58,065 58,084 58,676 57,653 57,777 56,925 27 U.S. addressees 57,518 57,001 57,006 56,549 56,525 57,228 56,188 56,306 55,431 28 Non-U.S. addressees 1,520 1,457 1,483 1,516 1,559 1,448 1,465 1,471 1,494 29 Real estate 19,015 19,099 19,164 19,222 19,264 19,317 19,297 19,408 19,498 30 To individuals for personal expenditures 11,420 11,427 11,421 11,434 11,460 1111,,446600 1111,,448800 1111,,557788 1111,,554411 To financial institutions 31 Commercial banks in the United States 2,848 2,531 2,542 2,816 2,255 2,362 2,423 2,240 2,501 32 Banks in foreign countries 3,104 2,771 3,095 2,731 2,592 2,728 2,781 2,496 2,339 33 Sales finance, personal finance companies, etc 4,578 4,297 4,365 4,470 4,515 4,606 4,428 4,317 3,942 34 Other financial institutions 4,902 4,787 4,774 4,842 4,919 4,795 4,751 4,942 4,885 35 To nonbank brokers and dealers in securities 5,286 4,022 4,857 4,204 5,298 4,732 4,722 5,329 4,167 36 To others for purchasing and carrying securities4 .... 646 642 650 700 686 680 678 599 570 37 To finance agricultural production 408 436 461 469 480 480 483 506 481 38 All other 4,563 3,871 3,757 3,959 3,821 4,220 3,754 3,756 3,645 39 LESS: Unearned income 1,402 1,412 1,420 1,416 1,426 1,416 1,432 1,440 1,432 40 Loan loss reserve 2,505 2,524 2,523 2,518 2,498 2,423 2,464 2,471 2,492 41 Other loans, net 113,045 109,445 110,770 110,033 110,661 111,171 109,641 110,075 107,523 42 Lease financing receivables 2,018 2,017 2,018 2,018 2,008 2,020 2,028 2,042 2,041 43 All other assets5 62,695 63,646 62,150 58,937 56,502 60,269 62,041 63,782 60,583 44 Total assets 238,470 233,044 233,891 223,724 226,586 234,888 229,579 231,307 227,009 Deposits 45 Demand deposits 51,050 47,183 47,140 44,481 49,699 49,709 47,665 48,766 46,146 46 Mutual savings banks 314 275 461 257 179 279 294 369 312 47 Individuals, partnerships, and corporations 34,362 31,727 31,772 30,198 31,807 32,722 32,692 33,206 30,726 48 States and political subdivisions 782 654 667 704 574 747 606 710 646 49 U.S. government 535 243 689 518 555 273 381 965 915 50 Commercial banks in the United States 4,522 4,756 4,246 4,170 4,640 5,083 4,496 4,684 4,139 51 Banks in foreign countries 4,561 4,532 4,538 4,722 4,238 4,509 4,544 4,059 4,322 52 Foreign governments and official institutions 704 848 696 853 833 680 795 765 859 53 Certified and officers' checks 5,271 4,146 4,071 3,058 6,872 5,416 3,857 4,008 4,226 54 Time and savings deposits 76,349 75,173 74,484 74,560 74,760 74,811 74,976 73,852 72,728 55 Savings 23,412 23,936 24,476 24,878 25,310 26,457 26,949 27,094 27,013 56 Individuals and nonprofit organizations 21,128 21,704 22,222 22,612 23,053 24,198 24,653 24,707 24,600 57 Partnerships and corporations operated for profit .. 1,973 1,941 1,952 2,002 1,986 2,007 2,057 2,132 2,165 58 Domestic governmental units 263 244 253 215 199 205 186 197 189 59 All other 47 46 50 48 72 47 53 58 58 60 Time 52,937 51,238 50,008 49,682 49,450 48,354 48,028 46,758 45,716 61 Individuals, partnerships, and corporations 43,604 42,214 41,244 40,828 40,711 40,048 39,187 38,232 37,354 62 States and political subdivisions 2,337 2,280 2,248 2,281 2,271 2,213 2,266 2,283 2,299 63 U.S. government 81 78 73 83 81 70 303 280 230 64 Commercial banks in the United States 5,332 5,055 4,884 4,948 4,877 4,538 4,711 4,503 4,355 65 Foreign governments, official institutions, and banks 1,582 1,610 1,559 1,542 1,510 1,486 11,,556611 11,,446600 11,,447766 Liabilities for borrowed money 66 1,320 2,495 200 475 1 110 67 Treasury tax-and-loan notes 2,038 1,978 1,949 2,252 1,994 922 971 3,041 3,134 68 All other liabilities for borrowed money6 55,998 57,642 56,130 51,260 49,541 58,041 54,351 53,917 52,580 69 Other liabilities and subordinated notes and debentures . 32,571 31,873 32,579 32,028 31,783 32,156 32,270 32,007 32,190 70 Total liabilities 219,326 213,850 214,777 204,780 207,778 215,641 210,234 212,058 207,889 71 Residual (total assets minus total liabilities)7 19,144 19,194 19,114 18,944 18,807 19,248 19,346 19,250 19,120 1. Excludes trading account securities. 5. Includes trading account securities. 2. Not available due to confidentiality. 6. Includes federal funds purchased and securities sold under agreements to 3. Includes securities purchased under agreements to resell. repurchase. 4. Other than financial institutions and brokers and dealers. 7. Not a measure of equity capital for use in capital adequacy analysis or for other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A23 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1983 AAccccoouunntt Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30? Apr. 6p Apr. 13 p Apr. 20p Apr. 21p BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 638,973 635,910 633,826 632,326 633,028 638,071 636,375 639,815 634,984 2 Total loans (gross) adjusted1 507,759 503,060 503,023 501,560 503,054 505,545 503,444 504,699 500,458 3 Demand deposits adjusted2 105,008 104,006 101,918 101,290 103,2% 105,822 106,415 104,606 102,197 4 Time deposits in accounts of $100,000 or more 159,204 156,184 154,130 155,381 154,933 151,141 151,702 149,281 147,648 5 Negotiable CDs 111,311 108,466 106,400 107,372 107,072 103,565 104,101 101,563 99,741 6 Other time deposits 47,893 47,718 47,730 48,008 47,861 47,576 47,601 47,718 47,907 7 Loans sold outright to affiliates3 2,864 2,997 2,933 2,984 3,017 3,036 3,051 3,047 2,868 8 Commercial and industrial 2,282 2,357 2,322 2,366 2,390 2,412 2,426 2,427 2,243 9 Other 581 640 611 617 626 624 625 619 624 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 597,017 593,743 591,426 590,113 590,743 595,609 593,862 596,959 592,222 11 Total loans (gross) adjusted1 477,421 472,604 472,506 471,147 472,524 474,854 472,757 473,734 469,601 12 Demand deposits adjusted2 97,464 96,135 94,161 93,443 95,421 97,772 98,460 97,114 94,721 13 Time deposits in accounts of $100,000 or more 150,935 148,034 145,834 147,123 146,783 143,037 143,618 141,147 139,475 14 Negotiable CDs 106,794 104,099 101,884 102,966 102,695 99,144 99,719 97,156 95,326 15 Other time deposits 44,141 43,935 43,950 44,157 44,088 43,893 43,899 43,990 44,148 16 Loans sold outright to affiliates3 2,798 2,931 2,871 2,921 2,953 2,972 2,988 2,991 2,813 17 Commercial and industrial 2,233 2,306 2,275 2,323 2,345 2,366 2,380 2,384 2,200 18 Other 565 625 596 598 608 606 608 606 612 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted14 143,254 139,856 140,297 138,284 139,684 141,424 139,858 140,404 137,896 20 Total loans (gross) adjusted1 120,080 116,662 117,280 115,763 117,010 118,202 116,622 116,872 114,452 21 Demand deposits adjusted2 28,172 26,456 25,750 26,048 25,552 25,805 26,045 25,909 25,236 22 Time deposits in accounts of $100,000 or more 41,192 39,823 38,724 38,548 38,409 37,387 37,198 35,977 35,062 23 Negotiable CDs 30,832 29,541 28,525 28,398 28,382 27,308 27,183 25,913 25,058 24 Other time deposits 10,360 10,282 10,200 10,150 10,027 10,079 10,015 10,063 10,004 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

A24 Domestic Nonfinancial Statistics • May 1983 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 3OP Apr. 6p Apr. 13P Apr. 20p Apr. 27P 1 Cash and due from depository institutions. 7,232 7,560 7,409 7,199 7,448 7,816 7,626 7,245 7,148 2 Total loans and securities 42,716 42,911 43,418 43,767 43,530 41,268 40,265 41,666 40,949 3 U.S. Treasury securities 3,691 3,850 3,760 3,804 3,935 4,065 3,985 3,738 3,956 4 Other securities 890 903 907 908 901 876 844 833 838 5 Federal funds sold1 2,914 2,745 2,988 3,725 2,661 2,270 1,700 2,919 2,130 6 To commercial banks in United States .. 2,832 2,620 2,624 3,533 2,578 2,180 1,637 2,688 1,717 7 To others 82 125 364 193 83 90 63 230 413 8 Other loans, gross 35,221 35,412 35,761 35,330 36,033 34,057 33,736 34,176 34,026 9 Commercial and industrial 17,963 18,399 18,411 18,408 18,690 17,696 17,653 17,719 17,512 10 Bankers acceptances and commercial paper 2,698 3,052 2,848 2,830 2,700 2,621 2,676 2,616 2,566 11 Allother 15,265 15,347 15,562 15,579 15,990 15,075 14,977 15,103 14,945 12 U.S. addressees 13,424 13,500 13,803 13,748 14,252 13,406 13,323 13,379 13,274 13 Non-U.S. addressees 1,841 1,847 1,759 1,831 1,738 1,669 1,654 1,725 1,671 14 To financial institutions 13,113 12,965 13,389 13,035 13,390 12,642 12,443 12,504 12,563 15 Commercial banks in United States... 10,256 10,196 10,547 9,882 10,175 9,566 9,285 9,445 9,618 16 Banks in foreign countries 2,273 2,186 2,274 2,583 2,656 2,485 2,554 2,443 2,356 17 Nonbank financial institutions 584 584 568 570 558 591 604 617 589 18 For purchasing and carrying securities .. 426 390 464 404 426 312 244 370 356 19 All other 33,,771199 3,658 3,497 3,482 3,526 3,407 3.396 3,582 33,,559955 20 Other assets (claims on nonrelated parties) 10,268 10,233 10,553 10,409 10,242 9,904 10.358 10,461 10,781 21 Net due from related institutions 13,462 13,456 13.573 11,990 12,854 15,169 14.192 12,636 12,915 22 Total assets 73,678 74,159 74,952 73,366 74,073 74,157 72,441 72,008 71,794 23 Deposits or credit balances2 23,359 23,157 23,287 23,788 24,111 23,622 22,440 22,288 22,123 24 Credit balances 203 199 299 198 188 176 193 173 183 25 Demand deposits 1,925 1,810 1,875 1,698 1,703 2,351 1,696 1,781 1,689 26 Individuals, partnerships, and corporations 845 821 900 817 800 851 778 789 782 27 Other 1,080 989 975 881 904 1,500 918 991 906 28 Total time and savings 21,230 21,148 21,113 21,893 22,219 21,095 20,551 20,334 20,250 29 Individuals, partnerships, and corporations 18,164 17,899 17,726 18,636 18.922 17,999 17,619 17,581 17,524 30 Other 3,066 3,248 3,387 3,256 3,297 3,096 2,932 2,753 2,727 31 Borrowings3 31,420 31,328 31,902 28,993 29,914 31,988 31,842 30,453 29,993 32 Federal funds purchased4 10,590 10,595 11,104 8,117 8,255 11,190 10,905 10,024 1100,,114433 33 From commercial banks in United States 8,922 9,171 9,442 6,351 6,402 9,451 9,166 8,419 8,500 34 From others 1,667 1,424 1,661 1,766 1,852 1,739 1,738 1,605 1,643 35 Other liabilities for borrowed money.... 20,830 20,733 20,799 20,876 21,660 20,798 20,937 20,429 19,850 36 To commercial banks in United States 18,421 18,250 18,359 18,414 19,242 18,466 18,291 17,836 17,058 37 To others 2,409 2,483 2,440 2,462 2,418 2,333 2,646 2,593 2,792 38 Other liabilities to nonrelated parties 11,371 11,266 11,482 11,388 11,071 10,860 11,225 11,361 11,614 39 Net due to related institutions 7,528 8,408 8,280 9,196 8,977 7,685 6,934 7,906 8,064 40 Total liabilities 73,678 74,159 74,952 73,366 74,073 74,157 72,441 72,008 71,794 MEMO 41 Total loans (gross) and securities adjusted5 29,628 30,095 30,246 30,353 30,776 29,522 29,343 29,533 29,614 42 Total loans (gross) adjusted5 25,047 25,341 25,579 25,641 25,941 24,580 24,514 24,961 24,820 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 AU holders—Individuals, partnerships, and corporations 294.6 302.2 315.5 I 277.5 288.9 268.9 271.5 276.7 295.4 | 2 Financial business 27.8 27.1 29.8 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 t 3.1 2.9 3.1 2.9 2.9 3.0 6 Other 14.1 15.1 17.2 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 147.0 139.3 147.4 131.3 137.5 126.8 127.9 132.1 144.0 • 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 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 2.9 2.8 2.9 2.8 2.7 2.9 12 Other 7.5 7.8 8.6 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

A26 Domestic Nonfinancial Statistics • May 1983 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1982 1983 IInnssttrruummeenntt D 19 e 7 c 7 . D 19 e 7 c 8 . 1 D 9 e 7 c 9 . ' D 19 e 8 c 0 . D 19 e 8 c 1 . Oct. Nov. Dec.6 Jan. Feb. Mar. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 65,051 83,438 112,803 124,374 165,455 169,386 165,110 166,917 165,705 168,675 167,749 Financial companies2 Dealer-placed papefi 2 Total 8,796 12,181 17,359 19,599 29,904 35,073 35,219 34,216 35,324 37,536 36,254 3 Bank-related (not seasonally adjusted) 2,132 3,521 2,784 3,561 6,045 5,791 6,232 2,516 2,660 2,604 2,030 Directly placed paper4 4 Total 4400,,557744 51,647 64,757 67,854 81,715 79,533 78,290 84,204 82,978 85,020 85,858 5 Bank-related (not seasonally adjusted) 7,102 12,314 17,598 22,382 26,914 27,712 27,769 32,034 31,691 31,661 32,951 6 Nonfinancial companies5 15,681 19,610 30,687 36,921 53,836 54,780 51,601 48,497 47,403 46,119 45,637 Bankers dollar acceptances (not seasonally adjusted) 7 Total 25,450 33,700 45,321 54,744 69,226 75,811 77,125 79,543 77,529 73,706 Holder 8 Accepting banks 10,434 8,579 9,865 10,564 10,857 10,661 10,596 10,910 10,249 9,567 9 Own bills 8,915 7,653 8,327 8,963 9,743 9,399 9,455 9,471 9,067 8,258 10 Bills bought 1,519 927 1,538 1,601 1,115 1,262 1,140 1,439 1,182 1,308 Federal Reserve Banks 11 Own account 954 587 704 776 195 0 0 1,480 0 0 n.a. 12 Foreign correspondents 362 664 1,382 1,791 1,442 1,080 992 949 965 1,003 13 Others 13,700 23,870 33,370 41,614 56,926 64,070 65,537 66,204 66,315 63,136 Basis 14 Imports into United States 6,378 8,574 10,270 11,776 14,765 16,511 16,716 17,683 15,803 14,976 15 Exports from United States 5,863 7,586 9,640 12,712 15,400 16.463 16,711 16,328 17,931 17,633 16 All other 13,209 17,540 25,411 30,257 39,061 42,837 43,699 45,532 43,794 41,097 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 Rate 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 Nov. 14 12.00 Feb 16.56 Dec. 1982—Feb. 18 17.00 Nov. 22 11.50 Mar 16.50 1983—Jan. July 2 2 0 3 1 1 6 6 . . 0 5 0 0 1983—Jan. 11 11.00 A M p a r y 1 1 6 6 . . 5 5 0 0 F M e a b r . . 29 15.50 Feb. 28 10.50 June 16.50 Apr. 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 7-11, 1983 Size of loan (in thousands of dollars) All sizes 1-24 1,000 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 41,172,020 1,021,295 553,106 692,787 1,803,408 797,941 36,303,484 2 Number of loans 168,510.40 125,222 16,919 11,148 9,316 1,200 4,698 3 Weighted-average maturity (months) 4.1 4.2 4.8 4.1 3.2 .6 4 Weighted-average interest rate (percent per annum) . 10.20 14.44 13.57 13.40 12.71 11.59 9.81 5 Interquartile range1 9.42-10.33 13.12-15.48 12.68-14.37 12.47-14.37 11.68-13.75 10.64-12.56 9.38-9.96 Percentage of amount of loans 6 With floating rate 20.6 29.5 46.2 41.0 56.6 61.9 16.9 7 Made under commitment 57.3 32.2 44.5 39.2 46.5 66.7 58.8 8 With no stated maturity 7.6 12.0 19.3 13.7 21.2 30.1 6.0 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 9 Amount of loans (thousands of dollars) 3,511,595 462,857 450,537 144,074 2,454,128 10 Number of loans 24,758 21,881 2,201 218 459 11 Weighted-average maturity (months) 52.5 42.2 75.2 41.2 50.9 12 Weighted-average interest rate (percent per annum) . 11.81 14.56 13.86 12.48 10.88 13 Interquartile range1 9.95-12.68 12.68-16.08 12.68-15.16 11.57-13.03 9.76-11.73 Percentage of amount of loans 14 With floating rate 69.3 45.5 66.1 82.6 73.7 15 Made under commitment 69.0 27.0 54.5 65.7 79.8 25-49 500 and over CONSTRUCTION AND LAND DEVELOPMENT LOANS 16 Amount of loans (thousands of dollars) 1,859,351 131,679 143,094 174,067 325,998 1,084,513 17 Number of loans 26,699 16,985 4,323 2,764 2,253 374 18 Weighted-average maturity (months) 6.2 4.7 7.7 6.8 9.0 5.3 2 1 0 9 W I e n ig te h r t q e u d a -a rt v i e le r a r g a e n g in e1 t erest rate (percent per annum) 10.92-1 1 3 2 . . 8 5 1 6 13.43-1 1 6 4 . . 8 8 3 4 $8-1185..1542 12.55-1 1 5 3 . . 0 4 2 5 13.24-1 1 4 3 . . 7 8 5 9 10.09-1 1 2 1 . . 1 3 3 5 Percentage of amount of loans 21 With floating rate 55.5 19.1 15.9 66.3 67.5 59.8 22 Secured by real estate 61.1 71.4 32.7 81.3 97.9 49.3 23 Made under commitment 45.1 40.9 26.8 44.1 84.4 36.4 24 With no stated maturity 3.8 10.1 1.3 3.6 1.6 4.0 Type of construction 25 1- to 4-family 20.4 53.5 26.5 41.4 36.7 7.3 26 Multifamily 5.7 .6 1.6 2.0 4.0 8.0 27 Nonresidential 73.9 45.9 71.9 56.6 59.4 84.7 All sizes 1-9 10-24 50-99 100-249 250 and over LOANS TO FARMERS 28 Amount of loans (thousands of dollars) 1,245,489 163,829 181,268 155,502 170,728 346,388 227,774 29 Number of loans 66,458 44,427 12,094 4,528 2,701 2,349 359 30 Weighted-average maturity (months) 9.6 7.9 8.9 7.1 11.2 12.7 6.9 31 Weighted-average interest rate (percent per annum) 13.85 14.44 14.48 14.21 14.05 13.99 12.30 32 Interquartile range1 13.10-14.75 13.52-15.03 13.96-15.00 13.65-14.93 13.62-14.49 13.52-14.65 11.47-13.38 By purpose of loan 33 Feeder livestock 13.76 14.37 14.40 14.51 13.27 14.64 12.38 34 Other livestock 14.23 14.63 14.51 14.71 (2) (2) (2) 35 Other current operating expenses 14.10 14.46 14.48 13.87 14.24 14.55 12.87 36 Farm machinery and equipment 14.15 13.99 14.33 14.26 (2) (2) (2) 37 Other 13.14 14.69 14.91 14.43 14.11 12.94 10.96 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

A28 Domestic Nonfinancial Statistics • May 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, week ending IInnssttrruummeenntt 11998800 11998811 11998822 Jan. Feb. Mar. Apr. Apr. 1 Apr. 8 Apr. 15 Apr. 22 Apr. 29 MONEY MARKET RATES 1 Federal funds12 13.36 16.38 12.26 8.68 8.51 8.77 8.80 8.88 9.43 8.76 8.70 8.58 Commercial paper3 4 2 1-month 12.76 15.69 11.83 8.19 8.30 8.56 8.58 9.04 8.86 8.53 8.47 8.36 3 3-month 12.66 15.32 11.89 8.17 8.34 8.52 8.53 8.95 8.77 8.49 8.43 8.33 4 6-month 12.29 14.76 11.89 8.15 8.39 8.48 8.48 8.90 8.70 8.44 8.38 8.30 Finance paper, directly placed3-4 5 1-month 12.44 15.30 11.64 8.03 8.25 8.48 8.52 8.87 8.76 8.46 8.46 8.34 6 3-month 11.49 14.08 11.23 7.96 8.24 8.35 8.41 8.66 8.62 8.37 8.33 8.29 7 6-month 11.28 13.73 11.20 7.97 8.26 8.35 8.41 8.66 8.62 8.37 8.33 8.28 Bankers acceptances4 5 8 3-month 12.72 15.32 11.89 8.19 8.36 8.54 8.49 8.84 8.73 8.48 8.45 8.29 9 6-month 12.25 14.66 11.83 8.19 8.41 8.52 8.43 8.85 8.65 8.42 8.39 8.27 Certificates of deposit, secondary market6 10 1-month 12.91 15.91 12.04 8.28 8.40 8.62 8.60 8.97 8.91 8.57 8.52 8.39 11 3-month 13.07 15.91 12.27 8.36 8.54 8.69 8.63 9.05 8.93 8.61 8.57 8.40 12 6-month 12.99 15.77 12.57 8.46 8.77 8.80 8.76 9.16 9.01 8.75 8.71 8.56 13 Eurodollar deposits, 3-month2 14.00 16.79 13.12 8.97 9.14 9.25 9.23 9.54 9.59 9.30 9.14 9.09 U.S. Treasury bills4 Secondary market7 14 3-month 11.43 14.03 10.61 7.86 8.11 8.35 8.21 8.64 8.45 8.16 8.12 8.11 15 6-month 11.37 13.80 11.07 7.93 8.23 8.37 8.30 8.67 8.51 8.25 8.27 8.16 16 1-year 10.89 13.14 11.07 8.01 8.28 8.36 8.29 8.60 8.46 8.26 8.29 8.16 Auction average8 17 3-month 11.506 14.077 10.686 7.810 8.130 8.304 8.252 8.680 8.664 8.165 8.03 8.15 18 6-month 11.374 13.811 11.084 7.898 8.233 8.325 8.343 8.705 8.705 8.248 8.20 8.22 1199 1100..774488 1133..115599 1111..009999 88..000077 88..330088 88..442277 88..227755 88..227755 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-vear 12.05 14.78 12.27 8.62 8.92 9.04 8.98 9.34 9.17 8.94 8.98 8.83 9.65 9.40 9.30 2n2 2 2 - -1 y / e 2 a -y r ear12 11.77 14.56 12.80 9.33 9.64 9.66 9.57 9.89 9 9. . 7 7 5 2 9.54 9 9 . . 5 7 7 0 9.44 24 3-year 11.55 14.44 12.92 9.64 9.91 9.84 9.76 10.06 9.90 9.71 9.77 9.68 25 5-year 11.48 14.24 13.01 10.03 10.26 10.08 10.02 10.28 10.13 9.98 10.02 9.95 26 7-year 11.43 14.06 13.06 10.36 10.56 10.31 10.29 10.53 10.40 10.26 10.28 10.20 27 10-year 11.46 13.91 13.00 10.46 10.72 10.51 10.40 10.62 10.52 10.37 10.38 10.33 28 20-year 11.39 13.72 12.92 10.78 11.03 10.80 10.63 10.84 10.74 10.59 10.62 10.57 29 30-year 11.30 13.44 12.76 10.63 10.88 10.63 10.48 10.68 10.58 10.43 10.47 10.43 Composite13 30 Over 10 years (long-term) 10.81 12.87 12.23 10.37 10.60 10.34 10.19 10.40 10.30 10.15 10.18 10.13 State and local notes and bonds Moody's series14 <1 Aaa 7.85 10.43 10.88 9.00 8.80 8.42 8.28 8.50 8.40 8.20 8.30 8.20 32 Baa 9.01 11.76 12.48 10.98 10.59 10.05 9.75 10.10 10.00 9.80 9.80 9.40 33 Bond Buyer series15 8.59 11.33 11.66 9.50 9.58 9.20 9.05 9.38 9.23 9.04 9.09 8.82 Corporate bonds Seasoned issues16 34 All industries 12.75 15.06 14.94 12.90 13.02 12.71 12.44 12.69 12.57 12.43 12.38 12.35 35 Aaa 11.94 14.17 13.79 11.79 12.01 11.73 11.51 11.75 11.66 11.51 11.46 11.43 36 Aa 12.50 14.75 14.41 12.35 12.58 12.32 12.06 12.31 12.19 12.05 11.99 12.01 37 A 12.89 15.29 15.43 13.53 13.52 13.15 12.86 13.14 12.99 12.86 12.81 12.80 38 Baa 13.67 16.04 16.11 13.94 13.95 13.61 13.29 13.56 13.46 13.31 13.25 13.16 Aaa utility bonds17 39 12.74 15.56 14.41 12.05 12.08 11.70 11.41 11.61 11.28 11 41 11.32 40 Recently offered issues 12.70 15.56 14.45 11.84 12.09 11.74 11.50 11.79 11.63 11.39 11.50 11.34 MEMO: Dividend/price ratio18 41 Preferred stocks 10.60 12.36 12.53 11.23 11.13 10.86 10.80 10.78 10.76 10.88 10.82 10.73 42 Common stocks 5.26 5.20 5.81 4.79 4.74 4.59 4.44 4.56 4.63 4.46 4.35 4.33 1. Weekly and monthly figures are averages of all calendar days, where the 11. The figure for April 1 is the average Treasury rate for the five business days rate for a weekend or holiday is taken to be the rate prevailing on the preceding ending Thursday, March 31. Subsequent biweekly figures will be the average of business day. The daily rate is the average of the rates on a given day weighted by five business days ending on the Monday following the date indicated. Beginning the volume of transactions at these rates. April 1, 1983, this rate determines the maximum interest payable in the following 2. Weekly figures are statement week averages—that is, averages for the two-week period on I-V2 year small saver certificates. (See table 1.16.) week ending Wednesday. 12. Each biweekly figure is the average of five business days ending on the 3. Unweighted average of offering rates quoted by at least five dealers (in the Monday following the date indicated. Until March 31, 1983, the biweekly rate case of commercial paper), or finance companies (in the case of finance paper). determined the maximum interest rate payable in the following two-week period Before November 1979, maturities for data shown are 30-59 days, 90-119 days, on 2-Vi year small saver certificates. (See table 1.16.) and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150- 13. Unweighted averages of yields (to maturity or call) for all outstanding notes 179 days for finance paper. and bonds neither due nor callable in less than 10 years, including several very low 4. Yields are quoted on a bank-discount basis, rather than an investment yield yielding "flower" bonds. basis (which would give a higher figure). 14. General obligations only, based on figures for Thursday, from Moody's 5. Dealer closing offered rates for top-rated banks. Most representative rate Investors Service. (which may be, but need not be, the average of the rates quoted by the dealers). 15. General obligations only, with 20 years to maturity, issued by 20 state and 6. Unweighted average of offered rates quoted by at least five dealers early in local governmental units of mixed quality. Based on figures for Thursday. the day. 16. Daily figures from Moody's Investors Service. Based on yields to maturity 7. Unweighted average of closing bid rates quoted by at least five dealers. on selected long-term bonds. 8. Rates are recorded in the week in which bills are issued. Beginning with the 17. Compilation of the Federal Reserve. Issues included are long-term (20 Treasury bill auction held on Apr. 18, 1983, bidders were required to state the years or more). New-issue yields are based on quotations on date of offering; percentage yield (on a bank discount basis) that they would accept to two decimal those on recently offered issues (included only for first 4 weeks after termination places. Thus, average issuing rates in bill auctions will be reported using two of underwriter price restrictions), on Friday close-of-business quotations. rather than three decimal places. 18. Standard and Poor's corporate series. Preferred stock ratio based on a 9. Yields are based on closing bid prices quoted by at least five dealers. sample of ten issues: four public utilities, four industrials, one financial, and one 10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields transportation. Common stock ratios on the 500 stocks in the price index. are read from a yield curve at fixed maturities. Based on only recently issued, actively traded securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A29 1.36 STOCK MARKET Selected Statistics 1982 1983 IInnddiiccaattoorr 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 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 62.91 70.21 76.10 79.75 80.30 83.25 84.74 87.50 90.61 2 Industrial 78.64 85.44 78.18 70.98 80.08 86.67 90.76 92.00 95.37 97.26 100.61 104.46 3 Transportation 60.52 72.61 60.41 53.98 61.39 66.64 71.92 73.40 75.65 79.44 83.28 85.26 4 Utility 37.35 38.90 39.75 38.19 40.36 42.67 43.46 42.93 45.59 45.92 45.89 46.22 5 Finance 64.28 73.52 71.99 62.84 69.66 80.59 88.66 86.22 85.66 86.57 93.22 99.07 6 Standard & Poor's Corporation (1941-43 = 10)1 ... 118.71 128.05 119.71 109.65 122.43 132.66 138.10 139.37 145.13 146.80 151.88 157.71 7 American Stock Exchange (Aug. 31, 1973 = 100) 300.94 343.58 282.62 253.54 286.22 308.74 333.54 333.36 360.92 373.84 383.76 405.02 Volume of trading (thousands of shares) 8 New York Stock Exchange 44,867 46,967 64,617 76,031 73,710 98,508 88,431 76,463 88,463 85,026 82,694 89,627 9 American Stock Exchange 6,377 5,346 5,283 5,567 5,064 7,828 8,672 7,475 9,220 8,256 7,354 8,576 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 14,721 14,411 13,325 11,396 11,208 11,728 12,459 13,325 13,370 13,985 14,483 11 Margin stock3 14,500 14,150 12,980 11,150 10,950 11,450 12,170 12,980 13,070 13,680 14,170 12 Convertible bonds 219 259 344 245 257 277 288 344 299 304 312 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 4,470 4,990 5,520 5,600 5,735 6,257 6,195 6,370 15 Cash-account 6,070 7,150 8,390 7,550 7,475 8,120 8,395 8,390 8,225' 7,955r 7,970 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 30.0 27.0 21.0 20.0 21.0 18.0 18.0 17.0 18 40-49 30.0 24.0 24.0 26.0 26.0 24.0 21.0 24.0 23.0 20.0 21.0 19 50-59 25.0 17.0 24.0 18.0 20.0 22.0 25.0 24.0 25.0 27.0 25.0 n.a. 20 60-69 14.0 10.0 14.0 12.0 12.0 16.0 15.0 14.0 16.0 16.0 18.0 21 70-79 9.0 6.0 9.0 8.0 8.0 9.0 10.0 9.0 9.0 10.0 10.0 22 80 or more 8.0 6.0 8.0 6.0 7.0 8.0 9.0 8.0 9.0 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 31,102 31,644 33,689 34,909 35,598 43,838r 43,006 43,472 Distribution by equity status (percent) 24 Net credit status 47.8 58.0 62.0 60.0 61.0 61.0 62.0 62.0 65.(K 66.0 62.0 n.a. Debt status, equity of 25 60 percent or more 44.4 31.0 29.0 28.0 27.0 29.0 29.0 29.0 28.0' 27.0 28.0 26 Less than 60 percent 7.7 11.0 9.0 12.0 12.0 10.0 9.0 9.0 8.0 7.0 9.0 Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 5. Each customer's equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 6. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers 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

A30 Domestic Nonfinancial Statistics • May 1983 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1982 1983 AAccccoouunntt 11998800 11998811 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.P Savings and loan associations 1 Assets 630,712 664,167 692,759 697,690 703,399 691,077 692,549 697,189 706,045 714,676 772,352 729,012 2 Mortgages 503,192 518,547 512,997 510,678 509,776 493,899 489,923 488,614 482,234 481,470 481,090 479,405 3 Cash and investment securities' 57,928 63,123 70,824 72,854 74,141 74,692 75,638 78,122 84,767 90,662 94,080 97,737 4 Other 69,592 82,497 108,938 114,158 119,482 122,486 126,988 130,453 139,044 142,544 147,182 151,870 5 Liabilities and net worth 630,712 664,167 692,759 697,690 703,399 691,077 692,549 697,189 706,045 714,676 772,352 729,012 6 Savings capital 511,636 525,061 538,667 539,830 542,648 547,628 547,112 548,439 566,189 582,918 591,913 500,737 7 Borrowed money 64,586 88,782 96,850 98,433 98,803 99,771 100,881 102,948 97,979 88,925 86,544 86,160 8 FHLBB 47,045 62,794 66,925 67,019 66,374 65,567 65,015 64,202 63,861 60,415 58,841 57,748 9 Other 17,541 25,988 29,925 31,414 32,429 34,204 35,866 38,746 34,118 28,510 27,703 28,412 10 Loans in process 8,767 6,385 7,116 7,250 7,491 8,084 8,484 8,967 9,934 10,453 11,039 12,423 11 Other 12,394 15,544 24,671 27,375 29,965 19,202 20,018 21,048 15,720 16,658 17,524 15,067 12 Net worth2 33,329 28,395 25,455 24,802 24,492 24,476 24,538 24,754 26,157 26,175 26,371 27,048 13 MEMO: Mortgage loan commitments outstanding3 16,102 15,225 16,828 15,924 16,943 17,256 18,407 19,682 18,054 19,453 22,051 25,165 Mutual savings banks4 14 Assets 171,564 175,728 175,225 175,683 172,901 173,487 172,908 172,287 174,204 174,720 176,370 Loans 15 Mortgage 99,865 99,997 96,364 96,282 94,498 94,382 94,261 94,017 94,452 93,883 93,545 16 Other 11,733 14,753 16,721 17,128 16,929 17,458 17,035 16,702 16,876 17,460 1188,,226622 Securities 17 U.S. government5 8,949 9,810 10,217 10,058 9,675 9,404 9,219 9,456 9,685 10,244 11,076 18 State and local government 2,390 2,288 2,240 2,236 2,201 2,191 2,505 2,496 2,500 2,453 2,446 19 Corporate and other6 39,282 37,791 36,612 36,651 35,937 35,845 35,599 35,753 36,286 36,371 36,850 20 Cash 4,334 5,442 6,074 6,225 6,460 6,695 6,749 6,291 6,920 6,282 6,106 21 Other assets 5,011 5,649 6,997 7,104 7,192 7,514 7,540 7,572 7,485 8,062 8,085 n a. 22 Liabilities 171,564 175,728 175,225 175,683 172,901 173,487 172,908 172,287 174,204 174,720 176,370 23 Deposits 154,805 155,110 154,392 154,314 152,014 153,089 152,210 151,304 155,225 157,161 159,193 24 Regular7 151,416 153,003 152,167 151,969 149,736 150,795 149,928 149,167 152,735 154,918 156,939 25 Ordinary savings 53,971 49,425 47,977 47,580 46,901 47,496 48,520 49,208 56,548 41,962 41,095 26 Time 97,445 103,578 117,449 116,998 116,213 103,299 101,408 99,959 110,330 104,100 100,676 27 Other 2,086 2,108 2,225 2,345 2,278 2,294 2,283 2,137 2,490 2,243 2,254 28 Other liabilities 6,695 10,632 11,264 11,926 11,671 11,166 11,556 11,893 9,742 7,637 7,460 29 General reserve accounts 11,368 9,986 9,570 9,443 9,216 9,232 9,141 9,089 9,238 9,204 9,205 30 MEMO: Mortgage loan commitments outstanding* 1,476 1,293 1,010 992 1,056 1,217 1,281 1,400 1,285 1,253 1,295 Life insurance companies 31 Assets 479,210 525,803 547,075 551,124 557,094 563,321 571,902 578,200 584,311 589,490 595,959 Securities 32 Government 21,378 25,209 28,243 28,694 30,263 30,759 31,791 32,682 34,558 35,567 36,946 33 United States9 5,345 8,167 10,403 10,774 12,214 12,606 13,538 14,370 16,072 16,731 17,877 34 State and local 6,701 7,151 7,643 7,705 7,799 7,834 7,871 7,935 8,094 8,225 8,333 35 Foreign10 9,332 9,891 10,197 10,215 10,250 10,319 10,382 10,377 10,392 10,611 10,736 n a. 36 Business 238,113 255,769 265,080 267,627 270,029 273,539 279,918 283,650 283,799 290,178 293,427 37 Bonds 190,747 208,098 219,006 221,503 221,642 223,783 226,879 229,101 228,220 233,380 235,376 38 Stocks 47,366 47,670 46,074 46,124 48,387 49,756 53,039 54,549 55,579 56,798 58,051 39 Mortgages 131,030 137,747 139,539 140,044 140,244 140,404 140,678 140,956 141,919 142,277 142,683 40 Real estate 15,063 18,278 19,959 20,198 20,176 20,268 20,293 20,480 21,019 20,922 21,014 41 Policy loans 41,411 48,706 51,438 51,867 • 52,238 52,525 52,751 52,916 53,114 53,239 53,383 42 Other assets 31,702 40,094 42,816 42,694 44,144 45,826 46,471 47,516 49,902 47,307 48,506 Credit unions" 43 Total assets/liabilities and capital 71,709 77,682 84,107 84,423 85,102 86,554 88,144 89,261 69,673 69,741 71,293 73,737 44 Federal 39,801 42,382 45,705 45,931 46,310 47,076 47,649 48,272 45,483 45,418 46,449 48,057 45 State 31,908 35,300 38,402 38,492 38,792 39,478 40,495 40,989 24,190 23,323 24,844 25,680 46 Loans outstanding 47,774 50,448 49,919 50,133 50,733 51,047 50,934 50,936 43,577 43,293 43,135 43,433 47 Federal 25,627 27,458 27,295 27,351 27,659 27,862 27,789 27,824 28,184 27,966 27,832 27,974 48 State 22,147 22,990 22,624 22,782 23,074 23,185 23,145 23,139 15,393 15,328 15,303 15,459 49 Savings 64,399 68,871 74,834 75,088 75,331 76,874 78,529 79,799 63,071 63,321 64,684 67,266 50 Federal (shares) 36,348 37,574 40,710 40,969 41,178 41,961 42,852 43,413 41,341 41,441 42,404 43,890 51 State (shares and deposits) 28,051 31,297 34,124 34,119 34,153 34,913 35,677 36,386 21,730 21,880 22,280 23,376 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 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 1983 11998800 11998811 11998822 H2 HI H2 Jan. Feb. Mar. U.S. budget 1 Receipts1 517,112 599,272 617,766 301,777 322,478 286,338 57,505 38,816 43,504 2 Outlays1-2 576,675 657,204 728,375 358,558 348,678 390,846 67,087 64,152 69,540 3 Surplus, or deficit (-) -59,563 -57,932 -110,609 -56,780 -26,200 -104,508 -9,582 -25,336 -26,036 4 Trust funds 8,801 6,817 5,456 -8,085 -17,690 -6,576 -3,623 -4,830 2,085 5 Federal funds3 -68,364 -64,749 -116,065 -48,697 -43,889 -97,934 -5,959 -20,506 -28,120 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -14,549 -20,769 -14,142 -8,728 -7,942 -4,923 -271 -52 -1,244 77 OOtthheerr44 303 -236 -3,190 -1,752 227 -2,267 -63 47 -16 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 -9,916 -25,341 -27,296 Source or financing 9 Borrowing from the public 70,515 79,329 134,993 54,081 41,728 119,609 6,419 17,919 31,303 10 Cash and monetary assets (decrease, or increase (-))5 -355 -1,878 -11,911 -1,111 -408 -9,057 2,179 7,496 -6,767 11 Other6 3,648 1,485 4,858 14,290 -7,405 1,146 1,318 -74 2,761 MEMO: 12 Treasury operating balance (level, end of period) 20,990 18,670 29,164 12,046 10,999 19,773 17,502 10,006 15,452 13 Federal Reserve Banks 4,102 3,520 10,975 4,301 4,099 5,033 2,627 2,856 3,572 14 Tax and loan accounts 16,888 15,150 18,189 7,745 6,900 14,740 14,875 7,150 11,880 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 11. As of December 1982, National Credit Union Administration data no longer 1. Holdings of stock of the Federal Home Loan Banks are included in "other includes either federally chartered or state chartered corporate credit unions. 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. 10. Issues of foreign governments and their subdivisions and bonds of the International Bank for Reconstruction and Development. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • May 1983 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyy 111999 eee 888 aaarrr 000 yyy 111999 eee 888 aaa 111 rrr yyy 111 eee 999888 aaarrr 222 1981 1982 1983 H2 HI H2 Jan. Feb. Mar. RECEIPTS 1 All sources1 517,112 599,272 617,766 301,777 322,478 286,338 57,505 38,816 43,504 2 Individual income taxes, net 244,069 285,917 297,744 147,035 150,565 145,676 34,151 20,544 15,658 3 Withheld 223,763 256,332 267,513 134,199 133,575 131,567 20,953 22,288 24.808 4 Presidential Election Campaign Fund ... 39 41 39 5 34 5 0 4 9 5 Nonwithheld 63,746 76,844 84,691 17,391 66,174 20,040 13,217 1,970 3.604 6 Refunds 43,479 47,299 54,498 4,559 49,217 5,938 18 33,,771177 1122,,776644 Corporation income taxes 7 Gross receipts 72,380 73,733 65,991 31,056 37,836 25,661 2,394 2,115 6,985 8 Refunds 7,780 12,596 16,784 6,847' 88,,002288 11,467 11,,223300 22,,338888 22,,661122 9 Social insurance taxes and contributions, net 157,803 182,720 201,498 91,592 108,079 94,278 1177,,007711 1133,,779977 1177,,993399 10 Payroll employment taxes and contributions2 133,025 156,932 172,744 82,984 88,795 85,063 1155,,447799 11,845 1166,,997755 11 Self-employment taxes and contributions3 5,723 6,041 7,941 244 7,357 177 415 43 418 12 Unemployment insurance 15,336 15,763 16,600 6,355 9,809 6,857 789 1,553 160 13 Other net receipts1-4 3,719 3,984 4,212 2,009 2,119 2,181 387 356 387 14 Excise taxes 24,329 40,839 36,311 22,097 17,525 16,556 2,707 2,795 2,755 15 Customs deposits 7,174 8,083 8,854 4,661 4,310 4,299 485 503 733 16 Estate and gift taxes 6,389 6,787 7,991 3,742 4,208 3,445 553 349 500 17 Miscellaneous receipts5 12,748 13,790 16,161 8,441 7,984 7,891 1,374 1,101 1,545 OUTLAYS 18 All types'-6 576,675 657,204 728,424R 358,532R 348,683' 390,847' 67,087 64,152 69,540 19 National defense 135,856 159,765 187,418 87,421 93,154 100,419 ' 16,297 16,567 19,038 20 International affairs 10,733 11,130 9,982 4,646' 5,183 4,406 804 108 1,601 21 General science, space, and technology ... 5,722 6,359 7,070 3,388 3,370 3,903 487 610 526 22 Energy 6,313 10,277 4,674 4,394 2,946r 2,059 296 330 488 23 Natural resources and environment 13,812 13,525 12,934 7,296 5,636' - 6,940 1,007 998 913 24 Agriculture 4,762 5,572 14,875 5,181 7,087 13,260 3,223 2,170 1,003 25 Commerce and housing credit 7,788 3,946 3,865 1,825 1,408' 2,244 1,213 -559 395 26 Transportation 21,120 23,381 20,560 10,753 9,915 10,686 1,718 1,557 1,776 27 Community and regional development .... 10,068 9,394 7,165 4,269 3,055' 4,186 504 405 562 28 Education, training, employment, social services 30,767 31,402 26,300 13,874'" 12,607' 12,187 2,259 2,159 2,114 29 Health1 55,220 65,982 74,017 35,322 37,219' 39,073 6,612 6,575 6,913 30 Income security6 193,100 225,101 248,343 129,269 112,782 133,779 23,010 22,812 24,840 31 Veterans benefits and services 21,183 22,988 23,955 12,880 10,865 13,241 837 2,063 2,292 32 Administration of justice 4,570 4,696 4,671 2,290 2,334 2,373 448 412 473 33 General government 4,505 4,614 4,726 2.320' 2,400' 2,322 337 345 427 34 General-purpose fiscal assistance 8,584 6,856 6.393 3,043 3,325 3,152 1,269 89 40 35 Net Interest' 52,458 68,726 84,697 39,952' 41,883' 44,948 7,616 8,416 6,854 36 Undistributed offsetting receipts8 -9,887 -16,509 -13,270 -9,564 -6,490 -8,333 -849 -905 -715 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was voluntary hospital insurance premiums, previously included in other insurance reclassified from an off-budget agency to an on-budget agency in the Department receipts, have been reclassified as offsetting receipts in the health function. of Labor. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. 7. Net interest function includes interest received by trust funds. 3. Old-age, disability, and hospital insurance. 8. Consists of rents and royalties on the outer continental shelf and U.S. 4. Federal employee retirement contributions and civil service retirement and government contributions for employee retirement. disability fund. 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. receipts. 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 A3 3 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 ? 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 1,141.4 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 Dec. Jan. Feb. Mar. Apr. 1 Total gross public debt 789.2 845.1 930.2 1,028.7 1,197.1 1,201.0 1,215.3 1,244.5 1,247.9 By type 2 Interest-bearing debt 782.4 844.0 928.9 1,027.3 1,195.5 1,199.6 1,213.7 1,243.0 1,242.1 3 Marketable 487.5 530.7 623.2 720.3 881.5 488.7 907.7 937.8 935.5 4 Bills 161.7 172.6 216.1 245.0 311.8 308.1 314.9 331.9 325.9 5 Notes 265.8 283.4 321.6 375.3 465.0 473.0 481.3 494.4r 494.9 6 Bonds 60.0 74.7 85.4 99.9 104.6 107.6 111.5 111.4 114.6 7 Nonmarketable1 294.8 313.2 305.7 307.0 314.0 310.9 306.1 305.2 306.6 8 2.2 2.2 9 State and local government series 24.3 24.6 23.8 23.0 25.7 25.6 25.7 27.1 28.0 10 Foreign issues3 29.6 28.8 24.0 19.0 14.7 14.0 12.7 12.4 12.0 11 Government 28.0 23.6 17.6 14.9 13.0 12.7 11.4 11.1 10./ 12 Public 1.6 5.3 6.4 4.1 1.7 1.3 1.3 1.3 1.3 13 Savings bonds and notes 80.9 79.9 72.5 68.1 68.0 68.1 68.3 68.5 68.8 14 Government account series4 157.5 177.5 185.1 196.7 205.4 203.0 199.1 197.0 197.6 15 Non-interest-bearing debt 6.8 1.2 1.3 1.4 1.6 1.4 1.6 1.5 5.9 By holder5 16 U.S. government agencies and trust funds 170.0 187.1 192.5 203.3 209.4 17 Federal Reserve Banks 109.6 117.5 121.3 131.0 139.3 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. n a. 23 State and local governments 64.4 69.9 78.8 85.6 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 IVi 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

A34 Domestic Nonfinancial Statistics • May 1983 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1983 1983, week ending Wednesday IItteemm 11997799 11998800 11998811 Jan. Feb. Mar.P Mar. 23 Mar. 30 Apr. 6 Apr. 13 Apr. 20 Apr. 27 Immediate delivery1 1 U.S. government securities 13,183 18,331 24,728 35,736 40,618 39,280 40,663 37,396 35,286 36,209 39,680 39,318 By maturity 2 Bills 7,915 11. 413 14,768 19,443 20,355 20,624 21,009 19,283 22,486 23,128 22,239 20,877 3 Other within 1 year 454 421 621 821 706 530 649 403 636 587 731 580 4 1-5 years 2,417 3,330 4,360 6,975 9,247 8,095 11,359 6,213 4,844 5,781 7,011 10,251 5 5-10 years 1,121 1,464 2,451 4,263 5,272 5,781 4,262 6,314 3,697 3,374 4,867 3,771 6 Over 10 years 1,276 1,704 2,528 4,234 5,038 4,249 3,384 5,183 3,622 3,339 4,833 3,839 By type of customer 7 U.S. government securities dealers 1,448 1, 484 1,640 2,219 1,905 1,837 2,011 1,617 1,738 3,338 1,824 2,124 8 U.S. government securities brokers 5,170 7,610 11,750 17,130 20,025 19,174 20,179 17,545 16,913 16,097 19,926 19,129 9 All others2 6,564 9,237 11,337 16,387 18,688 18,269 18,473 18,234 16,635 16,774 17,930 18,065 10 Federal agency securities 2,723 3,258 3,306 5,199 5,005 5,055 3,901 4,030 4,691 4,920 5,773 6,191 11 Certificates of deposit 1,764 2,472 4,477 4,747 4,404 3,958 3,570 3,431 3,704 4,864 4,329 4,798 12 Bankers acceptances 1,807 2,827 2,598 2,393 2,381 2,049 2,520 3,050 3,313 2,909 13 Commercial paper 6,128 7,911 7,806 7,646 7,741 7,916 9,875 8,355 8,736 7,746 Futures transactions3 14 Treasury bills 3,523 5,173 6,277 6,174 6,445 5,257 6,029 5,477 6,237 6,071 15 Treasury coupons n.a. n. a. 1,330 1,672 2,086 2,223 2,204 1,984 1,431 1,428 2,107 1,842 16 Federal agency securities 234 169 236 274 198 241 165 144 193 241 Forward transactions4 17 U.S. government securities 365 1,035 1,699 1,540 2,427 1,514 1,135 1,590 1,046 1,249 18 Federal agency securities 1,370 1,136 1,175 1,423 1,420 1,086 1,347 1,642 1,770 1,131 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 1983 1983, week ending Wednesday IItteemm 11997799 11998800 11998811 Jan. Feb. Mar.P Mar. 9 Mar. 16 Mar. 23 Mar. 30 Apr. 6 Positions Net immediate1 1 U.S. government securities 3,223 4,306 9,033 14,670 14,174 12,267 16,566 8,536 10,263 8,895 7,473 ? Bills 3,813 -,103 6,485 9,953 10,534 9,786 13,273 8,114 9,555 7,197 7,063 3 Other within 1 year -325 -1,062 -1,526 -230 -428 -11 106 21 -30 -44 -350 4 1-5 years -455 434 1,488 3,091 2,726 1,633 1,638 222 1,573 955 71 <i 5-10 years 160 166 292 -193 -291 -557 -263 -1,447 -1,584 -119 -523 6 Over 10 years 30 665 2,294 2,049 1,633 1,417 1,812 1,627 749 906 1,212 7 Federal agency securities 1,471 797 2,277 5,125 4,455 4,742 5,081 5,394 4,475 4,745 4,937 8 Certificates of deposit 2,794 3,115 3,435 6,180 5,683 6,099 6,293 6,178 5,793 6,139 5,727 9 Bankers acceptances 1,746 3,551 2,901 2,866 3,139 2,945 2,667 2,400 2,400 10 Commercial paper 2,658 3,436 2,892 3,163 3,722 3,183 3,047 2,635 3,035 Futures positions 11 Treasury bills -8,934 -7,108 -3,221 -1,338 -2,280 400 1,144 749 -2,103 12 Treasury coupons n a. n a. -2,733 -2,142 -1,217 -1,869 -1,785 -1,869 -1,689 -2,024 -2,161 13 Federal agency securities 522 -343 -134 -72 -179 23 25 -52 -108 Forward positions 14 U.S. government securities -603 -1,397 -1,061 -1,690 -970 -2,689 -2,790 -1,027 -813 15 Federal agency securities -451 -2,329 -1,962 -1,869 -1,695 -2,741 -1,903 -1,511 -1,664 Financing2 Reverse repurchase agreements 16 Overnight and continuing.... 14,568 27,038 24,136 19,668 19,175 20,775 18,304 19,225 17 Term agreements 32,048 49,013 49,425 49.637 49,386 48,737 50,234 50,509 Repurchase agreements4 18 Overnight and continuing 35,919 59,753 56,033 51,228 53,666 51,976 48,498 47,605 19 Term agreements 29,449 43,846 42,891 43,450 42,924 42,104 44,364 44,157 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A3 3 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 agencies' 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 agencies1 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 V 6,657 6,718 6,591 6,404 6,257 19 Other 1 1 2 2 2 1 1 1 1 1 MEMO: 20 Federal Financing Bank debt1' 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

A36 Domestic Nonfinancial Statistics • May 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,, 11998800 11998811 11998822 July Aug. Sept. Oct. Nov. Dec. Jan/ 1 All issues, new and refunding1 48,367 47,732 77,296 5,583 6,510 6,497 8,260 9,850 9,085 3,625 Type of issue 2 General obligation 14,100 12,394 20,881 974 1,683 1,701 2,262 3,352 1,543 847 3 U.S. government loans2 38 34 225 22 25 30 30 34 37 0 4 Revenue 34,267 35,338 56,415 4,609 4,827 4,796 5,998 6,498 7,542 2,778 5 U.S. government loans2 57 55 461 49 52 54 57 57 62 0 Type of issuer 6 State 5,304 5,288 8,352 257 835 1,077 1,010 1,088 169 237 7 Special district and statutory authority 26,972 27,499 44,111 3,695 3,654 3,455 5,101 5,269 5,824 2,100 8 Municipalities, counties, townships, school districts 16,090 14,945 24,833 1,631 2,021 1,965 2,149 3,493 3,092 1,288 9 Issues for new capital, total 46,736 46,530 73,040 5,396 6,083 6,294 7,073 9,106 8,886 3,127 Use of proceeds 10 Education 4,572 4,547 6,262 293 516 830 532 716 810 352 11 Transportation 2,621 3,447 6,232 118 768 551 636 1,286 1,338 49 12 Utilities and conservation 8,149 10,037 14,154 1,272 685 283 1,335 1,961 1,830 956 13 Social welfare 19,958 12,729 25,821 2,705 2,500 2,542 2,619 2,204 2,963 817 14 Industrial aid 3,974 7,651 7,751 562 728 1,048 556 729 1,066 306 15 Other purposes 7,462 8,119 12,820 446 886 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 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998800 11998811'' 11998822'' oorr uussee 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 84 205 311 208 115 372 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 717r 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 96 495 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. INVESTMENT COMPANIES1 1 Sales of own shares2 20,596 45,675 4,322 4,709 5,668 5,815 5,291 8,095 6,115 7,927 2 Redemptions of own shares3 15,866 30,078 2,335 3,052 3,046 3,493 4,835 4,233 3,510 5,077 3 Net sales 4,730 15,597 1,987 1,657 2,622 2,322 456 3,862 2,605 2,850 4 Assets4 55,207 76,741 62,212 63,783 70,964 74,864 76,841 80,384 84,981 89,342 5 Cash position5 5,277 5,999 6,039 5,556 5,948 5,838 6,040 6,943 7,404 7,764 6 Other 49,930 70,742 56,173 58,227 65,016 69,026 70,801 73,441 77,577 81,578 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'' QL Q2 Q3 Q4 QL Q2 Q3 Q4 1 Corporate profits with inventory valuation and capital consumption adjustment 181.6 190.6 160.8 200.3 185.1 193.1 183.9 157.1 155.4 166.2 164.6 2 Profits before tax 242.4 232.1 174.9 253.1 225.4 233.3 216.5 171.6 171.7 180.3 175.9 3 Profits tax liability 84.6 81.2 57.7 91.5 79.2 82.4 71.6 56.7 55.3 60.9 58.0 4 Profits after tax 157.8 150.9 117.1 161.6 146.2 150.9 144.9 114.9 116.3 119.4 117.9 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 46.9 100.1 82.2 84.1 76.8 46.1 47.0 48.8 45.5 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

A38 Domestic Nonfinancial Statistics • May 1983 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1981 1982 AAccccoouunntt 11997766 11997777 11997788 11997799 11998800 Q4 Ql Q2 Q3 Q4 1 Current assets 827.4 912.7 1,043.7 1,218.2 1,333.5 1,426.8 1,424.6 1,422.6 1,446.9 1,430.9 2 Cash 88.2 97.2 105.5 118.0 127.1 131.9 122.0 124.4 126.9 143.7 3 U.S. government securities 23.5 18.2 17.3 17.0 19.3 18.0 16.9 17.1 19.6 23.1 4 Notes and accounts receivable 292.9 330.3 388.0 461.1 510.6 536.2 539.2 536.8 539.7 517.0 5 Inventories 342.5 376.9 431.6 505.5 543.7 587.1 592.7 588.4 598.0 577.5 6 Other 80.3 90.1 101.3 116.7 132.7 153.6 153.7 155.8 162.7 169.6 7 Current liabilities 495.1 557.1 669.3 807.8 890.9 979.5 988.0 987.5 1,005.2 976.5 8 Notes and accounts payable 282.1 317.6 382.9 461.2 515.2 562.4 555.5 555.1 559.7 548.7 9 Other 213.0 239.6 286.4 346.6 375.7 417.1 432.5 432.4 445.5 427.8 10 Net working capital 332.4 355.5 374.4 410.5 442.6 447.3 436.6 435.1 441.7 454.4 11 MEMO: Current ratio1 1.671 1.638 1.559 1.508 1.497 1.457 1.442 1.441 1.439 1.465 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 Ql1 Q21 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 8?. 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 Ql 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 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 Y 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 Ql 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 FFFeeebbb... 222888,,, 111999888333''' Dec. Jan. Feb. Dec. Jan. Feb. Dec. Jan. Feb. 1 Total 81,580 -571 1,030 126 20,031 22,808 22,458 20,602 21,778 22,332 2 Retail automotive (commercial vehicles) 12,948 142 269 396 1,036 1,230 1,336 894 961 940 3 Wholesale automotive 12,568 -1,087 182 115 4,965 6,458 6,643 6,052 6,276 6,258 4 Retail paper on business, industrial, and farm equipment 27,771 222 -41 381 1,420 1,308 1,477 1,198 11,,334499 11,,009966 5 Loans on commercial accounts receivable and factored commercial accounts receivable 9,161 -350 501 -243 10,493 12,286 11,634 10,843 11,785 11,877 6 All other business credit 19,132 502 119 -523 2,117 1,526 1,368 1,615 1,407 1,891 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • May 1983 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1982 1983 IItteemm 11998800 11998811 11998822 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes 1 Purchase price (thousands of dollars) 83.4 90.4 94.6 95.0 99.1 97.9 91.8 88.9 88.4 80.1 2 Amount of loan (thousands of dollars) 59.2 65.3 69.8 71.6 74.4 75.6 67.6 65.4 66.6 60.5 3 Loan/price ratio (percent) 73.2 74.8 76.6 78.7 77.9 79.0 75.2 75.2 77.9 76.8 4 Maturity (years) 28.2 27.7 27.6 28.1 28.4 27.9 26.9 26.5 27.2 24.2 5 Fees and charges (percent of loan amount)2 2.09 2.67 2.95 3.04 2.74 2.76 2.98 2.46 2.78 2.21 6 Contract rate (percent per annum) 12.25 14.16 14.47 14.34 13.86 13.26 13.09 13.00 12.62 12.97 Yield (percent per annum) 1 FHLBB series5 12.65 14.74 15.12 14.98 14.41 13.81 13.69 13.49 13.16 13.41 8 HUD series4 13.95 16.52 15.79 15.05 13.95 13.80 13.62 13.44 13.18 13.17 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 13.44 16.31 15.31 14.03 12.99 12.82 12.80 12.87 12.65 12.68 10 GNMA securities6 12.55 15.29 14.68 13.57 12.83 12.66 12.60 12.06' 11.94 11.87 FNMA auctions7 14.11 16.70 1144..4433 1166..6644 1155..9955 1155..3366 1133..9922 1133..7755 1133..7722 nn..aa.. nn..aa.. Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 55,104 58,675 66,031 68,841 69,152 70,126 71,814 73,106 73,555 73,666 14 FHA/VA-insured 37,365 39,341 39,718 39,871 39,523 39,174 39,057 38,924 38,768 38,409 15 Conventional 17,725 19,334 26,312 28,970 29,629 30,952 32,757 34,182 34,788 35,257 Mortgage transactions (during period) 16 Purchases 8,099 6,112 15,116 1,670 1,449 1,681 2,495 2,045 11,,559944 1,433 17 Sales 0 2 2' 0 V lr 0 VV 777 Mortgage commitments8 18 Contracted (during period) 8,083 9,331 22,105 1,482 1,426 2,795 3,055 2,006 785 1,184 19 Outstanding (end of period) 3,278 3,717 7,606 6,587 6,268 7,286 7,606 7,487 6,475 6,187 Auction of 4-month commitments to buy Government-underwritten loans 20 Offered 8,605.4 2,487.2 307.4 16.4 2.5 27.0 4.6 2.0 n.a. n.a. 21 Accepted 4,002.0 1,478.0 104.3 0 0 0 0 0 n.a. n.a. Conventional loans 22 Offered 3,639.2 2,524.7 445.3 27.5 13.6 22.1 23.2 7.8 1.8 n.a. 23 Accepted 1,748.5 1,392.3 237.6 0 8.9 11.4 15.3 0 n.a. n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 4,362 5,245 5,153 5,207 4,957 4,676 4,733 4,560 4,450 4,795 25 FHA/VA 2,116 2,236 1,921 2,225 1,016 1,012 1,009 1,004 1,000 995 26 Conventional 2,246 3,010 3,224 2,982 3,891 3,618r 3,724 3,556 3,450 3,800 Mortgage transactions (during period) 27 Purchases 3,723 3,789 23,671 1,799 2,000 1,917 3,916 1,479 1,688 2,849 28 Sales 2,527 3,531 24,164 1,923 2,197 2,182 3,798 1,641 1,756 2,469 Mortgage commitments10 29 Contracted (during period) 3,859 6,974 28,187 2,892 2,506 1,714 1,068 2,059 868 1,438 30 Outstanding (end of period) 447 3,518 7,549 10,211 10,572 10,407 7,549 8,098 7,238 5,845 1. Weighted averages based on sample surveys of mortgages originated by prevailing ceiling rate. Monthly figures are unweighted averages of Monday major institutional lender groups. Compiled by the Federal Home Loan Bank quotations for the month. Board in cooperation with the Federal Deposit Insurance Corporation. 7. Average gross yields (before deduction of 38 basis points for mortgage 2. Includes all fees, commissions, discounts, and "points" paid (by the servicing) on accepted bids in Federal National Mortgage Association's auctions borrower or the seller) to obtain a loan. of 4-month commitments to purchase home mortgages, assuming prepayment in 3. Average effective interest rates on loans closed, assuming prepayment at the 12 years for 30-year mortgages. No adjustments are made for FNMA commitment end of 10 years. fees or stock related requirements. Monthly figures are unweighted averages for 4. Average contract rates on new commitments for conventional first mort- auctions conducted within the month. FNMA's commitment auctions were gages, rounded to the nearest 5 basis points; from Department of Housing and discontinued in March 1983. 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. FHLMC's 6. Average net yields to investors on Government National Mortgage Associa- mortgage commitments and mortgage transactions include activity under morttion guaranteed, mortgage-backed, fully modified pass-through securities, assum- gage/securities swap programs, while the corresponding data for FNMA exclude ing prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the swap activity. 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 1983 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998800 11998811'' 11998822'' Q4' QK Q2' Q3' Q4' Ql 1 All holders 1,471,786 1,583,264 1,647,637 1,583,264 1,602,855 1,624,279 1,632,161 1,647,637 1,672,408 2 1- to 4-family 986,979 1,065,294 1,106,863 1,065,294 1,076,930 1,089,522 1,097,507 1,106,863 1,127,786 3 Multifamily 137,134 136,354 136,515 136,354 137,712 138,332 136,508 136,515 137,435 4 Commercial 255,655 279,889 297,369 279,889 284,306 290,951 291,740 297,369 299,938 5 Farm 92,018 101,727 106,890 101,727 103,907 105,474 106,406 106,890 107,249 6 Major financial institutions 997,168 1,040,827 1,020,527 1,040,827 1,041,702 1,042,904 1,027,027 1,020,527 1,021,907 7 Commercial banks1 263,030 284,536 301,742 284,536 289,365 294,022 298,342 301,742 305,672 8 1- to 4-family 160,326 170,013 177,122 170,013 171,350 172,596 175,126 177,122 179,430 9 Multifamily 12,924 15,132 15,841 15,132 15,338 15,431 15,666 15,841 16,147 10 Commercial 81,081 91,026 100,269 91,026 94,256 97,522 99,050 100,269 101,575 11 Farm 8,699 8,365 8,510 8,365 8,421 8,473 8,500 8,510 8,520 12 Mutual savings banks 99,865 99,997 94,452 99,997 97,464 96,346 94,382 94,452 93,697 13 1- to 4-family 67,489 68,187 64,095 68,187 66,305 65,381 63,849 64,095 63,582 14 Multifamily 16,058 15,960 15,037 15,960 15,536 15,338 15,026 15,037 14,917 15 Commercial 16,278 15,810 15,292 15,810 15,594 15,598 15,479 15,292 15,170 16 Farm 40 40 28 40 29 29 28 28 28 17 Savings and loan associations 503,192 518,547 482,414 518,547 516,111 512,997 493,899 482,414 479,405 18 1- to 4-family 419,763 433,142 397,537 433,142 430,178 425,890 410,035 397,537 395,026 19 Multifamily 38,142 37,699 36,023 37,699 37,986 38,321 36,894 36,023 35,812 20 Commercial 45,287 47,706 48,854 47,706 47,947 48,786 46,970 48,854 48,567 21 Life insurance companies 131,081 137,747 141,919 137,747 138,762 139,539 140,404 141,919 143,133 22 1- to 4-family 17,943 17,201 16,743 17,201 17,086 16,451 16,865 16,743 16,836 23 Multifamily 19,514 19,283 18,847 19,283 19,199 18,982 18,967 18,847 19,054 24 Commercial 80,666 88,163 93,501 88,163 89,529 91,113 91,640 93,501 94,618 25 Farm 12,958 13,100 12,828 13,100 12,948 12,993 12,932 12,828 12,625 26 Federal and related agencies 114,300 126,094 138,185 126,094 128,698 131,456 134,449 138,185 139,796 27 Government National Mortgage Association... 4,642 4,765 4,227 4,765 4,438 4,669 4,110 4,227 3,785 28 1- to 4-family 704 693 676 693 689 688 682 676 665 29 Multifamily 3,938 4,072 3,551 4,072 3,749 3,981 3,428 3,551 3,120 30 Farmers Home Administration 3,492 2,235 1,786 2,235 2,469 1,335 947 1,786 1,850 31 1- to 4-family 916 914 783 914 715 491 302 783 800 32 Multifamily 610 473 218 473 615 179 46 218 250 33 Commercial 411 506 377 506 499 256 164 377 400 34 Farm 1,555 342 408 342 640 409 435 408 400 35 Federal Housing and Veterans Administration 5,640 5,999 5,228 5,999 6,003 5,908 5,362 5,228 5,156 36 1- to 4-family 2,051 2,289 1,980 2,289 2,266 2,218 2,130 1,980 1,883 37 Multifamily 3,589 3,710 3,248 3,710 3,737 3,690 3,232 3,248 3,273 38 Federal National Mortgage Association 57,327 61,412 71,814 61,412 62,544 65,008 68,841 71,814 73,666 39 1- to 4-family 51,775 55,986 66,500 55,986 57,142 59,631 63,495 66,500 68,370 40 Multifamily 5,552 5,426 5,314 5,426 5,402 5,377 5,346 5,314 5,296 41 Federal Land Banks 38,131 46,446 50,350 46,446 47,947 49,270 49,983 50,350 50,544 42 1- to 4-family 2,099 2,788 3,068 2,788 2,874 2,954 3,029 3,068 3,059 43 Farm 36,032 43,658 47,282 43,658 45,073 46,316 46,954 47,282 47,485 44 Federal Home Loan Mortgage Corporation.... 5,068 5,237 4,780 5,237 5,297 5,266 5,166 4,780 4,795 45 1- to 4-family 3,873 5,181 4,733 5,181 5,240 5,209 5,116 4,733 4,740 46 Multifamily 1,195 56 47 56 57 57 50 47 55 47 Mortgage pools or trusts2 142,258 163,000 216,116 163,000 172,303 183,657 198,376 216,116 235,946 48 Government National Mortgage Association... 93,874 105,790 118,402 105,790 108,592 111,459 114,776 118,402 128,881 49 1- to 4-family 91,602 103,007 115,293 103,007 105,701 108,487 111,728 115,293 125,424 50 Multifamily 2,272 2,783 3,109 2,783 2,891 2,972 3,048 3,109 3,457 51 Federal Home Loan Mortgage Corporation.... 16,854 19,853 42,964 19,853 23,970 28,703 35,132 42,964 48,008 52 1- to 4-family 13,471 19,501 42,560 19,501 23,610 28,329 34,739 42,560 47,575 53 Multifamily 3,383 352 404 352 360 374 393 404 433 54 Federal National Mortgage Association3 n.a. 717 14,450 717 2,786 4,556 8,133 14,450 18,157 55 1- to 4-family n.a. 717 14,450 717 2,786 4,556 8,133 14,450 18,157 56 Farmers Home Administration 31,530 36,640 40,300 36,640 36,955 38,939 40,335 40,300 40,900 57 1- to 4-family 16,683 18,378 20,005 18,378 18,740 19,357 20,079 20,005 20,105 58 Multifamily 2,612 3,426 4,344 3,426 3,447 4,044 4,344 4,344 4,444 59 Commercial 5,271 6,161 7,011 6,161 6,351 6,762 7,056 7,011 7,111 60 Farm 6,964 8,675 8,940 8,675 8,417 8,776 8,856 8,940 9,240 61 Individual and others4 218,060 253,343 272,809 253,343 260,152 266,262 272,349 272,809 274,759 62 1- to 4-family5 138,284 167,297 181,318 167,297 172,248 177,284 182,199 181,318 182,134 63 Multifamily 27,345 27,982 30,532 27,982 29,395 29,586 30,068 30,532 31,177 64 Commercial 26,661 30,517 32,065 30,517 30,130 30,914 31,381 32,065 32,497 65 Farm 25,770 27,547 28,894 27,547 28,379 28,478 28,701 28,894 28,951 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 individ- Digitized foura Fls.R ASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • May 1983 1.55 CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net ChangeA Millions of dollars 1982 1983 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Amounts outstanding (end of period) 1 Total 313,472 331,697 344,798 334,971 337,469 336,473 338,372 344,798 343,151 340,343 342,568 By major holder 2 Commercial banks 147,013 147,622 152,069 148,438 149,801 149,528 149,651 152,069 150,906 150,257 151,319 3 Finance companies 76,756 89,818 94,322 93,207 93,357 92,541 93,462 94,322 95,080 93,859 94,817 4 Credit unions 44,041 45,954 47,253 46,154 46,846 46,645 46,832 47,253 46,946 46,757 47,081 5 Retailers2 28,448 29,551 30,202 26,751 26,829 27,046 27,639 30,202 28,859 27,734 27,472 6 Savings and loans 9,911 11,598 13,891 12,833 13,051 13.457 13,672 13,891 14,209 14,860 15,083 / Gasoline companies 4,468 4,403 4,063 4,714 4,669 4,322 4,141 4,063 4,102 3,780 3,669 8 Mutual savings banks 2,835 2,751 2,998 2,874 2,916 2,934 2,975 2,998 3,049 3,096 3,127 By major type of credit 9 Automobile 116,838 125,331 130,227 128,051 128,856 128,375 129,299 130,227 129,482 129,055 130,959 10 Commercial banks 61,536 58,081 58,851 57,992 58,542 58.552 58,701 58,851 57,740 57,971 58,567 11 Indirect paper 35,233 34,375 35,178 34,345 34,728 34,744 34,884 35,178 (3) (3) (3) 12 Direct loans 26,303 23,706 23,673 23,647 23,814 23,808 23,817 23,673 (3) (3) (3) 13 Credit unions 21,060 21,975 22,596 22,071 22,402 22,306 22,395 22,596 22,458 22,360 22,518 14 Finance companies 34,242 45,275 48,780 47,988 47,921 47.518 48,203 48,780 49,284 48,724 49,874 15 Revolving 58,352 62,819 67,184 61,293 61,845 61.836 62,362 67,184 65,562 63,372 63,091 16 Commercial banks 29,765 32,880 36,688 33,509 34,017 34.110 34,233 36,688 36,282 35,481 35,533 1/ Retailers 24,119 25,536 26,433 23,070 23.159 23,404 23,988 26,433 25,178 24,111 23,889 18 Gasoline companies 4,468 4,403 4,063 4,714 4,669 4,322 4,141 4,063 4,102 3,780 3,669 19 Mobile home 17,322 18,373 18,988 18,918 19,011 19,043 19,049 18,988 19,291 19,374 19,379 20 Commercial banks 10,371 10,187 9,684 9,967 9,956 9,860 9,806 9,684 9,828 9,806 9,739 21 Finance companies 3,745 4,494 4,965 4,916 4,953 4,971 4,970 4,965 4,981 4,960 4,967 22 Savings and loans 2,737 3,203 3,836 3,544 3,604 3,716 3,775 3,836 3,984 4,112 4,174 23 Credit unions 469 489 503 491 498 496 498 503 498 496 499 74 Other 120,960 125,174 128,399 126,709 127,748 127,219 127,662 128.399 128,816 128,542 129,139 Commercial banks 45,341 46,474 46,846 46,970 47,286 47,006 46,911 46,846 47,056 46,999 47,480 2b Finance companies 38,769 40,049 40,577 40,303 40,483 40,052 40,289 40,577 40,815 40,175 39,976 ( redit unions 22,512 23,490 24,154 23,592 23,946 23,844 23,939 24,154 23,990 23,901 24,064 .dtailers 4,329 4,015 3,769 3,681 3,670 3,642 3,651 3,769 3,681 3,623 3,583 ings and loans 7,174 8,395 10,055 9,289 9,447 9,741 9,897 10,055 10,225 10,748 10,909 !tual savings banks 2,835 2,751 2,998 2,874 2,916 2,934 2,975 2,998 3,049 3,096 3,127 Net change (during period)4 31 i-^i 1,448 18,217 13,096 256 1,256 -131 2,015 2,418 2,725 735 2,582 B\ n.-.tjor holder 32 Coi nercial banks -7,163 607 4,442 -21 688 73 457 1,111 410 788 1,354 33 Firumce companies 8,438 13,062 4,504 -192 106 -372 1,051 1,024 1,881 -658 487 34 Creuit unions -2,475 1,913 1,298 157 255 38 412 197 20 43 143 35 Retailers2 329 1,103 651 -43 69 -67 -51 -91 -14 36 422 36 Savings and loans 1,485 1,682 2,290 263 200 274 181 201 412 677 187 37 Gasoline companies 739 -65 -340 45 -88 -108 -35 -51 -78 -200 -35 38 Mutual savings banks 95 -85 251 47 26 31 0 27 94 49 24 flv major type of credit Automobile 477 8,495 4,898 -380 349 -70 1,534 1,491 625 -233 1,221 ill Commercial banks -5,830 -3,455 770 -91 360 137 336 527 -581 321 240 4! Indirect paper -3,104 -858 803 -143 238 117 134 429 (3) (3) (3) 42 Direct loans -2,726 -2,597 -33 52 122 20 202 98 (3) (3) ((33)) 4.i Credit unions -1,184 914 622 60 110 16 211 89 20 15 6688 Finance companies 7,491 11,033 3,505 -349 -121 -223 987 875 1,186 -569 913 45 K., jiving 1,415 4,467 4,365 199 311 81 39 501 68 -135 1,177 4i, L mmercial banks -97 3,115 3,808 166 311 223 74 650 130 61 786 4: 'etailers 773 1,417 897 -12 88 -34 0 -98 16 4 426 48 . ..tsoline companies 739 -65 -340 45 -88 -108 -35 -51 -78 -200 -35 49 fvk.bile home 483 1,049 609 177 75 -35 23 -37 420 204 -61 50 v ommercial banks -276 -186 -508 -22 -6 -105 -47 -74 193 26 -95 51 Finance companies 355 749 471 108 18 -9 5 -15 53 59 -23 Savings and loans 430 466 633 89 60 78 61 49 175 120 54 53 Credit unions -25 20 14 2 3 1 4 3 -1 -1 3 54 Other -927 4,206 3,224 260 521 -107 419 463 1,612 899 245 55 Commercial banks -960 1,133 372 -74 23 -182 94 8 668 380 423 56 Finance companies 592 1,280 528 49 209 -140 59 164 642 -148 -403 5/ ( edit unions -1,266 975 662 95 142 21 197 105 1 29 72 sx kiiailers -444 -314 -246 -31 -19 -33 -51 7 -30 32 -4 59 Savings and loans 1,056 1,217 1,657 174 140 196 120 152 237 557 133 60 Mutual savings banks 95 -85 251 47 26 31 0 27 94 49 24 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 February 1983. 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 Sept. Oct. Nov. Dec. Jan. Feb. Mar. INTEREST RATES Commercial banks1 1 14.30 16.54 16.83 15.97 14.81 T 15.47 18.09 18.65 17.99 17.47' 14.99 17.45 18.05 17.55 16.73 4 1177..3311 1177..7788 1188..5511 1188..7755 1188..8822'' Auto finance companies 5 New car 14.82 16.17 16.15 17.35 16.66 12.82 12.57 12.25 12.05 12.07 6 Used car 19.10 20.00 20.75 20.89 20.76 20.68 20.63 20.20 19.91 19.38 OTHER TERMS3 Maturity (months) 7 New car 45.0 45.4 46.0 46.1 45.9 46.4 46.4 46.0 45.9 45.9 8 Used car 34.8 35.8 34.0 37.1 37.1 36.9 36.9 38.2 37.7 37.7 Loan-to-value ratio 9 New car 87.6 86.1 85.3 85.0 85.0 87.0 87.0 86.0 86.0 84.0 10 Used car 94.2 91.8 90.3 91.0 91.0 91.0 90.0 90.0 90.0 91.0 Amount financed (dollars) 11 New car 6,322 7,339 8.178 7,968 8,184 8,339 8,468 8,683 8,755 8,829 12 Used car 3,810 4,343 4,746 4,790 4,821 4,822 4,846 4,742 4,731 4,802 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

A44 Domestic Nonfinancial Statistics • May 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 Transaction category, sector 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 11 Commercial 18.4 21.7 23.9 20.2 25.3 16.3 20.3 20.1 21A 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 11.2 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 37.9 56.8 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 3.8 48 REITs -2.5 -1.4 -1.3 -2.2 .2 .1 -2.0 -2.5 .2 .2 .1 .1 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.S 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.c 2.3 -23.5 1.8 12.6 Digitized for FR6 6 1 2 A SER F N i o n n a f n i c n i a a n l c c ia o l r p c o o r r a p t o io ra n t s i ons 2 2 . . 7 5 - 2 .1 .5 -7 3 . . 8 2 1 2 2 . . 1 9 -11. . 5 9 2 3. . 7 2 6 1 . . 9 9 1 2 8 . . : f . A 9 -23 l . . f ( - 2 .1 .2 7 2 . . 5 2 http://fraser.stl6o3u isfeFdo.roeriggn/ shares purchased in U.S. .4 -.5 .8 2.1 * 1.3 1.9 2.2 .7 -.7 -.2 2.9 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 7 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 113399..33 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 41 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 fine 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, Digitized fo3r1 .F ERxAcluSdEesR n et investment of these reserves in corporate equities. D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • May 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. • 1 Industrial production1 147.0 151.0 138.6 138.4 137.3 135.7 134.9 135.2 137.4 138.0 139.7 142.6 Market groupings 2 Products, total 146.7 150.6 141.8 142.0 140.8 139.3 139.0 139.9 140.9 140.5 141.9 144.5 3 Final, total 145.3 149.5 141.5 141.2 140.0 138.7 138.3 139.5 140.1 139.2 140.3 142.9 4 Consumer goods 145.4 147.9 142.6 144.1 143.4 142.2 141.3 142.0 143.6 143.9 144.7 147.7 5 Equipment 145.2 151.5 139.8 137.3 135.2 134.0 134.2 136.1 135.3 132.8 134.3 136.4 6 Intermediate 151.9 154.4 143.3 144.7 143.7 141.6 141.8 141.5 143.7 145.1 147.4 150.5 7 Materials 147.6 151.6 133.7 132.8 132.0 130.0 128.4 127.8 132.0 134.3 136.5 139.5 Industry groupings 8 Manufacturing 146.7 150.4 137.6 138.0 137.1 135.0 134.0 134.5 136.7 138.0 139.9 142.9 Capacity utilization (percent)1'2 9 Manufacturing 79.1 78.5 69.8 69.8 69.2 68.0 67.4 67.5 68.5 68.9 69.8 71.1 10 Industrial materials industries 80.0 79.9 68.9 68.2 67.7 66.6 65.7 65.2 67.3 68.3 69.3 70.7 11 Construction contracts (1977 = 100)3 107.0 111.0 111.0 112.0 117.0 105.0 122.0 131.0 127.0 119.0 131.0 n.a. 12 Nonagricultural employment, total4 137.4 138.5 136.2 135.7 135.7 135.1 134.9 134.6 135.1 134.9' 135.2' 135.6 13 Goods-producing, total 110.1 109.3 102.5 101.5 101.0 99.7 99.0 98.2 99.4 98.8 98.9' 99.5 14 Manufacturing, total 104.3 103.7 96.9 96.0 95.5 94.2 93.5 93.2 93.6 93.7 94.(K 94.5 15 Manufacturing, production-worker ... 99.3 98.0 89.3 88.4 87.8 86.2 85.3 85.1 85.6 85.7 86.1 86.9 16 Service-producing 152.4 154.4 154.7 154.5 154.7 154.4 154.5 154.3 154.7 154.7' 155,1' 155,4 17 Personal income, total 342.9 383.5 407.9 411.4 412.3 414.2 417.1 418.3 419.3 419.7' 422.0' n.a. 18 Wages and salary disbursements 317.6 349.9 365.5 367.8 367.7 368.0 368.2 370.0 373.8 373.3 375.4' n.a. 19 Manufacturing 264.3 288.1 285.3 286.4 284.5 281.3 280.0 279.3 283.9 285.5' 287.5' n.a. 20 Disposable personal income5 332.9 370.3 396.7 400.9 402.0 403.7 406.8 407.4 409.5 409.2 411.6 n.a. 21 Retail sales" 303.8 330.6 326.0 340.3 343.5 347.4 353.4 353.3 352.7 348.3 354.4 360.0 Prices7 22 Consumer 246.8 272.4 289.1 292.8 293.3 294.1 293.6 292.4 292.6 293.2 293.4' n.a. 23 Producer finished goods 247.0 269.8 280.6 282.3 281.2 284.1 284.9 285.1 283.6 283.7 283.4' 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' Q1 Q2 Q3 Q4 QL Q2 Q3 Q4' QL Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 138.1 137.7 134.5 138.2 196.4 197.7 198.9 200.1 70.3 69.7 67.6 69.1 2 Primary processing 132.3 132.4 129.3 135.6 199.5 200.4 201.3 202.3 66.3 66.1 64.2 67.0 3 Advanced processing 141.2 140.5 137.3 139.7 194.9 196.2 197.6 199.0 72.5 71.6 69.5 70.2 4 Materials 134.7 132.6 128.7 134.3 193.7 194.6 195.5 196.6 69.6 68.1 65.8 68.3 5 Durable goods 127.1 124.7 117.1 124.8 197.3 198.3 199.2 200.2 64.4 62.9 58.8 62.3 6 Metal materials 77.0 73.0 66.5 78.2 142.4 142.3 142.4 142.6 54.1 51.3 46.7 54.8 7 Nondurable goods 156.8 155.1 157.0 162.3 216.1 217.4 218.9 220.2 72.6 71.3 71.8 73.7 8 Textile, paper, and chemical 160.5 158.4 160.8 167.3 227.3 228.8 230.5 231.9 70.6 69.2 69.8 72.2 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 142.0 145.9 147.6 149.7 164.6 165.4 166.3 167.0 86.3 88.2 88.7 89.6 11 Chemical 194.0 188.5 191.9 201.3 289.6 291.9 294.3 296.7 67.0 64.6 65.2 67.8 12 Energy materials 125.5 123.8 121.5 122.3 157.0 157.6 158.2 158.8 79.9 78.5 76.8 77.0 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 Apr. Aug. Sept. Oct. Nov. Dec. Jan/ Feb/ Mar/ Apr. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 70.8 69.8 69.2 68.0 67.4 67.5 68.5 68.9 69.8 71.7 14 Primary processing 93.8 68.2 90.1 71.0 67.2 66.1 66.4 65.0 63.9 63.7 66.0 67.4 67.8 69.5 15 Advanced processing .... 85.5 69.4 86.2 77.2 72.6 71.7 70.7 69.6 69.2 69.5 70.0 70.0 70.6 71.9 16 Materials 92.6 69.4 88.8 73.8 70.5 68.2 67.7 66.6 65.7 65.2 67.3 68.3 69.3 70.7 17 Durable goods 91.5 63.6 88.4 68.2 65.0 63.1 61.9 59.6 58.4 58.4 60.8 62.3 63.9 65.7 18 Metal materials 98.3 68.6 96.0 59.6 56.2 51.2 51.9 48.6 45.5 46.0 52.4 54.1 57.9 59.8 19 Nondurable goods 94.5 67.2 91.6 77.5 74.4 71.0 72.8 72.5 71.9 71.0 72.7 73.9 74.6 75.8 20 Textile, paper, and chemical 95.1 65.3 92.2 75.3 72.5 68.9 70.7 70.3 69.9 69.3 70.8 72.6 73.2 74.2 21 Textile 92.6 57.9 90.6 80.9 73.4 72.3 72.3 73.0 71.6 71.3 73.0 74.1 76.3 n.a. 22 Paper 99.4 72.4 97.7 89.3 87.4 88.6 89.8 89.7 90.0 86.5 89.9 89.9 89.0 n.a. 23 Chemical 95.5 64.2 91.3 70.7 69.0 63.9' 66.2 65.4 65.1 65.1 66.0 68.4 69.0 n.a. 24 Energy materials 94.6 84.8 88.3 82.7 80.2 79.0 76.6 77.6 76.8 76.0 77.5 76.9 76.6 77.3 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July 1980 through October 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1982 1983 CCaatteeggoorryy 11998800 11998811 11998822 Oct. Nov. Dec. Jan. Feb. Mar. Apr. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 169,847 172,272 174,451 175,069 175,238 175,381 175,543 175,693 175,850 175,465 2 Labor force (including Armed Forces)1 109,042 110,812 112,384 112,940 113,222 113,311 112,737 112,741 112,678 112,988 3 Civilian labor force 106,940 108,670 110,204 110,752 111,042 111,129 110,548 110,553 110,484 110,786 Employment 4 Nonagricultural industries2 95,938 97,030 96,125 95,763 95,670 95,682 95,691 95,670 95,729 97 5 Agriculture 3,364 3,368 3,401 3,413 3,466 3,411 3,412 3,393 3,375 3,371 Unemployment 6 Number 7,637 8,273 10,678 11,576 11,906 12,036 11,446 11,490 11,381 11,328 7 Rate (percent of civilian labor force)... 7.1 7.6 9.7 10.5 10.7 10.8 10.4 10.4 10.3 10.2 8 Not in labor force 60,805 61,460 62,067 62,129 62,016 62,070 62,806 62,952 63,172 63,008 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 90,406 91,105 89,619 88,877 88,750 88,565 88,920 88,759 88,955 89,213 10 Manufacturing 20,285 20,173 18,849 18,325 18,181 18,131 18,208 18,226 18,276 18,385 11 Mining 1,020 1,132 1,122 1,058 1,046 1,037 1,027 1,005 997 990 12 Contract construction 4,399 4,176 3,912 3,856 3,854 3,818 3,927 3,787 3,777 3,808 13 Transportation and public utilities 5,143 5,157 5,057 5,007 4,992 4,983 4,949 4,938 4,934 4,955 14 Trade 20,386 20,551 20,547 20,441 20,425 20,316 20,487 20,448 20,521 20,512 15 Finance 5,168 5,301 5,350 5,357 5,363 5,377 5,384 5,396 5,406 5,424 16 Service 17,901 18,592 19,000 19,074 19,135 19,148 19,200 19,203 19,314 19,418 17 Government 16,249 16,024 15,784 15,742 15,754 15,755 15,738 15,756 15,730 15,721 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

A48 Domestic Nonfinancial Statistics • May 1983 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1982 1983 pro- 11998822 GGrroouuppiinngg por- avg. tion Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan/ Feb. Mar.P Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 138.6 140.2 139.2 138.7 138.8 138.4 137.3 135.7 134.9 135.2 137.4 138.0 139.7 2 Products 60.71 141.8 142.9 142.3 142.1 142.6 142.0 140.8 139.3 139.0 139.9 140.9 140.5 141.9 3 Final products 47.82 141.5 142.6 142.2 142.1 142.5 141.2 140.0 138.7 138.3 139.5 140.1 139.2 140.3 4 Consumer goods 27.68 142.6 142.1 143.6 144.8 145.8 144.1 143.4 142.2 141.3 142.0 143.6 143.9 144.7 5 Equipment 20.14 139.8 143.4 140.4 138.4 138.0 137.3 135.2 134.0 134.2 136.1 135.3 132.8 134.3 6 Intermediate products 12.89 143.3 143.7 142.6 141.9 142.8 144.7 143.7 141.6 141.8 141.5 143.7 145.1 147.4 7 Materials 39.29 133.7 136.2 134.3 133.5 133.0 132.8 132.0 130.0 128.4 127.8 132.0 134.3 136.5 Consumer goods 8 Durable consumer goods 7.89 129.2 130.7 132.6 134.6 137.3 132.9 131.3 126.5 124.6 125.9 131.6 134.4 135.0 9 Automotive products 2.83 129.5 129.9 138.9 143.0 149.7 135.5 135.5 123.6 120.7 128.7 136.2 144.3 142.0 10 Autos and utility vehicles 2.03 99.0 100.5 111.8 117.1 127.7 107.1 105.8 89.6 86.9 99.0 107.0 120.8 116.4 11 Autos 1.90 86.6 87.2 96.1 101.9 114.6 93.3 94.3 79.5 77.7 87.9 97.1 107.3 99.9 12 Auto parts and allied goods .80 206.9 204.6 207.6 208.6 205.4 207.6 210.7 210.0 206.6 204.0 210.2 204.0 207.1 13 Home goods 5.06 129.1 131.1 129.1 129.9 130.4 131.4 128.9 128.1 126.8 124.3 129.1 128.9 131.0 14 Appliances, A/C, and TV 1.40 102.6 102.7 100.5 106.4 102.7 104.5 99.4 106.1 104.8 94.2 109.5 105.6 104.6 15 Appliances and TV 1.33 104.6 103.1 101.5 108.8 106.1 108.6 104.1 110.5 108.4 98.3 112.9 108.5 108.1 16 Carpeting and furniture 1.07 149.7 151.8 145.9 149.0 151.4 152.5 153.3 151.9 151.4 150.8 149.0 155.8 161.2 17 Miscellaneous home goods 2.59 135.0 138.0 137.7 134.9 136.7 137.2 134.9 130.1 128.6 129.8 131.4 130.4 132.9 18 Nondurable consumer goods 19.79 148.0 146.6 147.9 148.8 149.1 148.6 148.2 148.5 147.9 148.4 148.3 147.6 148.6 19 4.29 20 Consumer staples 15.50 159.0 158.3 159.0 159.9 159.7 159.4 158.8 159.1 158.1 158.8 158.6 158.1 159.4 71 8.33 149.7 148.1 149.9 150.9 149.9 149.6 148.6 150.2 149.0 149.5 150.9 150.7 22 Nonfood staples 7.17 169.7 170.0 169.5 170.4 171.2 170.8 170.7 169.5 168.7 169.6 167.6 166.8 169.0 23 Consumer chemical products .... 2.63 219.9 218.3 216.6 219.8 222.3 222.4 221.7 220.0 218.9 220.9 222.6 221.6 224.2 24 Consumer paper products 1.92 127.7 128.7 126.7 126.7 128.1 129.4 128.2 125.3 125.1 128.3 127.1 127.9 127.6 25 Consumer energy products 2.62 150.2 151.9 153.6 152.8 151.4 149.3 150.6 151.1 150.2 148.4 142.2 140.2 143.9 2266 11..4455 117700..88 117744..55 117733..77 117711..11 116677..77 116699..77 116699..55 116699..11 117711..55 116699..33 116644..11 116622..99 Equipment 27 Business 12.63 157.9 164.9 159.9 156.7 154.9 153.9 150.5 147.1 146.4 148.1 146.6 142.8 144.1 28 Industrial 6.77 134.9 145.9 138.9 134.0 131.3 128.4 123.8 118.3 117.2 117.9 118.4 114.3 113.4 29 Building and mining 1.44 214.2 242.2 224.4 209.0 200.4 190.8 182.1 169.3 165.7 171.9 173.8 152.1 144.5 30 Manufacturing 3.85 107.2 114.0 109.7 107.5 106.0 104.4 101.6 98.0 97.5 97.0 97.6 98.7 100.1 31 Power 1.47 129.9 134.8 131.5 129.9 129.6 130.1 124.7 121.0 121.0 119.7 118.3 118.2 117.8 32 Commercial transit, farm 5.86 184.4 186.9 184.1 183.0 182.2 183.3 181.4 180.5 180.2 183.0 179.2 175.8 179.6 33 Commercial 3.26 253.5 253.1 247.7 247.5 248.8 253.5 254.0 253.5 254.8 258.6 254.9 250.5 255.4 34 Transit 1.93 103.9 110.9 110.9 108.3 106.3 102.0 95.5 93.2 92.3 96.2 90.8 88.2 91.0 35 Farm .67 80.5 83.5 85.8 84.1 76.9 75.8 76.1 76.8 70.7 65.1 66.0 64.2 66.3 36 Defense and space 7.51 109.4 107.2 107.7 107.6 109.5 109.5 109.5 111.9 113.6 115.9 116.4 116.0 117.8 Intermediate products 37 Construction supplies 6.42 124.3 123.6 122.2 123.1 124.1 127.1 125.5 122.5 123.4 123.0 127.0 129.6 132.1 38 Business supplies 6.47 162.1 163.7 162.8 160.6 161.4 162.1 161.8 160.5 160.1 159.8 160.3 160.5 162.7 39 Commercial energy products 1.14 181.1 183.5 180.3 178.3 179.8 178.1 179.2 180.4 182.4 182.4 180.6 178.4 180.6 Materials 40 Durable goods materials 20.35 125.0 128.1 126.6 126.6 126.0 125.1 123.0 118.5 116.4 116.5 121.5 124.7 128.1 41 Durable consumer parts 4.58 95.3 94.7 98.9 103.1 103.8 101.0 97.1 91.4 90.0 91.1 96.2 101.5 102.5 42 Equipment parts 5.44 166.8 173.9 170.0 168.3 166.1 164.1 158.3 155.4 155.1 155.3 157.5 158.6 162.4 43 Durable materials n.e.c 10.34 116.2 118.8 116.1 115.1 114.8 115.4 115.8 111.1 107.7 107.4 113.8 117.2 121.4 44 Basic metal materials 5.57 79.9 82.3 79.4 77.4 75.7 76.1 77.7 73.0 69.1 68.7 78.1 80.7 86.0 45 Nondurable goods materials 10.47 157.5 160.3 156.6 153.5 152.3 154.5 158.5 158.2 157.3 155.6 159.7 162.6 164.7 46 Textile, paper, and chemical materials 7.62 161.1 164.4 160.4 156.7 155.3 157.7 162.2 161.5 161.0 160.0 163.7 168.2 170.1 47 Textile materials 1.85 102.2 104.5 101.8 99.1 99.6 103.2 103.3 104.4 102.5 102.1 104.7 106.4 109.6 48 Paper materials 1.62 145.6 143.5 141.8 140.7 142.1 146.6 148.9 148.9 149.7 144.1 150.1 150.1 148.8 49 Chemical materials 4.15 193.5 199.3 193.9 188.7 185.4 186.5 193.7 192.0 191.6 192.0 195.4 203.0 205.4 50 Containers, nondurable 1.70 161.4 159.8 157.2 158.5 158.1 162.8 167.3 164.9 160.8 155.2 162.1 159.5 163.9 51 Nondurable materials n.e.c 1.14 127.9 134.2 130.6 124.8 123.4 120.1 121.1 125.5 127.4 127.2 129.6 129.8 129.6 52 Energy materials 8.48 125.1 125.8 125.4 125.4 126.0 124.5 121.0 122.6 121.4 120.4 123.0 122.2 121.8 53 Primary energy 4.65 116.0 117.3 116.9 116.6 117.2 113.8 111.1 114.4 113.7 113.5 116.5 115.9 114.6 54 Converted fuel materials 3.82 136.3 136.1 135.7 136.0 136.7 137.4 133.0 132.6 130.8 128.9 130.8 129.8 130.6 Supplementary groups 55 Home goods and clothing 9.35 119.6 118.9 119.5 120.2 121.4 121.3 120.1 119.9 119.6 118.2 120.8 120.1 121.3 56 Energy, total 12.23 135.7 136.7 136.5 136.2 136.4 134.8 132.7 134.1 133.3 132.2 132.4 131.3 132.0 57 Products 3.76 159.6 161.5 161.7 160.5 160.0 158.0 159.3 160.0 160.0 158.7 153.8 151.8 155.0 58 Materials 8.48 125.1 125.8 125.4 125.4 126.0 124.5 121.0 122.6 121.4 120.4 123.0 122.2 121.8 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 Apr. May June July Aug. Sept. Oct. Nov. Dec Jan/ Feb. Mar.? Apr Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 146.3 151.6 148.8 145.2 142.6 141.3 139.7 140.4 140.4 140.1 141.3 137.4 137.8 138.9 2 Mining 6.36 126.1 134.1 128.9 123.5 120.1 116.9 114.7 115.9 116.8 118.4 121.9 115.5 113.7 113.4 3 Utilities 5.69 168.7 171.0 170.9 169.4 167.7 168.5 167.5 167.8 166.7 164.2 163.1 161.8 164.8 167.3 4 Electric 3.88 190.5 193.1 193.4 191.6 189.2 189.9 188.2 188.4 188.3 185.6 184.4 182.8 186.7 189.9 5 Manufacturing 87.95 137.6 138.7 137.9 137.7 138.1 138.0 137.1 135.0 134.0 134.5 136.7 138.0 139.9 142.9 6 Nondurable 35.97 156.2 156.1 155.0 155.3 155.7 156.9 156.7 156.2 155.3 155.6 157.4 158.6 160.1 163.1 7 Durable 51.98 124.7 126.7 126.1 125.5 125.9 124.9 123.5 120.3 119.3 119.9 122.5 123.7 125.9 129.0 Mining 8 Metal 10 .51 82.4 108.8 90.0 71.8 58.1 53.4 55.4 63.1 70.4 74.9 81.7 74.9 79.8 9 Coal 11.12 .69 142.7 146.2 149.2 144.4 140.3 135.8 127.9 143.2 134.1 129.7 144.8 136.5 127.3 127.4 10 Oil and gas extraction 13 4.40 131.1 137.7 132.7 129.1 127.0 123.3 121.0 119.1 120.3 122.9 124.6 117.0 115.1 113.8 11 Stone and earth minerals 14 .75 112.1 119.6 114.6 106.6 103.8 105.7 106.3 108.5 111.9 111.7 112.8 115.4 116.5 Nondurable manufactures 12 Foods 20 8.75 151.1 149.7 150.5 151.0 151.0 150.7 149.0 151.5 152.0 152.8 154.4 153.8 13 Tobacco products 21 .67 118.0 116.1 118.6 123.6 121.4 120.6 113.3 110.6 113.0 109.9 104.7 108.5 14 Textile mill products 22 2.68 124.5 126.3 123.5 123.7 124.3 125.9 126.1 125.9 123.1 122.2 125.8 130.7 132.0 15 Apparel products 23 3.31 16 Paper and products 26 3.21 150.8 149.8 146.5 146.8 147.0 152.5 154.3 155.0 154.5 151.1 158.8 155.6 155.7 157.4 17 Printing and publishing 27 4.72 144.1 144.2 143.8 142.6 143.9 145.3 144.3 142.0 141.7 142.8 141.3 144.0 145.4 147.7 18 Chemicals and products 28 7.74 196.1 198.6 193.6 193.2 194.1 195.6 196.4 194.1 192.8 195.9 197.6 200.0 201.6 19 Petroleum products 29 1.79 121.8 120.8 122.2 124.3 124.7 121.4 122.6 123.8 120.0 118.7 113.5 111.8 116.1 121.6 20 Rubber and plastic products 30 2.24 254.7 255.1 257.0 258.9 256.8 261.1 262.0 256.3 250.2 249.7 256.2 262.1 269.0 21 Leather and products 31 .86 60.9 60.6 61.1 62.3 62.9 60.8 60.9 59.5 57.7 56.0 59.5 61.7 62.0 Durable manufactures 22 Ordnance, private and government 19.91 3.64 86.9 85.2 86.3 86.5 87.1 86.5 86.9 89.5 91.9 92.5 93.5 93.3 93.5 94.7 23 Lumber and products 24 1.64 112.6 106.2 110.6 112.2 116.9 120.3 119.9 117.2 119.1 121.4 130.0 130.2 132.1 24 Furniture and fixtures 25 1.37 151.9 151.8 151.1 152.5 154.5 156.7 155.7 154.3 152.4 153.7 150.0 151.7 155.4 25 Clay, glass, stone products 32 2.74 128.2 127.0 125.0 126.1 126.9 128.8 130.4 128.1 127.3 125.4 128.0 131.8 132.7 26 Primary metals 33 6.57 75.3 76.4 75.2 72.8 72.9 72.9 73.2 69.6 63.6 63.5 73.1 77.0 80.7 83.9 27 Iron and steel 331.2 4.21 61.7 65.1 62.4 58.0 58.1 57.4 56.4 54.1 47.5 46.6 59.0 64.7 68.7 28 Fabricated metal products 34 5.93 114.8 119.1 115.8 115.0 115.5 114.3 112.3 107.6 107.0 107.3 107.6 110.2 112.2 115.3 29 Nonelectrical machinery 35 9.15 149.0 153.7 150.0 147.4 147.1 147.2 144.9 140.4 139.6 139.2 138.0 135.7 138.7 142.2 30 Electrical machinery 36 8.05 169.3 172.2 170.9 170.8 170.3 169.7 167.0 165.4 165.5 165.5 169.5 169.3 173.1 178.5 31 Transportation equipment 37 9.27 104.9 105.9 110.0 111.6 112.7 107.0 105.3 100.8 100.2 103.7 106.3 109.8 110.3 111.9 32 Motor vehicles and parts 371 4.50 109.8 110.7 119.8 124.0 127.2 116.7 113.5 103.0 101.7 108.8 113.9 123.0 123.3 125.5 33 Aerospace and miscellaneous transportation equipment... 372-9 4.77 100.4 101.3 100.8 99.9 99.0 97.8 97.6 98.6 98.7 98.9 99.1 97.3 97.9 99.2 34 Instruments 38 2.11 161.9 162.8 163.8 164.8 165.2 165.5 161.9 157.4 155.8 155.2 154.5 153.5 155.1 154.9 35 Miscellaneous manufactures 39 1.51 137.0 144.6 141.7 136.8 134.7 133.9 132.9 129.6 129.5 128.2 131.3 133.9 135.2 139.0 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total. 507.4 579.6 582.1 586.1 584.1 585.8 578.5 575.3 570.0 568.4 572.9 578.1 579.0 585.8 595.8 37 Final 390.9 451.1 453.5 458.3 456.7 457.2 449.2 446.3 442.8 441.3 445.8 448.3 448.2 452.3 460.3 38 Consumer goods. 277.5 308.0 306.7 312.3 313.1 314.9 309.1 309.3 306.6 305.6 306.8 310.9 313.0 314.6 320.5 39 Equipment 113.4 143.1 146.8 146.0 143.5 142.3 140.1 137.0 136.2 135.7 138.9 137.4 135.2 137.7 139.8 40 Intermediate 116.6 128.5 128.6 127.8 127.4 128.7 129.3 129.0 127.2 127.1 127.1 129.8 130.8 133.5 135.6 1. 1972 dollar value. NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • May 1983 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1982 1983 IItteemm 11998800 11998811 11998822'' Aug. Sept. Oct. Nov. Dec.' Jan.' Feb.' Mar. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,191 986 985 888 1,003 1,172 1,192 1,305 1,478 1,493 1,434 2 1-family 710 564 538 497 561 651 729 736 903 833 833 3 2-or-more-family 480 421 448 391 442 521 463 569 575 660 601 4 Started 1,292 1,084 1,062 1,046 1,134 1,142 1,361 1,280 1,694 1,775 1,611 5 1-family 852 705 663 651 683 716 868 842 1,126 1,087 991 6 2-or-more-family 440 379 400 395 451 426 493 438 568 688 620 7 Under construction, end of period1 896 682 720 671' 685' 691 712 730 756 799 8 1-family 515 382 400 374' 380' 383 395 411 428 455 9 2-or-more-family 382 301 320 296 306' 307 317 319 329 344 10 Completed 1,502 1,266 1,006 1,001' 936' 1,077 1,053 1,035 1,194 1,121 n a. 11 1-family 957 818 631 638 585' 679 679 647 779 707 12 2-or-more-family 545 447 374 363' 351' 398 374 388 415 414 13 Mobile homes shipped 222 241 239 234 222 224 251 243 284 283 Merchant builder activity in 1-family units 14 Number sold 545 436 413 389 473 481 545 529 610 587 577 15 Number for sale, end of period1 342 278 255 248 247 245 246 251 263 264 259 Price (thousands of dollars)2 Median 16 Units sold 64.7 68.8 69.3 70.1 67.7 69.7 73.5 71.7 73.9 74.2 73.5 17 Units sold 76.4 83.1 83.8 86.5 79.6 79.9 87.8 86.7 87.7 88.0 8.1 EXISTING UNITS (1-family) 18 Number sold 2,974r 2,418'" 1,991 1,860' 1,910 1,990 2,150 2,260 2,580 2,460 2,700 Price of units sold (thousands of dollars)2 19 Median 62.1 66.1 67.7 68.9 67.3 66.9 67.7 67.8 68.1 68.2 69.3 20 Average 72.7 78.0 80.4 82.0 80.0 79.3 80.4 80.6 80.0 80.3 81.6 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,748 238,198 229,566 228,053 228,136 230,818 239,637 239,031 255,969 249,296 245,394 22 Private 175,701 185,221 179,418 176,644 177,002 179,792 187,517 191,441 200,071 199,099 198,596 23 Residential 87,261 86,566 75,003 72,139 71,451 75,687 81,744 86,950 93,406 96,313 97,807 24 Nonresidential, total 88,440 98,655 104,415 104,505 105,551 104,105 105,773 104,491 106,665 102,786 100,789 Buildings 7.5 Industrial 13,839 17,031 16,670 16,691 16,587 17,072 15,838 15,257 15,518 14,431 13,332 26 Commercial 29,940 34,243 37,125 36,091 37,129 35,677 37,769 37,516 38,773 37,330 37,261 27 Other 8,654 9,543 10,421 10,499 10,506 10,778 11,100 11,476 12,234 11,871 11,491 28 Public utilities and other 36,007 37,838 40,199 41,224 41,329 40,578 41,066 40,242 40,140 39,154 38,705 29 Public 55,047 52,977 50,148 51,409 51,134 51,026 52,120 47,590 55,898 50,197 46,798 30 Military 1,880 1,966 2,192 2,481 2,674 2,324 2,527 2,320 2,671 2,709 2,721 31 Highway 13,808 13,304 13,180 13,327 13,464 14,314 13,906 12,417 14,757 13,245 11,525 32 Conservation and development 5,089 5,225 4,983 5,036 4,719 4,541 4,718 4,601 5,214 4,889 5,063 33 Other 34,270 32,482 29,793 30,565 30,277 29,847 30,969 28,252 33,256 29,354 27,489 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 A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted C m h o an n g th e s f e ro a m rli e 1 r 2 Change ( a f t r o a m nn u 3 a m l o ra n t t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm MMMaaarrr... 1982 1983 1982 1983 111999888333 11998822 11998833 (((111999666777 MMaarr.. MMaarr.. === 111000000)))111 June Sept. Dec. Mar. Nov. Dec. Jan. Feb. Mar. CONSUMER PRICES2 1 All items 6.8 3.6 9.8 4.1 .5 .4 .0 -.3 .2 -.2 .1 293.4 2 Food 4.0 2.7 6.2 .6 .8 2.8 .0 .0 .1 .0 .6 290.5 3 Energy items -.8 -1.5 7.5 8.1 10.2 -25.1 .8 .3 -2.5 -3.7 -.9 399.9 4 All items less food and energy 8.7 4.7 9.6 4.7 -.3 4.4 -.1 -.2 .5 -.4 .2 282.6 5 Commodities 6.2 6.1 9.9 2.4 5.4 5.7 .3 .3 .5 .5 .4 239.1 6 Services 10.9 3.6 11.3 4.6 -4.8 3.7 -.3 -1.0 .5 .3 .1 333.1 PRODUCER PRICES 7 Finished goods 4.2 2.2 4.6 4.2 4.6 -4.1 .6 .2 -1.0 .1 -.1 283.4 8 Consumer foods 1.8 1.4 10.2 -5.2 -2.6 4.1 0 .2 -.2 .6 .5 260.8 9 Consumer energy -2.9 -4.5 -9.2 30.9 7.1 -34.4 2.0 -.7 -4.2 -2.9 -3.2 777.6 10 Other consumer goods 6.3 3.7 5.7 4.2 6.5 -1.0 .6 .3 -1.0 .7 .1 238.1 11 Capital equipment 6.9 3.9 5.2 3.5 3.9 3.0 .4 .5 -.1 .5 .4 286.5 12 Intermediate materials3 3.5 -.5 -.5 2.3 1.5 -5.1 .3 .0 -.4 -.2 -.8 314.5 13 Excluding energy 4.5 .8 .0 1.0 1.2 .8 .2 .2 -.1 .4 -.1 292.5 Crude materials 14 Foods -5.4 .5 15.8 -26.4 1.3 18.1 1.0 .4 1.1 2.4 .7 249.1 15 Energy .5 2.1 1.6 8.7 5.8 -7.1 1.8 -1.2 -1.2 -.6 .1 805.2 16 Other -9.8 -1.6 19.2 2.9 -7.9 -15.9 -.9 -.4 -2.9 -2.8 1.5 244.6 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers 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

A52 Domestic Nonfinancial Statistics • May 1983 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1982 1983 AAccccoouunntt 11998800 11998811 11998822 QL Q2 Q3 Q4 Q1P GROSS NATIONAL PRODUCT 1 Total 2,633.1 2,937.7 3,059.3 2,995.5 3,045.2 3,088.2 3,108.2 3,176.7 By source 2 Personal consumption expenditures 1,667.2 1,843.2 1,971.1 1,919.4 1,947.8 1,986.3 2,030.8 2,054.0 3 Durable goods 214.3 234.6 242.7 237.9 240.7 240.3 251.8 256.4 4 Nondurable goods 670.4 734.5 762.1 749.1 755.0 768.4 775.7 776.4 5 Services 782.5 874.1 966.3 932.4 952.1 977.6 1,003.3 1,021.2 6 Gross private domestic investment 402.4 471.5 420.3 414.8 431.5 443.3 391.5 430.6 7 Fixed investment 412.4 451.1 444.1 450.4 447.7 438.6 439.9 459.1 8 Nonresidential 309.2 346.1 348.0 357.0 352.2 344.2 338.4 339.3 9 Structures 110.5 129.7 141.5 141.4 143.6 141.3 139.6 140.4 10 Producers' durable equipment 198.6 216.4 206.5 215.6 208.6 203.0 198.8 198.9 11 Residential structures 103.2 105.0 96.2 93.4 95.5 94.3 101.4 119.9 12 Nonfarm 98.3 99.7 90.5 87.9 89.6 88.7 95.7 114.0 13 Change in business inventories -10.0 20.5 -23.8 -35.6 -16.2 4.7 -48.3 -28.5 14 Nonfarm -5.7 15.0 -24.3 -36.0 -15.0 3.7 -50.0 -26.6 15 Net exports of goods and services 25.2 26.1 20.5 31.3 34.9 6.9 9.1 16.6 16 Exports 339.2 367.3 350.8 359.9 365.8 349.5 328.1 330.2 17 Imports 314.0 341.3 330.3 328.6 330.9 342.5 319.1 313.6 18 Government purchases of goods and services 538.4 596.9 647.4 630.1 630.9 651.7 676.8 675.5 19 Federal 197.2 229.0 257.9 249.7 244.3 259.0 278.7 271.9 20 State and local 341.2 368.0 389.4 380.4 386.6 392.7 398.0 403.6 By major type of product 21 Final sales, total 2,643.1 2,917.3 3,083.1 3,031.1 3,061.4 3,083.5 3,156.5 3,205.2 22 Goods 1,141.9 1,289.2 1,280.4 1,269.4 1,283.1 1,295.5 1,273.6 1,302.3 23 Durable 477.3 528.1 493.3 482.4 505.9 516.9 467.9 486.2 24 Nondurable 664.6 761.1 787.1 787.0 777.2 778.6 805.7 816.1 25 Services 1,225.6 1,364.3 1,494.4 1,444.4 1,476.7 1,509.5 1,547.0 1,567.3 26 Structures 265.7 284.2 284.5 281.7 285.3 283.2 287.7 307.1 27 Change in business inventories -10.0 20.5 -23.8 -35.6 -16.2 4.7 -48.3 -28.5 28 Durable goods -5.2 8.7 -18.9 -30.9 -6.6 10.1 -48.3 -29.1 29 Nondurable goods -4.8 11.8 -5.0 -4.8 -9.6 -5.4 .0 .6 30 MEMO: Total GNP in 1972 dollars 1,474.0 1,502.6 1,476.9 1,470.7 1,478.4 1,481.1 1,477.2 1,488.5 NATIONAL INCOME 31 Total 2,117.1 2,352.5 2,436.6 2,396.9 2,425.2 2,455.6 2,468.8 n.a. 32 Compensation of employees 1,598.6 1,767.6 1,856.5 1,830.8 1,850.7 1,868.3 1.876.1 1,908.5 33 Wages and salaries 1,356.1 1,494.0 1,560.6 1,541.5 1,556.6 1,570.0 1.574.5 1,597.8 34 Government and government enterprises 260.2 283.1 302.3 296.3 300.0 303.5 309.2 313.2 35 Other 1,095.9 1,210.9 1,258.4 1,245.2 1,256.6 1,266.4 1,265.4 1,284.6 36 Supplement to wages and salaries 242.5 273.6 295.8 289.3 294.1 298.3 301.6 310.7 3/ Employer contributions for social insurance 115.3 133.2 142.1 140.2 141.7 142.8 143.7 150.1 38 Other labor income 127.3 140.4 153.8 149.1 152.5 155.5 157.9 160.6 39 Proprietors' income1 116.3 124.7 120.3 116.4 117.3 118.4 128.9 128.5 40 Business and professional1 96.9 100.7 101.3 98.6 99.9 101.7 104.8 110.1 41 Farm1 19.4 24.0 19.0 17.8 17.4 16.6 24.1 18.4 42 Rental income of persons2 32.9 33.9 34.1 33.9 34.2 34.6 33.9 35.3 43 Corporate profits' 181.6 190.6 160.8 157.1 155.4 166.2 164.6 n.a. 44 Profits before tax3 242.5 232.1 174.9 171.6 171.7 180.3 175.9 n.a. 45 Inventory valuation adjustment -43.0 -24.6 -9.2 -4.4 -9.4 -10.3 -12.6 -.7 46 Capital consumption adjustment -17.8 -16.8 -4.9 -10.1 -6.9 -3.8 1.3 7.1 47 Net interest 187.7 235.7 264.9 258.7 267.5 268.1 265.3 266.9 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. 1982 1983 AAccccoouunntt 11998800 11998811 11998822 Ql Q2 Q3 Q4 Ql" PERSONAL INCOME AND SAVING 1 Total personal income 2,160.2 2,404.1 2,569.9 2,510.5 2,552.7 2,592.5 2,624.0 2,648.3 2 Wage and salary disbursements 1,356.1 1,493.9 1,560.7 1,541.6 1,556.6 1,570.0 1,574.5 1,597.8 Commodity-producing industries 468.0 510.8 509.9 514.3 513.6 510.2 501.6 509.8 4 Manufacturing 354.4 386.4 382.6 385.1 385.6 383.8 375.8 383.1 Distributive industries 330.5 361.4 376.0 371.4 375.4 378.4 378.8 381.7 6 Service industries 297.5 338.6 372.5 359.5 367.6 377.8 385.0 393.0 7 Government and government enterprises 260.2 283.1 302.3 296.5 300.0 303.5 309.2 313.2 8 Other labor income 127.3 140.4 153.8 149.1 152.5 155.5 157.9 160.6 9 Proprietors' income1 116.3 124.7 120.3 116.4 117.3 118.4 128.9 128.5 10 Business and professional1 96.9 100.7 101.3 98.6 99.9 101.7 104.8 110.1 11 Farm1 19.4 24.0 19.0 17.8 17.4 16.6 24.1 18.4 12 Rental income of persons2 32.9 33.9 34.1 33.9 34.2 34.6 33.9 35.3 N Dividends 55.9 62.5 67.0 65.8 66.1 67.2 68.8 69.8 14 Personal interest income 256.3 308.5 371.2 359.7 372.0 378.2 374.6 377.6 1*5 Transfer payments 297.2 336.3 374.7 354.6 365.2 381.0 397.8 395.3 16 Old-age survivors, disability, and health insurance benefits 154.2 182.0 204.5 194.7 197.5 209.2 216.6 216.8 17 LESS: Personal contributions for social insurance 88.7 104.9 111.7 110.6 111.4 112.4 112.5 116.4 18 EQUALS: Personal income 2,160.2 2,404.1 2,569.9 2,510.5 2,552.7 2,592.5 2,624.0 2,648.3 19 LESS: Personal tax and nontax payments 336.2 386.7 397.2 393.4 401.2 394.4 399.7 401.4 20 EQUALS: Disposable personal income 1,824.1 2,029.2 2,172.7 2,117.1 2,151.5 2,198.1 2,224.3 2,247.0 21 LESS: Personal outlays 1,717.9 1,898.9 2,030.5 1,977.9 2,007.2 2,046.1 2,090.9 2,115.1 22 EQUALS: Personal saving 106.2 130.2 142.2 139.1 144.3 152.0 133.4 131.9 MEMO: Per capita (1972 dollars) Gross national product 6,474 6,536 6,364 6,360 66,,338800 66,,337766 66,,334422 66,,337755 24 Personal consumption expenditures 4,087 4,122 4,123 4,104 4,121 4,117 4,151 4,164 25 Disposable personal income 4,472 4,538 4,545 4,527 4,552 4,555 4,547 4,556 26 Saving rate (percent) 5.8 6.4 6.5 6.6 6.7 6.9 6.0 5.9 GROSS SAVING 27 Gross saving 406.3 477.5 414.0 428.8 441.5 422.4 363.3 n.a. 78 Gross private saving 438.3 504.7 531.4 520.3 529.0 546.1 531.! n.a. 29 Personal saving 106.2 130.2 142.2 139.1 144.3 152.0 133.4 131.9 30 Undistributed corporate profits1 38.9 44.4 32.8 32.5 30.7 34.8 34.2 n.a. 31 Corporate inventory valuation adjustment -43.0 -24.6 -9.2 -4.4 -9.4 -10.3 -12.6 -.7 Capital consumption allowances 3? Corporate 181.2 206.2 225.1 218.9 222233..44 222277..55 223300..66 223322..77 33 Noncorporate 112.0 123.9 131.3 129.8 130.5 131.9 132.9 133.6 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 -117.4 -90.7 -87.5 -123.7 -167.7 n.a. 36 Federal -61.4 -60.0 -149.5 -118.4 -119.6 -156.0 -204.2 -32.3 37 State and local 28.2 31.7 32.1 27.7 32.1 32.3 36.4 39.3 38 Capital grants received by the United States, net 1.2 1.1 .0 .0 .0 .0 .0 .0 39 Gross investment 410.1 475.6 415.7 421.3 442.3 426.0 373.1 423.1 40 Gross private domestic 402.4 471.5 420.3 414.8 431.5 443.3 391.5 430.6 41 Net foreign 7.8 4.1 -4.6 6.5 10.8 -17.3 -18.5 -7.5 42 Statistical discrepancy 3.9 -1.9 1.7 -7.5 .8 3.6 9.7 9.7 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 • May 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 QK Q2' Q3' Q4P 1 Balance on current account 1,520 4,471 -8,093 -927 1,034 2,188 -5,214 -6,103 1,293 729 2,841 -7,436 -4,227 3 Merchandise trade balance2 -25,338 -27,889 -36,331 -9,185 -5,938 -5,762 -12,495 -12,136 4 Merchandise exports 224,237 236,254 211,013 57,593 55,607 55,001 52,334 48,071 5 Merchandise imports -249,575 -264,143 -247,344 -66,778 -61,545 -60,763 -64,829 -60,207 6 Military transactions, net -2,472 -1,541 640 -528 167 247 201 24 7 Investment income, net3 29,910 33,037 28,720 8,529 6,867 7,694 7,082 7,076 8 Other service transactions, net 6,203 7,471 6,746 2,127 1,986 1,749 1,647 1,364 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 0 0 0 0 0 35 Discrepancy 28,870 25,809 41,864 9,497 5,142 6,038 14,139 16,546 2,474 -802 672 -1,904 2,035 37 Statistical discrepancy in recorded data before seasonal adjustment 28,870 25,809 41,864 7,023 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 1982r 1983 IItteemm 11998800 11998811 11998822 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 220,626 233,677 212,193 17,320 16,671 15,852 16,347 17,393 16,326 16,752 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 244,871 261,305 243,952 20,581 21,006 18,892 19,154 20,021 19,015 19,525 3 Trade balance -24,245 -27,628 -31,759 -3,261 -4,335 -3,041 -2,808 -2,628 -2,689 -2,774 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Total 18,956 26,756 30,075 31,711 34,006 33,958 33,936 34,233 34,261 34,173 2 Gold stock, including Exchange Stabilization Fund1 11,172 11,160 11,151 11,148 11,148 11,148 11,144 11,139 11,138 11,132 3 Special drawing rights2'3 2,724 2,610 4,095 4,801 4,929 5,250 5,267 5,284 5,229 5,192 4 Reserve position in International Monetary Fund2 1,253 2,852 5,055 6,367 7,185 7,348 8,035 8,594 9,293 9,284 5 Foreign currencies4-5 3,807 10,134 9,774 9,395 10,744 10,212 9,490 9,216 8,601 8,565 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. Gold stock is valued at $42.22 per fine troy ounce. 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. 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 in 1979 and 1980. 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Deposits 429 411 505 326 386 328 366 352 424 322 Assets held in custody 2 U.S. Treasury securities1 95,075 102,417 104,680 107,636 107,467 112,544 115,872 116,428 114,999 114,880 3 Earmarked gold 15,169 14,965 14,804 14,706 14,711 14,716 14,717 14,752 14,726 14,723 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 • May 1983 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1982 1983 11997799 11998800 11998811 Aug. Sept. Oct. Nov. Dec/ Jan. Feb.'' All foreign countries 1 Total, all currencies 364,409 401,135 462,790 471,710 471,085 463,601 468,376 468,740 462,278 457,642 2 Claims on United States 32,302 28,460 63,743 88,936 90,267 89,036 90,844 91,752 89,184 87,449 3 Parent bank 25,929 20,202 43,267 60,315 60,872 61,283 62,476 61,629 59,247 58,419 4 Other 6,373 8,258 20,476 28,621 29,395 27,753 28,368 30,123 29,937 29,030 5 Claims on foreigners 317,330 354,960 378,899 362,437 360,462 354,373 357,104 357,596 353,584 350,928 6 Other branches of parent bank 79,662 77,019 87,821 91,593 93,283 90,030 91,894 91,067 89,470 89,715 V Banks 123,420 146,448 150,708 138,517 135,454 133,365 133,269 133,300 130,874 128,980 8 Public borrowers 26,097 28,033 28,197 24,521 24,333 23,850 23,340 23,968 24,464 24,585 9 Nonbank foreigners 88,151 103,460 112,173 107,806 107,392 107,128 108,601 109,261 108,776 107,648 10 Other assets 14,777 17,715 20,148 20,337 20,356 20,192 20,428 19,392 19,510 19,265 11 Total payable in U.S. dollars 267,713 291,798 350,678 366,148 369,746 361,804 363,483 361,169 355,008 350,108 12 Claims on United States 31,171 27,191 62,142 87,328 88,613 87,316 88,971 90,032 87,490 85,823 13 Parent bank 25,632 19,896 42,721 59,634 60,207 60,538 61,662 60,973 58,479 57,716 14 Other 5,539 7,295 19,421 27,694 28,406 26,778 27,309 29,059 29,011 28,107 15 Claims on foreigners 229,120 255,391 276,882 266,420 268,253 261,896 261,701 259,127 255,697 252,665 1167 Other branches of parent bank 61,525 58,541 69,398 74,252 77,470 74,032 74,759 73,463 71,174 71,885 Banks 96,261 117,342 122,055 111,712 110,591 107,448 106,636 106,001 103,447 100,610 18 Public borrowers 21,629 23,491 22,877 19,043 18,984 18,659 18,187 18,303 18,717 18,891 19 Nonbank foreigners 49,705 56,017 62,552 61,413 61,208 61,757 62,119 61,360 62,359 61,279 20 Other assets 7,422 9,216 11,654 12,400 12,880 12,592 12,811 12,010 11,821 11,620 United Kingdom 21 Total, all currencies 130,873 144,717 157,229 164,523 167,189 164,582 165,687 161,067 157,464 156,577 22 Claims on United States 11,117 7,509 11,823 27,031 27,534 27,829 28,677 27,354 27,175 26,423 23 Parent bank 9,338 5,275 7,885 22,730 22,970 23,717 24,278 23,017 22,539 21,962 24 Other 1,779 2,234 3,938 4,301 4,564 4,112 4,399 4,337 4,636 4,461 25 Claims on foreigners 115,123 131,142 138,888 130,814 132,746 129,913 130,666 127,734 124,354 124,214 26 Other branches of parent bank 34,291 34,760 41,367 36,937 40,385 37,013 38,319 37,000 34,959 35,437 27 Banks 51,343 58,741 56,315 53,582 52,203 52,568 51,414 50,767 49,497 48,580 28 Public borrowers 4,919 6,688 7,490 6,286 6,086 6,157 6,170 6,240 6,421 6,592 29 Nonbank foreigners 24,570 30,953 33,716 34,009 34,072 34,175 34,763 33,727 33,477 33,605 30 Other assets 4,633 6,066 6,518 6,678 6,909 6,840 6,344 5,979 5,935 5,940 31 Total payable in U.S. dollars 94,287 99,699 115,188 126,344 131,129 127,517 128,863 123,740 120,233 119,273 32 Claims on United States 10,746 7,116 11,246 26,514 26,919 27,255 28,093 26,761 26,581 25,829 33 Parent bank 9,297 5,229 7,721 22,496 22,758 23,478 24,035 22,756 22,250 21,700 34 Other 1,449 1,887 3,525 4,018 4,161 3,777 4,058 4,005 4,331 4,129 35 Claims on foreigners 81,294 89,723 99,850 95,293 99,008 95,269 95,870 92,228 89,137 88,973 36 Other branches of parent bank 28,928 28,268 35,439 31,414 35,703 32,243 33,154 31,648 29,380 29,918 37 Banks 36,760 42,073 40,703 40,321 39,786 39,077 38,310 36,717 35,616 34,499 38 Public borrowers 3,319 4,911 5,595 4,336 4,214 4,251 4,281 4,329 4,600 4,789 39 Nonbank foreigners 12,287 14,471 18,113 19,222 19,305 19,698 20,125 19,534 19,541 19,767 40 Other assets 2,247 2,860 4,092 4,537 5,202 4,993 4,900 4,751 4,515 4,471 Bahamas and Caymans 41 Total, all currencies 108,977 123,837 149,051 144,194 140,614 139,438 140,939 144,843 142,561 138,470 42 Claims on United States 19,124 17,751 46,546 56,087 55,467 55,713 57,076 59,387 56,790 56,087 43 Parent bank 15,196 12,631 31,643 32,822 32,155 32,927 34,022 34,653 32,511 32,768 44 Other 3,928 5,120 14,903 23,265 23,312 22,786 23,054 24,734 24,279 23,319 45 Claims on foreigners 86,718 101,926 98,002 83,835 81,054 79,539 79,185 81,157 81,682 78,407 46 Other branches of parent bank 9,689 13,342 12,951 17,806 17,772 17,955 18,066 18,720 20,118 19,730 47 Banks 43,189 54,861 55,096 43,616 41,333 40,439 41,025 42,406 40,641 38,981 48 Public borrowers 12,905 12,577 10,010 7,036 6,999 6,743 6,310 6,413 6,434 6(494 49 Nonbank foreigners 20,935 21,146 19,945 15,377 14,950 14,402 13,784 13,618 14,489 13,202 50 Other assets 3,135 4,160 4,503 4,272 4,093 4,186 4,678 4,299 4,089 3,976 51 Total payable in U.S. dollars 102,368 117,654 143,686 138,771 136,077 134,607 135,648 139,292 136,724 132,624 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 Aug. Sept/ Oct. Nov. Dec/ Jan. Feb.P All foreign countries 52 Total, all currencies 364,409 401,135 462,790 471,710 471,085 463,601 468,376 468,740" 462,278 457,642 53 To United States 66,689 91,079 137,712 167,661 172,994 169,312 171,762 178,449 178,277 175,866 54 Parent bank 24,533 39,286 56,289 64,419 69,592 64,102 66,254 75,118 79,804 77,157 55 Other banks in United States 13,968 14,473 19,197 32,425 33,763 32,607 31,764 33,353 32,779 32,635 56 Nonbanks 28,188 37,275 62,226 70,817 69,639 72,603 73,744 69,978 65,694 66,074 57 To foreigners 283,510 295,411 305,630 283,954 277,886 274,222 276,287 270,494 265,591 263,522 58 Other branches of parent bank 77,640 75,773 86,396 92,202 91,189 91,658 91,270 90,079 89,293 90,384 59 Banks 122,922 132,116 124,906 103,466 99,966 98,259 98,209 96,677 92,857 90,218 60 Official institutions 35,668 32,473 25,997 20,004 20,527 19,440 21,095 19,614 20,250 19,742 61 Nonbank foreigners 47,280 55,049 68,331 68,282 66,204 64,865 65,713 64,124 63,191 63,178 62 Other liabilities 14,210 14,690 19,448 20,095 20,205 20,067 20,327 19,797 18,410 18,254 63 Total payable in U.S. dollars 273,857 303,281 364,390 381,898 385,440 377,121 379,142 378,457 370,457 367,146 64 To United States 64,530 88,157 134,645 164,403 170,098 166,377 168,291 174,966 174,656 172.197 65 Parent bank 23,403 37,528 54,437 62,369 67,678 62,191 63,963 72,796 77,536 74,828 66 Other banks in United States 13,771 14,203 18,883 32,162 33,508 32,362 31,428 32,988 32,255 32,208 67 Nonbanks 27,356 36,426 61,325 69,872 68,912 71,824 72,900 69,182 64,865 65,161 68 To foreigners 201,514 206,883 217,602 205,709 203,989 199,297 198,938 192,271 185,663 185,569 69 Other branches of parent bank 60,551 58,172 69,299 75,344 75,935 76,237 74,621 72,848 71,463 72,753 70 Banks 80,691 87,497 79,594 63,959 62,535 59,782 58,829 57,355 52,258 51,267 71 Official institutions 29,048 24,697 20,288 15,672 16,607 15,253 16,774 15,055 15,940 15,381 72 Nonbank foreigners 31,224 36,517 48,421 50,734 48,912 48,025 48,714 47,013 46,027 46,168 73 Other liabilities 7,813 8,241 12,143 11,786 11,353 11,447 11,913 11,220 10,138 9,380 United Kingdom 74 Total, all currencies 130,873 144,717 157,229 164,523 167,189 164,582 165,687 161,067 157,464 156,577 75 To United States 20,986 21,785 38,022 49,001 53,919 53,777 54,003 53,954 52,650 51,927 76 Parent bank 3,104 4,225 5.444 8,022 11,336 10,568 10,597 13.091 14,287 14,080 77 Other banks in United States 7,693 5,716 7,502 11,616 13,280 12,567 12,374 12,205 12,343 12,198 78 Nonbanks 10,189 11,844 25,076 29,363 29,303 30,642 31,032 28,658 26,020 25,649 79 To foreigners 104,032 117,438 112,255 107,268 104,967 102,611 103,927 99,567 97,827 97,515 80 Other branches of parent bank 12,567 15,384 16,545 18,666 19,123 18,399 19,372 18,361 19,343 21,008 81 Banks 47,620 56,262 51,336 47,502 45,526 45,601 44,266 44,020 41,073 39.892 82 Official institutions 24,202 21,412 16,517 12,006 12,348 11,379 12,940 11,504 12,377 12,025 83 Nonbank foreigners 19,643 24,380 27,857 29,094 27,970 27,232 27,349 25,682 25,034 24,590 84 Other liabilities 5,855 5,494 6,952 8,254 8,303 8,194 7,757 7,546 6,987 7,135 85 Total payable in U.S. dollars 95,449 103,440 120,277 132,536 137,268 133,591 135,188 130,261 126,286 126,007 86 To United States 20,552 21,080 37,332 48,266 53,262 53,146 53,056 53,029 51,808 50,977 87 Parent bank 3,054 4,078 5,350 7,928 11,223 10,442 10,306 12,814 14,105 13,859 88 Other banks in United States 7,651 5,626 7,249 11,510 13,142 12,472 12,188 12,026 12,128 12,041 89 Nonbanks 9,847 11,376 24,733 28,828 28,897 30,232 30,562 28,189 25,575 25,077 90 To foreigners 72,397 79,636 79,034 79,954 80,025 76,519 77,982 73,477 71,000 71,994 91 Other branches of parent bank 8,446 10,474 12,048 14,514 15,548 14,614 15,310 14,300 15,081 16,709 92 Banks 29,424 35,388 32,298 31,898 31,187 30,404 29,092 28,810 25,177 25,563 93 Official institutions 20,192 17,024 13,612 10,322 11,012 9,806 11,198 9,668 10,657 10,121 94 Nonbank foreigners 14,335 16,750 21,076 23,220 22,278 21,695' 22,382 20,699 20,085 19,601 95 Other liabilities 2,500 2,724 3,911 4,316 3,981 3,926 4,150 3,755 3,478 3,036 Bahamas and Caymans 96 Total, all currencies 108,977 123,837 149,051 144,194 140,614 139,438 140,939 144,843 142,561 138,470 97 To United States 37,719 59,666 85,704 99,270 99,500 96,810 98,475 104,139 104,415 102,261 98 Parent bank 15,267 28,181 39,396 42,971 44,370 40,225 41,900 46,811 50,476 47,443 99 Other banks in United States 5,204 7,379 10,474 17,911 17,927 17,481 16,805 18,461 17,549 17,313 100 Nonbanks 17,248 24,106 35,834 38,388 37,203 39,104 39,770 38,867 36,390 37,505 101 To foreigners 68,598 61,218 60,012 42,039 38,401 39,793 39,603 38,249 35,900 33,858 102 Other branches of parent bank 20,875 17,040 20,641 17,348 15,126 17,421 17,566 15,796 14,688 13,809 103 Banks 33,631 29,895 23,202 11,599 10,910 10,297 10,413 10,166 9,279 8,451 104 Official institutions 4,866 4,361 3,498 2,288 2,091 2,137 1,846 1,967 1,849 1,720 105 Nonbank foreigners 9,226 9,922 12,671 10,804 10,274 9,938 9,778 10,320 10,084 9,878 106 Other liabilities 2,660 2,953 3,335 2,885 2,713 2,835 2,861 2,455 2,246 2,351 107 Total payable in U.S. dollars 103,460 119,657 145,227 140,750 137,717 136,574 137,828 141,595 139,148 135,117 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • May 1983 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1982 1983 IItteemm 11998800 11998811'' Sept/ Oct/ Nov/ Dec/ Jan. Feb." Mar.'' 1 Total1 164,578 170,109 171,248 171,406 168,025 172,780 175,163 172,917 173,320 By type 2 Liabilities reported by banks in the United States2 30,381 26,928 26,590 27,056 25,338 24,873 23,842 21,422 23,164 3 U.S. Treasury bills and certificates3 56,243 52,389 44,450 43,964 42,906 46,658 50,432 49,954 47,917 U.S. Treasury bonds and notes 4 Marketable 41,455 53,186 64,978 65,619 65,850 67,715 67,735 69,303 70,422 5 Nonmarketable4 14,654 11,791 9,350 9,350 8,750 8,750 8,750 7,950 7,950 6 U.S. securities other than U.S. Treasury securities5 21,845 25,815 25,880 25,417 25,181 24,784 24,404 24,288 23,867 By area 7 Western Europe1 81,592 65,891 61,474 60,846 59,447 61,501 62,525 62,103 61,742 8 Canada 1,562 2,403 2,057 2,204 2,044 2,070 2,430 2,754 2,943 9 Latin America and Caribbean 5,688 6,954 6,494 7,231 5,900 6,028 7,138 6,100 5,773 10 Asia 70,784 91,790 95,745 95,110 93,960 95,922 95,278 95,679 96,784 11 Africa 4,123 1,829 1,303 1,452 1,371 1,350 1,716 1,327 1,162 12 Other countries6 829 1,242 4,175 4,563 5,303 5,909 6,076 4,954 4,916 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 11998811rr Mar/ June' Sept/ Dec. 1 Banks' own liabilities 1,918 3,748 3,523 4,030 4,513 4,575 4,751 2 Banks' own claims 2,419 4,206 4,980 5,300 5,895 6,337 7,689 3 Deposits 994 2,507 3,398 3,532 3,565 3,429 4,241 4 Other claims 1,425 1,699 1,582 1,768 2,329 2,908 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 11998811AA'' Sept/ Oct/ Nov/ Dec. Jan/ Feb. Mar.P 1 All foreigners 187,521 205,297 244,043 300,348 300,811 302,776 305,320 304,779 302,828 315,715 2 Banks' own liabilities 117,196 124,791 163,738 222,260 221,055 226,068 225,379 219,361 217,841 233,925 3 Demand deposits 23,303 23,462 19,628 15,413 17,059 17,148 16,017 16,089 17,423 16,318 4 Time deposits' 13,623 15,076 28,992 62,862 62,172 62,718 67,072 64,347 65,273 68,372 5 Other2 16,453 17,583 17,617 23,189 22,930 24,414 23,791 22,918 20,295 24,284 6 Own foreign offices3 63,817 68,670 97,500 120,796 118,894 121,788 118,499 116,006 114,851 124,950 7 Banks' custody liabilities4 70,325 80,506 80,305 78,089 79,756 76,708 79,941 85,419 84,987 81,790 8 U.S. Treasury bills and certificates5 48,573 57,595 55,316 5511,,557722 53,374 52,138 55,614 62,137 61,904 5588,,776677 9 Other negotiable and readily transferable instruments6 19,396 20,079 19,019 22,437 22,668 20,965 20,625 19,352 19,205 18,831 10 Other 2,356 2,832 5,970 4,080 3,715 3,605 3,702 3,930 3,877 4,193 11 Nonmonetary international and regional organizations7 2,356 2,344 2,721 5,050 6,036 6,465 4,597 6,611 5,969 3,949 12 Banks' own liabilities 714 444 638 2,752 2,337 3,387 1,584 1,787 1,695 1,304 13 Demand deposits 260 146 262 194 261 257 106 284 195 221 14 Time deposits' 151 85 58 734 431 969 1,339 1,333 1,367 917 15 Other2 303 212 318 1,825 1,645 2,161 139 170 134 166 16 Banks' custody liabilities4 1,643 1,900 2,083 2,298 3,699 3,078 3,013 4,824 4,275 2,645 17 U.S. Treasury bills and certificates 102 254 541 676 2,160 1,774 1,621 3,603 3,153 1,501 18 Other negotiable and readily transferable instruments6 1,538 1,646 1,542 1,621 1,539 1,304 1,392 1,221 1,122 1,144 19 Other 2 0 0 0 0 0 0 0 0 0 20 Official institutions8 78,206 86,624 79,318 71,041 71,021 68,244 71,531 74,274 71,377 71,081 21 Banks' own liabilities 18,292 17,826 17,094 16,796 16,989 16,638 16,526 16,411 14,620 16,632 22 Demand deposits 4,671 3,771 2,564 2,521 2,138 2,074 1,981 2,168 2,063 2,264 23 Time deposits' 3,050 3,612 4,230 5,518 6,132 5,539 5,489 4,907 5,481 5,608 24 Other2 10,571 10,443 10,300 8,758 8,720 9,025 9,057 9,336 7,076 8,759 25 Banks' custody liabilities4 59,914 68,798 62,224 54,245 54,031 51,607 55,006 57,864 56,756 54,449 26 U.S. Treasury bills and certificates5 47,666 56,243 52,389 44,450 43,964 42,906 46,658 50,432 49,954 47,917 27 Other negotiable and readily transferable instruments6 12,196 12,501 9,787 9,755 10,033 8,672 8,319 7,396 6,769 6,507 28 Other 52 54 47 39 34 28 28 35 33 25 29 Banks9 88,316 96,415 136,030 183,101 182,766 185,679 185,097 178,460 179,066 192,516 30 Banks' own liabilities 83,299 90,456 124,312 167,276 166,268 169,412 168,679 161,637 161,053 174,138 31 Unaffiliated foreign banks 19,482 21,786 26,812 46,480 47,374 47,624 50,179 45,631 46,202 49,188 32 Demand deposits 13,285 14,188 11,614 8,138 9,882 9,724 8,733 8,186 9,627 8,245 33 Time deposits' 1,667 1,703 8,735 26,767 26,026 26,035 28,267 25,556 25,297 27,509 34 Other2 4,530 5,895 6,462 11,575 11,466 11,865 13,179 11,889 11,278 13,433 35 Own foreign offices3 63,817 68,670 97,500 120,796 118,894 121,788 118,499 116,006 114,851 124,950 36 Banks' custody liabilities4 5,017 5,959 11,718 15,825 16,498 16,267 16,419 16,822 18,012 18,377 37 U.S. Treasury bills and certificates 422 623 1,687 4,897 5,634 5,792 5,809 6,292 6,791 7,122 38 Other negotiable and readily transferable instruments6 2,415 2,748 4,421 7,916 8,061 7,782 7,844 7,698 8,345 8,266 39 Other 2,179 2,588 5,611 3,012 2,803 2,693 2,766 2,833 2,876 2,990 40 Other foreigners 18,642 19,914 25,974 41,156 40,989 42,388 44,095 45,434 46,416 48,169 41 Banks' own liabilities 14,891 16,065 21,694 35,435 35,461 36,631 38,591 39,526 40,473 41,850 42 Demand deposits 5,087 5,356 5,189 4,560 4,778 5,093 5,197 5,452 5,539 5,587 43 Time deposits 8,755 9,676 15,969 29,843 29,583 30,175 31,977 32,551 33,128 34,338 44 Other2 1,048 1,033 537 1,031 1,100 1,363 1,416 1,524 1,807 1,925 45 Banks' custody liabilities4 3,751 3,849 4,279 5,721 5,528 5,756 5,504 5,908 5,943 6,319 46 U.S. Treasury bills and certificates 382 474 699 1,548 1,615 1,666 1,525 11,,881100 2,006 22,,222277 47 Other negotiable and readily transferable instruments6 3,247 3,185 3,268 3,146 3,035 3,207 3,070 3,037 2,970 2,914 48 Other 123 190 312 1,028 878 884 908 1,062 968 1,178 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,984 10,745 10,747 13,533 15,029 14,408 14,296 13,367 11,611 11,383 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 A 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 • May 1983 3.17 Continued 1982 1983 AArreeaa aanndd ccoouunnttrryy 11997799 11998800 11998811AA'' Sept/ Oct/ Nov/ Dec. Jan/ Feb. Mar.P 1 187,521 205,297 244,043 300,348 300,811 302,776 305,320 304,779 302,828 315,715 2 Foreign countries 185,164 202,953 241,321 295,299 294,776 296,311 300,723 298,168 296,858 311,766 3 Europe 90,952 90,897 91,309 114,289 116,015 117,242 117,695 118,764 116,019 116,810 4 Austria 413 523 596 537 508 441 512 467 513 605 5 Belgium-Luxembourg 2,375 4,019 4,117 3,259 2,782 2,499 2,517 2,270 2,295 2,725 6 Denmark 1,092 497 333 149 166 221 509 996 1,197 765 7 Finland 398 455 296 328 478 572 748 473 369 408 8 France 10,433 12,125 8,486 7,720 7,358 7,065 8,169 8,462 7,723 6,758 9 Germany 12,935 9,973 7,665 5,331 5,360 6,093 5,375 5,807 6,227 6,457 10 Greece 635 670 463 471 516 496 537 589 595 597 11 Italy 7,782 7,572 7,290 6,714 5,541 4,779 5,674 4,938 4,514 4,310 12 Netherlands 2,337 2,441 2,823 2,899 3,102 3,100 3,362 3,770 3,196 3,703 13 Norway 1,267 1,344 1,457 1,773 2,026 2,197 1,567 1,476 1,407 1,061 14 Portugal 557 374 354 386 356 453 388 398 370 363 15 Spain 1,259 1,500 916 1,106 1,315 1,301 1,405 1,316 1,524 1,630 16 Sweden 2,005 1,737 1,545 1,324 1,997 1,615 1,380 1,315 1,645 1,386 17 Switzerland 17,954 16,689 18,720 26,491 27,619 27,994 28,999 28,996 30,288 30,652 18 Turkey 120 242 518 301 317 255 296 190 251 256 19 United Kingdom 24,700 22,680 28,287 48,492 49,009 50,274 48,169 50,339 47,202 47,656 20 Yugoslavia 266 681 375 307 390 470 499 470 452 491 21 Other Western Europe1 4,070 6,939 6,526 6,334 6,524 6,889 6,965 6,033 5,873 6,106 22 U.S.S.R 52 68 49 47 111 45 50 47 41 42 23 Other Eastern Europe2 302 370 493 322 541 486 573 412 335 840 24 Canada 7,379 10,031 10,250 11,623 12,163 11,719 12,217 10,990 13,618 15,156 25 Latin America and Caribbean 49,686 53,170 85,159 110,907 108,687 110,140 112,916 110,576 109,313 119,427 26 Argentina 1,582 2,132 2,445 3,467 3,482 3,432 3,577 4,833 4,891 4,646 27 Bahamas 15,255 16,381 34,856 43,815 43,123 44,125 44,026 42,911 43,237 48,833 28 Bermuda 430 670 765 1,519 1,507 1,596 1,572 1,989 1,903 2,123 29 Brazil 1,005 1,216 1,568 1,752 2,020 1,986 2,010 1,916 2,010 1,917 30 British West Indies 11,138 12,766 17,794 23,339 23,068 24,276 26,372 24,630 23,963 27,469 31 Chile 468 460 664 1,293 1,447 1,444 1,626 1,341 1,280 1,068 32 Colombia 2,617 3,077 2,993 2,516 2,407 22,,442266 2,593 2,384 2,336 1,873 33 Cuba 13 6 9 7 7 88 9 10 10 9 34 Ecuador 425 371 434 524 556 519 453 472 499 548 35 Guatemala 414 367 479 639 636 639 670 682 669 653 36 Jamaica 76 97 87 121 118 108 126 115 103 133 37 Mexico 4,185 4,547 7,170 8,477 8,031 8,047 7,967 7,930 7,380 8,108 38 Netherlands Antilles 499 413 3,182 3,713 3,677 3,518 3,597 3,762 3,474 3,407 39 Panama 4,483 4,718 4,857 6,184 4,770 4,798 4,738 4,923 4,983 5,594 40 Peru 383 403 694 974 1,031 959 1,147 1,052 903 911 41 Uruguay 202 254 367 721 844 651 759 726 817 808 42 Venezuela 4,192 3,170 4,245 8,625 8,796 8,315 8,382 7,649 7,671 8,000 43 Other Latin America and Caribbean 2,318 2,123 2,548 3,219 3,166 3,293 3,291 3,251 3,185 3,327 44 33,005 42,420 50,005 51,123 4499,,880033 4488,,556655 4488,,667799 4488,,119933 4499,,558811 5522,,227766 China 45 Mainland 49 49 158 254 216 214 203 220 196 208 46 Taiwan 1,393 1,662 2,082 2,494 2,568 2,769 2,716 3,139 3,515 3,530 47 Hong Kong 1,672 2,548 3,950 4,945 4,957 4,847 4,465 4,542 4,988 5,697 48 India 527 416 385 407 439 507 433 514 962 525 49 Indonesia 504 730 640 436 757 534 849 1,156 614 851 50 Israel 707 883 592 583 612 705 606 608 515 983 51 Japan 8,907 16,281 20,750 18,895 16,830 15,680 16,098 15,836 16,613 16,855 52 Korea 993 1,528 2,013 1,905 1,927 1,776 1,692 1,473 1,458 1,418 53 Philippines 795 919 874 712 736 768 770 680 787 718 54 Thailand 277 464 534 310 365 349 629 482 529 488 55 Middle-East oil-exporting countries3 15,300 14,453 13,174 14,030 14,053 14,396 13,433 12,332 11,672 13,057 56 Other Asia 1,879 2,487 4,854 6,152 6,344 6,020 6,784 7,210 7,731 7,945 57 Africa 3,239 5,187 3,180 2,785 3,369 3,192 3,070 3,331 3,087 2,873 58 Egypt 475 485 360 385 242 373 398 500 416 4% 59 Morocco 33 33 32 63 54 66 75 51 51 57 60 South Africa 184 288 420 344 279 564 277 276 317 281 61 Zaire 110 57 26 20 23 22 23 25 31 33 62 Oil-exporting countries4 1,635 3,540 1,395 1,074 1,669 1,250 1,280 1,603 1,333 975 63 Other Africa 804 783 946 899 1,103 918 1,016 877 939 1,031 64 Other countries 904 1,247 1,419 4,572 4,738 5,452 6,146 6,314 5,241 5,224 65 Australia 684 950 1,223 4,355 4,530 5,224 5,904 6,080 5,052 4,933 66 All other 220 297 1% 216 207 228 243 235 190 291 67 Nonmonetary international and regional organizations 2,356 2,344 2,721 5,050 6,036 6,465 4,597 6,611 5,969 3,949 68 International 1,238 1,157 1,661 3,934 5,141 5,522 3,705 5,769 5,186 3,182 69 Latin American regional 806 890 710 719 573 533 517 527 487 478 /0 Other regional5 313 2% 350 397 322 410 375 316 2% 289 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 fisted in line 23. except the Bank for International Settlements, which is included in "Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Western Europe." Democratic Republic, Hungary, Poland, ana Romania. A Liabilities and claims of banks in the United States were increased, beginning 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and in December 1981, by the shift from foreign branches to international banking United Arab Emirates (Trucial States). facilities in the United States of liabilities to, and claims on, foreign residents. 4. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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'' Sept/ Oct/ Nov/ Dec. Jan/ Feb. Mar.P 1 Total 133,943 172,592 251,082 340,301 334,783 336,551 353,733 357,333 358,429 369,180 2 Foreign countries 133,906 172,514 251,026 340,257 334,728 336,494 353,665 357,260 358,352 369,111 3 Europe 28,388 32,108 49,067 76,527 78,358 79,190 84,005 83,503 84,131 87,352 4 Austria 284 236 121 146 173 197 216 232 226 255 5 Belgium-Luxembourg 1,339 1,621 2,851 4,811 4,965 5,395 5,115 4,730 5,363 5,542 6 Denmark 147 127 187 358 3% 406 554 609 648 1,134 7 Finland 202 460 546 806 813 904 990 984 957 923 8 France 3,322 2,958 4,124 5,816 6,219 6,627 6,863 7,204 7,369 7,176 9 Germany 1,179 948 938 1,609 1,522 1,756 1,860 1,407 1,740 1,336 10 Greece 154 256 333 283 335 373 452 576 632 603 11 Italy 1,631 3,364 5,240 6,733 7,346 7,708 7,498 7,544 7,005 7,169 17 Netherlands 514 575 682 1,099 1,285 1,122 1,428 1,470 1,356 1,629 13 Norway 276 227 384 575 544 650 572 625 587 536 14 Portugal 330 331 529 998 1,018 924 943 843 834 817 15 Spain 1,051 993 2,100 3,469 3,558 3,643 3,730 3,699 3,223 3,120 16 Sweden 542 783 1,205 2,404 2,799 2,804 3,030 3,113 2,693 2,309 17 Switzerland 1,165 1,446 2,213 1,847 1,636 1,516 1,639 1,568 1,496 1,665 18 Turkey 149 145 424 605 603 598 560 527 567 595 19 United Kingdom 13,795 14,917 23,654 41,413 41,661 40,868 44,754 44,703 45,757 48,387 20 Yugoslavia 611 853 1,224 1,1% 1,248 1,261 1,418 1,382 1,399 1,386 71 Other Western Europe1 175 179 209 325 266 380 378 310 319 317 ?.?. U.S.S.R 268 281 377 246 242 227 263 233 250 308 23 Other Eastern Europe2 1,254 1,410 1,725 1,787 1,728 1,832 1,741 1,745 1,709 2,144 24 Canada 4,143 4,810 9,164 11,870 12,982 12,500 14,216 14,865 15,569 14,791 25 Latin America and Caribbean 67,993 92,992 138,138 187,120 180,564 180,902 187,379 192,024 191,944 197,584 26 Argentina 4,389 5,689 7,522 10,964 11,019 10,816 10,960 11,231 11,431 11,258 77 Bahamas 18,918 29,419 43,446 55,999 51,848 52,207 56,300 58,003 56,630 59,527 28 Bermuda 496 218 346 429 602 957 603 582 536 506 29 Brazil 7,713 10,496 16,914 23,104 22,999 22,978 23,204 23,036 23,377 23,409 30 British West Indies 9,818 15,663 21,930 30,032 28,270 27,370 29,162 32,790 33,342 34,948 31 Chile 1,441 1,951 3,690 5,394 5,276 5,091 5,560 5,229 5,302 5,1% 32 Colombia 1,614 1,752 2,018 2,826 2,838 2,895 3,185 3,221 3,159 3,184 33 Cuba 4 3 3 3 3 3 3 11 2 2 34 Ecuador 1,025 1,190 1,531 2,127 2,057 2,101 2,053 2,038 2,054 2,046 35 Guatemala3 134 137 124 119 111 140 124 129 119 83 36 Jamaica3 47 36 62 387 151 218 181 206 197 216 37 Mexico 9,099 12,595 22,409 29,630 29,422 29,558 29,449 29,422 30,234 30,896 38 Netherlands Antilles 248 821 1,076 825 685 731 814 815 906 955 39 Panama 6,041 4,974 6,779 10,583 10,286 10,516 10,133 10,040 9,2% 9,471 40 Peru 652 890 1,218 2,252 2,244 2,252 2,332 2,299 2,273 2,297 41 Uruguay 105 137 157 550 572 609 681 687 684 706 42 Venezuela 4,657 5,438 7,069 9,867 9,925 10,250 10,682 10,225 10,283 10,569 43 Other Latin America and Caribbean 1,593 1,583 1,844 2,032 2,257 2,211 1,953 2,057 2,117 2,315 44 30,730 39,078 49,780 57,440 55,723 56,671 60,629 59,032 58,929 61,400 China 45 Mainland 35 195 107 126 139 194 210 198 195 195 46 Taiwan 1,821 2,469 2,461 1,949 2,020 2,255 2,285 2,223 1,975 1,855 47 Hong Kong 1,804 2,247 4,126 6,723 5,976 6,201 7,705 7,081 7,126 7,501 48 India 92 142 123 275 254 258 222 230 200 160 49 Indonesia 131 245 351 297 315 314 342 370 429 505 50 Israel 990 1,172 1,562 1,623 1,748 1,895 2,043 1,835 1,732 1,743 51 Japan 16,911 21,361 26,762 28,584 26,722 25,952 27,199 26,741 26,845 28,689 52 Korea 3,793 5,697 7,324 7,365 7,790 8,536 9,389 9,052 9,183 9,166 53 Philippines 737 989 1,817 2,508 2,560 2,467 2,555 2,444 2,599 2,628 54 Thailand 933 876 564 409 442 501 643 649 651 621 55 Middle East oil-exporting countries4 1,548 1,432 1,575 2,591 2,848 3,176 3,087 3,428 3,383 3,795 56 Other Asia 1,934 2,252 3,009 4,991 4,910 4,923 4,948 4,781 4,612 4,541 57 Africa 1,797 2,377 3,503 5,176 5,017 5,274 5,350 5,608 5,504 5,483 58 Egypt 114 151 238 386 365 349 322 310 277 309 59 Morocco 103 223 284 376 367 384 347 342 359 375 60 South Africa 445 370 1,011 1,775 1,744 1,832 2,013 2,061 2,193 2,185 61 Zaire 144 94 112 59 61 58 57 57 54 52 62 Oil-exporting countries5 391 805 657 842 764 903 803 914 841 844 63 Other 600 734 1,201 1,738 1,717 1,747 1,807 1,924 1,781 1,717 64 Other countries 855 1,150 1,376 2,125 2,083 1,957 2,086 2,228 2,274 2,501 65 Australia 673 859 1,203 1,792 1,713 1,528 1,713 1,714 1,696 1,947 66 All other 182 290 172 332 370 429 373 514 578 554 67 Nonmonetary international and regional organizations6 36 78 56 44 56 57 68 73 77 69 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 • May 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 11998811AARR Sept/ Oct/ Nov/ Dec. Jan/ Feb. Mar." 1 Total 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,000000055555551111111 333333377777777777777,,,,,,,888888855555554444444 333333399999993333333,,,,,,,666666644444442222222 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,000000088888882222222 333333344444440000000,,,,,,,333333300000001111111 334,783 336,551 333333355555553333333,,,,,,,777777733333333333333 357,333 358,429 369,180 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 11111115555555,,,,,,,999999933333337777777 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,333333300000002222222 44444442222222,,,,,,,666666677777770000000 42,429 42,296 44444444444444,,,,,,,666666600000001111111 44,360 45,411 46,697 44 OOwwnn ffoorreeiiggnn ooffffiicceess11 44444447777777,,,,,,,444444422222228888888 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666644444447777777 111111122222226666666,,,,,,,333333366666667777777 117,329 118,060 111111122222227777777,,,,,,,222222277777775555555 133,589 134,272 142,088 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,111111133333334444444 111111111111111111111,,,,,,,666666699999993333333 114,464 115,123 111111111111119999999,,,,,,,333333322222227777777 116,434 117,660 119,982 66 DDeeppoossiittss 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,000000011111112222222 44444440000000,,,,,,,999999933333332222222 42,165 41,227 44444443333333,,,,,,,000000011111112222222 42,160 44,100 48,201 77 OOtthheerr 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,111111122222223333333 77777770000000,,,,,,,777777766666661111111 72,299 73,896 77777776666666,,,,,,,333333311111115555555 74,274 73,560 71,782 88 AAllll ootthheerr ffoorreeiiggnneerrss 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999999999999999999 55555559999999,,,,,,,555555577777770000000 60,561 61,073 66666662222222,,,,,,,555555533333330000000 62,950 61,086 60,412 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 33333337777777,,,,,,,555555555555553333333 33333339999999,,,,,,,999999900000009999999 999999955555555555555 888888888888885555555 1111111,,,,,,,333333377777778888888 1111111,,,,,,,333333322222229999999 2222222,,,,,,,222222222222226666666 11 Negotiable and readily transferable 11111113333333,,,,,,,111111100000000000000 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 22222229999999,,,,,,,111111100000007777777 33333330000000,,,,,,,666666622222227777777 12 Outstanding collections and other 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,111111111111117777777 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 24,468 39,862 43,649 45,717 46,884 40,967 38,263 38,608 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 86,181 106,748 153,879 174,639 200,596 213,223 225,853 By borrower 2 Maturity of 1 year or less1 65,152 82,555 115,849 133,247 151,698 161,686 171,852 3 Foreign public borrowers 7,233 9,974 15,099 16,651 19,367 20,057 20,999 4 All other foreigners 57,919 72,581 100,750 116,596 132,331 141,629 150,852 5 Maturity of over 1 year1 21,030 24,193 38,030 41,392 48,898 51,537 54,001 6 Foreign public borrowers 8,371 10,152 15,650 16,809 20,057 21,925 22,883 7 All other foreigners 12,659 14,041 22,380 24,582 28,841 29,612 31,118 By area Maturity of 1 year or less1 8 Europe 15,235 18,715 27,914 34,383 39,064 44,880 49,232 9 Canada 1,777 2,723 4,634 5,816 6,594 7,039 7,554 10 Latin America and Caribbean 24,928 32,034 48,489 58,352 68,046 71,686 72,922 11 21,641 26,686 31,413 30,558 33,518 33,297 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 year1 14 Europe 4,160 5,118 8,094 8,256 9,244 10,510 11,559 15 Canada 1,317 1,448 1,774 1,858 2,340 1,955 1,923 16 Latin America and Caribbean 12,814 15,075 25,089 27,660 32,919 34,020 35,121 17 1,911 1,865 1,907 2,250 2,479 3,088 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. A 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 Banks1 Billions of dollars, end of period 1981 1982 AArreeaa oorr ccoouunnttrryy 1199778822 11997799 11998800 Mar. June Sept. Dec. Mar. June Sept. Dec.'' 1 Total 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 Italy 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 15 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 7.3 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 75 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 47. 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 .4 .6 .8 .8 .7 1.0 1.1 1.3 1.3 1.3 11..22 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 Canal 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 • May 1983 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1981 1982 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 Dec. Mar. June Sept. Dec.'' 1 Total 17,433 22,226 22,480 22,480 22,393 20,965 21,440 21,795 2 Payable in dollars 14,323 18,481 18,758 18,758 19,623 18,182 18,324 18,696 3 Payable in foreign currencies 3,110 3,745 3,722 3,722 2,770 2,783 3,116 3,099 By type 4 Financial liabilities 7,523 11,330 12,117 12,117 12,599 10,028 10,707 10,253 5 Payable in dollars 5,223 8,528 9,446 9,446 10,627 8,066 8,399 8,178 6 Payable in foreign currencies 2,300 2,802 2,671 2,671 1,972 1,961 2,308 2,075 7 Commercial liabilities 9,910 10,896 10.363 10,363 9,794 10,937 10,733 11,542 8 Trade payables 4,591 4,993 4,720 4,720 4,022 5,027 4,527 4,471 9 Advance receipts and other liabilities 5,320 5,903 5,643 5,643 5,773 5,910 6,206 7,071 10 Payable in dollars 9,100 9,953 9,312 9,312 8,996 10,115 99,,992255 10,518 11 Payable in foreign currencies 811 943 1,052 1,052 798 822 880088 1,024 By area or country Financial liabilities 12 Europe 4,665 6,481 6,819 6,819 7,883 5,947 6,389 6,152 13 Belgium-Luxembourg 338 479 471 471 605 518 494 502 14 France 175 327 709 709 924 581 672 635 15 Germany 497 582 491 491 503 439 446 422 16 Netherlands 829 681 748 748 755 517 759 702 17 Switzerland 170 354 715 715 707 661 670 653 18 United Kingdom 2,477 3,923 3,559 3,559 4,282 3,084 3,212 3,061 19 Canada 532 964 958 958 914 758 702 685 20 Latin America and Caribbean 1,514 3,136 3,356 3,356 3,333 2,805 2,969 2,683 21 Bahamas 404 964 1,279 1,279 1,095 1,003 933 866 22 Bermuda 81 1 7 7 6 7 14 23 23 Brazil 18 23 22 22 27 24 28 28 24 British West Indies 516 1,452 1,241 1,241 1,469 1,044 981 992 25 Mexico 121 99 102 102 67 83 85 121 26 Venezuela 72 81 98 98 97 100 104 114 27 Asia 804 723 957 957 455 502 631 718 28 Japan 726 644 792 792 293 340 424 527 29 Middle East oil-exporting countries2 31 38 75 75 63 66 67 70 30 Africa 4 11 3 3 2 3 3 4 31 Oil-exporting countries3 1 1 0 0 0 0 0 0 32 All other4 4 15 24 24 12 11 13 12 Commercial liabilities 33 Europe 3,709 4,402 3,771 3,771 3,422 3,742 3,861 3,578 34 Belgium-Luxembourg 137 90 71 71 50 47 50 50 35 France 467 582 573 573 504 700 759 602 36 Germany 545 679 545 545 473 457 436 464 37 Netherlands 227 219 221 221 232 248 281 340 38 Switzerland 316 499 424 424 400 412 358 335 39 United Kingdom 1,080 1,209 880 880 824 850 904 802 40 Canada 924 888 897 897 884 1,116 1,188 1,482 41 Latin America and Caribbean 1,325 1,300 1,044 1,044 817 1,418 1,220 1,127 42 Bahamas 69 8 2 2 22 20 6 16 43 Bermuda 32 75 67 67 71 102 48 89 44 Brazil 203 111 67 67 83 62 128 65 45 British West Indies 21 35 2 2 27 2 3 32 46 Mexico 257 367 340 340 210 727 484 475 47 Venezuela 301 319 276 276 194 219 269 157 48 2,991 3,034 3,285 3,285 3,404 3,298 3,207 3,966 49 Japan 583 802 1,094 1,094 1,090 1,064 1,134 1,028 50 Middle East oil-exporting countries2 1,014 890 910 910 998 958 821 1,538 51 Africa 728 817 703 703 664 732 663 736 52 Oil-exporting countries3 384 517 344 344 247 340 248 284 53 All other4 233 456 664 664 604 630 595 653 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 Dec. Mar. June Sept. Dec.'' 1 Total 31,299 34,482 35,672 35,672 30,203 30,483 29,488 27,153 2 Payable in dollars 28,096 31,528 32,071 32,071 27,564 27,983 26,835 24,545 3 Payable in foreign currencies 3,203 2,955 3,601 3,601 2,639 2,500 2,653 2,608 By type 4 Financial claims 18,398 19,763 20,742 20,742 17,748 18,360 17,714 16,432 5 Deposits 12,858 14,166 14,688 14,688 12,730 13,603 12,608 11,918 6 Payable in dollars 11,936 13,381 14,057 14,057 12,267 13,229 12,194 11,552 7 Payable in foreign currencies 923 785 631 631 463 374 413 366 8 Other financial claims 5,540 5,597 6,054 6,054 5,018 4,757 5,106 4,514 9 Payable in dollars 3,714 3,914 3,600 3,600 3,362 3,189 3,419 2,833 10 Payable in foreign currencies 1,826 1,683 2,454 2,454 1,656 1,568 1,687 1,681 11 Commercial claims 12,901 14,720 14,930 14,930 12,455 12,122 11,774 10,721 12 Trade receivables 12,185 13,960 13,965 13,965 11,493 11,069 10,709 9,752 13 Advance payments and other claims.. 716 759 965 965 962 1,053 1,065 969 14 Payable in dollars 12,447 14,233 14,414 14,414 11,935 11,565 11,222 10,160 15 Payable in foreign currencies 454 487 516 516 520 557 552 561 By area or country Financial claims 16 Europe 6,179 6,069 4,515 4,515 4,506 4,661 4,728 4,524 17 Belgium-Luxembourg 32 145 43 43 16 13 16 10 18 France 177 298 285 285 375 313 305 129 19 Germany 409 230 224 224 197 148 174 168 20 Netherlands 53 51 50 50 79 56 52 30 21 Switzerland 73 54 57 57 53 63 60 84 22 United Kingdom 5,099 4,987 3,525 3,525 3,549 3,795 3,749 3,839 23 Canada 5,003 5,036 6,628 6,628 4,942 4,365 4,322 4,199 24 Latin America and Caribbean 6,312 7,811 8,615 8,615 7,432 8,312 7,630 6,783 25 Bahamas 2,773 3,477 3,925 3,925 3,537 3,845 3,366 3,137 26 Bermuda 30 135 18 18 27 42 19 13 27 Brazil 163 96 30 30 49 76 76 60 28 British West Indies 2,011 2,755 3,503 3,503 2,797 3,504 3,171 2,656 29 Mexico 157 208 313 313 281 274 268 274 30 Venezuela 143 137 148 148 130 134 133 139 31 Asia 601 607 762 762 670 800 825 736 32 Japan 199 189 366 366 257 327 247 191 33 Middle East oil-exporting countries2 16 20 37 37 36 33 30 15 34 Africa 258 208 173 173 164 156 165 158 49 26 46 46 43 41 50 48 35 Oil-exporting countries3 44 32 48 48 34 66 44 31 36 All other4 Commercial claims 4,922 5,544 5,359 5,359 4,381 4,273 4,164 3,658 37 Europe 202 233 234 234 246 211 178 152 38 Belgium-Luxembourg 727 1,129 776 776 698 636 646 465 39 France 593 599 557 557 452 392 427 341 40 Germany 298 318 303 303 227 297 278 364 41 Netherlands 272 354 427 427 354 384 258 328 42 Switzerland 901 929 969 969 1,062 905 1,035 765 43 United Kingdom 44 Canada 859 914 967 967 943 713 666 635 45 Latin America and Caribbean 2,879 3,766 3,479 3,479 2,925 2,787 2,772 2,376 46 Bahamas 21 21 12 12 80 30 19 21 47 Bermuda 197 108 223 223 212 225 154 259 48 Brazil 645 861 668 668 417 423 481 252 49 British West Indies 16 34 12 12 23 10 7 9 50 Mexico 708 1,102 1,022 1,022 762 750 869 672 51 Venezuela 343 410 424 424 396 383 373 342 52 Asia 3,451 3,522 3,914 3,914 3,155 3,323 3,086 3,104 53 Japan 1,177 1,052 1,244 1,244 1,160 1,213 968 1,157 54 Middle East oil-exporting countries2 765 825 901 901 757 806 775 710 55 Africa 551 653 750 750 587 614 638 535 56 Oil-exporting countries3 130 153 152 152 143 138 148 133 57 All other4 240 321 461 461 463 413 448 413 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 • May 1983 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1983 1982 1983 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998811 11998822 Jan.- Mar. Sept. Oct. Nov. Dec. Jan. Feb. Mar.P U.S. corporate securities STOCKS 1 Foreign purchases 40,686 41,902' 17,688 4,293' 5,967 5,581 5,839 5,141 5,310 7,237 2 Foreign sales 34,856 37,948' 15,038 4,400' 5,675 5,245 4,868 4,376 4,349 6,314 3 Net purchases, or sales (-) 5,830 3,954' 2,650 -107 292 336 971 765 %1 923 4 Foreign countries 5,803 3,869' 2,593 -110 282 325 946 755 940 897 5 Europe 3,662 2,5% 2,444 -268 175 69 672 586 890 %%88 6 France 900 -143 107 -43 -30 -8 43 47 52 88 7 Germany -22 333 447 -43 47 26 138 84 137 226 8 Netherlands 42 -60 51 -62 -102 -24 25 2 8 41 9 Switzerland 288 -529 536 -144 -118 -208 226 211 223 101 10 United Kingdom 2,235 3,129 1,194 73 435 317 242 183 442 569 11 Canada 783 221' 298 115 5 72 154 90 61 147 12 Latin America and Caribbean -30 304 56 -82 142 54 39 -5 83 -23 13 Middle East1 1,140 368 -123 134 -98 9 -153 -57 -13 -53 14 Other Asia 287 246' -182 -16 22 112 210 118 -91 --221100 15 Africa 7 2 17 0 0 2 3 6 4 88 16 Other countries -46 131 84 6 35 7 22 18 6 60 17 Nonmonetary international and regional organizations 27 85 57 3 10 11 25 10 21 26 BONDS2 18 Foreign purchases 17,304' 21,631' 6,127 2,288' 2,778 2,099 2,099 1,933 1,885 2,310 19 Foreign sales 12,252' 20,480' 6,805 2,283' 2,961' 2,280 2,457 2,278 1,877 2,651 20 Net purchases, or sales (-) 5,052' 1,151' -678 5' -183' -181 -358 -345 8 -341 21 Foreign countries 4,991' 1,179' -667 40' -223' -190 -348 -343 33 -358 22 Europe 1,371' 1,848' -613 -8C 408' -236 -158 -189 -148 -276 23 France 11 295' -45 25 -17' 24 146 -21 -2 -22 24 Germany 848 2,116' -15 86 187' 11 43 -96 -35 116 25 Netherlands 70 28' 19 -10 -2 -4 -1 16 0 3 26 Switzerland 108 161 89 -24 -4 -13 44 29 62 -2 27 United Kingdom 196' -903' -377 -18C 225' -327 -461 -105 -90 -182 28 Canada -12 25 46 2 -152 10 -2 11 1155 21 2 3 9 0 L M a i t d in d le A m Ea e s r t i 1 c a and Caribbean 3,4 1 6 3 5 2 -8 1 2 6 1 0 ' -28 3 6 3 1 1 4 9 1 ' -4 -1 3 5 5 -2 2 0 8 -1 - 7 6 7 -21 2 1 3 8 11 6 11 -1 - 6 1 1 31 Other Asia 44 -23 154 -47 -30 28 -5 23 72 59 32 Africa -1 -19 -1 0 0 0 0 0 -1 0 33 Other countries -7 7 -1 5 0 0 -1 0 0 0 34 Nonmonetary international and regional organizations 61' -28 -10 -36 41 10 -10 -2 -25 17 Foreign securities 35 Stocks, net purchases, or sales (-) -247' -1,340' -993 -160 -308 -740 -272 -320 -226 -447 36 Foreign purchases 9,339' 7,170' 3,260 545 706 772 927 1,032 1,042 1,187 37 Foreign sales 9,586' 8,511' 4,254 705 1,014 1,512 1,199 1,352 1,268 1,634 38 Bonds, net purchases, or sales (-) -5,46c -6,610 -1,039 -1,140' -1,331 -458' -417 22 -278 -782 39 Foreign purchases 17,553 29,900' 9,090 3,081' 3,058 2,953' 2,962 2,881 3,526 2,683 40 Foreign sales 23,013' se.sio' 10,129 4,222 4,389 3,411 3,379 2,859 3,804 3,465 41 Net purchases, or sales (—), of stocks and bonds .... -5,707' -7,95tK -2,032 — 1,300' -1,639 -l.UHK -689 -298 -504 -1,229 42 Foreign countries -4,694' -6,778' -1,980 -809' -1,247 -1,168' -736 -272' -817 -891 43 Europe -728' -2,436' -1,598 -271 -517 -572 -555 -307 -687 -604 44 Canada -3,697 -2,364' -638 -298' -181 -7' -29 -20 -449 -169 45 Latin America and Caribbean 69 246' 575 -65 -268 -62 29 258 345 -28 46 Asia -367' -1,851' -365 241 -283 -536 -195 -192' -37 -135 47 Africa -55 -9 42 1 0 4 4 -9 21 30 48 Other countries 84' -364 4 -416 3 5 10 -2 --1100 1166 49 Nonmonetary international and regional organizations -1,012 -1,172' -52 -491' -392 -31 47 -26 312 -339 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 11998811 11998822'' Jan.- Sept/ Oct/ Nov/ Dec/ Jan/ Feb. Mar.P Mar. Holdings (end of period)1 1 Estimated total2 70,249' 85,169 82,157 83,860 84,667 85,169 85,458 86,057 88,849 2 Foreign countries2 64,565' 80,586 78,373 79,166 79,447 80,586 80,854 82,098 83,209 3 Europe2 24,012' 29,274 28,853 29,071 29,447 29,274 29,855 31,039 32,348 4 Belgium-Luxembourg 543 447 551 834 448 447 716 -87 -332 5 Germany2 11,861 14,841 14,520 14,493 14,704 14,841 15,151 16,650 17,549 6 Netherlands 1,991' 2,754 2,374 2,356 2,473 2,754 2,839 3,011 3,194 7 Sweden 643 667 635 655 687 667 668 681 656 8 Switzerland2 846 1,540 1,233 1,266 1,532 1,540 1,013 1,039 1,038 9 United Kingdom 6,709 6,549 7,358 7,237 7,099 6,549 6,721 6,941 7,478 10 Other Western Europe 1,419 2,476 2,183 2,230 2,505 2,476 2,748 2,804 2,764 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 514 602 428 482 552 602 649 639 724 13 Latin America and Caribbean 736 1,076 1,204 1,086 1,231 1,076 1,067 1,050 951 14 Venezuela 286 188 221 204 172 188 190 74 77 15 Other Latin America and Caribbean 319 656 771 657 759 656 720 792 690 16 Netherlands Antilles 131 232 211 225 300 232 156 185 184 17 Asia 38,671 49,502 47,668 48,288 48,079 49,502 49,146 49,256 49,076 18 Japan 10,780 11,578 11,410 11,396 11,314 11,578 11,655 11,707 11,736 19 Africa 631 77 178 178 77 77 77 80 80 20 All other 2 55 43 61 62 55 60 34 31 21 Nonmonetary international and regional organizations 5,684' 4,583 3,784 4,694 5,220 4,583 4,604 3,959 5,640 22 International 5,638 4,186 3,558 4,417 4,939 4,186 4,165 3,405 4,966 23 Latin American regional 1 6 -4 -4 -4 6 6 6 6 Transactions (net purchases, or sales ( -) during period) 24 Total2 12,700' 14,920 3,680 1,670 1,703 808 502 289 599 2,792 25 Foreign countries2 11,604' 16,021 2,623 1,627 792 281 1,139 268 1,245 1,111 26 Official institutions 11,73c 14,529 2,707 1,526 641 231 1,866 20 1,567 1,119 27 Other foreign2 -127 1,487 -84 101 151 50 -727 248 -323 -9 28 Nonmonetary international and regional organizations 1,096' -1,096 1,057 43 910 527 -637 21 -645 1,681 MEMO: Oil-exporting countries 29 Middle East3 11,156 7,534 -625 173 209 -320 303 121 -233 -514 30 Africa4 -289 -552 0 -125 0 -100 0 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 Apr. 30, 1983 Rate on Apr. 30, 1983 Rate on Apr. 30, 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. 10.0 Apr. 1983 Germany, Fed. Rep. of 4.0 Mar. 1983 Switzerland 4.0 Mar. 1983 Brazil... 49.0 Mar. 1981 Italy 17.0 Apr. 1983 United Kingdom2. Canada.. 9.37 Apr. 1983 Japan 5.5 Dec. 1981 Venezuela Sept. 1982 Denmark 7.5 Apr. 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 • May 1983 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1982 1983 CCoouunnttrryy,, oorr ttyyppee 11998800 11998811 11998822 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 Eurodollars 14.00 16.79 12.24 10.43 9.77 9.47 8.97 9.14 9.25 9.23 2 United Kingdom 16.59 13.86 12.21 9.74 9.30 10.55 11.04 11.29 10.92 10.21 3 Canada 13.12 18.84 14.38 12.14 11.08 10.56 9.87 9.69 9.36 9.39 4 Germany 9.45 12.05 8.81 7.55 7.24 6.54 5.78 5.79 5.40 5.16 5 Switzerland 5.79 9.15 5.04 3.66 3.76 3.71 2.78 2.95 3.64 4.20 6 Netherlands 10.60 11.52 8.26 7.09 6.36 5.66 4.97 4.82 4.34 5.19 7 France 12.18 15.28 14.61 13.51 12.98 12.70 12.55 12.88 12.64 12.12 8 Italy 17.50 19.98 19.99 18.57 19.05 19.20 18.95 19.04 19.19 18.20 9 Belgium 14.06 15.28 14.10 12.75 12.50 12.25 12.25 12.25 13.32 11.05 10 Japan 11.45 7.58 6.84 6.97 6.98 6.96 6.47 6.64 6.78 6.69 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 Nov. Dec. Jan. Feb. Mar. Apr. 1 Argentina/peso n.a. n.a. 20985.00 39200.00 43883.91 48916.66 50239.47 62386.95 66868.56 2 Australia/dollar1 114.00 114.95 101.65 94.27 96.82 98.26 96.62 88.39 86.76 3 Austria/schilling 12.945 15.948 17.060 17.947 16.994 16.783 17.076 16.940 17.176 4 Belgium/franc 29.237 37.194 45.780 49.600 47.493 46.888 47.739 47.519 48.577 5 Brazil/cruzeiro n.a. 92.374 179.22 228.51 244.63 262.30 309.01 401.30 434.77 6 Canada/dollar 1.1693 1.1990 1.2344 1.2262 1.2385 1.2287 1.2277 1.2263 1.2325 7 Chile/peso n.a. n.a. 51.118 69.050 72.630 74.257 76.863 76.378 76.028 8 China, P.R./yuan n.a. 1.7031 1.8978 2.0002 1.9445 1.9238 1.9653 1.9834 1.9938 9 Colombia/peso n.a. n.a. 64.071 68.168 69.526 70.762 71.751 73.179 74.751 10 Denmark/krone 5.6345 7.1350 8.3443 8.9595 8.5275 8.4171 8.5811 8.6223 8.6663 11 Finland/markka 3.7206 4.3128 4.8086 5.5263 5.3425 5.3120 5.3907 5.4266 5.4342 12 France/franc 4.2250 5.4396 6.5793 7.2152 6.8548 6.7725 6.8855 7.0204 7.3148 13 Germany/deutsche mark 1.8175 2.2631 2.428 2.5543 2.4193 2.3893 2.4280 2.4110 2.4397 14 Greece/drachma n.a. n.a. 66.872 72.889 70.788 80.761 83.621 83.897 84.037 15 Hong Kong/dollar n.a. 5.5678 6.0697 6.6724 6.5417 6.5252 6.6060 6.6536 6.7868 16 India/rupee 7.8866 8.6807 9.4846 9.7968 9.6926 9.7938 9.9184 9.9652 9.9824 17 IndonesiaMipiah n.a. n.a. 660.43 680.92 687.95 694.62 700.01 714.72 970.81 18 Iran/rial n.a. 79.324 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 19 Ireland/pound1 205.77 161.32 142.05 132.91 137.69 139.16 136.81 134.79 129.53 20 Israel/shekel n.a. n.a. 24.407 31.344 32.966 34.863 36.986 38.867 40.951 21 Italyflira 856.20 1138.60 1354.00 1468.84 1398.74 1374.71 1399.78 1429.72 1451.88 77 Japan/yen 226.63 220.63 249.06 264.09 241.94 232.73 236.12 238.25 237.75 23 Malaysia/ringgit 2.1767 2.3048 2.3395 2.3647 2.3529 2.2822 2.2757 2.2898 2.3063 24 Mexico/peso 22.968 24.547 72.990 130.61 147.35 150.75 157.81 161.78 153.77 25 Netherlands/guilder 1.9875 2.4998 2.6719 2.7861 2.6698 2.6310 2.6779 2.6834 2.7486 26 New Zealand/dollar1 97.34 86.848 75.101 71.092 72.569 72.921 71.895 66.642 65.726 27 Norway/krone 4.9381 5.7430 6.4567 7.2397 7.0346 7.0447 7.1171 7.1852 7.1460 28 Peru/sol n.a. n.a. 694.59 878.66 942.47 1019.54 1087.43 1160.19 1284.37 29 Philippines/peso n.a. 7.8113 8.5324 8.8733 9.0546 9.2632 9.4488 9.5896 9.8449 30 Portugal/escudo 50.082 61.739 80.101 91.911 92.685 94.548 93.771 95.867 99.055 31 Singapore/dollar n.a. 2.1053 2.1406 2.2123 2.1522 2.0768 2.0758 2.0854 2.1010 32. South Africa/rand1 128.54 114.77 92.297 87.77 92.03 93.82 91.04 91.64 91.42 33 South Korea/won n.a. n.a. 731.93 745.60 746.36 749.80 752.19 757.94 765.29 34 Spain/peseta 71.758 92.396 110.09 119.09 126.125 126.844 129.886 133.498 135.99 35 Sri Lanka/rupee 16.167 18.967 20.756 21.009 21.166 21.378 22.355 22.982 22.971 36 Sweden/krona 4.2309 5.0659 6.2838 7.5095 7.3555 7.3227 7.4385 7.4882 7.4941 37 Switzerland/franc 1.6772 1.9674 2.0327 2.1931 2.0588 1.9679 2.0180 2.0663 2.0587 38 Thailand/baht n.a. 21.731 23.014 23.000 23.000 23.000 22.999 22.991 22.990 39 United Kingdom/pound1 232.58 202.43 174.80 163.21 161.60 157.56 153.29 149.00 153.61 40 Venezuela/bolivar n.a. 4.2781 4.2981 4.2996 4.2971 4.2973 4.3101 7.9500 9.0429 MEMO: United States/dollar2 87.39 102.94 116.57 124.27 119.22 117.73 119.70 120.71 121.82 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 Issue Page 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH PRESTON MARTIN, Vice Chairman J. CHARLES PARTEE OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL POLICY JOSEPH R. COYNE, Assistant to the Board DONALD J. WINN, Assistant to the Board STEPHEN H. AXILROD, Staff Director FRANK O'BRIEN, JR., Deputy Assistant to the Board EDWARD C. ETTIN, Deputy Staff Director ANTHONY F. COLE, Special Assistant to the Board 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 OFFICE OF THE SECRETARY JOE M. CLEAVER, Assistant Director ROBERT M. FISHER, Assistant Director WILLIAM W. WILES, Secretary SUSAN J. LEPPER, Assistant Director BARBARA R. LOWREY, Associate Secretary THOMAS D. SIMPSON, Assistant Director JAMES MCAFEE, Associate Secretary LAWRENCE SLIFMAN, Assistant Director STEPHEN P. TAYLOR, Assistant Director PETER A. TINSLEY, Assistant Director DIVISION OF CONSUMER LEVON H. GARABEDIAN, Assistant Director (Administration) AND COMMUNITY AFFAIRS DIVISION OF INTERNATIONAL FINANCE GRIFFITH L. GARWOOD, Director JERAULD C. KLUCKMAN, Associate Director GLENN E. LONEY, Assistant Director EDWIN M. TRUMAN, Director ROBERT F. GEMMILL, Senior Associate Director DOLORES S. SMITH, Assistant Director CHARLES J. SIEGMAN, Senior Associate Director LARRY J. PROMISEL, Associate Director DALE W. HENDERSON, Deputy Associate Director DIVISION OF BANKING SAMUEL PIZER, Staff Adviser SUPERVISION AND REGULATION MICHAEL P. DOOLEY, Assistant Director 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

A71 and Official Staff NANCY H. TEETERS LYLE E. GRAMLEY EMMETT J. RICE OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES S. DAVID FROST, Staff Director THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director JOSEPH W. DANIELS, SR., Equal Employment Opportunity Programs Adviser DIVISION OF DATA PROCESSING DIVISION OF FEDERAL RESERVE CHARLES L. HAMPTON, Director BANK OPERATIONS BRUCE M. BEARDSLEY, Deputy Director GLENN L. CUMMINS, Assistant Director CLYDE H. FARNSWORTH, JR., Director NEAL H. HILLERMAN, Assistant Director LORIN S. MEEDER, Associate Director ELIZABETH A. JOHNSON, Assistant Director DAVID L. ROBINSON, Associate Director WILLIAM C. SCHNEIDER, JR., Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director ROBERT J. ZEMEL, Assistant Director WALTER ALTHAUSEN, Assistant Director CHARLES W. BENNETT, Assistant Director ANNE M. DEBEER, Assistant Director DIVISION OF PERSONNEL JACK DENNIS, JR., Assistant Director RICHARD B. GREEN, Assistant Director DAVID L. SHANNON, Director EARL G. HAMILTON, Assistant Director JOHN R. WEIS, Assistant Director ELLIOTT C. MCENTEE, 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

72 Federal Reserve Bulletin • May 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

A73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Robert P. Henderson Frank E. Morris Thomas I. Atkins James A. Mcintosh NEW YORK* 10045 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. Fishbume Culpeper Communications and Records Center 22701 Albert D. Tinkelenberg ATLANTA 30301 William A. Fickling, Jr. William F. Ford John H. Weitnauer, Jr. Robert P. Forrestal Birmingham 35283 Samuel R. Hill, Jr. Fred R. Hen- 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 Gene 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

A74 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- Parts 2 and 3, $1.00 each; 10 or more to one address, $.85 TIONS. 1974. 125 pp. each. ANNUAL REPORT. OPEN MARKET POLICIES AND OPERATING PROCEDURES— FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to $2.00 each in the United States, its possessions, Canada, one address, $1.75 each. and Mexico; 10 or more of same issue to one address, REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- $18.00 per year or $1.75 each. Elsewhere, $24.00 per NISM. Vol. I. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. year or $2.50 each. 1972. 220 pp. Each volume $3.00; 10 or more to one BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint address, $2.50 each. of Part I only) 1976. 682 pp. $5.00. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- BANKING AND MONETARY STATISTICS, 1941-1970. 1976. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 1,168 pp. $15.00. pp. Cloth ed. $5.00 each; 10 or more to one address, ANNUAL STATISTICAL DIGEST $4.50 each. Paper ed. $4.00 each; 10 or more to one 1971-75. 1976. 339 pp. $ 5.00 per copy. address, $3.60 each. 1972-76. 1977. 377 pp. $10.00 per copy. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1973-77. 1978. 361 pp. $12.00 per copy. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1974-78. 1980. 305 pp. $10.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1970-79. 1981. 587 pp. $20.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1980. 1981. 241 pp. $10.00 per copy. 1973; 271 pp. $3.50 each; 10 or more to one address, 1981. 1982. 239 pp. $ 6.50 per copy. $3.00 each. FEDERAL RESERVE CHART BOOK. Issued four times a year in IMPROVING THE MONETARY AGGREGATES: REPORT OF THE February, May, August, and November. Subscription ADVISORY COMMITTEE ON MONETARY STATISTICS. includes one issue of Historical Chart Book. $7.00 per 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 year or $2.00 each in the United States, its possessions, each. Canada, and Mexico. Elsewhere, $10.00 per year or ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— $3.00 each. Regulation Z) Vol. I (Regular Transactions). 1969. 100 HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each tion to the Federal Reserve Chart Book includes one volume $1.00; 10 or more of same volume to one issue. $1.25 each in the United States, its possessions, address, $.85 each. Canada, and Mexico; 10 or more to one address, $1.00 FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY each. Elsewhere, $1.50 each. UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- address, $1.50 each. RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in THE BANK HOLDING COMPANY MOVEMENT TO 1978: A the United States, its possessions, Canada, and Mexico; COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to 10 or more of same issue to one address, $13.50 per one address, $2.25 each. year or $.35 each. Elsewhere, $20.00 per year or $.50 IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. each. 1978. 170 pp. $4.00 each; 10 or more to one address, THE FEDERAL RESERVE ACT, as amended through December $3.75 each. 1976, with an appendix containing provisions of certain 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. other statutes affecting the Federal Reserve System. 307 FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 pp. $2.50. each; 10 or more to one address, $1.50 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; ERAL RESERVE SYSTEM. 10 or more to one address, $1.25 each. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. $13.50 each. 48 pp. $.25 each; 10 or more to one address, $.20 each. NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- SERVE STAFF STUDY, 1981. ERNMENT SECURITIES MARKET; STAFF STUDIES—PART SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL each. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp. ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 STAFF STUDIES. Summaries Only Printed in the FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated 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 Monetary Policy and Reserve Requirements Handbook. copies of the full text or to be added to the mailing list for $60.00 per year. the series 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- CONSUMER EDUCATION PAMPHLETS DATED SUMMARY AND EVALUATION, by Stephen A. 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 Consumer Handbook to Credit Protection Laws REDLINING: RESEARCH AND FEDERAL LEGISLATIVE RE- SPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. The Equal Credit Opportunity Act and . . . Age The Equal Credit Opportunity Act and . . . Credit Rights in BANK CAPITAL TRENDS AND FINANCING, by Samuel H. Talley. Feb. 1983. 19 pp. Housing The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit The Equal Credit Opportunity Act and . . . Women Fair Credit Billing Federal Reserve Glossary REPRINTS Guide to Federal Reserve Regulations Most of the articles reprinted do not exceed 12 pages. How to File A Consumer Credit Complaint If You Borrow To Buy Stock Perspectives on Personal Saving. 8/80. If You Use A Credit Card Federal Reserve and the Payments System: Upgrading Elec- Series on the Structure of the Federal Reserve System tronic Capabilities for the 1980s. 2/81. The Board of Governors of the Federal Reserve System Survey of Finance Companies, 1980. 5/81. The Federal Open Market Committee Bank Lending in Developing Countries. 9/81. Federal Reserve Bank Board of Directors The Commercial Paper Market since the Mid-Seventies. 6/82. Federal Reserve Banks Applying the Theory of Probable Future Competition. 9/82. Monetary Control Act of 1980 International Banking Facilities. 10/82. Organization and Advisory Committees U.S. International Transactions in 1982. 4/83. 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

A76 Index to Statistical Tables References are to pages A3 through A68 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers, 11, 26, 28 Demand deposits—Continued Agricultural loans, commercial banks, 19, 20, 21, 27 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 25 Banks, by classes, 18, 19-22 Turnover, 15 Domestic finance companies, 39 Depository institutions Federal Reserve Banks, 12 Reserve requirements, 8 Foreign banks, U.S. branches and agencies, 23 Reserves and related items, 3, 4, 5, 13 Nonfinancial corporations, 38 Deposits (See also specific types) Savings institutions, 30 Banks, by classes, 3, 18, 19-22, 30 Automobiles Federal Reserve Banks, 4, 12 Consumer installment credit, 42, 43 Turnover, 15 Production, 48, 49 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) BANKERS balances, 18, 19-21 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 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 ownership of gross debt, 33 Federal Reserve Banks, 12 Receipts and outlays, 31, 32 Central banks, 67 Treasury financing of surplus, or deficit, 31 Certificates of deposit, 22, 28 Treasury operating balance, 31 Commercial and industrial loans Federal Financing Bank, 31, 35 Commercial banks, 16, 18, 23, 27 Federal funds, 3, 6, 19, 20, 21, 28, 31 Weekly reporting banks, 19-23, 24 Federal Home Loan Banks, 35 Commercial banks Federal Home Loan Mortgage Corporation, 35, 40, 41 Assets and liabilities, 18, 19-22 Federal Housing Administration, 35, 40, 41 Business loans, 27 Federal Intermediate Credit Banks, 35 Commercial and industrial loans, 16, 18, 23, 24, 27 Federal Land Banks, 35, 41 Consumer loans held, by type, 42, 43 Federal National Mortgage Association, 35, 40, 41 Loans sold outright, 22 Federal Reserve Banks Nondeposit funds, 17 Condition statement, 12 Number, by classes, 18 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 41 U.S. government securities held, 4, 12, 13, 33 Time and savings deposits, 3 Federal Reserve credit, 4, 5, 12, 13 Commercial paper, 3, 26, 28, 39 Federal Reserve notes, 12 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 35 Construction, 46, 50 Finance companies Consumer installment credit, 42, 43 Assets and liabilities, 39 Consumer prices, 46, 51 Business credit, 39 Consumption expenditures, 52, 53 Loans, 19, 20, 21, 42, 43 Corporations Paper, 26, 28 Profits and their distribution, 37 Financial institutions Security issues, 36, 66 Loans to, 19, 20, 21 Cost of living (See Consumer prices) Selected assets and liabilities, 30 Credit unions, 30, 42, 43 Float, 4 (See also Thrift institutions) Flow of funds, 44, 45 Currency and coin, 5, 18 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 14 agencies, 23 Customer credit, stock market, 29 Foreign currency operations, 12 Foreign deposits in U.S. banks, 4, 12, 19, 20, 21 DEBITS to deposit accounts, 15 Foreign exchange rates, 68 Debt (See specific types of debt or securities) Foreign trade, 55 Demand deposits Foreigners Adjusted, commercial banks, 15 Claims on, 56, 58, 61, 62, 63, 65 Banks, by classes, 18, 19-22 Liabilities to, 22, 55, 56-60, 64, 66, 67 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories • Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis