Federal Reserve Bulletin, 1983-12

VOLUME 69 • NUMBER 12 • DECEMBER 1983 FEDERAL RESERVE B U L L E T IN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • Michael Bradfield • 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 885 PROFITABILITY OF INSURED on reserve positions and that operations COMMERCIAL BANKS IN THE FIRST should be directed toward maintaining the HALF OF 1983 slightly reduced reserve restraint that had been sought in recent weeks. The members The profitability of insured commercial anticipated that such a policy course would banks held up relatively well in the face of be associated with growth of both M2 and important changes in banking in the first M3 at an annual rate of around SV2 percent half of 1983. for the period from September to December; this growth rate allowed for a minor 893 TREAS URY AND FEDERAL RESER VE impact from the October 1 deregulation of FOREIGN EXCHANGE OPERATIONS: time deposits on the growth of the broader INTERIM REPORT aggregates in the fourth quarter. The mem- At the end of October the dollar was little bers also agreed that the need for greater or changed against most major currencies lesser restraint on reserve conditions from the levels at the end of July. should be evaluated against the background of developments relating to the strength of 896 INDUSTRIAL PRODUCTION the economic recovery, the outlook for inflation, and conditions in domestic and Output rose about 0.8 percent in Noveminternational financial markets. Depending ber. upon such developments, lesser restraint would be acceptable in the event of a signif- 898 ANNOUNCEMENTS icant shortfall in the growth of the aggre- Amendment to Regulation D. gates over the weeks ahead, while somewhat greater restraint would be acceptable Capital adequacy guidelines reaffirmed. in the context of more rapid growth in the Participations in bankers acceptances clari- aggregates. The Committee anticipated that fied. its fourth-quarter objectives for the broader aggregates would be consistent with Ml Changes in boundaries of two Federal Regrowth at an annual rate of around 7 percent serve Districts. from September to December, and that Proposed amendment to Regulation Y; up- expansion in total domestic nonfinancial date to official staflF commentary on Regula- debt would remain within the range of 8V2 to tion Z; extension of comment period on 1IV2 percent established for the year. It was proposed private sector adjustment factor. agreed that the intermeeting range for the federal funds rate, which provides a mecha- Admission of five state banks to member- nism for initiating consultation of the Comship in the Federal Reserve System. mittee, would remain at 6 to 10 percent. 901 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE 907 LEGAL DEVELOPMENTS At its meeting on October 4, 1983, the Amendments to Regulation L; various bank members agreed that no change should be holding company and bank merger orders; made at this time in the degree of pressure and pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ai FINANCIAL AND BUSINESS STATISTICS A82 FEDERAL RESERVE BOARD PUBLICATIONS A3 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics A87 INDEX TO STATISTICAL TABLES A52 International Statistics A89 INDEX TO VOLUME 69 A67 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL A104 FEDERAL RESERVE BANKS, TABLES BRANCHES, AND OFFICES A78 BOARD OF GOVERNORS AND STAFF A 105 MAP OF FEDERAL RESERVE SYSTEM A80 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profitability of Insured Commercial Banks in the First Half of 1983 This article was prepared by Eugenie Mallinson experienced credit-quality problems so severe of the Board's Division of Research and Statis- that subsequently one failed and the other was tics. Alan L. Boyce and Nancy Bow en provided acquired by another banking organization. Furdata processing support. thermore, the financial condition of a number of The article presents semiannual data to up- foreign borrowers remained unsettled, requiring date some of the tables that appeared in ' 'Profit- special attention from commercial banks, the ability of Insured Commercial Banks in 1982," International Monetary Fund, and the central which was published in the BULLETIN for July banks of major industrial nations. 1983. That article is part of an ongoing series In the face of these developments the profitthat appears each year in the BULLETIN in the ability of insured commercial banks in the United third quarter. States on the whole held up relatively well. Buoyed by an average net interest margin greater The first half of 1983 was a period of important than that in the first half of 1982, average rates of change for commercial banks. Continuing the return on both assets and equity for all banks deregulation mandated by the Depository Insti- were virtually identical in the first half of 1983 to tutions Deregulation and Monetary Control Act levels prevailing during the first half of the previof 1980, federal regulators permitted banks, as ous year. These returns also were similar to the well as other depository institutions, to offer average over the 1970-79 period, as shown in transaction accounts not subject to interest rate ceilings—the first accounts to pay market rates 1. Rates of return, all insured commercial banks, of interest since the early 1930s. Also, money 1970-83 market deposit accounts (MMDAs), created in Percent December 1982 under the Garn-St Germain Annual First half-year, at Depository Institutions Act of 1982, continued to MMeeaassuurree ooff rreettuurrnn aanndd ssiizzee average annual rates be phenomenally successful. These new accounts ooff bbaannkk11 1970-79 1980 1981 1982 1983 permitted institutions to regain a sizable volume of deposits that had been lost in recent years to Return on assets All banks2 .76 .82 .81 .75 .75 money market mutual funds and market instru- Less than $100 million ... .98 1.27 1.36 1.29 1.18 $100 million to $1 billion . .86 .95 .99 .92 .95 ments and dramatically altered the funding pat- 13 money center .57 .59 .49 .46 .54 terns of some banks. Although short-term mar- Others, $1 billion or more .65 .66 .69 .61 .59 ket interest rates rose somewhat from lows Return on equity All banks3 12.5 14.1 13.9 12.7 12.6 attained in the fall of 1982, they remained well Less than $100 million ... 12.7 15.2 15.8 14.9 13.7 below the elevated levels reached during the first $100 million to $1 billion . 12.4 13.5 13.7 12.8 13.3 13 money center 12.7 15.2 12.6 11.5 13.0 half of that year. The economy, in the aggregate, Others, $1 billion or more 12.0 12.6 13.2 11.5 11.0 proved stronger than anticipated in the first half 1. Size categories are based on end-of-period consolidated assets of of 1983. Even so, banks saw a generally softer each bank. 2. Net income as a percent of average assets. Average assets are demand for business loans, which in the past fully consolidated and net of loan-loss reserves; averages are based on have been among the highest-yielding assets in amounts outstanding at the beginning of the year and end of the accounting period. their portfolios. Credit problems intensified in 3. Net income (annualized) as a percent of average total equity energy and energy-related businesses as the re- capital. Total equity capital is fully consolidated; averages are based cession lingered in that area. Two large banks on amounts outstanding at the beginning of the year and the end of the accounting period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 Federal Reserve Bulletin • December 1983 table 1. Although these measures have declined 2. Net interest margin as a percent of average from the peaks reached in 1979, they are none- assets, all insured commercial banks, 1980-831 theless above their most recent lows, observed in First half-year, at annual the recovery from the 1973-75 recession. Howrates SSiizzee ooff bbaannkk22 ever, banks of different sizes had different expe- 1980 1981 j 1982 1983 riences: the smaller banks tended to show some erosion in their profitability from a year earlier All banks 33..4455 33..4444 33..5533 33..5588 Less than $100 million 44..7755 44..9999 55..0011 44..9955 but continued to outperform larger banks, whose $100 million to $1 billion 44..3300 44..4499 44..4499 44..4499 profitability showed mixed changes. $1 billion or more 13 money center 22..1199 11..9955 22..1188 22..3333 The number of banks recording negative net Others 33..3344 33..3322 33..3366 33..4400 income increased in all size groups and, as would 1. Net interest margin is gross interest income adjusted for taxable be expected in a period of significant change, equivalence minus gross interest expense. Taxable equivalence is calculated as follows: for each bank with before-tax profits greater great diversity in earnings appeared among than zero, income from state and local obligations was increased by banks. The difference between the highest and [1/(1 - t) - 1] times the lesser of profits before tax or interest earned on state and local obligations (t is the marginal federal income tax the lowest return on equity widened considerarate). This adjustment approximates the equivalent pretax return on bly in all size categories, and measures of disper- state and local obligations. 2. Size categories are based on end-of-period consolidated assets of sion indicated that in the first half of 1983, these each bank. ratios for individual institutions among banks with the "best" performance and banks with the "worst" performance in each size class were rely heavily on overnight loans and on deposits less uniform than they were in the first half of with 30- to 90-day maturities for a large percent- 1982. Increases in loan-loss provisions exerted age of their near-term funding. Thus their fundsignificant pressure on earnings of many banks, ing costs could adjust more fully than returns on and banks in all size groups have increased their assets to market rates that were much lower than provisions from a year ago; past-due loans rose those that prevailed in the first half of 1982, and over the year as well. their net interest margins in fact widened from the year-earlier period. In contrast, the liability structure of smaller banks left them less well NET INTEREST MARGINS positioned to capitalize on lower interest rates and the introduction of MMDAs. Small banks The net interest margin for all insured banks have depended relatively heavily in the last sevedged up in the first half of 1983 compared with a eral years on longer-term time deposits paying year earlier. This measure, shown in table 2 for market rates of interest, and therefore did not banks of various sizes, represents the average realize the benefit of lower interest rates until a difference between interest income adjusted for sizable portion of those deposits had matured taxable equivalence and interest expense— and were redeposited at lower rates some scaled by average assets. The overall resilience months into 1983. Furthermore, small banks had of this interest margin suggests that, on the a larger proportion of relatively inexpensive dewhole, banks have successfully handled the si- posits subject to interest rate ceilings under multaneous developments of rapidly falling rates Regulation Q. The advent of MMDAs likely earned on loans and other assets and further boosted the funding costs of small banks as deregulation. depositors shifted funds from passbook savings The interplay of maturity structures between accounts to MMDAs to obtain greater returns. the assets and liabilities of banks largely deter- To offset increases in their funding costs related mined how their net interest margins fared during to deregulation, small banks have been tying an this period. Large banks, in general, have a close increasing proportion of their assets to floating match between the maturities of their earning rates. Under these influences, their portfolio yields declined more rapidly then did their overassets and liabilities, with roughly half of each all funding costs, and margins eroded from the part of the balance sheet characterized as sensilevels of a year earlier. tive to interest rates. Furthermore, large banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profitability of Insured Commercial Banks 887 3. Rates of return on fully consolidated portfolios, wider spreads, in the first half of 1983. The loan all insured commercial banks, 1980-831 portfolios of smaller banks have a larger propor- Percent tion of consumer loans and loans secured by real estate, which tend to have longer terms and less First half-year, at annual aann TT dd yy ss pp ii ee zz ee oo ff oo ff aa ss bb ss aa ee nn tt kk22 rates volatile rates than do the types of loans held by the larger banks. 1980 1981 1982 1983 Rates earned on virtually all types of securities • .:::•:.-..:. Loans All banks 14.17 16.05 15.85 12.66 held by banks also declined over the year from Less than $100 million 12.28 14.10 15.26 13.68 their record, or near-record, levels. However, $100 million to $1 billion 13.17 14.85 15.10 12.83 $1 billion or more the drop in yields on securities was not so severe 13 money center 15.75 17.58 16.62 12.48 Others 14.54 16.43 15.84 12.26 as that on loans, in part because of the relatively longer maturity of securities held in banks' port- Loans, net of loan-loss provisions folios. Faced with lackluster demand for loans in All banks 13.71 15.58 15.27 11.86 Less than $100 million 11.90 13.69 14.76 12.82 the first half of this year and a surge in core $100 million to $1 billion 12.71 14.39 14.56 12.09 $1 billion or more deposits associated with the introduction of 13 money center 15.38 17.20 16.05 11.84 MMDAs, banks boosted their holdings of securi- Others 13.90 15.31 15.16 11.31 ties from 16.4 percent of assets in the first half of All interest-earning assets3 All banks 13.38 15.15 15.18 12.32 1982 to 17.7 percent in the first half of 1983. Less than $100 million 11.70 13,44 14.46 13.16 Despite the relatively greater weight of securities $100 million to $1 billion 12.23 13.30 14.34 12.45 $1 billion or more in banks' portfolios, generally lower rates on 13 money center 15.05 16.30 16.20 12.22 Others 13.72 15.58 15.21 11.86 1. Calculated as described in the "Technical Note," FEDERAL 4. Rates paid for fully consolidated liabilities, all RESERVE BULLETIN, vol. 65 (September 1979), p. 704. insured commercial banks, 1980-83' 2. Size categories are based on end-of-period consolidated assets of each bank. Percent 3. Includes total securities not separately shown, gross loans, and other earning assets not separately shown. Rates of return on securi- First half-year, at annual ties are at taxable equivalent; see table 2, note 1. rates TTyyppee ooff lliiaabbiilliittyy aanndd ssiizzee ooff bbaannkk22 1980 1981 1982 1983 The imputed rate earned on banks' loan port- Savings and small time deposits3 folios (before loan-loss provisions), at 12.66 per- All banks 8.21 9.47 10.16 8.58 Less than $100 million 8.19 9.84 10.71 8.92 cent in the first half of 1983, had declined more $100 million to $1 billion 7.99 9.44 10.10 8.60 $1 billion or more than 3 percentage points from the first half of 13 money center 10.25 9.14 9.58 8.01 1982 (table 3). This decline compares with the fall Others 7.71 9.10 9.75 8.45 in money market interest rates of about 5 per- Managed liabilities4 All banks 14.42 16.74 15.20 9.68 centage points over the period. The 13 money Less than $100 million 12.87 14.85 14.13 9.04 $100 million to $1 billion 14.01 16.15 14.62 8.74 center banks, a larger proportion of whose loans $1 billion or more are priced in relation to money market yields, 13 money center 14.39 16.89 15.54 10.44 Others 14.90 17.02 15.14 9.08 faced the steepest decline—about 400 basis All interest-bearing liabilities5 points; the smallest banks earned about 150 basis All banks 11.63 13.56 12.98 9.13 points less on their loans than they had a year Less than $100 million 8.93 10.65 11.30 8.93 $100 million to $1 billion 9.97 11.62 11.61 8.63 earlier. Pervasive increases in loan-loss reserves $1 billion or more 13 money center 13.85 16.02 14.75 9.95 reduced more sharply the rates of return net of Others 12.09 13.99 13.05 8.79 loss provisions for banks in all size categories. 1. Calculated as described in the "Technical Note," FEDERAL For the first time in recent years the yield on loan RESERVE BULLETIN, vol. 65 (September 1979), p. 704. portfolios measured in this way was lower than 2. Size categories are based on end-of-period consolidated assets of each bank. the overall yield on banks' security investments. 3. In 1983 includes money market deposit accounts. The imputed rate earned on the loan portfolios 4. Includes large negotiable certificates of deposit, gross federal funds purchased, repurchase agreements, and other liabilities for of the smallest banks overtook the return on borrowed money. loans of banks in other size classes in the second 5. Includes savings and small time deposits and managed liabilities shown separately above, and subordinated notes and debentures, not half of 1982 and remained ahead, with generally separately shown. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

888 Federal Reserve Bulletin • December 1983 5. Income and expense as a percent of average assets, all insured commercial banks, 1980-831 First half-year, at annual rates IInnccoommee oorr eexxppeennssee aanndd ssiizzee ooff bbaannkk 1980 1981 1982 1983 Interest income All banks3 10.48 11.91 12.12 9.84 Less than $100 million 10.14 11.70 12.52 11.15 $100 million to $1 billion 10.19 11.61 12.06 10.39 $1 billion or more 13 money center 10.92 12.29 12.31 9.28 Others 10.45 11.83 11.77 9.33 Interest expense All banks 7.04 8.47 8.59 6.27 Less than $100 million 5.38 6.70 7.51 6.20 $100 million to $1 billion 5.89 7.12 7.56 5.90 $1 billion or more 13 money center 8.74 10.33 10.13 6.96 Others 7.11 8.52 8.40 5.93 Net interest margin3 All banks 3.45 3.44 3.53 3.58 Less than $100 million 4.75 4.99 5.01 4.95 $100 million to $1 billion 4.30 4.49 4.49 4.49 $1 billion or more 13 money center 2.18 1.95 2.18 2.33 Others 3.34 3.32 3.36 3.40 Noninterest income All banks .90 .98 1.00 1.10 Less than $100 million .63 .70 .67 .71 $100 million to $1 billion .82 .87 .89 .93 $1 billion or more 13 money center .96 1.07 1.10 1.23 Others 1.06 1.12 1.17 1.28 Loan-loss provision All banks .23 .23 .29 .40 Less than $100 million .19 .20 .23 .39 $100 million to $1 billion .23 .22 .25 .35 $1 billion or more 13 money center .18 .18 .30 .35 Others .31 .29 .33 .47 For notes, see opposite page. other earning assets lowered the return on earn- on MMDAs exceeded that paid on three-month ing assets of all banks to 12.32 percent in the first certificates of deposit (CDs) by about 190 basis half of 1983—the lowest rate since the second points. By February, however, MMDA rates on half of 1979. average were below those of three-month CDs, Declining interest rates also greatly reduced and the rate advantage of CDs relative to the interest expense of commercial banks during MMDAs has widened since then. Having accuthe first half of 1983. For all banks, interest mulated about $213 billion in MMDAs by midexpense averaged 6.27 percent of average assets, 1983, banks were able to reduce the higher-cost compared with 8.59 percent a year before. As CDs outstanding about $54 billion. The proportable 4 shows, the implicit rate paid on all tion of liabilities held as other managed liabilinterest-bearing liabilities for all banks declined ities—federal funds purchased and other liabilto 9.13 percent in the first half of 1983 from 12.98 ities for borrowed money—in the first half of percent a year earlier. While banks of all sizes 1983 approximated the levels of a year before. " posted significant declines, the drop was larg- As a result of deregulation and the concomiest—nearly 5 percentage points—at the 13 mon- tant introduction of new accounts, at midyear ey center banks. The introduction of MMDAs in 1983 small time and savings deposits (including December 1982 and of Super NOWs (negotiable MMDAs) accounted for 35.4 percent of the colorder of withdrawal accounts) in January 1983 lective liabilities and capital of all banks—the brought large deposit inflows to commercial highest proportion since reporting in its current banks of all sizes. Initially, the average rate paid form began in 1976. In the recent past, these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profitability of Insured Commercial Banks 889 5. Continued First half-year, at annual rates IInnccoommee oorr eexxppeennssee aanndd ssiizzee ooff bbaannkk 1980 1981 1982 1983 Other noninterest expense 2.61 2.70 2.89 2.93 Less than $100 million 3.04 3.15 3.21 3.23 $100 million to $1 billion 33..2200 33..3333 33..4433 33..4411 $1 billion or more 13 money center 1.81 1.85 2.16 2.21 Others 22..7777 22..8888 33..0077 33..1111 Profits before tax 1.15 1.12 .97 .97 1.63 1.79 1.65 1.46 $100 million to $1 billion 11..1188 1.27 1.14 1.11 $1 billion or more 13 money center 1.01 .83 .67 .85 Others ..9966 ..9900 ..7766 ..7755 Gross gains or losses on securities4 --..0022 -.03 -.04 .01 -.03 -.03 .03 $100 million to $1 billion --..0011 --..0044 --..0055 ..0022 $1 billion or more -.01 -.01 -.02 Others --..0066 --..0044 --..0055 Net income5 All banks .82 .81 .75 .75 Less than $100 million 1.27 1.36 1.29 1.18 $100 million to $1 billion .95 .99 .92 .95 $1 billion or more 13 money center .59 .49 .46 .54 Others .66 .69 .61 .59 MEMO: Net income as a percent of average equity capital All banks 14.1 13.9 12.7 12.6 Less than $100 million 15.2 15.8 14.9 13.7 $100 million to $1 billion 13.5 13.7 12.8 13.3 $1 billion or more 13 money center 15.2 12.6 11.5 13.0 Others 12.6 13.2 11.5 11.0 1. Average assets are fully consolidated and net of loan-loss 3. Adjusted for tax equivalence; see table 2, note 1. reserves; averages are based on amounts outstanding at the beginning 4. Before taxes. and end of each period. 5. After taxes, not separately shown. 2. Size categories are based on end-of-period consolidated assets of each bank. deposits have provided funding that cost from 4 LOAN-LOSS EXPERIENCE to 7 percentage points less than managed liabilities did. This spread has shielded earnings, to Relative to the first half of 1982, loan-loss provisome extent, from maturity imbalances between sions were boosted in the first half of 1983. The deposits and earning assets. As a result of the increase, which for all banks averaged nearly 40 advent of money market certificates and other percent, occurred in virtually every Federal Rederegulated deposits beginning in mid-1978, this serve District.2 The widespread nature of the rate advantage slipped to about 1 percentage point in the first half of 1983. With the narrowing Remaining Maturities") and large bank supplements on matuof this cost differential, the margin of protection rity distribution of selected assets and liabilities. The data has shrunk. Analysis of this element of bank from the deleted schedules formerly allowed comparisons profitability, however, is currently hampered by between the maturity structure of interest-sensitive assets and interest-sensitive liabilities. Once several time periods changing reporting requirements.1 have been reported on Schedule J, detailed analysis of maturity matches between assets and liabilities can be re- 1. The reporting changes are the following: (1) implemen- sumed. tation in June 1983 of Schedule J ("Repricing Opportunities 2. Loan-loss provisions in the Federal Reserve District of for Selected Balance Sheet Categories"), and (2) the deletion Chicago actually decreased slightly in the first half of 1983 of the previous Schedule B ("Securities: Distribution by from the unusually high levels of the first half of 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

890 Federal Reserve Bulletin • December 1983 increases likely reflects the recession as well as 6. Past-due loans as a percent of portfolios, all some special factors. Banks in the Dallas and national banks, June 30, 1980-831 Kansas City Districts, collectively, doubled their Type of office and type of loan 1980 1981 1982 1983 loan-loss provisions over the year as a result of problem credits in energy and energy-related Total2 3.7 3.6 4.4 5.5 Domestic offices2 4.3 4.2 4.9 5.5 businesses. Banks in the San Francisco District, Real estate 4.4 4.4 5.8 5.3 which has one very large bank with well-publi- Commercial and industrial 4.7 4.7 5.4 7.2 Consumer 3.5 3.2 3.2 2.6 cized loan losses as well as lenders with expo- Foreign offices 1.8 1.4 2.1 5.5 sure to the soft real estate market in California, 1. Through September 1982, "past due" loans are defined as those greatly raised their loan-loss provisions. Also, unpaid 15 days after the due date for single-payment loans and overdrafts and 30 days after an installment is due on installment loans. banks with high concentrations of agricultural After September 1982, "past due" includes the entire unpaid balance loans nearly doubled their loss provisions over of all loans reported as 30 days or more past due. All periods include loans on nonaccrual status that are past due. Percentages are weighted the year, probably in response to several years of by amounts. depressed farm earnings. 2. Includes loans not separately shown. Banks in all size categories recorded loan-loss provisions notably larger than those of a year before (table 5). Small banks and large banks proportion of overdue real estate and consumer other than those in money centers had the great- loans has dropped in all Federal Reserve Disest increases. A number of related banks in tricts (not separately shown).6 It has, however, Kentucky and Tennessee, some of which failed risen for commercial and industrial loans of subsequent to the reporting date, added notice- national banks in eight of the twelve Districts; ably to the increase in loan-loss provisions in the the deterioration was especially pronounced in smallest size group. Loan-loss provisions of the New York and Chicago Districts, and in the banks in all size classes have receded from the Dallas and Kansas City Districts, which have highs of the second half of 1982 (table 5).3 banks with large concentrations of energy loans. Nonetheless, the difficulties of a number of large Even though commercial and industrial loans international borrowers remain to be resolved. account for a smaller percentage of the domestic Large insured commercial banks report actual loan portfolios of all banks than do real estate charge-offs by type of loan, charge-offs that and consumer loans combined, the increase in typically are anticipated in previous loan-loss past-due loans of the former type overshadowed provisions. The data (not separately shown) indi- the improvements in the latter. Also, overdue cate that these banks had charge-off rates that loans in foreign offices have increased signifiaveraged 0.41 percent of loans in the first half of cantly from last year for banks in all Federal the year compared with 0.36 a year earlier.4 Reserve Districts, but especially in the Boston, Charge-offs in real estate remained about the Philadelphia, and Dallas Districts. same, and consumer loan charge-offs were actu- On the brighter side, past-due loans appear to ally lower; however, commercial and industrial have peaked for all categories but foreign-office loan charge-offs nearly doubled. loans. For all domestic categories, the dollar For national banks, the proportion of total volume of loans past due 30 to 89 days decreased loans in domestic offices that were past due during the second quarter. exceeded that of a year ago (table 6).5 The 3. Seasonal factors apparently tend to boost loan-loss this discussion because there are no data for the year-earlier provisions in the second half of the year, and the drop in the period for other banks. Also, the point beyond which loans loss provision for the first half of 1983 is in line with declines are defined as past due in certain categories changed in of previous years. December 1982 from 15 days to 30 days. Before December 4. The charge-off rate apparently peaked in the fourth 1982, past-due loans may have been somewhat overstated. quarter of 1982 for all categories but loans to financial 6. Changes in the report form and definitions after the institutions; it then declined in the first quarter of 1983 and September 1982 report make it difficult to ascertain the peaks edged up in the second quarter. in these measures. Past-due real estate and consumer loans 5. All banks are required to report these data starting appear to have peaked in September 1982 and December 1981 with December 1982, but only national banks are covered in respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profitability of Insured Commercial Banks 891 OTHER INCOME several years. Banks of all sizes either broke even or regis- Noninterest income is an increasingly important tered small profits on securities transactions in component of earnings for banks of all sizes the first half of this year (table 5). This gain (table 5). Many banks have come to regard followed several consecutive years of losses on various kinds of noninterest income—loan ser- this type of transaction. vice fees, trust department income, deposit service fees, credit card fees, and miscellaneous fees—as profit centers with their own pricing NET INCOME strategies; thus they diversify to bolster profits in the face of fluctuating interest rates and poten- The number of commercial banks reporting negatially narrower margins. Banks with more than tive net income, shown in table 7, increased in $1 billion in assets, and especially the 13 money the first half of 1983 to 1,047—a record for recent center banks, have been most successful in en- years. The deterioration was concentrated in the larging income from these sources over the past smaller banks, although an additional very large bank and sixteen more banks with assets of $100 million to $1 billion also operated at a loss in this 7. Number of insured commercial banks with period. negative net income, 1980-83 Table 8 presents data for the past five years on earnings, as measured by the return on assets, by First half-year the best- and worst-performing banks. Profits for SSiizzee ooff bbaannkk11 1980 1981 1982 | 1983 the weakest banks—regardless of size—were significantly lower in the first half of 1983 than in All banks 518 548 849 1,047 Less than $100 million 494 507 775 956 the first half of 1982. The weakest small banks $100 million to $1 billion ... 18 37 68 84 $1 billion or more 6 4 6 7 again operated in the red, and all small banks— regardless of earnings performance—experi- 1. Size categories are based on end-of-period consolidated assets of enced erosion in the return on assets. Mediumeach bank. 8. Profitability rates of insured commercial banks, by asset size, first half, 1979-831 Percentile SSSiiizzzeee ooofff bbbaaannnkkk aaannnddd yyyeeeaaarrr222 Bottom Top MMMeeeaaannn555 5 10 25 25 10 5 Less than $100 million 1979 .17 .52 .91 1.72 2.25 2.67 1.32 1980 .13 .47 .88 1.90 2.62 3.17 1.43 1981 .11 .46 .91 2.05 2.87 3.49 1.54 1982 -.21 .31 .84 1.88 2.57 3.14 1.38 1983 -.66 .20 .82 1.83 2.39 2.84 1.19 $100 million to $1 billion 1979 .45 .59 .76 1.19 1.44 1.64 .99 1980 .34 .49 .70 1.21 1.50 1.74 .97 1981 .23 .46 .70 1.34 1.74 2.01 1.03 1982 .08 .31 .64 1.31 1.71 2.01 .97 1983 .04 .39 .72 1.33 1.69 1.97 .95 $1 billion or more 1979 .27 .43 .59 .92 1.14 1.29 .75 1980 .28 .41 .58 .92 1.16 1.32 .73 1981 .14 .29 .53 .97 1.14 1.40 .74 1982 .15 .27 .46 .91 1.11 1.19 .67 1983 .11 .33 .52 .97 1.18 1.38 .67 1. Profitability is defined as net income at an annual rate as a 2. Size categories are based on end-of-period consolidated assets of percent of average assets. each bank. 3. Unweighted average rates of return of banks in each class. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

892 Federal Reserve Bulletin • December 1983 9. Number of insured commercial banks included in least profitable banks and the most profitable tabulations, 1980-831 ones in all size categories. In detailed data (not shown in the tables) banks were ranked and First half-year SSiizzee ooff bbaannkk22 divided into quartiles based on return on equity. 1980 1981 1982 1983 Banks with less than $1 billion in assets in the weakest quartile earned about 1.5 percentage All banks 14,294 14,343 14,276 14,267 Less than $100 million 12,725 12,589 12,358 12,140 points less on average than did comparably sized $100 million to $1 billion ... 1,398 1,556 1,708 1,889 $1 billion or more 171 198 210 238 banks in the top quartile in the first half of both 1982 and 1983. For large banks the spread be- 1. Includes only banks open at both the beginning and the end of the first half of the year. tween the lowest and highest quartiles widened 2. Size categories are based on end-of-period consolidated assets of in the first half of 1983 to about 90 basis points; it each bank. was about 50 basis points in the first half of 1982. Loan-loss provisions also contributed to the sized banks as a group nearly maintained the erosion in profitability of banks with lower earnlevel of profitability of a year earlier, although ings. In the first half of 1982, for the weakest the results by percentile of earnings were mixed. quartile of banks loss provisions (as a percentage Except for the weakest 5 percent, all banks with of assets) were on average about double those for assets of $1 billion or more posted gains in the strongest quartile for all size groups. In the profitability from the previous year. first half of 1983, this spread widened dramati- As in the past, lower gross interest income was cally for banks of all sizes, particularly the small by far the most important distinction between the ones. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

893 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period August pants came to the view that the Federal Reserve through October 1983, is the twenty-second of a would take this opportunity to exert less presseries providing information on Treasury and sure on bank reserves, and U.S. financial mar- System foreign exchange operations to supple- kets developed a considerable sense of optimism ment the regular series of semiannual reports from late August through early October. Shortthat are usually issued each March and Septem- term interest rates declined about 3A percentage ber. It was prepared by Sam Y. Cross, Manager point. Yields on longer-dated securities also fell, of Foreign Operations of the System Open Mar- but by smaller margins. Some market particiket Account and Executive Vice President in pants were concerned that if interest rates should charge of the Foreign Group of the Federal continue to ease, financing the widening U.S. Reserve Bank of New York. current account deficits could become more difficult. Early in August the dollar moved up sharply, However, the U.S. economy continued to reaching a 9V2-year high against the German grow faster than many observers had anticipatmark and a record high on a trade-weighted ed. To be sure, housing starts and retail sales basis. For much of the balance of the period, temporarily weakened during the summer, and market participants expected the dollar to retreat substantially from those levels, and the dollar did 1. Federal Reserve reciprocal currency depreciate gradually through early October. But, arrangements buoyed by the effects of strength that was greater Millions of dollars than expected in the domestic economy and political turbulence internationally, the dollar Amount of Amount of Institution facility, facility, strengthened again during the remainder of Octo- October 31, 1982 October 31, 1983 ber to close the period little changed from its Austrian National Bank.... 250 250 levels at the end of July against most major National Bank of Belgium 1,000 1,000 foreign currencies. Bank of Canada 2,000 2,000 National Bank of The decline in the dollar through early October Denmark 250 250 was influenced by widespread predictions of a Bank of England 3,000 3,000 Bank of France 2,000 2,000 slowing of the recovery and an easing of money German Federal Bank 6,000 6,000 Bank of Italy 3,000 3,000 market conditions in the United States. Many forecasters doubted that the domestic economy, Bank of Japan 5,000 5,000 Bank of Mexico: which had advanced at a strong rate of 9.7 Regular facility 700 700 Special facility 325 0) percent in the second quarter largely on the basis Netherlands Bank 500 500 Bank of Norway 250 250 of a rebound in consumer expenditures and resi- Bank of Sweden 300 300 dential construction, could show sustained Swiss National Bank 4,000 4,000 growth in the face of the strong dollar and high Bank for International Settlements: real interest rates. Moreover, growth of the Swiss francs/dollars 600 600 narrowly defined monetary aggregate, Ml, had Other authorized European currency/ decelerated sufficiently to move within its moni- dollars 1,250 1,250 toring range for the first time this year, and price Total 30,425 30,100 data indicated that inflation remained relatively 1. Facility, which became effective August 30, 1982, expired on moderate. Consequently, many market partici- August 23, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

894 Federal Reserve Bulletin • December 1983 the release of these statistics kept alive expecta- was subdued, as the deficits were being easily tions of a significant slowing later in the year. offset by the continuing capital inflows. Although But demand in other sectors, especially business the statistics confirmed the existence of deficits fixed investment and inventories, was strong of unprecedented size—with one monthly trade enough to support major gains in industrial pro- deficit of more than $7 billion—the current acduction and employment. During the third quar- count issue faded into the background as a ter, gross national product registered a growth market factor, especially when the September rate of about 7.7 percent in real terms, and by trade deficit narrowed in a reassuring way. October it was clear that the economy retained The only currency to advance significantly considerable momentum as it proceeded into the against the dollar over the three-month period as fourth quarter. a whole was the Japanese yen, buoyed by Ja- As the economy remained buoyant, the scope pan's outstanding trade and price performance. for further declines in interest rates gradually The yen also benefited from the market's percepcame to be seen in the market as limited. After tion that the Japanese authorities were commitmid-October most U.S. interest rates edged high- ted to supporting the yen. Governor Mayekawa er, reinforced somewhat by uncertainties over of the Bank of Japan made clear that the exthe credit market implications of the lack of change rate was an important consideration in congressional action to raise the government the timing of the discount rate cut of Vi percentdebt ceiling. In addition, the rapid reemployment age point, which finally took place on October 21 of idle capacity began to raise some questions in conjunction with announcement of a six-point among market participants over the medium- economic stimulus package. The Japanese auterm outlook for monetary policy, particularly in thorities stated that they remained ready to interview of the continuing fiscal stimulus provided vene in the exchanges when necessary to defend by a large government deficit. As the outlook for the yen, and in fact they did sell dollars in the U.S. interest rates and the economy shifted market on several occasions during the period. during October, market professionals moved to Following close consultation with the Bank of cover large short-dollar positions that they had Japan as the yen weakened late in the period, the built up earlier. U.S. authorities also purchased a modest amount of yen in a joint operation with the Japanese With the outlook for the U.S. economy recentral bank. These operations began on October maining stronger than for foreign economies, 31 and continued the next day. In total, the U.S. capital continued to flow into U.S. stock and authorities purchased $29.6 million equivalent of bond markets. Also adding support for the dollar yen, an amount that was split evenly between the were "safe-haven" considerations prompting Treasury and the Federal Reserve. capital flows into the United States in response to events that heightened international tensions As detailed in the previous report covering the during the period. Market participants were period through the end of July, the U.S. authorimindful that such episodes had generated signifi- ties also intervened in the exchanges on four cant capital inflows at times during the past year, occasions during six business days, buying both and talk of safe-haven influences resurfaced on Japanese yen and German marks, in coordinated September 1 after a report that the Soviet Union operations that began on July 29 and lasted had downed a Korean airliner. But that incident through August 5. These operations together did not elicit a strong exchange rate reaction. brought the total of intervention by U.S. authori- Later in the period, however, intensified fighting ties in the exchange market from July 29 through in Lebanon, escalation of threats in the Iran-Iraq November 1 to $283.6 million equivalent, split war, and a U.S. landing in Grenada were among equally between the Treasury and the Federal the events that did have a more noticeable im- Reserve. Of this amount, $101.0 million equivapact on the dollar and thereby enhanced the lent was in Japanese yen and $182.6 million perceived risk of positioning against the U.S. equivalent was in German marks. currency. In other operations during the three-month Exchange market reaction to announcement of period, Mexico fully repaid the remaining porrecord U.S. trade and current account deficits tion of its special combined credit facility. On Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 895 2. Drawings and repayments by the Bank of Mexico under special combined credit facility1 Millions of dollars; drawings or repayments (-) Outstanding, Outstanding, FFaacciilliittyy October 1, 1982:4 1983:1 1983:2 1983:3 October 31, 1982 1983 Federal Reserve special facility for $325 million 46.0 211.2 67.8 -56.0 -289.0 United States Treasury special facility for $800 million.... 85.5 392.2 122.3 -104.0 -496.0 Total 131.5 603.5 190.0 -160.0 -785.0 1. Data are on a value-date basis. Because of rounding, figures may 2. Facility expired and outstanding drawings were repaid on August not add to totals. 23, 1983. August 15, Mexico prepaid outstanding swaps of represent the increase or decrease in the dollar $100.8 million to the Treasury and $54.3 million value of outstanding currency assets and liabilto the Federal Reserve. Drawings of $395.3 mil- ities, using end-of-period exchange rates as comlion and $214.8 million were repaid to the Trea- pared with rates of acquisition.) These losses sury and to the Federal Reserve respectively reflect the fact that the dollar had strengthened upon maturity on August 23, and the facility then since the foreign currencies were purchased. expired. This facility had originally consisted of The Federal Reserve and the Treasury invest $600 million from the Treasury and $325 million foreign currency balances acquired in the market from the Federal Reserve. It was provided in as a result of their foreign exchange operations in cooperation with other central banks, which to- a variety of instruments that yield market-related gether extended credit to the Bank of Mexico rates of return and that have a high degree of totaling $1.85 billion. quality and liquidity. Under the authority provid- During the past year, the Treasury had partici- ed by the Monetary Control Act of 1980, the pated, along with other nations, in providing Federal Reserve invested some of its foreign liquidity support to the Bank for International currency resources in securities issued by for- Settlements for credit facilities that the BIS eign governments. As of October 31, the Federal provided to the Central Bank of Brazil and to the Reserve's holdings of these securities were National Bank of Yugoslavia. This support took equivalent to $1,618.6 million. In addition, the the form of the Treasury agreeing, through the Treasury held the equivalent of $2,318.8 million Exchange Stabilization Fund (ESF), to be substi- in these securities as of the end of October. tuted for the BIS in the event of delayed repayments. By the end of the period, contingent 3. Net profits or losses (-) commitments on behalf of Brazil remained at on U.S. Treasury and Federal Reserve $500 million and on behalf of Yugoslavia were current foreign exchange operations1 reduced to $16 million. Both commitments ex- Millions of dollars pired as the credits were repaid after the close of the reporting period. U.S. Treasury In the period from August through October, PPeerriioodd FFeeddeerraall RReesseerrvvee Exchange General the Federal Reserve, the ESF, and the Treasury Stabilization account Fund general account realized no profits or losses from exchange transactions. As of October 31, cumu- August 1 through October 31, 1983 0 0 0 lative bookkeeping, or valuation, losses on out- Valuation profits and losses on outstanding assets and standing foreign currency balances were $771.9 liabilities million for the Federal Reserve and $786.2 mil- as of October 31, 1983 -771.9 -788.2 0 lion for the ESF. (Valuation gains and losses 1. Data are on a value-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

896 Industrial Production Released for publication December 15 average, total industrial output in November was 15.9 percent above the trough reached a year Industrial production increased an estimated 0.8 earlier. percent in November, the same rate as in Octo- In market groupings, output of durable conber. The composition of the gains in output was sumer goods edged downward again as autos similar to that in October; consumer goods and were assembled at a rate of 7.5 million units, the construction supplies showed small increases, same as in October, and production of appliances while advances for business equipment and ma- declined. Output of nondurable consumer goods terials were sizable. At 156.3 percent of the 1967 continued to rise, however. The increase of 1.3 1967 = 100 1967 = 100 TOTAL INDEX 170 Materials output 170 A 150 150 130 Products output 130 J L FINAL PRODUCTS 190 MATERIALS Nondurable 190 170 170 Business equipment \ \ 150 150 \ y^Durable\ 130 130 110 110 90 90 190 190 CONSUMER GOODS INTERMEDIATE PRODUCTS 170 170 / W Business supplies 150 * / 150 \ r N /v y 1 V // \\ / 7 130 Durable \ v / \! Construction supplies 130 110 110 1969-70=100 Annual rate, millions of units 180 AUTOS Stocks 18 140 14 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: November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

897 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1983 1983 NNNooovvv... 111999888222 tttooo NNNooovvv... Oct. Nov. July Aug. Sept. Oct. Nov. 111999888333 Major market groupings Total industrial production 155.1 156.3 2.3 1.4 1.4 .8 .8 15.9 Products, total 155.9 156.9 1.9 1.5 1.1 .6 .6 12.9 Final products 153.3 154.2 1.8 1.1 .9 .8 .6 11.5 Consumer goods 158.0 158.3 1.6 1.0 .7 .4 .2 12.0 Durable 156.7 156.4 2.5 .9 2.1 -.4 -.2 25.5 Nondurable 158.5 159.0 1.3 1.0 .3 .6 .3 7.5 Business equipment 161.1 163.2 2.1 2.2 1.3 1.6 1.3 11.5 Defense and space 123.1 124.3 2.0 -.2 1.3 1.1 1.0 9.4 Intermediate products 165.7 166.7 2.3 2.6 1.9 .2 .6 17.6 Construction supplies 151.9 152.4 2.6 2.2 1.4 .5 .3 23.5 Materials 153.8 155.3 2.9 1.3 1.7 1.0 1.0 21.0 Major industry groupings Manufacturing 156.3 157.5 2.2 1.5 1.5 .8 .8 17.5 Durable 142.8 144.1 2.7 1.5 1.9 .9 .9 20.8 Nondurable 175.9 176.7 1.7 1.3 1.1 .6 .5 13.8 Mining 118.7 120.5 2.1 1.0 .6 1.6 1.5 3.2 Utilities 177.9 178.9 3.7 1.9 .0 -.8 .6 7.3 NOTE. Indexes are seasonally adjusted. percent in the production of business equipment ther in November, reflecting continued strong was similar to the revised September and Octo- gains in metals and equipment parts as well as ber gains, and most components of business modest increases in consumer durable parts and equipment shared in the gain. Production of in nondurable materials such as chemicals. Outdefense and space equipment continued to in- put of energy materials increased 0.7 percent. crease. In October and November, output of In industry groupings, manufacturing producconstruction supplies advanced more slowly, av- tion rose 0.8 percent in November with durables eraging 0.4 percent per month, as compared with up 0.9 percent and nondurables up 0.5 percent. the 2.5 percent monthly rate of advance in the Output at utilities grew 0.6 percent and mining first nine months of the year. production increased 1.5 percent, reflecting siz- Output of materials increased 1.0 percent fur- able gains in all major components. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 Announcements REGULATION D: AMENDMENT firmed amendments to its capital adequacy guidelines adopted in June 1983. These amend- The Federal Reserve Board announced on De- ments established an explicit guideline for the cember 1, 1983, an increase from $26.3 million to minimum capital ratio of 5 percent for multina- $28.9 million in the amount of net transaction tional organizations and expanded the definition accounts to which the lowest reserve require- of secondary capital to include unsecured, longment (3 percent) will apply in 1984. The Board term debt issued by a bank holding company or a also increased the amount of reservable liabilities nonbank affiliate of the holding company. in depository institutions that are subject to a The Board acted in the light of comments zero percentage reserve requirement from $2.1 received since the amendments were adopted million to $2.2 million. and its experience with the guidelines. The The Board made the changes in accordance Board noted that multinational banking organizawith provisions of the Monetary Control Act of tions have substantially increased their capital 1980 and the Garn-St Germain Depository Insti- ratios since the implementation of the capital tutions Act of 1982. guidelines program in 1981. A decision was made The Monetary Control Act requires the Board against any further narrowing of capital requireto amend its Regulation D (Reserve Require- ments of larger and smaller banking organizaments of Depository Institutions) annually to tions at this time. increase the amount of transaction accounts sub- The Board reiterated that for bank holding ject to a reserve requirement of 3 percent in the company organizations with total assets exceednext calendar year to 80 percent of the annual ing $150 million, the capital guidelines apply both percentage increase in transaction accounts held to individual banks in the holding company and by all depository institutions. The growth in total to the bank holding company on a consolidated net transaction accounts of all depository institu- basis. tions from June 30, 1982, to June 30, 1983, was 12.5 percent. The statutory rule thus requires an increase of 10 percent, to $28.9 million. PARTICIPATIONS IN BANKERS The Garn-St Germain Act requires the Board ACCEPTANCES to amend Regulation D to adjust the amount exempt from reserve requirements for 1984 by 80 The Federal Reserve Board on December 2, percent of the annual percentage increase in total 1983, clarified the meaning of participations in reservable liabilities. Growth in total reservable bankers acceptances for purposes of the bankers liabilities was 5.1 percent from June 30, 1982, to acceptance limitations of the Bank Export Ser- June 30, 1983, requiring an increase in the re- vices Act. The Board's final action becomes serve requirement exemption to $2.2 million. effective June 10, 1984. The adjustments take effect for all depository The Bank Export Services Act (BESA) raised institutions with the reserve maintenance period the limits on the aggregate amount of eligible beginning January 12, 1984. bankers acceptances that may be created by a member bank of the Federal Reserve System. 1 CAPITAL ADEQUACY GUIDELINES 1. "Eligible" bankers acceptances are not subject to federal reserve requirements. They must meet criteria in section 13 of the Federal Reserve Act including requirements that the The Federal Reserve Board announced on De- acceptance (1) grow out of a trade transaction involving cember 1, 1983, that it has reviewed and reaf- exporting, importing, or domestic shipment of goods or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

899 The act also applied these limits to U.S. specifically agree that the senior bank's rights branches and agencies of foreign banks when the are assignable. parent bank has, or is controlled by, a company or companies with more than $1 billion in consolidated bank assets worldwide. CHANGES IN BOUNDARIES OF The BESA also provided that any portion of an FEDERAL RESERVE DISTRICTS eligible bankers acceptance created by a member bank or by a U.S. branch or agency of a foreign The Federal Reserve Board has approved the bank covered by the BESA that is conveyed transfer of eight counties in Southeast Oklahoma through a participation agreement to another from the Eleventh (Dallas) District to the Tenth covered bank should not be included in the (Kansas City) District. These counties include calculation of the creating bank's limits on bank- Atoka, Bryan, Choctaw, Coal, Johnston, ers acceptances. 2 Instead, the amount of the McCurtain, Marshall, and Pushmataha. The area acceptance conveyed through the participation is will become part of the territory served by the to be applied to the limitations applicable to the Oklahoma City Branch of the Kansas City Recovered bank receiving the participation. serve Bank. This change will become effective in Under the act, the Board is authorized to May 1984. define the term "participation" for purposes of the bankers acceptance limitations of the BESA. In June 1983, the Board issued for com- PROPOSED ACTIONS ment a proposed definition of participations for purposes of the BESA acceptance limits. The Federal Reserve Board has requested com- In its final rule, the Board determined that, for ment by January 24, 1984, on a proposed amendpurposes of the BESA limits, a participation ment to its Regulation Y (Bank Holding Compamust satisfy the following two minimum require- nies and Change in Bank Control) to eliminate ments: the requirement that bank holding companies engaging in credit life, accident, and health insur- 1. A written agreement entered into between the ance underwriting must provide rate reductions junior and senior bank under which the junior bank acquires the senior bank's claim against the account or increased policy benefits. party to the extent of the amount of the participation that is enforceable in the event that the account party The Board published on November 28, 1983, fails to perform in accordance with the terms of the an update to the official staff commentary on acceptance; and Regulation Z (Truth in Lending). Three principal 2. The agreement between the junior and senior bank provides that the senior bank obtain a claim subjects of the proposed revision are set forth in against the junior bank to the extent of the amount of excerpts from the text of the proposal. The the participation that is enforceable in the event the Board requested comment by January 31, 1984. account party fails to perform in accordance with the terms of the acceptance. 3 The Board has also announced the extension After reviewing comment received, the Board of the period for comment through December 20, determined not to adopt the proposed require- 1983, on the methodology for calculating the ment that the senior bank and the account party private sector adjustment factor (PSAF) for 1984 that was proposed on October 13, 1983. storage of readily marketable staples and (2) have a maturity of less than six months. 2. "Covered banks" are those institutions subject to the SYSTEM MEMBERSHIP: BESA acceptance limits. All ©ther institutions—"noncovered banks"—are not subject to BESA quantitative limits on ADMISSION OF STATE BANKS eligible acceptances. 3. The "senior bank" is the institution that creates the The following banks were admitted to membereligible bankers acceptance and conveys the participation. The "junior bank" is the institution that receives the partici- ship in the Federal Reserve System during the pation. period November 10 through December 10, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 Federal Reserve Bulletin • December 1983 Arizona Pennsylvania Scottsdale Scottsdale Commercial Bank Camp Hill Pennsylvania Oklahoma Independent Bank Oklahoma City Expressway Bank Texas Pasadena Texas Coastal Bank Plana Independent Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

901 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 4, 1983 and other incentives to buyers as well as the limited availability of some popular models. Domestic Policy Directive Auto sales picked up in mid-September with the introduction of 1984 models and the associated The information reviewed at this meeting sug- increase in dealer inventories. Although the gested that real GNP had continued to grow growth in consumer spending had moderated rapidly in the third quarter, although the pace of recently, consumer financial positions appeared expansion had moderated from the exceptionally to be quite strong and surveys indicated a constrong annual rate of about 93A percent in the tinuing high level of consumer confidence. second quarter. A major factor in the third- Total private housing starts rose to an annual quarter expansion was a sharp swing in business rate of more than 1.9 million units in August, inventories from liquidation to accumulation. nearly 10 percent above the average rate over the The index of industrial production rose 0.9 previous three months. However, other indicapercent in August, following sizable advances in tors suggested some weakening in housing activiprevious months. As in other recent months, ty: newly issued permits for residential construcgains were widespread across industry groupings tion declined in August, and sales of both new and were particularly strong for consumer dura- and existing homes fell for the second month in a ble goods. By August the index had risen about row. 11 xh percent from its trough in November 1982 to Data on new orders and shipments generally a level 2V* percent below the previous peak in continued to indicate strength in the demand for July 1981. business equipment. Investment in nonresiden- Nonfarm payroll employment, adjusted for tial structures had stabilized in recent months, strike activity, rose about 300,000 in August, after declines earlier in the year. The Department continuing the strong upward trend that had been of Commerce survey of business spending plans evident since March. With growth in the civilian conducted in late July and August suggested that labor force roughly matching the rise in employ- plant and equipment expenditures in 1983 as a ment, the unemployment rate, which had de- whole would be about 3 percent lower, in nomiclined 0.5 percentage point to 9.5 percent in July, nal terms, than in 1982. Given the reduced level was unchanged in August. of spending reported for the first half of 1983, the After rising sharply in the spring, consumer survey results implied a substantial increase in spending had moderated substantially in recent investment outlays in the second half of the year. months. The nominal value of retail sales edged The producer price index for finished goods down in July and fell appreciably further in and the consumer price index both rose 0.4 August as sales of durable goods, particularly in percent in August, somewhat more than the the automotive sector, declined. Sales of new average increase in the previous few months. domestic automobiles fell in August to an annual The summer drought appeared to have had little rate just above 6V2 million units, compared with immediate impact on prices of foods at the an average rate of LLA million units in the preced- wholesale and consumer levels, but at the farm ing two months. The slowdown in auto sales, level the producer price index for crude foods which continued into early September, apparent- jumped nearly 4 percent in August after three ly reflected the elimination of interest subsidies months of decline. Over the first eight months of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

902 Federal Reserve Bulletin • December 1983 the year, the producer price index had shown other factors bearing on the business and inflavirtually no change, while the consumer price tion outlook, lesser restraint would be acceptable index had increased at an annual rate a little over in the context of a significant shortfall in growth 3 percent. Along with the moderation in price of the aggregates from current expectations, pressures, nominal wage increases had generally while somewhat greater restraint would be acbeen quite modest, with the index of average ceptable should the aggregates expand more raphourly earnings of production workers rising idly than expected. The Committee had anticionly about 3 percent at an annual rate since the pated that a reduction in growth of Ml to an beginning of the year. annual rate of around 7 percent from June to The debt of domestic nonfinancial sectors ex- September would be consistent with its thirdpanded somewhat less rapidly in August and quarter objectives for the broader aggregates and apparently in September than in July, as growth that expansion in total domestic nonfinancial in funds raised by private sectors slowed. Gov- debt would remain within its range for the year. ernmental credit demands remained unusually The intermeeting range for the federal funds rate strong, with U.S. government borrowings ac- was retained at 6 to 10 percent. counting for roughly half of the total funds raised In the latter part of the summer, growth in M2 in credit markets by domestic nonfinancial bor- remained at, or below, its reduced pace in July, rowers. Credit at U.S. commercial banks ex- and over the June-to-September period its panded at an annual rate of about 11 LA percent in growth was estimated to have been well below August, somewhat above the average pace of the annual rate of around 8 percent expected by other recent months, but data for early Septem- the Committee. Growth in M3 strengthened ber suggested a slowing in the growth of bank somewhat in late summer and in the third quarter credit, in part reflecting reduced demand for that aggregate expanded at a pace close to the business loans. Issuance of commercial paper by expected rate. Meanwhile, expansion in Ml fell nonfinancial businesses was maintained in Sep- to an annual rate a little below 3 percent in tember at about the relatively rapid pace record- August, and growth remained relatively low in ed in August, while bond offerings remained at a September. By September all three monetary reduced pace. aggregates appeared to be within the longer-run The foreign exchange value of the dollar, as ranges specified by the Committee, with M2 in measured by its trade-weighted average against the lower portion of its range, M3 in the upper major foreign currencies, had fluctuated within a portion of its range, and Ml somewhat above the relatively narrow range since mid-August. Fluc- midpoint of its monitoring range. Growth in total tuations in the exchange rate over the period domestic nonfinancial debt also appeared to be generally paralleled changes in the spread be- well within its range for the year. tween U.S. interest rates and foreign rates. The Consistent with the policy directive adopted at U.S. foreign trade deficit rose substantially in the August FOMC meeting, a slightly lesser July-August from the rate in the second quarter, degree of reserve restraint than that prevailing at as imports increased further in association with the time of the meeting was sought as the interthe pickup in U.S. economic activity. meeting period progressed, in light of slower At its meeting on August 23, 1983, the Com- than anticipated money growth in the context of mittee had decided that open market operations evidence of a moderation in the rate of economic in the period until this meeting should be directed expansion and continued restraint on inflationary at maintaining about the existing degree of re- pressures. Nonborrowed reserves of depository serve restraint. That action was expected to be institutions, after declining in July and August, associated with growth of M2 and M3 at annual rose somewhat in September as institutions emrates of around 8 percent from June to Septem- ployed the increased availability of reserves in ber, consistent with the targets established for part to repay borrowings from the Federal Rethose aggregates for the year. The Committee serve. Adjustment plus seasonal borrowing, had also agreed that, depending on evidence which had averaged somewhat over $1 billion in about the strength of the economic recovery and August, fell off in September. However, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 903 average level for September was inflated in part In the Committee's discussion of the economic by complications in reserve management related situation, the members were generally optimistic to the redistribution of reserves around the bank- about the prospects for continued recovery in ing system in connection with a huge buildup in economic activity and containment of inflation- U.S. Treasury cash balances at depository insti- ary pressures. They agreed that the staff projectutions and also at Federal Reserve Banks fol- tion of moderate economic growth seemed to be lowing the mid-September tax date. Borrowings the most likely outcome for the year ahead, and (excluding extended credit) surged to nearly $1.6 in this connection some members commented billion during the statement week ending Sep- that a more moderate rate of economic growth tember 21, but were in a range of about $650 than that experienced recently would be more million to $750 million during other weeks in consistent over time with sustaining the expan- September. sion and containing inflation. The view was Interest rates in general fluctuated around a expressed, however, that the rate of inflation modest downward trend over the intermeeting could turn out to be somewhat higher than prointerval, as the market responded to incoming jected and the rate of expansion somewhat slowdata on the economy and the monetary aggre- er. Several members also emphasized that finangates, to some weakening in credit demands, and cial markets and the economy could be adversely to varying expectations about implications for affected by unpredictable developments, includthe stance of monetary policy. Short-term inter- ing possible disturbances originating abroad such est rates in general declined about lA to Vi as a major interruption in oil shipments due to percentage point on balance over the intermeet- hostilities in the Middle East or a debt-servicing ing interval. The federal funds rate averaged crisis that led to a disruption of international close to 9!/2 percent through most of the inter- credit flows. Concern was also expressed about meeting period, down slightly from its average in the continued lag in demand in traditional heavy the first half of August. The rate dropped to capital equipment industries and also about the about 9 percent in the last full statement week of restraint that would be exerted over time on September, apparently in part because of reserve capital investment and housing by the current distribution effects stemming from the large high level of long-term interest rates. buildup in Treasury deposits. However, the In the latter context, the members again exfunds rate rose substantially in the days just pressed a great deal of concern about the prosbefore this meeting, reflecting usual pressures pects for massive federal deficits. It was obaround the end-of-quarter statement date. Most served that the Treasury's large borrowing needs long-term rates fell about 10 to 20 basis points were already exerting upward pressure on interover the period, and the average rate on new est rates, and that greater pressure could be commitments for fixed-rate conventional mort- expected if relatively large Treasury credit degage loans at savings and loan associations de- mands continued and were augmented by growclined about LA percentage point. ing business demands for a substantial amount of The staff projections presented at this meeting external funds to finance their investments. To indicated that growth of real GNP would proceed date, a relatively good rebound in corporate cash at a less rapid pace in the fourth quarter and in flow had combined with moderate investment 1984, partly reflecting lessened stimulus from demands to limit the net external financing needs inventory rebuilding and from expenditures on of the business sector. Moreover, large net inresidential structures. Growth in consumer flows of capital from abroad had been helping to spending was projected to recover somewhat finance the federal deficit, and the sustainability over the balance of the year from a reduced rate of such inflows was open to question, with in the third quarter but to moderate again during possible implications for the exchange value of 1984. A decline in the unemployment rate was the dollar and for domestic interest rates. anticipated over the projection period, and up- The members commented at some length on ward pressures on prices were expected to re- the related rise in the foreign trade and current main moderate. account deficits to historic and disturbing levels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

904 Federal Reserve Bulletin • December 1983 A substantial decline in the foreign exchange of Ml and increasing that of the broader value of the dollar, which many forecasters an- aggregates. ticipated, would help to reduce the deficit over The Committee members recognized that the time, but it would probably also foster some behavior of the monetary aggregates remained inflationary pressures in the domestic economy. subject to a great deal of uncertainty, and they On balance, though, foreign trade developments focused on the issue of how promptly and to were viewed as having a disproportionately ad- what extent open market operations should reverse impact on some domestic industries and, spond to any deviations in monetary expansion more generally, appeared to be retarding the from expected growth rates. The members economic recovery. agreed on the desirability of continuing to take Members referred to the substantial progress account of emerging economic and financial dethat had been made in curbing the rise of prices velopments, including the international financial and wages and to the concessions that were still situation, in policy implementation. In this conbeing made in some wage settlements. However, nection, some members felt that the Committee it was noted that a number of recent settlements, should be prepared to respond a little more primarily in industries not subject to strong com- promptly and aggressively in an easing direction petitive or financial pressures, had called for than in a tightening direction, should developwage increases substantially higher than the rate ments seem to warrant a change in the degree of of inflation. There also appeared to be a "catch reserve restraint. These members underscored up" demand for higher wages from workers in the sensitivity of key sectors of the economy to previously troubled firms. Concern was ex- interest rate developments and the impact of pressed that, with continuing expansion in eco- U.S. interest rates on the strained international nomic activity, an increasing number of firms debt situation. On the other hand, others called would become less willing to resist inflationary attention to the need for caution in light of the wage demands and that progress in containing inflationary risks of being too accommodative in wage costs might be halted or reversed. the provision of reserves, with even more ad- In the Committee's discussion of monetary verse consequences over time both domestically policy for the weeks ahead, a consensus was and internationally. expressed in favor of making no further adjust- At the conclusion of the discussion the memment in the degree of reserve restraint at this bers agreed that no change should be made at time beyond the slight easing that had been this time in the degree of pressure on reserve sought in recent weeks on the basis of the positions and that operations should be directed directive issued at the August meeting. A staff toward maintaining the slightly reduced reserve analysis suggested that such reserve restraint restraint that had been sought in recent weeks. was likely to be associated with some increase in The members anticipated that such a policy monetary growth from the reduced third-quarter course would be associated with growth of both pace, reflecting in part an abatement of the M2 and M3 at an annual rate of around 8V2 restraining effects of the rise in interest rates in percent for the period from September to Delate spring and summer. Growth of all the mone- cember; this growth rate allowed for a minor tary aggregates was likely to remain within the impact from the October 1 deregulation of time Committee's longer-run ranges, however, given deposits on the growth of the broader aggregates a projection of moderate expansion in nominal in the fourth quarter. The members also agreed GNP in the fourth quarter. According to the staff that the need for greater or lesser restraint on analysis, the removal of most remaining controls reserve conditions should be evaluated against on time deposits by the Depository Institutions the background of developments relating to the Deregulation Committee, effective October 1, strength of the economic recovery, the outlook would under prevailing circumstances probably for inflation, and conditions in domestic and have only a minor, and possibly undetect- international financial markets. Depending upon able, near-term effect on the monetary aggre- such developments, lesser restraint would be gates—in the direction of restraining growth acceptable in the event of a significant shortfall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 905 in the growth of the aggregates over the weeks reduce inflation further, promote growth in output on a ahead, while somewhat greater restraint would sustainable basis, and contribute to a sustainable pattern of international transactions. At its meeting in be acceptable in the context of more rapid July the Committee reconsidered the growth ranges growth in the aggregates. The Committee anticifor monetary and credit aggregates established earlier pated that its fourth-quarter objectives for the for 1983 in furtherance of these objectives and set broader aggregates would be consistent with Ml tentative ranges for 1984. The Committee recognized growth at an annual rate of around 7 percent that the relationships between such ranges and ultimate economic goals have become less predictable; from September to December, and that expanthat the impact of new deposit accounts on growth of sion in total domestic nonfinancial debt would the monetary aggregates cannot be determined with a remain within the range of 8V2 to 11 Vi percent high degree of confidence; and that the availability of established for the year. It was agreed that the interest on large portions of transaction accounts may intermeeting range for the federal funds rate, be reflected in some changes in the historical trends in velocity. which provides a mechanism for initiating con- Against this background, the Committee at its July sultation of the Committee, would remain at 6 to meeting reaffirmed the following growth ranges for the 10 percent. broader aggregates: for the period from February- At the conclusion of the discussion, the Com- March of 1983 to the fourth quarter of 1983, 7 to 10 mittee issued the following domestic policy di- percent at an annual rate for M2; and for the period from the fourth quarter of 1982 to the fourth quarter of rective to the Federal Reserve Bank of New 1983, 6V2 to 9V2 percent for M3. The Committee also York: agreed on tentative growth ranges for the period from the fourth quarter of 1983 to the fourth quarter of 1984 The information reviewed at this meeting suggests of 6V2 to 9V2 percent for M2 and 6 to 9 percent for M3. that real GNP continued to grow rapidly in the third The Committee considered that growth in Ml in a quarter, although the rate of expansion moderated range of 5 to 9 percent from the second quarter of 1983 from that in the second quarter. Industrial production to the fourth quarter of 1983, and in a range of 4 to 8 and employment increased appreciably further in Au- percent from the fourth quarter of 1983 to the fourth gust, following large gains in previous months, and the quarter of 1984, would be consistent with the ranges civilian unemployment rate remained at 9.5 percent. for the broader aggregates. The associated range for After rising sharply in the spring, growth in consumer total domestic nonfinancial debt was reaffirmed at 8V2 spending has moderated substantially. Housing starts to 11V2 percent for 1983 and tentatively set at 8 to 11 rose in August but permits turned down. Data on new percent for 1984. orders and shipments generally continued to indicate In implementing monetary policy, the Committee strength in the demand for business equipment. Pro- agreed that substantial weight would continue to be ducer and consumer prices increased somewhat more placed on the behavior of the broader monetary aggrein August than in other recent months, but over the gates. The behavior of Ml and total domestic nonfifirst eight months of the year average prices and the nancial debt will be monitored, with the degree of index of average hourly earnings have risen more weight placed on Ml over time dependent on evidence slowly than in 1982. that velocity characteristics are resuming more pre- After slowing substantially in July, growth in M2 dictable patterns. The Committee understood that remained at a reduced pace over the August-Septem- policy implementation would involve continuing apber period, while expansion in M3 picked up. Through praisal of the relationships between the various mea- September M2 is estimated to be at a level in the lower sures of money and credit and nominal GNP, including portion of the Committee's range for 1983 and M3 in evaluation of conditions in domestic credit and foreign the upper portion of its range. Growth in Ml deceler- exchange markets. ated considerably further in August-September and The Committee seeks in the short run to maintain moved within the Committee's monitoring range for the slightly lesser degree of reserve restraint sought in the second half of the year. Interest rates have de- recent weeks. The action is expected to be associated clined somewhat since mid-August. with growth of M2 and M3 at annual rates of around The foreign exchange value of the dollar, as mea- 8V2 percent from September to December, consistent sured by its weighted average value against major with the targets established for these aggregates for the foreign currencies, has fluctuated within a relatively year. Depending on evidence about the strength of narrow range since mid-August. The U.S. foreign economic recovery and other factors bearing on the trade deficit rose substantially in July-August from the business and inflation outlook, lesser restraint would second-quarter rate, reflecting a further increase in be acceptable in the context of a significant shortfall in imports of a broad range of goods. growth of the aggregates from current expectations, The Federal Open Market Committee seeks to fos- while somewhat greater restraint would be acceptable ter monetary and financial conditions that will help to should the aggregates expand more rapidly. The Com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

906 Federal Reserve Bulletin • December 1983 mittee anticipates that Ml growth at an annual rate of before the next meeting is likely to be associated with around 7 percent from September to December will be a federal funds rate persistently outside a range of 6 to consistent with its fourth-quarter objectives for the 10 percent. broader aggregates, and that expansion in total domestic nonfinancial debt would remain within the range Votes for this action: Messrs. Volcker, Solomon, established for the year. The Chairman may call for Gramley, Guffey, Keehn, Martin, Morris, Partee, Committee consultation if it appears to the Manager Rice, Roberts, Mrs. Teeters, and Mr. Wallich. for Domestic Operations that pursuit of the monetary Votes against this action: None. objectives and related reserve paths during the period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

907 Legal Developments AMENDMENTS TO REGULATION L (1) "Total assets" means assets measured on a consolidated basis as of the close of the organization's last The Board of Governors of the Federal Reserve Sys- fiscal year. The "total assets" of a depository holding tem has amended its Regulation L—Management Offi- company include the total assets of all of its subsidiary cial Interlocks (12 C.F.R. Part 212). These amend- affiliates, except that "total assets" of a diversified ments will streamline procedures for administration of savings and loan holding company, as defined in the Interlocks Act and provide the management of section 408(a)(1)(F) of the National Housing Act depository institutions and depository organizations (12 U.S.C. § 1730a(a)(F)), or of a bank holding compawith greater flexibility by easing current regulatory ny that is exempt from the prohibitions of section 4 of burdens while furthering the Interlocks Act's goal of the Bank Holding Company Act of 1956 pursuant to an fostering competition among depository organizations. order issued under section 4(d) of that Act (12 U.S.C. Effective November 30, 1983, the Board amends § 1843(d)), means only the total assets of its depository Regulation L as follows: institution affiliate. "Total assets" of a United States branch or agency of a foreign commercial bank means the total assets of such branch or agency itself exclu- Part 212—Management Official Interlocks sive of the assets of the other offices of the foreign commercial bank. Section 212—Definitions 3. Section 212.3(a) and paragraph (b) and subparagraphs (b)(1) and (3) are revised to read as follows: (h)(1) "Management official" means (i) an employee or officer with management functions (including a branch manager); Section 212.3—General Prohibitions (ii) a director (including an advisory director or honorary director); (a) Community. A management official of a depository (iii) a trustee of a business organization under the organization may not serve at the same time as a control of trustees (e.g., a mutual savings bank); management official of another depository organizaor tion not affiliated with it if: (iv) any person who has a representative or nomi- (1) both are depository institutions and each has an nee serving in any such capacity. office in the same community; (2) "Management official" does not include (2) offices of depository institution affiliates of both (i) a person whose management functions relate are located in the same community; or exclusively to the business of retail merchandising (3) one is a depository institution that has an office in or manufacturing; the same community as a depository institution (ii) a person whose management functions relate affiliate of the other. principally to the business outside the United (b) Standard Metropolitan Statistical Area States of a foreign commercial bank; or ("SMSA"). A management official of a depository (iii) persons described in the provisos of section organization may not serve at the same time as a 202(4) of the Interlocks Act (12 U.S.C. § 3201(4)). management official of another depository organiza- (i) "Office" means a principal or branch office, located tion not affiliated with it if: in the United States, of a depository institution. "Of- (1) both are depository institutions, each has an fice" does not include a representative office of a office in the same SMSA, and either institution has foreign commercial bank, an electronic terminal, a total assets of $20 million or more; loan production office, or any office of a depository holding company. (3) one is a depository institution that has an office in the same SMSA as a depository affiliate of the other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 Federal Reserve Bulletin • December 1983 and either the depository institution or the deposi- (i) the relationship is necessary to provide mantory institution affiliate has total assets of $20 million agement or operating expertise to the newlyor more. chartered organization; (ii) no interlocking relationship permitted by this 4. Section 212.4 is amended by revising paragraph (b), subparagraph shall continue for more than two subparagraphs (b)(1), (b)(2), (b)(3), and (b)(5), and years after the newly-chartered organization comparagraph (c) to read as follows: mences business; and (iii) other conditions in addition to, or in lieu of, the foregoing may be imposed by the appropriate Section 212.4—Permitted Interlocking Federal supervisory agency in any specific case. Relationships (3) Conditions endangering safety or soundness. A person may serve at the same time as a management (b) Interlocking relationships permitted by agency official of two or more depository organizations (or order. A management official or a prospective manage- affiliates thereof) if one of the depository organizament official of a state member bank, bank holding tions faces conditions endangering the organizacompany, or an affiliate of either, may enter into an tion's safety or soundness, subject to the following otherwise prohibited interlocking relationship with a conditions: depository organization that falls within one or the (i) the relationship is necessary to provide manclassifications enumerated in this paragraph (b) if the agement or operating expertise to such organiza- Federal supervisory agency (as specified in section 207 tion facing conditions endangering safety or of the Interlocks Act) of the organization that falls soundness; and within one of the classifications determines that the (ii) other conditions in addition to, or in lieu of, relationship meets the requirements set forth in this the foregoing may be imposed by the appropriate paragraph. If the depository organization that falls Federal supervisory agency in any specific case. within one of the classifications is not subject to the interlocks regulations of any of the Federal supervisory agencies, then the Board shall determine whether the relationship meets the requirements of this paragraph. (5) Loss of management officials due to changes in (1) Organization in low income area; minority or circumstances. If a depository organization is likely women's organization. A person may serve at the to lose 30 percent or more of its directors or of its same time as a management official of two or more total management officials due to a change in cirdepository organizations (or affiliates thereof) if one cumstances described in section 212.6 of this Part, of the depository organizations is the affected management officials may continue to (i) located, or to be located, in a low income or serve in excess of the time periods specified in other economically depressed area, or section 212.6, provided that: (ii) controlled or managed by persons who are (i) the depository organization's prospective loss members of minority groups or by women, sub- of management officials or directors will be disject to the following conditions: ruptive to the internal management of the deposi- (A) the relationship is necessary to provide tory organization; management or operating expertise to the orga- (ii) the depository organization demonstrates that, nization specified in (i) or (ii) above; absent a grant of relief in accordance with this (B) no interlocking relationship permitted by subparagraph, 30 percent or more of either its this subparagraph shall continue for more than directors or management officials are likely to five years; and sever their interlocking relationships with the (C) other conditions in addition to, or in lieu of, depository organization; the foregoing may be imposed by the appropri- (iii) if the prospective losses of management offiate Federal supervisory agency in any specific cials resulted from more than one change in case. circumstances, such changes in circumstances (2) Newly-chartered organization. A person may must have occurred within a fifteen-month period; serve at the same time as a management official of and two or more depository organizations if one of the (iv) the depository organization develops a plan depository organizations (or an affiliate thereof) is a for the orderly termination of service by each newly-chartered organization, subject to the follow- such management official over a period not longer ing conditions: than 30 months after the change in circumstances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 909 which caused the person's service to become BANK HOLDING COMPANY AND BANK MERGER prohibited (but if the loss of management officials ORDERS ISSUED BY THE BOARD OF GOVERNORS is the result of more than one change in circumstances, the 30-month period is measured from Orders Issued Under Section 3 of Bank Holding the first change in circumstances). Other condi- Company Act tions in addition to, or in lieu of, the foregoing may be imposed by the appropriate Federal super- Caribank Corporation, visory agency. In evaluating requests made Pur- Dania, Florida suant to this subparagraph, the appropriate Federal supervisory agency will presume that a director Order Approving Acquisition of Bank who also is a paid, full-time employee of the depository organization, absent unusual circum- Caribank Corporation, Dania, Florida, a bank holding stances, will not resign from the position of direc- company within the meaning of the Bank Holding tor with that depository organization. This pre- Company Act, has applied for the Board's approval sumption may, however, be rebutted by a show- under section 3(a)(3) of the Act (12 U.S.C. ing that such unusual circumstances exist, § 1842(a)(3)) to acquire Caribank, Dania, Florida (for- (c) Diversified savings and loan holding company. merly called The Dania Bank) ("Bank"). Notwithstanding section 212.3, a person who serves as Notice of the application, affording opportunity for a management official of a depository organization and interested persons to submit comments, has been of a nondepository organization (or any subsidiary given in accordance with section 3(b) of the Act. The thereof) is not prohibited from continuing the inter- time for filing comments has expired, and the Board locking service when the nondepository organization has considered the application and all comments rebecomes a diversified savings and loan holding compa- ceived, in light of the factors set forth in section 3(c) of ny as that term is defined in section 408(a)(1)(F) of the the Act. National Housing Act (12 U.S.C. § 1730a(a)(l)(F)), Applicant, the 66th largest banking organization in and may continue to serve until November 10, 1988, Florida, controls one bank, Caribank, N.A., with despite the occurrence of any subsequent changes in aggregate deposits of $40.3 million, representing apcircumstances, whether or not those changes in cirproximately 0.1 percent of total deposits in commercumstances occurred prior to November 30, 1983. cial banks in the state.1 Bank, with deposits of $159.8 million, is the 59th largest bank in Florida, holding 0.4 5. Section 212.6 is revised to read as follows: percent of total deposits in commercial banks in the state. Acquisition of Bank would have no appreciable Section 212.6—Changes in Circumstances effect upon the concentration of banking resources in Florida. Bank is the 22nd largest bank of 65 banks in (a) Nongrandfathered interlocks. If a person's service the Miami-Fort Lauderdale banking market, and holds as a management official is not grandfathered under 1.2 percent of deposits in commercial banks in that section 212.5 of this Part, the person's service must be market.2 terminated if a change in circumstances causes such Applicant's principal shareholder, Dr. J. J. Gonzaservice to become prohibited. Such a change may lez Gorrondona, Jr., has owned 90 percent of the include, but is not limited to, an increase in asset size outstanding voting shares of Applicant since 1977 and of an organization due to natural growth, a change in 90 percent of the outstanding voting shares of Bank SMSA or community boundaries or the designation of since 1978. This proposal represents a reorganization a new SMSA, an acquisition, merger or consolidation, whereby Dr. Gorrondona will transfer his shares of the establishment of an office, or a disaffiliation. Bank to Applicant in exchange for shares of Applicant (b) Grace period. If a person's nongrandfathered ser- in order to facilitate a merger of Bank with Caribank, vice as a management official becomes prohibited N.A. Accordingly, the transaction would not result in under paragraph (a) of this section, the person may the elimination of any existing competition. continue to serve as a management official of all organizations involved in the prohibited interlocking relationship until 15 months after the date on which the change in circumstances that caused the interlock to become prohibited occurred, unless the appropriate Federal supervisory agency or agencies take affirmative action in an individual case to establish a shorter 1. All banking data are as of June 30, 1982. 2. The Miami-Fort Lauderdale banking market is comprised of period. Broward and Dade Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 Federal Reserve Bulletin • December 1983 This proposal was originally approved by the Feder- Applicant, the seventh largest banking organization al Reserve Bank of Atlanta pursuant to delegated in Maryland, controls one subsidiary bank, Citizens authority on February 27, 1979. The transaction was Bank and Trust Company of Maryland, with 71 offices never consummated, however, due to the decision of and deposits of $741.7 million, representing 4.5 perthe Office of Comptroller for the State of Florida to cent of the total deposits in commercial banks in the conduct an investigation and administrative hearing state.1 Peoples, with deposits of $196.3 million and 21 regarding the banking record of Dr. Gorrondona, a offices, controls approximately 1.3 percent of the total Venezuelan citizen, in Venezuela. By order dated deposits in commercial banks in the state. Upon January 26, 1983, the Florida Comptroller approved consummation of the proposed acquisition, Applicant the proposed transaction, and Applicant again has would remain the seventh largest commercial banking requested the Board's approval of the transaction. organization in Maryland and hold 5.8 percent of the Based on all the facts of record, it is the Board's total deposits in commercial banks in the state. The judgment that consummation of the proposal to ac- Board has carefully considered the effects of the quire Bank is consistent with the standards that the proposal on the structure of banking in Maryland, and Board is required to apply under section 3(c) of the concludes that consummation of this proposal would Bank Holding Company Act. not significantly increase the concentration of banking On the basis of the record, the application is there- resources in the state. fore approved. The acquisition of shares of Bank shall Both Applicant and Peoples operate primarily2 in not be made before the thirtieth calendar day following the Washington, D.C. banking market,3 where 67 the effective date of this Order or later than three commercial banking organizations operate. The share months after the effective date of this Order, unless of deposits held by the four largest commercial banksuch period is extended for good cause by the Board of ing organizations in the market is 46.6 percent. Appli- Governors or by the Federal Reserve Bank of Atlanta, cant is the seventh largest banking organization in the pursuant to delegated authority. market4 with $646.5 million in deposits, representing By order of the Board of Governors, effective 4.5 percent of the total deposits in commercial banks November 23, 1983. in the market. Peoples is the nineteenth largest banking organization in the market with deposits of $170.2 million, representing 1.2 percent of the total deposits Voting for this action: Chairman Volcker and Governors Martin, Partee, Rice, and Gramley. Absent and not voting: in commercial banks in the market. Upon consumma- Governors Wallich and Teeters. tion of this proposal, Applicant's share of the market's commercial bank deposits would increase to 5.7 per- JAMES MCAFEE, cent, and it would become the fifth largest commercial [SEAL] Associate Secretary of the Board banking organization in the market. Although the proposed acquisition would eliminate some existing competition between Applicant and Peoples in the Washington, D.C. banking market, the effect of this transaction on existing competition would Citizens Bancorp not be significant. The Washington, D.C. banking Riverdale, Maryland market is not highly concentrated now and would not become highly concentrated upon consummation of Order Approving Acquisition of Bank this transaction. In addition, numerous banking alter- Citizens Bancorp, Riverdale, Maryland, a bank holding company within the meaning of the Bank Holding Company Act ("Act"), has applied for the Board's approval under section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire up to 100 percent of the voting shares of Peoples Security Bank of Maryland, Landover, Maryland ("Peoples"). 1. Unless otherwise indicated, banking data are as of June 30, 1983. 2. Applicant and Bank also compete in the Baltimore banking Notice of this application, affording the opportunity market on a very limited basis. Applicant ranks 20th of 28 banks in the for interested persons to submit comments, has been market with deposits of $29.9 million, representing 0.37 percent of given in accordance with section 3(b) of the Act. The total market deposits. Bank ranks 27th with one office and $4.5 million in deposits, representing 0.05 percent of total market deposits. This time for filing comments has expired, and the Board acquisition would not have an adverse effect on existing competition has considered the application and all comments re- in the Baltimore banking market. ceived in light of the factors set forth in section 3(c) of 3. The Washington, D.C., banking market is approximated by the Washington, D.C., Ranally Metro Area. the Act (12 U.S.C. § 1842(c)). 4. As of June 30, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 911 natives would remain in the market after consumma- Comerica Incorporated, tion of the transaction. Finally, if the deposits held in Detroit, Michigan thrift institutions located in the Washington, D.C. banking market were included in the calculation of Order Approving Acquisition of Shares of a Bank market shares, Applicant's share of total deposits in the market after the acquisition would decline to 3.45 Comerica Incorporated, Detroit, Michigan, a bank percent. In view of the facts cited above and other holding company within the meaning of the Bank facts of record, the Board concludes that the effect of Holding Company Act of 1956, as amended (12 U.S.C. this transaction on existing competition is not so § 1841 et seq.) (the "Act") has applied for the Board's significant as to warrant denial of the proposal. approval under section 3(a)(3) of the Act (12 U.S.C. Neither Applicant nor Peoples is affiliated with any § 1842(a)(3)) to acquire 21.6 percent or more of the other commercial banking organization in any relevant voting shares of Pontiac State Bank, Pontiac, Michimarket. Based on the foregoing and other facts of gan ("Bank"). record, the Board concludes that consummation of the Notice of the application, affording opportunity for proposed transaction would not have any significant interested persons to submit comments, has been adverse effects on existing or potential competition given in accordance with section 3(b) of the Act. The and would not significantly increase the concentration time for filing comments has expired and the Board of banking resources in any relevant area. Thus, has considered the application and all comments recompetitive considerations are consistent with ap- ceived in light of the factors set forth in section 3(c) of proval of the application. the Act (12 U.S.C. § 1842(c)).1 The financial and managerial resources of Appli- Applicant, the second largest commercial banking cant, Peoples, and their subsidiaries are considered organization in Michigan, controls 18 subsidiary banks generally satisfactory and their prospects appear fa- with total deposits of $6.3 billion, representing 13.7 vorable. Thus, considerations relating to banking fac- percent of the total deposits in commercial banks in tors are consistent with approval of the application. the state.2 Bank, the 13th largest commercial banking With regard to the convenience and needs of the organization in Michigan, holds deposits of $456.9 communities to be served, Applicant's acquisition of million, representing approximately 1.0 percent of Peoples would enable Peoples to expand the services it deposits in commercial banks in the state. Upon currently offers to its customers. These expanded consummation, Applicant would hold deposits of $6.8 services would include automated teller machines and billion, representing approximately 14.7 percent of trust services. In addition, a higher lending limit and deposits in commercial banks in the state. The share of longer repayment terms on loans would be available to deposits held by five largest banking organizations in Peoples' borrowers. Thus, the Board concludes that Michigan would rise only marginally, from 57.1 perconsiderations relating to the convenience and needs cent to 58.1 percent. Accordingly, in the Board's of the communities to be served lend some weight judgment, consummation of this proposal would not toward approval of this application. have significant effects on the concentration of com- Accordingly, based upon the foregoing and other mercial banking resources in Michigan.3 facts of record, it is the Board's judgment that the proposed transaction should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be consummated before the thirtieth calendar day following the effective date of this Order, or later than 1. The Board has received comments on this application from 3 months after the effective date of this Order, unless F.O.C.U.S., Inc. (Friends Offering Challenge, Understanding and such period is extended for good cause by the Board or Service), Detroit, Michigan, a public interest group; NBD Bancorp, Inc., Detroit, Michigan ("NBD"), a competing bidder for Bank; and the Federal Reserve Bank of Richmond, acting pursu- the management of the Bank. None of these comments recommended ant to delegated authority. denial of the application, and none raised substantive issues regarding the factors that the Board considers in acting on applications under By order of the Board of Governors, effective section 3 of the Act. November 1, 1983. 2. All banking data are as of December 31, 1982. These data reflect Old Kent Financial Corporation's acquisition of Pacesetter Financial Corporation (69 FEDERAL RESERVE BULLETIN 102 (1983)), and Comerica's acquisition of Bank of the Commonwealth (69 FEDERAL Voting for this action: Chairman Volcker and Governors RESERVE BULLETIN 797 (1983)). Martin, Wallich, Partee, Teeters, Rice, and Gramley. 3. The Board has stated that the increase in competition in the financial services industry generally has mitigated the Board's previously expressed concerns regarding the concentration of banking JAMES MCAFEE, resources in Michigan. Old Kent Financial Corporation, 69 FEDERAL [SEAL] Associate Secretary of the Board RESERVE BULLETIN 102, note 3 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 Federal Reserve Bulletin • December 1983 Applicant and Bank compete in the Detroit banking proposal.9 In this case, there are 263 offices of 21 market,4 where all of Bank's offices are located. savings and loan associations in the Detroit banking Applicant, with six banking subsidiaries in the market, market holding aggregate deposits of $7.4 billion, is the second largest commercial banking organization representing approximately 25 percent of total deposin the Detroit banking market and controls 21.4 per- its in the market.10 Four of the ten largest depository cent of deposits in commercial banks in the market. organizations in the market are thrifts, and two of Bank is the seventh largest banking organization in the these hold deposits in excess of $1 billion. Based upon market and controls 1.9 percent of deposits in com- the number, size and market shares of these institumercial banks in the market. Upon consummation, tions in the Detroit market, the Board concludes that Applicant would remain the second largest banking their presence in the market exerts a mitigating influorganization in the market, and would control 23.3 ence on the competitive effects of this proposal. percent of deposits in commercial banks in the market. Finally, there are a large number of competing Based on its review of the record, the Board concludes depository organizations in the Detroit banking marthat consummation of the transaction would not have ket. Upon consummation, 44 commercial banking significant anticompetitive effects, in view of the struc- organizations will remain in the market including ten ture of the Detroit market and the number of compet- of Michigan's largest banking organizations. In addiing institutions in the market.5 tion, as noted above, there are 21 savings and loan The Detroit banking market is not highly concentrat- associations represented in the market. ed and would not become highly concentrated as a The financial and managerial resources of Appliresult of this transaction. The Hirfindahl-Hirschman cant, its subsidiaries and Bank are regarded as general- Index ("HHI") of the market is 1571 and upon con- ly satisfactory and their future prospects are favorsummation will increase by 81 points to 1652.6 On this able. Accordingly, banking factors are consistent with basis, the merger would not be subject to challenge approval. Considerations relating to the convenience under the Department of Justice Guidelines,7 and the and needs of the community to be served also are Department has not commented adversely on the consistent with approval. Thus, based on the foregoing application. and other facts of record, the Board has determined In its evaluation of the competitive effects of a that consummation of the proposed transaction would proposal in previous cases, the Board has indicated be consistent with the public interest and that the that thrift institutions have become, or at least have application should be approved. the potential to become, major competitors of com- On the basis of the record, the application is apmercial banks.8 On this basis, the Board has accorded proved for the reasons summarized above. The transconsiderable weight to the influence of thrift institu- action shall not be made before the thirtieth calendar tions in its evaluation of the competitive effects of a day following the effective date of this Order or later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Chicago, pursuant to delegated authority. By order of the Board of Governors, effective November 29, 1983. 4. The Detroit banking market is approximated by Wayne, Ma- Voting for this action: Chairman Volcker and Governors comb, and Oakland Counties plus 33 cities and townships located in Martin, Wallich, Partee, Rice, and Gramley. Absent and not St. Clair, Lapeer, Livingston, Washtenaw, and Monroe Counties, all voting: Governor Teeters. in Michigan. 5. Based on the size of Bank and its demonstrated lack of inclination to expand beyond the Detroit banking market, the Board does not JAMES MCAFEE, believe that consummation of this proposal will have a significant adverse effect with regard to potential competition. [SEAL] Associate Secretary of the Board 6. The share of deposits held by the four largest banking organizations in the market is 74.5 percent, and would increase to 76.4 percent upon consumation. 7. The Department of Justice considers a market highly concentrated only where the HHI equals or exceeds 1800. The Detroit market with an HHI of 1571 is regarded as moderately concentrated. The Department of Justice has stated it is unlikely to challenge mergers in 9. Comerica (Bank of the Commonwealth), supra, note 8; General such markets producing an increase in the HHI of less than 100 points. Bancshares Corporation, supra, note 8; Fidelcor, Inc. (Southeast U.S. Department of Justice Merger Guidelines (issued June 14, 1982). National Bancshares of Pennsylvania, Inc.), 69 FEDERAL RESERVE 8. Comerica (Bank of the Commonwealth), 69 FEDERAL RESERVE BULLETIN 445 (1983); First Tennessee National Corporation, supra, BULLETIN 797; General Bancshares Corporation, 69 FEDERAL RE- note 8. SERVE BULLETIN 802; First Tennessee National Corporation, 69 10. Savings and loan association deposit data are as of Septem- FEDERAL RESERVE BULLETIN 298 (1983). ber 30, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 913 Indiana Bancorp, banking market.3 Applicant is the third largest com- Fort Wayne, Indiana mercial banking organization in the market and controls 15.6 percent of the total deposits in commercial Order Approving Merger of Bank Holding banks in the market. Financial is the fourth largest Companies commercial banking organization in the market and controls 13.5 percent of the total deposits in commer- Indiana Bancorp, Fort Wayne, Indiana, a one-bank cial banks in the market. holding company within the meaning of the Bank After the merger, Applicant would control $636.4 Holding Company Act of 1956, as amended (12 U.S.C. million in deposits, and Applicant's share of the total § 1841 et seq.), has applied for the Board's approval deposits in commercial banks in the market would under section 3(a)(5) of the Act (12 U.S.C. increase to 29.1 percent, making Applicant the largest § 1842(a)(5)), to merge with Financial Incorporated, commercial banking organization in the market. Fol- Fort Wayne, Indiana ("Financial"), also a one-bank lowing consummation of the proposal, the share of holding company. After consummation of the propos- deposits held by the four largest commercial banking al, the resulting bank holding company will operate organizations in the market would increase from 75.2 under the name of Summit Bancorp. percent to 82.4 percent and the market's Herfindahl- Notice of the application, affording opportunity for Hirschman Index ("HHI") would increase by 421 interested persons to submit comments, has been points from 1576 to 1997.4 given in accordance with section 3(b) of the Act In connection with the proposed merger of the bank (48 Federal Register 32390 (1983)). The time for filing holding companies, Applicant's sole subsidiary, Indicomments has expired and the Board has considered ana Bank & Trust Company ("Indiana B&T"), Ft. the application and all comments received, including Wayne, Indiana, applied to the FDIC to merge with those from the Antitrust Division of the Department of Financial's sole subsidiary, Peoples Trust. The FDIC Justice, in light of the factors set forth in section 3(c) of is the appropriate federal banking agency for Peoples the Act (12 U.S.C. § 1842(c)).1 Trust and the resulting bank, which will be named Applicant is the thirteenth largest commercial bank- Summit Bank. The FDIC has considered the competiing organization in Indiana and controls one subsidiary tive impact of the merger of the two banks in the bank with total deposits of $341.1 million, representing market and has determined that, in light of the finan- 1.1 percent of the total deposits in commercial banks cial difficulties of Peoples Trust, its bleak prospects in the state.2 Financial is the fifteenth largest commer- and its ineffectiveness as a competitor, the anticomcial banking organization in the state and controls one petitive effects of the merger are clearly outweighed subsidiary bank with total deposits of $295.3 million, by the probable effect of the transaction in meeting representing 1.0 percent of total deposits of commer- the convenience and needs of the community to cial banks in the state. Consummation of the proposed be served.5 merger would increase Applicant's share of deposits in In this case, the Board is concerned about the commercial banks in Indiana to 2.1 percent and Appli- competitive effects resulting from the merger of these cant would become the fourth largest commercial two banking organizations. However, as discussed banking organization in Indiana. While the size of the above, the principal transaction, the merger of the organizations involved is significant, approval of this subsidiary banks, has been approved by the primary proposal would have no substantial effect on the regulator of the banks concerned. After considering concentration of banking resources in Indiana. the FDIC's determination with respect to the public Applicant and Financial operate in the Fort Wayne benefits of the bank merger, particularly its finding that there appears to be no feasible less anticompeti- 1. The Board also received comments from Fort Wayne National Bank ("Fort Wayne Bank"), in opposition to the proposed merger. Fort Wayne Bank asserts that the merger would be substantially 3. The Fort Wayne banking market is approximated by Allen, De anticompetitive, challenges the definition of the Fort Wayne banking Kalb, and Whitley Counties in Indiana, Jefferson Township in Wells market, and argues that the merger is not necessary in order to ensure County, Indiana, Hicksville township in Defiance County, and Carrythe survival of Financial's subsidiary bank, Peoples Trust Bank, Fort all township in Paulding County, both in Ohio. Wayne, Indiana. The Board has considered these comments and has 4. Under the Department of Justice's Merger Guidelines, where the concluded, after considering the findings of the FDIC in its Order post-HHI is 1000 points or more, the Department is likely to challenge dated November 21, 1983, approving the merger of Applicant's and a merger that produces an increase in the HHI of more than 100 Financial's subsidiary banks, that even if the Fort Wayne banking points. market were as defined by Fort Wayne Bank, the issues raised by Fort 5. The Department of Justice commented to the FDIC that the Wayne Bank do not warrant denial of this proposal. merger of Indiana B&T and Peoples Trust would have a significant 2. Banking data are as of December 31, 1982. adverse effect on competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 Federal Reserve Bulletin • December 1983 tive means to resolve the problems of Peoples Trust, Applicant, an operating corporation with no subsidthe Board concludes that the transaction should be iaries, proposes to acquire Bank, which has deposits approved. of $8.6 million.1 Upon acquisition of Bank, Applicant The financial and managerial resources and future would control the 470th largest of 620 banking organiprospects of Applicant are satisfactory and its future zations in Minnesota, and would hold 0.03 percent of prospects appear favorable. As a result of consumma- total deposits in commercial banks in the state. Thus, tion of this proposal, Financial's financial and manage- consummation of this proposal would have no adverse rial resources would be improved. Thus, consider- effects on the concentration of banking resources in ations relating to banking factors lend weight toward Minnesota. approval. Considerations relating to the convenience Bank is the fifth largest of eight commercial banking and needs of the community to be served also are organizations in the relevant banking market,2 and consistent with approval. Thus, based on the foregoing holds 5.06 percent of total deposits in commercial and other facts of record, the Board has determined banks in the market. Neither Applicant nor any of its that consummation of the proposed transaction would principals is associated with any other banking organibe in the public interest and that the application should zation in the market, and it appears that consummabe approved. tion of the proposal would not result in any adverse On the basis of the record, the application is ap- effects upon competition or increase the concentration proved for the reasons summarized above. The merger of banking resources in any relevant area. Accordingshall not be made before the thirtieth calendar day ly, the Board concludes that competitive considerfollowing the effective date of this Order or later than ations are consistent with approval of the application. three months after the effective date of this Order The financial and managerial resources and future unless such period is extended by the Board or by the prospects of Applicant and Bank are consistent with Federal Reserve Bank of Chicago, acting pursuant to approval. Although Applicant does not anticipate any delegated authority. immediate changes in the services offered by Bank, By order of the Board of Governors, effective considerations relating to the convenience and needs November 30, 1983. of the community to be served also are consistent with approval. Voting for this action: Chairman Volcker and Governors Based on the foregoing and other facts of record, the Martin, Wallich, Partee, Rice, and Gramley. Absent and not Board has determined that consummation of the transvoting: Governor Teeters. action would be in the public interest and that the application should be approved. On the basis of the JAMES MCAFEE, record, the application is approved for the reasons [SEAL] Associate Secretary of the Board summarized above. The acquisition of shares shall not be made before the thirtieth calendar day following the effective date of this Order or later than three months after the effective date of this Order unless such period is extended by the Board or by the Federal Reserve Kittson Investment Company, Bank of Minneapolis, acting pursuant to delegated Grygla, Minnesota authority. By order of the Board of Governors, effective Order Approving Formation of Bank Holding November 17, 1983. Company Kittson Investment Company, Grygla, Minnesota, has Voting for this action: Chairman Volcker and Governors Martin, Partee, Rice, and Gramley. Absent and not voting: applied for the Board's approval pursuant to section Governors Wallich and Teeters. 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) to become a bank holding company by JAMES MCAFEE, acquiring the American State Bank, Grygla, Minneso- [SEAL] Associate Secretary of the Board ta ("Bank"). Notice of the application, affording interested persons an opportunity to submit comments, has been given in accordance with section 3(b) of the Act. The time for filing comments has expired, and the Board has considered the application and all comments re- 1. All banking data are as of December 31, 1982. ceived in light of the factors set forth in section 3(c) of 2. The relevant banking market is defined as Red Lake and Pinnington Counties, Minnesota, and the eastern half of Marshall the Act. County, Minnesota. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 915 The Lawton Company, unchanged by the transaction. Moreover, ownership Sulphur, Louisiana of Burton has changed only in that Burton's voting shares, which previously were owned directly by Order Approving Formation of a Bank Holding individual members of the Burton family, now are Company owned indirectly by those same individuals through a company wholly owned by the Burton family. This The Lawton Company, Sulphur, Louisiana, has ap- transaction was essentially a reorganization of the plied for the Board's approval under section 3(a)(1) corporate interests of the Burton family. Moreover, of the Bank Holding Company Act (12 U.S.C. Applicant has committed that its only activity will be § 1842(a)(1)) (the "Act") to become a bank holding the ownership of Burton's stock. Accordingly, the company by retaining 100 percent of the voting shares Board believes it appropriate to treat Applicant as a of William T. Burton Industries, Inc., Lake Charles, successor to Burton. Therefore, Applicant may retain Louisiana ("Burton"), a bank holding company by its impermissible nonbanking activities of Burton in virtue of its control of Calcasieu Marine National reliance on the section 4(c)(ii) exemption. Bank, Lake Charles, Louisiana ("Bank"). Applicant Bank, which holds deposits of $775.0 million,2 is the is a limited partnership composed solely of members ninth largest banking organization in Louisiana, holdof the Burton family. ing 2.06 percent of total deposits in commercial banks Notice of the application, affording opportunity for in the state. Bank is the largest of five commercial interested persons to submit comments, has been banking organizations in the banking market3 and given in accordance with section 3(b) of the Act. The holds approximately 45 percent of the total deposits in time for filing comments and views has expired, and commercial banks in the market. Neither Applicant the Board has considered the application and all nor any of its principals is affiliated with any other comments received in light of the factors set forth in banking organization in the market and it appears that section 3(c) of the Act (12 U.S.C. § 1842(c)). retention of this interest will not result in any adverse Burton became a one-bank bank holding company effects upon competition in any relevant area. Accordby virtue of the 1970 amendments to the Act. The ingly, competitive considerations are consistent with Burton family has owned more than 85 percent of the approval of this application. shares of Burton prior to June 30, 1968, and may The financial resources and future prospects of engage in a variety of nonbank activities that other- Applicant and Bank are satisfactory. In addition, the wise would be impermissible for bank holding compa- Board has reviewed the circumstances surrounding nies except for the exemption found in section 4(c)(ii) Applicant's acquisition of Burton's stock and, based of the Act.1 In 1981, Applicant was formed as an estate upon the entire record, including procedures impleplanning measure to hold the shares of Burton previ- mented by Applicant and Burton to ensure future ously held directly by the Burton family. At the time of compliance with the Act, the Board concludes that its formation, Applicant acquired shares of Burton managerial resources of Applicant and Bank are conwithout the Board's prior approval under the Act. sistent with approval. Considerations relating to the Applicant has now applied to the Board to retain its convenience and needs of the community to be served interest in Burton and its indirect interest in Bank. are also consistent with approval of the application. Pursuant to section 4(a)(2) of the Act, Applicant Accordingly, it is the Board's judgment that the prowould be required to divest its nonbank activities posed retention would be in the public interest and that within two years of becoming a bank holding company the application should be approved. unless it became a successor to the exemption enjoyed On the basis of the record, the application is apby Burton. After a review of the record, the Board has proved for the reasons summarized above. determined that Applicant's acquisition of control of By order of the Board of Governors, effective Burton and Bank did not alter either the control or November 1, 1983. beneficial ownership of Bank. In this regard, Burton's ownership of the voting shares of Bank has remained Voting for this action: Chairman Volcker and Governors Martin, Wallich, Partee, Teeters, Rice, and Gramley. JAMES MCAFEE, 1. Section 4(c)(ii) exempts from the prohibitions of section 4 [SEAL] Associate Secretary of the Board a company covered in 1970 more than 85 percent centum of the voting stock of which was collectively owned on June 30, 1968 and continuously thereafter, directly or indirectly by or for 2. Banking data are as of June 30, 1982. members of the same family, or their spouses, who are lineal 3. The Calcasieu Parish banking market is defined as Calcasieu descendants of common ancestors. Parish, Louisiana. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 Federal Reserve Bulletin • December 1983 Milk River Investments, Inc., In analyzing a case under these standards where, as Hinsdale, Montana here, the principals of an applicant control another banking organization in the same market as the bank to Order Approving Formation of Bank Holding be acquired, the Board considers the competitive Company effects of the transaction whereby common control of the formerly competing institutions was established.4 Milk River Investments, Inc., Hinsdale, Montana, has At the time these two banks came under common applied for the Board's approval under section 3(a)(1) control in 1980, Glasgow Bank had deposits of $42.5 of the Bank Holding Company Act (12 U.S.C. million, representing 31.2 percent of total deposits in § 1842(a)(1)) of formation of a bank holding company the market, and Bank had deposits of $4.5 million, by acquiring 80 percent of the voting shares of The representing 3.3 percent. The market was highly con- First National Bank of Hinsdale, Hinsdale, Montana centrated, with a four-firm concentration ratio of 92.6 ("Bank"). percent, and the establishment of common control Notice of the application, affording opportunity for resulted in a Herfindahl-Hirschman Index of 2,572, interested persons to submit comments and views, has representing an increase of 203 points. been given in accordance with section 3(b) of the Act. The Board has reviewed the entire record relating to The time for filing comments and views has expired, this application and, while it is concerned with the and the Board has considered the application and all effects of the 1980 transaction, a number of factors comments received in light of the factors set forth in indicate that the anticompetitive effects in this market section 3(c) of the Act (12 U.S.C. § 1842(c)). are not so serious as to warrant denial. First, at the Applicant, a nonoperating company, was organized time of its acquisition in 1980, Bank was (and still is) for the purpose of becoming a bank holding company the smallest bank in the market. Further, Bank was through the acquisition of Bank. Bank is one of the small in absolute terms and, due to the policies and smallest banks in Montana, holding 0.1 percent of the characteristics of prior management, was not a signifitotal deposits in commercial banks in the state.1 Bank cant competitor in the market. Second, four indepencurrently is the smallest of six banks in the relevant dent banks and six thrift institutions remained to serve banking market, with total commercial bank deposits the market after the 1980 acquisition. In addition, a of $5.1 million, representing 3.4 percent of the total major banking organization in Montana has applied for commercial bank deposits in the market.2 Board approval to enter the market through acquisi- This proposal involves a restructuring of Bank's tion of the second smallest bank in the market. Third, ownership from individuals to a corporation owned by Bank and Glasgow Bank are located 29 miles apart and those same individuals. Bank's principals are also the competition that has existed between them has principals of The First National Bank of Glasgow, been minimal. Finally, at the time of its acquisition by Glasgow, Montana ("Glasgow Bank"), which also Applicant's principals in 1980, Bank's continuance as competes in the relevant banking market.3 Bank's a viable institution was in question. Therefore, the principals were affiliated with Glasgow Bank in 1980, acquisition preserved Bank as a source of banking at which time they acquired control of Bank. Glasgow services in the market. Accordingly, based upon these Bank currently is the largest bank in the market, with and other facts of record, the Board concludes that the deposits of $44.2 million, representing 30 percent of effects of the 1980 acquisition in the market were not total commercial bank deposits in the market. so serious as to require denial of this application. Section 3(c) of the Act precludes the Board from The Board has taken into consideration the fact that approving any proposed acquisition of a bank the Bank's financial condition has improved substantially effect of which may be to substantially lessen competi- under the management of Applicant's principals. The tion, create a monopoly, or to restrain trade in any financial and managerial resources and future Prosbanking market, unless the Board finds that such pects of Applicant, Bank, and Glasgow Bank are anticompetitive effects are clearly outweighed by the currently regarded as satisfactory and their prospects convenience and needs of the community to be served. appear favorable. Thus, banking factors and conve- 1. Unless otherwise indicated, all banking data are as of December 31, 1982. 4. See, Mid-Nebraska Bancshares, Inc., 64 FEDERAL RESERVE 2. The relevant banking market is defined as Phillips and Valley BULLETIN 589 (1978), afiTd sub nom., Mid-Nebraska Bancshares, Inc. Counties, Montana. v. Board of Governors, 627 F.2d 266 (D.C. Cir. 1980); Mankato 3. Applicant's principals together own 23.9 percent of the voting Bancshares, Inc., 64 FEDERAL RESERVE BULLETIN 760 (1978); stock of Glasgow Bank. These individuals are actively involved in the Mahaska Investment Company, 63 FEDERAL RESERVE BULLETIN 579 daily operations of Glasgow Bank and serve as President, Senior Vice (1977); Citizens Bancorp, Inc., 63 FEDERAL RESERVE BULLETIN 1083 President and Director of Glasgow Bank. (1977). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 917 nience and needs considerations outweigh any adverse organization in the state, controls deposits of $456.9 competitive effects resulting from the 1980 acquisition million, representing 1.0 percent of total deposits in and lend significant weight toward approval of this commercial banks in the state. Upon consummation of proposal. Based upon these and other facts of record, this transaction, Applicant would hold deposits of $7.5 the Board has determined that consummation of the billion, representing 16.4 percent of total deposits in transaction would be in the public interest and that the commercial banks in Michigan. The concentration application should be approved. ratio of the five largest banking organizations in Michi- On the basis of the record, the application is ap- gan would rise only marginally, from 57.1 percent to proved for the reasons summarized above. The trans- 58.1 percent. Accordingly, in the Board's judgment action shall not be consummated before the thirtieth consummation of this proposal would not have significalendar day following the effective date of this Order cant effects on the concentration of commercial bankor later than three months after the effective date of ing resources in Michigan.3 this Order, unless such period is extended for good Applicant and Bank compete in the Detroit banking cause by the Board or by the Federal Reserve Bank of market.4 Bank maintains all of its offices in the market, Minneapolis pursuant to delegated authority. and three banking subsidiaries of Applicant operate in By order of the Board of Governors, effective the market. Applicant is the largest commercial bank- November 16, 1983. ing organization in the market and controls deposits of $5.9 billion, representing 26.1 percent of total deposits Voting for this action: Chairman Volcker and Governors in commercial banks in the market.5 Bank is the Martin, Wallich, Partee, Teeters, Rice, and Gramley. seventh largest commercial banking organization in the market and controls 1.9 percent of the total depos- JAMES MCAFEE, its in commercial banks in the market. Upon consum- [SEAL] Associate Secretary of the Board mation of this transaction, Applicant's share of total deposits in commercial banks in the market would increase to 28 percent. In view of the size of the market shares held by NBD Bancorp, Inc., Applicant and Bank, the Board has carefully consid- Detroit, Michigan ered whether consummation of this proposal would eliminate a substantial amount of existing competition Order Approving Acquisition of Bank between the two organizations. Based on its review of the record in this application, the Board concludes that NBD, Bancorp, Inc., Detroit, Michigan, a bank holdin view of the structure of the market and the presence ing company within the meaning of the Bank Holding of numerous competitors, including thrift institutions, Company Act of 1956, as amended (12 U.S.C. § 1841 consummation of the proposed transaction is not likely et seq.), has applied for approval under section 3(a)(3) to result in substantial anticompetitive effects in the of the Act to acquire the successor by consolidation to market.6 Pontiac State Bank, Pontiac, Michigan. The Detroit banking market is not now highly con- Notice of the application, affording opportunity for centrated and would not become highly concentrated interested persons to submit comments, has been as a result of consummation of the proposal. The given in accordance with section 3(b) of the Act. The Herfindahl-Hirschman Index ("HHI") is 1571, and time for filing comments has expired, and the applicawould increase 99 points to 1670.7 On this basis, the tion and all comments received have been considered in light of the factors set forth in section 3(c) of the Act.1 3. The Board has stated that the increase in competition within the Applicant, the largest commercial banking organizafinancial services industry generally has mitigated its previously tion in Michigan, controls 17 banking subsidiaries with expressed concerns regarding the concentration of banking resources aggregate deposits of $7.1 billion, representing 15.4 in Michigan. Old Kent Financial Corporation, note 3, 69 FEDERAL RESERVE BULLETIN 102 (1983). percent of total deposits in commercial banks in the 4. The Detroit banking market is approximated by Wayne, Mastate.2 Bank, the 13th largest commercial banking comb, and Oakland Counties plus 33 cities and townships located in St. Clair, Lapeer, Livingston, Washtenaw, and Monroe Counties, all in Michigan. 5. Marketwide banking data are as of June 30, 1982. 1. The Board received comments on this application from Comer- 6. Based on the size of Bank and its demonstrated lack of inclinaica Incorporated, Detroit, Michigan ("Comerica"). tion to expand beyond the Detroit banking market, the Board does not 2. Statewide banking data are as of December 31, 1982, and reflect believe that consummation of this proposal will have a significant Old Kent Financial Corporation's acquisition of Pacesetter Financial adverse effect with regard to potential competition. Corporation (69 FEDERAL RESERVE BULLETIN 102 (1983)) and Comer- 7. The share of deposits held by the four largest banking organizaica's acquisition of Bank of the Commonwealth (69 FEDERAL RE- tions in the market is 74.5 percent, and would increase to 76.4 percent SERVE BULLETIN 797 (1983)). upon consummation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 Federal Reserve Bulletin • December 1983 merger would not be subject to challenge under De- The financial and managerial resources of Applipartment of Justice Guidelines, and the Department cant, its subsidiaries and Bank are regarded as satishas not commented adversely on the application.8 factory and their future prospects are favorable. Ac- Further, the market is now served by 45 commercial cordingly, banking factors are consistent with banking organizations and consummation will de- approval. crease this number by only one, to 44 competitors. Comerica has objected to the Board's approval of Moreover, these competitors include 10 of the 13 this application on the basis that the consideration to largest banking organizations in Michigan. In a num- be paid by Applicant to Bank's shareholders includes ber of previous cases, the Board has indicated that the cash, as well as shares of Applicant, and Michigan law competitive influence in a market of the largest bank forbids cash to be paid as consideration in bank holding companies in a state may be greater than what mergers.14 Comerica has raised similar objections with would be expected based on their market share alone, the Financial Institutions Bureau ("FIB") of the state especially with respect to their ability to serve local of Michigan, which must also approve the proposed customers.9 transaction. Comerica argues that, under the Supreme In its evaluation in previous cases of the competitive Court's holding in Whitney Bank v. New Orleans effects of a proposal, the Board has indicated that Bank,15 the Board is obliged to determine that proposthrift institutions have become, or at least have the als under the BHC Act do not violate state law. In potential to become, major competitors of commercial Whitney, the question presented was whether state banks.10 On this basis, the Board has accorded consid- law barred the opening of a new subsidiary bank of the erable weight to the influence of thrift institutions in its holding company. Because this question involved evaluation of the competitive effects of a proposal.11 In whether the holding company could organize and this case, there are 263 offices of 21 savings and loan control the new bank, the Supreme Court found that associations in the Detroit market. These institutions the resolution of this question was an essential considcontrol aggregate deposits of $7.4 billion, representing eration for the Board in its evaluation of the holding approximately 25 percent of the total deposits of all company's application under the Act to acquire and depository institutions in the market.12 Four of the ten control the new bank. largest depository institutions in the market are thrifts, In the instant case, however, the state law in quesand two of these hold deposits in excess of $1 billion. tion does not bar the acquisition by Applicant of Based upon the number, size and market shares of control of Bank. The issue under state law involves the these institutions in the Detroit market, the Board form of consideration to be paid by Applicant for concludes that their presence in the market exerts a Bank's shares, which issue is being considered, and is mitigating influence on the competitive effects of this appropriate for resolution, by FIB. Of course, as in proposal.13 any case, if Applicant modifies the consideration offered for its proposed acquisition of Bank (as a result of FIB's decision on this matter or for other reasons) and that modification materially affects the factors the Board is required to consider under section 3(c) of the 8. The Department of Justice considers a market highly concentrated only where the HHI equals or exceeds 1800. The Detroit market Act, the Board's approval of any such modification with an HHI of 1571 is regarded as moderately concentrated. The would be required. Department of Justice has stated it is unlikely to challenge mergers in Upon acquisition of Bank, Applicant intends to such markets producing an increase in the HHI of less than 100 points. (U.S. Department of Justice Merger Guidelines (issued June 14, expand the corporate and consumer services that the 1982)). Bank offers to its customers. Specifically, Applicant 9. First Tennessee National Corporation, 69 FEDERAL RESERVE will cause Bank to increase the number and variety of BULLETIN 298 (1983); First Bancorporation of Ohio, 67 FEDERAL RESERVE BULLETIN 799 (1981); United Bancorporation of New York, residential and commercial mortgages, as well as con- 67 FEDERAL RESERVE BULLETIN 358 (1981); and Bank of New York struction and development loans. Through affiliation ("Empire"), 66 FEDERAL RESERVE BULLETIN 807 (1980). with Applicant, Bank's customers will also have ac- 10. Comerica (Bank of the Commonwealth), 69 FEDERAL RESERVE BULLETIN 797; General Bancshares Corporation, 69 FEDERAL RE- cess to expanded commercial lending and a complete SERVE BULLETIN 802; First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983). 11. Comerica (Bank of the Commonwealth), 69 FEDERAL RESERVE BULLETIN 797; General Bancshares Corporation, 69 FEDERAL RE- SERVE BULLETIN 802; Fidelcor, Inc. (Southeast National Bancshares of Pennsylvania, Inc.), 69 FEDERAL RESERVE BULLETIN 445 (1983); it becomes the 11th largest depository institution in the market. In First Tennessee National Corporation, 69 FEDERAL RESERVE BULLE- addition, including savings and loan institutions, the four-firm concen- TIN 298 (1983). tration ratio of the Detroit market is 56.9 percent and would rise to 12. Savings and loan deposit data are as of September 30, 1982. 58.3 percent upon consummation of the proposal. Similarly, the HHI 13. When savings and loan data are considered, Applicant's market of the market is 1024 and would rise by 55 points to 1079. share falls to 19.7 percent, and it remains as the largest depository 14. Mich. Comp. Laws Ann. § 487.430 (West Supp. 1983-84). institution in the market. Bank's market share falls to 1.4 percent and 15. 379 U.S. 411 (1965). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 919 line of corporate services; new leasing services; and This application constitutes an amendment to an financial assistance to small businesses through Appli- application that was denied by the Board on June 10, cant's small business investment corporation expand- 1983.1 Notice of the application, affording opportunity ed trust services; and new retail services including for interested persons to submit comments and views, discount brokerage and asset management accounts. has been given in accordance with section 3 of the Act.2 Although Applicant currently makes these services (48 Federal Register 870 (1983)). The time for filing available in the market through its subsidiaries, the comments and views has expired, and the Board has provision of services to Bank's customers would result considered the application and all comments received in some increased benefits to the public, and would in light of the factors set forth in section 3(c) outweigh any adverse effects that might result from (12 U.S.C. § 1842(c)) of the Act. Applicant, the 21st consummation of this proposal. Thus, considerations largest banking organization in Pennsylvania, controls relating to the convenience and needs of the communi- one bank with total deposits of $578.8 million, reprety to be served also are consistent with approval. senting 0.8 percent of the total deposits in commercial Accordingly, based on the foregoing and other facts banks in the state.3 First Seneca, the 18th largest of record, the Board has determined that consumma- banking organization in the state, controls one bank with total deposits of $623.7 million, representing 0.9 tion of the proposed transaction would be consistent percent of the total deposits in commercial banks in with the public interest and that the application should the state. Upon consummation of this proposal and all be approved. planned divestitures, Applicant would become the On the basis of the record, the application is apeleventh largest banking organization in the state and proved for the reasons summarized above. The transwould control 1.6 percent of the total deposits in action shall not be made before the thirtieth calendar commercial banks in the state. In the Board's view, day following the effective date of this Order, or later consummation of this proposal would not have a than three months after the effective date of this significant effect upon the concentration of banking Order, unless such period is extended for good cause resources in Pennsylvania. Although Applicant's subby the Board, or by the Federal Reserve Bank of sidiary bank ("Bank") operates 23 branches in seven Chicago pursuant to delegated authority. banking markets and First Seneca Bank operates 48 By order of the Board of Governors, effective branches in nine banking markets, the only relevant November 29, 1983. market area in which both Applicant and First Seneca maintain banking offices is in the Oil City-Franklin Voting for this action: Chairman Volcker and Governors banking market.4 Accordingly, consummation of the Martin, Wallich, Partee, Rice, and Gramley. Absent and not proposal would not have any effect on existing compevoting: Governor Teeters. tition in any market area other than the Oil City- Franklin banking market. JAMES MCAFEE, [SEAL] Associate Secretary of the Board Applicant operates one office and one drive-in facility in the Oil City-Franklin banking market and First Seneca Bank operates three offices in the Oil City- Franklin banking market. Applicant is the third largest Pennbancorp, banking organization in the market and controls 18.5 Titusville, Pennsylvania percent of the total deposits in commercial banks in the market. First Seneca is the second largest banking Order Approving the Merger of Bank Holding Companies Pennbancorp, Titusville, Pennsylvania, a bank holding 1. 69 FEDERAL RESERVE BULLETIN 548 (1983). company within the meaning of the Bank Holding 2. No new Federal Register notice of the proposal has been published. The proposal does not represent an expansion of the Company Act ("Act"), has applied for the Board's original proposal for which adequate notice and opportunity for approval under section 3 of the Act (12 U.S.C. § 1842) comment was provided, and therefore no further notice is required. to merge with First Seneca Corporation, Oil City, The appropriate regulatory agencies were notified of the amended proposal and all statutory and regulatory notice requirements have Pennsylvania ("First Seneca"). As a result of the been satisfied. merger, Applicant would acquire all of the outstanding 3. Statewide deposit data are as of December 31, 1982, and reflect voting shares of First Seneca's subsidiary bank, First acquisitions as of July 15, 1983. 4. The Oil City-Franklin banking market is approximated by all of Seneca Bank, and an ownership of between 5.52 Venango County, except for the townships of Plum, Cherry Tree, Oil percent and 11.54 percent of the outstanding voting Creek, and Allegheny, and Washington, Ashland, Salem, and Richland townships, in Clarion County, Pennsylvania. For a discussion of shares of several other banks and bank holding compathe delineation of the Oil City-Franklin banking market, see 69 nies in Pennsylvania. FEDERAL RESERVE BULLETIN at 549-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 Federal Reserve Bulletin • December 1983 organization in the market and holds 19.6 percent of cant would hold approximately 19.6 percent of the the total deposits in commercial banks in the market.5 total deposits in commercial banks in the market. As a The Oil City-Franklin banking market is highly con- result of this divestiture, consummation of the proposcentrated, with the four largest commercial banking al would not reduce the number of competitors in the organizations controlling 86.6 percent of the total market or increase the concentration of banking redeposits in the commercial banks in the market and a sources in the Oil City-Franklin banking market. In Herfindahl-Hirschman Index ("HHI") of 2334. Upon light of Applicant's commitment to divest its offices, consummation of this proposal, absent any planned the Board concludes that the proposed acquisition divestitures, Applicant would control 38.1 percent of would not have a substantial adverse effect on existing the total deposits in commercial banks in the market; competition in the Oil City-Franklin market.7 the percent of deposits held by the four largest banking The financial and managerial resources and future organizations in the market would increase to 93.4 prospects of Applicant, its subsidiaries, and First percent; and the HHI would increase by 722 points to Seneca are regarded as generally satisfactory and their 3056. The increase in market deposit concentration future prospects appear favorable. Applicant's prothat would result from this proposal would make this posal includes several improvements and expansions transaction one that would be subject to challenge in the services and operations of the banks which lend under the Department of Justice Merger Guidelines. some weight toward approval. Thus, the Board finds On June 10, 1983, the Board denied an application that considerations relating to banking factors and the by Applicant to merge with First Seneca. On the basis convenience and needs of the community to be served of the combined market shares of Applicant and Bank are consistent with approval. Based on the foregoing and the highly concentrated nature of the Oil City- and other facts of record, the Board has determined Franklin market, the Board concluded that the propos- that consummation of the proposed transaction would al would eliminate a significant amount of existing be consistent with the public interest and should be competition in the market. The Board reviewed the approved. effect of the proposal in light of the competition Accordingly, on the basis of the record, the applicaprovided by thrift institutions in the market and con- tion is approved subject to the condition that the cluded that, even if thrift institutions in the market proposed divestiture be completed on or before conwere considered as full competitors of commercial summation of this proposal. This transaction shall not banks, the effect of the transaction would continue to be made before the thirtieth calendar day following the be substantially adverse. effective date of this Order, or later than three months In order to alleviate the anticompetitive effects of its after the effective data of this Order, unless such original proposal, Applicant has proposed to divest all period is extended for good cause by the Board, or by of the assets and the deposit and loan accounts of its the Federal Reserve Bank of Cleveland under delegatoffices in the Oil City-Franklin banking market. Appli- ed authority. cant plans to sell these offices to First National Bank By order of the Board of Governors, effective of Mercer County, Greenville, Pennsylvania ("Mercer November 30, 1983. Bank"). Mercer Bank does not currently operate in the market. It is expected that approximately $62.5 Voting for this action: Chairman Volcker and Governors million of Applicant's deposits would be transferred to Martin, Wallich, Partee, Rice, and Gramley. Absent and not voting: Governor Teeters. Mercer Bank. As a result of the proposed divestiture, Mercer Bank would then hold 18.5 percent of the total deposits in commercial banks in the market. JAMES MCAFEE, Applicant has committed to cause the divestiture of [SEAL] Associate Secretary of the Board its offices at or before consummation of the proposed acquisition of Bank.6 Upon consummation of the proposed transaction including the divestiture, Appli- 7. The Board has also considered the effect consummation of this proposal would have on probable future competition in the remaining separate 14 markets in which either Applicant and First Seneca compete. The Board has examined the concentration of banking 5. Market data are as of June 30, 1982. resources in each market, the number of probable future entrants, the 6. This commitment conforms with the Board's policy that divesti- size of the bank to be acquired and the attractiveness of the market for tures designed to eliminate significantly adverse effects on existing entry on a de novo or foothold basis absent approval of the applicacompetition must take place prior to or concurrent with the proposed tion. After consideration of these factors in the context of the specific acquisition. Barnett Banks of Florida, 68 FEDERAL RESERVE BULLE- facts of this case, the Board concludes that consummation of this TIN 180 (1982); Hartford National Corporation, 68 FEDERAL RESERVE proposal would not have any significant adverse effects on probable BULLETIN (1982). future competition in any relevant market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 921 Orders Issued Under Section 4 of Bank Holding closely related to banking. (12 C.F.R. § 225.4(a)(1), Company Act (2), (3), and (9)).2 The Board's determination that the activity of oper- Citicorp, ating an industrial bank or an industrial loan company New York, New York is closely related to banking was based on the condition that "the institution does not both accept demand Order Approving Acquisition of Limited Purpose deposits and make commercial loans." (12 C.F.R. Trust Company § 225.4(a)(2)). An institution engaging in both activities would be regarded as a "bank" for purposes of the Citicorp, New York, New York, a bank holding com- BHC Act. Section 2(c) of the Act defines as a "bank" pany within the meaning of the Bank Holding Compa- any institution that "accepts deposits that the deposiny Act ("BHC Act"), has applied for the Board's tor has legal right to withdraw on demand and engages approval under section 4(c)(8) of the Act (12 U.S.C. in the business of making commercial loans." § 1843(c)((8)) and section 225.4(b)(1) of the Board's (12 U.S.C. § 1841(c)). Citicorp has agreed that it will Regulation Y (12 C.F.R. § 225.4(b)(1)), to establish neither accept demand deposits nor offer NOW acde novo a subsidiary, Citicorp Savings and Trust counts or any transaction accounts through the offices Company, Tulsa and Oklahoma City, Oklahoma, of CSTC. (CSTC), to engage in industrial banking activities Oklahoma law does not specifically authorize the under a trust company charter. chartering of an industrial bank or an industrial loan Notice of the application, affording opportunity for company. Citicorp, therefore, proposes to engage in interested persons to comment, was duly published this type of activity through an institution chartered as (48 Federal Register 14756 (1983)). The Federal Re- a trust company. The Oklahoma Bankers Association serve Bank of New York considered all comments has protested this application, asserting that under received, including those of the Oklahoma Bankers Oklahoma law a trust company has the power to make Association in opposition to the application, in light of commercial loans and to accept demand deposits. The the factors set forth in section 4(c)(8) of the BHC Act Oklahoma Bankers Association asserts that, for pur- (12 U.S.C. § 1843(c)(8)). The Reserve Bank, acting poses of the Bank Holding Company Act, Citicorp pursuant to authority delegated by the Board would have the charter authority of a "bank" and thus 12 C.F.R. § 265.2(f)(20)), approved the application. would qualify as a "bank" under the BHC Act. The The Oklahoma Bankers Association sought Board acquisition of a bank in Oklahoma by Citicorp would review of the decision of the Reserve Bank and the be prohibited by the Douglas Amendment to the BHC Board agreed to review it. The Board has considered Act (12 U.S.C. § 1842(d)). However, Citicorp has all comments filed by the Oklahoma Bankers Associa- agreed that it will not exercise the full panoply of tion, including the comments filed in conjunction with powers that it may receive in its trust company charter. In particular, Citicorp has stated that CSTC will the petition for review. not accept demand deposits or offer NOW accounts or Citicorp is the second largest commercial banking any transaction accounts.3 organization in the United States, with total consolidated assets of $130.2 billion.1 Citicorp operates four The Board has expressed concern about recent subsidiary banks in the United States including Citi- acquisitions by nonbanking companies of institutions bank, New York, New York, with total assets of $110 that are chartered as banks but which limit their billion. This application involves the establishment by activities to avoid coverage under the "bank" defini- Citicorp of a subsidiary, CSTC, with offices in Tulsa tion in the BHC Act.4 The Board has not favored such and Oklahoma City, Oklahoma. Citicorp proposes, acquisitions of so-called "nonbank banks" that would through this de novo subsidiary, to engage in industrial banking activities, including consumer and commercial lending, and the issuing of thrift certificates and thrift passbook certificates. In addition, Citicorp pro- 2. The provision of consumer-oriented financial management poses to engage in the sale of credit-related life, courses was found by order to be closely related to banking. Citicorp, accident, and health insurance and the sale of consum- 65 FEDERAL RESERVE BULLETIN 265 (1979). 3. The Oklahoma Bankers Association urges the Board to conduct er-oriented financial management courses. These aca further inquiry on the powers of trust companies in Oklahoma, tivities have been determined by the Board to be particularly of trust companies chartered prior to Oklahoma achieving statehood. However, the record contains sufficient information on the scope of activities permitted to trust companies and actually to be exercised by CSTC. 4. Letter of December 16, 1982, to The Dreyfus Corporation concerning the acquisition by Dreyfus Corporation of Lincoln State 1. Banking data are as of June 30, 1983. Bank, East Orange, New Jersey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 Federal Reserve Bulletin • December 1983 undermine the policy of the BHC Act to separate Bankers Association concerning the scope of CSTC's banking from commerce as well as the provisions of proposed activities have been resolved by Citicorp's the Glass-Steagall Act, and the BHC Act's rules application and subsequent submissions. There is no limiting excessive risk in nonbanking activities.5 longer any doubt as to the precise scope of those Consistent with Congressional intent and the activities.8 In addition, the issue raised by the Oklaho- Board's responsibilities for the administration of the ma Bankers Association concerning whether CSTC Act, the Board has interpreted the definition of will meet the definition of bank for purposes of the "bank" in the BHC Act to limit the potential for Bank Holding Company Act is a legal issue that lies evasion of these fundamental purposes of the BHC within the Board's expertise and does not lend itself to Act through the "nonbank bank" device. Thus, the resolution through an evidentiary hearing. The Board Board has ruled that, for purposes of the BHC Act, has resolved that issue herein. In considering this NOW accounts should be regarded as demand depos- application the Board did not consider it necessary to its and that commercial loans include such commercial hear oral testimony from the Oklahoma Bankers Assoloan substitutes as the purchase of commercial paper, ciation and, consequently, the request of the Oklahobankers acceptances and certificates of deposit, and ma Bankers Association to address the Board is the sale of federal funds.6 The Board has carefully denied. reviewed this application in view of these underlying There is no evidence that consummation of this policy considerations, and with particular regard to the proposal would result in any undue concentration of questions raised by the Oklahoma Bankers Associa- resources, conflicts of interest, unsound banking praction. tices, or other adverse effects. In fact, the de novo As noted, CSTC will not accept demand deposits or nature of Citicorp's entry will provide an additional offer NOW accounts or any other type of transaction competitor and an additional source of consumer and account. Oklahoma trust companies, such as CSTC, commercial loans. In view of the de novo nature of this historically have not been eligible for FDIC insurance, acquisition, no adverse competitive effects would be and CSTC has not sought FDIC insurance for its associated with this proposal. deposits. CSTC will not have the term "bank" in its Based upon the foregoing and all the facts of record, title, and as a trust company it is not a bank for the Board has determined that the balance of public purposes of Oklahoma law. CSTC does not present, interest factors it is required to consider under section therefore, the concerns previously expressed by the 4(c)(8) is favorable. Accordingly, the application is Board regarding the permissibility of nonbank banks. hereby approved. This determination is subject to the The Board concludes that the activities proposed to conditions set forth in section 225.4(c) of Regulation Y be conducted by CSTC are essentially industrial bank and the Board's authority to require modification or activities, that CSTC will not meet the definition of termination of the activities of the holding company or "bank" under the BHC Act, and that consummation any of its subsidiaries as the Board finds necessary to of the proposal is not otherwise inconsistent with the assure compliance with the provisions and purposes of purposes of the Act.7 the Act and the Board's regulations and orders issued The Board also concludes that it is not necessary to thereunder, or to prevent evasion thereof. seek further testimony on this application through a The proposed activities shall not commence later hearing, as requested by the Oklahoma Bankers Asso- than three months after the effective date of this ciation. The factual issues raised by the Oklahoma Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of New York, pursuant to delegated authority. 5. Citizens Fidelity Corporation, 69 FEDERAL RESERVE BULLETIN 556 (1983). 6. First Bancorporation (Beehive Thrift and Loan), 68 FEDERAL RESERVE BULLETIN 253 (1982); Letter of December 16, 1982, to The Dreyfus Corporation. 7. For example, in First Bancorporation, 68 FEDERAL RESERVE The Board has previously considered an application to engage in BULLETIN 253 (1982), the Board approved an application to engage in industrial banking activities in Oklahoma through the use of a trust industrial loan company activities under section 4 of the Act on the company charter. Although the application was denied on other condition that the applicant refrain from offering NOW accounts, the grounds, the Board stated that such industrial loan activities as equivalent of demand deposits, although industrial loan companies conducted by a trust company were nonbanking activities that were were clearly permitted to do so in Utah. Similarly, in Citizens Fidelity closely related to banking. Republic Bancorporation, Inc., 67 FEDER- Corporation, 69 FEDERAL RESERVE BULLETIN 556 (1983), the Board AL RESERVE BULLETIN 66 (1981). approved an application under the nonbanking provisions of section 4 8. In particular, the Board is satisfied that CSTC will offer its thrift of the BHC Act to acquire a national bank that would engage solely in passbook certificates as time deposits rather than as transactional credit card operations. accounts payable on demand to third parties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 923 By order of the Board of Governors, effective bank activities, none of those proposals contemplated November 17, 1983. that the activity would be conducted by an out-of-state holding company through a state-chartered trust com- Voting for this action: Chairman Volcker and Governors pany with powers similar to those of commercial Martin, Wallich, Partee, and Gramley. Voting against this banks. Moreover, we believe the expanded powers of action: Governors Teeters and Rice. Governor Wallich abindustrial banks and, in particular, their eligibility for stained from voting on the insurance portion of this applica- FDIC insurance under the Garn-St Germain Deposition. tory Institutions Act of 1982, necessitate a re-examina- JAMES MCAFEE, tion of the entire Board policy with respect to industri- [SEAL] Associate Secretary of the Board al banks. We note that the Board has previously ruled in the case of savings and loan associations that it may consider "the broader questions of economic and Dissenting Statement of Governors Teeters and Rice regulatory policy that may be raised by a proposal" under section 4(c)(8) and it may deny an application We dissent from the Board's decision on this applicabased upon "the broader issue as to the propriety of tion. This application raises an issue regarding CSTC's affiliations" between banks and other financial institustatus as a bank under the Bank Holding Company tions. (D.H. Baldwin Company, 63 FEDERAL RESERVE Act, an issue which has important policy implications. BULLETIN 280-282 (1977)). Although CSTC will not offer demand deposits, this The potentially serious adverse effects on the underdoes not end the Board's inquiry, since its decision lying policies of Congress in enacting the BHC Act under section 4(c)(8) is not a mechanical analysis of require, we believe, denial of the present application. technical definitions but a determination of whether a We believe the proposal by an out-of-state bank holdproposed activity will produce public benefits that ing company to engage in industrial bank activities outweigh adverse effects. under the charter of a general trust company cannot be CSTC will have a state trust company charter emviewed as a "proper incident" to banking in light of powering it to engage in a full range of commercial the prohibition against interstate banking in the Dougbanking activities. Although Oklahoma law requires las Amendment. The serious adverse effects of the that CSTC accept only deposits that are treated as application outweigh any minor public benefits associtrust deposits, CSTC will operate for all practical ated with additional competition in the form proposed purposes as a bank, accepting general deposits and in the application. making a full range of consumer and commercial November 17, 1983 loans. The Board has expressed concern about the chartering and acquisition of "nonbank banks" by commercial enterprises as a device for taking deposits from the Comerica Incorporated, public, engaging in banking operations, and gaining Detroit, Michigan access to the payments mechanism. The Board has stated that institutions engaged in these operations Order Approving Acquisition of Credit Card should be subject to the provisions of the BHC Act Subsidiary that separate banking from commerce, aid in assuring adequate capital, prevent conflicts of interest, and Comerica Incorporated, Detroit, Michigan, a bank limit the taking of excessive risks in nonbanking holding company within the meaning of the Bank activities. Widespread use of the "nonbank bank" Holding Company Act of 1956, as amended (12 U.S.C. device for evading the Act seriously undermines the § 1841 et seq.) ("BHC Act"), has applied for the fundamental policies of the Act as established by Board's approval under section 4(c)(8) of the BHC Act Congress. Recent attempts by nonbanking organiza- (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the tions to utilize the "nonbank bank" loophole to evade Board's Regulation Y (12 C.F.R. § 225.4(b)(2)) to these policies threaten to alter significantly the na- acquire all of the outstanding shares of Comerication's banking structure, unless there is Congressional Midwest, N.A., Toledo, Ohio ("Company"), a proaction on the underlying policy issues. posed limited purpose bank that would engage solely In this context we believe that approval of the in credit card operations. present application would establish a precedent for the Notice of the application, affording interested perestablishment by bank holding companies of "non- sons the opportunity to submit comments, has been bank banks" on an interstate basis and that this is a duly published. (48 Federal Register 8587 (1983)). The seriously adverse factor that requires denial of the time for filing comments has expired and the Board application. While the Board has approved proposals has considered the application and all comments reby bank holding companies to engage in industrial ceived, including those of the Ohio Superintendent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 Federal Reserve Bulletin • December 1983 Banks in opposition to the proposal, in light of the In view of the limitations on Company's activities in factors set forth in section 4(c)(8) of the BHC Act. this case, specifically the restrictions in Company's Applicant, with 17 banking subsidiaries, is the third bylaws against the acceptance of demand deposits or largest commercial banking organization in Michigan, the making of commercial loans, the Board similarly and controls total deposits of $6.1 billion, representing concludes that Company will not be a "bank" for 12.1 percent of the total deposits in commercial banks purposes of the Act. Accordingly, the application has in the state.1 been considered in light of the provisions of section Applicant will transfer to Company its existing 4(c)(8) of the Act pertaining to the acquisition of credit card operations and will issue credit cards, nonbanking interests. including VISA and MasterCard, to residents of Ohio, The Board has previously determined that the pro- Michigan, Indiana, Wisconsin, Pennsylvania, Ken- posed activity is closely related to banking within the tucky, and Illinois. Company also will offer revolving meaning of section 4(c)(8).4 To the extent that the personal loans in connection with its credit card opera- proposal would preserve a competitor in the market tions. Applicant plans to locate Company in Ohio for credit card services, the Board has determined that because of that state's less restrictive policy regarding the proposal would offer competitive benefits. There is interest rates. no evidence that consummation of the proposal would Company has been organized solely to conduct result in any undue concentration of resources, concredit card operations for individuals and it will not flicts of interests, unsound banking practices, or other accept demand deposits or offer any type of transac- adverse effects. tion account to any person. It will not offer savings In its deliberations on this application, the Board accounts or time deposits to the general public, al- has taken into consideration the views of the Ohio though it will accept large denomination time deposits Superintendent of Banks, including the Superintenfrom Comerica's subsidiary banks. Similarly, Compa- dent's view that Company will be a de facto branch of ny will not make commercial loans of any type, Comerica's banking subsidiaries in Michigan, contrary including the purchase of commercial paper, certifi- to Ohio law, and that the proposal will violate the cates of deposit, or bankers acceptances, and the sale interstate banking prohibitions of section 3(d) of the of federal funds. These limitations will be included in Act. The Board addressed similar objections by the Company's bylaws, which cannot be amended without Superintendent in connection with the Citizens Fideliapproval of the Comptroller of the Currency and the ty application. In that case, the Board determined that Board. Company would not have the word "bank" in the record of the application and a long line of deciits name. sions by the Board and the courts demonstrate that the This application is similar to a proposal recently mere fact of common ownership of a bank holding approved by the Board permitting Citizens Fidelity company is insufficient to make one subsidiary a Corporation, a Kentucky bank holding company, to branch of another. The Board finds that the same establish a limited purpose credit card national bank in considerations are present in this case and that Com- Ohio.2 In that case, the Board addressed the question pany will not be an illegal branch of any banking subsidiary of Comerica.5 Similarly, in view of the whether a limited purpose bank, such as Company, Board's determination that Company will not be a that would not accept demand deposits or make commercial loans, would be a "bank" for purposes of the BHC Act. The Board expressed its concern about acquisitions of so-called "nonbank banks" as a device for evading the BHC Act. The Board has opposed bank banks, among other reasons. Two of these Board members also such acquisitions because they undermine the separahave dissented from the majority's decision in this case. tion of banking from commerce, the Glass-Steagall 4. Citizens Fidelity Corporation supra. Act, and the BHC Act's prudential rules limiting 5. Comerica has made the following commitments to insure that Company will not be a branch of any of its banking affiliates: excessive risk in nonbanking activities. A majority of Company will not transfer any of its deposits or loans to any of the Board felt constrained to conclude, however, on Comerica's banking subsidiaries; Comerica will use its resources, the basis of the specific facts of that case, that the rather than those of its banking subsidiaries, to capitalize Company; Company will be a separate corporation with its own capital structure credit card company in question would not be a and lending limits; Company's board of directors will be separate and "bank."3 independent; Company will be managed by local officers rather than employees of Comerica or its banking subsidiaries; Company will maintain separate books of account; and Company will not be identified in advertisements or by other means as a part of Comerica's 1. All banking data are as of June 30, 1983. other subsidiary banks. Although Company will be funded primarily 2. Citizens Fidelity Corporation, 68 FEDERAL RESERVE BULLETIN by certificates of deposit from Comerica's subsidiary banks, this fact 556 (1983). alone does not evidence a branching relationship, because Company 3. Three members of the Board dissented from the Board's approv- will make loans solely for its own account and will not sell any of its al of the Citizens Fidelity application on the basis that the transaction loans to affiliated banks or perform any lending functions on behalf of would set an undesirable precedent for further acquisitions of non- those subsidiary banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 925 "bank," the prohibitions of section 3(d) are inapplica- PNC Financial Corp, ble to the acquisition. Pittsburgh, Pennsylvania Accordingly, the Board has determined that approval of the proposal would not be inconsistent with state Order Approving Organization of Discount law and would be consistent with federal law. Securities Broker Based on the foregoing and all of the facts of record, the Board has determined that the balance of public PNC Financial Corp, Pittsburgh, Pennsylvania, a bank interest factors that it is required to consider under holding company within the meaning of the Bank section 4(c)(8) is favorable. Accordingly, the applica- Holding Company Act, as amended (12 U.S.C. § 1841 tion is hereby approved, subject to the conditions and et seq.)("the Act"), has applied for the Board's apcommitments described herein. This determination is proval under section 4(c)(8) of the Act (12 U.S.C. also subject to the conditions set forth in section § 1843(c)(8)) and section 225.4(b)(2) of the Board's 225.4(c) of Regulation Y and the Board's authority to Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire up require such modification or termination of the activi- to 25 percent of the voting shares of BHC Securities, ties of a holding company or any of its subsidiaries as Inc., Philadelphia, Pennsylvania ("Company"), a the Board finds necessary to assure compliance with company that will be organized to engage in discount the provisions and purposes of the Act and the Board's securities brokerage activities. This activity has been regulations and orders issued thereunder, or to pre- determined by the Board to be closely related to vent evasion thereof. banking and thus permissible for bank holding compa- The proposed activities shall not commence later nies. (12 CFR § 225.4(a)(15)). than three months after the effective date of this Notice of the application, affording interested per- Order, unless such period is extended for good cause sons an opportunity to submit comments and views, by the Board, or by the Federal Reserve Bank of was duly published in the Federal RegisterThe time Chicago. for filing comments and views has expired, and the By order of the Board of Governors, effective Board has considered the application and all com- November 16, 1983. ments received in light of the factors set forth in section 4(c)(8) of the Act. Voting for this action: Chairman Volcker and Governors Applicant, with $11.6 billion in total consolidated Martin, Wallich, Partee, and Gramley. Voting against this assets, is the second largest commercial banking orgaaction: Governors Teeters and Rice. nization in Pennsylvania.2 Applicant also engages, through certain of its subsidiaries, in various permissi- JAMES MCAFEE, ble nonbanking activities, including consumer and [SEAL] Associate Secretary of the Board commercial lending, mortgage banking, credit related insurance activities, and leasing activities. BHC Securities, Inc., is a nonoperating company that will be organized by Applicant. Applicant will be Dissenting Statement of Governors Teeters and Rice the largest single shareholder of Company and the only shareholder owning in excess of 5 percent of the voting We dissent from the Board's decision on this applicashares of Company. Moreover, Provident National tion for the same reasons expressed in our dissent to Bank, a subsidiary of Applicant, will be retained by the Board's approval of the application of Citizens Company under a long term contract to provide man- Fidelity Corporation to establish de novo a national agement and administrative services to Company. bank in Ohio. Accordingly, the Board concludes that Applicant will We believe that the acquisition of so-called "noncontrol Company within the meaning of the Act. The bank banks" seriously undermines the fundamental remaining shareholders of Company will be bank policies of the Bank Holding Company Act and threatholding companies, each of which will acquire less ens to significantly alter the national banking structure than 5 percent of the voting shares of Company without Congressional action on the underlying policy pursuant to section 4(c)(6) of the Act.3 issues. Moreover, the Ohio Superintendent of Banks has objected to the application as contrary to state law. We also note that there are other alternatives by which Applicant could accomplish its objections that do not present the adverse precedential effects of this proposal. In our view, these are sufficiently adverse 1. 48 Federal Register 42,867 (September 20, 1983). factors to require denial of this application. 2. All banking data are as of June 30, 1983. 3. The Board has determined that the ownership interests of the additional investors would not put these investors in a position to November 16, 1983 control Company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 Federal Reserve Bulletin • December 1983 Company proposes to provide discount securities services to financial institutions that are not shareholdbrokerage services on behalf of its shareholders and ers of Company. other financial institutions. Company will buy and sell Accordingly, after careful review of the application securities solely as agent on the order and for the and other facts of record, the Board concludes that account of customers, and, specifically, will execute there is no evidence upon which to conclude consumand confirm trades in securities, clear transactions, mation of this proposal would result in unfair competiaccept receipt and delivery of securities, collect divi- tion, conflicts of interest, unsound banking practices, dends, and maintain customer records. Company will or other substantially adverse effects. offer only discount securities brokerage services and Based upon the foregoing and other considerations will not offer investment advice or research services. reflected in the record, the Board has determined that Company expects in the future to extend margin the balance of the public interest factors that the Board credit in conformity with the Board's Regulation T is required to consider under section 4(c)(8) of the Act, (12 C.F.R. Part 220), and to carry its customers' is favorable. Accordingly, the application is hereby temporary credit balances awaiting investment (paying approved. interest on some of them). The services of Company This determination is subject to the conditions set will be offered from an office in Philadelphia to share- forth in section 225.4(c) of Regulation Y (12 C.F.R. holders of Company and other financial institutions § 225.4(c)) and the Board's authority to require such throughout the United States. Company will not pur- modification or termination of the activities of a holdchase or sell securities for its own account, engage in ing company or any of its subsidiaries as the Board securities dealing or underwriting, or provide invest- finds necessary to assure compliance with the proviment advice or research services. sions and purposes of the Act and the Board's regula- In determining whether the proposed activities are tions and orders issued thereunder, or to prevent "a proper incident to banking or managing or control- evasion thereof. ling banks," section 4(c)(8) of the Act requires the The proposed activities shall not commence later Board to consider whether performance of the pro- than three months after the effective date of this posed activity by an affiliate of a bank holding compa- Order, unless such period is extended for good cause ny "can reasonably be expected to produce benefits to by the Board or by the Federal Reserve Bank of the public, such as greater convenience, increased Cleveland. competition, or gains in efficiency, that outweigh By order of the Board of Governors, effective possible adverse effects, such as undue concentration November 30, 1983. of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices." Voting for this action: Chairman Volcker and Governors (12 U.S.C. § 1843(c)(8)). On the basis of the record of Martin, Wallich, Partee, Rice, and Gramley. Absent and not voting: Governor Teeters. the application, the Board finds that consummation of this proposal can reasonably be expected to produce significant public benefits in the form of increased JAMES MCAFEE, [SEAL] Associate Secretary of the Board competition, greater convenience, and increased efficiency in the provision of securities brokerage services, that outweigh possible adverse effects. The provision of discount securities brokerage services is a highly competitive business, and the addition Society Corporation, of Company as a wholesale provider of these services Cleveland, Ohio to financial institutions for use by their customers may be expected to have a generally positive effect on Order Approving Application to Engage competition in the market for discount securities bro- in Management Consulting Activities kerage services. Shareholders of Company will not be required to use the services of Company and may Society Corporation, Cleveland, Ohio, a bank holding provide similar services in competition with Company. company within the meaning of the Bank Holding Moreover, the proposal will not result in an unfair Company Act ("Act"), has applied for the Board's competitive advantage to shareholders of Company approval under section 4(c)(8) of the Act (12 U.S.C. because similar discount securities brokerage services § 1843(c)(8)) and section 225.4(b)(2) of the Board's are widely available to nonshareholders of company Regulation Y (12 C.F.R. § 225.4(b)(2)), to engage in from numerous other sources, shareholders of Compa- providing management consulting services to Bancny will not be limited to institutions in any defined Systems Association, Rocky River, Ohio ("Compageographic area, and Company expects to offer its ny"), a nonprofit, nondepository corporation orga- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 927 nized to operate a credit card association for rights of Company and various senior officers of depository institution members. Applicant's bank subsidiaries serve as trustees of Notice of the application, affording interested per- Company, along with trustees representing the other sons an opportunity to submit comments on the pro- members. In view of the nature of Company, which is posal, has been duly published. (48 Federal Register diversely owned and serves essentially as an opera- 33,349). The time for filing comments has expired and tions subsidiary for Applicant and Company's other the Board has considered the application and all member institutions, the Board does not believe that comments received in light of the public interest the provision of management consulting services by factors set forth in section 4(c)(8) of the Act. Applicant would enable it to exercise control over any Applicant, a bank holding company by virtue of its depository institution. ownership of twelve subsidiary banks, is the sixth There is no evidence in the record to indicate that largest banking organization in Ohio, with total depos- the transaction will result in unfair competition, conits of $3 billion, representing 6.3 percent of total flicts of interest, unsound banking practices, or any deposits in commercial banks in the state.1 Applicant other adverse effects. engages through subsidiaries in a number of permissi- Based on the foregoing and other considerations ble nonbanking activities, including the provision of reflected in the record, the Board has determined that management consulting services to nonaffiliated de- the balance of the public interest factors that the Board pository institutions. Applicant proposes to provide is required to consider under section 4(c)(8) is favorthese same services to Company. able. Accordingly, the application is hereby approved. Company provides credit card processing and relat- This determination is subject to the conditions set ed services for approximately 130 commercial banks forth in section 225.4(c) of Regulation Y and to the and savings and loan associations with MasterCard or Board's authority to require such modification or VISA credit card operations that collectively own all termination of the activities of a holding company or of the voting rights of Company. Applicant owns 18.8 any of its subsidiaries as the Board finds necessary to percent of the total voting rights of Company. assure compliance with the provisions and purposes of The Board has previously determined that the provi- the Act and the Board's regulations and orders issued sion of management consulting advice to nonaffiliated thereunder, or to prevent evasion thereof. The transdepository institutions is closely related to banking action shall be made not later than three months after within the meaning of section 4(c)(8) of the Act. the effective date of this Order, unless that period is (12 C.F.R. § 225.4(a)(12)). The provision of manage- extended for good cause by the Board or by the ment consulting services to Company can be viewed Federal Reserve Bank of Cleveland, acting pursuant to as tantamount to the provision of such services indi- delegated authority. rectly to the depository institutions that own it. Since By order of the Board of Governors, effective Regulation Y permits Applicant to provide manage- November 14, 1983. ment consulting advice directly to these depository institutions, the Board has determined that the provi- Voting for this action: Chairman Volcker and Governors sion of such services indirectly through Company is Martin, Wallich, Partee, Teeters, Rice, and Gramley. consistent with Regulation Y. Moreover, Company performs only functions that would be permissible for JAMES MCAFEE, a depository institution and the services provided by [SEAL] Associate Secretary of the Board Company involve traditional banking functions. Accordingly, the Board has determined that the proposal Orders Issued Under Sections 3 and 4 of Bank is encompassed within the existing provision of Regu- Holding Company Act lation Y authorizing management consulting activities by bank holding companies. Allied Irish Banks Limited, Regulation Y prohibits a bank holding company Dublin, Ireland from owning or controlling any equity securities or having any common management officials with an Order Approving Acquisition of a Bank institution to which it provides management consulting services. This provision is intended to prevent a bank Allied Irish Banks Limited, Dublin, Ireland, has apholding company from exercising control over client plied for the Board's approval under section 3(a)(1) institutions to which it provides management consultof the Bank Holding Company Act (12 U.S.C. ing advice. Applicant owns 18.8 percent of the voting § 1842(a)(1)) ("the Act") to become a bank holding company through the acquisition of up to 60 percent of 1. All deposit data are as of December 31, 1982. the voting shares of First Maryland Bancorp, Balti- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 Federal Reserve Bulletin • December 1983 more, Maryland, a registered bank holding company comments received in light of the factors set forth in by virtue of its ownership of The First National Bank section 3(c) of the Act, the considerations specified in of Maryland, Baltimore, Maryland, and First Omni section 4 of the Act, and the purposes of the Edge Act. Bank, N.A., Millsboro, Delaware. Allied Irish Banks Allied Irish Banks Limited, with total assets of Limited has also applied for the Board's approval approximately $7.9 billion, is the largest banking orgaunder section 4(c)(8) of the Act (12 U.S.C. nization in Ireland and ranks 173rd in terms of deposits § 1843(c)(8)) to acquire the following nonbanking sub- among banking institutions in the world.1 In the Unitsidiaries of First Maryland Bancorp: First Manufac- ed States, Allied Irish Banks Limited operates tured Housing Credit Corporation, Albany, New branches in New York, New York, and Chicago, York, which is engaged in financing the purchase of Illinois. Although the International Banking Act of mobile homes in Georgia, Kentucky, New York, 1978 ("IBA") (12 U.S.C. § 3101 et seq.) generally North Carolina, Pennsylvania, South Carolina, Virgin- prohibits a foreign bank from operating branches in ia, and West Virginia; Markwood Agency, Albany, more than one state, these offices are permitted under New York, which is engaged in providing credit life, section 5(b) of the IBA because they were opened accident and health, and property and casualty insur- before July 27, 1978. Allied Irish Banks Limited had ance directly related to extensions of credit by First originally selected New York as its home state under Manufactured Housing Credit Corporation; First Car- the Board's Regulation K (12 C.F.R. § 211.22(b)), but olina Financial Corporation, Greenville, South Caroli- has notified the Board of its intention to change its na, which is engaged in making, acquiring, and servic- home state to Maryland pursuant to the provision of ing loans and other extensions of credit for its own Regulation K permitting a one-time change of home account and for the account of others, and acting as states (12 C.F.R. § 211.22(c)). Under section 5(a) of agent for the sale of credit life, and accident and health the IBA (12 U.S.C. § 3103(a)), Allied Irish Banks Limited may acquire banks in other states where the insurance related to those extensions of credit from acquisition is not prohibited by section 3(d) of the Act offices in North Carolina, South Carolina and Georgia; (12 U.S.C. § 1842(d)). The Board concludes that the First Maryland Credit Corporation, Baltimore, Maryacquisition of First Maryland Bancorp by Allied Irish land, which is engaged throughout Maryland in mak- Banks Limited is consistent with section 5(a) of the ing, acquiring, and servicing loans and other exten- IBA (12 U.S.C. § 3103(a)) and section 3(d) of the Bank sions of credit for its own account and the account of Holding Company Act (12 U.S.C. § 1842(d)).2 others, and acting as agent for the sale of credit life, and accident and health insurance related to those First Maryland Bancorp, with consolidated assets of extensions of credit; First Maryland Leasecorp, Balti- $3.4 billion, is the second largest commercial banking more, Maryland, which is engaged in leasing real and organization in Maryland. The banking subsidiaries of personal property and equipment in Maryland; First First Maryland Bancorp are The First National Bank Maryland Life Insurance Company, Phoenix, Arizo- of Maryland, Baltimore, Maryland, and First Omni na, which is engaged in underwriting, as a reinsurer, Bank, Millsboro, Delaware. The First National Bank credit life, and accident and health insurance related to of Maryland is the third largest commercial banking extensions of credit by subsidiaries of First Maryland institution in Maryland, with approximately $1.8 bil- Bancorp in Maryland, Delaware, and Arizona; First lion in total domestic deposits, representing approxi- Maryland Mortgage Corporation, Baltimore, Mary- mately 11.9 percent of the total deposits in commercial land, which is engaged in mortgage lending activities, banking institutions in Maryland. First Omni Bank, acting as an investment advisor in connection with with $12.5 million in deposits, is one of the smaller investments in real property, and leasing real proper- commercial banking institutions in Delaware and enty, all in Maryland; and, First Maryland Cheque gages primarily in credit card operations. Applicant Corporation, Baltimore, Maryland, which is engaged does not operate any banking institutions in Maryland in the sale of retail money orders and the issuance and or Delaware. Based on all the facts of record, the sale of travelers' checks in Delaware and Maryland. Board concludes that consummation of the proposed transaction would have no adverse effects on either Allied Irish Banks Limited also proposes to acquire First Maryland International Banking Corporation, Baltimore, Maryland, which is a corporation organized pursuant to section 25(a) of the Federal Reserve 1. All banking data are as of March 31, 1983. Act (the "Edge Act") (12 U.S.C. § 611 et seq.). 2. The Maryland Bank Commissioner requested that the State Notice of the applications, affording interested per- Attorney General issue an opinion concerning the permissibility of the acquisition proposed by Applicant under Maryland law. The Attorney sons opportunity to submit comments, has been given General issued a formal opinion concluding that Maryland law may in accordance with sections 3 and 4 of the Act. The not be applied so as to prohibit the proposed acquisition. (Opinion No. time for filing comments and views has expired, and 83-030 (July 14, 1983)). The Board concurs in this position and, accordingly, has determined that these provisions of Maryland law do the Board has considered the applications and all not present a bar to approval of this application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 929 existing or potential competition in any relevant mar- Accordingly, the Board finds that the acquisition of ket and would not increase the concentration of re- First Maryland International Banking Corporation by sources in any relevant area. Thus, competitive con- Allied Irish Banks Limited would be in the public siderations under section 3 of the Act are consistent interest. with approval of the application. Based on all the facts of record and the commit- The financial and managerial resources of Applicant ments made by Applicant, the Board has determined appear generally satisfactory and its prospects appear that the applications under sections 3 and 4 of the Act favorable. The financial and managerial resources of and section 25(a) of the Federal Reserve Act should First Maryland Bancorp and its bank subsidiaries also be, and hereby are, approved. appear generally satisfactory and their prospects ap- The acquisitions shall not be consummated before pear favorable, especially in light of commitments by the thirtieth day following the effective date of this Allied Irish Banks Limited to provide a total of $86 Order or later than three months after the effective million in new equity capital to First Maryland Ban- date of this Order, unless such period is extended by corp upon completion of the proposed acquisition and the Board or the Federal Reserve Bank of Richmond, to immediately provide $15 million of this new equity pursuant to delegated authority. The determinations capital to First National Bank of Maryland. Based on herein as to nonbank activities are subject to the these commitments and all the facts of record, the conditions set forth in section 225.4(c) of Regulation Y Board has determined that considerations under sec- (12 C.F.R. § 225.4(c)) and to the Board's authority to tion 3 of the Act relating to banking factors and to the require such modification or termination of the activiconvenience and needs of the communities to be ties of a bank holding company or any of its subsidiarserved are consistent with approval of the application. ies as the Board finds necessary to assure compliance Allied Irish Banks Limited has also applied, pursu- with the provisions and purposes of the Act and the ant to section 4(c)(8) of the Act, to acquire the Board's regulations and orders issued thereunder, or nonbanking subsidiaries of First Maryland Bancorp. to prevent evasion thereof. Allied Irish Banks Limited and First Maryland Ban- By order of the Board of Governors, effective corp do not conduct any nonbanking activities in the November 21, 1983. same markets.3 Accordingly, approval of this proposal Voting for this action: Chairman Volcker and Governors would not result in undue concentration of resources, Martin, Wallich, Partee, Teeters, and Gramley. Absent and decreased or unfair competition, conflicts of interests, not voting: Governor Rice. unsound banking practices, or other effects adverse to JAMES MCAFEE, the public interest. Accordingly, the Board has deter- [SEAL] Associate Secretary of the Board mined that considerations relating to the public interest factors under section 4 of the Act are consistent with approval of this application. The financial and managerial resources of Applicant BancOklahoma Corporation, also are consistent with its acquisition of First Mary- Tulsa, Oklahoma land Bancorp's Edge Corporation. The acquisition of First Maryland International Banking Corporation by Order Approving Acquisitions of Banks and Bank Allied Irish Banks Limited would result in the continu- Holding Companies and Applications To ation of the international services currently provided, Engage In Mortgage Banking and Insurance and is consistent with the purposes of the Edge Act. Underwriting Activities BancOklahoma Corporation, Tulsa, Oklahoma, a bank holding company within the meaning of the Bank 3. On July 27, 1983, Allied Irish Banks Limited announced its Holding Company Act ("Act") (12 U.S.C. § 1841 intention to make an offer to acquire all the outstanding voting shares of the Insurance Corporation of Ireland Limited ("ICI"). Allied Irish et seq.), has applied for the Board's approval under Banks Limited already directly owns 24.9 percent of the shares of ICI. section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to ICI currently conducts its operations entirely outside the United acquire the following bank holding companies and States, with the exception of activities through a branch office in Chicago, Illinois. Allied Irish Banks Limited has not applied for banks: American Bancshares, Tulsa, Oklahoma; Boapproval to conduct general insurance activities in the United States states Investment Company, Tulsa, Oklahoma; Citiand has committed to arrange its affairs with respect to ICI so as to conform with the requirements of the IB A and the Board's regulations Banko, Tulsa, Oklahoma; Quatro Corporation, Tulsa, within 18 months of the date of approval of this application. Allied Oklahoma; SFC Enterprises, Tulsa, Oklahoma; Affili- Irish Banks Limited is a qualifying foreign banking organization within ated Bank of Broken Arrow, N.A., Broken Arrow, the meaning of section 211.23(b) of Regulation K (12 C.F.R. § 211.23(b)) and, therefore, may continue to engage through ICI in Oklahoma; Affiliated Bank of Sapulpa, N.A., Sapulpa, general insurance activities outside the United States (and subject to Oklahoma; First Bank in Claremore, Claremore, Oklathe above commitment) on the basis of sections 2(h) and 4(c)(9) of the homa; and Southwest Tulsa Bank, Tulsa, Oklahoma. Act and the Board's Regulation K implementing these sections. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 Federal Reserve Bulletin • December 1983 As a result of these acquisitions, Applicant would All of the bank holding companies and banks to be acquire nine additional banks. acquired by Applicant, except for American Banc- Applicant has also applied under section 4(c)(8) of shares, Tulsa, Oklahoma ("American"), compete in the Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b) of the Tulsa banking market2 where Applicant competes. the Board's Regulation Y (12 C.F.R. § 225.4(b)) to Applicant is the largest banking organization and Apacquire Affiliated Bancs Incorporated, Tulsa, Oklaho- plicant's subsidiary bank is the largest of 53 banks in ma ("Bancs"). Bancs will engage in the nonbanking the Tulsa banking market, controlling total deposits of activity of underwriting credit life and credit accident approximately $1.2 billion, representing 23.2 percent and health insurance policies sold in connection with of total deposits in commercial banks in the market. extensions of credit by Applicant's subsidiaries. Ap- The bank holding companies and banks to be acquired plicant has also applied to expand the mortgage bank- together rank as the fourth largest banking organizaing activities of its wholly- owned subsidiary, BancOk- tion in the market, controlling total deposits of $336.8 lahoma Mortgage Corporation, Tulsa, Oklahoma million, representing 6.4 percent of the market. Upon ("Mortgage Corporation"), to cover the entire state of consummation of this proposal, Applicant would re- Oklahoma. The Board has previously determined that main the largest banking organization in the market, mortgage banking and credit insurance underwriting controlling total deposits of approximately $1.6 billion, activities are closely related to banking and permissi- representing 29.6 percent of total deposits in commercial banks in the market. ble for bank holding companies. (12 C.F.R. § 225.4(a)(1) and (10)). The Tulsa banking market is moderately concentrat- Notice of these applications, affording opportunity ed with a four-firm concentration ratio of 56.0 percent for interested persons to submit comments and views, and a Herfindahl-Hirshman Index ("HHI") of 1123 has been given in accordance with sections 3 and 4 of based on total deposits in commercial banks in the the Act. (48 Federal Register 40957 (1983)). The time market. Upon consummation of this proposal, the for filing comments and views has expired, and the four-firm concentration ratio would increase by 6.2 Board has considered these applications and all com- percentage points to 62.2 percent and the HHI would ments received in light of the factors set forth in increase by 298 points to 1421.3 The acquisition of the section 3(c) of the Act (12 U.S.C. § 1842(c)) and the fourth largest banking organization in the market by considerations specified in section 4(c)(8) of the Act the largest banking organization in the market could (12 U.S.C. § 1843(c)(8)). well be cause for denial of an application where, after Applicant, with one subsidiary bank, is the third the merger, the applicant would control 29.6 percent of largest banking organization in Oklahoma with total total deposits, in the absence of the mitigating circumdeposits of $1.2 billion, representing 4.85 percent of stances. The structure of the Tulsa banking market, total deposits in commercial banks in the state.1 The state law affecting bank expansion, substantial thrift competition and a trend toward deconcentration of the bank holding companies and banks to be acquired are Tulsa banking market are important mitigating factors. commonly owned and together rank as the seventh First, numerous banking alternatives would remain largest banking organization in Oklahoma with total after consummation of the proposal. Moreover, Okladeposits of $382.1 million, representing 1.53 percent of homa state law prohibits banks from establishing more total deposits in commercial banks in the state. Upon than two full-service branches, and the branches must consummation of this proposal, Applicant would rebe located either in the city where the bank has its main the third largest banking organization in the head office or within 25 miles of the head office of the state, controlling total deposits of approximately $1.6 bank, except in a city or town where another bank is billion, representing 6.38 percent of total deposits in headquartered.4 Further, Oklahoma state law prohibcommercial banks in the state. Oklahoma is and would its bank holding companies from chartering banks remain upon consummation of this proposal one of the least concentrated states in the United States in terms of concentration of banking resources. Accordingly, it is the Board's view that consummation of this proposal would not have a significant adverse effect on the concentration of banking resources in Oklahoma. 2. The Tulsa banking market is defined as the Tulsa Ranally Metro Area ("Tulsa RMA"). 3. Under the United States Justice Department Merger Guidelines (June 14, 1982), a market with an HHI between 1000 and 1800 is moderately concentrated. The Justice Department has stated that where a post-merger market HHI is between 1000 and 1800 and the merger produces an increase in the HHI of 100 points or more, the Justice Department is more likely than not to challenge such a merger. 1. All banking data are as of December 31, 1982. 4. Okla. Stat. Ann. tit. 6, § 501 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 931 de novo or from acquiring any banks chartered after cial banks in the market. The Board has considered the July 1, 1983, until such banks have been in operation effects of Applicant's proposal on probable future for a period of five years.5 Therefore, Applicant's competition in this market and has considered Appliability to expand in the Tulsa banking market is limited cant's proposal in light of its proposed guidelines for to acquisitions of existing competitors. determining whether an intensive examination of a Thrift institutions also have a significant effect on proposed market extension merger or acquisition is competition in the Tulsa banking market. Of the 12 warranted.9 The Mayes County banking market has a depository institutions with deposits of more than $100 total of only $118.9 million in deposits in commercial million in the Tulsa market, four are savings and loans banks in the market. The Board's proposed guidelines and one is a credit union. Savings and loans in the require at least $250 million in total deposits in com- Tulsa banking market are advertising that they provide mercial banks in a particular market in order to trigger any services that commercial banks may provide. intensive scrutiny of a proposal involving that market. Also, savings and loans control approximately 21.8 Further, the Board notes that Applicant is prohibited percent of the total deposits in banks and savings and by Oklahoma state law from chartering any banks loans, as well as 12.5 percent of all business real estate de novo, acquiring any newly established banks, or loans outstanding at commercial banks and savings establishing branches of its subsidiary bank in Mayes and loans,6 and 17 percent of households in the market County. Accordingly, Applicant is prohibited from maintain their primary checking accounts at thrifts. expanding into new markets, except by acquiring existing competitors. The Board concludes that con- If the deposits of savings and loans were taken into summation of this proposal would not have a signifiaccount in computing market shares, the Tulsa bankcant adverse effect on probable future competition in ing market would be regarded as unconcentrated with the Mayes County banking market. a four-firm concentration ratio of 48.8 percent and a HHI of 792 based on total deposits in commercial The financial and managerial resources of Applibanks and savings and loan associations in the market. cant, its subsidiaries, and of the banks and bank Upon consummation, the four-firm concentration ratio holding companies to be acquired are considered genwould increase by 5 percentage points to 53.8 percent, erally satisfactory, and their future prospects appear and the HHI would increase 174 points to 966. Appli- favorable. Affiliation with Applicant would permit the cant's market share would increase from 17.5 percent banks and bank holding companies to be acquired to to 22.5 percent. offer to their customers various international financial The anticompetitive effects of this proposal are services, cash management services, automated clearfurther mitigated by the trend toward deconcentration ing house transactions, corporate trust services, and in the Tulsa banking market and the growth in the personal trust services not currently available to their market's population and banking resources.7 Based on customers. Accordingly, factors relating to the convethis trend toward deconcentration, the competitive nience and needs of the communities to be served lend role of savings and loans, the impact of state law, and some weight toward approval and outweigh any adother facts of record, the Board has determined that verse competitive effects that might result from conconsummation of this proposal would not have a summation of this proposal. significant adverse effect on existing competition in Applicant also has applied to acquire Bancs and the Tulsa banking market. engage in insurance underwriting activities and to As noted above, Applicant also proposes to acquire expand the mortgage banking activities of Mortgage American. American, with one subsidiary bank, is the Corporation throughout the state of Oklahoma. There largest of six banking organizations in the Mayes is no evidence in the record to indicate that approval of County banking market8 where Applicant does not this proposal would result in adverse effects, such as compete, and controls total deposits of $45.3 million, undue concentration of resources, unfair competition, representing 38.1 percent of total deposits in commer- conflicts of interest or unsound banking practices. Both of the nonbanking activities proposed by Appli- 5. Okla. Stat. Ann. tit. 6, § 502 (1983). 9. "Proposed Policy Statement of the Board of Governors of the 6. Savings and loan data are as of September 30, 1982. Federal Reserve System for Assessing Competitive Factors Under the 7. The Tulsa banking market HHI fell from 1,886 in 1970 to 1,098 in Bank Merger Act and the Bank Holding Company Act," 47 Federal 1980, and the population of the Tulsa RMA grew approximately 24 Register 9017 (March 3, 1982). Although the proposed policy statepercent in that decade. ment has not been adopted by the Board, the Board is using the policy 8. The Mayes County banking market is defined as all of Mayes guidelines in its analysis of the effects of a proposal on probable future County, Oklahoma, except for the town of Langley. competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

932 Federal Reserve Bulletin • December 1983 cant should be pro-competitive since they would in- The Tulsa banking market is presently moderately crease the availability of these services in the relevant concentrated with a four-firm concentration ratio of market. Accordingly, the Board has determined that 56.0 percent and a HHI of 1123 based on total deposits the balance of the public interest factors it must in commercial banks in the market. Upon consummaconsider under section 4(c)(8) of the Act is consistent tion of this proposal, the four-firm concentration ratio with approval of these applications. would increase by 6.2 percentage points to 62.2 per- Based on the foregoing and other considerations cent and the HHI would increase by 298 points to reflected in the record, the Board has determined that 1421. the applications under sections 3(a)(3) and 4(c)(8) of Because the Tulsa banking market is moderately the Act should be and are hereby approved. The concentrated, the acquisition of the fourth largest proposed banking acquisitions shall not be consum- banking organization by the largest banking organizamated before the thirtieth calendar day following the tion in the market, resulting in Applicant controlling effective date of this Order, and neither those acquisi- 29.6 percent of total deposits in commercial banks in tions nor the proposed nonbanking transactions shall the market, provides adequate grounds for the Board be consummated later than three months after the to determine that this proposal will result in signifieffective date of this Order, unless such period is cantly adverse effects on existing competition in the extended for good cause by the Board or the Federal Tulsa banking market. Further, I believe that the Reserve Bank of Kansas City, acting pursuant to Board has erred in considering savings and loan assodelegated authority. The acquisition of Banc and the ciations and Oklahoma state law as mitigating factors expansion of the service area of Mortgage Company in its competitive analysis. While savings and loan are subject to the conditions set forth in section associations have been given significantly expanded 225.4(c) of Regulation Y, and to the Board's authority powers, they are not full competitors of banks. Acto require such modification or termination of the cordingly, I believe that thrifts should not be considactivities of a bank holding company or any of its ered in the Board's analysis of competitive factors subsidiaries as the Board finds necessary to assure under the Bank Holding Company Act. The fact that compliance with the provisions and purposes of the Oklahoma state law prohibits Applicant from expand- Act and the Board's regulations and orders issued ing by chartering de novo banks or by branching does thereunder, or to prevent evasion thereof. not mitigate the fact that consummation of this propos- By order of the Board of Governors, effective al will significantly increase concentration of banking November 30, 1983. resources in the Tulsa market. Also, while there has been a trend toward deconcentration of banking re- Voting for this action: Chairman Volcker and Governors sources in the Tulsa banking market, approval of this Martin, Wallich, Partee, Rice, and Gramley. Voting against application will reverse that trend. this action: Governor Teeters. Governor Wallich abstained Further, I would deny Applicant's proposal to acfrom voting on the application to acquire Affiliated Bancs quire American in the Mayes County banking market. Incorporated. Applicant, as the third largest banking organization in JAMES MCAFEE, Oklahoma controlling total deposits of $1.2 billion, is [SEAL] Associate Secretary of the Board clearly a potential entrant into the Mayes County banking market. American is the largest of six banking Dissenting Statement of Governor Teeters organizations in the Mayes County banking market, controlling total deposits of $45.3 million, representing I would deny these applications on the grounds that 38.1 percent of total deposits in commercial banks in the proposed acquisitions of these banks and bank the market. The Mayes County banking market is holding companies by Applicant would have signifi- highly concentrated with a three-firm concentration cantly adverse effects on existing competition in the ratio of over 80 percent. While Oklahoma state law Tulsa banking market and on probable future competi- may prohibit Applicant from entering the Mayes tion in the Mayes County banking market. County banking market by chartering a de novo bank Applicant, the largest banking organization in the or through branching, Oklahoma law does not prohibit Tulsa banking market, with 23.2 percent of total Applicant from acquiring any of the smaller competideposits in commercial banks in the market, proposes tors in the Mayes County banking market. Accordingto acquire the fourth largest banking organization in ly, consummation of this proposal would eliminate the the market, with 6.4 percent of total deposits in probability that Applicant would enter this market on a commercial banks in the market. Upon consummation procompetitive foothold basis. of this proposal, Applicant would control 29.6 percent I have previously indicated that the Board's proof total deposits in commercial banks in the market. posed guidelines regarding probable future competi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 933 tion would be difficult to enforce. (See InterFirst Applicant also has applied for the Board's approval Corporation, 69 FEDERAL RESERVE BULLETIN 470 under section 4(c)(8) of the Act (12 U.S.C. (1983)). The fact that the Mayes County banking § 1843(c)(8)) and section 225.4(b)(2) of the Board's market, with total deposits of $118.9 million, is too Regulation Y (12 C.F.R. § 225.4(b)(2)) to acquire small to meet the Board's guideline that a market County Tower's nonbanking subsidiary, Midwest Inshould have total deposits of $250 million to trigger vestment Advisory Services, Inc., St. Louis, Missouri intensive scrutiny of a particular proposal indicates ("Midwest"). Midwest is a registered investment adthat the guidelines do not realistically reflect the visor which manages portfolios for pension and profit adverse effects of the elimination of probable future sharing plans, financial institutions, individuals, encompetition. Applicant's proposal would eliminate a dowments, and others. Such investment advisory serprobable future entrant into the Mayes County bank- vices have been determined by the Board to be closely ing market. The size of the market has nothing to do related to banking under subsection 225.4(a)(5) of with the adverse effects of the elimination of Applicant Regulation Y (12 C.F.R. § 225.4(a)(5)). as a probable future entrant. Notice of the applications, affording opportunity for I believe that Applicant's proposals would have interested persons to submit comments and views, has significantly adverse effects on existing competition in been given in accordance with sections 3 and 4 of the the Tulsa banking market and on probable future Act. (48 Federal Register 34,808 (August 1, 1983)). competition in the Mayes County banking market that The time for filing comments and views has expired, would not be outweighed by any gains in the conve- and the Board has considered the applications and all nience and needs of the communities to be served. comments received in light of the factors set forth in Accordingly, I dissent from the Board's decision to section 3(c) of the Act (12 U.S.C. § 1842(c)) and the approve these applications. considerations specified in section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). November 30, 1983 Applicant, with deposits of $2.6 billion,2 is the third largest commercial banking organization within Missouri. County Tower, with deposits of $876 million, is Commerce Bancshares, Inc., the seventh largest commercial banking organization Kansas City, Missouri within Missouri. Upon its acquisition of County Tower, Applicant's share of total state deposits would Order Approving Acquisition of increase from 8.2 percent to 10.9 percent; Applicant's a Bank Holding Company ranking within the state would not be altered. The Board concludes that acquisition of County Tower Commerce Bancshares, Inc., Kansas City, Missouri, a would not have any significant adverse effect on the bank holding company within the meaning of the Bank concentration of banking resources in Missouri. Holding Company Act (the "Act"), has applied for the All but one of County Tower's subsidiary banks Board's approval under section 3 of the Act (12 U.S.C. operate within the St. Louis metropolitan banking § 1842) to acquire up to 100 percent of the voting market.3 Applicant controls 4.3 percent and County shares of County Tower Corp., Clayton, Missouri Tower controls 5.8 percent of total deposits in com- ("County Tower").1 As a result of the acquisition, mercial banks in the St. Louis market; they rank as the Applicant will indirectly acquire County Tower's nine fifth and fourth largest commercial banking organizasubsidiary banks: County Bank of Arnold, N.A., Arnold, Missouri; County Bank of Chesterfield, Chesterfield, Missouri; County Bank of House Springs, House Springs, Missouri; County Bank of Louisiana, Louisiana, Missouri; County Bank of Manchester, 2. Market and deposit data are as of December 31, 1982. Manchester, Missouri; County Bank of Richmond 3. The St. Louis banking market is approximated by the St. Louis Rand McNally Metro Area ("RMA"), which includes all of the City of Heights, Richmond Heights, Missouri; County Bank St. Louis and St. Louis County; portions of Franklin, Jefferson, of St. Louis, Clayton, Missouri; County Bank of Lincoln, and St. Charles Counties in Missouri; and portions of Jersey, Tower Grove, St. Louis, Missouri; and County Bank Macoupin, Madison, Monroe, and St. Clair Counties in Illinois. Only one banking subsidiary of County Tower operates within a of Webster Groves, Webster Groves, Missouri. banking market other than the St. Louis RMA. County Bank of Louisiana, Louisiana, Missouri ("Louisiana Bank"), operates within the Pike County market in which Applicant has no subsidiaries. The Pike County banking market is comprised of Pike County, Missouri, and the southern half of Pike County, Illinois. With $25.2 million in deposits, Louisiana Bank ranks sixth out of nine commercial banks in 1. Applicant intends to merge with County Tower after acquisition the market and controls 9.4 percent of commercial bank deposits in of a sufficient number of its shares. that market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 Federal Reserve Bulletin • December 1983 tions, respectively, therein. Upon consummation of increased competition would directly benefit the pubthe proposal, Applicant will become the third largest lic. Accordingly, based on the foregoing and other banking organization within the market. That market, facts of record, the Board concludes that the balance however, is unconcentrated, with a four-firm concen- of public interest factors under section 4(c)(8) of the tration ratio of 47.9 and a Herfindahl-Hirschman In- Act is favorable, and that the application to acquire dex ("HHI") of only 786. Consummation of Appli- County Tower's nonbank subsidiary should be apcant's proposal would increase the market's HHI 50 proved. points to 836 and the four-firm concentration ratio On the basis of the record, the applications are would rise to 52.2. Although the merger would elimi- approved for the reasons summarized above. The nate some existing competition between Applicant and acquisition pursuant to section 3 of the Act shall not be County Tower in the St. Louis banking market, the consummated before the thirtieth calendar day follow- Board does not believe that the effect of this transac- ing the effective date of the Order, or later than three tion on existing competition would be significant. The months after the effective date of this Order, unless St. Louis banking market is unconcentrated and nu- such period is extended for good cause by the Board or merous banking alternatives would remain in the mar- by the Federal Reserve Bank of Kansas City pursuant ket upon consummation. In addition, thrift institutions to delegated authority. Approval of the application to in the St. Louis banking market account for approxi- acquire the nonbanking subsidiary of County Tower mately one-third of total deposits in financial institu- and to engage in investment advisory activities are tions in that market. subject to the conditions set forth in section 225.4(c) of The financial and managerial resources and future Regulation Y and to the Board's authority to require prospects of Applicant, County Tower, and their re- such modification or termination of the activities of a spective subsidiaries are considered generally satisfac- holding company or any of its subsidiaries as the tory. Therefore, banking factors are consistent with Board finds necessary to assure compliance with the approval. The Board also concludes that consider- provisions and purposes of the Act and the Board's ations relating to the convenience and needs of the regulations thereunder, or to prevent evasion thereof. communities to be served are consistent with approval By order of the Board of Governors, effective of this application. Accordingly, the Board's judgment November 23, 1983. is that under section 3 of the Act the proposed transaction would be in the public interest and that the Voting for this action: Vice Chairman Martin and Goverapplication should be approved. nors Wallich, Partee, Teeters, Rice, and Gramley. Absent With respect to the application to acquire County and not voting: Chairman Volcker. Tower's existing nonbank subsidiary, the Board has determined that the balance of public interest factors JAMES MCAFEE, [SEAL] Associate Secretary of the Board prescribed by section 4(c)(8) of the Act warrant approval. Neither Applicant nor its subsidiaries are engaged in investment advisory services within the relevant market from which County Tower's Midwest Sun Banks, Inc., subsidiary derives its business. In light of the above, Orlando, Florida Midwest's relatively small size as an investment advisor, and the numerous competitors operating within Order Approving the Merger of Bank Holding the market, the Board concludes that consummation Companies and the Acquisition of Companies of this proposal would not have any significant adverse Engaged in Insurance and effects upon competition within the relevant market. Data Processing Activities There is no evidence in the record to indicate that Applicant's acquisition of County Tower's nonbank Sun Banks, Inc., Orlando, Florida, a bank holding subsidiary would result in any other adverse effects, company within the meaning of the Bank Holding such as undue concentration of resources, decreased Company Act ("Act"), has applied for the Board's or unfair competition, conflicts of interests, or un- approval under section 3(a)(5) of the Act (12 U.S.C. sound banking practices. Applicant's indirect acquisi- § 1842) to merge with Flagship Banks, Inc., Miami, tion of Midwest would provide Midwest with Appli- Florida ("Flagship"). As a result of the acquisition, cant's extensive knowledge and experience in and including all planned divestitures, Applicant administering large investment portfolios of personal would indirectly acquire 16 of Flagship's 28 subsidiary trusts, profit and pension sharing plans, and the like, banks. thereby strengthening the competitive posture of Mid- Applicant has also applied for the Board's approval west and increasing overall competition for investment under section 4(c)(8) of the Act (12 U.S.C. advisory services within the St. Louis area. Such § 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

Legal Developments 935 Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire centrated in terms of banking resources upon consum- Seaforth Inc., Miami, Florida, a company that is mation of the proposal. Accordingly, it is the Board's engaged in the activity of acting as an agent or broker view that consummation of this acquisition would not for the sale of credit life, accident, and health insur- have any significantly adverse effects on the concenance directly related to extensions of credit by subsid- tration of commercial banking resources in Florida. iaries of Flagship and Flagship Service Corporation, Applicant's subsidiary banks compete directly with Miami, Florida, a company that engages in data proc- Flagship's subsidiary banks in 22 banking markets. In essing activities. These activities have been deter- 12 of these markets, Applicant will divest all of Flagmined by the Board to be closely related to bank- ship's banking offices prior to consummation of the ing and permissible for bank holding companies merger.4 As a result of these divestitures, consumma- (12 C.F.R. § 225.4(a)(8) and (a)(9)), and this determina- tion of this proposal would not reduce the number of tion has not been affected by the recent amendments competitors or increase the concentration of banking to section 4(c)(8) of the Act limiting the permissible resources in these markets. Applicant has committed insurance activities of bank holding companies.1 that all of the proposed divestitures will take place on Notice of the applications, affording opportunity for or before consummation of the proposed merger.5 interested persons to submit comments, has been Accordingly, the Board finds that consummation of given in accordance with sections 3 and 4 of the Act. this proposal would have no significant adverse com- The time for filing comments has expired, and the petitive effect on these 12 markets.6 Board has considered the applications and all com- In the Fort Myers, Tampa, and Orlando banking ments received in light of the factors set forth in markets, Applicant proposes to divest of some of section 3(c) of the Act (12 U.S.C. § 1842(c)) and the Flagship's banking offices in order to alleviate the considerations specified in section 4(c)(8) of the Act. anticompetitive effects that might otherwise result Applicant is the third largest banking organization in from the consummation of this proposal. Applicant is Florida with 17 subsidiary banks that control aggregate the second largest commercial banking organization in deposits of $4.0 billion,2 representing 9.1 percent of the Fort Myers banking market, with six offices that the total deposits in commercial banks in the state. control total deposits of $231 million, representing 17 Flagship is the fourth largest banking organization in percent of the total deposits in commercial banks in the state, with 28 banking subsidiaries that control the market.7 Flagship is the market's sixth largest aggregate deposits of $2.4 billion, representing 5.5 commercial banking organization and operates four percent of the total deposits in commercial banks in offices in the market, with $53 million in deposits, the state. Upon consummation of the proposed acqui- representing 4 percent of the total deposits in commersition and all planned divestitures, Applicant's share cial banks in the market. The Fort Myers banking of the total deposits in commercial banks in the state market contains thirteen banks and is highly concenwould increase to 13 percent, and Applicant would trated, with the four largest commercial banking orgabecome the second largest commercial banking organi- nizations in the market controlling 76 percent of the zation in the state. Although the Board is concerned deposits of commercial banks in the market. A combiabout the effect of this merger of the third and fourth nation of Applicant and Flagship in the market would largest banking organizations in Florida on the concentration of banking resources within the state, certain conditions that would exist after the proposed acquisition mitigate that concern. A number of other large multibank holding companies, which are active competitors throughout the state, would remain upon consummation of this proposal, and the share of 4. These banking markets are: the north Osceola County, east Polk County, Port Charlotte, Putnam County, Sebring, Tallahassee, south commercial bank deposits held by the four largest Brevard County, Daytona Beach, Gainesville, north Lake County, banking organizations in Florida would increase to New Smyrna Beach, and Okeechobee County banking markets, all in Florida. 43.7 percent after consummation of the proposed 5. The Board's policy with regard to competitive divestitures merger.3 Thus, Florida would remain moderately con- requires that divestitures intended to cure the anticompetitive effects resulting from a merger or acquisition occur on or before the date of consummation of the merger to avoid the existence of anticompetitive effects. See Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE BULLETIN 190 (1982); InterFirst Corporation, 68 FEDERAL RESERVE BULLETIN 243 (1982). 6. The Department of Justice has informed the Board that it does not believe that the merger will have a significantly adverse effect on 1. See Gam-St Germain Depository Institutions Act of 1982, Pub. competition if the proposed divestitures are effectuated prior to or L. No. 97-320 § 601, 96 Stat. 1469, 1536-38 (1982). concurrently with consummation of the merger. 2. Unless otherwise indicated, deposit data are as of June 30, 1982. 7. The Fort Myers banking market is defined as Lee County, 3. Deposit data are as of December 31, 1982. Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 Federal Reserve Bulletin • December 1983 result in a single banking organization controlling 21 total of four offices and deposits of $172 million.10 percent of the total deposits in commercial banks in Including these acquisitions, Applicant would become the market and an increase in the market's four-firm the market's third largest commercial banking organiconcentration ratio from 76 percent to 80 percent. zation and would operate 12 offices with deposits of In order to minimize the competitive effects of the $307 million, which represents 11 percent of the total proposal in the Fort Myers market, Applicant pro- deposits in commercial banks in the market. Flagship poses to divest one of its offices to a savings and loan is the market's fourth largest commercial banking association that is not represented in the market. This organization and operates 10 offices in the Tampa office has deposits of $19 million, which represents 1.4 market, with $252 million in deposits, representing 9 percent of the market's deposits. After the proposed percent of the deposits of commercial banks in the divestiture, Applicant would control approximately 20 market. percent of the total deposits in commercial banks in In order to minimize the anticompetitive effects of the market. this proposal, Applicant proposes to divest six offices Although an acquisition of this size would normally with deposits of $64 million to a banking organization cause concern, the Board believes that the anticom- not presently represented in the Tampa banking marpetitive effects of the proposal are mitigated by a ket. This would leave Applicant with eight offices, number of factors. First, inasmuch as Applicant will controlling deposits of $495 million, representing 18 divest the office to an entity not presently in the percent of the total deposits in commercial banks in market, the total number of competitors in the market the market. Upon consummation of the proposal, will not decrease. In addition, the Board has consid- including the proposed divestiture, Applicant would ered the presence of 15 thrift institutions in the market become the market's second largest commercial bankthat hold deposits of $922 million, which is approxi- ing organization. mately 41 percent of the total deposits in the market. Although consummation of this proposal would The Board has previously indicated that thrift institu- eliminate some existing competition between Applitions have become, or at least have the potential to cant and Flagship in the Tampa banking market, become, major competitors of commercial banks.8 certain facts of record mitigate the competitive effects Thrift institutions already exert a considerable com- of the transaction. The Tampa banking market is not petitive influence in the market as providers of NOW highly concentrated, with the four largest commercial accounts and consumer loans, and state-chartered banking organizations in the market holding 61 percent thrift institutions have broad commercial lending and of the deposits of commercial banks in the market. The other powers. In this market, thrift institutions are, in Herfindahl-Hirschman Index ("HHI") in the market fact, engaged in the business of making commercial is 1249 and would increase by 105 points to 1354 upon loans and providing an alternative for such services in consummation of the proposal and the proposed divesthe Fort Myers market. Based upon the number, size titure.11 and market shares of these institutions in the Fort Furthermore, for reasons discussed above in con- Myers market, the Board has concluded that thrift nection with the Fort Myers market, the Board has institutions exert a significant competitive influence considered the presence of 16 thrift institutions in the that substantially mitigates the anticompetitive effects market that hold approximately 33 percent of the total of this proposal.9 deposits in the market. Based upon the size and In the Tampa banking market, Applicant presently activities of thrift institutions in the market, the Board operates eight offices with deposits of $135 million and concludes that thrift institutions exert a significant has filed applications to acquire two other banks with a competitive influence that substantially mitigates the anticompetitive effects of the proposal. In light of the above, the Board concludes that the acquisition would 8. Comerica Inc., 69 FEDERAL RESERVE BULLETIN 797 (1983); General Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); First Tennessee National Corporation, 69 FEDERAL RE- 10. The Tampa banking market is approximated by Hillsborough SERVE BULLETIN 298 (1983). County and the town of Land O'Lakes, both in Florida. 9. If the thrift institutions in the Fort Myers banking market are 11. Under the Department of Justice Merger Guidelines, a market included in the calculation of market concentration, the share of total in which the post-merger HHI is between 1,000 and 1,800 is considdeposits held by the four largest organizations in the market (one of ered moderately concentrated. In such markets, the Department is which is a thrift institution) is 59 percent and Applicant's share is 11.7 more likely than not to challenge a merger that produces an increase in percent. the HHI of 100 points or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 937 not have any significant adverse effects on competition ous banking organizations would remain in these marin the Tampa market.12 kets. On the basis of the above facts and other facts of Applicant is the largest commercial banking organi- record, the Board concludes that the effects of conzation in the Orlando banking market, and controls summation of the proposal on existing competition in $960 million in deposits, which represents 39 percent the central Brevard County, Indian River County, of the total deposits in commercial banks in the Jacksonville, Miami-Fort Lauderdale, eastern Palm market.13 Flagship is the eighth largest commercial Beach, Pinellas County, and west Polk County bankbanking organization in the market with deposits of ing markets would not be substantially to lessen com- $86 million, representing 3.5 percent of the total de- petition in these markets. posits of commercial banks in the market. Applicant The Board has considered the effects of this proposplans to divest all but two of Flagship's offices to a al on probable future competition in the 15 markets in savings and loan association already represented in the which Applicant and Company do not compete directmarket. Upon consummation of the proposal, includ- ly and in the 12 markets in which complete divestitures ing the proposed divestiture, Applicant's market share will occur. The Board has also examined the proposal will increase by only 0.3 percent. In addition, the in light of its proposed guidelines for assessing the Orlando banking market would not become highly competitive effects of market extension mergers and concentrated after the consummation of the proposal, acquisitions.15 In evaluating the effects of a proposed with the four largest firms in the market controlling 73 merger or consolidation upon probable future competipercent of the market. In light of the above, particular- tion, the Board considers market concentration, the ly the de minimis increase in Applicant's market share number of probable future entrants into the market, as a result of the proposed transaction, the Board the size of the bank to be acquired and the attractiveconcludes that the acquisition would not have any ness of the market for entry on a de novo or foothold significant adverse effects on competition in the Orlan- basis absent approval of the acquisition. In none of do market. these markets would the proposed merger require intensive analysis under the Board's proposed guide- Applicant and Flagship compete in seven markets in which no divestitures are proposed.14 Although con- lines. After consideration of these factors in the context of the specific facts of this case, the Board summation of this proposal would eliminate some concludes that consummation of this proposal would existing competition between Applicant and Flagship not have any significant adverse effects on probable in these markets, certain facts of record mitigate the future competition in any relevant market. competitive effects of the proposal in these markets. Upon consummation of the acquisition, Applicant The financial and managerial resources of Appliwould control no more than 12 percent of the total cant, Flagship and their subsidiaries are regarded as deposits in commercial banks in any of the markets. generally satisfactory, and their future prospects ap- Five of these markets are not considered concentrated pear favorable. Thus, banking factors are consistent in terms of banking resources. In two of the markets, with approval of the application. Considerations relat- Indian River County and Jacksonville, the four largest ing to the convenience and needs of the communities banking organizations control more than 75 percent of to be served are also consistent with approval of the the total commercial bank deposits in the market. application. Although these two markets are considered concen- Applicant has also applied, pursuant to section trated, Applicant would not become one of the four 4(c)(8) of the Act, to acquire Seaforth, Inc., Miami, largest banking organizations in either of these mar- Florida ("Seaforth"), Miami, Florida, a wholly-owned kets upon consummation of the proposal and numer- subsidiary of Flagship, which acts as agent for insurance related to extensions of credit made by Flagship's subsidiary banks or its other subsidiaries, and Flagship 12. If thrift institutions are included in the calculation of market concentration, the share of deposits held by the four largest organizations in the market is 52.5 percent, the HHI declines to 1136, and the combined market share of Bank and Applicant drops to 12.5 percent. 15. "Policy Statement of the Board of Governors of the Federal 13. The Orlando banking market is approximated by Orange Coun- Reserve System for Assessing Competitive Factors Under the Bank ty and Seminole County, except for the towns of Ovideo and Sanford, Merger Act and the Bank Holding Company Act," (47 Federal all in Florida. Register 19017 (March 3, 1982)). While the proposed policy statement 14. These are: central Brevard County, Indian River County, has not been approved by the Board, the Board is using the policy Jacksonville, Miami-Fort Lauderdale, eastern Palm Beach, Pinellas guidelines as part of its analysis of the effect of a proposal on probable County, and west Polk County. future competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

938 Federal Reserve Bulletin • December 1983 Services Corporation, Miami, Florida, a company that Dissenting Statement of Governor Teeters provides data processing services to bank subsidiaries of Flagship. Although Applicant engages, through I would deny this application on the grounds that the several subsidiaries in the sale of credit related insur- effect of the proposed merger of Flagship and Sun ance, no adverse competitive effect would result from Banks ("Sun") may be substantially to lessen compethis acquisition because the activities of Seaforth tition in the state of Florida as a whole and in many of would be limited to insurance directly related to exten- the local markets affected by this transaction. This sions of credit made by the subsidiaries of Flagship merger will result in the elimination of the fourth acquired through this transaction. Accordingly, it does largest bank holding company in the state, which is a not appear that Applicant's acquisition of these sub- strong competitor that operates throughout the state of sidiaries would have any significant adverse effect Florida. I believe that the approval of this proposal upon existing or potential competition. continues an undesirable trend which will have the Furthermore, there is no evidence in the record to effect of eliminating all but a few large statewide indicate that approval of this proposal would result in banking companies in Florida. undue concentration of resources, decreased or unfair I do not believe that the divestitures proposed by competition, conflicts of interests, unsound banking Sun are sufficient to eliminate the anticompetitive practices or other adverse effects on the public inter- effect of the transactions in the Fort Myers, Orlando est. Accordingly, the Board has determined that the and Tampa banking markets. Both the Fort Myers and balance of the public interest factors it must consider Orlando banking markets are relatively concentrated under section 4(c)(8) of the Act is favorable and and Applicant is already a significant competitor in consistent with approval of the applications to acquire each market. In Orlando, Sun already controls almost Seaforth, Inc. and Flagship Services Corporation, Inc. 40 percent of the total deposits in commercial banks in Based on the foregoing and the facts of record, the the market. In these circumstances, I believe that any Board has determined that the applications under increase in Sun's market share that is obtained by section 3(a)(5) and 4(c)(8) of the Act should be and acquisition or merger is unacceptable. hereby are approved subject to the condition that Sun does not propose to divest any offices in seven completion of the planned divestitures take place on or of the markets in which both it and Flagship compete. before the date of consummation of the merger. The While three of these banking markets, Miami-Fort merger shall not be made before the thirtieth calendar Lauderdale, eastern Palm Beach County, and Pinellas day following the effective date of this Order and County, are not highly concentrated, the merger of neither the merger nor the acquisition of the nonbank- these two bank holding companies will eliminate a ing subsidiaries shall occur later than three months sizable competitor in each of the markets. Sun will after the effective date of this Order, unless such become the second largest commercial banking organiperiod is extended for good cause by the Board or by zation in the Miami-Fort Lauderdale market, and its the Federal Reserve Bank of Atlanta, pursuant to size will increase from $932 million to $1.7 billion in delegated authority. The determinations as to Appli- deposits. In the eastern Palm Beach County and cant's nonbanking activities are subject to the condi- Pinellas County market, Sun will double its current tions set forth in section 225.4(c) of Regulation Y size and substantially increase its market shares in (12 C.F.R. § 225.4(c)) and to the Board's authority to each market. In my opinion, the elimination of such a require such modification or termination of the activi- significant competitor from these markets is unacceptties of a holding company or any of its subsidiaries as able, regardless of the concentration of commercial the Board finds necessary to assure compliance with banking resources in the markets. the provisions and purposes of the Act and the Board's In terms of probable future competition, all but one regulations and orders issued thereunder, or to pre- of the fifteen markets in question is highly concentratvent evasion thereof. ed and all but four of the markets are attractive for By order of the Board of Governors, effective entry. In particular, I am concerned about the elimina- November 8, 1983. tion of probable future competitors in the Pensacola, Marion County, and North Seminole County banking markets. Each of these markets is attractive for entry Voting for this action: Chairman Volcker, and Governors and the bank to be acquired is one of the market's top Martin, Partee, Rice, and Gramley. Voting against this action: Governor Teeters. Absent and not voting: Governor two competitors. Wallich. I believe that the Board's action approving this application represents another situation in which the WILLIAM W. WILES, Board's proposed guidelines relating to probable fu- [SEAL] Secretary of the Board ture competition permit acquisitions by bank holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 939 companies that have substantially anticompetitive Applicant proposes to engage in insurance underconsequences. As I have previously indicated, I con- writing activities to the extent those activities are tinue to believe that the Board should develop and generally permissible for bank holding companies in apply standards that more realistically reflect the the Board's Regulation Y, (12 C.F.R. § 225.4(a)(10)). adverse effects of the elimination of probable future Section 225.4(a)(10) of Regulation Y authorizes bank competition. Accordingly, I dissent from the Board's holding companies to underwrite credit life insurance decision regarding this application. and credit accident and health insurance that is directly related to extensions of credit by the bank holding November 8, 1983 company system. The Board has expressly conditioned approval of this activity by requiring bank holding companies engaging in the underwriting of Orders Issued Under Section 5 of Bank Service credit life and credit accident and health insurance to Corporation Act demonstrate that approval will benefit the consumer or result in other public benefits, normally by showing a Louisiana National Bank, projected reduction in rates or an increase in policy Baton Rouge, Louisiana benefits due to bank holding company performance of this service. (See note 10a to § 225.4(a)(10)). Thus, Order Conditionally Approving Acquisition under the terms of the BSCA, Applicant may engage in of a Bank Service Corporation the proposed activity only as defined in Regulation Y, including note 10a thereto. Louisiana National Bank, Baton Rouge, Louisiana , a Applicant contends that the fact that section 5(c) of national bank chartered by the Comptroller of the the BSCA does not mention a net public benefits test Currency, has applied for the Board's approval under relieves it from the requirement of Regulation Y to section 5(b) the Bank Service Corporation Act, as show any demonstrated consumer benefits in order for amended ("BSCA") (12 U.S.C. § 1861 et seq.), to it to engage in this activity. On this basis, Applicant acquire all of the shares of a bank service corporation, has indicated that it will not provide any reductions in Louisiana Credit Life Insurance Company, Phoenix, premium rates or increases in policy benefits, as the Arizona ("Company"). Company would engage in the Board has traditionally required in credit life, accident activity of underwriting, as reinsurer, credit life and and health insurance underwriting applications under credit accident and health insurance written in connec- section 225.4(a)(10) of Regulation Y. tion with extensions of credit by Bank.1 The Board has reviewed Applicant's contentions The BSCA was recently amended by Section 709 of that no rate reductions are required and believes they the Garn-St Germain Act2 to require prior Board are not supported by the language of the BSCA. As approval of the investment by an insured bank in the noted above, by its terms the BSCA authorizes only capital stock of a bank service corporation that per- those nonbanking activities that are found by regulaforms any "service" under authority of section 4(f) of tion to be permissible for bank holding companies. the Act. Section 4(f) of the BSCA provides that: (12 U.S.C. § 1864(f)). Inasmuch as Regulation Y explicitly conditions the conduct of this activity upon a bank service corporation may perform at any geographic demonstration of the benefits to the consumer delocation any service, other than deposit taking, that the scribed in the regulation, the activity is not permissible Board has determined, by regulation, to be permissible for a under Regulation Y absent such a demonstration. bank holding company under section 4(c)(8) of the Bank Holding Company Act. (12 U.S.C. § 1864(f)).3 Therefore, the terms of the BSCA prohibit approval of this proposal without imposition of the conditions contained in Regulation Y. This conclusion is support- 1. Applicant proposes that Union Security Life Insurance Compa- ed by the legislative history of the BSCA, which ny, Atlanta, Georgia ("Union"), act as the direct writer of risks which makes it clear that Congress mandated bank service Company would reinsure. Union, which is licensed to transact insurance in Louisiana, would transfer its liability to Company pursuant to corporations to engage in activities "as authorized a reinsurance agreement. In addition, Applicant proposes that Compa- under Regulation Y of the Federal Reserve System."4 ny would enter into a service agreement with Union pursuant to which Applicant has provided no persuasive evidence to the Union would provide technical assistance in those operational areas of Company that require specialized and expert staffing. contrary. In fact, the presence or absence of a net 2. Garn-St Germain Depository Institutions Act of 1982, Pub. L. public benefits test is not relevant here. The only No. 97-320, 96 Stat. 1469 (1982), as amended by, S.J. Res. 271, Pub. relevant questions are whether the proposed activity is L. No. 97-457, 96 Stat. 2508 (1983). ("Garn-St Germain Act"). 3. Under section 4(c)(8) of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.) ("BHC Act"), a bank holding company may engage in activities determined by the Board to be closely related 4. 128 Cong. Rec. S12219 (daily ed. Sept. 24, 1982) (remarks of to banking. Senator Garn). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 Federal Reserve Bulletin • December 1983 an activity that is permissible as defined in Regulation authority to require such modification or termination Y and whether there are any adverse considerations of the activities of a bank service corporation as the concerning management, financial factors, decreased Board finds necessary to assure compliance with the competition, or other factors specified in section 5(c) provisions and purposes of the Bank Service Corporaof the BSCA. tion Act or to prevent evasions thereof. In this connection, it is important to note that in Finally, a number of comments to the Board's adding this activity to Regulation Y's list of permissi- proposed revision of Regulation Y have advocated ble activities in 1972, the Board determined there were elimination of the rate reduction requirements or other possible adverse effects associated with performance demonstrated consumer benefits, and have stated that of the activity that were so substantial as to require the rate reductions place bank holding companies at a denial of an application without a demonstration of the competitive disadvantage vis-a-vis other credit insurbenefits recited in note 10a to section 225.4(a)(10) of ance underwriters. In response to these comments, the Regulation Y. Therefore, without the required premi- Board intends promptly to seek public comment on the um reductions or equivalent public benefit, the Board elimination of note 10a from § 225.4(a)(10) of Regulawould be required by the terms of the BSCA to deny tion Y. Any final action taken by the Board with this application because of possible adverse effects. respect to this rule would be applicable to Applicant. Accordingly, the Board has determined to approve By order of the Board of Governors, effective this application on the only basis that it could approve November 1, 1983. it—that is, subject to Applicant's compliance with Regulation Y, including the requirements of note 10a thereto.5 This determination is subject to the Board's Voting for this action: Chairman Volcker and Governors Martin, Partee, Teeters, Rice, and Gramley. Present and abstaining: Governor Wallich. 5. The Board also has reviewed the financial and managerial resources and future prospects of Bank and Company, including the financial capability of Bank to make a proposed investment under this JAMES MCAFEE, Act, and has determined that such factors are consistent with approval. [SEAL] Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During November 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) First United Bancshares, Inc., First National Bank of Magnolia, November 29, 1983 El Dorado, Arkansas Magnolia, Arkansas Texas American Bancshares, Inc. First Duncanville Corporation, November 1, 1983 Fort Worth, Texas Duncanville, Texas First National Bank of Duncanville, Duncanville, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 941 By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective AApppplliiccaanntt Bank(s) Bank date ABC Bancshares, Inc., Wilburton State Bancshares, Inc., Kansas City October 24, 1983 McAlester, Oklahoma Wilburton, Oklahoma AmericanBanc Corporation, American National Bank of Dallas October 28, 1983 Piano, Texas Piano, Piano, Texas American State Bancorporation, American State Bank, Chicago October 28, 1983 Inc., Kenosha, Wisconsin Kenosha, Wisconsin Anton Bancshares, Inc., Citizens State Bank, Dallas November 2, 1983 Anton, Texas Anton, Texas Bank of Boston Corporation, The Martha's Vineyard National Boston November 4, 1983 Boston, Massachusetts Bank, Vineyard Haven, Massachusetts Bank of Iowa, Inc., Reed Street Company, Inc., Chicago November 8, 1983 Des Moines, Iowa Red Oak, Iowa Beaver Bancorp, Inc., Beaver Bancshares, Inc., Kansas City October 24, 1983 Beaver, Oklahoma Beaver, Oklahoma CB Financial Corporation, Clinton Bank and Trust Chicago November 25, 1983 Jackson, Michigan Company, Saint Johns, Michigan Clinton Bancshares, Inc., Clinton State Bank, St. Louis November 4, 1983 Little Rock, Arkansas Clinton, Arkansas Columbia National Bancorp,. Columbia National Bank of Chicago November 4, 1983 Inc., Chicago, Chicago, Illinois Chicago, Illinois Commercial Bancshares, Inc., First State Bank, Dallas November 4, 1983 Houston, Texas Cypress, Texas The Conifer/Essex Group, Inc., Union National Bank, Boston November 18, 1983 Worcester, Massachusetts Lowell, Massachusetts Falmouth Bank and Trust Company, Falmouth, Massachusetts East-Tex Bancorp, Inc., First National Bank of Cleveland, Dallas October 28, 1983 Trinity, Texas Cleveland, Texas Energy Bancshares, Inc., The Energy Bank, N.A., Dallas November 7, 1983 Dallas, Texas Dallas, Texas Exchange Bankshares, Inc., Exchange Bank, Atlanta October 31, 1983 Milledgeville, Georgia Milledgeville, Georgia F. Deposit Corporation, Farmers-Deposit Bank, Cleveland October 31, 1983 Flemingsburg, Kentucky Flemingsburg, Kentucky F & M Financial Services State Bank of Slinger, Chicago November 4, 1983 Corporation, Slinger, Wisconsin Menomonee Falls, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 Federal Reserve Bulletin • December 1983 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First Bancorp of Wayne, Inc., The First National Bank of Richmond October 28, 1983 Sprague, West Virginia Kenova, Kenova, West Virginia First Citizens Corporation, The Citizens Bank, Atlanta November 10, 1983 Oneonta, Alabama Oneonta, Alabama First Enid, Inc., Fairview State Bank, Kansas City October 24, 1983 Enid, Oklahoma Fairview, Oklahoma First Guaranty Bancshares, First Guaranty Bank, Atlanta October 31, 1983 Inc., Hammond, Louisiana Hammond, Louisiana First Keystone Corporation, The First National Bank of Philadelphia November 1, 1983 Berwick, Pennsylvania Berwick, Berwick, Pennsylvania First Mid-Illinois Bancshares, Mattoon Bank, Chicago November 4, 1983 Inc., Mattoon, Illinois Mattoon, Illinois First National Bancorp, Inc., The First National Bank of Chicago October 28, 1983 Monroe, Wisconsin Monroe, Monroe, Wisconsin First National Bancshares of The First National Bank of Kansas City October 20, 1983 Madison, Inc., Madison, Madison, Kansas Madison, Kansas First Oak Brook Bancshares, Warrenville Bank and Trust Co., Chicago November 15, 1983 Inc., Warrenville, Illinois Oak Brook, Illinois First of Murphysboro Corp., The First National Bank of Grand St. Louis November 8, 1983 Murphysboro, Illinois Tower, Grand Tower, Illinois First Postville Bancorporation, Citizens State Bank, Chicago November 25, 1983 Inc., Postville, Iowa Postville, Iowa First United Holding Company, First National Bank & Trust of Kansas City November 18, 1983 St. John, Kansas St. John, St. John, Kansas Firstbank of Illinois Co., Land of Lincoln Bank, Chicago October 28, 1983 Springfield, Illinois Springfield, Illinois Flat Top Bankshares, Inc., Peoples Bank of Bluewell, Richmond November 1, 1983 Bluefield, West Virginia Bluewell, West Virginia Forstrom Bancorporation, Inc., Security State Bank of Howard Minneapolis November 3, 1983 Clara City, Minnesota Lake, Howard Lake, Minnesota Fox Lake Bankshares, Inc., State Bank of Fox Lake, Chicago November 16, 1983 Fox Lake, Wisconsin Fox Lake, Wisconsin Frandsen Bancshares, Inc., Fidelity State Bank, Minneapolis November 16, 1983 Luck, Wisconsin Luck, Wisconsin Itasca Bancorp Inc., Itasca Bank & Trust Co., Chicago November 25, 1983 Itasca, Illinois Itasca, Illinois Jackson Financial Corporation, The First National Bank of St. Louis October 28, 1983 May field, Kentucky May field, May field, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 943 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date J.M.C. Interest, Inc., Southwest National Corporation, Kansas City October 26, 1983 Albuquerque, New Mexico Albuquerque, New Mexico LBT Corporation, Louisiana Bank & Trust Dallas October 28, 1983 Shreveport, Louisiana Company, Shreveport, Louisiana Luxemburg Bancshares, Inc., Bank of Luxemburg, Chicago November 25, 1983 Luxemburg, Wisconsin Luxemburg, Wisconsin Marine Bancorp, Inc., American State Bank of Chicago October 28, 1983 Springfield, Illinois Bloomington, Bloomington, Illinois Maroa Bancshares, Inc., Bank of Maroa, Chicago November 9, 1983 Maroa, Illinois Maroa, Illinois Marshall Bancshares, Inc., Bank of Marshall, Kansas City October 24, 1983 Marshall, Oklahoma Marshall, Oklahoma Midwest Financial Group, Inc., CNB Bancorp, Inc., Chicago November 4, 1983 Peoria, Illinois Decatur, Illinois Nabanco, Inc., The National Bank of Lancaster, Cleveland October 27, 1983 Lancaster, Kentucky Lancaster, Kentucky NBG Financial Corporation, The National Bank of Chicago November 15, 1983 Greenwood, Indiana Greenwood, Greenwood, Indiana NBN Corporation, National Bank of Newport, Atlanta November 16, 1983 Newport, Tennessee Newport, Tennessee NGM Bancorp., Inc., Westgate State Bank, Kansas City November 4, 1983 Kansas City, Kansas Kansas City, Kansas Northstream Investments, Inc., Fort Pierre National Bank, Minneapolis November 28, 1983 Geddes, South Dakota Fort Pierre, South Dakota Oberlin Bancshares, Inc., The Oberlin Savings Bank Cleveland October 27, 1983 Oberlin, Ohio Company, Oberlin, Ohio Onarga Bancorp, Inc., Bank of Chebanse, Chicago November 25, 1983 Onarga, Illinois Chebanse, Illinois Ontario Bancorporation, Inc., Bank of Ontario, Chicago November 4, 1983 Ontario, Wisconsin Ontario, Wisconsin Park Bancorporation, Inc., The Park Bank, Chicago November 28, 1983 Madison, Wisconsin Madison, Wisconsin Pennbancorp, Security-Peoples Trust Company, Cleveland October 25, 1983 Titusville, Pennsylvania Erie, Pennsylvania Peoples Security Bancorp, Inc., The Peoples Security Bank of Cleveland November 18, 1983 Louisa, Kentucky Louisa, Louisa, Kentucky Schmidt Bancshares, Inc., Exchange Bank of Schmidt and Kansas City November 4, 1983 Marysville, Kansas Koester, Marysville, Kansas Security Bank Shares, Inc., Security State Bank of Port Minneapolis October 27, 1983 Iron River, Wisconsin Wing, Port Wing, Wisconsin Southside Bancshares Corp., State Bank of DeSoto, St. Louis October 27, 1983 St. Louis, Missouri DeSoto, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A944 Federal Reserve Bulletin • December 1983 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date SouthTrust Corporation, The Leeth National Bank, Atlanta October 31, 1983 Birmingham, Alabama Cullman, Alabama SouthTrust Corporation, Citibanc Group, Inc., Atlanta November 18, 1983 Birmingham, Alabama Alexander City, Alabama Texas Capital Bancshares, Inc., First National Bank of Katy, Dallas November 4, 1983 Houston, Texas Katy, Texas Texas Valley Bancshares, Inc., The First National Bank of Dallas October 26, 1983 Weslaco, Texas Weslaco, Weslaco, Texas The Citizens State Bank, Donna, Texas The Hidalgo County Bank and Trust Company, Mercedes, Texas National Bank of Commerce, Edinburg, Texas United Southern Corporation, United Southern Bank, St. Louis November 28, 1983 Clarksdale, Mississippi Clarksdale, Mississippi Western Bancshares, Inc., Western Bank of Billings, Minneapolis October 26, 1983 Billings, Montana Billings, Montana Western Commerce Bancshares Western Commerce Bank, Dallas November 10, 1983 of Carlsbad, Inc., Carlsbad, New Mexico Carlsbad, New Mexico Woodbury Bancshares, Inc., Woodbury Banking Company, Atlanta November 1, 1983 Woodbury, Georgia Woodbury, Georgia Section 4 Nonbanking Reserve Effective Applicant company Bank date Amador Bancshares, Inc., Citizens Brokerage Services, Dallas November 8, 1983 Las Cruces, New Mexico Inc., Las Cruces, New Mexico Chemical Financial Corporation, Information Technology Services Chicago October 24, 1983 Midland, Michigan Corporation, Sturgis, Michigan Chemical New York Corpora- Alexander, Scriver and New York November 14, 1983 tion, Associates, New York, New York Denver, Colorado First Tulsa Bancorporation, Irwin Securities Corporation, Kansas City October 28, 1983 Inc., Tulsa, Oklahoma Tulsa, Oklahoma F.N.B. Corporation, Carson Consumer Discount Cleveland November 15, 1983 Hermitage, Pennsylvania Company, Wellsboro, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 945 Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Behrens Bancshares, Inc., Center State Bank, St. Louis November 9, 1983 New London, Missouri Center, Missouri Behrens, Inc., New London, Missouri General insurance agency activities NorBanc Group, Inc., Pine River State Bank, Minneapolis November 8, 1983 Pine River, Minnesota Pine River, Minnesota Backus State Bank, Backus, Minnesota Pine River Agency, Inc., Pine River, Minnesota ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date American Bank of Bloomington, American State Bank of Chicago November 3, 1983 Bloomington, Illinois Bloomington, Illinois Bloomington, Illinois Bank of Virginia, Virginia National Bank-Beaufont Richmond November 7, 1983 Richmond, Virginia Mall, Richmond, Virginia Bank of Virginia, First & Merchants National Richmond November 7, 1983 Richmond, Virginia Bank-Court House, Virginia Beach, Virginia First & Merchants National Bank-Great Bridge, Chesapeake, Virginia Central Fidelity Bank, Central Fidelity Bank, N.A., Richmond November 10, 1983 Norfolk, Virginia Lynchburg, Virginia Flagship Bank of Tampa, Sun Bank/Hillsborough, Atlanta November 16, 1983 Tampa, Florida Tampa, Florida Peoples Bank and Trust Com- The Greenville Bank, Atlanta October 26, 1983 pany, Greenville, Alabama Selma, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A946 Federal Reserve Bulletin • December 1983 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits Charles G. Vick v. Paul A. Volcker, et al., filed March against the Federal Reserve Banks in which the Board 1982, U.S.D.C. for the District of Columbia. of Governors is not named a party. Jolene Gustafson v. Board of Governors, filed March 1982, U.S.C.A. for the Fifth Circuit. Independent Insurance Agents of America, Inc. and Edwin F. Gordon v. Board of Governors, et al., filed Independent Insurance Agents of Missouri, Inc. v. October 1981, U.S.C.A. for the Eleventh Circuit Board of Governors, filed June 1983, U.S.C.A. for (two consolidated cases). the Eighth Circuit (two cases). Allen Wolf son v. Board of Governors, filed September The Committee for Monetary Reform, et al., v. Board 1981, U.S.D.C. for the Middle District of Florida. of Governors, filed June 1983, U.S.D.C. 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- Dakota Bankshares, Inc. v. Board of Governors, filed ern District of Georgia. May 1983, U.S.C.A. for the Eighth Circuit. Public Interest Bounty Hunters v. Board of Gover- Jet Courier Services, Inc., et al. v. Federal Reserve nors, et al., filed June 1981, U.S.D.C. for the Bank of Atlanta, et al. filed February 1983, Northern District of Georgia. U.S.C.A. for the Sixth Circuit. First Bank & Trust Company v. Board of Governors, Securities Industry Association v. Board of Gover- filed February 1981, U.S.D.C. for the Eastern Disnors, et al., filed February 1983, U.S.C.A. for the trict of Kentucky. Second Circuit. 9 to 5 Organization for Women Office Workers v. Flagship Banks, Inc. v. Board of Governors, filed Board of Governors, filed December 1980, January 1983, U.S.D.C. for the District of Colum- U.S.D.C. for the District of Massachusetts. bia. Securities Industry Association v. Board of Gover- Flagship Banks, Inc. v. Board of Governors, filed nors, et al., filed October 1980, U.S.C.A. for the October 1982, U.S.D.C. for the District of Colum- District of Columbia. bia. A. G. Becker, Inc. v. Board of Governors, et al., filed Association of Data Processing Service Organiza- October 1980, U.S.C.A. for the District of Columtions, Inc., et al. v. Board of Governors, filed bia. August 1982, U.S.C.A. for the District of Columbia. A. G. Becker, Inc. v. Board of Governors, et al., filed Richter v. Board of Governors, et al. filed May 1982, August 1980, U.S.C.A. for the District of Columbia. U.S.D.C. for the Northern District of Illinois. Berkovitz, et al. v. Government of Iran, et al., filed Wyoming Bancorporation v. Board of Governors, filed June 1980, U.S.D.C. for the Northern District of May 1982, U.S.C.A. for the Tenth Circuit. California. First Bancorporation v. Board of Governors, filed April 1982, U.S.C.A. for the Tenth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS Domestic Financial Statistics WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and liabilities A4 Reserves of depository institutions, Reserve A18 All reporting banks Bank credit A19 Banks with assets of $1 billion or more A5 Reserves and borrowings of depository A20 Banks in New York City institutions A21 Balance sheet memoranda A5 Federal funds and repurchase agreements of A22 Branches and agencies of foreign banks large member banks A23 Gross demand deposits of individuals, partnerships, and corporations POLICY INSTRUMENTS FINANCIAL MARKETS A6 Federal Reserve Bank interest rates A7 Reserve requirements of depository institutions A24 Commercial paper and bankers dollar A8 Maximum interest rates payable on time and acceptances outstanding savings deposits at federally insured institutions A24 Prime rate charged by banks on short-term A9 Federal Reserve open market transactions business loans A25 Terms of lending at commercial banks A26 Interest rates in money and capital markets FEDERAL RESERVE BANKS All Stock market—Selected statistics A28 Selected financial institutions—Selected assets A10 Condition and Federal Reserve note statements and liabilities All Maturity distribution of loan and security holdings FEDERAL FINANCE MONETARY AND CREDIT AGGREGATES A29 Federal fiscal and financing operations A30 U.S. Budget receipts and outlays A12 Aggregate reserves of depository institutions A31 Federal debt subject to statutory limitation and monetary base A31 Gross public debt of U.S. Treasury—Types and A13 Money stock measures and components ownership A14 Bank debits and deposit turnover A32 U.S. government securities dealers— A15 Loans and securities of all commercial banks Transactions, positions, and financing A33 Federal and federally sponsored credit agencies—Debt outstanding COMMERCIAL BANKING INSTITUTIONS A16 Major nondeposit funds A17 Assets and liabilities, last-Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • December 1983 SECURITIES MARKETS AND A53 Foreign official assets held at Federal Reserve CORPORATE FINANCE Banks A54 Foreign branches of U.S. banks—Balance sheet A34 New security issues—State and local data governments and corporations A56 Selected U.S. liabilities to foreign official A35 Open-end investment companies—Net sales and institutions asset position A35 Corporate profits and their distribution A36 Nonfinancial corporations—Assets and REPORTED BY BANKS IN THE UNITED STATES liabilities A36 Total nonfarm business expenditures on new A56 Liabilities to and claims on foreigners plant and equipment A57 Liabilities to foreigners A37 Domestic finance companies—Assets and A59 Banks' own claims on foreigners liabilities and business credit A60 Banks' own and domestic customers' claims on foreigners A60 Banks' own claims on unaffiliated foreigners REAL ESTATE A61 Claims on foreign countries—Combined domestic offices and foreign branches A38 Mortgage markets A39 Mortgage debt outstanding REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A62 Liabilities to unaffiliated foreigners A40 Total outstanding and net change A63 Claims on unaffiliated foreigners A41 Terms SECURITIES HOLDINGS AND TRANSACTIONS FLOW OF FUNDS A64 Foreign transactions in securities A42 Funds raised in U.S. credit markets A65 Marketable U.S. Treasury bonds and notes— A43 Direct and indirect sources of funds to credit Foreign holdings and transactions markets INTEREST AND EXCHANGE RATES Domestic Nonfinancial Statistics A65 Discount rates of foreign central banks A44 Nonfinancial business activity—Selected A66 Foreign short-term interest rates measures A66 Foreign exchange rates A44 Output, capacity, and capacity utilization A45 Labor force, employment, and unemployment A46 Industrial production—Indexes and gross value A67 Guide to Tabular Presentation, A48 Housing and construction Statistical Releases, and Special A49 Consumer and producer prices Tables A50 Gross national product and income A51 Personal income and saving Special Tables International Statistics A68 Commercial bank assets and liabilities, June 30, 1983 A52 U.S. international transactions—Summary A74 Assets and liabilities of U.S. branches and A53 U.S. foreign trade agencies of foreign banks, June 30, 1983 A53 U.S. reserve assets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1982 1983 1983 Q4 QL Q2 Q3 June July Aug. Sept. Oct. Reserves of depository institutions 1 Total 11.8 4.1 12.4 4.7 15.6 6.0 -3.4 .7 -3.0 2 Required 10.8 3.8 12.6 4.6 14.8 5.2 -1.5 -.9 -3.2 3 Nonborrowed 13.6 3.5 6.2 1.8 -6.7 12.4 -6.6 4.2 16.7 4 Monetary base2 8.2 9.5 11.1 7.6 10.1 5.1 6.4' 9.1' 7.6 Concepts of money and liquid assets3 5 Ml 13.1 14.1 12.2 8.9 10.2 8.9 2.8 .9 1.9 6 M2 9.3 20.3 10.1 7.8 10.4 6.8 6.0 4.8' 9.3 7 M3 9.5 10.2 8.1 8.3' 11.0 5.5 8.6' 7.4' 8.5 8 L 8.6 10.8 9.9 n.a. 11.0 n.a. n.a. n.a. n.a. Time and savings deposits Commercial banks 9 Total 5.3 14.2 3.0 6.1 10.1 6.6 5.7 6.0 3.1 10 Savings4 13.4 -43.4 -14.8 -6.8 0 -10.2 -11.2 -8.7 -10.5 11 Small-denomination time5 -.5 -48.5 24.1 14.9 2.6 24.8 22.4 17.3 23.1 12 Large-denomination time6 -2.0 -53.9 -24.8 -8.5 -.8 -8.8 -2.9 -3.8 21.6 13 Thrift institutions7 6.2 12.1 16.0 13.7 13.3 14.6 13.5 12.5 13.1 14 Total loans and securities at commercial banks8 6.3 10.7' 9.9 8.6 9.9 9.7 11.2 4.9 9.9 Interest rates (levels, percent per annum) 1982 1983 1983 Q4 QL Q2 Q3 July Aug. Sept. Oct. Nov. Short-term rates 1 1 1 1 7 5 6 8 T D C F r e o i e s d m a c e s o m r u u a e r l 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 - m r b ( o o 3 n r - r t m h o , w o s n i e n t c h g o 1 ) 0 1 n 1 d 12 a ry market)11 7 8 9 9 . . . . 2 9 8 2 5 0 0 8 8 8 8 8 . . . . 3 5 1 6 4 0 1 5 8 8 8 8 . . . . 6 5 4 8 2 0 0 0 8 9 9 9 . . . . 1 3 5 4 4 4 0 6 8 9 9 9 . . . . 0 2 5 3 8 5 0 7 8 9 9 9 . . . . 3 5 5 5 4 4 0 6 9 9 8 9 . . . . 2 0 4 5 4 0 5 0 8 8 8 9 . . . . 6 5 9 4 4 0 9 8 8 8 9 9. . . . 3 7 5 1 4 6 0 0 Long-term rates Bonds 2 1 0 9 S U t . a S te . g a o n v d e l r o n c m al e n g t o vernment14 1 9 0 . . 9 7 0 2 1 9 0 . . 4 8 3 7 1 9 0 . . 2 8 3 1 1 9 1 . . 6 7 1 9 1 9 1 . . 5 5 3 9 1 9 1 . . 7 9 2 6 1 9 1 . . 5 8 8 2 1 9 1 . . 6 7 6 7 1 9 1 . . 7 9 5 2 21 Aaa utility (new issue) 12.10 11.89 11.46 12.39 12.32 12.25 12.53 12.43 12.64 22 Conventional mortgages 13.79 13.26 13.16 13.83 14.00 13.90 13.60 13.52 13.48 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) travelers 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 money market deposit accounts (MMDAs), savings and small- 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by denomination time deposits at all depository institutions, overnight repurchase Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve agreements at commercial banks, overnight Eurodollars held by U.S. residents compilations. other than banks at Caribbean branches of member banks, and balances of money 16. Average rates on new commitments for conventional first mortgages on market mutual funds (general purpose and 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 Department 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 • December 1983 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures 1983 1983 Sept. Oct. Nov. Oct. 19 Oct. 26 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 168,182 169,202' 167,960 168,840 169,04c 166,148 165,744 168,222 168,642 169,082 2 U.S. government securities1 148,550 149,300 148,005 148,668 149,166 146,597 144,797 147,910 149,723 149,688 3 Bought outright 145,487 147,045 147,775 146,412 147,479 146,597 144,797 147,910 148,737 149,688 4 Held under repurchase agreements 3,063 2,255 230 2,256 1,687 0 0 0 986 0 5 Federal agency securities 8,995 8,936 8,762 8,908 8,892 8,731 8,731 8,729 8,935 8,659 6 Bought outright 8,739 8,734 8,714 8,734 8,731 8,731 8,731 8,729 8,730 8,659 7 Held under repurchase agreements 256 202 48 174 161 0 0 0 205 0 8 Acceptances 139 131 54 106 110 0 0 0 233 0 9 Loans 1,446 837' 913 577 565' 440 1,042 1,021 815 880 10 Float 1,199 1,313' 1,778 1,730 1,197' 1,212 2,063 2,012 1,112 1,775 11 Other Federal Reserve assets 7,853 8,685 8,448 8,851 9,109 9,169 9,111 8,551 7,824 8,081 12 Gold stock 11,128 11,127 11,123 11,128 11,127 11,126 11,123 11,123 11,123 11,123 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 161,684 162,578 165,317 163,260 162,527 162,703 164,141 165,634 165,646 166,430 16 Treasury cash holdings 471 475 481 477 475 477 479 484 483 479 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 7,584 6,916 2,905 5,258 5,829 3,923 2,907 3,207 2,441 2,881 18 Foreign 212 216 238 216 208 235 216 235 239 258 19 Other 491 614 596 628 647 633 615 592 551 612 20 Service-related balances and adjustment... 1,117 1,185 1,237 1,095 1,259' 1,379 1,176 1,347 1,257 1,238 21 Other Federal Reserve liabilities and capital 5,569 5,689 5,584 5,645 5,597 5,638 5,656 5,550 5,604 5,542 22 Reserve accounts2 20,585 21,059' 21,130 21,793 22,028' 20,689 20,081 20,700 21,949 21,168 End-of-month figures Wednesday figures 1983 1983 Sept. Oct. Nov. Oct. 19 Oct. 26 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 175,755 165,267 168,481 169,772 167,580 167,208 166,105 167,698 171,750 168,481 24 U.S. government securities1 155,423 146,096 149,439 148,461 147,272 147,045 140,932 147,158 151,512 149,439 25 Bought outright 146,171 146,096 149,439 145,075 147,272 147,045 140,932 147,158 151,512 149,439 26 Held under repurchase agreements 9,252 0 0 3,386 0 0 0 0 0 0 27 Federal agency securities 9,288 8,731 8,647 8,980 8,731 8,731 8,731 8,730 8,730 8,647 28 Bought outright 8,737 8,731 8,647 8,734 8,731 8,731 8,731 8,730 8,730 8,647 29 Held under repurchase agreements 551 0 0 246 0 0 0 0 0 0 30 Acceptances 1,122 0 0 117 0 0 0 0 0 0 31 Loans 1,625 387 1,059 1,386 1,505 734 4,361 1,534 1,489 1,059 32 Float -60 750 898 1,705 816 1,333 2,961 2,434 1,698 898 33 Other Federal Reserve assets 8,357 9,303 8,438 9,123 9,256 9,365 9,120 7,842 8,321 8,438 34 Gold stock 11,128 11,126 11,123 11,127 11,126 11,126 11,123 11,123 11,123 11,123 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 161,046 162,515 166,682 163,080 162,479 163,401 165,246 165,665 166,330 166,682 38 Treasury cash holdings 468 478 475 477 478 473 484 483 480 475 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 16,557 4,841 2,8% 5,168 4,624 3,196 4,004 3,315 2,689 2,896 40 Foreign 297 339 360 257 246 230 239 269 197 360 41 Other 438 749 610 592 671 626 580 572 553 610 42 Service-related balances and adjustment... 911 956 983 958 960 956 973 984 986 983 43 Other Federal Reserve liabilities and capital 5,800 5,691 5,432 5,478 5,372 5,361 5,888 5,420 5,440 5,432 44 Reserve accounts2 19,769 19,227 20,569 23,292 22,279 22,494 18,218 20,517 24,602 20,569 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. Dec. Apr. May June July Aug. Sept. Oct. Nov.? 1 Reserve balances with Reserve Banks1 26,163 24,804 22,565 22,010 21,808 22,139 21,965 20,585 21,059 21,130 2 Total vault cash (estimated) 19,538 20,392 19,569 19,710 20,098 20,413 20,035 20,798 20,471 20,537 3 Vault cash at institutions with required reserve balances2 13,577 14,292 13,246 13,339 13,593 13,647 13,656 13,927 13,866 14,099 4 Vault cash equal to required reserves at other institutions 2,178 2,757 2,839 2,933 3,014 3,161 3,039 3,404 3,212 3,095 5 Surplus vault cash at other institutions3 3,783 3,343 3,484 3,438 3,491 3,605 3,340 3,467 3,393 3,343 6 Reserve balances + total vault cash4 45,701 45,196 42,134 41,720 41,906 42,552 42,000 41,383 41,530 41,667 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,918 41,853 38,650 38,282 38,415 38,947 38,660 37,916 38,137 38,324 8 Required reserves (estimated) 41,606 41,353 38,174 37,833 37,935 38,440 38,214 37,418 37,632 37,621 9 Excess reserve balances at Reserve Banks4 6 312 500 476 449 480 507 446 498 505 703 10 Total borrowings at Reserve Banks 642 697 993 902 1,714 1,382 1,573 1,441 837 913 11 Seasonal borrowings at Reserve Banks 53 33 82 98 121 172 198 191 142 119 12 Extended credit at Reserve Banks 149 187 407 514 964 572 490 515 255 6 Weekly averages of daily figures for week ending 1983 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26' Nov. 2 Nov. 9 Nov. 16 Nov. 23p Nov. 3OP 13 Reserve balances with Reserve Banks1 20,424 20,674 19,897 21,793 22,028 20,689 20,081 20,700 21,949 21,168 14 Total vault cash (estimated) 21,364 20,963 21,017 20,057 19,676 20,910 20,949 20,956 19,174 21,110 15 Vault cash at institutions with required reserve balances2 14,539 14,176 13,926 13,494 13,737 14,175 14,014 13,936 13,728 14,511 16 Vault cash equal to required reserves at other institutions 3,412 3,306 3,452 3,160 2,867 3,337 3,341 3,397 2,593 3,196 17 Surplus vault cash at other institutions3 3,413 3,481 3,639 3,403 3,072 3,398 3,594 3,623 2,853 3,403 18 Reserve balances + total vault cash4 41,788 41,637 40,914 41,850 41,704 41,599 41,030 41,656 41,123 42,278 19 Reserve balances + total vault cash used to satisfy reserve requirements4 5 38,375 38,156 37,275 38,447 38,632 38,201 37,436 38,033 38,270 38,875 20 Required reserves (estimated) 37,926 37,534 36,546 38,106 38,178 37,827 36,856 37,388 37,983 38,203 21 Excess reserve balances at Reserve Banks4 6 449 622 729 341 454 374 580 645 287 672 22 Total borrowings at Reserve Banks 1,278 1,413 1,271 577 565 440 1,042 1,021 815 880 23 Seasonal borrowings at Reserve Banks 204 161 139 138 144 128 123 112 123 123 24 Extended credit at Reserve Banks 542 539 645 96 5 5 3 4 4 13 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.) 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 Oct. 5 Oct. 12 Oct. 19 Oct. 26' Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 One day and continuing contract 1 Commercial banks in United States 58,383' 66,583' 61,496' 56,786 57,632 62,938 61,398 58,521 5566,,887744 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 23,298 22,914 24,767 25,736 24,771 25,933 25,820 25,938 24,783 3 Nonbank securities dealers 4,846 4,550 5,444 5,743 5,476 5,573 5,668 5,294 4,792 4 All other 25,843 25,719 25,775 26,158 26,346 25,643 26,210 25,907 23,464 All other maturities 5 Commercial banks in United States 6,14c 6,077' 5,436' 5,498 5,728 6,768 6,571 6,328 66,,991177 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 8,787 8,614 8,608 8,537 8,484 9,505 9,194 9,509 10,040 7 Nonbank securities dealers 5,481' 5,270' 5,152' 5,979 6,433 7,353 7,446 7,427 7,564 8 All other 8,798 8,939 9,127 9,397 9,453 9,932 9,901 10,934 13,546 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 25,810' 30,874 27,448 25,304 24,825 25,385 24,614 23,948 23,504 10 Nonbank securities dealers 4,395 4,882 4,742 4,808 4,933 4,857 5,022 5,428 4,286 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

A6 Domestic Nonfinancial Statistics • December 1983 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit' SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 11/30/83 date rate 11/30/83 rate 11/30/83 rate 11/30/83 rate Boston 8 h 12/14/82 9 8'/i 9 91/2 10 10'/> 11 12/14/82 New York 12/15/82 12/15/82 Philadelphia 12/17/82 12/17/82 Cleveland 12/15/82 12/15/82 Richmond 12/15/82 12/15/82 Atlanta 12/14/82 12/14/82 Chicago 12/14/82 12/14/82 St. Louis 12/14/82 12/14/82 Minneapolis 12/14/82 12/14/82 Kansas City .... 12/15/82 12/15/82 Dallas 12/14/82 9Vi 12/14/82 San Francisco... 8i/> 12/14/82 9 8'/2 9 10 10'/2 11 12/14/82 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le ll v e F l . s R - . Baonfk Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1973 7Vi 7'/2 1978— July 3 7-71/4 71/4 11998811—— MMaayy 55 13-14 14 1974— Apr. 25 7'/2-8 10 71/4 71/4 88 14 14 Dec. 3 9 0 73 8 7/3 4/-48 7 7 3 3 / / 4 4 A Se u p g t . . 2 2 1 2 7 8 3 /4 7 8 3 /4 Nov. 2 6 13 1 - 3 1 4 1 1 3 3 16 Oct. 16 8-8 !/2 8'/2 Dec. 4 12 12 1975— Jan. 6 714-73/4 73/4 Nov. 2 1 0 8> 8 /! ' - /2 9 '/2 8 9 1 l/ / i 2 1982— July 20 ll'/>-12 111/2 10 7'/47-17/34/4 71/4 3 9'/> 9>/2 23 11—1V/12 1 111/2 Feb. 2 5 4 63/4-7 V* 763'/4/ 4 1979—July 20 10 10 Aug. 2 3 11 Vi 1 1 1 1 7 63/4 63/4 Aug. 17 10-101/2 10l/2 16 10>/> 10 Vi Mar. 1 1 0 4 6'/ 6 4 ' - / 6 4 3 /4 6 6V '/4 4 Sept. 2 19 0 10 1 1 0' 2/ /2 — 11 W 11 /2 2 3 7 0 1 9 0 1 - / 1 12 0 0-1 1 /2 0 1 1 0 0 May 16 6-6'/4 6 21 11 11 Oct. 12 91/2 23 6 6 Oct. 8 11-12 12 13 99-91/1>/ 2 91/2 5i/> 10 12 12 Nov. 22 9 1976— Jan. 1 2 9 3 515/2V-62 51h 1980—Feb. 15 12-13 13 Dec. 2 1 6 4 8 '/2 9 — 9 9 9 Nov. 2 2 2 6 51/ 5 4 1 - / 5 4 1 /! 551'/4/ 4 May 2 1 9 9 12 1 - 3 1 3 1 1 3 3 1 1 5 7 81 8 / '/ 2 2 - 9 8 8 ' l / / > 2 51/4 30 12 12 1977— Aug. 30 51/4-53/4 53/4 June 13 11-12 11 Sept. 31 2 51/ 5 4 3 - / 5 4 3 /4 53/4 July 2 1 8 6 10 1 - 1 1 1 1 1 1 0 Oct. 26 6 6 29 10 10 6!/> Sept. 26 11 U 1978— Jan. 9 66-6 Vi 6 '/> Nov. 17 12 12 20 Dec. 5 12-13 13 May 11 6'/>-7 7 13 13 12 7 7 In effect Nov. 30, 1983 S'/2 m 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, 1980, adopted; the surcharge was subsequently raised to 3 percent on Dec. 5,1980, and and 1981. 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

Policy Instruments A7 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS' Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act6 ddeeppoossiitt iinntteerrvvaall ddeeppoossiitt iinntteerrvvaall55 Percent Effective date Percent Effective date Net demand2 Net transaction accounts7 8 7 12/30/76 $0-$26.3 million 3 12/30/82 9l/i 12/30/76 1122 1122//3300//8822 $10 million-$100 million 113/4 12/30/76 $100 million-$400 million 123/4 12/30/76 Nonpersonal time deposits9 Over $400 million 16'/4 12/30/76 By original maturity Less than 1VS years 3 10/6/83 Time and savings2>3 1 i/i years or more 0 10/6/83 Savings 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 21/! 1/8/76 4 years or more 1 10/30/75 Over $5 million, by maturity 30-179 days 6 12/12/74 180 days to 4 years 21/! 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 (DIDC) 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 a 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 ~!xh proved institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • December 1983 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions1 Percent per annum Commercial banks mut S u a a v l i s n a g v s i n a g n s d b l a o n a k n s a ( s t s h o r c if i t a t i i n o s n t s it u a t n io d n s)1 In effect Nov. 30, 1983 In effect Nov. 30, 1983 Type of deposit Percent Effective date Effective date 1 Savings 5'/4 7/1/79 51/2 7/1/79 2 Negotiable order of withdrawal accounts 5'/4 12/31/80 5'/4 12/31/80 3 Negotiable order of withdrawal accounts of $2,500 or more 1/5/83 1/5/83 4 Money market deposit account 12/14/82 12/14/82 5 7 T - im 31 e d a a c y c s o u o n f t s l es b s y th m an a tu $ r 2 i , t 5 y 0 03 5'/4 9/1/82 51/2 9/1/82 6 7-31 days of $2,500 or more 1/5/83 1/5/83 7 More than 31 days 10/1/83 10/1/83 1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable right to require seven days notice before withdrawals. When the average balance by commercial banks and thrift institutions on various categories of deposits were is less than $2,500, the account is subject to the maximum ceiling rate of interest removed. For information regarding previous interest rate ceilings on all catego- for NOW accounts; compliance with the average balance requirement may be ries of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the determined over a period of one month. Depository institutions may not guarantee Federal Home Loan Bank Board Journal, and the Annual Report of the Federal a rate of interest for this account for a period longer than one month or condition Deposit Insurance Corporation before November 1983. the payment of a rate on a requirement that the funds remain on deposit for longer 2. Effective Dec. 14, 1982, depository institutions are authorized to offer a new than one month. account with a required initial balance of $2,500 and an average maintenance 3. Deposits of less than $2,500 issued to governmental units continue to be balance of $2,500 not subject to interest rate restrictions. No minimum maturity subject to an interest rate ceiling of 8 percent. period is required for this account, but depository institutions must reserve the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1983 TTyyppee ooff ttrraannssaaccttiioonn 11998800 11998811 11998822 Apr. May June July Aug. Sept. Oct. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 7,668 13,899 17,067 2,880 516 1,721 666 1,768 3,184 309 2 Gross sales 7,331 6,746 8,369 0 0 0 0 289 214 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,389 1,816 3,000 0 0 0 0 0 500 0 Others within I year 5 Gross purchases 912 317 312 0 173 0 156 0 0 0 6 Gross sales 0 23 0 0 0 0 0 0 0 0 7 Maturity shift 12,427 13,794 17,295 826 1,795 1,398 1,162 2,212 902 529 8 Exchange -18,251 -12,869 -14,164 0 -1,842 -916 0 -5,344 -753 -636 9 Redemptions 0 0 0 0 0 87 0 0 0 0 1 to 5 years 10 Gross purchases 2,138 1,702 1,797 0 559955 0 481 0 00 00 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -8,909 -10,299 -14,524 -684 -41 -1,398 -1,121 -2,212 -902 -256 13 Exchange 13,412 10,117 11,804 0 1,367 916 0 3,130 753 636 5 to 10 years 14 Gross purchases 703 393 388 0 326 0 215 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 -142 -1,754 0 -41 516 0 -273 17 Exchange 2,970 1,500 2,128 0 300 0 0 1,300 0 0 Over 10 years 18 Gross purchases 811 379 307 0 108 0 124 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 -516 0 0 21 Exchange 1,869 1,253 234 0 175 0 0 914 0 0 All maturities 22 Gross purchases 12,232 16,690 19,870 2,880 1,719 1,721 1,642 1,768 3,184 309 23 Gross sales 7,331 6,769 8,369 0 0 0 0 289 214 0 24 Redemptions 3,389 1,816 3,000 0 0 87 0 0 500 0 Matched transactions 25 Gross sales 674,000 589,312 543,804 37,873 43,404 50,086 40,934 45,989 48,193 53,751 26 Gross purchases 675,496 589,647 543,173 36,205 45,001 47,783 43,037 44,480 47,667 53,367 Repurchase agreements 27 Gross purchases 113,902 79,920 130,774 7,671 0 7,891 7,816 2,263 37,211 19,247 28 Gross sales 113,040 78,733 130,286 3,984 3,687 6,730 8,978 0 30,223 28,499 29 Net change in U.S. government securities 3,869 9,626 8,358 4,899 -371 493 2,583 2,234 8,933 -9,326 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 7 * 17 10 138 5 6 Repurchase agreements 33 Gross purchases 28,895 13,320 18,957 340 0 678 558 189 2,871 1,960 34 Gross sales 28,863 13,576 18,638 92 248 463 773 0 2,510 2,510 35 Net change in federal agency obligations 555 130 130 241 -248 198 -225 51 356 -557 BANKERS ACCEPTANCES 36 Repurchase agreements, net 73 -582 1,285 704 -704 203 -203 209 913 -1,122 37 Total net change in System Open Market Account 4,497 9,175 9,773 5,844 -1,322 893 2,155 2,493 10,203 -11,005 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

A10 Domestic Nonfinancial Statistics • December 1983 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1983 1983 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Sept. Oct. Nov. Consolidated condition statement ASSETS 1 Gold certificate account 11,126 11,123 11,123 11,123 11,123 11,128 11,126 11,123 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 Coin 460 455 455 446 428 443 468 428 Loans 4 To depository institutions 734 4,361 1,534 1,489 1,059 1,625 387 1,059 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 0 0 0 1,122 0 0 Federal agency obligations 7 Bought outright 8,731 8,731 8,730 8,730 8,647 8,737 8,731 8,647 8 Held under repurchase agreements 0 0 0 0 0 551 0 0 U.S. government securities Bought outright 9 Bills 63,772 57,659 63,885 66,764 64,691 62,898 62,823 64,691 10 Notes 63,044 63,044 62,610 63,934 63,934 63,044 63,044 63,934 11 Bonds 20,229 20,229 20,663 20,814 20,814 20,229 20,229 20,814 12 Total bought outright1 147,045 140,932 147,158 151,512 149,439 146,171 146,096 149,439 13 Held under repurchase agreements 0 0 0 0 0 9,252 0 0 14 Total U.S. government securities 147,045 140,932 147,158 151,512 149,439 155,423 146,096 149,439 15 Total loans and securities 156,510 154,024 157,422 161,731 159,145 167,458 155,214 159,145 16 Cash items in process of collection 9,137 9,433 11,122 9,128 8,947 7,490 6,792 8,947 17 Bank premises 553 553 553 553 551 552 553 551 Other assets 18 Denominated in foreign currencies2 3,768 3,709 3,783 3,788 3,867 3,721 3,763 3,867 19 All other3 5,044 4,858 3,506 3,980 4,020 4,084 4,987 4,020 20 Total assets 191,216 188,773 192,582 195,367 192,699 199,494 187,521 192,699 LIABILITIES 21 Federal Reserve notes 150,549 152,399 152,817 153,470 153,800 148,172 114499,,667766 153,800 Deposits 22 To depository institutions 23,477 19,217 21,524 25,622 21,581 20,697 20,227 21,581 23 U.S. Treasury—General account 3,196 4,004 3,315 2,689 2,896 16,557 4,841 2,896 24 Foreign—Official accounts 230 239 269 197 360 297 339 360 25 Other 599 554 549 519 581 421 705 581 26 Total deposits 27,502 24,014 25,657 29,027 25,418 37,972 26,112 25,418 27 Deferred availability cash items 7,804 6,472 8,688 7,430 8,049 7,550 6,042 8,049 28 Other liabilities and accrued dividends4 2,145 2,677 2,214 2,164 2,369 2,466 2,270 2,369 29 Total liabilities 188,000 185,562 189,376 192,091 189,636 196,160 184,100 189,636 CAPITAL ACCOUNTS 30 Capital paid in 1,452 1,452 1,456 1,454 1,458 1,446 1,447 1,458 31 Surplus 1,359 1,359 1,359 1,359 1,359 1,359 1,359 1,359 32 Other capital accounts 405 400 391 463 246 529 615 246 33 Total liabilities and capital accounts 191,216 188,773 192,582 195,367 192,699 199,494 187,521 119922,,669999 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 112,132 112,984 111,117 112,712 111,906 109,117 112,181 111,906 Federal Reserve note statement 35 Federal Reserve notes outstanding 176,176 176,743 177,831 178,244 178,700 173,093 175,946 178,700 36 LESS: Held by bank5 25,627 24,344 25,014 24,774 24,900 24,921 26,270 24,900 37 Federal Reserve notes, net 150,549 152,399 152,817 153,470 153,800 148,172 149,676 115533,,880000 Collateral held against notes net: 38 Gold certificate account 11,126 11,123 11,123 11,123 11,123 11,128 11,126 11,123 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 134,805 136,658 137,076 137,729 138,059 132,426 133,932 138,059 42 Total collateral 150,549 152,399 152,817 153,470 153,800 148,172 149,676 153,800 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 A11 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 Nov. 5 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Sept. 30 Oct. 31 Nov. 30 1 Loans—Total 734 4,361 1,534 1,489 1,059 1,625 387 1,059 2 Within 15 days 621 4,2% 1,421 1,317 1,018 1,553 317 1,018 3 16 days to 90 days 108 65 113 172 41 72 34 41 4 91 days to 1 year 5 0 0 0 0 0 36 0 5 Acceptances—Total 0 0 0 0 0 1,122 0 0 6 Within 15 days 0 0 0 0 0 1,122 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 147,045 140,932 147,158 151,512 149,439 155,423 146,096 149,439 10 Within 15 days1 7,017 4,652 7,028 10,456 7,873 13,007 5,528 7,873 11 16 days to 90 days 30,985 26,207 27,883 31,384 32,493 33,499 30,965 32,493 12 91 days to 1 year 44,945 45,975 48,231 44,336 43,553 44,925 45,505 43,553 13 Over 1 year to 5 years 33,093 33,093 33,017 33,837 34,021 32,713 33,093 34,021 14 Over 5 years to 10 years 13,416 13,416 13,136 13,485 13,485 13,690 13,416 13,485 15 Over 10 years 17,589 17,589 17,863 18,014 18,014 17,589 17,589 18,014 16 Federal agency obligations—Total 8,731 8,731 8,730 8,730 8,647 9,288 8,731 8,647 17 Within 15 days1 36 36 202 202 120 725 133 120 18 16 days to 90 days 638 733 648 648 671 648 638 671 19 91 days to 1 year 1,956 1,861 1,834 1,834 1,799 1,897 1,859 1,799 20 Over 1 year to 5 years 4,353 4,353 4,298 4,298 4,331 4,331 4,353 4,331 21 Over 5 years to 10 years 1,230 1,230 1,230 1,230 1,323 1,169 1,230 1,323 22 Over 10 years 518 518 518 518 403 518 518 403 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

A12 Domestic Nonfinancial Statistics • December 1983 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1983 1979 1980 1981 1982 IItteemm Dec. Dec. Dec. Dec. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS' 1 Total reserves2 30.71 32.46 33.75 36.23 36.80 37.15 37.13 37.61 37.80 37.69 37.72 37.62 2 Nonborrowed reserves 29.24 30.77 33.11 35.60 36.01 36.14 36.18 35.98 36.35 36.15 36.28 36.78 3 Required reserves 30.38 31.94 33.43 35.73 36.37 36.68 36.68 37.13 37.29 37.25 37.22 37.12 4 Monetary base3 139.3 151.1 158.8 171.1 176.1 177.3 178.8 180.3 181.1 182.1 183.4 184.5 Not seasonally adjusted 5 Total reserves2 31.26 33.4 34.61 36.96 36.06 36.91 36.64 36.79 37.34 37.06 37.39 37.68 6 Nonborrowed reserves 29.79 31.72 33.98 36.33 35.26 35.90 35.69 35.15 35.89 35.52 35.95 37.84 7 Required reserves 30.93 32.89 34.29 36.46 35.62 36.44 36.19 36.31 36.83 36.62 36.89 37.18 8 Monetary base3 141.5 154.4 161.9 174.4 173.6 176.3 177.8 179.6 181.7 181.8 182.9 184.3 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS4 9 Total reserves2 43.91 40.66 41.92 41.85 38.04 38.65 38.28 38.42 38.95 38.66 37.92 38.14 10 Nonborrowed reserves 42.43 38.97 41.29 41.22 37.24 37.64 37.33 36.78 37.50 37.12 36.48 37.29 11 Required reserves 43.58 40.15 41.60 41.35 37.60 38.17 37.83 37.93 38.44 38.21 37.42 37.63 12 Monetary base3 156.1 162.5 169.7 179.3 175.9 178.4 179.8 181.6 183.7 183.8 183.5 184.7 1. Reserve aggregates include required reserves of member banks and Edge of$210 million; Jan. 14, 1982, a reduction of $60 million; Feb. 11, 1982 an increase Act corporations and other depository institutions. Discontinuities associated of $170 million; Mar. 4, 1982, an estimated reduction of $2.0 billion; May 13, 1982, with the implementation of the Monetary Control Act, the inclusion of Edge Act an estimated increase of $150 million; Aug. 12, 1982 an estimated increase of $140 corporation reserves, and other changes in Regulation D have been removed. million; and Sept. 2, 1982, an estimated reduction of $1.2 billion; Oct. 28, 1982 an 2. Reserve balances with Federal Reserve Banks plus vault cash at institutions estimated reduction of $100 million; Dec. 23, 1982 an estimated reduction of $800 with required reserve balances plus vault cash equal to required reserves at other million; Mar. 3, 1983 an estimated reduction of $1.9 billion; and Sept. 1, 1983, an institutions. estimated reduction of $1.2 billion beginning with the week ended Dec. 23, 1981, 3. Consists of reserve balances and service-related balances and adjustments at reserve aggregates have been reduced by shifts of reservable liabilities to IBFs. Federal Reserve Banks in the current week plus vault cash held two weeks earlier On the basis of reports of liabilities transferred to IBFs by U.S. commercial banks used to satisfy reserve requirements at all depository institutions plus currency and U.S. agencies and branches of foreign banks, it is estimated that required outside the U.S. Treasury, Federal Reserve Banks, the vaults of depository reserves were lowered on average by $60 million to $90 million in December 1981 institutions, and surplus vault cash at depository institutions. and $180 million to $230 million in January 1982, mostly reflecting a reduction in 4. Reserves of depository institutions series reflect actual reserve requirement reservable Eurocurrency transactions. Also, beginning with the week ending Apr. percentages with no adjustments to eliminate the effect of changes in Regulation D 20, 1983, required reserves were reduced an estimated $80 million as a result of including changes associated with the implementation of the Monetary Control the elimination of reserve requirements on nonpersonal time deposits with Act. Includes required reserves of member banks and Edge Act corporations and maturities of 2'/z years or more to less than 3'/i years. beginning Nov. 13, 1980, other depository institutions. Under the transitional phase-in program of the Monetary Control Act of 1980, the net changes in NOTE. Latest monthly and weekly figures are available from the Board's required reserves of depository institutions have been as follows: Effective H.3(502) statistical release. Back data and estimates of the impact on required Nov. 13, 1980, a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245 reserves and changes in reserve requirements are available from the Banking million; Mar. 12, 1981, an increase of $75 million; May 14, 1981, an increase of Section, Division of Research and Statistics, Board of Governors of the Federal $245 million; Sept. 3, 1981, a reduction of $1.1 billion; Nov. 12, 1981, an increase Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A13 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1983 1979 1980 1981 1982 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. JJuullyy AAuugg.. SSeepptt.. OOcctt.. Seaspnally adjusted MEASURES1 1 Ml 389.0 414.1 440.6 478.2 515.5 516.7 517.1 517.9 2 M2 1,497.5 1,630.3 1,794.9 1,959.5 2,126.3 2,136.9' 2,145.4' 2,162.0 3 M3 1,758.4 1,936.7 2,167.9 2,377.6 2,510.3' 2,528.3' 2,543.9' 2,562.0 4 L2 2,131.8 2,343.6 2,622.0 2,8%.8 n.a. n.a. n.a. n.a. SELECTED COMPONENTS 5 Currency 106.5 116.2 123.2 132.8 140.9 141.8 143.0 144.2 6 Travelers checks3 3.7 4.1 4.5 4.2 4.6 4.7 4.7 4.8 7 Demand deposits 262.0 266.8 236.4 239.8 245.8 244.5 243.4 242.9 8 Other checkable deposits4 17.0 26.9 76.6 101.3 124.2 125.8 126.0 126.0 9 Savings deposits5 423.1 400.7 344.4 359.3 323.5 322.1 320.6 318.8 10 Small-denomination time deposits6 635.9 731.7 828.6 859.1 735.1 748.0 757.7 771.0 11 Large-denomination time deposits7 222.2 258.9 302.6 333.8 305.6 311.6 317.9 320.0 Not seasonally adjusted MEASURES1 12 Ml 398.8 424.7 452.1 491.0 514.7 511.6 514.1 519.5 13 M2 1.502.1 1,635.0 1,799.6 1,964.5 2,127.8 2,129.2 2,137.1' 2,161.0 14 M3 1,766.1 1,944.9 2,175.9 2,385.3 2,508.1 2,519.3 2,934.7' 2,560.6 15 V- 2,138.9 2,350.8 2,629.7 2,904.7 n.a. n.a. n.a. n.a. SELECTED COMPONENTS 16 Currency 108.2 118.3 125.4 135.2 142.0 142.1 142.6 143.9 17 Travelers checks3 3.5 3.9 4.3 4.0 5.2 5.1 5.0 4.8 18 Demand deposits 270.1 275.2 244.0 247.7 245.1 241.3 242.1 244.4 19 Other checkable deposits4 17.0 27.2 78.4 104.0 122.5 123.0 124.5 126.4 20 Overnight RPs and Eurodollars8 21.2 28.4 36.1 44.3 52.7 52. <K 53.(K 56.7 21 Savings deposits5 420.7 398.3 342.1 356.7 326.6 321.5 318.2 318.0 22 Money market deposit accounts n.a. n.a. n.a. 43.2 368.4 366.3 366.9 367.4 23 Small-denomination time deposits6 633.1 728.3 824.1 853.9 734.3 746.0 754.8 769.3 Money market mutual funds 24 General purpose and broker/dealer 33.4 61.4 150.9 182.2' 138.8' 139.1' 137.6' 137.8 25 Institution only 9.5 14.9 36.0 47.6' 38.6' 38.4' 39.1' 39.9 26 Large-denomination time deposits7 226.0 262.4 305.9 336.5 301.9 310.3 316.8' 319.5 1. Composition of the money stock measures is as follows: 3. Outstanding amount of U.S. dollar-denominated travelers checks of non- Ml: Averages of daily figures for (1) currency putside the Treasury, Federal bank issuers. Reserve Banks, and the vaults of commercial banks; (2) travelers 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 all money market deposit accounts and (4) negotiable order of withdrawal (NOW) and automatic transfer service (MMDAs). (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) 6. Issued in amounts of less than $100,000 and includes retail RPs. accounts, and demand deposits at mutual savings banks. 7. Issued in amounts of $100,000 or more and are net of the holdings of M2: Ml plus money market deposit accounts, savings and small-denomination domestic banks, thrift institutions, the U.S. government, money market mutual time deposits at all depository institutions, overnight repurchase agreements at funds, and foreign banks and official institutions. commercial banks, overnight Eurodollars held by U.S. residents other than banks 8. Overnight (and continuing contract) RPs are those issued by commercial at Caribbean branches of member banks and balances of money market mutual banks to other than depository institutions and money market mutual funds funds (general purpose and broker/dealer). (general purpose and broker/dealer), and overnight Eurodollars are those issued M3: M2 plus large-denomination time deposits at all depository institutions, by Caribbean branches of member banks to U.S. residents other than depository term RPs at commercial banks and savings and loan associations, and balances of institutions and money market mutual funds (general purpose and broker/dealer). institution-only money market mutual funds. 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. NOTE: Latest monthly and weekly figures are available from the Board's H.6 residents other than banks, bankers acceptances, commercial paper, Treasury (508) release. Back data are available from the Banking Section, Division of bills and other liquid Treasury securities, and U.S. savings bonds. 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

A14 DomesticN onfinancial Statistics • December 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. 1983 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998800'' 1199881111 11998822'' Apr. May June July Aug. Sept. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 62,757.8 80,858.7 90,914.4 103,022.3 107,273.3 106,799.4 107,884.4 111,538.1 110,700.7 2 Major New York City banks 25,156.1 33,891.9 37,932.9 46,025.6 46,891.2 46,445.4 46,978.0 48,373.3 46,903.7 3 Other banks 37,601.7 46,966.9 52,981.6 56,996.7 60,382.1 60,354.1 60,906.4 63,164.9 63,796.9 4 ATS-NOW accounts3 159.3 743.4 1,036.2 1,202.2 1,371.5 1,342.1 1,390.1 1,679.5 1,495.9 5 Savings deposits4 670.0 672.7 721.4 714.9 743.1 776.2 659.4 706.3 712.7 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 198.7 285.8 324.2 359.7 370.4 367.5 371.5 385.7 384.7 7 Major New York City banks 803.7 1,105.1 1,287.6 1,502.8 1,471.5 1,449.1 1,432.2 1,526.7 1,508.8 8 Other banks 132.2 186.2 211.1 222.9 234.3 233.4 236.5 245.3 248.6 9 ATS-NOW accounts3 9.7 14.0 14.5 13.9 15.2 14.7 15.0 17.9 15.9 10 Savings deposits4 3.6 4.1 4.5 5.1 5.4 5.6 4.8 5.2 5.3 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 63,124.4 81,197.9 91,031.9 100,117.1 103,947.8 113,773.4 105,057.8 115,776.6 111,741.3 12 Major New York City banks 25,243.1 34,032.0 38,001.0 43,678.9 44,942.5 50,643.1 45,601.0 49,788.2 48,276.1 13 Other banks 37,881.3 47,165.9 53,030.9 56,438.1 59,005.4 63,130.4 59,456.8 65,988.3 63,465.2 14 ATS-NOW accounts3 158.0 737.6 1,027.1 1,405.3 1,353.1 1,420.7 1,325.3 1,468.9 1,388.3 15 MMDA3 0 0 0 545.8 505.6 714.3 603.3 655.5 641.4 16 Savings deposits4 669.8 672.9 720.0 779.9 722.2 779.3 661.6 694.3 688.9 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 202.3 286.1 325.0 347.9 368.1 393.1 357.6 406.7 387.2 18 Major New York City banks 814.8 1,114.2 1,295.7 1,446.9 1,471.0 1,563.6 1,383.5 1,621.6 1,574.5 19 Other banks 134.8 186.2 211.5 219.1 234.3 245.6 227.9 259.8 246.1 20 ATS-NOW accounts3 9.7 14.0 14.3 15.6 15.3 15.7 14.5 16.0 15.0 21 MMDA5 0 0 0 2.8 2.4 3.3 2.8 3.0 2.9 22 Savings deposits4 3.6 4.1 4.5 5.6 5.2 5.6 4.8 5.1 5.2 1. Annual averages of monthly figures. NOTE. Historical data for demand deposits are available back to 1970 estimated 2. Represents accounts of individuals, partnerships, and corporations and of in part from the debits series for 233 SMSAs 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 A15 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1981 1982 1983 1981 1982 1983 CCaatteeggoorryy Dec.2 Dec. July Aug. Sept. Oct. Dec.2 Dec. July Aug. Sept. Oct. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,316.3 1,412.1 1,499.9 1,513.2 1,520.3 1,533.1 1,326.1 1,422.5 1,493.6 1,507.0 1,521.6 1,538.2 2 U.S. Treasury securities 111.0 130.9 172.9 174.4 176.9 182.3 111.4 131.5 171.6 172.4 176.3 180.8 3 Other securities 231.4 239.1 246.1 247.8 247.1 246.6 232.8 240.6 244.8 247.0 247.1 246.9 4 Total loans and leases3 973.9 1,042.0 1,080.9 1,091.0 1,096.3 1,104.2 981.8 1,050.4 1,077.2 1,087.5 1,098.2 1,110.4 5 Commercial and industrial loans 358.0 392.4 399.2 402.7 402.6 404.7 360.1 394.7 397.9 400.2 402.2 405.4 6 Real estate loans 285.7 303.2 319.4 322.5 326.2 329.2 286.8 304.1 318.4 322.2 326.9 330.5 7 Loans to individuals 185.1 191.8 203.1 205.5 207.7 211.9 186.4 193.1 202.1 205.7 209.1 213.6 8 Security loans 21.9 24.7 23.7 22.9 23.7 25.2 22.7 25.5 23.1 23.6 23.4 25.0 9 Loans to nonbank financial institutions 30.2 31.1 31.2 30.9 30.8 30.4 31.2 32.1 30.6 30.7 30.9 30.6 10 Agricultural loans 33.0 36.1 36.8 37.2 37.6 37.8 33.0 36.1 37.2 37.6 38.2 38.3 11 Lease financing receivables.... 12.7 13.1 12.9 12.9 12.9 13.0 12.7 13.1 12.9 12.9 12.9 13.0 12 All other loans 47.2 49.7 54.6 56.5 54.8 52.0 49.2 51.7 55.0 54.6 54.6 54.1 MEMO: 13 Total loans and securities plus loans sold3 4 1,319.1 1,415.0 1,502.6 1,515.7 1,522.8 1,535.6 1,328.9 1,425.4 1,496.3 1,509.6 1,524.2 1,540.7 14 Total loans plus loans sold3 4 .... 976.7 1,045.0 1,083.5 1,093.5 1,098.9 1,106.7 984.7 1,053.3 1,079.9 1,090.1 1,100.8 1,113.0 15 Total loans sold to affiliates3'4.... 2.8 2.9 2.7 2.6 2.6 2.6 2.8 2.9 2.7 2.6 2.6 2.6 16 Commercial and industrial loans plus loans sold4 360.2 394.6 401.3 404.5 404.6 406.7 362.3 396.9 400.0 402.2 404.2 407.4 17 Commercial and industrial loans sold4 2.2 2.3 2.1 2.0 2.0 2.0 2.2 2.3 2.1 2.0 2.0 2.0 18 Acceptances held 8.9 8.5 8.5 8.5 8.3 8.9 9.8 9.5 8.4 8.2 8.3 8.8 19 Other commercial and industrial loans 349.1 383.8 390.7 394.1 394.3 395.8 350.3 385.2 389.5 392.0 393.9 396.6 20 To U.S. addressees5 334.9 373.5 378.2 381.5 381.8 383.1 334.3 372.7 377.4 379.8 381.6 383.9 21 To non-U.S. addressees 14.2 10.3 12.5 12.5 12.5 12.7 16.1 12.4 12.1 12.2 12.3 12.8 22 Loans to foreign banks 19.0 13.5 14.4 14.5 14.3 14.7 20.0 14.5 14.0 14.0 14.7 15.0 1. Includes domestically chartered banks; U.S. branches and agencies of 4. Loans sold are those sold outright to a bank's own foreign branches, foreign banks, New York investment companies majority owned by foreign nonconsolidated nonbank affiliates of the bank, the bank's holding company (if banks, and Edge Act corporations owned by domestically chartered and foreign not a bank), and nonconsolidated nonbank subsidiaries of the holding company. banks. 5. United States includes the 50 states and the District of Columbia. 2. Beginning December 1981, shifts of foreign loans and securities from U.S. banking offices to international banking facilities (IBFs) reduced the levels of NOTE. Data are prorated averages of Wednesday estimates for domestically several items. Seasonally adjusted data that include adjustments for the amounts chartered banks, based on weekly reports of a sample of domestically chartered shifted from domestic offices to IBFs are available in the Board's G.7 (407) banks and quarterly reports of all domestically chartered banks. For foreignstatistical release (available from Publications Services, Board of Governors of related institutions, data are averages of month-end estimates based on weekly the Federal Reserve System, Washington, D.C. 20551). reports from large agencies and branches and quarterly reports from all agencies, 3. Excludes loans to commercial banks in the United States. branches, investment companies, and Edge Act corporations engaged in banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 DomesticN onfinancial Statistics • December 1983 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1981 1982 1983 SSoouurrccee Dec. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total nondeposit funds 1 Seasonally adjusted2 96.3 87.8 83.0 73.7 76.7 76.0 80.3 90.9 88.3 76.3 81.6 83.2 79.3 2 Not seasonally adjusted 98.1 90.0 84.6 75.2 77.7 76.8 79.0 90.5 90.0 78.5 85.9 86.0 81.8 Federal funds, RPs, and other borrowings from nonbanks3 i Seasonally adjusted 111.8 129.7r 128.0 132.4 135.3 135.4 139.9 145.9 140.7 132.7 130.9 132.2 132.5 4 Not seasonally adjusted 113.5 131.9' 129.6 133.9 136.3 136.2 138.5 145.5 142.4 134.8 135.2 135.0 135.1 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.1 -44.8 -47.9 -61.6 -61.5 -62.3 -62.4 -57.7 -55.1 -58.9 -51.8 -51.4 -55.8 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.9 2.9 3.0 3.0 3.0 3.0 2.8 2.7 2.7 2.6 2.6 2.6 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.4 -38.3 -39.5 -49.9 -50.4 -52.7 -52.6 -48.6 -49.1 -50.8 -45.2 -46.2 -48.4 8 Gross due from balances 54.9 69.9 72.2 79.2 78.9 79.7 80.3 76.3 75.8 77.4 73.6 74.7 76.3 9 Gross due to balances 32.4 31.5 32.6 29.2 28.4 26.8 27.6 27.6 26.6 26.5 28.3 28.3 27.9 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -6.4 -8.2 -11.6 -11.0 -9.4 -9.7 -9.0 -5.9 -7.9 -6.5 -5.1 -7.4 11 Gross due from balances 48.1 53.6 54.9 57.0 55.5 56.1 55.9 55.8 53.9 55.2 53.5 53.5 55.4 12 Gross due to balances 52.4 47.1 46.6 45.3 44.4 46.6 46.1 46.7 47.9 47.2 47.0 48.3 48.0 Security RP borrowings 13 Seasonally adjusted" 59.0 71.5 71.0 72.2 74.3 74.7 79.3 84.6 81.4 75.6 74.2 76.0 78.0 14 Not seasonally adjusted 59.2 72.1 71.1 72.2 73.7 73.9 76.3 82.6 81.5 76.1 76.9 77.2 79.0 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 10.6 11.9 15.7 8.8 12.5 13.5 11.3 13.0 24.0 20.6 16.5 21.6 16 Not seasonally adjusted 11.1 7.8 10.8 16.3 10.2 13.2 14.2 12.5 13.2 21.8 16.4 18.0 24.7 Time deposits, $100,000 or more9 17 Seasonally adjusted 325.4 360.0 349.6 321.4 307.2 300.0 296.6 287.2 287.0 284.9 284.2 283.2 278.3 18 Not seasonally adjusted 330.4 361.7 353.9 325.4 310.5 300.7 293.0 285.0 283.5 281.3 283.9 283.9 279.6 1. Commercial banks are those in the 50 states and the District of Columbia banks, term federal funds, overdrawn due from bank balances, loan RPs, and with national or state charters plus agencies and branches of foreign banks, New participations in pooled loans. Includes averages of daily figures for member York investment companies majority owned by foreign banks, and Edge Act banks and averages of current and previous month-end data for foreign-related corporations owned by domestically chartered and foreign banks. institutions. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 4. Loans initially booked by the bank and later sold to affiliates that are still nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. held by affiliates. Averages of Wednesday data. Includes averages of Wednesday data for domestically chartered banks and 5. Averages of daily figures for member and nonmember banks. averages of current and previous month-end data for foreign-related institutions. 6. Averages of daily data. 3. Other borrowings are borrowings on any instrument, such as a promissory 7. Based on daily average data reported by 122 large banks. note or due bill, given for the purpose of borrowing money for the banking 8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at business. This includes borrowings from Federal Reserve Banks and from foreign commercial banks. Averages of daily data. 9. Averages of Wednesday figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banking Institutions A17 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1982 1983 Dec. Feb. Mar. Apr. May June July Aug. Sept Oct. Nov. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,370.3 1,373.7 1,392.2 1,403.8 1,411.9 1,435.1 1,437.4 1,457.0 1,466.1 1,483.0 1,502.3 2 Loans, excluding interbank 1,000.7 991.4 1,001.7 1,005.1 1,007.5 1,025.6 1,029.1 1,043.4 1,049.7 1,060.3 1,075.5 3 Commercial and industrial 356.7 355.7 358.0 357.9 356.7 360.1 361.1 363.0 364.0 367.0 372.8 4 Other 644.0 635.8 643.7 647.2 650.8 665.6 668.0 680.4 685.7 693.3 702.7 U.S. Treasury securities 129.0 141.4 150.6 155.5 160.9 166.0 165.1 167.5 171.2 176.8 180.4 6 Other securities 240.5 240.8 239.9 243.3 243.5 243.5 243.3 246.1 245.2 245.9 246.4 7 Cash assets, total 184.4 184.7 168.9 170.1 164.5 176.9 168.7 176.9 160.0 164.0 179.0 8 Currency and coin 23.0 20.3 19.9 20.4 20.3 21.3 20.7 21.0 20.8 20.5 22.3 9 Reserves with Federal Reserve Banks 25.4 25.3 20.5 23.9 22.4 18.8 20.6 22.5 15.4 19.7 17.6 10 Balances with depository institutions 67.6 71.6 67.1 66.1 65.6 69.7 67.1 69.0 66.7 67.1 70.9 11 Cash items in process of collection ... 68.4 67.5 61.5 59.6 56.3 67.1 60.3 64.4 56.9 56.6 69.0 12 Other assets2 265.3 263.6 257.9 252.4 248.3 253.2 254.5 257.2 252.3 253.0 261.9 13 Total assets/total liabilities and capital ... 1,820.0 1,822.0 1,818.9 1,826.3 1,824.8 1,865.2 1,860.6 1,891.0 1,878.4 1,900.0 1,943.9 14 Deposits 1,361.8 1,368.3 1,374.2 1,368.0 1,370.8 1,402.7 1,396.5 1,420.1 1,408.1 1,419.5 1,459.2 15 Demand 363.9 337.9 333.4 329.2 324.5 344.4 334.2 344.7 328.1 331.3 358.1 16 Savings 296.4 395.2 419.2 426.9 440.2 445.3 447.5 449.0 448.8 451.5 458.3 17 Time 701.5 635.2 621.6 611.9 606.1 613.1 614.8 626.4 631.2 636.8 642.8 18 Borrowings 215.1 218.0 211.3 224.0 214.1 221.2 217.5 217.2 217.8 226.8 219.7 19 Other liabilities 109.2 106.0 103.5 102.3 104.7 104.3 105.5 107.6 107.1 106.5 112.6 20 Residual (assets less liabilities) 133.8 129.6 130.0 132.0 135.1 137.0 141.0 146.1 145.4 147.2 152.4 MEMO: 21 U.S. Treasury note balances included in borrowing 10.7 7.0 9.6 17.8 2.7 19.3 19.3 14.8 20.8 22.5 2.8 22 Number of banks 14,787 14,812 14,819 14,823 14,817 14,826 14,785 14,795 14,804 14,800 14,799 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,429.7 1,429.8 1,451.3 1,460.8 1,467.6 1,491.5 1,494.1 1,515.4 1,525.4 1,541.8 1,563.2 24 Loans, excluding interbank 1,054.8 1,042.3 1,054.5 1,055.7 1,056.4 1,075.2 1,078.8 1,094.9 1,102.5 1,112.2 1,129.2 25 Commercial and industrial 395.3 392.3 395.9 393.5 391.7 395.3 397.7 400.6 402.7 405.3 412.0 26 Other 659.5 650.0 658.6 662.2 664.7 679.9 681.2 694.3 699.8 706.8 717.2 27 U.S. Treasury securities 132.8 145.1 155.3 160.2 166.1 171.3 170.3 172.7 176.1 182.0 185.9 28 Other securities 242.1 242.4 241.5 244.9 245.2 245.1 245.0 247.8 246.9 247.7 248.1 29 Cash assets, total 200.7 200.5 185.5 186.3 180.3 193.5 185.2 193.3 174.7 178.4 195.0 30 Currency and coin 23.0 20.3 19.9 20.4 20.3 21.3 20.7 21.1 20.9 20.5 22.3 31 Reserves with Federal Reserve Banks 26.8 26.7 22.0 25.4 23.8 20.0 21.9 24.0 16.6 20.8 19.1 32 Balances with depository institutions . 81.4 84.9 81.0 79.8 78.9 84.0 81.2 82.8 79.3 79.5 83.6 33 Cash items in process of collection ... 69.4 68.6 62.6 60.7 57.3 68.2 61.4 65.4 58.0 57.6 70.0 34 Other assets2 341.7 330.2 325.4 317.8 309.5 318.1 318.7 324.6 320.9 318.8 329.7 35 Total assets/total liabilities and capital ... 1,972.1 1,960.4 1,962.2 1,964.9 1,957.4 2,003.2 1,998.0 2,033.3 2,021.0 2,039.1 2,088.0 36 Deposits 1,409.7 1,412.6 1,419.5 1,411.0 1,413.1 1,443.8 1,438.1 1,461.4 1,448.9 1,459.0 1,499.4 37 Demand 376.2 350.2 345.7 341.1 336.4 356.4 346.4 356.6 340.0 343.2 369.9 38 Savings 296.7 395.6 419.7 427.3 440.7 445.7 448.0 449.5 449.3 452.0 458.8 39 Time 736.7 666.8 654.1 642.6 636.0 641.6 643.8 655.3 659.5 663.8 670.6 40 Borrowings 278.3 276.0 269.9 281.3 269.5 278.2 277.9 280.5 282.6 289.6 282.5 41 Other liabilities 148.4 140.4 141.1 138.6 137.9 142.3 139.1 143.4 142.3 141.5 151.9 42 Residual (assets less liabilities) 135.7 131.5 131.9 133.9 137.0 138.9 142.9 148.0 147.3 149.1 154.2 MEMO: 43 U.S. Treasury note balances included in borrowing 10.7 7.0 9.6 17.8 2.7 19.3 19.3 14.8 20.8 22.5 2.8 44 Number of banks 15,329 15,366 15,376 15,390 15,385 15,396 15,359 15,370 15,382 15,383 15,382 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

A18 Domestic Nonfinancial Statistics • December 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 1983 AAccccoouunntt Oct. 5 Oct. 12 Oct. 19 Oct. 26 Nov. 2p Nov. 9p Nov. 16p Nov. 23p Nov. 30p 1 Cash items in process of collection 50,782 56,402 48,320 44,160 49,878 49,628 53,639 49,272 53,895 2 Demand deposits due from banks in the United States.. 7,635 8,155 7,327 7,151 7,144 7,372 8,017 6,404 8,096 3 All other cash and due from depository institutions .... 30,605 34,006 33,928 32,295 33,431 29,220 31,786 34,728 32,121 4 Total loans and securities 685,504 685,466 683,504 679,938 689,481 689,536 688,889 685,627 693,548 Securities 5 U.S. Treasury securities 55,513 54,151 55,231 56,029 56,304 57,065 58,501 57,373 58,449 6 Trading account 9,506 7,903 8,748 9,296 9,114 9,383 9,701 8,178 9,044 7 Investment account, by maturity 46,007 46,248 46,483 46,733 47,190 47,682 48,800 49,194 49,405 8 One year or less 14,246 14,456 14,817 14,684 14,680 15,089 15,224 15,392 15,412 9 Over one through five years 28,875 28,726 28,600 28,828 29,296 29,368 30,784 30,982 31,252 10 Over five years 2,886 3,066 3,066 3,221 3,213 3,225 2,792 2,820 2,740 11 Other securities 83,793 82,809 84,075 83,860 84,084 83,617 83,558 84,479 83,886 1? Trading account 6,206 5,297 6,318 6,123 6,346 5,799 5,719 6,227 5,675 13 Investment account 77,587 77,511 77,757 77,736 17,129 77,818 77,839 78,252 78,210 14 U.S. government agencies 16,065 16,020 16,054 15,952 15,982 15,885 15,881 16,021 15,905 15 States and political subdivisions, by maturity 57,922 57,868 58,030 58,126 58,090 58,300 58,292 58,561 58,616 16 One year or less 7,731 7,685 7,803 7,809 7,833 7,942 7,863 7,992 7,980 17 Over one year 50,192 50,183 50,227 50,317 50,256 50,359 50,429 50,569 50,635 18 Other bonds, corporate stocks and securities 3,600 3,624 3,672 3,658 3,667 3,633 3,665 3,670 3,690 Loans 19 Federal funds sold1 47,647 49,066 45,425 41,452 45,781 44,103 42,533 40,594 44,776 70 To commercial banks 36,400 38,241 34,578 29,380 33,232 32,308 30,286 28,018 33,558 71 To nonbank brokers and dealers in securities 8,393 7,797 7,740 9,062 9,394 8,391 9,196 9,406 8,369 77 To others 2,855 3,028 3,107 3,010 3,156 3,404 3,052 3,170 2,850 73 Other loans, gross 511,999 512,929 512,263 512,145 516,970 518,472 518,030 516,923 520,179 74 Commercial and industrial 215,001 215,880 215,429 215,064 216,820 218,664 216,744 216,342 217,311 25 Bankers acceptances and commercial paper 3,728 4,573 4,556 4,3% 4,854 5,323 4,352 3,893 4,697 76 All other 211,273 211,307 210,874 210,668 211,966 213,341 212,393 212,449 212,614 77 U.S. addressees 204,114 204,106 203,723 203,445 204,710 205,995 205,122 205,186 205,335 78 Non-U.S. addressees 7,158 7,201 7,151 7,222 7,256 7,346 7,271 7,263 7,278 79 Real estate 138,216 138,555 139,083 139,324 139,431 139,251 139,625 139,692 139,935 30 To individuals for personal expenditures 80,530 80,937 81,052 81,524 81,650 81,765 81,989 82,425 82,876 To financial institutions 31 Commercial banks in the United States 7,411 7,361 7,779 7,491 7,865 8,188 7,993 8,123 7,939 32 Banks in foreign countries 8,920 8,982 8,647 8,555 8,890 8,888 8,871 8,321 8,680 33 Sales finance, personal finance companies, etc 9,399 9,325 9,512 9,126 9,655 9,322 9,297 9,178 9,226 34 Other financial institutions 16,242 16,230 15,831 15,220 15,581 15,888 15,438 15,023 15,243 35 To nonbank brokers and dealers in securities 9,680 9,177 8,551 9,384 9,840 9,210 10,377 10,579 11,243 36 To others for purchasing and carrying securities2 .... 3,258 3,292 3,271 3,225 3,332 3,378 3,186 3,195 3,178 37 To finance agricultural production 7,152 7,106 7,083 7,306 7,284 7,221 7,208 7,161 7,170 38 All other 16,190 16,084 16,025 15,926 16,620 16,696 17,300 16,884 17,379 39 LESS; Unearned income 5,006 5,024 5,008 5,008 4,979 5,018 4,997 4,979 4,970 40 Loan loss reserve 8,441 8,465 8,482 8,540 8,680 8,703 8,737 8,763 8,772 41 Other loans, net 498,551 499,440 498,773 498,597 503,311 504,751 504,296 503,181 506,437 47 Lease financing receivables 10,962 10,944 10,957 10,968 10,987 10,992 10,989 11,015 11,043 43 All other assets 147,158 142,483 141,263 140,511 143,452 146,633 142,086 140,556 141,818 44 Total assets 932,646 937,457 925,300 915,024 934,374 933,382 935,406 927,602 940,520 Deposits 45 Demand deposits 181,675 188,660 174,880 168,9% 178,266 178,264 182,706 172,774 185,626 46 Mutual savings banks 735 770 808 616 707 713 734 563 677 47 Individuals, partnerships, and corporations 136,996 143,995 133,597 129,802 136,457 136,286 138,397 133,493 141,540 48 States and political subdivisions 4,917 4,540 4,735 4,443 5,522 4,340 4,844 4,699 5,117 49 U.S. government 3,314 1,560 2,759 1,796 1,154 1,496 2,314 2,026 1,933 50 Commercial banks in the United States 20,494 21,326 18,712 18,543 19,740 18,601 20,147 18,289 20,136 51 Banks in foreign countries 5,799 6,776 5,731 5,780 6,316 5,978 6,918 6,000 6,497 52 Foreign governments and official institutions 979 941 809 832 711 751 899 936 1,276 53 Certified and officers' checks 8,440 8,752 7,728 7,183 7,659 10,100 8,453 6,768 8,449 54 Time and savings deposits 419,273 419,677 419,856 420,288 422,723 424,026 423,362 425,988 426,813 55 Savings 174,859 173,528 172,329 171,623 173,299 173,774 173,777 173,506 174,179 56 Individuals and nonprofit organizations 155,190 153,403 152,121 151,257 152,808 152,998 152,741 152,380 152,899 57 Partnerships and corporations operated for profit .. 18,344 18,830 18,946 19,157 19,267 19,593 19,776 19,922 20,044 58 Domestic governmental units 1,280 1,258 1,224 1,170 1,179 1,143 1,211 1,150 1,195 59 All other 44 37 38 39 45 40 49 53 40 60 Time 244,414 246,149 247,527 248,665 249,423 250,252 249,585 252,482 252,634 61 Individuals, partnerships, and corporations 217,880 219,656 221,014 221,932 222,940 223,841 222,939 225,435 225,600 67 States and political subdivisions 16,522 16,545 16,638 16,785 16,572 16,609 16,648 16,955 16,672 63 U.S. government 264 268 269 236 224 211 218 214 214 64 Commercial banks in the United States 6,683 6,567 6,538 6,668 6,559 6,461 6,599 6,728 7,060 65 Foreign governments, official institutions, and banks 3,065 3,113 3,067 3,042 3,128 3,129 3,180 3,150 3,089 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 466 1,393 1,021 1,099 379 3,725 910 605 515 67 Treasury tax-and-loan notes 15,533 15,163 15,916 15,833 15,032 2,743 1,662 1,340 1,378 68 All other liabilities for borrowed money3 168,695 166,810 165,994 160,888 168,664 171,901 172,658 170,290 171,473 69 Other liabilities and subordinated notes and debentures . 85,193 83,937 86,022 86,385 87,326 90,595 92,033 94,716 92,303 70 Total liabilities 870,836 875,641 863,691 853,488 872,390 871,253 873,330 865,713 878,108 71 Residual (total assets minus total liabilities)4 61,810 61,816 61,609 61,535 61,984 62,129 62,076 61,888 62,412 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis or 2. Other than financial institutions and brokers and dealers. for other analytic uses. 3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A19 1.27 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billlion or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Oct. 5 Oct. 12 Oct. 19 Oct. 26 Nov. 2p Nov. 9p Nov. 16^ Nov. 23p Nov. 30? 1 Cash items in process of collection 47,826 52,776 45,492 41,547 46,875 46,927 50,398 46,071 50,796 2 Demand deposits due from banks in the United States. 7,021 7,562 6,742 6,606 6,585 6,755 7,386 5,821 7,401 3 All other cash and due from depository institutions 27,865 31,065 31,013 29,319 30,516 26,405 28,915 31,783 29,191 4 Total loans and securities 635,053 635,229 633,806 630,240 639,047 639,129 638,882 635,902 643,380 Securities 5 U.S. Treasury securities 50,561 49,145 50,242 51,030 51,254 51,944 53,424 52,232 53,302 6 Trading account 9,312 7,745 8,632 9,168 9,020 9,288 9,576 8,095 8,952 7 Investment account, by maturity 41,249 41,400 41,610 41,862 42,234 42,656 43,848 44,136 44,350 8 One year or less 12,562 12,713 13,078 12,958 12,975 13,326 13,551 13,624 13,702 9 Over one through five years 26,046 25,865 25,708 25,928 26,316 26,374 27,774 27,961 28,175 10 Over five years 2,641 2,822 2,824 2,976 2,943 2,955 2,522 2,550 2,473 11 Other securities 76,052 75,063 76,235 75,965 76,208 75,764 75,711 76,620 76,050 12 Trading account 6,079 5,186 6,145 5,925 6,167 5,651 5,537 6,077 5,559 13 Investment account 69,974 69,877 70,091 70,040 70,041 70,113 70,174 70,543 70,491 14 U.S. government agencies 14,439 14,386 14,384 14,261 14,291 14,192 14,223 14,350 14,246 15 States and political subdivisions, by maturity 52,317 52,250 52,412 52,481 52,445 52,649 52,646 52,887 52,916 16 One year or less 7,078 7,028 7,150 7,149 7,164 7,306 7,228 7,360 7,342 17 Over one year 45,240 45,222 45,263 45,333 45,280 45,343 45,418 45,528 45,574 18 Other bonds, corporate stocks and securities 3,217 3,241 3,294 3,297 3,305 3,272 3,304 3,305 3,329 Loans 19 Federal funds sold1 41,751 43,454 40,573 36,632 40,393 38,894 37,761 36,335 40,235 20 To commercial banks 31,305 33,304 30,371 25,246 28,566 27,828 26,142 24,291 29,460 21 To nonbank brokers and dealers in securities 7,627 7,154 7,123 8,410 8,727 7,684 8,599 8,917 7,978 22 To others 2,818 2,996 3.078 2,977 3,101 3,381 3,020 3,128 2,797 23 Other loans, gross 479,114 480,033 479,219 479,134 483,830 485,218 484,686 483,422 486,500 24 Commercial and industrial 202,964 203,755 203,261 202,910 204,666 206,432 204,537 204,022 204,973 25 Bankers acceptances and commercial paper 3,528 4,353 4,341 4,185 4,650 5,128 4,160 3,684 4,502 26 All other 199,436 199,402 198,921 198,725 200,016 201,304 200,377 200,319 200,471 27 U.S. addressees 192,398 192,321 191,890 191,621 192,874 194,080 193,220 193,171 193,337 28 Non-U.S. addressees 7,038 7,080 7,031 7,104 7,142 7,224 7,157 7,148 7,134 29 Real estate 129,406 129,767 130,178 130,424 130,556 130,401 130,714 130,743 130,961 30 To individuals for personal expenditures 71,426 71,793 71,886 72,287 72,353 72,425 72,622 72,999 73,380 To financial institutions 31 Commercial banks in the United States 6,913 6,880 7,358 7,088 7,378 7,706 7,536 7,619 7,467 32 Banks in foreign countries 8,825 8,889 8,545 8,460 8,750 8,764 8,757 8,210 8,560 33 Sales finance, personal finance companies, etc 9,182 9,110 9,299 8,906 9,438 9,113 9,093 8,962 9,007 34 Other financial institutions 15,540 15,514 15,118 14,550 14,928 15,230 14,798 14,401 14,584 35 To nonbank brokers and dealers in securities 9,596 9,089 8,460 9,295 9,768 9,130 10,287 10,506 11,173 36 To others for purchasing and carrying securities2 2,996 3,032 3,010 2,966 3,073 3,115 2,922 2,926 2,907 37 To finance agricultural production 6,937 6,902 6,877 7,102 7,082 7,022 7,012 6,967 6,975 38 All other 15,328 15,303 15,227 15,146 15,836 15,880 16,407 16,085 16,513 39 LESS: Unearned income 4,420 4,434 4,418 4,417 4,394 4,431 4,410 4,389 4,387 40 Loan loss reserve 8,006 8,030 8,045 8,104 8,243 8,259 8,289 8,318 8,321 41 Other loans, net 466,688 467,568 466,756 466,613 471,192 472,527 471,987 470,715 473,792 42 Lease financing receivables 10,534 10,516 10,528 10,536 10,554 10,558 10,554 10,580 10,606 43 All other assets 142,990 138,419 137,093 136,324 139,322 142,367 137,761 136,206 137,429 44 Total assets 871,290 875,567 864,674 854,572 872,900 872,141 873,897 866,362 878,802 Deposits 45 Demand deposits 168,415 175,078 162,387 156,943 165,521 165,888 169,743 160,011 172,409 46 Mutual savings banks 702 731 781 592 675 674 702 534 649 47 Individuals, partnerships, and corporations 126,668 133,222 123,777 120,125 126,481 126,414 128,262 123,351 131,084 48 States and political subdivisions 4,381 4,050 4,223 3,962 4,935 3,820 4,258 4,145 4,516 49 U.S. government 3,041 1,424 2,494 1,654 1,009 1,380 2,088 1,857 1,753 50 Commercial banks in the United States 18,810 19,503 17,184 17,084 18,078 17,076 18,475 16,722 18,494 51 Banks in foreign countries 5,740 6,730 5,692 5,738 6,269 5,918 6,878 5,952 6,452 52 Foreign governments and official institutions 969 934 808 830 710 750 898 935 1,275 53 Certified and officers' checks 8,105 8,484 7,428 6,956 7,362 9,856 8,183 6,514 8,185 54 Time and savings deposits 388,378 388,687 388,856 389,071 391,342 392,352 391,646 394,295 395,316 55 Savings 161,661 160,308 159,203 158,431 159,969 160,328 160,263 160,116 160,755 56 Individuals and nonprofit organizations 143,641 141,874 140,697 139,776 141,204 141,307 141,020 140,795 141,299 57 Partnerships and corporations operated for profit .. 16,822 17,267 17,374 17,569 17,655 17,948 18,095 18,228 18,342 58 Domestic governmental units 1,140 1,116 1,080 1,034 1,050 1,018 1,084 1,025 1,059 59 All other 58 52 53 53 60 54 64 68 55 60 Time 226,717 228,379 229,652 230,640 231,373 232,025 231,383 234,180 234,561 61 Individuals, partnerships, and corporations 202,069 203,796 205,069 205,837 206,857 207,625 206,750 209,185 209,577 62 States and political subdivisions 14,846 14,845 14,930 15,058 14,845 14,839 14,885 15,161 14,877 63 U.S. government 244 248 247 214 202 190 198 194 195 64 Commercial banks in the United States 6,492 6,377 6,338 6,488 6,342 6,242 6,369 6,490 6,823 65 Foreign governments, official institutions, and banks 3,065 3,113 3,067 3,042 3,128 3,129 3,180 3,150 3,089 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 466 1,373 1,001 1,090 379 3,686 813 580 480 67 Treasury tax-and-loan notes 14,704 14,344 15,087 15,006 14,220 2,580 1,494 1,232 1,302 68 All other liabilities for borrowed money3 158,364 156,349 155,665 150,527 158,270 161,055 162,261 159,852 160,838 69 Other liabilities and subordinated notes and debentures . 83,076 81,806 83,939 84,324 85,198 88,453 89,830 92,480 90,068 70 Total liabilities 813,403 817,638 806,935 796,961 814,929 814,014 815,786 808,451 820,412 71 Residual (total assets minus total liabilities)4 57,886 57,929 57,739 57,611 57,970 58,127 58,111 57,911 58,390 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis or 2. Other than financial institutions and brokers and dealers. for other analytic uses. 3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • December 1983 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Oct. 5 Oct. 12 Oct. 19 Oct. 26 Nov. 2p Nov. 9p Nov. 16^ Nov. 23p Nov. 3OP 1 Cash items in process of collection 15,658 17,163 16,100 13,682 14,002 19,123 15,874 13,488 16,566 2 Demand deposits due from banks in the United States.. 1,032 1,316 1,143 1,105 978 1,302 1,383 814 1,335 3 All other cash and due from depository institutions .... 5,446 7,321 7,081 4,266 6,069 3,579 5,099 5,434 5,264 4 Total loans and securities1 145,088 147,112 145,535 145,075 148,231 146,850 147,867 147,994 150,616 Securities 5 U.S. Treasury securities2 6 Trading account2 7 Investment account, by maturity 9,818 9,538 9,552 9,554 9,440 9,845 10,366 10,530 10,461 8 One year or less 2,402 2,479 2,543 2,515 2,455 2,899 3,083 3,123 2,972 9 Over one through five years 6,545 6,172 6,123 6,142 6,078 6,039 6,847 6,972 7,053 10 Over five years 872 886 886 897 907 907 435 435 436 11 Other securities2 12 Trading account2 13 Investment account 14,696 14,710 14,871 14,885 14,919 15,063 14,998 15,152 15,145 14 U.S. government agencies 1,513 1,518 1,515 1,482 1,476 1,476 1,408 1,401 1,396 15 States and political subdivisions, by maturity 12,450 12,448 12,594 12,628 12,712 12,855 12,864 13,010 13,007 16 One year or less 1,790 1,753 1,889 1,888 1,895 2,004 1,974 2,019 1,940 17 Over one year 10,661 10,695 10,704 10,740 10,817 10,851 10,890 10,990 11,067 18 Other bonds, corporate stocks and securities 733 745 762 775 731 732 726 741 742 Loans 19 Federal funds sold3 9,424 11,739 10,994 11,032 11,907 10,571 10,183 11,390 13,136 20 To commercial banks 4,508 6,517 5,657 4,932 5,361 4,615 3,968 4,912 7,629 21 To nonbank brokers and dealers in securities 3,618 3,665 3,634 4,505 4,821 4,042 4,362 4,603 3,951 22 To others 1,298 1,556 1,703 1,596 1,724 1,914 1,853 1,876 1,557 23 Other loans, gross 115,158 115,132 114,120 113,642 116,052 115,461 116,415 115,038 116,010 24 Commercial and industrial 57,818 58,174 57,851 57,188 57,958 58,687 58,314 57,500 57,644 25 Bankers' acceptances and commercial paper 1,126 1,443 1,576 1,499 1,727 1,815 1,452 1,151 1,563 26 All other 56,692 56,731 56,275 55,689 56,232 56,871 56,862 56,349 56,081 27 U.S. addressees 55,083 55,058 54,596 53,955 54,422 55,081 55,090 54,554 54,288 28 Non-U.S. addressees 1,609 1,673 1,679 1,734 1,810 1,791 1,772 1,795 1,793 29 Real estate 20,306 20,398 20,522 20,600 20,646 20,580 20,622 20,630 20,580 30 To individuals for personal expenditures 12,589 12,769 12,797 12,842 12,693 12,717 12,718 12,791 12,829 To financial institutions 31 Commercial banks in the United States 1,743 1,780 1,655 1,554 1,605 1,618 1,659 1,607 1,589 32 Banks in foreign countries 3,112 3,133 2,678 2,662 2,984 2,753 2,901 2,564 2,831 33 Sales finance, personal finance companies, etc 3,857 3,770 3,924 3,628 3,992 3,673 3,678 3,529 3,625 34 Other financial institutions 4,380 4,313 4,275 4,206 4,230 4,356 4,091 3,979 4,112 35 To nonbank brokers and dealers in securities 5,886 5,286 5,003 5,435 6,089 5,115 6,405 6,669 7,058 36 To others for purchasing and carrying securities4 .... 591 603 610 599 668 681 648 624 590 37 To finance agricultural production 453 439 436 689 691 698 701 661 661 38 All other 4,424 4,467 4,369 4,239 4,495 4,584 4,678 4,481 4,491 39 LESS: Unearned income 1,448 1,456 1,449 1,469 1,459 1,460 1,454 1,456 1,457 40 Loan loss reserve 2,561 2,551 2,554 2,570 2,627 2,629 2,642 2,661 2,679 41 Other loans, net 111,149 111,125 110,117 109,603 111,966 111,372 112,320 110,922 111,874 42 Lease financing receivables 2,040 2,038 2,041 2,042 2,027 2,029 2,046 2,047 2,048 43 All other assets5 66,439 61,446 63,332 63,690 64,354 65,971 63,505 62,775 62,678 44 Total assets 235,704 236,396 235,232 229,860 235,661 238,855 235,775 232,553 238,507 Deposits 45 Demand deposits 47,795 50,473 46,945 44,968 45,951 51,064 47,842 44,301 50,404 46 Mutual savings banks 339 381 446 291 312 341 358 232 281 47 Individuals, partnerships, and corporations 31,825 34,181 31,784 30,340 31,986 33,197 31,796 30,532 34,014 48 States and political subdivisions 908 666 786 617 734 592 626 606 556 49 U.S. government 722 310 632 461 169 549 573 411 375 50 Commercial banks in the United States 4,842 4,320 4,407 4,628 4,048 4,978 4,162 4,355 5,103 51 Banks in foreign countries 4,490 5,389 4,515 4,518 5,043 4,678 5,628 4,626 5,135 52 Foreign governments and official institutions 770 742 603 586 522 571 686 725 1,055 53 Certified and officers' checks 3,900 4,484 3,773 3,526 3,137 6,157 4,013 2,814 3,886 54 Time and savings deposits 72,504 73,103 73,378 73,394 73,938 73,844 73,805 74,919 75,133 55 Savings 28,646 27,570 27,028 26,816 27,044 27,222 27,361 27,422 27,416 56 Individuals and nonprofit organizations 25,913 24,636 24,066 23,867 24,084 24,148 24,186 24,235 24,334 57 Partnerships and corporations operated for profit .. 2,456 2,671 2,725 2,732 2,735 2,831 2,918 2,949 2,869 58 Domestic governmental units 236 230 202 183 186 205 210 188 175 59 All other 40 33 34 33 39 38 46 50 38 60 Time 43,859 45,534 46,350 46,578 46,893 46,622 46,444 47,497 47,717 61 Individuals, partnerships, and corporations 38,146 39,772 40,621 40,826 41,292 41,101 40,680 41,679 41,814 62 States and political subdivisions 1,939 1,996 2,029 2,105 2,030 2,047 2,101 2,101 2,037 63 U.S. government 22 21 21 18 15 15 19 18 18 64 Commercial banks in the United States 2,457 2,415 2,386 2,362 2,278 2,209 2,362 2,439 2,626 65 Foreign governments, official institutions, and banks 1,295 1,330 1,294 1,268 1,278 1,251 1,281 1,260 1,221 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 230 1,225 725 1,090 300 2,040 350 400 300 67 Treasury tax-and-loan notes 4,036 3,797 4,034 4,035 3,674 603 359 336 447 68 All other liabilities for borrowed money6 56,319 52,576 54,457 51,414 55,783 54,475 56,099 55,027 56,899 69 Other liabilities and subordinated notes and debentures . 34,858 35,197 35,734 35,060 36,087 36,737 37,218 37,579 35,215 70 Total liabilities 215,743 216,372 215,274 209,961 215,732 218,764 215,674 212,562 218,398 71 Residual (total assets minus total liabilities)7 19,961 20,024 19,958 19,900 19,929 20,092 20,102 19,991 20,109 1. Excludes trading account securities. 6. Includes federal funds purchased and securities sold under agreements to 2. Not available due to confidentiality. repurchase. 3. Includes securities purchased under agreements to resell. 7. Not a measure of equity capital for use in capital adequacy analysis or for 4. Other than financial institutions and brokers and dealers. other analytic uses. 5. Includes trading account securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1983 AAccccoouunntt Oct. 5 Oct. 12 Oct. 19 Oct. 26 Nov. IP Nov. 9" Nov. 16^ Nov. 23p Nov. 30" BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 655,142 653,353 654,638 656,615 662,042 662,761 664,344 663,228 665,793 2 Total loans (gross) adjusted1 515,836 516,394 515,331 516,727 521,653 522,079 522,285 521,376 523,459 3 Demand deposits adjusted2 107,084 109,372 105,088 104,496 107,494 108,540 106,606 103,187 109,661 4 Time deposits in accounts of $100,000 or more 140,509 139,984 139,949 140,253 140,565 140,750 140,083 142,768 142,441 5 Negotiable CDs 89,981 88,863 87,938 87,969 88,425 88,323 87,309 89,409 89,374 6 Other time deposits 50,529 51,120 52,011 52,284 52,140 52,427 52,774 53,359 53,067 7 Loans sold outright to affiliates3 2,506 2,553 2,530 2,576 2,594 2,536 2,559 2,490 2,385 8 Commercial and industrial 1,915 1,982 1,968 1,981 2,001 1,945 1,963 1,904 1,839 9 Other 591 571 562 596 592 591 596 586 546 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 609,260 607,510 608,540 610,428 615,741 616,285 617,903 616,699 619,161 11 Total loans (gross) adjusted1 482,646 483,302 482,063 483,433 488,279 488,577 488,768 487,847 489,808 12 Demand deposits adjusted2 98,739 101,375 97,219 96,658 99,558 100,505 98,781 95,361 101,366 13 Time deposits in accounts of $100,000 or more 131,911 131,366 131,238 131,454 131,721 131,806 131,154 133,727 133,656 14 Negotiable CDs 85,198 84,074 83,088 83,036 83,426 83,281 82,298 84,390 84,590 15 Other time deposits 46,712 47,292 48,150 48,418 48,295 48,526 48,856 49,337 49,066 16 Loans sold outright to affiliates3 2,458 2,453 2,430 2,526 2,544 2,486 2,510 2,434 2,331 17 Commercial and industrial 1,872 1,931 1,917 1,944 1,966 1,909 1,928 1,869 1,806 18 Other 586 522 513 582 578 578 582 565 525 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted1'4 142,846 142,822 142,225 142,629 145,350 144,707 146,336 145,592 145,534 20 Total loans (gross) adjusted1 118,332 118,574 117,802 118,189 120,992 119,799 120,971 119,910 119,928 21 Demand deposits adjusted2 26,573 28,680 25,807 26,197 27,732 26,414 27,233 26,047 28,360 22 Time deposits in accounts of $100,000 or more 30,702 30,931 30,977 30,881 30,978 30,574 30,573 31,608 31,546 23 Negotiable CDs 19,478 19,182 18,781 18,499 18,528 18,143 18,015 19,118 18,990 24 Other time deposits 11,224 11,750 12,196 12,382 12,450 12,431 12,558 12,490 12,556 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

A22 Domestic Nonfinancial Statistics • December 1983 1.30 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Oct. 5 Oct. 12 Oct. 19 Oct. 26 Nov. 2P Nov. 9p Nov. 16? Nov. 23p Nov. 3OP 1 Cash and due from depository institutions. 6,333 6,710 6,060 5,951 5,998 6,066 6,230 6,552 6,605 2 Total loans and securities 43,262 43,103 42,233 42,530 42,029 43,487 43,173 43,878 43,668 3 U.S. Treasury securities 4,083 4,331 4,337 4,313 4,711 4,664 4,755 4,675 4,594 4 Other securities 939 942 956 959 972 957 958 951 966 5 Federal funds sold1 1,728 2,019 2,070 2,872 2,496 4,291 3,669 3,874 3,457 6 To commercial banks in United States .. 1,580 1,674 1,989 2,765 2,383 4,159 3,552 3,626 3,282 7 To others 148 344 80 107 113 132 117 248 175 8 Other loans, gross 36,512 35,811 34,870 34,386 33,849 33,573 33,791 34,377 34,651 9 Commercial and industrial 18,821 18,789 18,417 18,880 1188,,553366 1188,,774422 1188,,996600 1188,,991133 1199,,331133 10 Bankers acceptances and commercial paper 3,016 2,998 2,874 2,938 2,855 2,839 2,899 3,064 3,069 11 All other 15,804 15,790 15,543 15,943 15,681 15,903 16,061 15,848 16,244 12 U.S. addressees 13,959 13,969 13,688 13,922 13,792 14,047 14,216 13,926 14,417 13 Non-U.S. addressees 1,845 1,821 1,855 2,020 1,889 1,857 1,846 1,923 1,827 14 To financial institutions 13,591 12,841 12,334 11,555 11,053 10,672 10,607 11,232 10,596 15 Commercial banks in United States... 11,177 10,380 9,846 9,029 8,628 8,474 8,473 8,974 8,255 16 Banks in foreign countries 1,764 1,852 1,853 1,917 1,800 1,620 1,542 1,600 1,660 17 Nonbank financial institutions 650 608 634 609 626 578 591 657 681 18 For purchasing and carrying securities .. 417 581 549 487 683 590 626 480 948 19 All other 3,683 3,600 3,570 3,463 3,577 3,569 3,597 3,753 33,,779933 20 Other assets (claims on nonrelated parties) 11,544 11,789 11,976 11,822 11,905 11,926 12,130 12,359 12,642 21 Net due from related institutions 14,294 13,115 13,609 11,858 12,552 12,558 12,042 12,449 11,769 22 Total assets 75,433 74,718 73,878 72,162 72,484 74,037 73,576 75,238 74,684 23 Deposits or credit balances2 19,707 19,708 19,402 19,249 19,380 19,422 19,257 20,387 20,662 24 Credit balances 181 185 194 201 202 154 157 151 143 25 Demand deposits 1,752 2,042 1,958 1,754 1,775 1,799 1,768 11,,887744 11,,779922 26 Individuals, partnerships, and corporations 908 886 836 820 873 853 786 855 882 27 Other 844 1,156 1,122 934 901 946 982 1,019 910 28 Total time and savings 17,775 17,481 17,250 17,294 17,404 17,468 17,331 1188,,336622 1188,,772288 29 Individuals, partnerships, and corporations 15,091 14,718 14,554 14,616 14,776 14,786 14,584 15,655 15,999 30 Other 2,684 2,763 2,695 2,677 2,627 2,682 2,747 2,707 2,729 31 Borrowings3 37,843 37,556 36,572 33,993 34,666 34,638 34,265 34,025 33,365 32 Federal funds purchased4 12,260 13,090 12,171 10,611 11,102 10,685 1111,,119900 1100,,006633 1100,,115577 33 From commercial banks in United States 10,425 11,105 9,910 8,507 9,152 8,474 9,065 8,035 8,530 34 From others 1,835 1,984 2,261 2,104 1,951 2,211 2,126 2,028 1,628 35 Other liabilities for borrowed money.... 25,583 24,466 24,401 23,382 23,564 23,953 23,074 23,962 23,208 36 To commercial banks in United States 21,767 20,815 20,628 19,705 19,647 20,275 19,466 19,913 19,390 37 To others 3,816 3,651 3,772 3,677 3,917 3,678 3,608 4,049 3,817 38 Other liabilities to nonrelated parties 12,297 12,401 12,870 12,641 12,799 12,685 13,016 13,404 13,377 39 Net due to related institutions 5,585 5,052 5,034 6,279 5,639 7,292 7,039 7,422 7,280 40 Total liabilities 75,433 74,718 73,878 72,162 72,484 74,037 73,576 75,238 74,684 MEMO 41 Total loans (gross) and securities adjusted* 30,504 31,048 30,397 30,736 31,018 30,854 31,147 31,277 32,130 42 Total loans (gross) adjusted3 25,482 25,775 25,104 25,464 25,334 25,232 25,434 25,651 26,570 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IPC Demand Deposits A23 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1982 1983 11997788 1199779922 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. June 1 All holders—Individuals, partnerships, and corporations 294.6 302.2 315.5 288.9 268.9 271.5 276.7 295.4 283.5 289.5 2 Financial business 27.8 27.1 29.8 28.0 27.8 28.6 31.9 35.5 34.0 35.1 3 Nonfinancial business 152.7 157.7 162.8' 154.8 138.7 141.4 142.9 151.7 144.4 147.7 4 Consumer 97.4 99.2 102.4 86.6 84.6 83.7 83.3 88.1 85.5 86.9 5 Foreign 2.7 3.1 3.3 2.9 3.1 2.9 2.9 3.0 3.2 3.0 6 Other 14.1 15.1 17.2 16.7 14.6 15.0 15.7 17.1 16.4 16.8 Weekly reporting banks 1982 1983 11997788 1199779944 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. June 7 All holders—Individuals, partnerships, and corporations 147.0 139.3 147.4 137.5 126.8 127.9 132.1 144.0 140.7 141.9 8 Financial business 19.8 20.1 21.8 21.0 20.2 20.2 23.4 26.7 25.2 26.3 9 Nonfinancial business 79.0 74.1 78.3 75.2 67.1 67.7 68.7 74.2 72.7 73.1 10 Consumer 38.2 34.3 35.6 30.4 29.2 29.7 29.6 31.9 31.2 30.4 11 Foreign 2.5 3.0 3.1 2.8 2.9 2.8 2.7 2.9 3.0 2.9 12 Other 7.5 7.8 8.6 8.0 7.3 7.5 7.7 8.4 8.6 9.3 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

A24 Domestic Nonfinancial Statistics • December 1983 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1983 IInnssttrruummeenntt 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 . D 1 e 9 c 8 . 2 2 May June July Aug. Sept. Oct. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 83,438 112,803 124,374 165,455 166,208 169,503 170,716 172,199r 174,669 176,775'' 175,924 Financial companies3 Dealer-placed paper* ? Total 1122,,118811 17,359 19,599 29,904 34,067 38,645 3399,,885500 3399,,002277 4400,,774499 3399,,996633'' 38.128 3 Bank-related (not seasonally adjusted) 3,521 2,784 3,561 6,045 2,516 1,954 2,192 22,,336677 22,,335533 22,,330033 2,195 Directly placed paper5 4 Total 51,647 64,757 67,854 81,715 84,183 87,238 8877,,774499 8899,,558855 9900,,662288 9911,,660000 92.819 5 Bank-related (not seasonally adjusted) 12,314 17,598 22,382 26,914 32,034 32,943 33,420 33,613 35,085 34,856 34,622 6 Nonfinancial companies6 19,610 30,687 36,921 53,836 47,958 43,620 43,117 43,587 43,292 45,212 44,977 Bankers dollar acceptances (not seasonally adjusted) 7 Total 33,700 45,321 54,744 69,226 79,543 68,797 70,907 72,710 75,177 74,769 Holder 8 Accepting banks 8,579 9,865 10,564 10,857 10,910 8,223 9,147 9,008 8,498 9,205 9 Own bills 7,653 8,327 8,963 9,743 9,471 7,497 7,998 8,231 7,465 7,986 10 Bills bought 927 1,538 1,601 1,115 1,439 726 1,148 777 11,,003333 11,,221199 Federal Reserve Banks 11 Own account 587 704 776 195 1,480 0 203 0 209 0 n.a. 12 Foreign correspondents 664 1,382 1,791 1,442 949 788 792 670 717 622 13 Others 23,870 33,370 41,614 56,926 66,204 59,786 60,968 63,032 65,961 64,942 Basis 14 Imports into United States 8,574 10,270 11,776 14,765 17,683 13,858 14,324 15,122 15,187 15,353 15 Exports from United States 7,586 9,640 12,712 15,400 16,328 16,074 16,356 16,286 16,476 16,215 16 All other 17,540 25,411 30,257 39,061 45,532 38,865 40,226 41,301 43,514 43,201 1. A change in reporting instructions results in offsetting shifts in the dealer- financing; factoring, finance leasing, and other business lending; insurance placed and directly placed financial company paper in October 1979. underwriting; and other investment activities. 2. Effective Dec. 1,1982, there was a break in the commercial paper series. The 4. Includes all financial company paper sold by dealers in the open market. key changes in the content of the data involved additions to the reporting panel, 5. As reported by financial companies that place their paper directly with the exclusion of broker or dealer placed borrowings under any master note investors. agreements from the reported data, and the reclassification of a large portion of 6. Includes public utilities and firms engaged primarily in such activities as bank-related paper from dealer-placed to directly placed. communications, construction, manufacturing, mining, wholesale and retail trade, 3. Institutions engaged primarily in activities such as, but not limited to, transportation, and services. commercial, savings, and mortgage banking; sales, personal, and mortgage 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Rate Average Month rate 1981—Nov. 24 16.00 1982—Aug. 23 13.50 1982—Jan 15.75 1983—Jan Dec. 1 15.75 Oct. 7 13.00 Feb 16.56 Feb 14 12.00 Mar 16.50 Nov. 22 11.50 Apr 16.50 Apr May 16.50 May 1982—Feb. 18 17.00 June 16.50 June 23 16.50 July 16.26 July July 20 16.00 Aug 14.39 Aug Aug. 2 2 9 1 1 5 5 . . 5 0 0 0 1983—Jan. 11 11.00 S O e c p t t 1 12 3 . . 5 5 2 0 S O e c p t t 1 18 6 1 14 4 . . 0 5 0 0 A Fe u b g . . 2 8 8 1101..0500 N De o c v 1 1 1 1 . . 8 5 5 0 Nov Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Business Lending A25 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 1983 Size of loan (in thousands of dollars) All Item sizes 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 36,819,868 949,559 668,400 1,094,777 2,138,132 986,449 30,982,550 2 Number of loans 171,400 115,850 20,397 17,109 12,274 1,478 4,291 3 Weighted-average maturity (months) 1.2 3.7 4.3 3.4 4.0 3.9 ..88 4 With fixed rates .7 3.3 4.2 2.6 3.5 2.8 ..44 5 With floating rates 2.1 4.6 4.5 4.7 4.3 4.5 1.5 6 Weighted-average interest rate (percent per annum).. 11.09 13.99 13.56 12.73 11.89 11.81 10.81 7 Interquartile range1 10.52-11.07 13.10-14.93 12.25-14.50 11.85-13.65 11.02-12.53 11.02-12.46 10.52-11.01 8 With fixed rates 11.01 14.41 13.98 12.97 12.08 11.90 10.76 9 With floating rates 11.23 13.28 12.87 12.50 11.80 11.77 10.92 Percentage of amount of loans 10 With floating rate 36.2 37.6 38.3 50.4 66.0 71.7 32.4 11 Made under commitment 64.3 32.9 33.2 45.9 51.8 65.7 67.4 12 With no stated maturity 11.3 11.2 15.7 24.7 25.2 36.4 8.9 13 With one-day maturity 38.0 .1 .1 .2 .6 .9 45.0 1-99 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 14 Amount of loans (thousands of dollars) 4,491,493 531,982 386,952 151,196 3,421,363 15 Number of loans 26,332 23,262 2,176 228 667 16 Weighted-average maturity (months) 55.3 48.8 68.5 40.0 55.5 17 With fixed rates 61.8 54.2 112.8 53.1 52.6 18 With floating rates 53.7 38.3 46.5 37.7 55.9 19 Weighted-average interest rate (percent per annum) .. 11.83 14.53 12.06 11.66 11.39 20 Interquartile range1 10.92-12.40 12.68-15.60 11.02-12.96 11.02-12.13 10.92-11.73 21 With fixed rates 13.00 15.54 12.05 11.77 11.17 22 With floating rates 11.53 12.59 12.07 11.64 11.42 Percentage of amount of loans 23 With floating rate 79.8 34.1 66.8 85.4 88.1 24 Made under commitment 66.0 17.1 43.8 72.3 75.8 1-24 25-49 50-99 500 and over CONSTRUCTION AND LAND DEVELOPMENT LOANS 25 Amount of loans (thousands of dollars) 1,340,014 166,917 85,626 47,270 481,527 558,674 26 Number of loans 23,995 18,146 2,401 726 2,485 237 27 Weighted-average maturity (months) 15.5 5.4 10.4 11.5 19.7 17.0 28 With fixed rates 14.1 3.2 10.9 9.4 22.9 4.6 29 With floating rates 16.5 10.1 8.1 12.3 14.0 18.4 30 Weighted-average interest rate (percent per annum) .. 12.99 14.91 13.47 12.70 12.97 12.40 31 Interquartile range1 12.13-13.81 13.24-15.51 13.50-13.81 12.13-13.24 11.07-14.37 11.62-13.24 32 With fixed rates 14.18 15.57 13.66 13.10 14.08 12.61 33 With floating rates 12.33 13.50 12.81 12.56 11.93 12.37 Percentage of amount of loans 34 With floating rate 64.1 32.1 22.0 73.3 51.7 90.0 35 Secured by real estate 80.8 81.8 97.5 89.5 96.3 63.8 36 Made under commitment 75.4 80.1 60.9 74.6 83.5 69.3 37 With no stated maturity 10.1 1.0 2.7 7.6 24.8 1.4 38 With one-day maturity .4 .1 .2 .8 .3 .5 Type of construction 39 1- to 4-family 23.3 65.5 17.0 36.2 12.1 20.2 40 Multifamily 10.5 7.2 4.9 16.6 8.2 13.9 41 Nonresidential 66.2 27.3 78.1 47.2 79.7 65.9 All sizes 1-9 10-24 25-49 50-99 100-249 250 and over LOANS TO FARMERS 42 Amount of loans (thousands of dollars) 942,246 157,098 153,852 152,314 129,834 89,163 259,986 43 Number of loans 62,461 44,542 10,599 4,307 1,987 642 383 44 Weighted-average maturity (months) 7.1 6.7 6.1 7.0 8.0 6.4 8.0 45 Weighted-average interest rate (percent per annum) .. 13.72 14.30 14.03 14.15 13.79 13.60 12.94 46 Interquartile range1 12.87-14.49 13.42-14.85 13.42-14.57 13.50-14.63 13.00-14.49 12.43-14.97 11.84-14.49 By purpose of loan 47 Feeder livestock 13.05 14.35 14.31 14.07 13.91 11.57 12.03 48 Other livestock 14.14 16.89 13.90 14.70 (2) 13.33 (2) 49 Other current operating expenses 13.93 14.01 14.03 14.07 13.99 13.81 13.74 50 Farm machinery and equipment 14.26 14.55 13.91 14.40 (2) (2) (2) 51 Other 13.17 14.21 13.88 13.92 13.05 13.95 11.67 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

A26 DomesticN onfinancial Statistics • December 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. 1983 1983, week ending IInnssttrruummeenntt 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 MONEY MARKET RATES 1 Federal funds1-2 1133..3366 16.38 12.26 9.56 9.45 9.48 9.34 9.40 9.36 9.42 9.26 9.27 Commercial paper3,4 2 1-month 12.76 15.69 11.83 9.41 9.19 9.03 9.10 9.06 9.16 9.14 9.06 9.06 3 3-month 12.66 15.32 11.89 9.54 9.24 8.99 9.10 9.04 9.15 9.13 9.08 9.10 4 6-month 12.29 14.76 11.89 9.68 9.28 8.98 9.09 9.02 9.15 9.12 9.09 9.11 Finance paper, directly placed3 4 5 1-month 12.44 15.30 11.64 9.35 9.15 8.99 9.06 9.06 9.13 9.08 9.02 9.05 6 3-month 11.49 14.08 11.23 9.41 9.09 8.82 8.87 8.77 8.87 8.89 8.92 8.93 7 6-month 11.28 13.73 11.20 9.42 9.09 8.79 8.84 8.73 8.81 8.87 8.90 8.92 Bankers acceptances4-5 8 3-month 12.72 15.32 11.89 9.59 9.23 9.01 9.16 9.09 9.18 9.20 9.13 9.17 9 6-month 12.25 14.66 11.83 9.71 9.26 8.97 9.13 9.08 9.13 9.19 9.10 9.16 Certificates of deposit, secondary market6 10 1-month 12.91 15.91 12.04 9.52 9.28 9.11 9.22 9.18 9.25 9.25 9.20 9.22 11 3-month 13.07 15.91 12.27 9.77 9.39 9.18 9.36 9.29 9.41 9.41 9.34 9.34 12 6-month 12.99 15.77 12.57 10.17 9.64 9.31 9.51 9.39 9.56 9.56 9.51 9.53 13 Eurodollar deposits, 3-month2 14.00 16.79 13.12 10.27 9.82 9.54 9.79 9.63 9.84 9.75 9.84 9.78 U.S. Treasury bills4 Secondary market7 14 3-month 11.43 14.03 10.61 9.34 9.00 8.64 8.76 8.58 8.77 8.81 8.79 8.88 15 6-month 11.37 13.80 11.07 9.51 9.15 8.83 8.93 8.79 8.93 8.97 8.94 9.05 16 1-year 10.89 13.14 11.07 9.60 9.27 8.98 9.08 9.05 9.09 9.08 9.06 9.15 Auction average8 17 3-month 11.506 14.029 10.686 9.39 9.05 8.71 8.71 8.41 8.83 8.78 8.81 8.90 18 6-month 11.374 13.776 11.084 9.53 9.19 8.90 8.89 8.68 9.02 8.91 8.96 9.05 1199 1100..774488 1133..115599 1111..009999 99..7777 99..6644 99..1133 99..0033 99..0033 99..0099 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 12.05 14.78 12.27 10.53 10.16 9.81 9.94 9.92 9.95 9.92 9.90 10.01 21 2-year 11.77 14.56 12.80 11.07 10.79 10.57 10.66 10.65 10.72 10.66 10.63 10.69 V 2-w-year11 10.90 10.80 10.85 23 3-year 11.55 14.44 12.92 11.30 11.07 10.87 10.96 11.01 11.04 10.96 10.88 10.98 24 5-year 11.48 14.24 13.01 11.63 11.43 11.28 11.41 11.42 11.50 11.42 11.35 11.38 25 7-year 11.43 14.06 13.06 11.77 11.61 11.47 11.61 11.64 11.70 11.62 11.52 11.59 26 10-year 11.46 13.91 13.00 11.85 11.65 11.54 11.69 11.75 11.80 11.70 11.59 11.64 27 20-year 11.39 13.72 12.92 11.96 11.82 11.77 11.92 11.98 12.01 11.93 11.83 11.85 28 30-year 11.30 13.44 12.76 11.82 11.63 11.58 11.75 11.81 11.84 11.76 11.66 11.69 Composite12 29 Over 10 years (long-term) 10.81 12.87 12.23 11.42 11.26 11.21 11.32 11.39 11.44 11.33 11.23 11.26 State and local notes and bonds Moody's series13 30 Aaa 7.85 10.43 10.88 9.04 8.97 8.93 9.01 8.90 9.00 9.00 9.05 9.30 31 Baa 9.01 11.76 12.48 10.25 10.10 10.04 10.01 10.00 10.05 10.00 10.00 10.25 32 Bond Buyer series14 8.59 11.33 11.66 9.72 9.58 9.66 9.75 9.79 9.75 9.70 9.74 9.82 Corporate bonds Seasoned issues15 33 All industries 12.75 15.06 14.94 13.01 12.91 12.79 12.93 12.92 12.96 12.94 12.92 12.92 34 Aaa 11.94 14.17 13.79 12.51 12.37 12.25 12.41 12.42 12.47 12.42 12.36 12.39 35 Aa 12.50 14.75 14.41 12.72 12.62 12.49 12.61 12.63 12.64 12.60 12.60 12.60 36 A 12.89 15.29 15.43 13.17 13.11 12.97 13.09 13.05 13.11 13.09 13.11 13.06 37 Baa 13.67 16.04 16.11 13.64 13.55 13.46 13.61 13.58 13.63 13.64 13.59 13.63 Aaa utility bonds16 38 12.74 15.56 14.41 12.25 12.53 12.43 12.64 12.65 12.62 39 Recently offered issues 12.70 15.56 14.45 12.75 12.50 12.42 12.65 12.77 12.63 12.62 12.58 12.65 MEMO: Dividend/price ratio17 40 Preferred stocks 10.60 12.36 12.53 11.07 11.06 10.97 11.12 10.99 11.05 11.21 11.14 11.23 41 Common stocks 5.26 5.20 5.81 4.35 4.24 4.25 4.31 4.33 4.35 4.31 4.29 4.27 1. Weekly and monthly figures are averages of all calendar days, where the 10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields rate for a weekend or holiday is taken to be the rate prevailing on the preceding are read from a yield curve at fixed maturities. Based on only recently issued, business day. The daily rate is the average of the rates on a given day weighted by actively traded securities. the volume of transactions at these rates. 11. Each biweekly figure is the average of five business days ending on the 2. Weekly figures are statement week averages—that is, averages for the Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate week ending Wednesday. determined the maximum interest rate payable in the following two-week period 3. Unweighted average of offering rates quoted by at least five dealers (in the on 2-'/2-year small saver certificates. (See table 1.16.) case of commercial paper), or finance companies (in the case of finance paper). 12. Averages of yields (to maturity or call) for all outstanding bonds neither due Before November 1979, maturities for data shown are 30-59 days, 90—119 days, nor callable in less than 10 years, including several very low yielding "flower" and 120-179 days for commercial paper; and 30-59 days, 90—119 days, and 150— bonds. 179 days for finance paper. 13. General obligations only, based on figures for Thursday, from Moody's 4. Yields are quoted on a bank-discount basis, rather than an investment yield Investors Service. basis (which would give a higher figure). 14. General obligations only, with 20 years to maturity, issued by 20 state and 5. Dealer closing offered rates for top-rated banks. Most representative rate local governmental units of mixed quality. Based on figures for Thursday. (which may be, but need not be, the average of the rates quoted by the dealers). 15. Daily figures from Moody's Investors Service. Based on yields to maturity 6. Unweighted average of offered rates quoted by at least five dealers early in on selected long-term bonds. the day. 16. Compilation of the Federal Reserve. Issues included are long-term (20 7. Unweighted average of closing bid rates quoted by at least five dealers. years or more). New-issue yields are based on quotations on date of offering; 8. Rates are recorded in the week in which bills are issued. Beginning with the those on recently offered issues (included only for first 4 weeks after termination Treasury bill auction held on Apr. 18, 1983, bidders were required to state the of underwriter price restrictions), on Friday close-of-business quotations. percentage yield (on a bank discount basis) that they would accept to two decimal 17. Standard and Poor's corporate series. Preferred stock ratio based on a places. Thus, average issuing rates in bill auctions will be reported using two sample of ten issues: four public utilities, four industrials, one financial, and one rather than three decimal places. transportation. Common stock ratios on the 500 stocks in the price index. 9. Yields are based on closing bid prices quoted by at least five dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets All 1.36 STOCK MARKET Selected Statistics 1983 IInnddiiccaattoorr 11998800 11998811 11998822 Mar. Apr. May June July Aug. Sept. Oct. Nov. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 68.06 74.02 68.93 87.50 90.61 94.61 96.43 96.74 93.96 96.70 96.78 95.36 2 Industrial 78.64 85.44 78.18 100.61 104.46 109.43 112.52 113.21 109.50 112.76 112.87 110.77 3 Transportation 60.52 72.61 60.41 83.28 85.26 89.07 92.22 92.91 88.06 94.56 95.41 97.68 4 Utility 37.35 38.90 39.75 45.89 46.22 47.62 46.76 46.61 46.94 48.16 48.73 48.50 5 Finance 64.28 73.52 71.99 93.22 99.07 102.45 101.22 99.60 95.76 97.00 94.79 94.48 6 Standard & Poor's Corporation (1941-43 = 10)' ... 118.71 128.05 119.71 151.88 157.71 164.10 166.39 166.96 162.42 167.16 167.65 165.23 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 150.47 171.79 141.31 191.88 202.51 223.97 237.51 244.03 230.10 234.36 223.76 218.42 Volume of trading {thousands of shares) 8 New York Stock Exchange 44,867 46,967 64,617 82,694 89,627 93,016 89,729 79,508 74,191 82,866 85,445 86,405 9 American Stock Exchange 6,377 5,346 5,283 7,354 8,576 12,260 10,874 8,199 6,329 6,629 7,751 6,160 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers3 14,721 14,411 13,325 14,483 15,590 16,713 18,292 19,218 19,437 20,124 21,030 f[ 11 Margin stock4 14,500 14,150 12,980 14,170 15,260 16,370 17,930 18,870 19,090 19,760 20,690 12 Convertible bonds 219 259 344 312 329 342 361 347 346 363 339 n.a. 13 Subscription issues 2 2 1 1 1 1 1 1 1 1 1 Free credit balances at brokers5 14 Margin-account 2,105 3,515 5,735 6,370 6,090 6,090 6,150 6,275 6,350 6,550 6,630 15 Cash-account 6,070 7,150 8,390 7,965 7,970 8,310 8,590 8,145 8,035 7,930 7,695 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)6 17 Under 40 14.0 37.0 21.0 17.0 14.0 14.0 13.0 21.0 23.0 24.0'' 35.0 18 40-49 30.0 24.0 24.0 21.0 19.0 19.0 21.0 28.0 28.0 27.0 24.0 19 50-59 25.0 17.0 24.0 25.0 28.0 30.0 29.0 21.0 20.0 21.0 17.0 n a. 2 2 1 0 7 6 0 0 - - 7 6 9 9 1 9 4 . . 0 0 1 6 0 . . 0 0 1 9 4 . . 0 0 1 1 0 8 . . 0 0 1 19 0 . . 0 0 1 1 1 6 . . 0 0 1 1 2 6 . . 0 0 1 9 4 . . 0 0 1 9 3 . . 0 0 1 9 2. . ( 0 K 1 7 0 . . 0 0 1I 22 80 or more 8.0 6.0 8.0 9.0 9.0 9.0 9.0 7.0 7.0 7.0 7.0 T Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)7 21,690 25,870 35,598 43,472 44,999 45,465 47,100 50,580 50,267 51,211 54,029 I Distribution by equity status (percent) 1 24 Net credit status 47.8 58.0 62.0 62.0 64.0 62.0 62.0 62.0 62.0 64.0 63.0 n.a. 25 De 6 b 0 t p s e ta r t c u e s n , t e o q r u i m ty o r o e f 44.4 31.0 29.0 28.0 30.0 32.0 33.0 31.0 31.0 29.0 28.0 11 26 Less than 60 percent 7.7 11.0 9.0 9.0 6.0 6.0 5.0 6.0 7.0 7.0 9.0 T Margin requirements (percent of market value and effective date)8 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 6. 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 7. 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. Beginning July 5, 1983, the American Stock Exchange rebased its index other collateral in the customer's margin account or deposits of cash (usually sales effectively cutting previous readings in half. proceeds) occur. 3. Margin credit includes all credit extended to purchase or carry stocks or 8. Regulations G, T, and U of the Federal Reserve Board of Governors, related equity instruments and secured at least in part by stock. Credit extended is prescribed in accordance with the Securities Exchange Act of 1934, limit the end-of-month data for member firms of the New York Stock Exhange. amount of credit to purchase and carry margin stocks that may be extended on Besides assigning a current loan value to margin stock generally, Regulations T securities as collateral by prescribing a maximum loan value, which is a specified and U permit special loan values for convertible bonds and stock acquired through percentage of the market value of the collateral at the time the credit is extended. exercise of subscription rights. Margin requirements are the difference between the market value (100 percent) 4. A distribution of this total by equity class is shown on lines 17-22. and the maximum loan value. The term "margin stocks" is defined in the 5. Free credit balances are in accounts with no unfulfilled commitments to the corresponding regulation. brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • December 1983 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1982 1983 AAccccoouunntt 11998800 11998811 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.P Savings and loan associations 1 Assets 630,712 664,167 706,045 714,676 722,352 723,616 728,487 728,156 731,275 739,575 745,040 746,514 755,830 2 Mortgages 503,192 518,547 482,234 481,470 481,090 475,688 476,248 472,124 473,134 477,919 481,691 480,813 484,028 3 Cash and investment securities1 57,928 63,123 84,767 90,662 94,080 96,649 99,226 103,468 101,284 101,754 98,996 99,419 101,414 4 Other 69,592 82,497 139,044 142,544 147,182 151,279 153,013 152,564 156,857 159,902 164,353 166,282 170,388 5 Liabilities and net worth 630,712 664,167 706,045 714,676 772,352 723,616 728,487 728,156 731,275 739,575 745,040 746,514 755,830 6 Savings capital 511,636 525,061 566,189 582,918 591,913 597,112 601,171 599,673 603,178 608,683 613,087 615,691 620,655 7 Borrowed money 64,586 88,782 97,979 88,925 86,544 84,884 83,640 82,722 84,328 84,682 84,345 85,926 87,692 8 FHLBB 47,045 62,794 63,861 60,415 58,841 56,859 55,933 54,392 54,234 53,579 52,303 52,179 52,663 9 Other 17,541 25,988 34,118 28,510 27,703 28,025 27,707 28,330 30,094 31,103 32,042 33,747 35,029 10 Loans in process 8,767 6,385 9,934 10,453 11,039 12,245 13,462 14,528 15,972 17,063 17,931 18,773 19,165 11 Other 12,394 15,544 15,720 16,658 17,524 14,767 16,210 18,323 15,548 17,931 19,078 15,978 18,029 12 Net worth2 33,329 28,395 26,157 26,175 26,371 26,853 27,466 27,438 28,221 28,279 28,530 28,919 29,454 13 MEMO: Mortgage loan commitments outstanding3 16,102 15,225 18,054 19,453 22,051 24,885 27,920 30,089 30,630 31,667 32,342 32,410 32,645 Mutual savings banks4 14 Assets 171,564 175,728 174,197 174,726 176,378 178,814 178,826 180,071 181,975 182,822 183,612 186,041 Loans 15 Mortgage 99,865 99,997 94,091 93,944 93,607 93,822 93,311 93,587 94,000 93,998 93,941 94,831 16 Other 11,733 14,753 16,957 17,420 18,211 17,837 18,353 17,893 17,438 18,134 1177,,992299 17,830 Securities 17 U.S. government5 8,949 9,810 9,743 10,248 11,081 12,187 12,364 13,110 13,572 13,931 14,484 14,794 18 State and local government 2,390 2,288 2,470 2,446 2,440 2,403 2,311 2,260 2,257 2,248 2,247 2,244 19 Corporate and other6 39,282 37,791 36,161 36,430 36,905 37,827 38,342 39,142 40,206 40,667 41,045 41,889 20 Cash 4,334 5,442 6,919 6,275 6,104 6,548 6,039 5,960 6,224 5,322 5,168 5,560 21 Other assets 5,011 5,649 7,855 7,963 8,031 8,189 8,107 8,118 8,276 8,522 8,799 8,893 n a. 22 Liabilities 171,564 175,728 174,197 174,726 176,378 178,814 178,826 180,071 181,975 182,822 183,612 186,041 23 Deposits 154,805 155,110 155,196 157,113 159,162 161,489 161,262 162,287 163,990 164,848 165,087 165,887 24 Regular7 151,416 153,003 152,777 154,876 156,915 159,088 158,760 159,840 161,573 162,271 162,600 162,998 25 Ordinary savings 53,971 49,425 46,862 41,850 41,165 41,183 40,379 40,467 40,451 39,983 39,360 39,768 26 Time 97,445 103,578 96,369 90,184 87,377 86,276 84,593 83,506 84,705 85,445 86,446 85,603 27 Other 2,086 2,108 2,419 2,237 2,247 2,401 2,502 2,447 2,417 2,577 2,487 2,889 28 Other liabilities 6,695 10,632 8,336 7,722 7,542 7,395 7,631 3,114 7,754 7,596 7,884 9,475 29 General reserve accounts 11,368 9,986 9,235 9,196 9,197 9,342 9,352 9,377 9,575 9,684 99,,993322 99,,887799 30 MEMO: Mortgage loan commitments outstanding8 1,476 1,293 1,285 1,253 1,295 1,639 1,860 1,860 1,884 1,969 2,046 2,023 Life insurance companies 31 Assets 479,210 525,803 584,311 589,490 595,959 602,770 609,298 591,375 628,224 633,569 638,826 644,295 Securities 32 Government 21,378 25,209 34,558 35,567 36,946 38,469 39,210 42,522 43,348 44,751 45,700 46,109 33 United States9 5,345 8,167 16,072 16,731 17,877 19,213 19,213 20,705 21,141 22,228 22,817 23,134 34 State and local 6,701 7,151 8,094 8,225 8,333 8,368 8,524 10,053 10,355 10,504 10,695 10,739 35 Foreign10 9,332 9,891 10,392 10,611 10,736 10,888 10,940 11,764 11,852 12,019 12,188 12,236 36 Business 238,113 255,769 283,799 290,178 293,427 296,223 300,558 309,254 313,510 316,934 318,584 321,568 n.a. 37 Bonds 190,747 208,098 228,220 233,380 235,376 236,420 238,689 245,833 248,248 252,397 253,977 256,131 38 Stocks 47,366 47,670 55,579 56,798 58,051 59,803 61,869 63,421 65,262 64,537 64,607 65,437 39 Mortgages 131,030 137,747 141,919 142,277 142,683 143,031 143,011 143,758 144,725 145,086 146,400 147,356 40 Real estate 15,063 18,278 21,019 20,922 21,014 21,175 21,352 21,344 21,629 21,690 21,749 21,903 41 Policy loans 41,411 48,706 53,114 53,239 53,383 53,560 53,715 53,804 53,914 53,972 54,063 54,165 42 Other assets 31,702 40,094 49,902 47,307 48,506 50,322 51,452 49,889 51,098 51,136 52,330 53,194 Credit unions" 43 Total assets/liabilities and capital 71,709 77,682 69,572 69,831' 71,412 73,876 74,896 76,851 78,467 79,084 79,595 80,678 44 Federal 39,801 42,382 45,483 45,609' 46,673 48,350 48,986 50,275 51,430 51,844 52,224 53,033 45 State 31,908 35,300 24,089 24,222' 24,739 22,526 25,910 26,576 27,037 27,240 27,371 27,645 46 Loans outstanding 47,774 50,448 43,223 42,946' 42,823 43,067 43,530 44,055 45,001 45,616 46,880 47,744 n a. 47 Federal 25,627 27,458 27,941 27,740' 27,644 27,823 28,133 28,512 29,175 29,577 30,384 30,912 48 State 22,147 22,990 15,282 15,206' 15,179 15,244 15,397 15,543 15,826 16,039 16,496 16,832 49 Savings 64,399 68,871 62,977 63,318' 64,780 67,494 68,663 70,221 71,712 72,438 72,550 73,697 50 Federal (shares) 36,348 37,574 41,341 41,556' 42,533 44,336 45,165 46,192 47,145 47,713 47,874 48,709 51 State (shares and deposits) 28,051 31,297 21,636 21,762' 65,605 23,158 23,498 24,029 24,567 24,725 24,676 24,988 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 1982 1983 1983 11998811 11998822 11998833 HI H2 HI Aug. Sept. Oct. U.S. budget 1 Receipts1 599,272 617,766 600,562 322,478 286,338 306,331 49,683 63,556 45,156 2 Outlays1'2 657,204 728,375 795,917 348,678 390,846 396,477 67,160 61,610 70,225 3 Surplus, or deficit (-) -57,932 -110,609 -195,355 -26,200 -104,508 -90,146 -17,477 1,946 -25,069 4 Trust funds 6,817 5,456 23,056 -17,690 -6,576 22,680 289 14,006 -1,471 5 Federal funds3 -64,749 -116,065 -218,410 -43,889 -97,934 -112,822 -17,765 -12,060 -23,598 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -20,769 -14,142 -10,404 -7,942 -4,923 -5,418 -1,112 -1,270 1,347 77 OOtthheerr44 -236 -3,190 -1,953 227 -2,267 -528 -155 -1,432 100 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -78,936 -127,940 -207,711 -33,914 -111,699 -96,094 -18,744 -756 -23,623 Source or financing 9 Borrowing from the public 79,329 134,993 212,425 41,728 119,609 102,538 20,522 15,442 11,732 10 Cash and monetary assets (decrease, or increase (-)) -1,878 -11,911 -9,889 -408 -9,057 -9,664 4,328 -19,061 9,525 11 Other6 1,485 4,858 5,176 -7,405 1,146 3,222 -6,106 4,375 2,367 MEMO: 12 Treasury operating balance (level, end of period) 18,670 29,164 37,057 10,999 19,773 100,243 18,469 37,057 27,100 13 Federal Reserve Banks 3,520 10,975 16,557 4,099 5,033 19,442 4,189 16,557 4,841 14 Tax and loan accounts 15,150 18,189 20,500 6,900 14,740 72,037 14,280 20,500 22,259 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold voluntary hospital insurance premiums, previously included in other insurance tranche drawing rights; loans to International Monetary Fund; and other cash and receipts, have been reclassified as offsetting receipts in the health function. monetary assets. 2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was 6. Includes accrued interest payable to the public; allocations of special reclassified from an off-budget agency to an on-budget agency in the Department drawing rights; deposit funds; miscellaneous liability (including checks outstandof Labor. ing) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S. 3. Half-year figures are calculated as a residual (total surplus/deficit less trust currency valuation adjustment; net gain/loss for IMF valuation adjustment; and fund surplus/deficit). profit on the sale of gold. 4. Other off-budget includes Postal Service Fund; Rural Electrification and Telephone Revolving Fund; and Rural Telephone Bank; it also includes petroleum SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. acquisition and transportation and strategic petroleum reserve effective Novem- Government." Treasury Bulletin, and the Budget of the United States Governber 1981. ment, Fiscal Year 1984. NOTES TO TABLE 1.37 10. Issues of foreign governments and their subdivisions and bonds of the 1. Holdings of stock of the Federal Home Loan Banks are included in "other International Bank for Reconstruction and Development. assets." 11. As of June 1982, data include only federal or federally insured state credit 2. Includes net undistributed income, which is accrued by most, but not all, unions serving natural persons. associations. 3. Excludes figures for loans in process, which are shown as a liability. NOTE. Savings and loan associations: Estimates by the FHLBB for all 4. The NAMSB reports that, effective April 1979, balance sheet data are not associations in the United States. Data are based on monthly reports of federally strictly comparable with previous months. Beginning April 1979, data are reported insured associations and annual reports of other associations. Even when revised, on a net-of-valuation-reserves basis. Before that date, data were reported on a data for current and preceding year are subject to further revision. gross-of-valuation-reserves basis. Mutual savings banks: Estimates of National Association of Mutual Savings 5. Beginning April 1979, includes obligations of U.S. government agencies. Banks for all savings banks in the United States. Before that date, this item was included in "Corporate and other." Life insurance companies: Estimates of the American Council of Life Insurance 6. Includes securities of foreign governments and international organizations for all life insurance companies in the United States. Annual figures are annualand, before April 1979, nonguaranteed issues of U.S. government agencies. statement asset values, with bonds carried on an amortized basis and stocks at 7. Excludes checking, club, and school accounts. year-end market value. Adjustments for interest due and accrued and for 8. Commitments outstanding (including loans in process) of banks in New York differences between market and book values are not made on each item separately State as reported to the Savings Banks Association of the state of New York. but are included, in total, in "other assets." 9. Direct and guaranteed obligations. Excludes federal agency issues not Credit unions: Estimates by the National Credit Union Administration for a guaranteed, which are shown in the table under "Business" securities. group of federal and federally insured state credit unions serving natural persons. Figures are preliminary and revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • December 1983 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1982 1983 1983 111999888111 111999888222 111999888333 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources1 599,272 617,766 600,563 322,478 286,338 306,331 49,683 63,556 48,102 2 Individual income taxes, net 285,917 297,744 288,938 150,565 145,676 144,550 23,259 30,961 23,227 3 Withheld 256,332 267,513 266,010 133,575 131,567 135,531 22,519 2211,,006600 21,720 4 Presidential Election Campaign Fund ... 41 39 36 34 5 30 2 11 0 5 Nonwithheld 76,844 84,691 83,586 66,174 20,040 63,014 1,967 11,595 2,022 6 Refunds 47,299 54,498 60,692 49,217 5,938 54,024 1,228 11,,669955 515 Corporation income taxes 7 Gross receipts 73,733 65,991 61,780 37,836 25,661 33,522 1,816 10,477 2,824 8 Refunds 12,596 16,784 24,758 8,028 11,467 13,809 1,433 1,430 2,356 9 Social insurance taxes and contributions, net 182,720 201,498 209,001 108,079 94,278 110,521 20,089 17,240 15,707 10 Payroll employment taxes and contributions2 156,932 172,744 179,010 88,795 85,063 90,912 16,137 15,753 14,266 11 Self-employment taxes and contributions3 6,041 7,941 6,756 7,357 177 6,427 0 927 0 12 Unemployment insurance 15,763 16,600 18,799 9,809 6,857 11,146 3,529 176 1,100 13 Other net receipts1-4 3,984 4,212 4,436 2,119 2,181 2,196 423 384 341 14 Excise taxes 40,839 36,311 35,300 17,525 16,556 16,904 3,112 3,692 3,142 15 Customs deposits 8,083 8,854 8,655 4,310 4,299 4,010 967 815 766 16 Estate and gift taxes 6,787 7,991 6,053 4,208 3,445 2,883 514 552 488 17 Miscellaneous receipts5 13,790 16,161 15,594 7,984 7,891 7,751 1,359 1,249 1,357 OUTLAYS 18 All types1 657,204 728,424 795,917 348,683 390,847 396,477 67,160 61,610 70,225 19 National defense 159,765 187,418 210,461 93,154 100,419 105,072 18,548 18,086 17,416 20 International affairs 11,130 9,982 8,927 5,183 4,406 4,705 209 822 1,083 21 General science, space, and technology ... 6,359 7,070 7,777 3,370 3,903 3,486 707 685 880 22 Energy 10,277 4,674 4,035 2,946 2,059 2,073 258 -97 253 23 Natural resources and environment 13,525 12,934 12,676 5,636 6,940 5,892 1,188 1,344 1,251 24 Agriculture 5,572 14,875 22,173 7,087 13,260 10,154 -5 662 1,718 25 Commerce and housing credit 3,946 3,865 4,721 1,408 2,244 2,164 -332 190 1,848 26 Transportation 23,381 20,560 21,231 9,915 10,686 9,918 2,101 2,148 3,051 27 Community and regional development .... 9,394 7,165 7,302 3,055 4,186 3,124 689 671 1,015 28 Education, training, employment, social services 31,402 26,300 25,726 12,607 12,187 12,801 2,673 2,046 2,165 29 Health1 65,982 74,017 81,157 37,219 39,073 41,206 7,420 5,917 7,928 30 Income security 225,101 248,343 280,244 112,782 133,779 143,001 22,418 22,853 20,922 31 Veterans benefits and services 22,988 23,955 24,845 10,865 13,241 11,334 2,258 2,012 1,940 32 Administration of justice 4,696 4,671 5,014 2,334 2,373 2,522 491 398 442 33 General government 4,614 4,726 4,991 2,400 2,322 2,434 1,248 282 143 34 General-purpose fiscal assistance 6,856 6,393 6,287 3,325 3,152 3,124 36 31 1,644 35 Net interest® 68,726 84,697 103,916 41,883 44,948 50,383 8,695 6,390 7,767 36 Undistributed offsetting receipts7 -16,509 -13,270 -35,566 -6,490 -8,333 -16,912 -1,444 -2,828 -1,242 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous voluntary hospital insurance premiums, previously included in other insurance receipts. receipts, have been reclassified as offsetting receipts in the health function. 6. Net interest function includes interest received by trust funds. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. 7. Consists of rents and royalties on the outer continental shelf and U.S. 3. Old-age, disability, and hospital insurance. government contributions for employee retirement. 4. Federal employee retirement contributions and civil service retirement and disability fund. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Government" and the Budget of the U.S. Government, Fiscal Year 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1981 1982 1983 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 1,003.9 1,034.7 1,066.4 1,084.7 1,147.0 1,201.9 1,249.3 1,324.3 1,381.9 7 Public debt securities 997.9 1,028.7 1,061.3 1,079.6 1,142.0 1,197.1 1,244.5 1,319.6 1,377.2 3 Held by public 789.8 825.5 858.9 867.9 925.6 987.7 1,043.3 1,090.3 1,138.2 4 Held by agencies 208.1 203.2 202.4 211.7 216.4 209.4 201.2 229.3 239.0 5 Agency securities 6.1 6.0 5.1 5.0 5.0 4.8 4.8 4.7 4.7 6 Held by public 4.6 4.6 3.9 3.9 3.7 3.7 3.7 3.6 3.6 7 Held by agencies 1.5 1.4 1.2 1.2 1.2 1.2 1.1 1.1 1.1 8 Debt subject to statutory limit 998.8 1,029.7 1,062.2 1,080.5 1,142.9 1,197.9 1,245.3 1,320.4 1,378.0 9 Public debt securities 997.2 1,028.1 1,060.7 1,079.0 1,141.4 1,196.5 1,243.9 1,319.0 1,376.6 10 Other debt1 1.6 1.6 1.5 1.5 1.5 1.4 1.4 1.4 1.3 11 MEMO: Statutory debt limit 999.8 1,079.8 1,079.8 1,143.1 1,143.1 1,290.2 1,290.2 1,389.0 1,389.0 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 1983 TTyyppee aanndd hhoollddeerr 11997799 11998800 11998811 11998822 July Aug. Sept. Oct. Nov. 1 Total gross public debt 845.1 930.2 1,028.7 1,197.1 1,326.9 1,348.4 1,377.2 1,384.6 1.389.2 By type 2 Interest-bearing debt 844.0 928.9 1,027.3 1,195.5 1,320.7 1,346.9 1,375.8 1,383.3 1,387.9 3 Marketable 530.7 623.2 720.3 881.5 985.7 1,010.4 1,024.0 1,035.3 1.044.3 4 Bills 172.6 216.1 245.0 311.8 337.6 340.4 340.7 339.0 335.3 5 Notes 283.4 321.6 375.3 465.0 527.2 544.2 557.5 566.2 575.3 6 Bonds 74.7 85.4 99.9 104.6 120.9 125.8 125.7 129.2 133.8 7 Nonmarketable1 313.2 305.7 307.0 314.0 335.0 336.5 351.8 347.9 343.5 8 2.2 9 State and local government series 24.6 23.8 23.0 25.7 33.2 33.9 35.1 35.3 35.7 1 1 1 0 Fo G re o i v gn e rn is m su e e n s t 3 2 2 3 8 . . 6 8 2 1 4 7 . . 0 6 1 1 4 9 . . 9 0 1 1 4 3 . . 7 0 1 1 1 1 . . 2 2 1111..11 1 1 1 1 . . 5 5 11 1 . , 5 5 1 1 0 0 . . 5 5 12 Public 5.3 6.4 4.1 1.7 .0 .0 .0 .0 .0 13 Savings bonds and notes 79.9 72.5 68.1 68.0 69.7 70.0 70.3 70.6 70.9 14 Government account series4 177.5 185.1 196.7 205.4 220.6 221.4 234.7 230.3 226.2 15 Non-interest-bearing debt 1.2 1.3 1.4 1.6 6.2 1.5 1.5 1.3 1.3 By holder5 16 U.S. government agencies and trust funds 187.1 192.5 203.3 209.4 17 Federal Reserve Banks 117.5 121.3 131.0 139.3 18 Private investors 540.5 616.4 694.5 848.4 19 Commercial banks 96.4 116.0 109.4 131.4 20 Mutual savings banks 4.7 5.4 5.2 n.a. 21 Insurance companies 16.7 20.1 19.1 38.7 22 Other companies 22.9 25.7 37.8 n.a. n a. n.a. n a. n a. n a. 23 State and local governments 69.9 78.8 85.6 113.4 Individuals 24 Savings bonds 79.9 72.5 68.0 68.3 25 Other securities 36.2 56.7 75.6 48.2 26 Foreign and international6 124.4 127.7 141.4 149.4 27 Other miscellaneous investors7 90.1 106.9 152.3 233.2 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Data for Federal Reserve Banks and U.S. government agencies and trust tion Administration, depository bonds, retirement plan bonds, and individual funds are actual holdings; data for other groups are Treasury estimates. retirement bonds. 6. Consists of investments of foreign balances and international accounts in the 2. These nonmarketable bonds, also known as Investment Series B Bonds, United States. may be exchanged (or converted) at the owner's option for 1 Vi 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

A32 DomesticN onfinancial Statistics • December 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 11998800 11998811 11998822 Aug/ Sept/ Oct. Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Immediate delivery1 1 U.S. government securities 18,331 24,728 32,271 45,684 48,100 46,157 49,117 56,318 50,857 48,532 44,621 44,745 By maturity 2 Bills 11,413 14,768 18,398 23,908 24,359 24,276 25,099 26,161 28,428 26,458 23,384 21,549 3 Other within 1 year 421 621 810 669 672 757 627 494 816 821 749 715 4 1-5 years 3,330 4,360 6,272 10,188 10,361 10,175 13,581 12,635 10,027 9,352 9,753 12,102 5 5-10 years 1,464 2,451 3,557 4,819 7,407 5,830 5,244 9,066 6,355 5,946 5,556 5,842 6 Over 10 years 1,704 2,528 3,234 6,100 5,302 5,119 4,566 7,961 5,231 5,956 5,179 4,537 By type of customer 7 U.S. government securities dealers 1,484 1,640 1,769 2,179 2,426 2,468 2,127 2,686 2,766 2,589 2,248 2,637 8 U.S. government securities brokers 7,610 11,750 15,659 23,951 24,477 23,3% 25,401 30,366 26,261 25,028 22,856 21,419 9 All others2 9,237 11,337 15,344 19,553 21,197 20,292 21,589 23,266 21,831 20,916 19,517 20,689 10 Federal agency securities 3,258 3,306 4,142 5,275 6,233 6,851 7,149 6,922 5,939 6,749 8,418 6,584 11 Certificates of deposit 22,,447722 4,477 5,001 4,425 4,765 4,206 5,592 4,855 3,814 4,027 4,537 4,120 12 Bankers acceptances 11 1,807 2,502 2,658 3,078 2,657 3,610 2,783 2,745 2,855 3,076 2,066 13 Commercial paper | 6,128 7,595 7,128 7,677 8,626 7,661 6,742 9,594 99,,225511 77,,994455 88,,339911 Futures transactions3 14 Treasury bills 1 3,523 5,031 7,458 6,008 7,978 7,137 6,833 6,811 8,370 10,927 6,165 15 Treasury coupons n.a. 1,330 1,490 3,144 2,549 3,173 3,058 2,880 2,507 3,275 3,859 3,228 16 Federal agency securities 1 234 259 276 200 208 289 183 210 228 227 211 Forward transactions4 1 1 7 8 U Fe .S de . r g a o l v a e g r e n n m cy e n s t e s c e u c r u it r i i e t s i es t 1 1,3 3 7 6 0 5 8 9 3 8 5 2 2 1 , , 1 79 1 2 8 2 1 , , 1 9 1 2 3 8 1 1, , 1 7 0 9 8 8 2 2 , , 8 6 9 0 0 9 3 2 , , 2 1 1 1 9 2 1, 2 4 7 2 4 7 2,3 7 0 8 1 9 1 1, , 9 1 8 2 3 8 2 1 , , 0 5 6 1 9 9 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 secunties, 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 11998800 11998811 11998822 Aug/ Sept. Oct. Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Positions Net immediate1 1 U.S. government securities 4,306 9,033 9,328 3,252 7,500 5,000 4,372 5,884 7,392 11,454 9,179 2 Bills 4,103 6,485 4,837 877 1,779 2,148 139 1,879 1,389 3,345 2,848 3 Other within 1 year -1,062 -1,526 -199 -198 -558 -465 -621 -494 -527 -591 -397 4 1-5 years 434 1,488 2,932 2,216 4,4% 3,021 3,129 2,466 5,391 6,435 5,024 5 5-10 years 166 292 -341 147 1,162 132 1,097 1,059 540 1,889 1,151 6 Over 10 years 665 2,294 2,001 210 621 164 628 974 600 376 552 7 Federal agency securities.. 797 2,277 3,712 7,995 9,170 10,152 8,559 9,557 9,785 8,655 9,216 8 Certificates of deposit 33,,111155 3,435 5,531 4,688 6,095 6,802 5,867 6,125 6,312 6,039 6,303 9 Bankers acceptances 44 1,746 2,832 2,917 3,743 4,062 3,397 4,320 3,898 3,438 3,425 10 Commercial paper 2,658 3,317 2,755 3,2% 3,385 2,818 3,417 3,122 3,465 3,908 Futures positions 11 Treasury bills 1 -8,934 -2,508 1,493 -6,932 -8,352 -3,606 -5,539 -6,708 -9,513 -10,922 12 Treasury coupons n.a. -2,733 -2,361 -1,715 -1,530 -711 -895 -1,612 -1,742 -1,668 -1,612 13 Federal agency securities.. 1 522 -224 428 188 308 434 294 123 -25 144 Forward positions 14 U.S. government securities T -603 -788 -4,348 -1,456 -1,756 -1,724 -2,412 -1,156 -643 -1,452 15 Federal agency securities.. -451 -1,190 -4,049 -5,205 -6,219 -4,991 -5,074 -6,305 -4,469 -5,373 Financing2 Reverse repurchase agreements3 tt 16 Overnight and continuing 14,568 26,754 32,232 30,255 33,623 34,483 31,720 26,506 28,311 31,848 17 Term agreements 32,048 48,247 51,018 53,158 53,194 50,961 53,183 52,931 55,558 51,443 Repurchase agreements4 18 Overnight and continuing nn..aa.. 35,919 49,695 58,772 60,603 63,269 64,824 63,467 56,302 57,817 61,406 19 Term agreements \\ 29,449 43,410 41,110 44,998 47,319 41,138 43,514 44,861 50,478 47,263 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1983 AAggeennccyy 11998800 11998811 11998822 May June July Aug. Sept. Oct. 1 Federal and federally sponsored agencies 188,665 221,946 237,085 234,289 235,041 236,037 236,931 236,610 2 Federal agencies 28,606 31,806 33,055 33,065 33,353 33,436 33,420 33,744 33,735 3 Defense Department1 610 484 354 308 298 284 274 264 258 4 Export-Import Bank2.3 11,250 13,339 14,218 14,303 14,563 14,563 14,564 14,740 14,740 5 Federal Housing Administration4 477 413 288 243 228 220 213 206 203 6 Government National Mortgage Association participation certificates' 2,817 2,715 2,165 2,165 2,165 2,165 2,165 2,165 2,165 7 Postal Service6 1,770 1,538 1,471 1,404 1,404 1,404 1,404 1,404 1,404 8 Tennessee Valley Authority 11,190 13,115 14,365 14,520 14,570 14,675 14,675 14,840 14,840 9 United States Railway Association6 492 202 194 122 125 125 125 125 125 10 Federally sponsored agencies7 160,059 190,140 204,030 201,224 201,688 202,601 203,511 202,866 11 Federal Home Loan Banks 37,268 54,131 55,967 49,756 48,871 49,065 49,081 49,283 49,956 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 5,777 6,500 6,146 5,875 6,134 13 Federal National Mortgage Association 55,182 58,749 70,052 70,769 71,303 71,612 72,163 71,258 71,965 14 Farm Credit Banks 62,923 71,359 71,896 72,548 72,652 73,306 73,744 73,046 73,465 15 Student Loan Marketing Association (8) 421 1,591 2,374 2,362 2,472 2,648 3,145 3,050 MEMO: 16 Federal Financing Bank debt 87,460 110,698 126,424 130,528 131,987 133,367 134,505 136,081 134,799 Lending to federal and federally sponsored 17 Export-Import Bank3 10,654 12,741 14,177 14,232 14,493 14,493 14,493 14,676 14,676 18 Postal Service6 1,520 1,288 1,221 1,154 1,154 1,154 1,154 1,154 1,154 19 Student Loan Marketing Association 2,720 5,400 5,000 5,000 5,000 5,000 5,000 5,000 5,000 20 Tennessee Valley Authority 9,465 11,390 12,640 12,795 12,845 12,950 12,950 13,115 13,175 21 United States Railway Association6 492 202 194 122 125 125 125 125 125 Other Lending10 22 Farmers Home Administration 39,431 48,821 53,261 54,586 54,946 55,776 56,386 55,691 55,916 23 Rural Electrification Administration 9,196 13,516 17,157 18,076 18,378 18,497 18,638 18,936 19,093 24 Other 11,262 12,740 22,774 24,563 25,046 25,372 25,759 27,384 25,660 1. Consists of mortgages assumed by the Defense Department between 1957 7. Includes outstanding noncontingent liabilities: Notes, bonds, and debenand 1963 under family housing and homeowners assistance programs. tures. 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 8. Before late 1981, the Association obtained financing through the Federal 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. Financing Bank. 4. Consists of debentures issued in payment of Federal Housing Administration 9. The FFB, which began operations in 1974, is authorized to purchase or sell insurance claims. Once issued, these securities may be sold privately on the obligations issued, sold, or guaranteed by other federal agencies. Since FFB securities market. incurs debt solely for the purpose of lending to other agencies, its debt is not 5. Certificates of participation issued before fiscal 1969 by the Government included in the main portion of the table in order to avoid double counting. National Mortgage Association acting as trustee for the Farmers Home Adminis- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter tration; Department of Health, Education, and Welfare; Department of Housing contain loans guaranteed by numerous agencies with the guarantees of any and Urban Development; Small Business Administration; and the Veterans particular agency being generally small. The Farmers Home Administration item Administration. consists exclusively of agency assets, while the Rural Electrification Administra- 6. Off-budget. tion entry contains both agency assets and guaranteed loans. 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, that is, 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

A34 DomesticN onfinancial Statistics • December 1983 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1983 Type of i o s r s u u e s e o r issuer, 11998800 11998811 11998822 Feb/ Mar/ Apr/ Mayr Juner July Aug/ Sept. 1 All issues, new and refunding1 48,367 47,732 78,950 6,172 8,762 11,002 9,572 7,508 4,284 6,056 5,956 Type of issue 2 General obligation 14,100 12,394 21,088 1,257 2,262 3,468 3,570 1,546 853 1,572 1,240 3 U.S. government loans2 38 34 225 3 3 2 6 7 7 9 14 4 Revenue 34,267 35,338 57,862 4,915 6,500 7,534 6,002 5,962 3,431 4,484 4,716 5 U.S. government loans2 57 55 461 2 5 9 14 16 26 29 35 Type of issuer 6 State 5,304 5,288 8,406 252 724 1,745 830 277 484 670 452 7 Special district and statutory authority 26,972 27,499 45,000 4,256 5,444 5,800 4,470 4,227 2,974 3,316 4,076 8 Municipalities, counties, townships, school districts 16,090 14,945 25,544 1,664 2,594 3,457 4,272 3,004 826 2,070 1,428 9 Issues for new capital, total 46,736 46,530 74,612 5,074 7,542 9,054 6,978 6,003 3,802 4,503 5,316 Use of proceeds 10 Education 4,572 4,547 6,444 1,089 831 681 827 879 532 709 494 11 Transportation 2,621 3,447 6,256 542 816 560 419 233 273 259 193 12 Utilities and conservation 8,149 10,037 14,254 1,050 1,732 2,592 1,513 935 264 277 1,234 13 Social welfare 19,958 12,729 26,605 1,511 2,794 3,139 2,062 2,095 1,888 2,120 2,256 14 Industrial aid 3,974 7,651 8,256 183 396 482 705 656 354 360 431 15 Other purposes 7,462 8,119 12,797 699 973 1,600 1,452 1,205 491 778 708 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 1983 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11998800 11998811 11998822 oorr uussee Feb. Mar. Apr. May June July Aug. Sept. 1 All issues1-2 73,694 70,441 84,198 8,491 11,728 10,468 11,489 8,165 6,474 5,941 6,568 2 Bonds 53,206 45,092 53,636 3,839 5,317 6,015 7,017 2,244 2,550 2,547 2,865 Type of offering 3 Public 41,587 38,103 43,838 3,839 5,317 6,015 7,017 2,244 2,550 2,547 2,865 4 Private placement 11,619 6,989 9,798 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 15,409 12,325 13,123 655 962 1,449 2,158 706 60 200 282 6 Commercial and miscellaneous 6,693 5,229 5,681 335 511 1,109 1,055 425 228 458 353 7 Transportation 3,329 2,052 1,474 250 0 175 150 115 148 0 0 8 Public utility 9,557 8,963 12,155 763 950 755 1,115 363 322 355 590 9 Communication 6,683 4,280 2,265 0 650 725 505 250 1,100 0 100 10 Real estate and financial 11,534 12,243 18,938 1,836 2,244 1,802 2,034 385 692 1,534 1,540 11 Stocks3 20,489 25,349 30,562 4,652 6,411 4,453 4,472 5,921 3,924 3,394 3,703 Type 12 Preferred 3,631 1,797 5,113 1,962 893 440 492 665 290 247 644 13 Common 16,858 23,552 25,449 2,690 5,518 4,013 3,980 5,256 3,634 3,147 3,059 Industry group 14 Manufacturing 4,839 5,074 5,649 1,038 1,654 1,424 1,545 2,449 1,015 1,309 962 15 Commercial and miscellaneous 5,245 7,557 7,770 646 1,225 1,494 922 1,358 1,415 743 997 16 Transportation 549 779 709 283 91 113 221 109 337 145 165 17 Public utility 6,230 5,577 7,517 534 674 639 264 550 72 263 200 18 Communication 567 1,778 2,227 2 1,133 37 8 138 20 236 0 19 Real estate and financial 3,059 4,584 6,690 2,149 1,634 746 1,512 1,317 1,065 698 1,379 1. Figures, which represent gross proceeds of issues maturing in more than one 2. Data for 1983 include only public offerings. year, sold for cash in the United States, are principal amount or number of units 3. Beginning in August 1981, gross stock offerings include new equity volume multiplied by offering price. Excludes offerings of less than $100,000, secondary from swaps of debt for equity. offerings, undefined or exempted issues as defined in the Securities Act of 1933, employee stock plans, investment companies other than closed-end, intracorpo- SOURCE. Securities and Exchange Commission and the Board of Governors of rate transactions, and sales to foreigners. the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A35 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1983 IItteemm 11998811 11998822 Feb. Mar. Apr. May June July Aug. Sept/ Oct. INVESTMENT COMPANIES1 1 Sales of own shares2 20,596 45,675 6,115 7,871 8,418 7,577 8,107 6,944 6,032 5,915 6,490 2 Redemptions of own shares3 15,866 30,078 3,510 5,066 6,482 4,486 5,416 4,500 4,885 4,412 4,264 3 Net sales 4,730 15,597 2,605 2,805 1,936 3,091 2,691 2,444 1,147 1,503 2,226 4 Assets4 55,207 76,841 84,981 90,075 98,669 101,423 106,449 104,279 104,494 109,455 107,314 5 Cash position5 5,277 6,040 7,404 7,904 8,496 8,771 9,110 8,815 8,045 8,868 8,256 6 Other 49,930 70,801 77,577 82,171 90,173 92,652 97,339 95,464 93,449 100,587 99,058 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 1983 AAccccoouunntt 11998800 11998811 11998822 Q4 Q1 Q2 Q3 Q4 Ql Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 175.4 192.3 164.8 192.0 162.0 166.8 168.5 161.9 181.8 218.2 246.2 2 Profits before tax 234.6 227.0 174.2 217.2 173.2 178.8 177.3 167.5 169.7 203.3 227.2 3 Profits tax liability 84.8 82.8 59.2 75.6 60.3 61.4 60.8 54.0 61.5 76.0 85.2 4 Profits after tax 149.8 144.1 115.1 141.6 112.9 117.4 116.5 113.5 108.2 127.2 142.0 5 Dividends 58.6 64.7 68.7 67.3 67.7 67.8 68.8 70.4 71.4 72.0 73.7 6 Undistributed profits 91.2 79.5 46.6 74.3 45.2 49.6 47.7 43.1 36.7 55.2 68.3 7 Inventory valuation -42.9 -23.6 -8.4 -15.7 -5.5 -8.5 -9.0 -10.3 -1.7 -10.6 -18.6 8 Capital consumption adjustment -16.3 -11.0 -1.1 -9.5 -5.6 -3.5 0.1 4.7 13.9 25.6 37.6 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • December 1983 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1982' 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811'' Q2 Q3 Q4 Ql' Q2 1 Current assets 912.7 1,043.7 1,214.8 1,327.0 1,419.3 1,417.2 1,441.8 1,425.4 1,436.5 1,464.2 2 Cash 97.2 105.5 118.0 126.9 131.8 124.1 126.9 144.0 139.7 145.7 3 U.S. government securities 18.2 17.2 16.7 18.7 17.4 16.5 18.9 22.4 25.8 27.5 4 Notes and accounts receivable 330.3 388.0 459.0 506.8 530.3 531.2 534.2 511.0 517.9 534.3 5 Inventories 376.9 431.8 505.1 542.8 585.1 587.6 596.5 575.2 573.2 570.5 6 Other 90.1 101.1 116.0 131.8 154.6 157.9 165.3 172.6 179.9 186.2 7 Current liabilities 557.1 669.5 807.3 889.3 976.3 988.7 1,007.6 977.8 986.3 997.7 8 Notes and accounts payable 317.6 383.0 460.8 513.6 558.8 554.9 562.7 552.8 543.2 551.6 9 Other 239.6 286.5 346.5 375.7 417.5 433.8 444.9 425.0 443.1 446.1 10 Net working capital 355.5 374.3 407.5 437.8 442.9 428.5 434.2 447.6 450.2 466.5 11 MEMO: Current ratio1 1.638 1.559 1.505 1.492 1.454 1.433 1.431 1.458 1.456 1.468 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, Board of Governors of the Federal Reserve System, Washington, D.C. Corporations" in the July 1978 BULLETIN, pp. 533-37. 20551. SOURCE. Federal Trade Commission and Bureau of the Census. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1982 1983 1984 IInndduussttrryy11 11998811 11998822 1199883311 Q3 Q4' QL Q2 Q3R Q41 QL' Q21 1 Total nonfarm business 321.49 316.43 303.20 315.79 303.18 293.03 293.46 304.70 321.60 323.07 325.42 Manufacturing 2 Durable goods industries 61.84 56.44 51.45 57.14 50.51 50.74 48.48 53.06 53.52 57.18 58.09 3 Nondurable goods industries 64.95 63.23 59.74 62.32 59.72 59.12 60.31 58.06 61.45 61.81 62.86 Nonmanufacturing 4 Mining 16.86 15.45 12.00 14.63 13.41 12.03 10.91 11.93 13.14 12.25 13.68 Transportation 5 Railroad 4.24 4.38 3.93 3.94 4.35 3.35 3.64 4.07 4.68 4.38 4.68 6 Air 3.81 3.93 3.78 4.11 4.76 4.09 4.10 3.57 3.34 2.44 2.70 7 Other 4.00 3.64 3.54 3.24 3.22 3.60 3.14 3.36 4.07 3.96 4.03 Public utilities 8 Electric 29.74 33.40 35.29 34.98 35.15 33.97 34.86 35.84 36.50 32.80 32.76 9 Gas and other 8.65 8.55 7.33 8.40 7.85 7.64 6.62 6.38 8.67 9.02 9.54 10 Trade and services 86.33 86.95 88.02 87.31 84.36 82.38 85.85 91.06 92.79 96.98 95.03 11 Communication and other2 41.06 40.46 38.11 39.73 39.84 36.11 35.54 37.38 43.42 42.25 42.03 1. Anticipated by business. SOURCE. Survey of Current Business (Department 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 A37 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1982 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811 Q3 Q4 Qi Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 44.0 52.6 65.7 73.6 85.5 88.3 89.5 89.9 91.3 92.3 2 Business 55.2 63.3 70.3 72.3 80.6 82.2 81.0 82.2 84.9 86.8 3 Total 99.2 116.0 136.0 145.9 166.1 170.5 170.4 172.1 176.2 179.0 4 LESS: Reserves for unearned income and losses.... 12.7 15.6 20.0 23.3 28.9 30.4 30.5 29.7 30.4 30.1 5 Accounts receivable, net 86.5 100.4 116.0 122.6 137.2 140.1 139.8 142.4 145.8 148.9 6 Cash and bank deposits 2.6 3.5 1 7 Securities .9 1.3 )• 24.9' 27.5 34.2 39.1 39.7 42.8 44.3 45.0 8 All other 14.3 17.3 J 9 Total assets 104.3 122.4 140.9 150.1 171.4 179.2 179.5 185.2 190.2 193.9 LIABILITIES 10 Bank loans 5.9 6.5 8.5 13.2 15.4 16.8 18.6 16.6 16.3 17.0 11 Commercial paper 29.6 34.5 43.3 43.4 51.2 46.7 45.8 45.2 49.0 49.7 Debt 12 Short-term, n.e.c 6.2 8.1 8.2 7.5 9.6 9.9 8.7 9.8 9.6 8.7 13 Long-term, n.e.c 36.0 43.6 46.7 52.4 54.8 60.9 63.5 64.7 64.5 66.2 14 Other 11.5 12.6 14.2 14.3 17.8 20.5 18.7 22.8 24.0 24.4 15 Capital, surplus, and undivided profits 15.1 17.2 19.9 19.4 22.8 24.5 24.2 26.0 26.7 27.9 16 Total liabilities and capital 104.3 122.4 140.9 150.1 171.4 179.2 179.5 185.2 190.2 193.9 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments receivable AAAccccccooouuunnntttsss rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuutttssstttaaannndddiiinnnggg 1983 1983 1983 SSSeeepppttt... 333000,,, 111999888333111 July Aug. Sept. July Aug. Sept. July Aug. Sept. 1 Total 86,759 396 1,817 2,909 23,387 29,882 27,209 22,991 28,065 24,300 2 Retail automotive (commercial vehicles) 18,671 503 1,052 1,443 1,615 2,184 2,620 1,112 1,132 1,177 3 Wholesale automotive 11,521 -239 1,039 397 6,363 8,285 7,461 6,602 7,246 7,064 4 Retail paper on business, industrial, and farm equipment 27,862 -67 -320 256 1,220 1,385 1,149 1,287 1,705 893 5 Loans on commercial accounts receivable and factored commercial accounts receivable 9,795 189 279 255 12,616 15,794 13,782 12,427 15,515 13,527 6 All other business credit 18,910 10 -233 558 1,573 2,234 2,197 1,563 2,467 1,639 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • December 1983 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1983 IItteemm 11998800 11998811 11998822 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 83.4 90.4 94.6 89.6 92.1 93.0 97.3 94.4 2 Amount of loan (thousands of dollars) 59.2 65.3 69.8 66.5 67.8 69.2 72.3 67.3 3 Loan/price ratio (percent) 73.2 74.8 76.6 74.2 77.5 76.9 76.5 73.3 4 Maturity (years) 28.2 27.7 27.6 26.9 26.8 27.3 28.1 25.7 5 Fees and charges (percent of loan amount)2 2.09 2.67 2.95 2.09 2.44 2.43 2.54 1.96 6 Contract rate (percent per annum) 12.25 14.16 14.47 12.02 12.21 11.90 12.02 12.01 Yield (percent per annum) 7 FHLBB series5 12.65 14.74 15.12 12.42 12.67 12.36 12.50 12.38 8 HUD series4 13.95 16.52 15.79 13.02 13.09 13.37 14.00 13.90 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5. 13.44 16.31 15.31 12.50 12.41 12.96 14.23 13.78 10 GNMA securities6 12.55 15.29 14.68 11.76 11.72 12.09 12.54 13.01 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 55,104 58,675 66,031 73,554 74,116 74,669 74,630 75,057 75,174 75,665 12 FHA/VA-insured 37,365 39,341 39,718 37,901 37,669 37,376 37,092 36,894 36,670 36,455 13 Conventional 17,725 19,334 26,312 35,653 36,446 37,293 37,583 38,163 38,505 39,210 Mortgage transactions (during period) 14 Purchases 8,099 6,112 15,116 1,004 1,579 1,333 1,358 1,213 1,203 1,244 15 Sales 0 2 2 586 204 83 786 121' 464 257 Mortgage commitments1 16 Contracted (during period) 8,083 9,331 22,105 1,023 1,534 2,506 1,198 1,282 2,739 1,882 17 Outstanding (end of period) 3,278 3,717 7,606 5,811 5,726 5,887 5,099 5,165 6,684 7,182 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodJ8 18 Total 4,362 5,245 5,153 4,997 6,026 6,235 6,182 6,149 6,857 19 FHA/VA 2,116 2,236 1,921 990 984 982 971 964 961 20 Conventional 2,246 3,010 3,224 4,008 5,042 5,253 5,211 5,185 5,896 Mortgage transactions (during period) 21 Purchases 3,723 3,789 23,671 1,807 2,439 1,494 1,523 1,621 2,263 n a. 22 Sales 2,527 3,531 24,164 1,525 1,408 1,244 1,491 1,588 1,556 Mortgage commitments9 23 Contracted (during period) 3,859 6,974 28,187 3,079 2,334 2,358 4,671 6,367 3,283 24 Outstanding (end of period) 447 3,518 7,549 7,253 6,889 7,719 10,794 15,519 16,512 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associmajor institutional lender groups. Compiled by the Federal Home Loan Bank ation guaranteed, mortgage-backed, fully modified pass-through securities, as- Board in cooperation with the Federal Deposit Insurance Corporation. suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying 2. Includes all fees, commissions, discounts, and "points" paid (by the the prevailing ceiling rate. Monthly figures are unweighted averages of Monday borrower or the seller) to obtain a loan. quotations for the month. 3. Average effective interest rates on loans closed, assuming prepayment at the 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages, rounded to the nearest 5 basis points; from Department of Housing and 8. Includes participation as well as whole loans. Urban Development. 9. Includes conventional and government-underwritten loans. FHLMC's 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing mortgage commitments and mortgage transactions include activity under mort- Administration-insured first mortgages for immediate delivery in the private gage/securities swap programs, while the corresponding data for FNMA exclude secondary market. Any gaps in data are due to periods of adjustment to changes in swap activity. maximum permissible contract rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A39 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1982 1983 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998800 11998811 11998822 Q3 Q4 Q1 Q2' Q3' 1 AU holders 1,471,786 1,583,264 1,655,172' 1,632,161' 1,655,172' 1,682,598' 1,724,122' 1,773,599 7 1- to 4-family 986,979 1,065,294 1,114,193' 1,096,173' 1,114,193' 1,133,261' 1,161,807' 1,197,719 3 Multifamily 137,134 136,354 140,285' 138,385' 140,285' 142,154' 145,387' 147,774 4 Commercial 255,655 279,889 293,884' 291,197' 293,884' 300,246' 309,224' 319,289 5 92,018 101,727 106,810' 106,406 106,81C 106,937' 107,704' 108,817 6 Major financial institutions 997,168 1,040,827 1,023,700' 1,027,027 1,023,700' 1,029.77C 1,049,758 1,080,316 7 Commercial banks1 263,030 284,536 301,742 298,342 301,742 305,672 312,663 324,063 8 1- to 4-family 160,326 170,013 177,122 175,126 177,122 179,430 183,533 190,225 9 Multifamily 12,924 15,132 15,841 15,666 15,841 16,147 16,634 17,240 10 Commercial 81,081 91,026 100,269 99,050 100,269 101,575 103,898 107,686 11 Farm 8,699 8,365 8,510 8,500 8,510 8,520 8,598 8,912 V Mutual savings banks 99,865 99,997 97,805' 94,382 97,805' 105,379 119,236 128,057 13 1- to 4-family 67,489 68,187 66,777' 63,849 66,777' 72,912 83,87C 90,911 14 Multifamily 16,058 15,960 15,305' 15,026 15,305' 15,862 17,066' 17,748 15 Commercial 16,278 15,810 15,694' 15,479 15,694' 16,577 18,262' 19,361 16 Farm 40 40 29 28 29 28 38' 37 17 Savings and loan associations 503,192 518,547 482,234 493,899 482,234 475,688 473,134 481,346 18 1- to 4-family 419,763 433,142 397,795' 408,701' 397,795' 389,112' 383,806' 389,121 19 Multifamily 38,142 37,699 39,302' 38,771' 39,302' 39,721' 40,453' 41,636 20 Commercial 45,287 47,706 45,137' 46,427' 45,137' 46,855' 48,875' 50,589 2.1 Life insurance companies 131,081 137,747 141,919 140,404 141,919 143,031' 144,725' 146,850 77 1- to 4-family 17,943 17,201 16,743 16,865 16,743 16,388' 15.86C 15,648 73 Multifamily 19,514 19,283 18,847 18,967 18,847 18,825' 18,778' 18,892 74 Commercial 80,666 88,163 93,501 91,640 93,501 95,158' 97,416' 99,542 25 Farm 12,958 13,100 12,828 12,932 12,828 12.66C 12,671' 12,768 26 Federal and related agencies 114,300 126,094 138,185 134,409 138,185 140,028 142,094' 141,560 27 Government National Mortgage Association 4,642 4,765 4,227 4,110 4,227 3,753 3,643' 3,475 78 1- to 4-family 704 693 676 682 676 665 651' 639 29 Multifamily 3,938 4,072 3,551 3,428 3,551 3,088 2,992' 2,836 30 Farmers Home Administration 3,492 2,235 1,786 947 1,786 2,077 1,605 600 31 1- to 4-family 916 914 783 302 783 707 381 211 32 Multifamily 610 473 218 46 218 380 555 32 33 Commercial 411 506 377 164 377 337 248 113 34 Farm 1,555 342 408 435 408 653 421 244 35 Federal Housing and Veterans Administration 5,640 5,999 5,228 5,362 5,228 5,138 5,084 5,117 36 1- to 4-family 2,051 2,289 1,980 2,130 1,980 1,867 1,911 1,947 37 Multifamily 3,589 3,710 3,248 3,232 3,248 3,271 3,173 3,170 38 Federal National Mortgage Association 57,327 61,412 71,814 68,841 71,814 73,666 74,669 75,174 39 1- to 4-family 51,775 55,986 66,500 63,495 66,500 68,370 69,396 69,938 40 Multifamily 5,552 5,426 5,314 5,346 5,314 5,296 5,273 5,236 41 Federal Land Banks 38,131 46,446 50,350 49,983 50,350 50,544 50,858 51,069 47 1- to 4-family 2,099 2,788 3,068 3,029 3,068 3,059 3,030 3,008 43 Farm 36,032 43,658 47,282 46,954 47,282 47,485 47,828 48,061 44 Federal Home Loan Mortgage Corporation 5,068 5,237 4,780 5,166 4,780 4,850 6,235 6,125 4S 1- to 4-family 3,873 5,181 4,733 5,116 4,733 4,795 6,119 6,005 46 Multifamily 1,195 56 47 50 47 55 116 120 47 Mortgage pools or trusts2 142,258 163,000 216,654 198,376 216,654 234,596 252,665 270,045 48 Government National Mortgage Association 93,874 105,790 118,940 114,776 118,940 127,939 139,276 149,612 49 1- to 4-family 91,602 103,007 115,831 111,728 115,831 124,482 135,628 145,692 50 Multifamily 2,272 2,783 3,109 3,048 3,109 3,457 3,648 3,920 51 Federal Home Loan Mortgage Corporation 16,854 19,853 42,964 35,132 42,964 48,008 50,934 54,342 52 1- to 4-family 13,471 19,501 42,560 34,739 42,560 47,575 50,446 53,690 53 Multifamily 3,383 352 404 393 404 433 488 652 54 Federal National Mortgage Association3 n.a. 717 14,450 8,133 14,450 18,157 20,933 23,819 55 1- to 4-family n.a. 717 14,450 8,133 14,450 18,157 20,933 23,819 56 Farmers Home Administration 31,530 36,640 40,300 40,335 40,300 40,492 41,522 43,033 57 1- to 4-family 16,683 18,378 20,005 20,079 20,005 20,263 20,728 21,083 58 Multifamily 2,612 3,426 4,344 4,344 4,344 4,344 4,343 5,032 59 Commercial 5,271 6,161 7,011 7,056 7,011 7,115 7,303 7,542 60 Farm 6,964 8,675 8,940 8,856 8,940 8,770 9,148 9,376 61 Individual and others4 218,060 253,343 276,633' 272,349 276,633' 278,204' 279,605' 280,917 62 1- to 4-family5 138,284 167,297 185,17c 182,199 185,17C 185,479' 185,515' 185,782 63 Multifamily 27,345 27,982 30,755' 30,068 30,755' 31,275' 31,868' 31,260 64 Commercial 26,661 30,517 31,895' 31,381 31,895' 32,629' 33,222' 34,456 65 Farm 25,770 27,547 28,813' 28,701 28,813' 28,821' 29,00C 29,419 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 for FuaRlsA. SER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 DomesticN onfinancial Statistics • December 1983 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change A Millions of dollars 1983 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 Mar. Apr. May June July Aug. Sept. Oct. Amounts outstanding (end of period) 1 Total 313,472 331,697 344,798 342,568 344,748 347,189 353,012 358,020 363,662 367,604 371,561 By major holder 2 Commercial banks 147,013 147,622 152,069 151,319 152,408 153,471 156,603 159,666 163,313 165,971 168,352 3 Finance companies .... 76,756 89,818 94,322 94,817 94,675 95,364 96,349 97,319 97,708 97,274 97,370 4 Credit unions 44,041 45,954 47,253 47,081 47,505 47,838 48,652 49,139 50,121 51,123 51,767 5 Retailers2 28,448 29,551 30,202 27,472 27,455 27,541 27,804 27,900 28,067 28,319 28,713 6 Savings and loans 9,911 11,598 13,891 15,083 15,551 15,842 16,207 16,369 16,615 17,130 17,624 7 Gasoline companies ... 4,468 4,403 4,063 3,669 3,980 3,943 4,159 4,356 4,457 4,338 4,243 8 Mutual savings banks .. 2,835 2,751 2,998 3,127 3,174 3,190 3,238 3,271 3,381 3,449 3,492 By major type of credit 9 Automobile 116,838 125,331 130,227 130,959 131,976 133,640 136,183 138,689 141,677 142,477 143,621 10 Commercial banks... 61,536 58,081 58,851 58,567 59,291 60,384 61,870 63,425 66,065 67,413 68,828 11 Indirect paper 35,233 34,375 35,178 (3) (3) (3) (3) (3) (3) (3) (3) 12 Direct loans 26,303 23,706 23,673 (3) (3) (3) (3) (3) (3) (3) (3) 13 Credit unions 21,060 21,975 22,596 22,518 22,721 22,880 23,269 23,502 23,972 24,451 24,759 14 Finance companies .. 34,242 45,275 48,780 49,874 49,964 50,376 51,044 51,762 51,640 50,613 50,034 15 Revolving 58,352 62,819 67,184 63,091 63,521 63,459 64,899 65,856 66,913 67,904 68,921 16 Commercial banks... 29,765 32,880 36,688 35,533 35,651 35,536 36,515 37,173 37,973 38,848 39,576 17 Retailers 24,119 25,536 26,433 23,889 23,890 23,980 24,225 24,327 24,483 24,718 25,102 18 Gasoline companies . 4,468 4,403 4,063 3,669 3,980 3,943 4,159 4,356 4,457 4,338 4,243 19 Mobile home 17,322 18,373 18,988 19,379 19,400 19,448 19,647 19,750 19,882 20,087 20,256 20 Commercial banks... 10,371 10,187 9,684 9,739 9,624 9,581 9,651 9,717 9,741 9,766 9,767 21 Finance companies .. 3,745 4,494 4,965 4,967 4,970 4,976 4,995 4,982 5,012 5,038 5,062 22 Savings and loans ... 2,737 3,203 3,836 4,174 4,303 4,384 4,485 4,530 4,598 4,741 4,878 23 Credit unions 469 489 503 499 503 507 516 521 531 542 549 24 Other 120,960 125,174 128,399 129,139 129,851 130,642 132,283 133,725 135,190 137,136 138,763 25 Commercial banks... 45,341 46,474 46,846 47,480 47,842 47,970 48,567 49,351 49,534 49,944 50,181 26 Finance companies .. 38,769 40,049 40,577 39,976 39,741 40,012 40,310 40,575 41,056 41,623 42,274 27 Credit unions 22,512 23,490 24,154 24,064 24,281 24,451 24,867 25,116 25,618 26,130 26,459 28 Retailers 4,329 4,015 3,769 3,583 3,565 3,561 3,579 3,573 3,584 3,601 3,611 29 Savings and loans ... 7,174 8,395 10,055 10,909 11,248 11,458 11,722 11,839 12,017 12,389 12,746 30 Mutual savings banks 2,835 2,751 2,998 3,127 3,174 3,190 3,238 3,271 3,381 3,449 3,492 Net change (during period)4 31 Total 1,448 18,217 2,418 2,582 2,271 2,696 4,406 4,840 3,388 2,375 4,885 By major holder 32 Commercial banks -7,163 607 1,111 1,354 1,186 1,540 2,422 2,766 2,317 1,829 2,629 33 Finance companies .... 8,438 13,062 1,024 487 -520 362 470 909 239 -721 620 34 Credit unions -2,475 1,913 197 143 708 288 573 662 510 646 942 35 Retailers2 329 1,103 -91 422 147 169 368 272 5 245 150 36 Savings and loans 1,485 1,682 201 187 394 374 456 188 147 507 376 37 Gasoline companies ... 739 -65 -51 -35 299 -51 77 5 65 -167 131 38 Mutual savings banks.. 95 -85 27 24 57 14 40 38 105 36 37 By major type of credit 39 Automobile 477 8,495 1,491 1,221 689 1,313 1,973 2,421 2,521 285 1,772 4 4 4 0 1 2 Co D I m n i d m re ir e c e r t c c t l i o a p a l a n b p s e a r n ks... - - -3 2 5 , , , 1 7 8 0 2 3 4 6 0 - - 3 2 - , , 8 4 5 5 5 9 8 5 7 5 4 9 2 2 8 9 7 2 ( ( 4 3 3 0 ) ) 6 ( ( 1 3 3 2 ) ) 1,0 ( ( 6 3 3 6 ) ) 1,2 ( ( 8 3 3 4 ) ) 1,4 ( ( 8 3 3 2 ) ) 2,35 ( ( 3 3 9 ) ) 1,2 ( ( 4 3 3 3 ) ) 1,4 ( ( 9 3 3 9 ) ) 43 Credit unions -1,184 914 89 68 341 137 275 328 232 309 451 44 Finance companies .. 7,491 11,033 875 913 -264 110 414 611 -70 -1,267 -178 45 Revolving 1,415 4,467 501 1,177 917 514 1,210 821 313 479 1,145 46 Commercial banks... -97 3,115 650 786 468 373 806 556 217 404 856 47 Retailers 773 1,417 -98 426 150 192 327 260 31 242 158 48 Gasoline companies . 739 -65 -51 -35 299 -51 77 5 65 -167 131 49 Mobile home 483 1,049 -37 -61 22 17 151 141 70 150 102 50 Commercial banks... -276 -186 -74 -95 -99 -86 28 68 -14 8 -10 51 Finance companies .. 355 749 -15 -23 8 1 -6 7 15 1 -16 52 Savings and loans ... 430 466 49 54 107 98 123 59 64 134 118 53 Credit unions -25 20 3 3 6 4 6 7 5 7 10 54 Other -927 4,206 463 245 643 852 1,072 1,457 484 1,461 1,866 55 Commercial banks... -960 1,133 8 423 205 187 304 660 -245 174 284 56 Finance companies .. 592 1,280 164 -403 -264 251 62 291 294 545 814 57 Credit unions -1,266 975 105 72 361 147 292 327 273 330 481 58 Retailers -444 -314 7 -4 -3 -23 41 12 -26 3 -8 59 Savings and loans ... 1,056 1,217 152 133 287 276 333 129 83 373 258 60 Mutual savings banks 95 -85 27 24 57 14 40 38 105 36 37 • These data have been revised from December 1980 through February 1983. 4. For 1982 and earlier, net change equals extensions, seasonally adjusted less 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, and scheduled to be repaid (or with the option of repayment) in two or more NOTE: Total consumer noninstallment credit outstanding—credit scheduled to installments. be repaid in a lump sum, including single-payment loans, charge accounts, and 2. Includes auto dealers and excludes 30-day charge credit held by travel and service credit—amounted to, not seasonally adjusted, $74.8 billion at the end of entertainment companies. 1980, $80.6 billion at the end of 1981, and $85.9 billion at the end of 1982. 3. Not reported after December 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A41 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT Percent unless noted otherwise 1983 1982 May June July Aug. Sept. INTEREST RATES Commercial banks1 1 48-month new car2 14.30 16.54 16.83 13.90 13.50 2 24-month personal 15.47 18.09 18.65 16.57 16.28 3 120-month mobile home2 14.99 17.45 18.05 15.84 15.58 4 Credit card 17.31 17.78 18.51 18.79 18.75 Auto finance companies 5 New car 14.82 16.17 16.15 11.94 11.57 11.84 12.77 13.62 6 Used car 19.10 20.00 20.75 18.76 18.58 18.28 18.25 18.21 OTHER TERMS3 Maturity (months) 7 New car 45.0 45.4 46.0 45.4 45.6 45.7 45.9 46.2 8 Used car 34.8 35.8 34.0 37.9 38.0 38.0 38.0 38.0 Loan-to-value ratio 9 New car 87.6 86.1 85.3 86.0 10 Used car 94.2 91.8 90.3 92.0 Amount financed (dollars) 11 New car 6,322 7,339 8,178 8,572 8,512 8,642 8,724 8,792 12 Used car 3,810 4,343 4,746 4,984 5,039 5,052 5,103 5,144 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

A42 Domestic Financial Statistics • December 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 1983 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 319.4 369.8 386.0 343.2 377.2 395.3 371.3 392.4 362.0 356.8 434.8 495.2 By sector and instrument 2 U.S. government 56.8 53.7 37.4 79.2 87.4 161.3 92.5 87.8 86.9 106.9 215.5 230.2 3 Treasury securities 57.6 55.1 38.8 79.8 87.8 162.1 93.1 88.3 87.3 108.3 215.9 230.2 4 Agency issues and mortgages -.9 -1.4 -1.4 -.6 -.5 -.9 -.6 -.5 -.4 -1.4 -.4 -.1 5 Private domestic nonfinancial sectors 262.6 316.2 348.6 264.0 289.8 234.1 278.7 304.6 275.1 249.9 219.3 265.0 6 Debt capital instruments 171.1 199.7 211.2 192.0 158.4 152.4 189.9 179.3 137.5 139.7 166.1 223.7 7 Tax-exempt obligations 21.9 28.4 30.3 30.3 21.9 50.5 31.9 21.1 22.6 41.7 59.4 60.9 8 Corporate bonds 22.9 21.1 17.3 26.7 22.1 18.8 20.7 26.1 18.0 10.8 26.9 20.9 9 Mortgages 126.3 150.2 163.6 135.1 114.5 83.0 137.3 132.0 96.9 87.3 79.9 142.0 10 Home mortgages 94.0 112.2 120.0 96.7 75.9 56.6 99.2 92.6 59.2 55.8 58.6 106.7 11 Multifamily residential 7.1 9.2 7.8 8.8 4.3 1.3 9.6 4.9 3.7 4.2 -1.7 7.8 12 Commercial 18.1 21.7 23.9 20.2 24.6 20.0 20.9 25.2 23.9 21.4 18.6 27.2 13 Farm 7.1 7.2 11.8 9.3 9.7 5.2 7.6 9.3 10.1 5.9 4.4 .2 14 Other debt instruments 91.6 116.5 137.5 72.0 131.5 81.6 88.8 125.3 137.6 110.1 53.2 41.3 15 Consumer credit 40.2 48.8 45.4 4.9 24.1 18.3 13.0 28.9 19.3 19.3 17.4 38.8 16 Bank loans n.e.c 27.1 37.4 51.2 36.7 54.7 54.4 59.7 45.5 63.9 70.1 38.8 3.8 17 Open market paper 2.9 5.2 11.1 5.7 19.2 -3.3 -9.2 12.0 26.3 6.5 -13.0 -16.3 18 Other 21.3 25.1 29.7 24.8 33.4 12.2 25.3 38.9 28.0 14.3 10.2 15.0 19 By borrowing sector 262.6 316.2 348.6 264.0 289.8 234.1 278.7 304.6 275.1 249.9 219.3 265.0 20 State and local governments 15.4 19.1 20.5 20.3 9.7 36.3 21.7 9.1 10.2 29.3 43.3 51.3 21 Households 137.3 169.4 176.4 117.5 120.6 86.3 121.3 139.8 101.3 87.6 86.1 139.8 22 Farm 12.3 14.6 21.4 14.4 16.3 9.0 12.8 20.1 12.5 9.0 9.1 -1.1 23 Nonfarm noncorporate 28.0 32.4 34.4 33.7 39.6 29.8 40.6 39.8 39.5 34.6 24.9 40.0 24 Corporate 69.7 80.6 96.0 78.1 103.7 72.7 82.3 95.8 111.5 89.3 56.0 34.9 25 Foreign net borrowing in United States 13.5 33.8 20.2 27.2 27.2 15.7 26.7 31.9 22.5 12.8 18.6 18.7 26 Bonds 5.1 4.2 3.9 .8 5.4 6.6 -.4 3.3 7.6 2.4 10.8 4.4 27 Bank loans n.e.c 3.1 19.1 2.3 11.5 3.7 -6.2 18.5 3.1 4.2 -5.1 -7.2 14.9 28 Open market paper 2.4 6.6 11.2 10.1 13.9 10.7 4.5 20.6 7.1 12.5 9.0 -4.6 29 U.S. government loans 3.0 3.9 2.9 4.7 4.2 4.5 4.0 4.9 3.5 3.0 6.0 4.0 30 Total domestic plus foreign 332.9 403.6 406.2 370.4 404.4 411.0 397.9 424.4 384.5 369.6 453.4 513.9 Financial sectors 31 Total net borrowing by financial sectors 45.8 74.6 82.5 63.3 85.4 69.3 64.0 87.4 83.4 89.8 48.7 70.8 By instrument 32 U.S. government related 22.0 37.1 47.9 44.8 47.4 64.9 40.4 45.2 49.6 61.3 68.4 67.9 33 Sponsored credit agency securities 7.0 23.1 24.3 24.4 30.5 14.9 20.8 28.9 32.1 23.6 6.3 -2.5 34 Mortgage pool securities 16.1 13.6 23.1 19.2 15.0 49.5 18.6 14.9 15.1 37.0 62.1 70.4 35 Loans from U.S. government -1.1 .4 .6 1.2 1.9 .4 1.1 1.4 2.4 .8 36 Private financial sectors 23.8 37.5 34.6 18.5 38.0 4.4 23.6 42.2 33.8 28.5 -19.7 2.9 37 Corporate bonds 10.1 7.5 7.8 7.1 -.8 2.3 3.1 -.3 -1.4 -1.2 5.8 12.2 38 Mortgages # .1 * -.1 -.5 .1 -.2 -.8 -.2 .1 .1 .1 39 Bank loans n.e.c -.3 2.8 -.4 -.4 2.2 3.2 -.4 3.2 1.1 5.2 1.2 -5.1 40 Open market paper 9.6 14.6 18.0 4.8 20.9 -2.0 10.8 23.5 18.4 14.0 -18.0 8.6 41 Loans from Federal Home Loan Banks 4.3 12.5 9.2 7.1 16.2 .8 10.3 16.7 15.8 10.4 -8.8 -12.9 By sector 42 Sponsored credit agencies 5.9 23.5 24.8 25.6 32.4 15.3 21.8 30.3 34.5 24.4 6.3 -2.5 43 Mortgage pools 16.1 13.6 23.1 19.2 15.0 49.5 18.6 14.9 15.1 37.0 62.1 70.4 44 Private financial sectors 23.8 37.5 34.6 18.5 38.0 4.4 23.6 42.2 33.8 28.5 -19.7 2.9 45 Commercial banks 1.1 1.3 1.6 .5 .4 1.2 .3 .2 .5 .7 1.7 .8 46 Bank affiliates 2.0 7.2 6.5 6.9 8.3 1.9 8.0 6.9 9.7 9.7 -5.8 6.1 47 Savings and loan associations 6.9 13.5 12.6 7.4 15.5 -3.0 12.3 16.8 14.1 9.1 -15.2 -10.8 48 Finance companies 16.9 18.1 16.6 6.3 14.1 4.9 5.8 18.5 9.7 9.5 .2 7.5 49 REITs -2.5 -1.4 -1.3 -2.2 .2 .1 -2.5 .2 .2 .1 .1 .1 All sectors 50 Total net borrowing 378.7 478.2 488.7 433.7 489.8 480.3 462.0 511.8 467.9 459.4 502.1 584.7 51 U.S. government securities 79.9 90.5 84.8 122.9 133.0 225.9 132.0 131.8 134.3 167.6 284.0 298.2 52 State and local obligations 21.9 28.4 30.3 30.3 21.9 50.5 31.9 21.1 22.6 41.7 59.4 60.9 53 Corporate and foreign bonds 38.0 32.8 29.0 34.6 26.7 27.7 23.5 29.1 24.2 12.0 43.5 37.5 54 Mortgages 126.2 150.2 163.5 134.9 113.9 83.0 137.0 131.1 96.6 87.3 79.8 142.0 55 Consumer credit 40.2 48.8 45.4 4.9 24.1 18.3 13.0 28.9 19.3 19.3 17.4 38.8 56 Bank loans n.e.c 29.9 59.3 53.0 47.8 60.6 51.4 77.8 51.8 69.3 70.2 32.8 13.6 57 Open market paper 15.0 26.4 40.3 20.6 54.0 5.4 6.1 56.1 51.9 33.0 -22.1 -12.3 58 Other loans 27.5 41.9 42.4 37.8 55.8 17.9 40.7 61.8 49.7 28.4 7.4 6.1 External corporate equity funds raised in United States 59 Total new share issues 6.5 1.9 -3.8 22.2 -3.7 35.4 28.0 10.2 -17.7 23.7 47.0 87.1 60 Mutual funds .9 -.1 .1 5.2 6.8 18.6 4.6 8.1 5.6 13.2 24.0 38.8 61 All other 5.6 1.9 -3.9 17.1 -10.6 16.8 23.3 2.1 -23.2 10.6 23.0 48.3 62 Nonfinancial corporations 2.7 -.1 -7.8 12.9 -11.5 11.4 18.8 .9 -23.8 7.0 15.8 38.2 63 Financial corporations 2.5 2.5 3.2 2.1 .9 4.1 2.3 .5 1.2 3.8 4.4 4.4 64 Foreign shares purchased in United States .4 -.5 .8 2.1 * 1.3 2.2 .7 -.7 -.2 2.9 5.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 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 1983 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997777 11997788 11997799 11998800 11998811 11998822 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to domestic nonfinancial sectors 319.4 369.8 386.0 343.2 377.2 395.3 371.3 392.4 362.0 356.8 434.8 495.2 By public agencies and foreign 2 Total net advances 79.3 102.3 75.2 97.0 97.4 109.3 77.2 113.8 81.0 107.9 110.8 127.5 3 U.S. government securities 34.9 36.1 -6.3 15.7 17.2 17.9 -.8 31.2 3.1 17.7 18.2 52.9 4 Residential mortgages 20.0 25.7 35.8 31.7 23.4 61.1 28.2 21.9 25.0 48.1 74.0 80.7 5 FHLB advances to savings and loans 4.3 12.5 9.2 7.1 16.2 .8 10.3 16.7 15.8 10.4 -8.8 -12.9 6 Other loans and securities 20.2 28.0 36.5 42.4 40.6 29.5 39.4 44.1 37.1 31.7 27.4 6.8 Total advanced, by sector 7 U.S. government 10.0 17.1 19.0 23.7 24.1 16.7 22.2 27.9 20.3 14.2 19.1 8.2 8 Sponsored credit agencies 22.5 40.3 53.0 45.6 48.2 65.3 44.0 47.2 49.2 62.5 68.1 69.2 9 Monetary authorities 7.1 7.0 7.7 4.5 9.2 9.8 -10.3 2.4 16.0 .1 19.5 12.7 10 Foreign 39.6 38.0 -4.6 23.2 16.0 17.6 21.3 36.4 -4.4 31.1 4.1 37.5 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 22.0 37.1 47.9 44.8 47.4 64.9 40.4 45.2 49.6 61.3 68.4 67.9 12 Foreign 13.5 33.8 20.2 27.2 27.2 15.7 26.7 31.9 22.5 12.8 18.6 18.7 Private domestic funds advanced 13 Total net advances 275.6 338.4 379.0 318.2 354.4 366.6 361.2 355.7 353.1 323.0 411.0 454.3 14 U.S. government securities 45.1 54.3 91.1 107.2 115.9 207.9 132.7 100.6 131.1 149.9 265.8 245.3 15 State and local obligations 21.9 28.4 30.3 30.3 21.9 50.5 31.9 21.1 22.6 41.7 59.4 60.9 16 Corporate and foreign bonds 24.1 23.4 18.5 19.3 19.4 15.4 11.8 20.9 17.9 -1.7 32.4 23.4 17 Residential mortgages 81.0 95.6 91.9 73.7 56.7 -3.3 80.5 75.5 37.9 11.7 -17.2 33.7 18 Other mortgages and loans 107.8 149.3 156.3 94.8 156.9 96.8 114.5 154.3 159.5 131.7 62.0 78.1 19 LESS: Federal Home Loan Bank advances 4.3 12.5 9.2 7.1 16.2 .8 10.3 16.7 15.8 10.4 -8.8 -12.9 Private financial intermediation 20 Credit market funds advanced by private financial institutions 258.8 302.3 294.7 262.3 305.2 271.2 282.8 317.3 293.1 272.8 268.9 351.1 21 Commercial banking 87.8 129.0 123.1 101.1 103.6 108.5 146.5 99.6 107.6 109.7 107.1 127.4 22 Savings institutions 78.5 72.8 56.7 54.9 27.2 30.6 72.9 41.5 12.8 29.5 31.0 128.5 23 Insurance and pension funds 69.0 75.0 66.4 74.4 79.3 94.2 65.6 75.3 83.4 95.4 93.0 107.4 24 Other finance 23.6 25.5 48.5 32.0 95.2 37.9 -2.2 101.0 89.4 38.1 37.8 -12.2 25 Sources of funds 258.8 302.3 294.7 262.3 305.2 271.2 282.8 317.3 293.1 272.8 268.9 351.1 26 Private domestic deposits and RPs 139.0 141.0 142.0 168.6 211.7 173.4 174.2 213.8 209.6 163.4 182.7 210.2 27 Credit market borrowing 23.8 37.5 34.6 18.5 38.0 4.4 23.6 42.2 33.8 28.5 -19.7 2.9 28 Other sources 96.1 123.8 118.1 75.2 55.5 93.5 85.0 61.3 49.8 80.8 105.9 138.0 29 Foreign funds 1.4 6.5 27.6 -21.7 -8.7 -27.7 -15.3 -8.7 -8.7 -30.1 -25.4 -17.5 30 Treasury balances 4.3 6.8 .4 -2.6 -1.1 6.1 1.0 6.5 -8.7 -2.1 14.1 7.4 31 Insurance and pension reserves 51.4 62.2 49.1 65.4 73.2 85.9 61.3 62.7 83.8 85.4 86.4 89.3 32 Other, net 39.0 48.4 41.0 34.0 -7.9 29.2 38.0 .8 -16.7 27.6 30.7 58.8 Private domestic nonfinancial investors 33 Direct lending in credit markets 40.6 73.6 118.9 74.4 87.2 99.7 102.0 80.6 93.8 78.7 122.4 106.1 34 U.S. government securities 24.6 36.3 61.4 38.3 47.4 58.1 58.6 37.2 57.6 43.1 72.7 75.0 35 State and local obligations -.8 3.6 9.9 7.0 9.6 30.9 9.2 9.5 9.7 28.4 33.4 47.1 36 Corporate and foreign bonds -3.2 -1.8 5.7 .6 -8.9 -9.4 -.2 -5.5 -12.4 -26.3 7.4 -12.7 37 Open market paper 9.6 15.6 12.1 -4.3 3.7 -2.0 1.4 -3.3 10.7 6.7 -10.7 -10.2 38 Other 10.4 19.9 29.8 32.9 35.4 22.1 32.9 42.7 28.2 26.8 19.6 6.9 39 Deposits and currency 148.6 152.2 151.4 180.0 221.7 179.4 185.5 222.6 220.7 166.2 192.1 231.9 40 Currency 8.3 9.3 7.9 10.3 9.5 8.4 9.7 8.0 11.0 4.5 12.3 14.2 41 Checkable deposits 17.2 16.2 18.7 5.0 18.1 13.0 9.9 29.8 6.5 6.7 19.1 55.6 42 Small time and savings accounts 93.6 65.9 59.2 83.1 47.2 137.0 90.2 30.7 63.6 95.1 178.6 295.0 43 Money market fund shares .2 6.9 34.4 29.2 107.5 24.7 -3.4 104.1 110.8 39.4 10.0 -84.0 44 Large time deposits 25.7 44.4 23.0 44.7 36.4 -5.2 69.8 41.6 31.2 21.2 -31.6 -67.5 45 Security RPs 2.2 7.5 6.6 6.5 2.5 3.8 7.8 7.7 -2.6 1.1 6.6 11.0 46 Deposits in foreign countries 1.3 2.0 1.5 1.1 .5 -2.4 1.7 .8 .2 -1.8 -2.9 7.4 47 Total of credit market instruments, deposits and currency 189.1 225.8 270.3 254.4 308.9 279.1 287.5 303.3 314.5 244.9 314.5 337.9 48 Public holdings as percent of total 23.8 25.3 18.5 26.2 24.1 26.6 19.4 26.8 21.1 29.2 24.4 24.8 49 Private financial intermediation (in percent) 93.9 89.3 77.7 82.4 86.1 74.0 78.3 89.2 83.0 84.4 65.4 77.3 50 Total foreign funds 41.0 44.6 23.0 1.5 7.3 -10.2 6.0 27.8 -13.1 1.0 -21.3 20.0 MEMO: Corporate equities not included above 51 Total net issues 6.5 1.9 -3.8 22.2 -3.7 35.4 28.0 10.2 -17.7 23.7 47.0 87.1 52 Mutual fund shares .9 -.1 .1 5.2 6.8 18.6 4.6 8.1 5.6 13.2 24.0 38.8 53 Other equities 5.6 1.9 -3.9 17.1 -10.6 16.8 23.3 2.1 -23.2 10.6 23.0 48.3 54 Acquisitions by financial institutions 7.4 4.5 9.7 16.8 22.1 27.9 22.3 25.3 18.9 19.3 36.4 62.4 55 Other net purchases -.9 -2.7 -13.5 5.4 -25.9 7.5 5.7 -15.1 -36.6 4.4 10.6 24.7 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line 1 of table 1.58. 33. Line 12 less line 20 plus line 27. 2. Sum of lines 3-6 or 7-10. 34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes 6. Includes farm and commercial mortgages. mortgages. 11. Credit market funds raised by federally sponsored credit agencies, and net 40. Mainly an offset to line 9. issues of federally related mortgage pool securities. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also 48. Line 2/line 1. sum of lines 28 and 47 less lines 40 and 46. 49. Line 20/line 13. 18. Includes farm and commercial mortgages. 50. Sum of lines 10 and 29. 26. Line 39 less lines 40 and 46. 51. 53. Includes issues by financial institutions. 27. Excludes equity issues and investment company shares. Includes line 19. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates. outstanding, may be obtained from Flow of Funds Section, Division of Research 30. Demand deposits at commercial banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 31. Excludes net investment of these reserves in corporate equities. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • December 1983 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1983 MMeeaassuurree 11998800 11998811 11998822 Mar. Apr. May June July Aug. Sept. Oct. Nov. 1 Industrial production1 147.0 151.0 138.6 140.0 142.6 144.4 146.4 149.7 151.8' 153.9' 155.1' 156.3 Market groupings 2 Products, total 146.7 150.6 141.8 141.6 144.5 146.2 148.1 150.9 153.2' 154.9' 155.9' 156.9 3 Final, total 145.3 149.5 141.5 139.9 142.8 144.5 146.4 149.0 150.7' 152.1' 153.3' 154.2 4 Consumer goods 145.4 147.9 142.6 144.3 147.7 150.4 152.4 154.8 156.3' 157.4' 158.0' 158.3 5 Equipment 145.2 151.5 139.8 133.8 136.2 136.5 138.2 141.0 143.1' 144.9' 146.9' 148.7 6 Intermediate 151.9 154.4 143.3 147.8 150.8 152.2 154.5 158.1 162.2' 165.3' 165.7' 166.7 7 Materials 147.6 151.6 133.7 137.6 139.7 141.7 143.7 147.8 149.7' 152.3' 153.8' 155.3 Industry groupings 8 Manufacturing 146.7 150.4 137.6 140.4 143.1 145.1 147.4 150.6 152.8' 155.1' 156.3' 157.5 Capacity utilization (percent)1-2 9 Manufacturing 79.6 79.4 71.1 71.6 72.9 73.8 74.9 76.4 77.3' 78.4' 78.9' 79.4 10 Industrial materials industries 80.4 80.7 70.1 71.5 72.5 73.5 74.4 76.5 77.4' 78.7' 79.4' 80.0 11 Construction contracts (1977 = 100)3 107.0 111.0 111.0 131.0 129.0 148.0 151.0 137.0 146.0 143.0 139.0 n.a. 12 Nonagricultural employment, total4 137.4 138.5 136.2 135.0 135.4 135.9 136.5 137.0 136.4 138.1' 138.4 138.9 13 Goods-producing, total 110.1 109.4 102.6 98.8 99.4 100.2 100.9 101.8 102.2 102.7 103.7 104.3 14 Manufacturing, total 104.3 103.7 96.9 93.9 94.5 95.1 95.6 96.3 96.6 97.(K 98.0' 98.6 15 Manufacturing, production-worker ... 99.3 98.0 89.4 86.1 86.9 87.6 88.2 89.2 89.5 89.9 91.2' 91.9 16 Service-producing 152.4 154.4 154.7 154.8 155.2 155.5 156.1 156.3 155.1 157.5' 157.4 157.9 17 Personal income, total 343.7 386.5 409.3 423.8 426.8' 431.6 433.7 436.0' 437.6' 442.2' 447.4 n.a. 18 Wages and salary disbursements 317.7 349.7 367.2 378.6 382.2 386.9 389.0 391.9 393.6 396.3' 400.9 n.a. 19 Manufacturing 264.4 287.3 286.2 289.3 293.4 296.4 299.2 302.6 304.6' 308. (K 309.9 n.a. 20 Disposable personal income5 333.8 373.7 397.3 413.7 417.4 420.5 422.0 428.9 430.1 434.9 439.9 n.a. 21 Retail sales" 303.8 330.6 326.0 356.4 364.7 376.1 378.9 380.3 373.7 387.7 382.8 n.a. Prices7 22 Consumer 246.8 272.4 289.1 293.4 295.5 297.1 298.1 299.3 300.3 301.8 302.6 n.a. 23 Producer finished goods 247.0 269.8 280.7 283.4 283.0 284.3 285.0 285.7 286.2 285.1 287.9 n.a. 1. The capacity utilization series has been revised back to January 1967. 6. Based on Bureau of Census data published in Survey of Current Business. 2. Ratios of indexes of production to indexes of capacity. Based on data from 7. Data without seasonal adjustment, as published in Monthly Labor Review. Federal Reserve, McGraw-Hill Economics Department, Department of Com- Seasonally adjusted data for changes in the price indexes may be obtained from merce, and other sources. the Bureau of Labor Statistics, U.S. Department of Labor. 3. Index of dollar value of total construction contracts, including residential, nonresidential and heavy engineering, from McGraw-Hill Information Systems NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6, Company, F. W. Dodge Division. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 4. Based on data in Employment and Earnings (U.S. Department of Labor). of Current Business. Series covers employees only, excluding personnel in the Armed Forces. Figures for industrial production for the last two months are preliminary and 5. Based on data in Survey of Current Business (U.S. Department of Com- estimated, respectively. merce). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1982 1983 1982 1983 1982 1983 Q4 QI Q2 Q3' Q4 QI Q2' Q3 Q4 Ql Q2 Q3' Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 135.3 138.5 144.5 151.8 193.7 194.6 195.5 196.4 69.8 71.2 73.9 77.3 2 Mining 117.0 116.7 112.3 116.0 165.1 165.2 165.3 165.4 70.9 70.6 67.9 70.1 3 Utilities 166.2 163.6 169.6 178.2 207.4 208.5 209.8 211.1 80.1 78.5 80.8 84.4 4 Manufacturing 134.5 138.4 145.2 152.8 194.8 195.7 196.6 197.5 69.0 70.7 73.8 77.4 5 Primary processing 129.3 137.0 145.2 153.0 193.7 194.3 194.8 195.3 66.8 70.5 74.6 78.3 6 Advanced processing 137.3 139.7 145.1 152.7 195.4 196.5 197.6 198.6 70.2 71.1 73.5 76.9 7 Materials 128.7 134.8 141.7 149.9 191.7 192.3 192.9 193.4 67.1 70.1 73.5 77.6 8 Durable goods 117.1 125.2 134.7 144.2 194.8 195.2 195.6 196.0 60.2 64.2 68.9 73.6 9 Metal materials 66.5 78.6 84.9 89.2 140.3 140.2 139.9 139.8 47.4 56.1 60.7 63.9 10 Nondurable goods 157.0 163.7 171.7 179.5 216.9 217.8 218.8 219.6 72.4 75.2 78.5 81.7 11 Textile, paper, and chemical 160.8 169.3 179.6 188.2 228.3 229.4 230.7 231.6 70.5 73.8 77.9 81.2 12 Paper 147.6 149.9 153.4 162.8 164.4 165.3 166.1 166.9 89.7 90.7 92.3 97.5 13 Chemical 191.9 204.7 219.4 228.0 292.8 294.8 296.6 298.3 65.5 69.4 74.0 76.4 14 Energy materials 121.5 122.2 121.5 127.4 153.3 153.9 154.3 154.7 79.2 79.5 78.7 82.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A45 2.11 Continued Previous cycle1 Latest cycle2 1982 1983 High Low High Low Nov. Mar. Apr. May June July Aug/ Sept/ Oct/ Nov. Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 76.5 70.1 71.8 73.1 73.9 74.8 76.3 77.3 78.3 78.7 79.2 16 Mining 91.8 86.0 88.5 84.0 70.3 68.1 67.5 68.2 68.1 69.5 70.2 70.6 71.7 72.8 17 Utilities 94.9 82.0 86.7 83.8 81.0 79.4 80.9 80.9 80.8 83.5 85.0 84.8 83.9 84.2 18 Manufacturing 87.9 69.0 87.5 75.5 69.4 71.6 72.9 73.8 74.9 76.4 77.3 78.4 78.9 79.4 19 Primary processing 93.7 68.2 91.4 72.6 67.6 72.1 73.4 74.6 75.7 77.1 78.1 79.9 80.4 80.9 20 Advanced processing 85.5 69.4 85.9 77.0 70.3 71.5 72.5 73.4 74.4 76.0 76.9 77.7 78.0 78.6 21 Materials 92.6 69.3 88.9 74.2 67.9 71.5 72.5 73.5 74.4 76.5 77.4 78.7 79.4 80.0 22 Durable goods 91.4 63.5 88.4 68.4 60.9 66.0 67.7 68.9 70.0 72.1 73.6 75.1 76.2 76.9 23 Metal materials 97.8 68.0 95.4 59.4 49.3 58.8 59.9 61.0 61.2 62.3 64.0 65.3 68.5 69.7 24 Nondurable goods 94.4 67.4 91.7 77.5 73.1 76.8 77.2 78.7 79.6 80.7 81.1 83.4 83.9 84.5 25 Textile, paper, and chemical 95.1 65.4 92.3 75.5 70.9 75.8 76.4 78.1 79.2 80.4 80.5 82.7 83.2 83.9 26 Paper 99.4 72.4 97.9 89.8 90.7 90.3 91.0 92.9 93.1 96.7 96.9 98.9 n.a. n.a. 27 Chemical 95.5 64.2 91.3 70.7 65.7 71.9 72.6 74.0 75.3 75.9 75.5 78.0 n.a. n.a. 28 Energy materials 94.5 84.4 88.7 84.4 80.0 79.2 78.9 78.5 78.8 82.6 82.8 81.5 81.2 81.6 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July through October 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1983 CCaatteeggoorryy 11998800 11998811 11998822 May June July Aug. Sept. Oct. Nov. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 169,847 172,272 174,451 176,151 176,320 176,498 176,648 176,811 176,990 196,951 2 Labor force (including Armed Forces)1 109,042 110,812 112,384 112,947 114,127 114,067 114,469 114,577 114,026 134,036 3 Civilian labor force 106,940 108,670 110,204 110,749 111,932 111,875 111122,,226611 112,368 111111,,881155 112,036 Employment 4 Nonagricultural industries2 95,938 97,030 96,125 96,190 97,264 97,758 98,074 98,655 98,726 99,440 5 Agriculture 3,364 3,368 3,401 3,367 3,522 3,527 3,489 3,290 3,202 3,232 Unemployment 6 Number 7,637 8,273 10,678 11,192 11,146 10,590 10,699 10,423 9,886 9,364 7 Rate (percent of civilian labor force)... 7.1 7.6 9.7 10.1 10.0 9.5 9.5 9.3 8.8 8.4 8 Not in labor force 60,805 61,460 62,067 63,204 62,193 62,431 62,179 62,234 62,964 62,915 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 90,406 91,156 89,596 89,421 89,844 90,152 89,735 90,851' 91,055' 91,425 10 Manufacturing 20,285 20,170 18,853 18,493 18,582 18,733 18,793 18,871' 19,06c 19,174 11 Mining 1,027 1,132 1,122 994 1,003 1,017 1,023 1,026' 1,043' 1,036 12 Contract construction 4,346 4,176 3,912 3,860 3,933 3,974 4,014 4,038' 4,061' 4,099 13 Transportation and public utilities 5,146 5,157 5,057 4,993 4,992 4,984 4,341 5,031' 5,020' 5,018 14 Trade 20,310 20,551 20,547 20,356 20,494 20,529 20,580 20,612' 20,656' 20,665 15 Finance 5,160 5,301 5,350 5,435 5,451 5,465 5,488 5,499' 5,504' 5,522 16 Service 17,890 20,547 20,401 19,546 19,668 19,770 19,835 19,913' 19,972' 20,121 17 Government 16,241 16,024 15,784 15,744 15,721 15,680 15,661 15,861' 15,739' 15,790 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 1983 ment of Labor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • December 1983 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1983 Grouping p p o ro r- - a 1 v 98 g 2 . tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug/ Sept. Oct.P Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 138.6 134.9 135.2 137.4 138.1 140.0 142.6 144.4 146.4 149.7 151.8 153.9 155.1 2 Products 60.71 141.8 139.0 139.9 140.9 140.3 141.6 144.5 146.2 148.1 150.9 153.2 154.9 155.9 3 Final products 47.82 141.5 138.3 139.5 140.1 138.9 139.9 142.8 144.5 146.4 149.0 150.7 152.1 153.3 4 Consumer goods 27.68 142.6 141.3 142.0 143.6 143.4 144.3 147.7 150.4 152.4 154.8 156.3 157.4 158.0 5 Equipment 20.14 139.8 134.2 136.1 135.3 132.7 133.8 136.2 136.5 138.2 141.0 143.1 144.9 146.9 6 Intermediate products 12.89 143.3 141.8 141.5 143.7 145.3 147.8 150.8 152.2 154.5 158.1 162.2 165.3 165.7 7 Materials 39.29 133.7 128.4 127.8 132.0 134.9 137.6 139.7 141.7 143.7 147.8 149.7 152.3 153.8 Consumer goods 8 Durable consumer goods 7.89 129.2 124.6 125.9 131.6 134.4 136.3 140.5 145.5 149.2 152.9 154.2 157.4 156.7 9 Automotive products 2.83 129.5 120.7 128.7 136.2 144.3 142.6 144.9 152.2 160.0 167.0 168.1 172.9 170.9 10 Autos and utility vehicles 2.03 99.0 86.9 99.0 107.0 120.8 116.4 117.8 124.9 135.4 145.4 147.0 153.1 149.2 11 Autos 1.90 86.6 77.7 87.9 97.1 107.3 99.9 102.7 107.4 118.3 129.8 132.0 135.0 129.6 12 Auto parts and allied goods. . . . .80 206.9 206.6 204.0 210.2 203.9 209.3 213.6 221.5 222.6 221.9 221.8 223.1 226.0 13 Home goods 5.06 129.1 126.8 124.3 129.1 128.8 132.8 138.1 141.8 143.2 144.9 146.4 148.7 148.8 14 Appliances, A/C, and TV 1.40 102.6 104.8 94.2 109.5 105.8 105.0 106.1 112.8 114.4 116.2 121.2 125.2 126.6 15 Appliances and TV 1.33 104.6 108.4 98.3 112.9 108.8 108.5 109.7 116.1 118.4 119.7 125.0 129.7 130.6 16 Carpeting and furniture 1.07 149.7 151.4 150.8 149.0 156.7 168.3 180.5 181.9 185.6 187.3 187.5 186.3 186.1 17 Miscellaneous home goods 2.59 135.0 128.6 129.8 131.4 129.7 133.3 137.9 140.9 141.3 143.0 143.2 145.9 145.4 18 Nondurable consumer goods 19.79 148.0 147.9 148.4 148.3 147.0 147.5 150.5 152.3 153.6 155.6 157.1 157.5 158.5 19 Clothing 4 29 20 Consumer staples 15.50 159.0 158.1 158.8 158.6 157.4 158.1 161.1 162.8 164.3 166.1 168.0 168.0 169.1 21 Consumer foods and tobacco .. 8.33 149.7 149.0 149.5 150.9 149.5 148.4 150.9 153.2 155.9 156.6 156.3 154.9 22 Nonfood staples 7.17 169.7 168.7 169,6 167.6 166.5 169.4 172.9 174.0 174.1 177.2 181.6 183.2 183.5 23 Consumer chemical products 2.63 219.9 218.9 220.9 222.6 220.9 225.6 225.5 227.8 229.0 233.8 239.7 241.5 242.4 24 Consumer paper products ... 1.92 127.7 125.1 128.3 127.1 127.9 128.1 129.2 128.6 130.1 132.6 137.4 138.2 137.5 25 Consumer energy products .. 2.62 150.2 150.2 148.4 142.2 140.2 143.3 152.2 153.4 151.2 153.2 155.7 157.7 158.1 26 Residential utilities 1.45 170.8 171.5 169.3 164.1 162.9 166.1 175.5 174.3 170.5 173.2 179.9 182.8 Equipment 27 Business 12.63 157.9 146.4 148.1 146.6 142.7 143.7 146.9 147.7 150.2 153.3 156.6 158.8 161.1 28 Industrial 6.77 134.9 117.2 117.9 118.4 113.7 113.1 113.5 114.5 116.3 119.9 124.3 125.6 127.7 29 Building and mining 1.44 214.2 165.7 171.9 173.8 153.6 145.3 141.8 146.2 148.7 154.4 159.2 160.8 168.4 30 Manufacturing 3.85 107.2 97.5 97.0 97.6 97.9 99.7 101.7 102.5 105.0 108.9 113.3 115.0 115.9 31 Power 1.47 129.9 121.0 119.7 118.3 116.0 116.2 116.6 115.0 114.1 114.6 119.0 118.8 118.7 32 Commercial transit, farm 5.86 184.4 180.2 183.0 179.2 176.1 179.2 185.4 186.1 189.5 191.9 194.0 196.7 199.6 33 Commercial 3.26 253.5 254.8 258.6 254.9 251.2 255.7 264.3 265.0 270.9 276.0 277.4 281.2 284.2 34 Transit 1.93 103.9 92.3 96.2 90.8 88.2 90.1 92.0 92.6 93.2 92.0 95.9 97.6 100.8 35 Farm .67 80.5 70.7 65.1 66.0 63.4 63.4 70.2 71.3 70.4 70.8 70.8 71.0 72.7 36 Defense and space 7.51 109.4 113.6 115.9 116.4 116.1 117.0 118.2 117.6 118.0 120.4 120.2 121.8 123.1 Intermediate products 37 Construction supplies 6.42 124.3 123.4 123.0 127.0 129.7 133.1 136.4 138.4 142.1 145.8 149.0 151.1 151.9 38 Business supplies 6.47 162.1 160.1 159.8 160.3 160.9 162.3 165.2 166.0 166.8 170.4 175.3 179.3 179.4 39 Commercial energy products 1.14 181.1 182.4 182.4 180.6 178.6 180.3 183.3 183.1 181.4 185.2 186.9 190.2 187.7 Materials 40 Durable goods materials 20.35 125.0 116.4 116.5 121.5 125.3 128.7 132.4 134.7 137.0 141.1 144.2 147.2 149.4 41 Durable consumer parts 4.58 95.3 90.0 91.1 96.2 101.6 104.0 106.5 108.5 109.5 115.6 119.9 123.1 123.9 42 Equipment parts 5.44 166.8 155.1 155.3 157.5 158.8 162.5 167.2 170.6 175.8 180.8 183.6 186.0 189.1 43 Durable materials n.e.c 10.34 116.2 107.7 107.4 113.8 118.2 121.9 125.4 127.5 128.7 131.5 134.2 137.4 139.9 44 Basic metal materials 5.57 79.9 69.1 68.7 78.1 82.4 86.0 87.8 89.3 89.6 90.8 93.1 94.5 98.4 45 Nondurable goods materials 10.47 157.5 157.3 155.6 159.7 164.0 167.5 168.7 172.1 174.3 177.0 178.0 183.4 184.8 46 Textile, paper, and chemical materials 7.62 161.1 161.0 160.0 163.7 170.0 174.3 175.9 180.2 182.8 186.1 186.4 192.0 193.5 47 Textile materials 1.85 102.2 102.5 102.1 104.7 106.4 110.6 110.6 114.6 116.0 119.0 121.5 123.1 125.4 48 Paper materials 1.62 145.6 149.7 144.1 150.1 150.1 149.5 150.8 154.4 155.0 161.1 161.8 165.4 166.9 49 Chemical materials 4.15 193.5 191.6 192.0 195.4 206.2 212.5 214.9 219.6 223.6 225.9 225.1 233.1 234.3 50 Containers, nondurable 1.70 161.4 160.8 155.2 162.1 159.6 163.8 163.2 164.3 166.1 166.5 170.6 179.1 180.5 51 Nondurable materials n.e.c 1.14 127.9 127.4 127.2 129.6 130.5 127.7 129.1 129.7 129.9 131.3 133.0 132.6 133.6 52 Energy materials 8.48 125.1 121.4 120.4 123.0 121.8 121.9 121.6 121.1 121.8 127.7 128.0 126.4 125.9 53 Primary energy 4.65 116.0 113.7 113.5 116.5 115.4 114.4 113.9 113.8 112.6 115.4 113.9 112.8 113.5 54 Converted fuel materials 3.82 136.3 130.8 128.9 130.8 129.6 131.1 131.0 129.9 132.9 142.7 145.2 142.8 141.1 Supplementary groups 55 Home goods and clothing 9.35 119.6 119.6 118.2 120.8 119.9 122.0 126.3 129.2 130.2 132.3 133.3 135.2 135.6 56 Energy, total 12.23 135.7 133.3 132.2 132.4 131.0 131.9 133.9 133.8 133.6 138.5 139.4 139.0 138.6 57 Products 3.76 159.6 160.0 158.7 153.8 151.9 154.5 161.7 162.4 160.4 162.9 165.2 167.5 167.1 58 Materials 8.48 125.1 121.4 120.4 123.0 121.8 121.9 121.6 121.1 121.8 127.7 128.0 126.4 125.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1982 1983 SIC pro- 1982 Grouping code por- avg. tion Nov. Dec. Jan. Feb/ Mar. Apr. May June July Aug/ Sept. Oct.P Nov/ Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 146.3 140.4 140.1 141.3 137.5 137.7 138.9 139.7 139.6 143.8 146.0 146.3 146.7 148.1 2 Mining 6.36 126.1 116.8 118.4 121.9 115.6 112.6 111.6 112.8 112.6 115.0 116.1 116.8 118.7 120.5 3 Utilities 5.69 168.7 166.7 164.2 163.1 162.0 165.8 169.3 169.7 169.8 176.0 179.3 179.3 177.9 178.9 4 Electric 3.88 190.5 188.3 185.6 184.4 183.0 188.2 192.7 192.9 192.0 200.9 205.4 204.5 202.8 204.1 5 Manufacturing 87.95 137.6 134.0 134.5 136.7 138.2 140.4 143.1 145.1 147.4 150.6 152.8 155.1 156.3 157.5 6 Nondurable 35.97 156.2 155.3 155.6 157.4 159.0 160.7 163.3 165.4 167.8 170.6 172.9 174.8 175.9 176.7 7 Durable 51.98 124.7 119.3 119.9 122.5 123.9 126.3 129.1 131.0 133.2 136.8 138.8 141.5 142.8 144.1 Mining 8 Metal 10 .51 82.4 70.4 74.9 81.7 75.1 75.2 79.8 84.4 82.9 82.5 80.9 77.0 83.2 9 Coal 11.12 .69 142.7 134.1 129.7 144.8 136.5 127.3 125.3 125.6 124.6 139.9 141.2 140.5 142.7 144.8 10 Oil and gas extraction 13 4.40 131.1 120.3 122.9 124.6 117.0 114.4 112.2 112.5 112.6 113.9 114.7 116.1 117.2 119.1 11 Stone and earth minerals 14 .75 112.1 111.9 111.7 112.8 115.7 114.0 117.7 122.5 121.7 121.2 125.0 126.5 129.5 Nondurable manufactures 12 Foods 20 8.75 151.1 152.0 152.8 154.4 153.0 152.0 153.7 155.6 157.7 159.9 159.3 158.2 13 Tobacco products 21 .67 118.0 113.0 109.9 104.7 108.5 113.4 114.8 112.9 120.0 112.9 117.1 111.2 14 Textile mill products 22 2.68 124.5 123.1 122.2 125.8 130.7 131.9 136.6 139.6 141.8 146.7 147.4 148.7 149.2 15 Apparel products 23 3 31 16 Paper and products 26 3.21 150.8 154.5 151.1 158.8 155.6 156.3 157.0 161.5 163.0 165.1 168.6 170.4 171.8 173.5 17 Printing and publishing 27 4.72 144.1 141.7 142.8 141.3 144.0 145.9 145.7 145.2 147.4 152.0 157.8 161.2 162.1 164.0 18 Chemicals and products 28 7.74 196.1 192.8 195.9 197.6 202.3 205.7 208.5 211.0 214.7 218.3 220.3 224.2 227.3 19 Petroleum products 29 1.79 121.8 120.0 118.7 113.5 111.7 114.8 120.6 123.8 123.0 124.3 123.2 125.1 125.4 124.1 20 Rubber and plastic products 30 2.24 254.7 250.2 249.7 256.2 264.0 272.0 283.0 288.0 293.8 296.1 306.9 316.2 315.1 21 Leather and products 31 .86 60.9 57.7 56.0 59.5 61.7 59.4 58.7 59.6 60.1 62.3 64.4 64.2 63.3 Durable manufactures 22 Ordnance, private and government 19.91 3.64 86.9 91.9 92.5 93.5 93.3 91.9 93.2 92.6 93.3 95.2 96.8 98.0 99.2 100.8 23 Lumber and products 24 1.64 112.6 119.1 121.4 130.0 130.2 128.7 132.1 135.8 137.4 141.3 141.6 142.3 141.0 24 Furniture and fixtures 25 1.37 151.9 152.4 153.7 150.0 154.0 161.0 167.7 169.6 173.1 175.2 179.0 180.7 182.1 25 Clay, glass, stone products 32 2.74 128.2 127.3 125.4 128.0 131.8 135.6 138.3 139.2 141.7 145.8 147.9 151.5 151.2 26 Primary metals 33 6.57 75.3 63.6 63.5 73.1 77.9 81.2 83.1 84.9 84.8 85.5 87.5 90.5 94.7 96.6 27 Iron and steel 331.2 4.21 61.7 47.5 46.6 59.0 64.3 66.9 68.5 69.5 69.7 71.8 75.1 78.2 84.1 28 Fabricated metal products 34 5.93 114.8 107.0 107.3 107.6 110.3 113.9 115.3 115.5 118.5 122.7 126.0 127.4 128.4 129.3 29 Nonelectrical machinery 35 9.15 149.0 139.6 139.2 138.0 136.2 138.6 143.1 146.1 149.5 154.2 157.3 158.2 158.9 160.8 30 Electrical machinery 36 8.05 169.3 165.5 165.5 169.5 168.9 173.8 177.2 180.1 182.4 188.3 189.2 195.6 197.9 199.8 31 Transportation equipment 37 9.27 104.9 100.2 103.7 106.3 109.6 110.1 111.4 113.8 116.6 119.7 121.1 124.7 125.5 126.3 32 Motor vehicles and parts 371 4.50 109.8 101.7 108.8 113.9 123.0 123.2 125.5 130.4 136.2 142.3 144.3 150.9 150.9 152.2 33 Aerospace and miscellaneous transportation equipment... 372-9 4.77 100.4 98.7 98.9 99.1 97.0 97.7 98.1 98.1 98.1 98.5 99.2 100.0 101.5 101.9 34 Instruments 38 2.11 161.9 155.8 155.2 154.5 153.4 154.0 155.1 156.0 156.1 159.3 161.6 162.9 162.7 163.2 35 Miscellaneous manufactures 39 1.51 137.0 129.5 128.2 131.3 133.9 136.9 145.0 149.0 151.0 153.7 153.1 151.7 150.9 153.1 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 579.6 568.4 572.9 578.1 578.4 584.1 592.6 601.8 610.5 620.5 626.6 634.5 640.8 643.9 37 Final 390.9 451.1 441.3 445.8 448.3 447.3 451.3 457.7 465.6 471.8 478.2 481.8 487.3 493.2 495.2 38 Consumer goods . 277.5 308.0 305.6 306.8 310.9 312.0 313.8 318.8 325.6 330.4 333.7 336.7 339.2 342.5 342.8 39 Equipment 113.4 143.1 135.7 138.9 137.4 135.3 137.5 138.9 140.0 141.4 144.5 145.1 148.1 150.7 152.4 40 Intermediate 116.6 128.5 127.1 127.1 129.8 131.1 132.8 134.9 136.2 138.7 142.3 144.8 147.2 147.6 148.7 1. 1972 dollar value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • December 1983 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1982 1983 IItteemm 11998800 11998811 11998822 Dec. Feb. Mar. Apr. May June July Aug.' Sept.' Oct. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,191 986 1,001 1,326 1,479 1,467 1,536 1,635 1,761 1,782 1,652 1,506 1,565 2 1-family 710 564 546 753 835 859 841 940 1,013 920 874 837 865 3 2-or-more-family 480 421 454 573 644 608 695 695 748 862 778 669 700 4 Started 1,292 1,084 1,062 1,280 1,784 1,605 1,506 1,807 1,736 1,804r 1,904 1,672 1,608 5 1-family 852 705 663 842 1,103 1,008 1,001 1,183 1,127 1,032r 1,135 1,039 964 6 2-or-more-family 440 379 400 438 681 597 505 624 609 772' 769 633 644 7 Under construction, end of period1 896 682 720 730 796 828 859 900 933 963r 980 995 i 8 1-family 515 382 400 411 455 472 489 518 532 537r 543 546 1 9 2-or-more-family 382 301 320 319 341 356 370 382 400 425' 437 448 10 Completed 1,502 1,266 1,006 1,035 1,138 1,147 1,164 1,353 1,386' 1,432' 1,714 1,476 n.a. 11 1-family 957 818 631 647 709 788 803 851 959' 1,000' 1,047 973 1 12 2-or-more-family 545 447 374 388 429 359 361 502 427r 432' 667 503 \ 13 Mobile homes shipped 222 241 239 243 283 276 291 298 308 299 305 302 Merchant builder activity in 1-family units 14 Number sold 545 436 413 529 593 611 635 665 658' 594' 551 610 660 15 Number for sale, end of period1 342 278 255 251 262 262 266 273 284' 289' 296 299 299 Price (thousands of dollars)2 Median 16 Units sold 64.7 68.8 69.3 71.7 73.8 72.5 74.7 74.5 75.8' 75.2 76.6 80.8 76.1 Average 17 Units sold 76.4 83.1 83.8 86.7 86.8 86.2 87.6 88.8 90.9' 89.2' 91.0 97.0 89.1 EXISTING UNITS (1-family) 18 Number sold 2,974 2,418 1,991 2,260 2,460 2,710 2,730 2,900 2,940 2,790 2,710 2,720 2,590 Price of units sold (thousands of dollars)2 19 Median 62.1 66.1 67.7 67.8 68.2 68.9 68.8 69.2 71.4 71.8 71.5 69.9 70.4 20 Average 72.7 78.0 80.4 80.6 80.3 81.1 81.3 81.7 84.7 84.2 84.7 82.8 83.8 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,712 239,418 232,048 240,207 243,032 241,908 247,360 254,763 264,321 269,586 274,713 276,395 269,509 22 Private 175,700 186,069 180,979 190,768 194,331 194,865 199,462 206,029 214,729 218,508' 221,372 224,028 218,101 23 Residential 87,262 86,567 74,809 86,018 93,568 96,127 101,961 107,494 113,524 118,203' 120,165 120,778 117,132 24 Nonresidential, total 88,438 99,502 106,170 104,750 100,763 98,738 97,501 98,535 101,205 100,305 101,207 103,250 100,969 Buildings 25 Industrial 13,839 17,031 17,346 15,631 14,315 14,263 13,223 13,047 13,136 12,227 14,227 13,166 10,415 26 Commercial 29,940 34,243 37,281 36,934 36,675 35,469 33,619 33,291 35,898 35,871 36,277 36,901 36,818 27 Other 8,654 9,543 10,507 11,784 11,664 11,598 10,770 11,237 10,974 11,250 12,038 12,564 12,644 28 Public utilities and other 36,005 38,685 41,036 40,401 38,109 37,408 39,889 40,960 41,197 40,957 38,665 40,619 41,092 29 Public 55,011 53,346 51,068 49,439 48,701 47,043 47,897 48,734 49,592 51,078 53,341 52,367 51,408 30 Military 1,880 1,966 2,205 2,432 2,421 2,541 2,784 2,255 1,894 2,336 2,155 2,312 2,347 31 Highway 13,770 13,599 13,521 13,048 12,509 11,866 12,900 13,044 12,925 14,091 15,906 15,896 14,611 32 Conservation and development 5,089 5,300 5,029 4,625 4,532 4,894 5,023 4,548 4,853 5,608' 5,210 5,048 6,032 33 Other 34,272 32,481 30,313 29,334 29,239 27,742 27,190 28,887 29,920 29,043' 30,070 29,111 28,418 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 A49 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted C m h o a n ng th e s f e ro a m rli e 1 r 2 Change ( a f t r o a m nn 3 u a m l o ra n t t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm OOOcccttt... 1982 1983 1983 111999888333 11998822 11998833 (((111999666777 OOcctt.. OOcctt.. === 111000000)))111 Dec. Mar. June Sept. June July Aug. Sept. Oct. CONSUMER PRICES2 1 All items 5.1 2.9 .5 .4 5.4 5.3 .2 .4 .4 .5 .4 302.6 2 Food 3.4 2.1 .8 2.8 1.7 1.7 -.3 -.1 .2 .3 .5 292.9 3 Energy items 2.4 .0 10.2 -25.1 21.0 7.1 .3 .3 .7 .7 -.4 425.1 4 All items less food and energy 5.9 3.7 -.3 4.4 3.9 6.2 .3 .6 .5 .5 .5 291.8 5 Commodities 5.6 4.9 5.4 5.7 2.9 7.1 .4 .7 .5 .6 .6 247.6 6 Services 6.1 2.7 -4.8 3.7 4.6 5.3 .3 .4 .4 .4 .5 343.3 PRODUCER PRICES 7 Finished goods 3.6 1.3 5.2 -4.7 3.(K 2.5' .5 .1 .4 .2 .3 287.9 8 Consumer foods 1.5 2.6 .8 4.1 .CV- 1.5' -.6 -.7' .4 .7 1.1 264.3 9 Consumer energy -.2 -6.0 7.0 -35.5 ll.4' 3.7' 3.1' .4' .3 .3 -.1 789.3 10 Other consumer goods 5.3 2.2 7.9 -2.0 3.1' 2.9' .5' .3' .2 .1 .0 242.0 11 Capital equipment 4.3 2.7 3.6 2.0 1.7' 2.5' .3' .2' .7 -.3 .3 290.9 12 Intermediate materials3 .3 1.6 1.5 -4.7 3.2' 5.3' .4' .4 .5 .4 320.4 13 Excluding energy .7 2.4 1.0 .8 2.9' 4.0' .4 .3 .4 .3 .2 297.0 Crude materials 14 Foods -3.8 7.4 1.3 18.1 .8 5.9 -1.6 -2.6 3.9 .2 .2 253.9 15 Energy 3.7 -4.4 6.4 -9.2 -5.1' -1.5' .(V -.5' -.2 .3 -1.0 780.0 16 Other -10.7 11.6 -8.0 -16.2 61.9r 20.2' 4.6' 1.8' 1.0 1.8 -.3 256.9 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

A50 Domestic Nonfinancial Statistics • December 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 Q3 Q4 QI Q2 Q3 GROSS NATIONAL PRODUCT 1 Total 2,631.7 2,954.1 3,073.0 3,090.7 3,109.6 3,171.5 3,272.0 3,360.3 By source 2 Personal consumption expenditures 1,668.1 1,857.2 1,991.9 2,008.8 2,046.9 2,073.0 2,147.0 2,182.9 3 Durable goods 214.7 236.1 244.5 243.4 252.1 258.5 277.7 284.5 4 Nondurable goods 668.8 733.9 761.0 766.6 773.0 777.1 799.6 814.8 5 Services 784.5 887.1 986.4 998.9 1,021.8 1,037.4 1,069.7 1,083.6 6 Gross private domestic investment 401.9 474.9 414.5 425.3 377.4 404.1 450.1 498.2 7 Fixed investment 411.7 456.5 439.1 430.2 433.8 443.5 464.6 489.5 8 Nonresidential 308.8 352.2 348.3 342.3 337.0 332.1 336.3 349.6 9 Structures 110.9 133.4 141.9 140.0 138.6 132.9 127.4 130.1 10 Producers' durable equipment 197.9 218.9 206.4 202.2 198.4 199.3 208.8 219.6 11 Residential structures 102.9 104.3 90.8 87.9 96.8 111.3 128.4 139.9 12 Nonfarm 98.1 99.8 86.0 83.4 91.2 106.7 123.3 134.7 13 Change in business inventories -9.8 18.5 -24.5 -4.9 -56.4 -39.4 -14.5 8.7 14 Nonfarm -4.5 10.9 -23.1 -2.3 -53.7 -39.0 -10.3 18.8 15 Net exports of goods and services 24.0 26.3 17.4 .9 5.6 17.0 -8.5 -20.2 16 Exports 338.8 368.8 347.6 346.0 321.6 326.9 327.1 341.1 17 Imports 314.8 342.5 330.2 345.0 316.1 309.9 335.6 361.3 18 Government purchases of goods and services 537.8 595.7 649.2 655.7 679.7 677.4 683.4 699.4 19 Federal 197.1 229.2 258.7 261.7 279.2 273.5 273.7 278.9 20 State and local 340.8 366.5 390.5 394.0 400.5 404.0 409.7 420.6 By major type of product 21 Final sales, total 2,641.5 2,935.6 3,097.5 3,095.6 3,165.9 3,210.9 3,286.6 3,351.7 22 Goods 1,140.6 1,291.9 1,280.9 1,286.7 1,264.8 1,292.2 1,346.8 1,393.0 23 Durable 477.9 528.0 500.8 518.4 474.0 482.7 536.8 574.2 24 Nondurable 662.7 763.9 780.1 768.3 790.8 809.5 810.0 818.8 25 Services 1,225.2 1,374.2 1,511.2 1,527.2 1,560.5 1,588.4 1,623.4 1,647.3 26 Structures 266.0 288.0 281.0 276.9 284.3 290.9 301.9 319.9 27 Change in business inventories -9.8 18.5 -24.5 -4.9 -56.4 -39.4 -14.5 8.7 28 Durable goods -4.1 3.6 -15.5 6.4 -45.0 -38.2 -8.9 14.2 29 Nondurable goods -5.7 14.9 -9.1 -11.3 -11.4 -1.2 -5.7 -5.5 30 MEMO: Total GNP in 1972 dollars 1,475.0 1,513.8 1,485.4 1,485.7 1,480.7 1,490.1 1,525.1 1,553,6 NATIONAL INCOME 31 Total 2,116.6 2,373.0 2,450.4 2,458.9 2,474.0 2,528.5 2,612.8 2,686.6 32 Compensation of employees 1,599.6 1,769.3 1,865.7 1,879.5 1,889.0 1,923.7 1,968.7 2,011.9 33 Wages and salaries 1,356.6 1,493.2 1,568.1 1,579.8 1,586.0 1,610.6 1,647.1 1,681.6 34 Government and government enterprises 260.3 284.4 306.0 307.7 314.5 319.2 323.3 328.4 35 Other 1,096.4 1,208.8 1,262.1 1,272.1 1,271.5 1,291.5 1,323.8 1,353.2 36 Supplement to wages and salaries 243.0 276.0 297.6 299.7 302.9 313.1 321.6 330.3 37 Employer contributions for social insurance 115.0 132.5 140.9 141.5 142.5 148.8 151.5 153.9 38 Other labor income 128.0 143.5 156.6 158.2 160.4 164.3 170.1 176.4 39 Proprietors' income1 117.5 120.2 109.0 103.6 116.2 120.6 127.2 128.9 40 Business and professional1 95.6 89.7 87.5 87.8 90.2 98.4 106.2 111.1 41 Farm1 21.8 30.5 21.5 15.8 26.0 22.2 21.0 17.8 42 Rental income of persons2 31.5 41.4 49.9 50.9 52.3 54.1 54.8 53.9 43 Corporate profits1 175.4 192.3 164.8 168.5 161.9 181.8 218.2 246.2 44 Profits before tax3 234.6 227.0 174.2 177.3 167.5 169.7 203.3 227.2 45 Inventory valuation adjustment -42.9 -23.6 -8.4 -9.0 -10.3 -1.7 -10.6 -18.6 46 Capital consumption adjustment -16.3 -11.0 -1.1 .1 4.7 13.9 25.6 37.6 47 Net interest 192.6 249.9 261.1 256.4 254.7 248.3 243.8 245.7 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 A51 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 Q3 Q4 Ql Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 2,165.3 2,435.0 2,578.6 2,591.3 2,632.0 2,657.7 2,713.6 2,763.2 2 Wage and salary disbursements 1,356.7 1,493.2 1,568.1 1,579.8 1,586.0 1,610.7 1,648.4 1,682.0 3 Commodity-producing industries 468.1 509.5 509.2 508.9 499.5 508.6 522.2 537.8 4 Manufacturing 354.6 385.3 383.8 384.8 377.4 385.4 397.4 409.1 5 Distributive industries 330.7 361.6 378.8 381.9 383.5 386.4 394.3 399.1 6 Service industries 297.6 337.7 374.1 381.2 388.5 396.4 407.3 416.3 7 Government and government enterprises 260.3 284.4 306.0 307.7 314.5 319.2 324.6 328.8 8 Other labor income 128.0 143.5 156.6 158.2 160.4 164.3 170.1 176.4 9 Proprietors' income1 117.5 120.2 109.0 103.6 116.2 120.6 127.2 128.9 10 Business and professional1 95.6 89.7 87.5 87.8 90.2 98.4 106.2 111.1 11 Farm1 21.8 30.5 21.5 15.8 26.0 22.2 21.0 17.8 12 Rental income of persons2 31.5 41.4 49.9 50.9 52.3 54.1 54.8 53.9 13 Dividends 56.8 62.8 66.4 66.4 67.9 68.8 69.3 70.9 14 Personal interest income 266.0 341.3 366.2 364.8 363.1 357.2 357.1 369.0 15 Transfer payments 297.6 337.2 374.6 380.4 399.0 398.5 405.3 402.7 16 Old-age survivors, disability, and health insurance benefits.... 154.2 182.0 204.5 209.3 216.5 217.4 221.1 223.8 17 LESS: Personal contributions for social insurance 88.7 104.6 112.0 112.7 112.9 116.5 118.6 120.5 18 EQUALS: Personal income 2,165.3 2,435.0 2,578.6 2,591.3 2,632.0 2,657.7 2,713.6 2,763.2 19 LESS: Personal tax and nontax payments 336.5 387.4 402.1 399.8 404.1 401.8 412.6 400.1 20 EQUALS: Disposable personal income 1,828.9 2,047.6 2,176.5 2,191.5 2,227.8 2,255.9 2,301.0 2,363.1 21 LESS: Personal outlays 1,718.7 1,912.4 2,051.1 2,068.4 2,107.0 2,134.2 2,209.5 2,247.6 22 EQUALS: Personal saving 110.2 135.3 125.4 123.0 120.8 121.7 91.5 115.5 MEMO: Per capita (1972 dollars) 23 Gross national product 6,478 6,584 6,399 6,393 6,355 6,382 6,518 6,623 24 Personal consumption expenditures 4,092 4,161 4,179 4,178 4,205 4,226 4,319 4,340 25 Disposable personal income 4,487 4,587 4,567 4,558 4,576 4,599 4,629 4,699 26 Saving rate (percent) 6.0 6.6 5.8 5.6 5.4 5.4 4.0 4.9 GROSS SAVING 27 Gross saving 405.9 483.8 405.8 397.9 351.3 398.5 420.6 452.0 28 Gross private saving 435.4 509.6 521.6 524.9 526.6 541.5 535.0 585.2 29 Personal saving 110.2 135.3 125.4 123.0 120.8 121.7 91.5 115.5 30 Undistributed corporate profits1 32.1 44.8 37.0 38.9 37.5 48.9 70.1 87.2 31 Corporate inventory valuation adjustment -42.9 -23.6 -8.4 -9.0 -10.3 -1.7 -10.6 -18.6 Capital consumption allowances 32 Corporate 179.3 202.9 222.0 224.5 227.7 228.3 229.8 233.1 33 Noncorporate 113.8 126.6 137.2 138.5 140.5 142.6 143.5 149.4 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -30.7 -26.9 -115.8 -127.0 -175.3 -142.9 -114.4 -133.3 36 Federal -61.3 -62.2 -147.1 -158.3 -208.2 -183.3 -166.1 -188.5 37 State and local 30.6 35.3 31.3 31.3 32.9 40.4 51.7 55.3 38 Capital grants received by the United States, net 1.2 1.1 .0 .0 .0 .0 .0 .0 39 Gross investment 408.2 478.9 406.2 400.5 355.5 397.4 417.1 453.0 40 Gross private domestic 401.9 474.9 414.5 425.3 377.4 404.1 450.1 498.2 41 Net foreign 6.3 4.0 -8.3 -24.8 -21.9 -6.7 -33.0 -45.2 42 Statistical discrepancy 2.3 -4.9 .5 2.5 4.2 -1.2 -3.5 1.1 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics • December 1983 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1982 1983 IItteemm ccrreeddiittss oorr ddeebbiittss 11998800 11998811 11998822 Q2 Q3 Q4 QI Q2p 1 Balance on current account 421 4,592 -11,211 11,,443344 --66,,559966 --66,,662211 --33,,558877 --99,,771122 22,,221188 --88,,114433 --55,,554466 --33,,339955 --88,,994422 3 Merchandise trade balance2 -25,544 -28,067 -36,389 --55,,885544 --1133,,007788 --1111,,335544 --88,,881100 --1144,,666611 4 Merchandise exports 224,237 237,019 211,217 5544,,999966 5522,,224411 4488,,334444 4499,,550066 4488,,991133 5 Merchandise imports -249,781 -265,086 -247,606 --6600,,885500 --6655,,331199 --5599,,669988 --5588,,331166 --6633,,557744 6 Military transactions, net -2,286 -1,355 179 220011 5544 --2266 551166 220011 7 Investment income, net3 29,570 33,484 27,304 77,,553366 66,,882211 66,,000088 55,,008899 55,,993333 8 Other service transactions, net 5,738 7,462 5,729 11,,335533 11,,334499 11,,118822 11,,117799 665533 9 Remittances, pensions, and other transfers -2,347 -2,382 -2,621 -702 -656 -661 -608 -640 10 U.S. government grants (excluding military) -4,709 -4,549 -5,413 -1,100 -1,086 -1,770 -953 -1,198 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,140 -5,078 -5,732 -1,489 -2,502 -934 -1,053 -1,126 12 Change in U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 -1,132 -794 -1,949 -787 16 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -16 -1,823 -1,371 -241 -434 -297 -98 -303 15 Reserve position in International Monetary Fund -1,667 -2,491 -2,552 -814 -459 -732 -2,139 -212 16 Foreign currencies -6,472 -861 -1,041 -77 99 -920 1,450 531 17 Change in U.S. private assets abroad (increase, -)3 -72,757 -100,348 -107,348 -38,313 -22,803 -16,670 -19,859 -259 18 Bank-reported claims -46,838 -83,851 -109,346 -38,653 -20,631 -17.511 -15,935 3,547 19 Nonbank-reported claims -3,174 -1,181 6,976 -277 998 2,337 -2,374 n.a. 20 U.S. purchase of foreign securities, net -3,524 -5,636 -7,986 -546 -3,331 -3,527 -1,808 -3,222 21 U.S. direct investments abroad, net3 -19,221 -9,680 3,008 1,163 161 2,031 258 -584 22 Change in foreign official assets in the United States (increase, +) 15,566 5,430 3,172 1,930 2,642 1,661 49 2,686 23 U.S. Treasury securities 9,708 4,983 5,759 -2,094 4,834 4,346 3,008 2,012 24 Other U.S. government obligations 2,187 1,289 -670 258 -71 -556 -371 -164 25 Other U.S. government liabilities4 685 -28 504 459 -160 130 -270 332 26 Other U.S. liabilities reported by U.S. banks -159 -3,479 -2,054 3,271 -1,911 -1,717 -1,939 1,333 27 Other foreign official assets5 3,145 2,665 -367 36 -50 -542 -379 -827 28 Change in foreign private assets in the United States (increase, +)3 39,356 75,248 84,693 29,683 14,971 9,856 16,404 8,016 29 U.S. bank-reported liabilities 10,743 42,154 64,263 24,778 10,977 2,823 10,588 1,128 30 U.S. nonbank-reported liabilities 6,845 942 -3,104 -2,517 -425 20 -2,136 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,645 2,982 7,004 2,095 1,364 2,257 2,912 2,934 32 Foreign purchases of other U.S. securities, net 5,457 7,171 6,141 2,434 420 1,975 2,986 2,464 33 Foreign direct investments in the United States, net3 13,666 21,998 10,390 2,893 2,635 2,781 2,054 1,490 34 Allocation of SDRs 1,152 1,093 0 0 00 0 0 0 35 Discrepancy 29,556 24,238 41,390 7,887 1155,,008822 14,657 8,833 379 881 --11,,119900 1,042 -212 801 37 Statistical discrepancy in recorded data before seasonal adjustment 29,556 24,238 41,390 7,006 1166,,227722 13,615 9,045 -422 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 -1,132 -794 -1,949 -787 16 39 Foreign official assets in the United States (increase, +) 14,881 5,458 2,668 1,471 2,802 1,531 319 2,354 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 12,769 13,581 7,420 3,024 368 -1,162 -1,397 -3,349 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 756 680 644 125 267 158 42 30 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 (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve and Official Assets A53 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1983 IItteemm 11998800 11998811 11998822 Apr. May June July Aug. Sept. Oct. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 220,626 233,677 212,193 16,074 15,566 17,008 16,629 16,630 17,387 16,951 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 244,871 261,305 243,952 19,771 21,514 21,024 21,950 22,782 22,175 24,763 3 Trade balance -24,245 -27,628 -31,759 -3,697 -5,948 -4,016 -5,321 -6,152 -4,788 -7,812 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 (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 1983 TTyyppee 11998800 11998811 11998822 May June July Aug. Sept. Oct. Nov. 1 Total 26,756 30,075 33,958 33,931 33,876 33,373 32,624 33,066 33,273 33,655 2 Gold stock, including Exchange Stabilization Fund1 11,160 11,151 11,148 11,132 11,131 11,131 11,128 11,128 11,126 11,123 3 Special drawing rights2-3 2,610 4,095 5,250 5,525 5,478 5,496 5,543 5,628 5,641 5,735 4 Reserve position in International Monetary Fund2 2,852 5,055 7,348 9,424 9,413 9,475 9,296 9,399 9,554 9,883 5 Foreign currencies4'5 10,134 9,774 10,212 7,850 7,854 7,271 6,657 6,911 6,952 6,914 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 1983 AAsssseettss 11998800 11998811 11998822 May June July Aug. Sept. Oct. Nov. 1 Deposits 411 505 328 445 279 369 248 297 339 360 Assets held in custody 2 U.S. Treasury securities1 102,417 104,680 112,544 115,401 114,499 118,105 113,476 113,498 116,327 116,398 3 Earmarked gold2 14,965 14,804 14,716 14,727 14,724 14,727 14,693 14,621 14,550 14,475 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 interna- 2. Earmarked gold is valued at $42.22 per fine troy ounce. tional 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

A54 International Statistics • December 1983 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1983 Mar. Apr. May June July Aug. Sept.? All foreign countries 1 Total, all currencies 401,135 462,847 469,432 465,417 453,296 452,253 465,772 455,802' 452,320 460,233 2 Claims on United States 28,460 63,743 91,768 93,796' 91,262 91,908 97,795 96,915' 99,207 101,314 3 Parent bank 20,202 43,267 61,629 63,342 61,792 62,596 65,826 67,683' 66,860 65,532 4 Other 8,258 20,476 30,139 30,454' 29,470 29,312 31,969 29,232 32,347 35,782 5 Claims on foreigners 354,960 378,954 358,258 352,628' 344,069 342,298 349,834 340,994' 335,040 340,416 6 Other branches of parent bank 77,019 87,821 91,143 89,099 84,839 86,436 88,352 84,869 84,563 89,280 7 Banks 146,448 150,763 133,640 132,321' 127,365 124,055 130,285 123,539 118,844 120,075 8 Public borrowers 28,033 28,197 24,090 24,715 25,114 25,547 25,370 25,876 25,185 24,997 9 Nonbank foreigners 103,460 112,173 109,385 106,493' 106,751 106,260 105,827 106,710' 106,448 106,064 10 Other assets 17,715 20,150 19,406 18,993 17,965 18,047 18,143 17,893' 18,073 18,503 11 Total payable in U.S. dollars 291,798 350,735 361,712 356,726 344,618 343,851 357,405 350,459' 348,335 354,885 12 Claims on United States 27,191 62,142 90,048 91,359' 88,985 89,552 95,518 94,501' 96,718 98,474 13 Parent bank 19,896 42,721 60,973 62,409 61,156 61,797 64,497 66,255' 65,434 63,690 14 Other 7,295 19,421 29,075 28,950' 27,829 27,755 31,021 28,246 31,284 34,784 15 Claims on foreigners 255,391 276,937 259,646 253,762' 245,097 243,896 251,274 245,188 241,343 245,821 16 Other branches of parent bank 58,541 69,398 73,512 70,782 66,337 67,787 69,496 67,160 66,645 71,288 17 Banks 117,342 122,110 106,338 103,653' 98,678 96,071 102,862 97,197 93,509 95,153 18 Public borrowers 23,491 22,877 18,374 18,766 18,941 19,001 18,681 19,108 18,880 18,529 19 Nonbank foreigners 56,017 62,552 61,422 60,561' 61,141 61,037 60,235 61,723 62,309 60,851 20 Other assets 9,216 11,656 12,018 11,605 10,536 10,403 10,613 10,770 10,274 10,590 United Kingdom 21 Total, all currencies 144,717 157,229 161,067 156,022 152,408 151,821 155,631 153,209 154,865 156,048 22 Claims on United States 7,509 11,823 27,354 26,259 25,139 24,847 26,279 26,012 29,722 28,935 23 Parent bank 5,275 7,885 23,017 21,912 20,657 20,456 21,384 20,849 22,169 20,816 24 Other 2,234 3,938 4,337 4,347 4,482 4,391 4,895 5,163 7,553 8,119 25 Claims on foreigners 131,142 138,888 127,734 123,993 121,727 121,187 123,835 121,757 119,672 121,530 26 Other branches of parent bank 34,760 41,367 37,000 36,171 32,973 33,361 35,787 35,632 35,555 36,382 27 Banks 58,741 56,315 50,767 48,976 48,301 47,623 48,328 46,643 44,303 45,451 28 Public borrowers 6,688 7,490 6,240 6,337 6,591 6,599 6,570 6,440 6,342 6,274 29 Nonbank foreigners 30,953 33,716 33,727 32,509 33,862 33,604 33,150 33,042 33,472 33,423 30 Other assets 6,066 6,518 5,979 5,770 5,542 5,787 5,517 5,440 5,471 5,583 31 Total payable in U.S. dollars 99,699 115,188 123,740 118,891 113,170 112,585 118,023 116,526 119,377 121,238 32 Claims on United States 7,116 11,246 26,761 25,597 24,374 24,044 25,536 25,180 28,905 27,828 33 Parent bank 5,229 7,721 22,756 21,626 20,354 20,092 21,017 20,434 21,720 20,036 34 Other 1,887 3,525 4,005 3,971 4,020 3,952 4,519 4,746 7,185 7,792 35 Claims on foreigners 89,723 99,850 92,228 88,797 84,981 84,779 88,587 87,450 86,868 89,539 36 Other branches of parent bank 28,268 35,439 31,648 30,589 27,131 27,579 30,025 30,122 30,053 31,409 37 Banks 42,073 40,703 36,717 34,442 33,228 32,801 34,417 33,159 31,718 33,237 38 Public borrowers 4,911 5,595 4,329 4,413 4,522 4,497 4,547 4,420 4,410 4,329 39 Nonbank foreigners 14,471 18,113 19,534 19,353 20,100 19,902 19,598 19,749 20,687 20,564 40 Other assets 2,860 4,092 4,751 4,497 3,815 3,762 3,900 3,896 3.604 3,871 Bahamas and Caymans 41 Total, all currencies 123,837 149,108 145,156 145,748 142,126 141,021 146,792 142,384' 139,422 143,118 42 Claims on United States 17,751 46,546 59,403 62,654' 61,417 62,546 66,456 65,984' 63,646 66,519 43 Parent bank 12,631 31,643 34,653 37,967 37,971 39,031 40,497 42,898' 40,031 40,125 44 Other 5,120 14,903 24,750 24,687' 23,446 23,515 25,959 23,086 23,615 26,394 45 Claims on foreigners 101,926 98,057 81,450 79,155' 77,034 74,817 76,734 72,683 72,021 72,826 46 Other branches of parent bank 13,342 12,951 18,720 17,512 18,295 18,537 16,658 15,565 15,344 16,764 47 Banks 54,861 55,151 42,699 42,358' 39,682 37,589 41,707 37,384 37,360 36,634 48 Public borrowers 12,577 10,010 6,413 6,540 6,388 6,170 5,935 6,538 6,404 6,461 49 Nonbank foreigners 21,146 19,945 13,618 12,745' 12,669 12,521 12,434 13,196 12,913 12,967 50 Other assets 4,160 4,505 4,303 3,939 3,675 3,658 3,602 3,717 3,755 3,773 51 Total payable in U.S. dollars 117,654 143,743 139,605 139,634 136,192 135,192 140,702 136,253' 132,956 136,821 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A55 3.14 Continued 1983 LLiiaabbiilliittyy aaccccoouunntt 11998800 11998811 11998822 Mar. Apr. May June July Aug. Sept.'' All foreign countries 52 Total, all currencies 401,135 462,847 469,432 465,417 453,296 452,253 465,772 455,802' 452,320 460,233 53 To United States 91,079 137,767 178,918 189, IOC 184,071 183,851 191,485 187,665' 183,587 182,610 54 Parent bank 39,286 56,344 75,561 85,274 81,104 80,844 84,482 81,704' 77,279 78,027 55 Other banks in United States 14,473 19,197 33,368 33,97V 32,687 31,815 33,672 31,490' 29,880 30,936 56 Nonbanks 37,275 62,226 69,989 69,856 70,280 71,192 73,331 74,471 76,428 73,647 57 To foreigners 295,411 305,630 270,678 258,537' 251,296 250,813 256,102 249,823' 250,510 259,207 58 Other branches of parent bank 75,773 86,396 90,148 86,928 84,146' 84,903' 86,546' 83,911' 82,907 87,839 59 Banks 132,116 124,906 96,739 91,742' 86,950 84,637 87,153 84,649' 85,446 86,572 60 Official institutions 32,473 25,997 19,614 17,808 18,384 17,199 18,621 18,287 17,766 20,492 61 Nonbank foreigners 55,049 68,331 64,177 62,059 61,816' 64,074' 63,782' 62,976' 64,391 64,304 62 Other liabilities 14,690 19,450 19,836 17,780 17,929 17,589 18,185 18,314' 18,223 18,416 63 Total payable in U.S. dollars 303,281 364,447 379,003 374,727 363,592 363,354 376,055 368,499' 365,583 373,316 64 To United States 88,157 134,700 175,431 185,602' 180,650 180,075 187,987 184,167' 179,894 178,844 65 Parent bank 37,528 54,492 73,235 82,963 79,022 78,578 82,285 79,448' 74,965 75,751 66 Other banks in United States 14,203 18,883 33,003 33,530' 32,226 31,222 33,242 31,116' 29,334 30,369 67 Nonbanks 36,426 61,325 69,193 69,109 69,402 70,275 72,460 73,603 75,595 72,724 68 To foreigners 206,883 217,602 192,348 179,725' 173,556 174,176 178,877 174,733' 175,836 184,381 69 Other branches of parent bank 58,172 69,299 72,878 69,038 66,186' 66,664' 68,356' 67,228' 65,846 70,583 70 Banks 87,497 79,594 57,355 52,149' 48,428 47,424 49,916 48,062' 49,616 50,953 71 Official institutions 24,697 20,288 15,055 13,536 13,801 12,641 13,912 13,517 12,999 15,404 72 Nonbank foreigners 36,517 48,421 47,060 45,002 45,141' 47,447' 46,693' 45,926' 47,375 47,441 73 Other liabilities 8,241 12,145 11,224 9,400 9,386 9,103 9,191 9,599' 9,853 10,091 United Kingdom 74 Total, all currencies 144,717 157,229 161,067 156,022 152,408 151,821 155,631 153,209 154,865 156,048 75 To United States 21,785 38,022 53,954 55,309 52,883 53,603 56,952 56,959 58,347 56,924 76 Parent bank 4,225 5,444 13,091 14,616 14,343 13,907 14,461 15,011 16,145 16,852 77 Other banks in United States 5,716 7,502 12,205 13,172 12,119 12,773 13,503 12,993 12,462 12,174 78 Nonbanks 11,844 25,076 28,658 27,521 26,421 26,923 28,988 28,955 29,740 27,898 79 To foreigners 117,438 112,255 99,567 93,835 92,460 91,071 91,545 89,198 89,458 91,895 80 Other branches of parent bank 15,384 16,545 18,361 19,653 19,470 20,235 18,376 17,544 17,595 19,138 81 Banks 56,262 51,336 44,020 40,867 38,960 37,594 38,238 37,192 37,571 37,122 82 Official institutions 21,412 16,517 11,504 10,252 10,520 9,413 10,848 10,146 9,588 11,448 83 Nonbank foreigners 24,380 27,857 25,682 23,063 23,510 23,829 24,083 24,316 24,704 24,187 84 Other liabilities 5,494 6,952 7,546 6,878 7,065 7,147 7,134 7,052 7,060 7,229 85 Total payable in U.S. dollars 103,440 120,277 130,261 126,088 120,683 120,324 124,760 123,265 125,656 127,868 86 To United States 21,080 37,332 53,029 54,520 51,993 52,473 56,092 56,081 57,359 55,931 87 Parent bank 4,078 5,350 12,814 14,476 14,212 13,696 14,308 14,812 15,829 16,673 88 Other banks in United States 5,626 7,249 12,026 12,987 11,929 12,439 13,313 12,833 12,223 11,886 89 Nonbanks 11,376 24,733 28,189 27,057 25,852 26,338 28,471 28,436 29,307 27,372 90 To foreigners 79,636 79,034 73,477 68,309 65,485 64,621 65,428 63,818 64,801 68,035 91 Other branches of parent bank 10,474 12,048 14,300 14,918 14,815 15,636 14,117 13,386 13,421 14,949 92 Banks 35,388 32,298 28,810 26,395 23,821 22,960 23,895 23,453 24,447 24,478 93 Official institutions 17,024 13,612 9,668 8,419 8,474 7,306 8,786 8,065 7,630 9,381 94 Nonbank foreigners 16,750 21,076 20,699 18,577 18,375 18,719 18,630 18,914 19,303 19,227 95 Other liabilities 2,724 3,911 3,755 3,259 3,205 3,230 3,240 3,366 3,496 3,902 Bahamas and Caymans 96 Total, all currencies 123,837 149,108 145,156 145,748 142,126 141,021 146,792 142,384' 139,422 143,118 97 To United States 59,666 85,759 104,425 111,480' 109,698 108,847 111,631 108,575' 104,193 104,641 98 Parent bank 28,181 39,451 47,081 55,680 52,063 51,145 53,626 50,729' 46,214 45,481 99 Other banks in United States 7,379 10,474 18,466 17,324' 17,451 16,143 16,921 15,495' 14,560 16,186 100 Nonbanks 24,106 35,834 38,878 38,476 40,184 41,559 41,084 42,351 43,419 42,974 101 To foreigners 61,218 60,012 38,274 32,059' 30,210 29,998 33,088 31,56(y 32,875 36,159 102 Other branches of parent bank 17,040 20,641 15,796 11,536 10,314' 10,073' 11,822' 12,262' 12,808 14,683 103 Banks 29,895 23,202 10,166 9,003' 8,126 7,618 9,024 8,012 8,737 9,513 104 Official institutions 4,361 3,498 1,967 1,678 1,710 1,734 1,796 2,101 2,140 2,241 105 Nonbank foreigners 9,922 12,671 10,345 9,842 10,060' 10,573' 10,446' 9,185' 9,190 9,722 106 Other liabilities 2,953 3,337 2,457 2,209 2,218 2,176 2,073 2,249' 2,354 2,318 107 Total payable in U.S. dollars 119,657 145,284 141,908 142,550 138,987 137,925 143,502 139,198' 135,950 139,824 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • December 1983 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1983 IItteemm 11998811 11998822 Apr. May June July Aug. Sept. Oct.P 1 Total1 169,735 172,699 173,510 174,541 174,628 175,986 173,071 171,557 173,264 By type 2 Liabilities reported by banks in the United States2 26,737 24,989 22,914 23,514 23,677 21,831 22,510 21,920 21,911 3 U.S. Treasury bills and certificates3 52,389 46,658 48,399 49,281 49,068 53,434 50,965 50,374 51,618 U.S. Treasury bonds and notes 4 Marketable 53,186 67,684 70,643 70,677 71,095 70,181 69,296 69,301 69,880 5 Nonmarketable4 11,791 8,750 7,950 7,950 7,950 7,950 7,950 7,950 7,950 6 U.S. securities other than U.S. Treasury securities5 25,632 24,588 23,604 23,119 22,838 22,590 22,350 22,012 21,905 By area 7 Western Europe1 65,699 61,288 62,080 63,125 63,742 66,409 64,361 63,878 64,723 8 Canada 2,403 2,070 2,770 2,977 3,117 3,293 3,141 2,712 2,816 9 Latin America and Caribbean 6,953 6,057 6,284 5,920 6,509 5,421 5,676 5,518 5,627 10 Asia 91,607 95,993 95,393 95,568 94,688 94,336 93,135 92,833 92,522 11 Africa 1,829 1,350 1,208 1,203 1,075 1,138 1,173 1,196 1,023 12 Other countries6 1,244 5,911 5,775 5,748 5,497 5,389 5,585 5,420 6,553 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 1983 IItteemm 11997799 11998800 11998811 Dec. Mar. June Sept. 1 Banks' own liabilities 1,918 3,748 3,523 4,844 5,075 5,810 5,943 2 Banks' own claims 2,419 4,206 4,980 7,707 8,097 7,817 7,919 3 Deposits 994 2,507 3,398 4,251 3,725 3,878 3,063 4 Other claims 1,425 1,699 1,582 3,456 4,372 3,940 4,856 5 Claims of banks' domestic customers1 580 962 971 676 637 684 717 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 A57 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1983 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998800 11998811AA 11998822 Apr. May June July Aug/ Sept/ Oct. 1 All foreigners 205,297 243,889 307,023 309,311 317,666 320,984 326,808 332,196 338,265 337,678 2 Banks' own liabilities 124,791 163,817 227,056 226,649 233,843 236,845 238,934 245,539 251,271 248,824 3 Demand deposits 23,462 19,631 15,971 15,606 16,935 17,314 15,760 15,672 16,341 17,146 4 Time deposits1 15,076 29,039 67,910 68,075 70,831 73,938 73,554 77,883 81,118 80,410 5 Other2 17,583 17,647 23,980 22,210 23,841 24,881 22,601 23,785 24,926 22,488 6 Own foreign offices3 68,670 97,500 119,195 120,758 122,236 120,712 127,019 128,200 128,885 128,780 7 Banks' custody liabilities4 80,506 80,072 79,967 82,661 83,823 84,139 87,873 86,657 86,994 88,853 8 U.S. Treasury bills and certificates5 57,595 55,315 55,628 60,110 60,508 61,245 65,133 63,915 64,105 65,735 9 Other negotiable and readily transferable instruments6 20,079 18,788 20,636 18,823 19,169 18,731 18,106 17,977 17,755 17,157 10 Other 2,832 5,970 3,702 3,728 4,146 4,163 4,634 4,765 5,134 5,961 11 Nonmonetary international and regional organizations7 2,344 2,721 4,922 6,273 5,803 5,456 5,678 5,555 5,308 4,619 12 Banks' own liabilities 444 638 1,909 2,898 3,467 3,048 4,030 3,433 3,024 3,294 13 Demand deposits 146 262 106 252 267 165 307 325 252 452 14 Time deposits1 85 58 1,664 2,087 2,511 2,483 3,010 2,507 2,168 2,487 15 Other2 212 318 139 559 690 400 713 601 605 355 16 Banks' custody liabilities4 1,900 2,083 3,013 3,375 2,335 2,408 1,648 2,121 2,284 1,325 17 U.S. Treasury bills and certificates 254 541 1,621 2,230 1,280 1,538 678 1,294 1,442 441 18 Other negotiable and readily transferable instruments6 1,646 1,542 1,392 1,145 1,055 870 970 828 842 884 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 86,624 79,126 71,647 71,313 72,795 72,747 75,265 73,476 72,295 73,529 21 Banks' own liabilities 17,826 17,109 16,640 16,281 16,768 16,723 15,613 16,285 16,153 16,411 22 Demand deposits 3,771 2,564 1,981 2,322 2,058 2,198 1,940 1,685 1,929 1,829 23 Time deposits1 3,612 4,230 5,528 6,132 6,367 6,352 6,605 6,370 6,195 6,574 24 Other2 10,443 10,315 9,131 7,826 8,343 8,173 7,068 8,230 8,030 8,007 25 Banks' custody liabilities4 68,798 62,018 55,008 55,032 56,026 56,023 59,652 57,191 56,142 57,119 26 U.S. Treasury bills and certificates5 56,243 52,389 46,658 48,399 49,281 49,068 53,434 50,965 50,374 51,618 27 Other negotiable and readily transferable instruments6 12,501 9,581 8,321 6,618 6,724 6,937 6,189 6,186 5,735 5,464 28 Other 54 47 28 15 22 17 29 39 32 36 29 Banks9 96,415 136,008 185,848 183,343 188,957 191,977 194,869 200,554 205,683 203,698 30 Banks' own liabilities 90,456 124,312 169,416 164,890 169,536 172,521 174,750 180,114 184,649 181,757 31 Unaffiliated foreign banks 21,786 26,812 50,221 44,132 47,301 51,809 47,731 51,914 55,764 52,977 32 Demand deposits 14,188 11,614 8,675 7,601 8,832 9,134 8,074 8,302 8,603 9,141 33 Time deposits1 1,703 8,720 28,261 24,525 25,429 27,944 26,512 29,300 31,463 30,383 34 Other2 5,895 6,477 13,285 12,007 13,039 14,730 13,145 14,312 15,698 13,453 35 Own foreign offices3 68,670 97,500 119,195 120,758 122,236 120,712 127,019 128,200 128,885 128,780 36 Banks' custody liabilities4 5,959 11,696 16,432 18,453 19,420 19,456 20,119 20,440 21,034 21,941 37 U.S. Treasury bills and certificates 623 1,685 5,809 7,475 7,824 8,396 8,599 9,015 99,,444400 1100,,003366 38 Other negotiable and readily transferable instruments6 2,748 4,400 7,857 8,041 8,315 7,771 7,821 7,581 7,519 7,542 39 Other 2,588 5,611 2,766 2,937 3,282 3,289 3,699 3,845 4,074 4,363 40 Other foreigners 19,914 26,035 44,606 48,381 50,111 50,805 50,996 52,612 54,979 55,831 41 Banks' own liabilities 16,065 21,759 39,092 42,580 44,070 44,552 44,542 45,707 47,444 47,363 42 Demand deposits 5,356 5,191 5,209 5,430 5,777 5,817 5,439 5,360 5,558 5,724 43 Time deposits 9,676 16,030 32,457 35,332 36,524 37,158 37,428 39,706 41,292 40,966 44 Other2 1,033 537 1,426 1,819 1,769 1,578 1,675 642 594 673 45 Banks' custody liabilities4 3,849 4,276 5,514 5,801 6,041 6,253 6,454 6,905 7,535 8,468 46 U.S. Treasury bills and certificates 474 699 1,540 2,006 2,123 2,242 2,422 2,641 2,848 3,640 47 Other negotiable and readily transferable instruments6 3,185 3,265 3,065 3,018 3,076 3,154 3,126 3,383 3,659 3,267 48 Other 190 312 908 776 842 857 906 881 1,028 1,562 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,745 10,747 14,307 11,604 11,537 11,589 11,062 10,720 10,302 9,970 1. Excludes negotiable time certificates of deposit, which are included in 6. Principally bankers acceptances, commercial paper, and negotiable time "Other negotiable and readily transferable instruments." certificates of deposit. 2. Includes borrowing under repurchase agreements. 7. Principally the International Bank for Reconstruction and Development, and 3. U.S. banks: includes amounts due to own foreign branches and foreign the Inter-American and Asian Development Banks. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 8. Foreign central banks and foreign central governments, and the Bank for regulatory agencies. Agencies, branches, and majority-owned subsidiaries of International Settlements. foreign banks: principally amounts due to head office or parent foreign bank, and 9. Excludes central banks, which are included in "Official institutions." foreign branches, agencies or wholly owned subsidiaries of head office or parent • Liabilities and claims of banks in the United States were increased, foreign bank. beginning in December 1981, by the shift from foreign branches to international 4. Financial claims on residents of the United States, other than long-term banking facilities in the United States of liabilities to, and claims on, foreign securities, held by or through reporting banks. residents. 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • December 1983 3.17 Continued 1983 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 Apr. May June July Aug. Sept.' Oct. 1 Total 205,297 243,889 307,023 309,311 317,666 320,984 326,808 332,196' 338,265 337,678 2 Foreign countries 202,953 241,168 302,101 303,037 311,863 315,528 321,130 326,641' 332,957 333,059 3 Europe 90,897 91,275 117,753 111,366 116,077 118,531 118,788 120,925' 126,431 126,608 4 Austria 523 596 519 576 572 640 610 556 659 570 5 Belgium-Luxembourg 4,019 4,117 2,517 2,808 2,610 2,843 2,955 3,116 2,794 2,853 6 Denmark 497 333 509 849 732 616 612 573 573 544 7 Finland 455 296 748 437 280 447 292 459 373 372 8 France 12,125 8,486 8,171 7,099 6,652 6,766 8,845 8,488 8,842 8,640 9 Germany 9,973 7,645 5,351 3,437 3,971 3,423 3,707 3,537 3,432 4,308 10 Greece 670 463 537 670 648 567 588 636 603 595 11 Italy 7,572 7,267 5,626 5,029 5,573 6,634 7,790 7,277 6,930 7,703 12 Netherlands 2,441 2,823 3,362 3,970 3,550 3,246 3,413 3,633 4,452 3,733 13 Norway 1,344 1,457 1,567 1,565 9,227 1,719 900 1,044 1,457 1,072 14 Portugal 374 354 388 346 427 350 338 315 302 297 15 Spain 1,500 916 1,405 1,484 1,621 1,615 1,694 1,585 1,678 1,592 16 Sweden 1,737 1,545 1,390 1,210 1,356 1,493 1,407 1,204 1,334 1,479 17 Switzerland 16,689 18,716 29,066 29,424 29,781 29,941 29,958 29,867 29,902 30,756 18 Turkey 242 518 296 231 248 198 224 315 333 277 19 United Kingdom 22,680 28,286 48,172 45,045 48,840 50,343 48,015 51,206' 55,681 54,741 20 Yugoslavia 681 375 499 504 549 504 427 462 506 464 21 Other Western Europe1 6,939 6,541 7,006 6,223 6,061 6,666 6,514 6,237' 6,028 5,993 22 U.S.S.R 68 49 50 44 53 71 45 31 23 42 23 Other Eastern Europe2 370 493 573 413 327 448 453 384 530 576 24 Canada 10,031 10,250 12,232 14,540 16,309 16,345 16,676 17,917' 16,467 16,325 25 Latin America and Caribbean 53,170 85,223 114,133 118,096 118,528 120,440 124,257 126,600' 126,860 127,213 26 Argentina 2,132 2,445 3,578 4,622 4,746 4,763 5,017 4,249 4,148 4,018 27 Bahamas 16,381 34,856 44,719 49,185 49,751 49,741 54,506 52,002' 49,838 51,206 28 Bermuda 670 765 1,572 2,080 1,831 2,064 2,360 2,847' 2,807 2,632 29 Brazil 1,216 1,568 2,014 2,498 2,483 2,675 2,681 3,017 3,475 3,818 30 British West Indies 12,766 17,794 26,376 24,062 23,312 24,213 24,172 26,957' 28,209 27,210 31 Chile 460 664 1,626 1,204 1,345 1,355 1,385 1,472 1,612 1,697 32 Colombia 3,077 2,993 2,594 1,825 1,873 1,719 1,618 1,674 1,610 1,617 33 Cuba 6 9 9 12 8 13 11 12 10 10 34 Ecuador 371 434 455 534 658 581 532 601 670 825 35 Guatemala 367 479 670 671 711 705 697 718 758 750 36 Jamaica 97 87 126 107 108 130 108 106 109 105 37 Mexico 4,547 7,235 8,377 8,365 8,536 9,027 9,142 9,445 9,693 9,446 38 Netherlands Antilles 413 3,182 3,597 3,440 3,622 3,514 3,434 3,486 3,571 3,860 39 Panama 4,718 4,857 4,805 5,637 5,749 5,670 5,608 5,934' 6,075 5,902 40 Peru 403 694 1,147 966 1,005 1,148 1,055 1,129 1,202 1,050 41 Uruguay 254 367 759 858 919 955 958 1,033' 1,116 1,202 42 Venezuela 3,170 4,245 8,417 8,622 8,576 8,631 7,715 8,587 8,379 8,202 43 Other Latin America and Caribbean 2,123 2,548 3,291 3,407 3,295 3,537 3,257 3,331 3,579 3,664 44 42,420 49,822 48,716 50,195 52,117 51,957 5533,,002255 5522,,662288'' 5544,,557788 5533,,339933 China 45 Mainland 49 158 203 187 158 208 192 176 190 227 46 Taiwan 1,662 2,082 2,761 3,600 3,765 3,744 3,913 4,086 3,852 3,992 47 Hong Kong 2,548 3,950 4,465 5,127 5,195 5,587 5,554 5,604' 6,579 6,506 48 India 416 385 433 669 719 669 606 528 718 830 49 Indonesia 730 640 857 1,028 765 554 1,245 839 622 871 50 Israel 883 592 606 767 789 835 670 812 851 812 51 Japan 16,281 20,750 16,078 17,052 17,403 17,006 17,655 16,922' 17,414 17,101 52 Korea 1,528 2,013 1,692 1,147 1,459 1,326 1,552 1,553 1,477 1,353 53 Philippines 919 874 770 712 783 818 770 933' 1,180 747 54 Thailand 464 534 629 528 566 692 537 531 581 522 55 Middle-East oil-exporting countries3 14,453 12,992 13,433 11,758 12,610 11,832 11,865 11,764 12,655 12,399 56 Other Asia 2,487 4,853 6,789 7,620 7,906 8,685 8,467 8,877 8,458 8,032 57 Africa 5,187 3,180 3,124 2,841 2,876 2,693 2,916 2,853 3,131 2,845 58 Egypt 485 360 432 466 513 467 554 465 484 576 59 Morocco 33 32 81 49 50 54 57 48 84 73 60 South Africa 288 420 292 310 358 355 403 452 517 394 61 Zaire 57 26 23 28 32 59 55 29 34 43 62 Oil-exporting countries4 3,540 1,395 1,280 1,071 867 743 928 934 967 736 63 Other Africa 783 946 1,016 916 1,057 1,014 919 926 1,046 1,023 64 Other countries 1,247 1,419 6,143 5,999 5,956 5,562 5,469 5,719 5,489 6,675 65 Australia 950 1,223 5,904 5,804 5,778 5,404 5,250 5,512 5,284 6,461 66 All other 297 196 239 195 178 159 219 208 205 214 67 Nonmonetary international and regional organizations 2,344 2,721 4,922 6,273 5,803 5,456 5,678 5,555 5,308 4,619 68 International 1,157 1,661 4,049 5,550 5,078 4,747 4,987 4,861 4,674 3,944 69 Latin American regional 890 710 517 494 457 443 454 441 445 437 70 Other regional5 296 350 357 229 267 266 237 252 189 238 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Asian, African, Middle Eastern, and European regional organizations, includes Eastern European countries not listed in line 23. except the Bank for International Settlements, which is included in "Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Western Europe." Democratic Republic, Hungary, Poland, and Romania. • Liabilities and claims of banks in the United States were increased, beginning 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and in December 1981, by the shift from foreign branches to international banking United Arab Emirates (Trucial States). facilities in the United States of liabilities to, and claims on, foreign residents. 4. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 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 1983 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 Apr. May June July Aug. Sept.' Oct. 1 Total 172,592 251,573 355,694 361,811 364,096 372,437 366,155 371,924' 370,764 374,459 2 Foreign countries 172,514 251,517 355,625 361,719 364,019 372,337 366,070 371,839' 370,166 374,399 3 Europe 32,108 49,262 85,508 84,678 83,975 86,335 84,496 87,876' 87,483 88,788 4 Austria 236 121 229 307 309 342 383 338 336 337 5 Belgium-Luxembourg 1,621 2,849 5,138 5,497 5,689 5,796 5,449 5,890 5,491 5,501 6 Denmark 127 187 554 1,122 1,059 1,077 1,064 1,124' 1,075 1,098 7 Finland 460 546 990 844 766 870 111 637 665 789 8 France 2,958 4,127 7,251 7,352 7,839 7,941 7,900 8,589 77,,667799 7,390 9 Germany 948 940 1,876 1,273 1,208 1,404 1,112 1,153 11,,440088 1,075 10 Greece 256 333 452 628 607 576 458 375 408 354 11 Italy 3,364 5,240 7,560 7,404 6,985 7,323 7,401 7,387' 6,862 7,676 12 Netherlands 575 682 1,425 1,270 1,282 1,165 967 1,048 1,162 1,063 13 Norway 227 384 572 628 683 652 598 634 531 575 14 Portugal 331 529 950 812 818 846 844 848 861 889 IS Spain 993 2,095 3,744 3,037 3,062 3,199 3,339 3,373 3,317 3,137 16 Sweden 783 1,205 3,038 2,268 2,307 2,864 2,910 2,836 2,943 3,046 17 Switzerland 1,446 2,213 1,639 1,646 1,085 1,598 1,727 1,630 1,740 1,580 18 Turkey 145 424 560 608 578 570 629 594 616 660 19 United Kingdom 14,917 23,849 45,706 46,218 45,949 46,250 45,346 47,751' 48,715 49,938 20 Yugoslavia 853 1,225 1,430 1,433 1,482 1,463 1,381 1,351 1,354 1,470 21 Other Western Europe1 179 211 368 250 254 334 356 406 523 401 22 U.S.S.R 281 377 263 397 349 373 288 232 215 206 23 Other Eastern Europe2 1,410 1,725 1,762 1,685 1,664 1,692 1,566 1,680 1,580 1,603 24 Canada 4,810 9,193 13,678 15,081 16,536 16,616 16,497 17,501' 16,367 15,888 25 Latin America and Caribbean 92,992 138,331 188,199 196,075 198,139 198,880 195,018 195,219' 193,526 197,715 26 Argentina 5,689 7,527 10,974 11,228 11,550 11,243 11,112 11,334 11,345 11,605 27 Bahamas 29,419 43,535 56,880 57,257 58,965 62,153 58,824 54,670' 55,228 58,972 28 Bermuda 218 346 603 385 628 447 358 390 636 494 29 Brazil 10,496 16,926 23,271 23,726 23,541 23,333 23,711 24,224 24,020 24,178 30 British West Indies 15,663 21,972 29,101 35,114 33,356 32,518 30,349 31,804' 30,715 30,754 31 Chile 1,951 3,690 5,513 5,131 5,568 5,161 5,188 5,389 5,700 5,740 32 Colombia 1,752 2,018 3,211 3,155 3,485 3,600 3,656 3,592 3,643 3,648 33 Cuba 3 3 3 0 0 0 0 0 3 3 34 Ecuador 1,190 1,531 2,062 2,093 2,040 2,038 2,018 2,014 2,010 2,154 35 Guatemala3 137 124 124 77 90 90 96 100 107 115 36 Jamaica3 36 62 181 196 197 207 209 204 214 203 37 Mexico 12,595 22,439 29,552 31,758 31,939 32,318 32,862 3333,,668899'' 33,433 33,490 38 Netherlands Antilles 821 1,076 839 979 827 519 943 883388 1,017 1,063 39 Panama 4,974 6,794 10,210 9,013 9,686 8,824 9,127 10,091' 9,122 8,721 40 Peru 890 1,218 2,357 2,333 2,416 2,624 2,506 2,421 2,416 2,434 41 Uruguay 137 157 686 859 824 820 833 820 856 883 42 Venezuela 5,438 7,069 10,643 10,564 10,748 10,848 11,121 11,045 10,882 10,881 43 Other Latin America and Caribbean 1,583 1,844 1,991 2,208 2,280 2,138 2,104 2,592 2,178 2,378 44 39,078 49,851 60,786 5577,,771111 5577,,441122 6622,,550022 6611,,887744 6622,,553388'' 6644,,113399 6622,,779922 China 45 Mainland 195 107 214 239 219 166 124 179 227 300 46 Taiwan 2,469 2,461 2,288 1,786 1,613 1,760 1,715 1,644 1,744 1,619 47 Hong Kong 2,247 4,132 6,698 7,487 7,552 7,845 8,033 8,022' 8,613 8,180 48 India 142 123 222 163 198 230 245 275 259 324 49 Indonesia 245 352 348 547 569 537 595 635 688 697 SO Israel 1,172 1,567 2,029 2,036 1,926 2,181 1,657 1,639 1,725 1,780 SI Japan 21,361 26,797 28,302 24,979 24,757 27,381 27,758 27,416' 28,499 27,593 52 Korea 5,697 7,340 9,387 8,768 8,940 9,143 9,639 9,696 9,385 9,307 S3 Philippines 989 1,819 2,625 2,637 2,493 2,829 2,640 2,530' 2,729 2,372 54 Thailand 876 565 643 741 707 788 689 735 800 830 55 Middle East oil-exporting countries4 1,432 1,581 3,087 3,947 4,027 4,452 4,003 4,654' 4,105 4,602 56 Other Asia 2,252 3,009 4,943 4,381 4,413 5,191 4,776 5,114' 5,365 5,189 57 Africa 2,377 3,503 5,346 5,698 5,538 5,662 5,937 6,527 6,467 6,856 58 Egypt 151 238 322 297 378 421 486 529 595 600 59 Morocco 223 284 353 382 441 463 484 444 444 462 60 South Africa 370 1,011 2,012 2,123 2,123 2,231 2,407 2,630 2,703 2,582 61 Zaire 94 112 57 104 47 46 45 40 38 38 62 Oil-exporting countries5 805 657 801 750 851 830 850 1,052 966 1,481 63 Other 734 1,201 1,802 2,041 1,699 1,671 1,664 1,832 1,721 1,693 64 Other countries 1,150 1,376 2,107 2,475 2,418 2,342 2,248 2,177 2,184 2,359 65 Australia 859 1,203 1,713 1,889 1,756 1,722 1,635 1,635 1,617 1,695 66 All other 290 172 394 586 662 620 613 542 568 664 67 Nonmonetary international and regional organizations6- 78 56 68 92 77 100 85 85 598 60 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 before 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

A60 International Statistics • December 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 1983 TTyyppee ooff ccllaaiimm 11998800 11998811AA 11998822 Apr. May June July Aug.' Sept.' Oct.'' 1 Total 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,555555544444441111111 333333399999996666666,,,,,,,000000000000004444444 444444400000007777777,,,,,,,999999911111110000000 444444400000006666666,,,,,,,888888833333330000000 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,555555577777773333333 333333355555555555555,,,,,,,666666699999994444444 361,811 364,0% 333333377777772222222,,,,,,,444444433333337777777 366,155 371,924 333333377777770000000,,,,,,,777777766666664444444 374,459 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,222222266666660000000 44444445555555,,,,,,,444444400000009999999 47,598 47,821 44444449999999,,,,,,,222222244444440000000 49,609 51,586 55555553333333,,,,,,,000000055555553333333 54,718 44 OOwwnn ffoorreeiiggnn ooffffiicceess11 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666655555553333333 111111122222227777777,,,,,,,444444444444448888888 135,824 139,392 111111144444440000000,,,,,,,111111133333339999999 135,686 137,155 111111133333335555555,,,,,,,777777711111119999999 144,078 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,666666688888888888888 111111122222221111111,,,,,,,333333333333333333333 117,733 116,017 111111122222220000000,,,,,,,555555555555559999999 117,720 120,495 111111111111119999999,,,,,,,999999911111119999999 114,131 66 DDeeppoossiittss 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,333333366666665555555 44444444444444,,,,,,,111111188888880000000 44,952 44,403 44444446666666,,,,,,,888888888888883333333 46,166 47,157 44444448888888,,,,,,,222222211111117777777 44,619 77 OOtthheerr 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 72,780 71,613 77777773333333,,,,,,,666666677777776666666 71,554 73,338 77777771111111,,,,,,,777777700000002222222 69,511 88 AAllll ootthheerr ffoorreeiiggnneerrss 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,555555500000004444444 60,656 60,867 66666662222222,,,,,,,444444499999999999999 63,141 62,688 66666662222222,,,,,,,000000077777772222222 61,532 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333335555555,,,,,,,444444477777773333333 33333336666666,,,,,,,000000066666666666666 888888888888885555555 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,666666633333331111111 2222222,,,,,,,666666655555554444444 11 Negotiable and readily transferable 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222226666666,,,,,,,777777700000008888888 22222227777777,,,,,,,555555555555550000000 12 Outstanding collections and other 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 6666666,,,,,,,111111133333333333333 5555555,,,,,,,888888866666662222222 13 MEMO: Customer liability on 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,333333333333338888888 33333334444444,,,,,,,888888811111111111111 33333334444444,,,,,,,555555588888889999999 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 24,468 39,862 41,210 41,529 43,052' 40,741' 41,098' 41,376 41,181 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, foreign banks: principally amounts due from head office or parent foreign bank, p. 550. and foreign branches, agencies, or wholly owned subsidiaries of head office or • 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 1982 1983 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998800 11998811AA Sept. Dec. Mar. June Sept. 1 Total 106,748 154,574 215,200 227,967 229,437 231,022 233,602 By borrower 2 Maturity of 1 year or less1 82,555 116,378 163,465 173,736 173,631 173,596 174,398 3 Foreign public borrowers 9,974 15,142 20,095 21,236 21,667 22,442 25,901 4 All other foreigners 72,581 101,236 143,370 152,500 151,964 151,154 148,497 5 Maturity of over 1 year1 24,193 38,197 51,735 54,231 55,807 57,427 59,204 6 Foreign public borrowers 10,152 15,589 22,016 23,127 24,693 26,170 26,997 7 All other foreigners 14,041 22,608 29,719 31,104 31,113 31,257 32,207 By area Maturity of 1 year or less1 8 Europe 18,715 28,130 45,908 50,493 53,986 51,797 52,348 9 Canada 2,723 4,662 7,062 7,642 6,845 6,957 6,408 10 Latin America and Caribbean 32,034 48,701 72,353 73,239 74,998 74,622 75,978 11 26,686 31,485 33,358 37,455 32,574 35,183 33,616 12 Africa 1,757 2,457 3,621 3,680 3,872 3,854 4,657 13 All other2 640 943 1,163 1,226 1,355 11,,118822 11,,339911 Maturity of over 1 year1 14 Europe 5,118 8,100 10,564 11,636 11,986 12,181 11,626 15 Canada 1,448 1,808 2,003 1,931 1,924 1,864 1,770 16 Latin America and Caribbean 15,075 25,209 34,112 35,245 35,844 36,604 38,381 17 Asia 1,865 1,907 3,092 3,185 3,573 4,045 4,584 18 Africa 507 900 1,328 1,494 1,485 1,667 1,734 19 All other2 179 272 635 740 995 1,066 1,108 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 A61 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 1983 AArreeaa oorr ccoouunnttrryy 11997799 11998800 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. 1 Total 303.9 352.0 400.(K 415.2' 419.6' 435.1' 437.9' 438.5' 440.1' 435.2' 421.0 2 G-10 countries and Switzerland 138.4 162.1 172.3' 175.5' 174.5' 176.2' 175.3' 179.5' 181.8' 175.8' 164.9 3 Belgium-Luxembourg 11.1 13.0 14.1 13.3 13.2 14.1 13.6 13.1 13.7 13.3' 12.4 4 France 11.7 14.1 16.0 15.3 le.O' 16.5 15.8 17.1' 17.1' 17.1 16.0 5 Germany 12.2 12.1 12.7 12.9 12.5 12.7 12.2 12.7 13.4 12.5 11.5 6 Italy 6.4 8.2 8.6 9.6 9.0 9.0 9.7 10.3 10.2' 10.5 9.7 7 Netherlands 4.8 4.4 3.7 4.0 4.0 4.1 3.8 3.6 4.3 4.1 3.6 8 Sweden 2.4 2.9 3.5' 3.7 4.1 4.0 4.7 5.0 4.3 4.7 4.8 9 Switzerland 4.7 5.0 5.1 5.5 5.3 5.1 5.1 5.0 4.6 4.7 4.2 10 United Kingdom 56.4 67.4 68.8 70.1' 70.3' 69.3' 70.2' 72.(K 72.7' 69.7' 65.1 11 Canada 6.3 8.4 11.8 10.9 11.6 11.4 11.0 10.4' 12.4 10.7 8.8 12 Japan 22.4 26.5 28.1' 30.2' 28.5 29.9 29.3 30.1 29.1 28.5 28.8 13 Other developed countries 19.9 21.6 26.4 28.4 30.7 32.1 32.7 33.7 33.9 34.3 33.9 14 Austria 2.0 1.9 2.2 1.9 2.1 2.1 2.0 1.9 2.1 2.1 1.9 15 Denmark 2.2 2.3 2.5 2.3 2.5 2.6 2.5 2.4 3.3 3.3 3.3 16 Finland 1.2 1.4 1.4 1.7 1.6 1.6 1.8 2.2 2.1 2.1 1.8 17 Greece 2.4 2.8 2.9 2.8 2.9 2.7 2.6 3.0 2.9 2.8 2.9 18 Norway 2.3 2.6 3.0 3.1 3.2 3.2 3.4 3.3 3.3 3.4 3.2 19 Portugal .7 .6 1.0 1.1 1.2 1.5 1.6 1.5 1.4 1.4 1.3 20 Spain 3.5 4.4 5.8 6.6 7.2 7.3 7.7 7.5 7.0 7.2 7.1 21 Turkey 1.4 1.5 1.5 1.4 1.6 1.5 1.5 1.4 1.5 1.4 1.5 22 Other Western Europe 1.4 1.7 1.9 2.1 2.1 2.2 2.1 2.3 2.2 2.1 2.1 23 South Africa 1.3 1.1 2.5 2.8 3.3 3.5 3.6 3.7 3.6 3.9 4.6 24 Australia 1.3 1.3 1.9 2.5 3.0 4.0 4.0 4.4 4.6 4.5 4.3 25 OPEC countries2 22.9 22.7 23.5 24.8' 25.4 26.4 27.3 27.4' 28.5 28.0' 27.0 26 Ecuador 1.7 2.1 2.1 2.2 2.3 2.4 2.3 2.2 2.2 2.2 2.1 27 Venezuela 8.7 9.1 9.2 9.9 10.0 10.1 10.4 10.5' 10.4 10.2 9.6 28 Indonesia 1.9 1.8 2.5 2.6 2.7 2.8 2.9 3.2 3.5 3.2 3.4 29 Middle East countries 8.0 6.9 7.1 7.5 8.2 8.7 9.0 8.7 9.3 9.5 9.0 30 African countries 2.6 2.8 2.6 2.5 2.2 2.5 2.7 2.8 3.0 3.C 2.8 31 Non-OPEC developing countries 63.0 77.4 90.3' 96.3' 97.5' 103.6 104.0' 107.0^ 107.5' 108.1 107.6 Latin America 32 Argentina 5.0 7.9 9.3 9.4 10.0 9.6' 9.2 8.9 9.0 9.4 9.4 33 Brazil 15.2 16.2 17.7 19.1 19.7' 21.4' 22.4 22.9 23.1 22.5 22.6 34 Chile 2.5 3.7 5.5 5.8 6.0 6.4 6.2 6.3 6.0 5.8 6.1 35 Colombia 2.2 2.6 2.5 2.6 2.3 2.6 2.8 3.1 2.9 3.2 3.2 36 Mexico 12.0 15.9 20.0 21.6 22.9 25.2' 25.(X 24.5 25.(X 25.0 25.5 37 1.5 1.8 1.8 2.0 1.9 2.5 2.6 2.6 2.4 2.6 2.3 38 Other Latin America 3.7 3.9 4.2 4.1 4.1 4.0 4.3 4.0 4.2 4.3 4.2 Asia China 39 Mainland .1 .2 .2 .2 .2 .3 .2 .2 .2 .2 .2 40 Taiwan 3.4 4.2 5.1 5.1 5.1 5.0 4.9 5.2 5.1 5.1 5.1 41 India .2 .3 .3 .5 .5 .5 .6 .4 .5 .5 42 Israel 1.3 1.5 1.5 1.7 2.2 1.9 2.3 2.0 2.3 1.7 43 Korea (South) 5.4 7.1 8.6 8.6 8.9 9.3 10.8' 10.8 10.8 10.5 44 Malaysia 1.0 1.1 1.4 1.7 1.7 1.9 1.8 2.1 2.5 2.6 2.8 45 Philippines 4.2 5.1 5.7' 5.9 6.3 6.0 6.3 6.6 6.4 6.1 46 Thailand 1.5 1.6 1.4 1.5 1.4 1.3 1.3 1.6 1.6 1.8 1.7 47 Other Asia .5 .6 .8 1.2 1.1 1.3 1.1 1.4 1.2' 1.0 Africa 48 Egypt .6 .8 1.0 1.1 1.3 1.3 1.3 1.2 1.1 1.2 1.4 49 Morocco .6 .7 .7 .7 .7 .7 .8 .7 .8 .8 .8 50 Zaire .2 .2 .2 .2 .2 .2 .1 .1 .1 .1 .1 51 Other Africa3 1.7 2.1 2.2 2.3 2.3 2.3 2.2 2.4 2.3 2.2 2.4 52 Eastern Europe 7.3 7.4 7.7 7.8 7.2 6.7 6.3 6.2 5.8 5.8' 5.3 53 U.S.S.R .7 .4 .4 .6 .4 .4 .3 .3 .3 .4 .2 54 Yugoslavia 1.8 2.3 2.5 2.5 2.5 2.4 2.2 2.2 2.2 2.3 2.2 55 Other 4.8 4.6 4.7 4.7 4.3 3.9 3.8 3.7 3.3 3.1' 2.9 56 Offshore banking centers 40.4 47.0 61.8' 63.7' 65.7 72.(V 72.(y 66.9' 66.2' 67.4' 65.6 57 Bahamas 13.7 13.7 21.4' 19.0 20.2 24.1' 21.4' 19.2' 17.7' 19.9' 19.2 58 Bermuda .8 .6 .8 .7 .7 .7 .8 .9 1.0 .8 .9 59 Cayman Islands and other British West Indies 9.4 10.6 12.1 12.4 12.1 12.3 12.9' ll^ 11.9 10.1 60 Netherlands Antilles 1.2 2.1 2.2 3.2 3.2 3.0 3.3 3.3 3.1' 2.6 4.2 61 Panama4 4.3 5.4 6.8' 7.7' 7.2 7.4 8.1 7.6 7.1 6.5 5.6 62 Lebanon .2 .2 .2 .2 .2 .2 .1 .1 .1 .1 .1 63 Hong Kong 6.0 8.1 10.3 11.8 12.9 14.3 14.9 13.8 15.0 14.5 15.0 64 Singapore 4.5 5.9 8.0 8.7 9.3 9.9 9.8 9.1 10.3 11.0 10.4 65 Others5 .4 .3 .1 .1 .1 .1 .0 .0 .0 .0 .1 66 Miscellaneous and unallocated6 11.7 14.0 18.2 18.8 18.5 18.4 20.3 17.9 16.4' 15.7' 16.9 1. The banking offices covered by these data are the U.S. offices and foreign 2. Besides the Organization of Petroleum Exporting Countries shown individbranches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. ually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq, Offices not covered include (1) U.S. agencies and branches of foreign banks, and Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are as Bahrain and Oman (not formally members of OPEC). adjusted to exclude the claims on foreign branches held by a U.S. office or another 3. Excludes Liberia. foreign branch of the same banking institution. The data in this table combine 4. Includes Canal Zone beginning December 1979. foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 5. Foreign branch claims only. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 6. Includes New Zealand, Liberia, and international and regional organizaforeign banks and those constituting claims on own foreign branches). tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • December 1983 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1982 1983 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 June Sept. Dec. Mar. June 1 Total 17,433 29,434 28,604 25,447 24,995 24,940 22,925 22,453 2 Payable in dollars 14,323 25,689 24,904 22,685 21,896 21,841 20,032 19,359 3 Payable in foreign currencies 3,110 3,745 3,700 2,763 3,099 3,099 2,893 3,094 By type 4 Financial liabilities 7,523 11,330 12,143 10,063 10,749 10,388 10,478 10,946 5 Payable in dollars 5,223 8,528 9,494 8,121 8,458 8,313 8,533 8,611 6 Payable in foreign currencies 2,300 2,802 2,649 1,941 2,291 2,075 1,945 2,335 7 Commercial liabilities 9,910 18,104 16,461 15,385 14,245 14,552 12,447 11,507 8 Trade payables 4,591 12,201 10,818 9,475 8,039 7,601 5,620 5,979 9 Advance receipts and other liabilities 5,320 5,903 5,643 5,910 6,206 6,951 6,827 5,527 10 Payable in dollars 9,100 17,161 15,409 14,563 13,438 13,528 11,499 10,747 11 Payable in foreign currencies 811 943 1,052 822 808 1,024 948 759 By area or country Financial liabilities 12 Europe 4,665 6,481 6,816 5,944 6,389 6,172 6,090 6,049 13 Belgium-Luxembourg 338 479 471 518 494 502 407 434 14 France 175 327 709 581 672 635 685 697 15 Germany 497 582 491 439 446 470 487 417 16 Netherlands 829 681 748 517 759 702 687 728 17 Switzerland 170 354 715 661 670 673 623 595 18 United Kingdom 2,477 3,923 3,556 3,081 3,212 3,061 3,071 3,051 19 Canada 532 964 958 758 702 685 723 1,278 20 Latin America and Caribbean 1,514 3,136 3,356 2,805 2,969 2,707 2,690 2,453 21 Bahamas 404 964 1,279 1,003 938 890 817 694 22 Bermuda 81 1 7 7 9 14 18 35 23 Brazil 18 23 22 24 28 28 39 34 24 British West Indies 516 1,452 1,241 1,044 981 1,002 1,001 924 25 Mexico 121 99 102 83 85 121 149 151 26 Venezuela 72 81 98 100 104 114 121 124 27 Asia 804 723 976 526 658 796 943 1,140 28 Japan 726 644 792 340 424 572 699 863 29 Middle East oil-exporting countries2 31 38 75 66 67 69 68 105 30 Africa 4 11 14 17 17 17 20 17 31 Oil-exporting countries3 1 1 0 0 0 0 0 0 32 All other4 4 15 24 11 13 12 13 9 Commercial liabilities 33 Europe 3,709 4,402 3,770 3,844 3,957 3,636 3,430 3,335 34 Belgium-Luxembourg 137 90 71 47 50 52 45 41 35 France 467 582 573 703 762 595 576 614 36 Germany 545 679 545 457 436 457 440 426 37 Netherlands 227 219 220 246 277 346 351 342 38 Switzerland 316 499 424 412 358 363 354 357 39 United Kingdom 1,080 1,209 880 951 1,001 850 679 621 40 Canada 924 888 897 1,134 1,197 1,490 1,454 1,478 41 Latin America and Caribbean 1,325 1,300 1,044 1,460 1,235 991 1,050 999 42 Bahamas 69 8 2 20 6 16 4 1 43 Bermuda 32 75 67 102 48 89 117 76 44 Brazil 203 111 67 62 128 60 51 49 45 British West Indies 21 35 2 2 3 32 4 22 46 Mexico 257 367 340 769 499 379 355 391 47 Venezuela 301 319 276 219 269 148 183 219 48 Asia 2,991 10,242 9,384 7,588 6,593 7,080 5,437 4,685 49 Japan 583 802 1,094 1,085 1,147 1,150 1,235 1,122 50 Middle East oil-exporting countries2'5 1,014 8,098 7,008 5,195 4,178 4,531 2,803 2,294 51 Africa 728 817 703 729 669 704 497 492 52 Oil-exporting countries3 384 517 344 340 248 277 158 167 53 All other4 233 456 664 630 595 651 578 518 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 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1982 1983 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 June Sept. Dec. Mar. June 1 Total 31,299 34,482 35,814 30,758 29,852 27,600 30,693 31,135 2 Payable in dollars 28,096 31,528 32,220 28,256 27,199 24,982 27,951 28,558 3 Payable in foreign currencies 3,203 2,955 3,595 2,502 2,653 2,618 2,741 2,577 By type 4 Financial claims 18,398 19,763 20,800 18,442 17,988 16,661 19,710 20,661 5 Deposits 12,858 14,166 14,747 13,680 12,882 12,134 15,059 15,820 6 Payable in dollars 11,936 13,381 14,122 13,310 12,469 11,709 14,581 15,398 7 Payable in foreign currencies 923 785 625 370 413 426 478 422 8 Other financial claims 5,540 5,597 6,053 4,762 5,106 4,527 4,651 4,841 9 Payable in dollars 3,714 3,914 3,599 3,194 3,419 2,895 3,006 3,238 10 Payable in foreign currencies 1,826 1,683 2,454 1,568 1,687 1,632 1,645 1,603 11 Commercial claims 12,901 14,720 15,014 12,316 11,864 10,939 10,983 10,474 12 Trade receivables 12,185 13,960 13,978 11,137 10,758 9,929 9,780 9,222 13 Advance payments and other claims 716 759 1,036 1,179 1,106 1,010 1,203 1,252 14 Payable in dollars 12,447 14,233 14,499 11,752 11,311 10,378 10,364 9,923 15 Payable in foreign currencies 454 487 516 564 552 561 619 551 By area or country Financial claims 16 Europe 6,179 6,069 4,573 4,734 4,884 4,670 6,066 7,198 17 Belgium-Luxembourg 32 145 43 13 16 10 58 12 IK France 177 298 285 324 326 134 90 137 19 Germany 409 230 224 148 215 178 127 217 20 Netherlands 53 51 50 56 62 32 140 136 21 Switzerland 73 54 117 74 60 107 99 48 22 United Kingdom 5,099 4,987 3,522 3,847 3,834 3,945 5,301 6,406 23 Canada 5,003 5,036 6,628 4,365 4,322 4,219 4,605 4,857 24 Latin America and Caribbean 6,312 7,811 8,620 8,319 7,727 6,884 8,147 7,577 25 Bahamas 2,773 3,477 3,556 3,762 3,389 3,108 3,747 3,147 26 Bermuda 30 135 18 42 16 8 10 103 27 Brazil 163 96 30 76 76 62 50 48 28 British West Indies 2,011 2,755 3,872 3,588 3,237 2,787 3,063 2,963 29 Mexico 157 208 313 274 268 274 352 348 30 Venezuela 143 137 148 134 133 139 156 152 31 Asia 601 607 758 802 846 698 712 726 32 Japan 199 189 366 327 268 153 233 225 33 Middle East oil-exporting countries2 16 20 37 33 30 15 18 14 34 Africa 258 208 173 156 165 158 153 154 35 Oil-exporting countries3 49 26 46 41 50 48 45 48 36 All other4 44 32 48 66 44 31 25 149 Commercial claims 37 Europe 4,922 5,544 5,382 4,330 4,227 3,755 3,592 3,392 38 Belgium-Luxembourg 202 233 234 211 178 150 140 144 39 France 727 1,129 776 636 646 473 489 495 40 Germany 593 599 559 394 427 356 419 358 41 Netherlands 298 318 299 291 267 347 309 242 42 Switzerland 272 354 427 414 291 339 227 303 43 United Kingdom 901 929 969 905 1,035 793 754 737 44 Canada 859 914 967 714 666 635 674 740 45 Latin America and Caribbean 2,879 3,766 3,479 2,789 2,772 2,513 2,690 2,714 46 Bahamas 21 21 12 30 19 21 30 30 47 Bermuda 197 108 223 225 154 259 172 108 48 Brazil 645 861 668 423 481 258 401 510 49 British West Indies 16 34 12 10 7 12 21 21 50 Mexico 708 1,102 1,022 750 869 767 886 951 51 Venezuela 343 410 424 383 373 351 288 273 52 3,451 3,522 3,954 3,422 3,091 3,033 3,126 2,741 53 Japan 1,177 1,052 1,244 1,249 973 1,047 1,115 854 54 Middle East oil-exporting countries2 765 825 905 809 111 748 701 696 55 Africa 551 653 772 648 660 588 559 527 56 Oil-exporting countries3 130 153 152 138 148 140 131 130 57 All other4 240 321 461 413 448 415 342 360 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

A64 International Statistics • December 1983 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1983 1983 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998811 11998822 Jan.- Oct. Apr. May June July Aug.' Sept. Oct.P U.S. corporate securities STOCKS 1 Foreign purchases 40,686 41,942 59,005 5,946 6,625 6,864 5,758 5,181R 5,514 5,503 2 Foreign sales 34,856 37,965 53,914 5,350 6,365 6,454 5,198 5,142' 5,116 5,392 3 Net purchases, or sales (-) 5,830 3,976 5,091 597 260 410 560 39' 398 111 4 Foreign countries 5,803 3,892 4,986 545 258 435 551 40' 390 107 5 Europe 3,662 2,616 4,346 648 302 202 442 97 r 260 -113 6 France 900 -143 31 29 -28 14 33 -77 -10 -36 7 Germany -22 333 1,051 222 86 -31 135 54 48 55 8 Netherlands 42 -60 -147 12 -81 -57 7 -13 -49 -15 9 Switzerland 288 -532 1,619 277 269 186 187 56 123 -18 10 United Kingdom 2,235 3,152 1,723 133 122 95 49 79 171 -149 11 Canada 783 221 965 122 92 98 1 75 154 124 12 Latin America and Caribbean -30 308 269 117 63 28 35 -98 104 -44 13 Middle East1 1,140 366 -865 -302 -192 36 -59 -88' -178 48 14 Other Asia 287 246 207 -44 0 68 146 75 51 93 15 Africa 7 2 39 8 3 1 0 7 4 -1 16 Other countries -46 131 26 -4 -10 2 -12 -28 -6 -1 17 Nonmonetary international and regional organizations 27 85 105 52 2 -25 9 -1 8 4 BONDS2 18 Foreign purchases 17,304 21,918 20,477 2,275 2,458 1,546 1,438 2,141' 1,888 2,548 19 Foreign sales 12,272 20,463 20,385 1,885 2,289 1,741 1,463 1,995' 1,960 2,454 20 Net purchases, or sales (-) 5,033 1,456 92 390 169 -195 -25 146' -72 93 21 Foreign countries 4,972 1,483 104 405 193 -197 -49 44' -77 190 22 Europe 1,351 2,081 571 405 474 -122 -74 115 14 303 23 France 11 295 -47 7 7 -7 -5 -6 0 2 24 Germany 848 2,116 239 47 85 -12 -8 25 41 66 25 Netherlands 70 28 43 1 12 -4 5 -3 1 11 26 Switzerland 108 161 543 209 188 28 -8 -1 -19 7 27 United Kingdom 196 -581 184 42 141 120 -33 112 32 136 28 Canada -12 25 103 -18 22 -10 53 -3 -10 22 29 Latin America and Caribbean 132 160 80 -3 10 19 13 -21 4 24 30 Middle East1 3,465 -748 -1,239 -56 -378 -168 -119 -121' -105 -200 31 Other Asia 44 -23 537 60 62 47 78 74 19 45 32 Africa -1 -19 0 -5 1 2 0 0 2 0 33 Other countries -7 7 52 21 2 35 0 0 -2 -4 34 Nonmonetary international and regional organizations 61 -28 -12 -14 -24 2 24 102 6 -97 Foreign securities 35 Stocks, net purchases, or sales (-) -247 -1,341 -3,641 -548 -641 -647 -487 -214' -106 -13 36 Foreign purchases 9,339 7,163 11,062 971 1,079 1,346 972 1,032 1,266 1,141 37 Foreign sales 9,586 8,504 14,703 1,519 1,720 1,993 1,458 1,246' 1,373 1,154 38 Bonds, net purchases, or sales (-) -5,460 -6,602 -3,132 -686 -838 127 -219 -463 -54 -172 39 Foreign purchases 17,553 29,843 30,266 2,396 2,655 3,220 2,534 2,708 3,714 3,902 40 Foreign sales 23,013 36,445 33,398 3,083 3,493 3,092 2,754 3,171 3,768 4,075 41 Net purchases, or sales (-), of stocks and bonds .... -5,707 -7,942 -6,773 -1,234 -1,479 -520 -706 -677' -160 -186 42 Foreign countries -4,694 -6,777 -6,332 -1,212 -973 -546 -715 -684' -146 -235 43 Europe -728 -2,481 -4,717 -672 -632 -583 -682 -301' 124 -338 44 Canada -3,697 -2,364 -1,567 -438 -287 5 55 -97 -355 6 45 Latin America and Caribbean 69 286 938 88 243 -80 47 62 -8 5 46 Asia -367 -1,845 -970 -221 -310 -182 -145 23 135 91 47 Africa -55 -9 140 25 9 13 11 14 16 11 48 Other countries 84 -364 -156 7 4 280 0 -385 -59 -10 49 Nonmonetary international and regional organizations -1,012 -1,165 -441 -22 -506 26 9 7 -14 49 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 A65 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1983 1983 Country or area 1981 1982 Jan- Apr. May June July Aug/ Sept. Oct. Oct. Holdings (end of period)1 1 Estimated total2 70,249 85,179 87,553 89,513 91,070 88,788 87,439 88,644 91,111 2 Foreign countries2 64,565 80,596 84,106 84,351 84,887 83,571 82,746 82,746 84,467 3 Europe2 24,012 29,284 33,583 33,628 33,638 33,081 32,996 33,392 34,442 4 Belgium-Luxembourg 543 447 -91 -76 -68 99 95 62 22 5 Germany2 11,861 14,841 17,799 16,954 16,877 16,314 16,119 16,155 16,570 6 Netherlands 1,991 2,754 3,230 3,255 3,251 3,262 3,234 3,034 2,987 7 Sweden 643 677 666 680 665 684 644 666 714 8 Switzerland2 846 1,540 1,070 914 877 855 965 1,087 1,177 9 United Kingdom 6,709 6,549 7,721 8,048 8,233 8,235 8,270 8,306 8,646 1 1 0 1 O Ea th st e e r rn W E es u t r e o rn p e Europe 1,41 0 9 2,476 0 3,188 0 3,855 0 3,803 0 3,631 0 3,669 0 4,083 0 4,328 0 12 Canada 514 602 707 874 982 1,057 1,087 1,062 1,264 13 Latin America and Caribbean 736 1,076 932 1,039 1,041 800 774 695 14 Venezuela 286 188 72 72 72 62 62 65 66 15 Other Latin America and Caribbean 319 656 676 775 773 636 622 631 540 16 Netherlands Antilles 131 232 184 192 196 188 116 78 89 17 Asia 38,671 49,502 48,766 48,686 49,094 48,394 47,690 47,391 47,932 18 Japan 10,780 11,578 11,858 12,130 12,592 12,763 13,007 13,210 13,446 19 Africa 631 77 80 79 79 79 79 79 79 20 All other 2 55 39 45 53 74 94 48 56 21 Nonmonetary international and regional organizations 5,684 4,583 3,447 5,162 6,183 5,217 4,693 5,898 6,644 22 International 5,638 4,186 2,969 4,514 5,372 4,500 4,086 5,421 6,094 23 Latin American regional 6 6 6 6 6 6 6 Transactions (net purchases, or sales (-) during period) 24 Total2 12,699 14,930 5,932 -1,141 1,960 1,557 -2,281 -1,350 1,205 2,467 25 Foreign countries2 11,604 16,031 3,871 1,026 245 536 -1,316 -826 0 1,721 26 Official institutions 11,730 14,508 2,143 351 34 418 -914 -885 5 579 27 Other foreign2 -126 1,518 1,732 675 211 118 -400 59 -5 1,142 28 Nonmonetary international and regional organizations 1,095 -1,096 2,062 -2,167 1,716 1,021 -966 -523 1,205 747 MEMO: Oil-exporting countries 79 Middle East3 11,156 7,534 -4,391 -109 -566 -277 -172 -1,764 -301 -400 30 -289 -552 -1 0 -1 0 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 Nov. 30, 1983 Rate on Nov. 30, 1983 Rate on Nov. 30, 1983 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 3.75 Mar. 1983 France1 12.0 Nov. 1983 Norway 8.0 June 1979 Belgium. 9.0 June 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.. 9.60 Nov. 1983 Japan 5.0 Oct. 1983 Venezuela Sept. 1982 Denmark 7.5 Apr. 1983 Netherlands 5.0 Sept. 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

A66 International Statistics • December 1983 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1983 CCoouunnttrryy,, oorr ttyyppee 11998800 11998811 11998822 May June July Aug. Sept. Oct. Nov. 1 Eurodollars 14.00 16.79 12.24 8.96 9.66 10.00 10.27 9.82 9.54 9.79 2 United Kingdom 16.59 13.86 12.21 10.18 9.91 9.84 9.83 9.63 9.34 9.26 3 Canada 13.12 18.84 14.38 9.30 9.41 9.42 9.49 9.35 9.31 9.40 4 Germany 9.45 12.05 8.81 5.27 5.52 5.54 5.66 5.83 6.13 6.26 5 Switzerland 5.79 9.15 5.04 4.48 4.98 4.77 4.61 4.40 4.07 4.11 6 Netherlands 10.60 11.52 8.26 5.65 5.81 5.58 6.03 6.15 6.07 6.17 7 France 12.18 15.28 14.61 12.51 12.59 12.33 12.33 12.42 12.42 12.31 8 Italy 17.50 19.98 19.99 17.75 17.72 17.50 17.50 17.42 17.51 17.71 9 Belgium 14.06 15.28 14.10 10.04 9.73 9.08 9.25 9.25 9.44 9.89 10 Japan 11.45 7.58 6.84 6.26'' 6.46 6.47 6.52 6.68 6.52 6.35 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 1983 CCoouunnttrryy// ccuurrrreennccyy 11998800 11998811 11998822 June July Aug. Sept. Oct. Nov. 1 Argentina/peso n.a. n.a. 20985.00 8.08 8.85 8.94 11.22 11.65 11.65 2 Australia/dollar1 114.00 114.95 101.65 87.72 87.54 87.93 88.77 91.3'' 91.59 3 Austria/schilling 12.945 15.948 17.060 17.974 18.208 18.799 18.754 18.305 18.900 4 Belgium/franc 29.237 37.194 45.780 50.928 51.862 53.609 53.841 53.034 54.538 5 Brazil/cruzeiro n.a. 92.374 179.22 517.28 571.73 643.34 701.38 784.35 870.21 6 Canada/dollar 1.1693 1.1990 1.2344 1.2323 1.2323 1.2338 1.2326 1.2320 1.2367 7 Chile/peso n.a. n.a. 51.118 77.500 78.987 80.011 81.767 83.710 85.600 8 China, P.R./yuan n.a. 1.7031 1.8978 1.9949 1.9966 1.9843 1.9867 1.9664 1.9940 9 Colombia/peso n.a. n.a. 64.071 77.380 78.997 80.707 82.494 84.196 85.938 10 Denmark/krone 5.6345 7.1350 8.3443 9.1287 9.3142 9.6308 9.5926 9.4172 9.6791 11 Finland/markka 3.7206 4.3128 4.8086 5.5351 5.5863 5.7063 5.7057 5.6390 5.7468 12 France/franc 4.2250 5.4396 6.5793 7.6621 7.7878 8.0442 8.0598 7.9526 8.1646 13 Germany/deutsche mark 1.8175 2.2631 2.428 2.5490 2.5914 2.6736 2.6679 2.6032 2.6846 14 Greece/drachma n.a. n.a. 66.872 84.486 84.677 89.217 92.837 92.968 96.229 15 Hong Kong/dollar n.a. 5.5678 6.0697 7.2822 7.1678 7.4416 8.0079 8.0947 7.8120 16 India/rupee 7.8866 8.6807 9.4846 10.049 10.0875 10.187 10.200 10.229 10.378 17 Indonesia/rupiah n.a. n.a. 660.43 973.00 978.57 984.09 986.24 984.12 988.84 18 Ireland/pound1 205.77 161.32 142.05 123.81 121.87 117.99 117.41 119.15 115.85 19 Israel/shekel n.a. n.a. 24.407 46.138 49.614 55.949 60.059 77.808 89.344 20 Italy/lira 856.20 1138.60 1354.00 1510.98 1533.41 1589.74 1602.62 1582.81 1625.79 21 Japan/yen 226.63 220.63 249.06 240.03 240.52 244.46 242.35 232.89 235.03 22 Malaysia/ringgit 2.1767 2.3048 2.3395 2.3244 2.3319 2.3523 2.3506 2.3451 2.3450 23 Mexico/peso 22.968 24.547 72.990 149.02 149.36 151.59 152.20 157.18 162.36 24 Netherlands/guilder 1.9875 2.4998 2.6719 2.8557 2.8985 2.9912 2.9844 2.9206 3.0078 25 New Zealand/dollar1 97.34 86.848 75.101 65.659 65.383 65.100 65.316 66.162 65.854 26 Norway/krone 4.9381 5.7430 6.4567 7.2678 7.3280 7.4641 7.4271 7.3244 7.4696 27 Peru/sol n.a. n.a. 694.59 1514.46 1645.99 1853.18 1995.33 2074.82 2131.13 28 Philippines/peso n.a. 7.8113 8.5324 10.393 11.050 11.050 11.050 13.750 14.050 29 Portugal/escudo 50.082 61.739 80.101 107.39 119.03 123.03 124.41 124.41 127.82 30 Singapore/dollar n.a. 2.1053 2.1406 2.1198 2.1294 2.1416 2.1417 2.1350 2.1334 31 South Africa/rand1 128.54 114.77 92.297 91.65 91.19 89.55 89.86 88.82 84.23 32 South KoreaVwon n.a. n.a. 731.93 775.82 779.88 787.19 790.83 791.37 796.32 33 Spain/peseta 71.758 92.396 110.09 143.29 147.973 151.302 152.022 151.30 154.66 34 Sri Lanka/rupee 16.167 18.967 20.756 23.050 24.082 24.257 24.397 24.410 24.572 35 Sweden/krona 4.2309 5.0659 6.2838 7.6351 7.6936 7.8585 7.8773 7.7844 7.9201 36 Switzerland/franc 1.6772 1.9674 2.0327 2.1123 2.1184 2.1632 2.1623 2.1122 2.1701 37 Taiwan/Dollar n.a. n.a. n.a. n.a. n.a. n.a. n.a. 39.420 38.780 38 Thailand/baht n.a. 21.731 23.014 22.990 22.990 22.990 22.990 22.990 22.990 39 United Kingdom/pound1 232.58 202.43 174.80 154.80 152.73 150.26 149.86 149.69 147.66 40 Venezuela/bolivar n.a. 4.2781 4.2981 11..13 12.595 15.600 13.833 13.088 12.782 MEMO: United States/dollar2 87.39 102.94 116.57 125.16 126.62 129.77 129.74 127.50 130.26 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 p. 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

A67 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading 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 1983 A84 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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 commercial banks, March 31, 1983 August 1983 A70 Assets and liabilities of commercial banks, June 30, 1983 December 1983 A68 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 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1983 August 1983 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1983 December 1983 A74 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • December 1983 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1" Consolidated Report of Condition; June 30, 1983 Millions of dollars Banks with foreign offices2 BBaannkkss IItteemm IInnssuurreedd wwiitthhoouutt Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ff oo oo ff rr ff ee iicc iigg ee nn ss 1 Total assets 1,807,081 1,296,731 384,240 979,759 510,334 2 Cash and due from depository institutions 295,500 234,361 124,014 110,347 60,996 3 Currency and coin (U.S. and foreign) 15,348 8,842 256 8,586 6,506 4 Balances with Federal Reserve Banks 15,938 10,143 172 9,970 5,796 5 Balances with other central banks 4,007 4,007 3,709 298 (4) 6 Demand balances with commercial banks in United States 20,571 88,,333311 235 88,,009966 1122,,223399 7 All other balances with depository institutions in United States and with banks in foreign countries 165,879 143,008 118,606 24,402 22,728 8 Time and savings balances with commercial banks in United States 23,976 15,116 9,678 5,438 8,820 9 Balances with other depository institutions in United States 1,314 111 663 113 538 10 Balances with banks in foreign countries 140,589 127,116 108,264 18,851 13,371 11 Foreign branches of other U.S. banks (4) 21,312 16,134 5,178 (4) 12 Other banks in foreign countries (4) 105,804 92,130 13,674 (4) 13 Cash items in process of collection 73,756 60,030 1,036 58,994 13,726 14 Total securities, loans, and lease financing receivables 1,376,005 949,453 211,041 738,412 426,552 15 Total securities, book value 285,516 150,357 11,686 138,671 135,159 16 U.S. Treasury 97,461 44,005 159 43,846 53,456 17 Obligations of other U.S. government agencies and corporations 41,969 16,618 30 16,588 25,351 18 Obligations of states and political subdivisions in United States 108,865 57,977 580 57,397 50,889 19 All other securities 37,220 31,756 10,917 20,839 5,463 20 Other bonds, notes, and debentures 14,846 10,676 8,203 2,472 4,171 21 Federal Reserve and corporate stock 2,037 1,468 147 1,321 569 22 Trading account securities 20,337 19,613 2,567 17,046 724 23 Federal funds sold and securities purchased under agreements to resell 74,194 45,990 631 45,360 28,204 24 Total loans, gross 1,026,002 754,890 198,026 556,864 271,113 25 LESS: Unearned income on loans 13,539 6,846 1,694 5,152 6,694 26 Allowance for possible loan loss 11,864 8,605 348 8,257 3,259 27 EQUALS: Loans, net 1,000,599 739,439 195,984 543,455 261,160 Total loans, gross, by category 28 Real estate loans 239,731 143,992 88,,888800 135,112 95,739 29 Construction and land development (4) (4) ((44)) 36,234 13,050 30 Secured by farmland (4) (4) (4) 989 1,651 31 Secured by residential properties (4) (4) (4) 70,134 52,331 32 1- to 4-family (4) (4> (4) 65,940 49,638 33 FHA-insured or VA-guaranteed (4) (4) (4) 4,359 2,439 34 Conventional (4) (4) (4) 61,581 47,199 35 Multifamily (4) (4) (4) 4,194 2,693 36 FHA-insured (4) (4) (4) 279 98 37 Conventional (4) (4) (4) 3,915 2,5% 38 Secured by nonfarm nonresidential properties (4) (4) (4) 27,756 28,707 39 Loans to financial institutions 101,689 93,756 33,507 60,249 7,933 40 REITs and mortgage companies in United States 5,484 4,798 41 4,757 686 41 Commercial banks in United States 15,181 10,365 863 9,502 4,816 42 U.S. branches and agencies of foreign banks (4) 5,297 595 4,702 (4) 43 Other commercial banks (4) 5,068 267 4,800 (4) 44 Banks in foreign countries 48,719 47,991 23,687 24,304 728 45 Foreign branches of other U.S. banks (4) 689 334 355 (4) 46 Other (4) 47,302 23,353 23,949 (4) 47 Finance companies in United States 10,355 9,894 365 9,529 461 48 Other financial institutions 21,950 20,708 8,551 12,157 1,242 49 Loans for purchasing or carrying securities 18,738 16,493 2,286 14,206 2,245 50 Brokers and dealers in securities 13,197 12,623 1,664 10,959 575 51 Other 5,541 3,870 623 3,247 1,671 52 Loans to finance agricultural production and other loans to farmers 13,678 7,523 710 6,814 6,155 53 Commercial and industrial loans 448,648 362,408 122,932 239,477 86,239 54 U.S. addressees (domicile) (4) 229,348 18,854 210,494 (4) 55 Non-U.S. addressees (domicile) (4) 133,060 104,077 28,983 (4) 56 Loans to individuals for household, family, and other personal expenditures 148,987 80,528 6,567 73,961 68,459 57 Installment loans (4) (4) (4) 60,848 55,977 58 Passenger automobiles (4) (4) (4) 17,099 23,633 59 Credit cards and related plans (4) (4) (4) 23,638 11,499 60 Retail (charge account) credit card (4) (4) (4) 19,745 9,926 61 Check and revolving credit (4) (4) (4) 3,893 1,573 62 Mobile homes (4) (4) (4) 3,077 3,495 63 Other installment loans (4) (4) (4) 17,034 17,350 64 Other retail consumer goods (4) (4) (4) 4,066 3,353 65 Residential property repair and modernization (4) (4) (4) 3,196 3,978 66 Other installment loans for household, family, and other personal expenditures (4) (4) (4) 9,771 10,019 67 Single-payment loans (4) (4) (4) 13,113 12,482 68 All other loans 54,532 50,189 23,144 27,044 4,343 69 Loans to foreign government and official institutions (4) 34,971 20,979 13,993 (4) 70 Other (4) 15,217 2,166 13,052 (4) 71 Lease financing receivables 15,696 13,667 2,740 10,927 2,029 72 Bank premises, furniture and fixtures, and other assets representing bank premises 26,640 16,401 1,676 14,725 10,239 li Real estate owned other than bank premises 3,934 2,448 83 2,365 1,486 /4 Intangible assets 1,164 613 0 0 525 /I All other assets 103,838 93,454 47,427 113,910 10,537 76 Investment in unconsolidated subsidiaries and associated companies 1,885 1,730 1,176 554 155 77 Customers' liability on acceptances outstanding 60,725 60,347 13,822 46,525 378 78 U.S. addressees (domicile) (4) 15,805 (4) (4) (4) 79 Non-U.S. addressees (domicile) (4) 44,542 (4) (4) (4) 80 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries .... (4) (4) 22,588 44,681 (4) 8811 Other 4411,,222288 3311,,337777 99,,884411 2222,,114499 99,,887777 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A69 4.22 Continued Banks with foreign offices2 BBaannkkss wwiitthhoouutt IItteemm IInnssuurreedd ffoorreeiiggnn Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ooffffiicceess 82 Total liabilities and equity capital5 1,807,081 1,296,731 (4) (4) 510,334 83 Total liabilities excluding subordinated debt 1,702,713 1,229,522 383,774 913,016 473,175 84 Total deposits 1,366,883 940,821 301,687 639,134 426,046 85 Individuals, partnerships, and corporations 1,083,835 702,342 160,329 542,013 381,476 86 U.S. government 2,873 1,910 407 1,502 963 87 States and political subdivisions in United States 55,674 25,680 830 24,850 29,993 88 All other 209,564 200,002 139,508 60,494 9,562 89 Foreign governments and official institutions 28,656 28,322 18,459 9,862 335 90 Commercial banks in United States 77,248 68,495 33,816 34,679 8,753 91 U.S. branches and agencies of foreign banks (4) 6,032 3,547 2,485 (4) 92 Other commercial banks in United States (4) 62,462 30,269 32,193 (4) 93 Banks in foreign countries 103,660 103,186 87,232 15,954 475 94 Foreign branches of other U.S. banks (4) 18,804 16,733 2,070 (4) 95 Other banks in foreign countries (4) 84,382 70,499 13,883 (4) % Certified and officers' checks, travelers checks, and letters of credit sold for cash 14,938 10,886 612 10,274 4,052 97 Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries 168,534 136,789 339 136,449 31,745 98 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 60,184 53,217 16,278 36,939 6,967 99 Interest-bearing demand notes (note balances) issued to U.S. Treasury 18,394 14,422 (4) 14,422 3,972 100 Other liabilities for borrowed money 41,790 38,795 16,278 22,517 2,995 101 Mortgage indebtedness and liability for capitalized leases 2,314 1,469 10 1,459 845 102 All other liabilities 104,798 97,226 65,460 99,035 7,572 103 Acceptances executed and outstanding 60,882 60,504 11,459 49,045 378 104 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries (4) (4) 44,681 22,588 (4) 105 Other 43,916 36,722 9,320 27,402 7,194 106 Subordinated notes and debentures 6,817 5,218 466 4,752 1,598 107 Total equity capital5 97,551 61,991 (4) (4) 35,560 108 Preferred stock 559 453 (4) (4) 106 109 Common stock 18,015 11,589 (4) (4) 6,399 110 32,046 18,858 (4) (4) 13,148 111 Undivided profits and reserve for contingencies and other capital reserves 46,931 31,091 (4) (4) 15,837 112 Undivided profits 46,126 30,767 (4) (4) 15,357 113 Reserve for contingencies and other capital reserves 805 324 (4) (4) 481 MEMO Deposits in domestic offices 114 Total demand 294,810 196,673 0 196,673 98,136 115 Total savings 320,667 174,125 0 174,125 146,542 116 Total time 449,703 268,336 0 268,336 181,367 117 Time deposits of $100,000 or more 237,920 172,895 0 172,895 65,026 118 Certificates of deposit (CDs) in denominations of $100,000 or more 194,406 134,038 0 134,038 60,368 119 Other 43,514 38,857 0 38,857 4,657 120 Super NOW accounts 14,354 6,321 6,321 6,321 8,033 121 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer). 44,796 22,461 0 22,461 22,335 122 All other savings deposits that are subject to a federal regulatory interest rate ceiling 97,039 48,028 48,028 48,028 49,011 123 Money market time deposits (a) in minimum denomination of $2,500 but less than $100,000 with original maturities of 26 weeks, and (b) in minimum denomination of $2,500 but less than $100,000 with original maturities of 91 days 110,523 48,039 0 48,039 62,484 124 All savers certificates 3,046 1,687 0 1,687 1,359 125 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 19,186 9,685 0 9,685 9,502 126 Demand deposits adjusted6 190,394 113,428 0 113,428 76,966 127 Standby letters of credit, total, and guarantees issued by the reporting bank's foreign offices. 105,882 99,486 25,325 74,161 6,396 128 U.S. addressees (domicile) (4) 72,944 (4) (4) (4) 129 Non-U.S. addressees (domicile) (4) 26,543 (4) (4) ((44)) 130 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 9,228 8,930 785 8,145 298 131 Holdings of commercial paper included in total gross loans (4) (4) (4) 537 1,306 Average for 30 calendar days (or calendar month) ending with report date 132 Total assets 1,770,336 1,265,747 308,885 956,862 504,455 133 Cash and due from depository institutions 277,046 220,960 115,384 105,577 55,953 134 Federal funds sold and securities purchased under agreements to resell 69,762 39,923 539 39,384 29,839 135 Total loans 1,003,926 741,762 197,156 544,606 262,164 136 Total deposits 1,435,997 1,015,362 388,643 626,720 420,623 137 Time CDs in denominations of $100,000 or more in domestic offices 194,175 (4) (4) 133,894 60,281 138 Federal funds purchased and securities sold under agreements to repurchase 172,992 140,421 455 139,966 32,571 139 Other liabilities for borrowed money 39,201 36,208 15,318 20,890 2,992 140 Number of banks 1,863 194 194 194 1,669 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • December 1983 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over Consolidated Report of Condition; June 30, 1983 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,490,092 1,254,643 954,941 299,702 235,449 2 Cash and due from depository institutions 171,343 146,706 107,963 38,743 24,637 3 Currency and coin (U.S. and foreign) 15,092 12,648 10,062 2,586 2,444 4 Balances with Federal Reserve Banks 15,766 14,283 10,891 3,392 1,483 5 Balances with other central banks 298 278 238 39 20 6 Demand balances with commercial banks in United States 20,336 13,734 1111,,113344 22,,660000 66,,660022 7 All other balances with depository institutions in United States and with banks in foreign countries 47,130 36,623 29,095 77,,552288 10,507 8 Time and savings balances with commercial banks in United States 14,257 10,110 8,263 11,,884488 4,147 9 Balances with other depository institutions in United States 651 274 236 38 377 10 Balances with banks in foreign countries 32,222 26,239 20,597 5,642 5,983 11 Cash items in process of collection 72,721 69,141 46,543 22,598 3,579 12 Total securities, loans, and lease financing receivables 1,164,964 968,178 741,698 226,480 196,786 13 Total securities, book value 273,830 213,655 161,657 51,999 60,175 14 U.S. Treasury 97,302 73,987 56,362 17,624 23,315 15 Obligations of other U.S. government agencies and corporations 41,940 30,075 25,061 5,014 11,865 16 Obligations of states and political subdivisions in United States 108,286 86,242 65,152 21,090 22,044 17 All other securities 26,303 23,352 15,081 8,271 2,951 18 Other bonds, notes, and debentures 6,643 4,184 3,163 1,021 2,459 19 Federal Reserve and corporate stock 1,890 1,654 1,221 433 236 20 Trading account securities 17,770 17,514 10,697 6,816 256 21 Federal funds sold and securities purchased under agreements to resell 73,563 63,407 49,012 14,395 10,157 22 Total loans, gross 827,977 698,576 536,867 161,709 129,401 23 LESS: Unearned income on loans 11,846 9,160 6,963 2,198 2,686 24 Allowance for possible loan loss 11,516 10,045 7,656 2,389 1,471 25 EQUALS: Loans, net 804,615 679,371 522,249 157,122 125,244 Total loans, gross, by category 26 Real estate loans 230,851 184,228 153,209 31,020 46,623 27 Construction and land development 49,283 41,606 33,083 8,523 7,677 28 Secured by farmland 2,640 1,923 1,738 186 716 29 Secured by residential properties 122,465 97,758 82,699 15,059 24,707 30 1- to 4-family 115,578 92,316 78,220 14,095 23,262 31 FHA-insured or VA-guaranteed 6,798 6,001 5,040 961 796 32 Conventional 108,780 86,314 73,180 13,134 22,466 33 Multifamily 6,887 5,442 4,479 964 1,445 34 FHA-insured 377 287 145 141 90 35 Conventional 6,511 5,156 4,333 822 1,355 36 Secured by nonfarm nonresidential properties 56,463 42,941 35,689 7,252 13,522 37 Loans to financial institutions 68,182 62,699 39,628 23,071 5,483 38 REITs and mortgage companies in United States 5,443 5,138 3,876 1,262 305 39 Commercial banks in United States 14,318 10,411 7,546 2,865 3,908 40 Banks in foreign countries 25,032 24,479 13,851 10,628 553 41 Finance companies in United States 9,990 9,717 6,240 3,477 273 42 Other financial institutions 13,399 12,954 8,115 4,839 445 43 Loans for purchasing or carrying securities 16,452 15,746 8,447 7,299 706 44 Brokers and dealers in securities 11,534 11,261 4,940 6,321 273 45 Other 4,918 4,485 3,507 978 433 46 Loans to finance agricultural production and other loans to farmers 12,968 11,311 10,292 1,018 1,658 47 Commercial and industrial loans 325,716 280,835 210,963 69,872 44,882 48 Loans to individuals for household, family, and other personal expenditures 142,420 114,675 94,962 19,713 27,745 49 Installment loans 116,825 94,114 78,726 15,388 22,712 50 Passenger automobiles 40,732 30,672 25,579 5,093 10,061 51 Credit cards and related plans 35,137 32,151 26,864 5,287 2,986 52 Retail (charge account) credit card 29,671 27,407 23,115 4,292 2,264 53 Check and revolving credit 5,466 4,744 3,749 995 723 54 Mobile homes 6,572 5,224 4,822 402 1,348 55 Other installment loans 34,384 26,067 21,462 4,605 8,316 56 Other retail consumer goods 7,419 5,929 4,919 1,010 1,490 57 Residential property repair and modernization 7,174 5,107 4,202 905 2,067 58 Other installment loans for household, family, and other personal expenditures 19,791 15,031 12,341 2,691 4,760 59 Single-payment loans 25,595 20,562 16,236 4,325 5,033 60 All other loans 31,388 29,082 19,366 9,716 2,306 61 Lease financing receivables 12,955 11,745 8,781 2,964 1,211 62 Bank premises, furniture and fixtures, and other assets representing bank premises 24,964 20,246 16,246 4,000 4,718 63 Real estate owned other than bank premises 3,851 3,108 2,514 594 743 64 Intangible assets 525 290 272 18 235 65 All other assets 124,446 116,116 86,248 29,868 8,331 66 Investment in unconsolidated subsidiaries and associated companies 709 591 458 133 118 67 Customers' liability on acceptances outstanding 46,903 46,203 33,668 12,535 700 68 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries .... 44,808 42,186 33,164 9,023 2,622 6699 Other 3322,,002266 2277,,113366 1188,,995588 88,,117788 44,,889900 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 70 Total liabilities and equity capital8 1,490,092 1,254,643 954,941 299,702 235,449 71 Total liabilities excluding subordinated debt 1,386,191 1,167,753 889,490 278,263 218,439 72 Total deposits 1,065,180 864,767 674,410 190,357 200,412 73 Individuals, partnerships, and corporations 923,489 743,493 588,642 154,850 179,996 74 U.S. government 2,465 2,067 1,560 507 398 75 States and political subdivisions in United States 54,843 41,049 34,148 6,901 13,794 76 All other 70,057 65,929 42,933 22,996 4,127 77 Foreign governments and official institutions 10,197 9,773 5,585 4,188 424 78 Commercial banks in United States 43,431 40,495 28,642 11,853 2,937 79 Banks in foreign countries 16,428 15,662 8,707 6,955 767 80 Certified and officers' checks, travelers checks, and letters of credit sold for cash 14,326 12,229 7,126 5,102 2,097 81 Demand deposits 294,810 251,356 185,014 66,342 43,453 82 Mutual savings banks 1,125 957 539 418 168 83 Other individuals, partnerships, and corporations 228,206 190,746 143,800 46,946 37,460 84 U.S. government 1,885 1,580 1,139 441 305 85 States and political subdivisions in United States 11,418 9,512 7,711 1,801 1,906 86 Ali other 37,849 36,332 24,698 11,634 1,517 87 Foreign governments and official institutions 1,536 1,460 839 621 76 88 Commercial banks in United States 29,810 28,563 20,938 7,625 1,247 89 Banks in foreign countries 6,504 6,310 2,922 3,388 193 90 Certified and officers' checks, travelers checks, and letters of credit sold for cash 14,326 12,229 7,126 5,102 2,097 91 Time deposits 449,703 360,813 284,823 75,991 88,890 92 Mutual savings banks 131 118 73 45 13 93 Other individuals, partnerships, and corporations 378,413 302,897 242,747 60,150 75,517 94 U.S. government 456 373 349 24 83 95 States and political subdivisions in United States 38,574 27,900 23,487 4,413 10,674 % All other 32,129 29,526 18,167 11,359 2,603 97 Foreign governments and official institutions 8,612 8,265 4,700 3,566 347 98 Commercial banks in United States 13,592 11,909 7,683 4,226 1,683 99 Banks in foreign countries 9,924 9,351 5,785 3,567 573 100 Savings deposits 320,667 252,598 204,574 48,024 68,069 101 Mutual savings banks 1 1 1 * * 102 Other individuals, partnerships, and corporations 315,613 248,774 201,483 47,291 66,839 103 Individuals and nonprofit organizations 283,331 224,554 181,877 42,677 58,777 104 Corporations and other profit organizations 32,282 24,220 19,606 4,614 8,062 105 U.S. government 124 114 72 43 9 106 States and political subdivisions in United States 4,851 3,637 2,950 687 1,213 107 All other 79 71 68 3 8 108 Foreign governments and official institutions 49 48 46 1 2 109 Commercial banks in United States 30 23 22 2 6 110 Banks in foreign countries * * * * * 111 Federal funds purchased and securities sold under agreements to repurchase 168,194 158,423 113,784 44,640 9,771 112 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 43,906 41,117 26,424 14,693 2,788 113 Interest-bearing demand notes (note balances) issued to U.S. Treasury 18,394 16,868 13,041 3,827 1,526 114 Other liabilities for borrowed money 25,512 24,250 13,384 10,866 1,262 115 Mortgage indebtedness and liability for capitalized leases 2,304 1,884 1,581 303 420 116 All other liabilities 106,608 101,560 73,290 28,270 5,047 117 Acceptances executed and outstanding 49,423 48,723 36,149 12,574 700 118 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 22,588 21,616 16,191 5,426 972 114 Other 34,596 31,221 20,951 10,270 3,376 120 Subordinated notes and debentures 6,351 5,325 3,303 2,022 1,026 121 Total equity capital8 97,551 81,566 62,149 19,417 15,985 MEMO 122 Time deposits of $100,000 or more 237,920 198,926 149,279 49,648 38,994 123 Certificates of deposit (CDs) in denominations of $100,000 or more 194,406 158,532 122,710 35,822 35,874 124 43,514 40,394 26,569 13,826 3,119 125 Super NOW accounts 14,354 10,835 9,278 1,558 3,518 126 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer). 44,796 34,942 29,045 5,897 9,854 127 All other savings deposits that are subject to a federal regulatory interest rate ceiling 97,039 75,110 60,716 14,395 21,929 128 Money market time deposits (a) in minimum denominations of $2,500 but less than $100,000 with original maturities of 26 weeks, and (b) in minimum denominations of $2,500 but less than $100,000 with original maturities of 91 days 110,523 84,408 70,933 13,475 26,115 129 All savers certificates 3,046 2,380 2,027 353 666 130 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 19,186 14,977 12,367 2,610 4,209 131 Demand deposits adjusted6 190,394 152,073 116,394 35,679 38,321 132 Standby letters of credit 80,557 77,144 51,801 25,343 3,413 133 Conveyed to others through participation (included in standby letters of credit) 8,443 8,359 5,314 3,046 84 134 Holdings of commercial paper included in total gross loans 1,844 1,251 928 322 593 Average for 30 calendar days (or calendar month) ending with report date 135 Total assets 1,461,318 1,229,090 931,986 297,105 232,227 136 Cash and due from depository institutions 161,530 138,954 103,630 35,323 22,576 137 Federal funds sold and securities purchased under agreements to resell 69,223 58,201 43,966 14,235 11,022 138 Total loans 806,770 681,405 523,522 157,883 125,366 139 Total deposits 1,047,343 849,629 663,267 186,362 197,714 140 Time CDs in denominations of $100,000 or more in domestic offices 194,175 158,360 122,623 35,737 35,815 141 Federal funds purchased and securities sold under agreements to repurchase 172,537 162,336 119,104 43,232 10,200 142 Other liabilities for borrowed money 23,882 22,680 12,087 10,592 1,203 143 Number of banks 1,863 1,135 960 175 728 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • December 1983 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1" Consolidated Report of Condition; June 30, 1983 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,915,074 1,434,167 1,104,289 329,878 480,907 2 Cash and due from depository institutions 207,221 163,466 121,966 41,500 43,755 3 Currency and coin (U.S. and foreign) 20,448 15,036 12,050 2,986 5,412 4 Balances with Federal Reserve Banks 17,911 15,946 12,259 3,686 1,965 5 Balances with other central banks 298 278 238 39 20 6 Demand balances with commercial banks in United States 3344,,886611 18,991 1155,,667777 33,,331144 1155,,887700 7 All other balances with depository institutions in United States and with banks in foreign countries 58,262 42,393 33,834 8,559 15,869 8 Cash items in process of collection 75,441 70,823 47,908 22,915 4,618 9 Total securities, loans, and lease financing receivables 1,535,367 1,123,198 870,584 252,614 412,170 10 Total securities, book value 407,035 268,950 207,586 61,363 138,085 11 U.S. Treasury 149,198 95,423 73,842 21,581 53,776 12 Obligations of other U.S. government agencies and corporations 78,597 44,915 37,384 7,531 33,682 13 Obligations of states and political subdivisions in United States 150,623 104,194 80,382 23,813 46,428 14 All other securities 28,616 24,418 15,979 8,439 4,199 15 Federal funds sold and securities purchased under agreements to resell 98,491 74,619 58,557 16,062 23,872 16 Total loans, gross 1,047,775 790,346 612,956 177,390 257,430 17 LESS: Unearned income on loans 17,531 11,608 8,962 2,646 5,923 18 Allowance for possible loan loss 13,778 11,045 8,503 2,542 2,733 19 EQUALS: Loans, net 1,016,466 767,692 595,491 172,201 248,774 Total loans, gross, by category 20 Real estate loans 307,912 215,900 179,211 36,688 92,013 21 Construction and land development 55,291 43,910 35,137 8,773 11,381 22 Secured by farmland 8,852 3,983 3,368 614 4,870 23 Secured by residential properties 168,280 117,392 98,619 18,773 50,888 24 1- to 4-family 160,003 111,407 93,689 17,717 48,597 25 Multifamily 8,277 5,985 4,930 1,056 2,292 26 Secured by nonfarm nonresidential properties 75,489 50,616 42,088 8,528 24,874 27 Loans to financial institutions 71,864 64,550 41,247 23,303 7,313 28 Loans for purchasing or carrying securities 17,058 15,991 8,662 7,329 1,067 29 Loans to finance agricultural production and other loans to farmers 38,516 20,858 18,104 2,754 17,658 30 Commercial and industrial loans 382,351 304,949 231,241 73,708 77,402 31 Loans to individuals for household, family, and other personal expenditures 195,289 137,598 113,939 23,659 57,691 32 Installment loans 155,533 111,160 92,785 18,375 44,372 33 Passenger automobiles 60,734 39,425 32,876 6,549 21,309 34 Credit cards and related plans 36,728 33,137 27,570 5,567 3,591 35 Mobile homes 9,559 6,554 5,914 640 3,005 36 All other installment loans for household, family, and other personal expenditures 48,512 32,044 26,425 5,619 16,468 3/ Single-payment loans 39,756 26,438 21,154 5,284 13,318 38 All other loans 34,785 30,499 20,551 9,948 4,286 39 Lease financing receivables 13,375 11,937 8,949 2,987 1,439 40 Bank premises, furniture and fixtures, and other assets representing bank premises 33,394 23,834 19,260 4,573 9,560 41 Real estate owned other than bank premises 5,163 3,600 2,907 694 1,563 42 Intangible assets 644 364 328 37 279 43 All other assets 133,285 119,705 89,245 30,461 13,580 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 44 Total liabilities and equity capital8 1,915,074 1,434,167 1,104,289 329,878 480,907 45 Total liabilities excluding subordinated debt 1,773,726 1,331,423 1,025,762 305,660 442,304 46 Total deposits 1,439,187 1,021,849 805,268 216,581 417,338 47 Individuals, partnerships, and corporations 1,263,132 886,558 707,761 178,797 376,573 48 U.S. government 3,256 2,420 1,861 559 836 49 States and political subdivisions in United States 84,069 52,600 43,941 8,660 31,469 50 All other 71,291 66,684 43,435 23,249 4,607 51 Certified and officers' checks, travelers checks, and letters of credit sold for cash 17,439 13,586 8,270 5,317 3,853 52 Demand deposits 365,173 281,495 210,373 71,122 83,678 53 Individuals, partnerships, and corporations 290,983 217,943 166,524 51,419 73,040 54 U.S. government 2,508 1,860 1,384 475 648 55 States and political subdivisions in United States 15,756 11,303 9,216 2,087 4,453 56 All other 38,487 36,803 24,979 11,823 1,684 57 Certified and officers' checks, travelers checks, and letters of credit sold for cash 17,439 13,586 8,270 5,317 3,853 58 Time deposits 629,500 434,458 345,944 88,514 195,042 59 Other individuals, partnerships, and corporations 537,816 368,621 297,126 71,495 169,195 60 U.S. government 600 433 393 40 167 61 States and political subdivisions in United States 58,415 35,616 30,057 5,559 22,799 62 All other 32,670 29,788 18,368 11,420 2,882 63 Savings deposits 444,515 305,896 248,951 56,945 138,618 64 Corporations and other profit organizations 38,471 26,743 21,647 5,096 11,728 65 Other individuals, partnerships, and corporations 395,862 273,251 222,465 50,786 122,611 66 U.S. government 149 127 84 43 21 67 States and political subdivisions in United States 9,899 5,681 4,668 1,013 4,217 68 All other 134 93 87 6 41 69 Federal funds purchased and securities sold under agreements to repurchase 173,335 161,199 116,065 45,134 12,135 70 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money 46,295 42,467 27,506 14,961 3,827 71 Mortgage indebtedness and liability for capitalized leases 2,701 2,033 1,702 331 668 72 All other liabilities 112,209 103,874 75,222 28,653 8,335 73 Subordinated notes and debentures 6,828 5,533 3,486 2,047 1,295 74 Total equity capital8 134,520 97,212 75,041 22,171 37,308 MEMO ITEMS 75 Time deposits of $100,000 or more 278,984 216,023 163,778 52.244 62,961 76 Certificates of deposit (CDs) in denominations of $100,000 or more 232,402 174,314 136,069 38.245 58,088 77 Other 46,582 41,708 27,709 13,999 4,874 78 Super NOW accounts 25,013 15,086 12,785 2,301 9,927 79 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer).. 66,680 44,320 36,942 7,378 22,360 80 All other savings deposits that are subject to a federal regulatory interest rate ceiling 137,805 92,731 75,135 17,597 45,074 81 Money market time deposits (a) in minimum denominations of $2,500 but less than $100,000 with original maturities of 26 weeks, and (b) in minimum denominations of $2,500 but less than $100,000 with original maturities of 91 days. .• 186,902 115,449 96,730 18,719 71,453 82 All savers certificates 4,362 2,919 2,475 443 1,444 83 Total Individual Retirement Accounts (IRA) and Keogh plan accounts 26,603 18,026 14,909 3,118 8,576 84 Demand deposits adjusted6 256,778 179,780 139,863 39,917 76,998 85 Total standby letters of credit 82,480 77,969 52,475 25,494 4,512 Average for 30 calendar days (or calendar month) ending with report date 86 Total deposits 1,419,990 1,005,820 793,363 212,457 414,169 87 Number of banks 14,496 5,758 4,714 1,044 8,738 1. Effective Dec. 31, 1978, the report of condition was substantially revised for 3. Foreign offices include branches in foreign countries and in U.S. territories commercial banks. Commercial banks with assets less than $100 million and with and possessions, subsidiaries in foreign countries, and all offices of Edge Act and domestic offices only were given the option to complete either the abbreviated or agreement corporations wherever located. the standard set of reports. Banks with foreign offices began reporting in greater 4. This item is unavailable for all or some of the banks because of the lesser detail on a consolidated domestic and foreign basis. These tables reflect the detail available from banks without foreign offices, the inapplicability of certain varying levels of reporting detail. items to banks that have only domestic offices, and the absence of detail on a fully Beginning Dec. 3, 1981, depository institutions may establish international consolidated basis for banks with foreign offices. banking facilities (IBFs). Activity of IBFs established by U.S. commercial banks 5. Equity capital is not allocated between the domestic and foreign offices of is reflected in the appropriate asset and liability line items in the domestic office banks with foreign offices. portion of the tables. Activity of IBFs established by Edge Act and Agreement 6. Demand deposits adjusted equal demand deposits other than domestic subsidiaries of U.S. commercial banks is reflected in the appropriate asset and commercial interbank and U.S. government less cash items in process of liability line items in the foreign office portion of the tables. When there is a collection. column for fully consolidated foreign and domestic data, activity of IBFs is 7. Domestic offices exclude branches in foreign countries and in U.S. terrireflected in the appropriate asset and liability line items in that portion of the tories and possessions, subsidiaries in foreign countries, and all offices of Edge tables. Act and agreement corporations wherever located. 2. All transactions between domestic and foreign offices of a bank are reported 8. This item contains the capital accounts of U.S. banks that have no Edge or in "Net due from" and "Net due to" (lines 79 and 103). All other lines represent foreign operations and reflects the difference between domestic office assets and transactions with parties other than the domestic and foreign offices of each bank. liabilities of U.S. banks with Edge or foreign operations excluding the capital Since these intraoffice transactions are erased by consolidation, total assets and accounts of their Edge or foreign subsidiaries. liabilities are the sum of all except intraoffice balances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • December 1983 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 19831 Millions of dollars All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies 1 Total assets5 209,080 154,367 54,713 133,889 9,268 42,885 10,142 7,725 5,171 2 Cash and due from depository institutions 37,096 33,603 3,494 31,081 632 3,189 1,619 335 240 3 Currency and coin (U.S. and foreign) 22 20 2 15 1 2 2 1 1 4 Balances with Federal Reserve Banks 1,165 1,094 72 933 30 50 24 117 12 5 Balances with other central banks 81 75 6 75 0 6 0 0 0 6 Demand balances with commercial banks in United States 1,463 1,251 212 1,154 119 84 53 22 30 7 All other balances with depository institutions in United States and with banks in foreign countries 34,277 31,081 3,196 28,828 481 3,045 1,537 192 195 8 Time and savings balances with commercial banks in United States 16,656 14,695 1,961 13,246 326 1,920 927 133 104 9 Balances with other depository institutions in United States 74 73 1 73 1 0 1 0 0 10 Balances with banks in foreign countries 17,546 16,312 1,234 15,509 154 1,125 609 59 91 11 Foreign branches of U.S. banks 1,714 1,689 25 1,620 8 22 59 0 6 12 Other banks in foreign countries 15,832 14,624 1,209 13,889 146 1,103 550 59 85 13 Cash items in process of collection 88 83 5 77 1 3 3 3 2 14 Total securities, loans, and lease financing receivables . 129,662 96,282 33,380 82,481 6,100 25,081 7,709 4,213 4,076 15 Total securities, book value 7,940 7,196 744 6,866 393 382 256 29 13 16 U.S. Treasury 5,309 4,914 395 4,743 326 91 124 23 2 17 Obligations of other U.S. government agencies and corporations 492 473 19 468 2 16 0 3 2 18 Obligations of states and political subdivisions in United States 82 72 10 48 0 1 23 1 9 19 Other bonds, notes, debentures, and corporate stock . 2,057 1,737 320 1,607 65 274 109 1 0 20 Federal funds sold and securities purchased under agreements to resell 7,993 6,716 1,276 6,071 670 586 471 141 53 By holder 21 Commercial banks in United States 7,178 6,140 1,038 5,549 457 553 427 141 50 22 Others 815 576 239 522 213 33 44 0 3 By type 23 One-day maturity or continuing contract 7,792 6,517 1,275 5,872 670 585 471 141 53 24 Securities purchased under agreements to resell . 311 224 87 74 52 23 35 115 12 25 Other 7,481 6,293 1,189 5,798 618 562 436 26 41 26 Other securities purchased under agreements to resell 201 199 1 199 0 1 0 0 0 27 Total loans, gross 121,849 89,168 32,681 75,690 5,714 24,736 7,458 4,186 4,065 28 LESS: Unearned income on loans 127 83 45 75 7 37 5 2 2 29 EQUALS: Loans, net 121,722 89,085 32,637 75,615 5,707 24,699 7,453 4,184 4,063 Total loans, gross, by category 30 Real estate loans 4,963 1,948 3,016 1,256 9 2,134 59 490 1,016 31 Loans to financial institutions 45,160 34,027 11,132 29,894 1,375 9,756 3,190 272 673 32 Commercial banks in United States 23,295 17,099 6,196 14,754 380 6,058 1,755 169 180 33 U.S. branches and agencies of other foreign banks . 20,535 14,591 5,943 12,943 328 5,871 1,103 136 154 34 Other commercial banks 2,760 2,508 252 1,811 52 186 652 33 26 35 Banks in foreign countries 20,396 15,758 4,638 14,301 833 3,582 1,105 102 473 36 Foreign branches of U.S. banks 607 518 89 404 12 116 75 0 0 37 Other 19,789 15,240 4,549 13,897 820 3,466 1,030 102 473 38 Other financial institutions 1,469 1,171 299 839 163 117 330 1 21 39 Loans for purchasing or carrying securities 478 453 25 377 25 75 0 1 0 40 Commercial and industrial loans 54,405 39,838 14,567 32,016 2,494 10,898 3,698 3,267 2,031 41 U.S. addressees (domicile) 30,959 21,665 9,294 15,320 849 7,711 3,115 2,493 1,471 42 Non-U.S. addressees (domicile) 23,446 18,172 5,273 16,696 1,645 3,188 583 774 560 43 Loans to individuals for household, family, and other personal expenditures 212 157 55 105 13 51 10 22 10 44 All other loans 16,631 12,745 3,886 12,042 1,799 1,822 501 134 333 45 Loans to foreign governments and official institutions 14,695 10,983 3,712 10,407 1,703 1,768 442 73 303 46 Other 1,936 1,762 174 1,635 96 54 59 61 30 47 Lease financing receivables 0 0 0 0 0 0 0 0 0 48 All other assets 34,329 17,767 16,562 14,255 1,866 14,030 342 3,035 802 49 Customers' liability on acceptances outstanding .... 10,589 7,790 2,799 7,432 291 2,479 126 210 50 50 U.S. addressees (domicile) 6,466 4,388 2,078 4,234 48 2,034 114 28 8 51 Non-U.S. addressees (domicile) 4,123 3,402 721 3,198 243 445 12 183 42 52 Net due from related banking institutions6 18,872 6,225 12,648 3,446 1,334 10,707 0 2,739 646 53 Other 4,868 3,752 1,116 3,377 240 843 216 86 105 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A75 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies 54 Total liabilities5 209,080 154,367 54,713 133,889 9,268 42,885 10,142 7,725 5,171 55 Total deposits and credit balances 98,533 84,069 14,464 74,366 4,340 9,974 2,970 5,182 1,701 56 Individuals, partnerships, and corporations 34,848 31,605 3,243 25,416 1,207 1,225 747 4,867 1,386 57 U.S. addressees (domicile) 23,389 23,326 63 17,647 37 269 658 4,764 14 58 Non-U.S. addressees (domicile) 11,459 8,279 3,180 7,769 1,170 956 90 103 1,372 59 U.S. government, states, and political subdivisions in United States 99 99 0 15 0 4 1 80 0 60 All other 63,585 52,365 11,220 48,936 3,132 8,746 2,222 234 315 61 Foreign governments and official institutions .... 5,894 4,832 1,062 4,463 941 389 37 36 27 62 Commercial banks in United States 23,463 18,482 4,981 16,771 1,178 4,083 11,,114455 122 164 63 U.S. branches and agencies of other foreign banks 15,628 12,517 3,110 11,662 384 3,102 398 22 61 64 Other commercial banks in United States 7,835 5,965 1,870 5,109 794 981 747 100 103 65 Banks in foreign countries 33,366 28,298 5,068 26,979 953 4,250 1,025 66 94 66 Foreign branches of U.S. banks 5,661 4,394 1,268 4,126 277 1,012 224 15 8 67 Other banks in foreign countries 27,705 23,904 3,801 22,853 675 3,238 801 52 86 68 Certified and officers' checks, travelers checks, and letters of credit sold for cash 862 753 110 722 60 24 15 11 30 69 Demand deposits 3,404 3,185 218 2,911 61 84 105 137 107 70 Individuals, partnerships, and corporations 1,703 1,614 89 1,418 0 49 86 87 63 71 U.S. addressees (domicile) 1,016 1,016 0 841 0 14 83 79 0 72 Non-U.S. addressees (domicile) 686 597 89 577 0 35 3 8 63 73 U.S. government, states, and political subdivisions in United States 5 5 0 4 0 0 0 1 0 74 All other 1,697 1,567 130 1,489 60 35 19 48 45 75 Foreign governments and official institutions .... 219 216 3 173 0 7 2 36 1 76 Commercial banks in United States 70 70 0 68 0 1 0 1 0 77 U.S. branches and agencies of other foreign banks 12 12 0 12 0 0 0 0 0 78 Other commercial banks in United States 58 58 0 55 0 1 0 1 0 79 Banks in foreign countries 546 529 17 526 0 3 2 1 14 80 Certified and officers' checks, travelers checks, and letters of credit sold for cash 862 753 110 722 60 24 15 11 30 81 Time deposits 94,098 80,121 13,977 70,891 4,092 9,799 2,787 4.971 1,558 82 Individuals, partnerships, and corporations 32,359 29,403 2,956 23,606 1,088 1,087 583 4,706 1,288 83 U.S. addressees (domicile) 21,835 21,835 0 16,505 0 212 503 4,615 0 84 Non-U.S. addressees (domicile) 10,524 7,568 2,956 7,101 1,088 875 80 91 11,,228888 85 U.S. government, states, and political subdivisions in United States 93 93 0 10 0 3 0 79 0 86 All other 61,645 50,625 11,021 47,274 3,004 8,709 2,203 186 270 87 Foreign governments and official institutions .... 5,646 4,613 1,033 4,287 916 380 36 0 26 88 Commercial banks in United States 23,322 18,357 4,965 16,649 1,163 44,,008822 11,,114444 120 164 89 U.S. branches and agencies of other foreign banks 15,585 12,475 3,110 11,619 384 3,101 398 22 61 90 Other commercial banks in United States 7,738 5,882 1,855 5,029 780 981 747 98 103 91 Banks in foreign countries 32,677 27,655 5,022 26,338 924 4,246 1,023 66 79 92 Savings deposits 555 508 47 315 0 69 78 72 20 93 Individuals, partnerships, and corporations 554 507 47 314 0 69 78 72 20 94 U.S. addressees (domicile) 403 403 0 234 0 29 71 68 0 95 Non-U.S. addressees (domicile) 151 104 47 80 0 40 6 4 20 96 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 97 All other 1 1 0 1 0 0 0 0 0 98 Credit balances 476 254 222 250 187 22 0 2 15 99 Individuals, partnerships, and corporations 232 81 151 77 118 20 0 2 14 KM) U.S. addressees (domicile) 134 71 63 67 37 15 0 i 14 101 Non-U.S. addressees (domicile) 98 10 88 10 82 5 0 0 0 102 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 103 All other 243 172 71 172 68 2 0 0 0 104 Foreign governments and official institutions .... 29 3 26 3 25 1 0 0 0 105 Commercial banks in United States 71 55 16 55 15 1 0 0 0 106 U.S. branches and agencies of other foreign banks 31 30 0 30 0 0 0 0 0 107 Other commercial banks in United States 40 25 15 25 15 0 0 0 0 108 Banks in foreign countries 143 114 29 114 29 0 0 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • December 1983 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies 109 Federal funds purchased and securities sold under agreement to repurchase 19,284 13,074 6,210 11,922 1,012 4,229 723 307 1,090 By holder 110 Commercial banks in United States 16,126 10,953 5,173 9,889 765 4,157 640 307 368 111 Others 3,158 2,121 1,037 2,033 247 72 83 0 722 By type 112 One-day maturity or continuing contract 18,092 11,963 6,129 10,852 975 4,185 684 307 1,090 113 Securities sold under agreements to repurchase .. 1,248 1,147 100 956 73 15 88 103 12 114 Other 16,845 10,816 6,029 9,896 902 4,170 596 204 11,,007777 115 Other securities sold under agreements to repurchase 1,191 1,110 81 1,071 37 44 40 0 0 116 Other liabilities for borrowed money 46,752 22,260 24,492 20,217 1,732 22,650 990 633 530 117 Owed to banks 43,079 19,152 23,927 17,176 1,727 22,044 989 614 529 118 U.S. addressees (domicile) 41,191 17,479 23,712 15,569 1,617 22,004 %7 579 455 119 Non-U.S. addressees (domicile) 1,888 1,673 215 1,607 110 39 22 35 74 120 Owed to others 3,673 3,108 565 3,041 5 607 1 19 0 121 U.S. addressees (domicile) 3,387 2,873 513 2,809 2 556 1 17 0 122 Non-U.S. addressees (domicile) 287 235 52 232 3 50 0 2 0 123 All other liabilities 44,511 34,965 9,546 27,383 2,183 6,031 5,459 1,604 1,851 124 Acceptances executed and outstanding 11,916 8,857 3,059 8,474 338 2,688 131 230 56 125 Net due to related banking institutions6 29,283 23,447 5,837 16,536 1,707 2,863 5,220 1,236 1,722 126 Other 3,312 2,661 650 2,373 139 481 107 138 73 MEMO 127 Time deposits of $100,000 or more 73,785 64,772 9,013 56,230 92 9,030 2,260 44,,886611 11,,331122 128 Certificates of deposit (CDs) in denominations of $100,000 or more 29,391 27,916 1,475 21,653 13 1,081 1,006 4,754 884 129 Other 44,395 36,856 7,538 34,578 78 7,949 1,254 107 428 130 Savings deposits authorized for automatic transfer and NOW accounts 78 57 20 39 0 11 6 9 13 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 0 0 0 0 0 0 0 0 0 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months 4,231 4,206 25 3,469 10 28 125 595 4 133 Acceptances refinanced with a U.S.-chartered bank .. 3,374 2,468 906 2,206 60 839 47 216 7 134 Statutory or regulatory asset pledge requirement 78,847 77,131 1,716 70,520 1,658 77 6,540 45 7 135 Statutory or regulatory asset maintenance requirement 9,130 8,528 603 5,002 203 487 329 2,711 397 136 Commercial letters of credit 7,605 4,950 2,655 4,3% 501 2,095 248 269 97 137 Standby letters of credit, total 16,077 13,796 2,281 12,348 423 1,304 717 463 823 138 U.S. addressees (domicile) 13,710 11,711 1,939 10,649 285 1,092 579 329 776 139 Non-U.S. addressees (domicile) 2,367 2,025 342 1,699 137 212 138 134 47 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 3,254 3,104 149 3,005 54 123 38 13 21 141 Holdings of commercial paper included in total gross loans 564 507 57 486 12 43 7 4 12 142 Holdings of acceptances included in total commercial and industrial loans 4,763 3,503 1,260 3,377 147 11,,110022 56 62 18 143 Immediately available funds with a maturity greater than one day (included in other liabilities for borrowed money) 32,857 13,493 19,364 12,019 1,442 17,998 770 370 258 144 Gross due from related banking institutions6 79,502 53,900 25,602 47,756 6,150 18,387 2,086 3,701 1,422 145 U.S. addressees (domicile) 20,185 9,451 10,734 5,959 1,439 8,868 69 3,323 528 146 Branches and agencies in the United States 19,837 9,262 10,575 5,771 1,385 8,763 68 3,322 528 147 In the same state as reporter 822 398 425 363 45 361 0 34 19 148 In other states 19,015 8,864 10,151 5,407 1,340 8,402 68 3,288 509 149 U.S. banking subsidiaries7 348 189 158 188 54 104 0 0 0 150 Non-U.S. addressees (domicile) 59,317 44,449 14,868 41,796 4,712 9,519 2,017 379 894 151 Head office and non-U.S. branches and agencies. 56,901 42,525 14,377 39,891 4,697 9,146 2,013 365 790 152 Non-U.S. banking companies and offices 2,415 1,924 491 1,905 15 373 4 13 104 153 Gross due to related banking institutions6 89,913 71,122 18,791 60,846 6,523 10,542 7,305 2,198 2,498 154 U.S. addressees (domicile) 20,877 14,683 6,193 9,409 2,021 2,977 3,441 1,577 1,452 155 Branches and agencies in the United States 20,502 14,525 5,977 9,287 1,868 2,914 3,435 1,574 1,423 156 In the same state as reporter 656 277 379 246 30 317 0 31 32 157 In other states 19,846 14,248 5,598 9,042 1,838 2,597 3,435 1,543 1,391 158 U.S. banking subsidiaries7 374 158 216 122 153 63 6 2 29 159 Non-U.S. addressees (domicile) 69,036 56,439 12,598 51,437 4,502 7,565 3,864 622 1,046 160 Head office and non-U.S. branches and agencies. 67,079 54,618 12,461 49,711 4,484 7,454 3,777 622 1,031 161 Non-U.S. banking companies and offices 1,957 1,821 136 1,726 19 111 87 0 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies All 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies Average for SO calendar days (or calendar month) ending with report date 162 Total assets 204,088 149,540 54,548 130,181 8,851 42,722 9,301 7,611 5,423 163 Cash and due from depository institutions 34,671 31,433 3,238 29,109 520 3,070 1,450 315 207 164 Federal funds sold and securities purchased under agreements to resell 5,911 4,391 1,521 4,052 1,013 514 183 113 36 165 Total loans 118,958 86,819 32,139 74,090 5,071 24,603 7,092 3,967 4,134 166 Loans to banks in foreign countries 19,680 15,046 4,634 13,884 785 3,570 886 78 477 167 Total deposits and credit balances 89,435 75,846 13,589 66,803 4,175 9,187 2,421 5,159 1,689 168 Time CDs in denominations of $100,000 or more 29,664 28,229 11,,443344 21,958 13 1,051 999 4,800 842 169 Federal funds purchased and securities sold under agreements to repurchase 19,118 12,433 6,685 10,910 1,032 4,712 1,085 306 1,072 170 Other liabilities for borrowed money 44,922 20,984 23,938 18,919 1,775 22,074 1,122 549 484 171 Number of reports filed8 426 241 185 149 40 114 43 33 47 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, footnote 6). On the former monthly branch and agency report, available through "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign the G. 11 statistical release, gross balances were included in total assets and total Banks." This form was first used for reporting data as of June 30, 1980. From liabilities. Therefore, total asset and total liability figures in this table are not November 1972 through May 1980, U.S. branches and agencies of foreign banks comparable to those in the G.ll tables. had filed a monthly FR 886a report. Aggregate data from that report were 6. "Related banking institutions" includes the foreign head office and other available through the Federal Reserve statistical release G.ll, last issued on U.S. and foreign branches and agencies of the bank, the bank's parent holding July 10, 1980. Data in this table and in the G.ll tables are not strictly comparable company, and majority-owned banking subsidiaries of the bank and of its parent because of differences in reporting panels and in definitions of balance sheet holding company (including subsidiaries owned both directly and indirectly). items. Gross amounts due from and due to related banking institutions are shown as 2. Includes the District of Columbia. memo items. 3. Includes all offices that have the power to accept deposits from U.S. 7. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majorityresidents, including any such offices that are considered agencies under state law. owned by the foreign bank and by related foreign banks and includes U.S. offices 4. Agencies account for virtually all of the assets and liabilities reported in of U.S.-chartered commercial banks, of Edge Act and Agreement corporations, California. and of New York State (Article XII) investment companies. 5. Total assets and total liabilities include net balances, if any, due from or due 8. In some cases two or more offices of a foreign bank within the same to related banking institutions in the United States and in foreign countries (see metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 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 STEVEN M. ROBERTS, Assistant to the Chairman DONALD L. KOHN, Deputy Staff Director FRANK O'BRIEN, JR., Deputy Assistant to the Board STANLEY J. SIGEL, Assistant to the Board ANTHONY F. COLE, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM R. JONES, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director EDWARD C. ETTIN, Deputy Director MICHAEL BRADFIELD, General Counsel MICHAEL J. PRELL, Deputy Director J. VIRGIL MATTINGLY, JR., Associate General Counsel JOSEPH S. ZEISEL, Deputy Director GILBERT T. SCHWARTZ, Associate General Counsel JARED J. ENZLER, 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 MARY ELLEN 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 ROBERT M. FISHER, Assistant Director SUSAN J. LEPPER, Assistant Director WILLIAM W. WILES, Secretary THOMAS D. SIMPSON, Assistant Director BARBARA R. LOWREY, Associate Secretary LAWRENCE SLIFMAN, Assistant Director JAMES MCAFEE, Associate Secretary STEPHEN P. TAYLOR, Assistant Director PETER A. TINSLEY, Assistant Director LEVON H. GARABEDIAN, Assistant Director DIVISION OF CONSUMER (Administration) AND COMMUNITY AFFAIRS GRIFFITH L. GARWOOD, Director DIVISION OF INTERNATIONAL FINANCE JERAULD C. KLUCKMAN, Associate Director GLENN E. LONEY, Assistant Director EDWIN M. TRUMAN, Director DOLORES S. SMITH, Assistant Director ROBERT F. GEMMILL, Senior Associate Director CHARLES J. SIEGMAN, Senior Associate Director LARRY J. PROMISEL, Associate Director DIVISION OF BANKING DALE W. HENDERSON, Deputy Associate Director SUPERVISION AND REGULATION SAMUEL PIZER, Staff Adviser 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

A79 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 STEPHEN R. MALPHRUS, Assistant Staff Director JOSEPH W. DANIELS, SR., Equal Employment Opportunity EDWARD T. MULRENIN, Assistant Staff Director Programs Adviser DIVISION OF DATA PROCESSING DIVISION OF FEDERAL RESERVE BANK OPERATIONS CHARLES L. HAMPTON, Director BRUCE M. BEARDSLEY, Deputy Director CLYDE H. FARNSWORTH, JR., Director GLENN L. CUMMINS, Assistant Director ELLIOTT C. MCENTEE, Associate Director NEAL H. HILLERMAN, Assistant Director DAVID L. ROBINSON, Associate Director ELIZABETH A. JOHNSON, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director RICHARD J. MANASSERI, Assistant Director WALTER ALTHAUSEN, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director CHARLES W. BENNETT, Assistant Director ROBERT J. ZEMEL, Assistant Director ANNE M. DEBEER, Assistant Director JACK DENNIS, JR., Assistant Director RICHARD B. GREEN, Assistant Director DIVISION OF PERSONNEL EARL G. HAMILTON, Assistant Director * JOHN F. SOBALA, Assistant Director DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller BRENT L. BOWEN, Assistant Controller DIVISION OF SUPPORT SERVICES DONALD E. ANDERSON, Director ROBERT E. FRAZIER, Associate Director WALTER W. KREIMANN, Associate Director *On loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Bulletin • December 1983 Federal Open Market Committee 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. AXILRQD, 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 and Advisory Councils 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 THRIFT INSTITUTIONS ADVISORY COUNCIL HARRY W. ALBRIGHT, New York, New York, President THOMAS R. BOMAR, Miami, Florida, Vice President JAMES A. ALIBER, Detroit, Michigan NORMAN M. JONES, Fargo, North Dakota GENE R. ARTEMENKO, Chicago, Illinois ROBERT R. MASTERTON, Portland, Maine JOHN R. EPPINGER, Villanova, Pennsylvania JAMES F. MONTGOMERY, Beverly Hills, California MARY A. GRIGSBY, Houston, Texas FRED A. PARKER, Monroe, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 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- $1.00; 10 or more to one address, $.85 each. TIONS. 1974. 125 pp. OPEN MARKET POLICIES AND OPERATING PROCEDURES— ANNUAL REPORT. STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or one address, $1.75 each. $2.00 each in the United States, its possessions, Canada, REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHAand Mexico; 10 or more of same issue to one address, NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. $18.00 per year or $1.75 each. Elsewhere, $24.00 per 1972. 220 pp. Each Volume $3.00; 10 or more to one year or $2.50 each. address, $2.50 each. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint THE ECONOMETRICS OF PRICE DETERMINATION CONFERof Part I only) 1976. 682 pp. $5.00. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 BANKING AND MONETARY STATISTICS. 1941-1970. 1976. pp. Cloth ed. $5.00 each; 10 or more to one address, 1,168 pp. $15.00. $4.50 each. Paper ed. $4.00 each; 10 or more to one ANNUAL STATISTICAL DIGEST address, $3.60 each. 1971-75. 1976. 339 pp. ens5.00 per copy. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1972-76. 1977. 377 pp. $10.00 per copy, FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1973-77. 1978. 361 pp. $12.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1974-78. 1980. 305 pp. $10.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1970-79. 1981. 587 pp. $20.00 per copy. 1973. 271 pp. $3.50 each; 10 or more to one address, 1980. 1981. 241 pp. $10.00 per copy. $3.00 each. 1981. 1982. 239 pp. $ 6.50 per copy. IMPROVING THE MONETARY AGGREGATES: REPORT OF THE 1982. 1983. 266 pp. $ 7.50 per copy. ADVISORY COMMITTEE ON MONETARY STATISTICS. FEDERAL RESERVE CHART BOOK. Issued four times a year in 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 February, May, August, and November. Subscription each. includes one issue of Historical Chart Book. $7.00 per ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— year or $2.00 each in the United States, its possessions, Regulation Z) Vol. I (Regular Transactions). 1969. 100 Canada, and Mexico. Elsewhere, $10.00 per year or pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each $3.00 each. volume $1.00; 10 or more of same volume to one HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- address, $.85 each. tion to the Federal Reserve Chart Book includes one FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY issue. $1.25 each in the United States, its possessions, UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one Canada, and Mexico; 10 or more to one address, $1.00 address, $1.50 each. each. Elsewhere, $1.50 each. THE BANK HOLDING COMPANY MOVEMENT TO 1978: A SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in one address, $2.25 each. the United States, its possessions, Canada, and Mexico; IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. 10 or more of same issue to one address, $13.50 per year 1978. 170 pp. $4.00 each; 10 or more to one address, or $.35 each. Elsewhere, $20.00 per year or $.50 each. $3.75 each. THE FEDERAL RESERVE ACT, as amended through April 20, 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. 1983. with an appendix containing provisions of certain FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 other statutes affecting the Federal Reserve System. 576 each; 10 or more to one address, $1.50 each. pp. $7.00. INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- 10 or more to one address, $1.25 each. ERAL RESERVE SYSTEM. PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY $13.50 each. OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- 48 pp. $.25 each; 10 or more to one address, $.20 each. SERVE STAFF STUDY, 1981. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: ERNMENT SECURITIES MARKET; STAFF STUDIES—PART REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL 1, 1970. 86 pp. $.50 each; 10 or more to one address, $.40 ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. each. PART 2, 1971. Out of print. PART 3, 1973. 131 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- STAFF STUDIES.- Summaries Only Printed in the ed at least monthly. (Requests must be prepaid.) Bulletin Consumer and Community Affairs Handbook. $60.00 per Studies and papers on economic and financial subjects year. that are of general interest. Requests to obtain single copies Monetary Policy and Reserve Requirements Handbook. of the full text or to be added to the mailing list for the series $60.00 per year. may be sent to Publications Services. Securities Credit Transactions Handbook. $60.00 per year. Federal Reserve Regulatory Service. 3 vols. (Contains all 113. BELOW THE BOTTOM LINE: THE USE OF CONTINGENthree Handbooks plus substantial additional material.) CIES AND COMMITMENTS BY COMMERCIAL BANKS, by $175.00 per year. Benjamin Wolkowitz and others. Jan. 1982. 186 pp. Rates for subscribers outside the United States are as 114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE follows and include additional air mail costs: ON COMPETITION AND PERFORMANCE IN BANKING Federal Reserve Regulatory Service, $225.00 per year. MARKETS, by Timothy J. Curry and John T. Rose. Jan. Each Handbook, $75.00 per year. 1982. 9 pp. WELCOME TO THE FEDERAL RESERVE, December 1982. 115. COSTS, SCALE ECONOMIES, COMPETITION, AND PROD- PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- UCT MIX IN THE U.S. PAYMENTS MECHANISM, by CATIONS David B. Humphrey. Apr. 1982. 18 pp. SUSTAINABLE RECOVERY: SETTING THE STAGE, November 116. DIVISIA MONETARY AGGREGATES: COMPILATION, 1982. DATA, AND HISTORICAL BEHAVIOR, by William A. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT ANNUAL Barnett and Paul A. Spindt. May 1982. 82 pp. HUMAN RELATIONS AWARD DINNER, December 1982. 117. THE COMMUNITY REINVESTMENT ACT AND CREDIT REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT DEDICATION ALLOCATION, by Glenn Canner. June 1982. 8 pp. CEREMONIES: FEDERAL RESERVE BANK OF SAN FRAN- 118. INTEREST RATES AND TERMS ON CONSTRUCTION CISCO, March 1983. LOANS AT COMMERCIAL BANKS, by David F. Seiders. RESTORING STABILITY. REMARKS BY CHAIRMAN PAUL A. July 1982. 14 pp. VOLCKER, April 1983. 119. STRUCTURE-PERFORMANCE STUDIES IN BANKING: AN CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON UPDATED SUMMARY AND EVALUATION, by Stephen A. COSTS, PRICES, AND RETAIL SALES. Rhoades. Aug. 1982. 15 pp. July 1983. 114 pp. 120. FOREIGN SUBSIDIARIES OF U.S. BANKING ORGANIZA- TIONS, by James V. Houpt and Michael G. Martinson. Oct. 1982. 18 pp. 121. REDLINING: RESEARCH AND FEDERAL LEGISLATIVE CONSUMER EDUCATION PAMPHLETS RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. Short pamphlets suitable for classroom use. Multiple 122. BANK CAPITAL TRENDS AND FINANCING, by Samuel H. copies available without charge. Talley. Feb. 1983. 19 pp. Out of print. 123. FINANCIAL TRANSACTIONS WITHIN BANK HOLDING Alice in Debitland COMPANIES, by John T. Rose and Samuel H. Talley, Consumer Handbook to Credit Protection Laws May 1983. 11 pp. The Equal Credit Opportunity Act and . . . Age 124. INTERNATIONAL BANKING FACILITIES AND THE EURO- The Equal Credit Opportunity Act and . . . Credit Rights in DOLLAR MARKET, by Henry S. Terrell and Rodney H. Housing Mills, August 1983. 14 pp. The Equal Credit Opportunity Act and . . . Doctors, Law- 125. SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY yers, Small Retailers, and Others Who May Provide Inci- AGGREGATES: A MODEL-BASED APPROACH, by David dental Credit A. Pierce, Michael R. Grupe, and William P. Cleveland, The Equal Credit Opportunity Act and . . . Women August 1983. 23 pp. Fair Credit Billing Federal Reserve Glossary Guide to Federal Reserve Regulations How to File A Consumer Credit Complaint REPRINTS OF BULLETIN ARTICLES If You Borrow To Buy Stock Most of the articles reprinted do not exceed 12 pages. If You Use A Credit Card Series on the Structure of the Federal Reserve System Survey of Finance Companies, 1980. 5/81. The Board of Governors of the Federal Reserve System Bank Lending in Developing Countries. 9/81. The Federal Open Market Committee The Commercial Paper Market since the Mid-Seventies. 6/82. Federal Reserve Bank Board of Directors Applying the Theory of Probable Future Competition. 9/82. Federal Reserve Banks International Banking Facilities. 10/82. Monetary Control Act of 1980 U.S. International Transactions in 1982. 4/83. Organization and Advisory Committees New Federal Reserve Measures of Capacity and Capacity Truth in Leasing Utilization. 7/83. U.S. Currency Foreign Experience with Targets for Money Growth. 10/83. What Truth in Lending Means to You Intervention in Foreign Exchange Markets: A Summary of Ten Staff Studies. 11/83. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM1 Approximate Date or period Weekly Releases release days to which data refer Aggregate Reserves of Depository Instututions and Monetary Base. Monday Week ended previous H.3 (502) [1.22] Wednesday Actions of the Board; Applications and Reports. H.2 (501) Friday Week ended previous Saturday Assets and Liabilities of Domestically Chartered and Foreign Related Wednesday Wednesday, 2 weeks earlier Banking Institutions. H.8 (510) [1.25] Changes in State Member Banks. K.3 (615) Tuesday Week ended previous Saturday Factors Affecting Reserves of Depository Institutions and Condition Friday Week ended previous Statement of Federal Reserve Banks. H.4.1 (503) [1.11] Wednesday Foreign Exchange Rates. H.10 (512) [3.28] Monday Week ended previous Friday Money Stock Measures and Liquid Assets. H.6 (508) [1.21] Friday Week ended Wednesday of previous week Selected Borrowings in Immediately Available Funds of Large Thursday Week ended Thursday of Member Banks. H.5 (507) [1.13] previous week Selected Interest Rates. H.15 (519) [1.35] Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Banks Friday Wednesday, 1 week earlier and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.27, 1.28. 1.29, I.291] Weekly Summary of Reserves and Interest Rates. H.9 (511) Friday Week ended previous Wednesday; and week ended Wednesday of previous week Monthly Releases Capacity Utilization: Manufacturing, Mining, Utilities and Industrial Mid month Previous month Materials. G.3 (402) [2.11] Changes in Status of Banks and Branches. G.4.5 (404) 1st of month Previous month Consumer Installment Credit. G.19 (421) [1.56, 1.57] 14th working day 2nd month previous of month Debits and Deposit Turnover at Commercial Banks. G.6 (406) [1.20] 12th of month Previous month Finance Companies. G.20 (422) [1.52, 1.53] 5 th working day 2nd month previous month Foreign Exchange Rates. G.5 (405) [3.28] 1st of month Previous month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The BULLETIN table that reports these data is designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 Approximate Date or period Monthly Releases—Continued release days to which data refer Industrial Production. G.12.3 (414) [2.13] Mid month Previous month Loan Commitments at Selected Large Commercial Banks. G.21 (423) 5th of month 2nd month previous Loans and Securities at all Commercial Banks. G.7 (407) [1.23] 20th of month Previous month Major Nondeposit Funds of Commercial Banks. G.10 (411) [1.24] 20th of month Previous month Maturity Distribution of Outstanding Negotiable Time Certificates of 24th of month Last Wednesday of previous Deposit. G.9 (410) month Monthly Report of Assets and Liabilities of International Banking 2nd Monday of Wednesday, 2 weeks earlier Facilities. G. 14 (518) month Research Library—Recent Acquisitions. G.15 (417) 1st of month Previous month Selected Interest Rates. G. 13 (415) [1.35] 3rd working day of Previous month month Summary of Equity Security Transactions. G. 16 (418) Last week of month Release date Quarterly Releases Agricultural Finance Databook. E.15 (125) End of March, January, April, July, and June, September, October and December Flow of Funds Summary Statistics Z.7 (788) [1.58, 1.59] 15th of February, Previous quarter May, August, and November Geographical Distribution of Assets and Liabilities of Major Foreign 15th of March, Previous quarter Branches of U.S. Banks. E.ll (121) June, September, and December Survey of Terms of Bank Lending. E.2 (111) [1.34] 15th of March, February, May, August and June, September, November and December Semiannual Releases Domestic Offices, Commercial Bank Assets and Liabilities May and November End of previous December Consolidated Report of Condition. E.3.4 (113) [1.26, 1.27, 1.28] and June Check Collection Services—Federal Reserve System. E.9 (119) February and July Previous 6 months Country Exposure Lending Survey. E. 16 (126) May and November End of previous December and June List of OTC Margin Stocks. E.7 (117) February, June and Release date October Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Approximate Date or period release days to which data refer Annual Releases Aggregate Summaries of Annual Surveys of Security Credit February End of previous June Extension. C.2 (101) Bank Holding Companies and Subsidiary Banks (Domestic and March Previous year Foreign). C.6 (105) Bank Holding Companies and Subsidiary Banks (Domestic only) March Previous year C.5 (104) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 Index to Statistical Tables References are to pages A3 through A77 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 9, 24, 26 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 25 Banks, by classes, 17-21, 69, 71, 73 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and Banks, by classes, 17-20, 68-73 corporations, 23 Domestic finance companies, 37 Turnover, 14 Federal Reserve Banks, 10 Depository institutions Foreign banks, U.S. branches and agencies, 22, 74-77 Reserve requirements, 7 Nonfinancial corporations, 36 Reserves and related items, 3, 4, 5, 12 Savings institutions, 28 Deposits (See also specific types) Automobiles Banks, by classes, 3, 17-21, 28, 69, 71, 73 Consumer installment credit, 40, 41 Federal Reserve Banks, 4, 10 Production, 46, 47 Turnover, 14 Discount rates at Reserve Banks and at foreign central BANKERS acceptances, 9, 24, 26 banks (See Interest rates) Bankers balances, 17-20, 68, 70, 72 Discounts and advances by Reserve Banks (See Loans) (See also Foreigners) Dividends, corporate, 35 Bonds (See also U.S. government securities) New issues, 34 EMPLOYMENT, 44, 45 Rates 3 Eurodollars, 26 Branch banks, 14, 21, 54, 74-77 Business activity, nonfinancial, 44 FARM mortgage loans, 39 Business expenditures on new plant and equipment, 36 Federal agency obligations, 4, 9, 10, 11, 32 Business loans (See Commercial and industrial loans) Federal credit agencies, 33 Federal finance CAPACITY utilization, 44 Debt subject to statutory limitation and types and Capital accounts ownership of gross debt, 31 Banks, by classes, 17, 69, 71, 73 Receipts and outlays, 29, 30 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 29 Central banks, discount rates, 65 Treasury operating balance, 29 Certificates of deposit, 21, 26 Federal Financing Bank, 29, 33 Commercial and industrial loans Federal funds, 3, 5, 16, 18, 19, 20, 22, 26, 29 Commercial banks, 15, 21, 25, 68, 70, 72, 74 Federal Home Loan Banks, 33 Weekly reporting banks, 18-22 Federal Home Loan Mortgage Corporation, 33, 38, 39 Commercial banks Federal Housing Administration, 33, 38, 39 Assets and liabilities, 17-20, 68-73 Federal Land Banks, 39 Business loans, 25 Federal National Mortgage Association, 33, 38, 39 Commercial and industrial loans, 15, 21, 22, 25 Federal Reserve Banks Consumer loans held, by type, and terms, 40, 41 Condition statement, 10 Loans sold outright, 20 Discount rates (See Interest rates) Nondeposit fund, 16 U.S. government securities held, 4, 10, 11, 31 Number, by classes, 17, 69, 71, 73 Federal Reserve credit, 4, 5, 10, 11 Real estate mortgages held, by holder and property, 39 Federal Reserve notes, 10 Time and savings deposits, 3 Federally sponsored credit agencies, 33 Commercial paper, 3, 24, 26, 37 Finance companies Condition statements (See Assets and liabilites) Assets and liabilities, 37 Construction, 44, 48 Business credit, 37 Consumer installment credit, 40, 41 Loans, 18, 19, 40, 41 Consumer prices, 44, 49 Paper, 24, 26 Consumption expenditures, 50, 51 Financial institutions Corporations Loans to, 18, 19, 20, 22 Profits and their distribution, 35 Selected assets and liabilities, 28 Security issues, 34, 64 Float, 4 Cost of living (See Consumer prices) Flow of funds, 42, 43 Credit unions, 28, 40 (See also Thrift institutions) Foreign banks, assets and liabilities of U.S. branches and Currency and coin, 17, 68, 70, 72 agencies, 22, 74-77 Currency in circulation, 4, 13 Foreign currency operations, 10 Customer credit, stock market, 27 Foreign deposits in U.S. banks, 4, 10, 18, 19, 20 Foreign exchange rates, 66 DEBITS to deposit accounts, 14 Foreign trade, 53 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 54, 56, 59, 60, 61, 63 Adjusted, commercial banks, 14 Liabilities to, 20, 53, 54-58, 62, 64, 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 GOLD REAL estate loans Certificate account, 10 Banks, by classes, 15, 18-20, 39 Stock, 4, 53 Rates, terms, yields, and activity, 3, 38 Government National Mortgage Association, 33, 38, 39 Savings institutions, 28 Gross national product, 50, 51 Type of holder and property mortgaged, 39 Repurchase agreements and federal HOUSING, new and existing units, 48 funds, 5, 18-20 Reserve requirements, 7 INCOME, personal and national, 44, 50, 51 Reserves Industrial production, 44, 46 Commercial banks, 17, 69 Installment loans, 40, 41 Depository institutions, 3, 4, 5, 12 Insurance companies, 28, 31, 39 Federal Reserve Banks, 10 Insured commercial banks, 68-73 U.S. reserve assets, 53 Interbank loans and deposits, 17 Residential mortgage loans, 38 Interest rates Retail credit and retail sales, 40, 41, 44 Bonds, 3 Business loans of banks, 25 SAVING Federal Reserve Banks, 3, 6 Flow of funds, 42, 43 Foreign central banks and foreign countries, 65, 66 National income accounts, 51 Money and capital markets, 3, 26 Savings and loan associations, 8, 28, 39, 40, 42 (See also Mortgages, 3, 38 Thrift institutions) Prime rate, commercial banks, 24 Savings deposits (See Time and savings deposits) Time and savings deposits, 8 Securities (See specific types) International capital transactions of United States, 52-65 Federal and federally sponsored credit agencies, 33 International organizations, 56, 57-59, 62-65 Foreign transactions, 64 Inventories, 50 New issues, 34 Investment companies, issues and assets, 35 Prices, 27 Investments (See also specific types) Special drawing rights, 4, 10, 52, 53 Banks, by classes, 17-20, 28 State and local governments Commercial banks, 3, 15, 17-20, 39, 68, 70 Deposits, 18-20 Federal Reserve Banks, 10, 11 Holdings of U.S. government securities, 31 Savings institutions, 28, 39 New security issues, 34 Ownership of securities issued by, 18, 19, 20, 28 LABOR force, 45 Rates on securities, 3 Life insurance companies (See Insurance companies) Stock market, 27 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 17—20 New issues, 34 Commercial banks, 3, 15, 17-20, 21, 25, 68, 70, 72 Prices, 27 Federal Reserve Banks, 4, 5, 6, 10, 11 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 Savings institutions, 28, 39 TAX receipts, federal, 30 Thrift institutions, 3 (See also Credit unions, Mutual MANUFACTURING savings banks and, Savings and loan associations) Capacity utilization, 44 Time and savings deposits, 3, 8, 13, 16, 17-21, 69, Production, 44, 47 71, 73 Margin requirements, 27 Trade, foreign, 53 Member banks (See also Depository institutions) Treasury currency, Treasury cash, 4 Federal funds and repurchase agreements, 5 Treasury deposits, 4, 10, 29 Reserve requirements, 7 Treasury operating balance, 29 Mining production, 47 Mobile homes shipped, 48 UNEMPLOYMENT, 45 Monetary and credit aggregates, 3, 12 U.S. government balances Money and capital market rates (See Interest rates) Commercial bank holdings, 17, 18, 19, 20 Money stock measures and components, 3,13 Treasury deposits at Reserve Banks, 4, 10, 29 Mortgages (See Real estate loans) U.S. government securities Mutual funds (See Investment companies) Bank holdings, 16, 17-20, 22, 31, 69, 70, 72 Mutual savings banks, 8, 18-20, 28, 31, 39, 40 (See also Dealer transactions, positions, and financing, 32 Thrift institutions) Federal Reserve Bank holdings, 4, 10, 11, 31 Foreign and international holdings and transactions, 10, NATIONAL defense outlays, 30 31, 65 National income, 50 Open market transactions, 9 Outstanding, by type and holder, 28, 31 OPEN market transactions, 9 Rates, 3, 26 U.S. international transactions, 52-65 PERSONAL income, 51 Utilities, production, 47 Prices Consumer and producer, 44, 49 VETERANS Administration, 38, 39 Stock market, 27 Prime rate, commercial banks, 24 WEEKLY reporting banks, 18-22 Producer prices, 44, 49 Wholesale (producer) prices, 44, 49 Production, 44, 46 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 Index to Volume 69 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Issue Text Other ("A" pages) Issue Text Other ("A" pages) Index to Index Total tables Total tables January ... 1-59 1-88 86-87 July 477-578 1-78 76-77 February.. 61-126 1-78 76-77 August.... 579-662 1-88 86-87 March 127-250 1-78 76-77 September 663-744 1-78 76-77 April 251-318 1-88 86-87 October... 745-822 1-78 76-77 May 319-394 1-78 76-77 November 823-884 1-78 74-75 June 395-476 1-82 79-80 December 885-946 1-103 87-88 (The "A" pages referred to in this index are in the December issue. For special tables published during 1983, see list on p. A67 of this issue.) Pages Pages ACCEPTANCES, bankers (See Bankers acceptances) BANK Export Services Act .... 91, 92, 416, 540, 542, 898 Agriculture, statements on interest rates on loans . .197, 340 Bank holding companies (For orders issued to individual Alexander, William O., appointed director, Oklahoma companies under the Bank Holding Company Act, City Branch 246 see Bank Holding Company Act) Allison, Theodore E., statement 531 Capital adequacy guidelines, amendments 539, 898 Altmann, Murray, Assistant to Board, Office of Staff Financial developments in 1982, article 508 Director for Monetary and Financial Policy, retire- Financial transactions within, staff study 333 ment 283 Investment in export trading companies, authoriza- Annual Report to Congress 283 tion 91, 416, 542 Articles Nonbanking powers, new, proposed legislation 538 Bank holding companies, financial developments in Regulation Y (See Regulations) 1982 508 Bank Holding Company Act Banks, role in international financial system 663 Applications under section 4, amendments to Business fixed investment 1 rules 718 Capacity and capacity utilization, new Federal Re- Erratum for December 1982 index 15 serve measures 515, 624 Orders issued under Deposit instruments, new 319 A & K Bancshares, Inc 121 Electronic fund transfers, consumer, develop- ABC Bancshares, Inc 941 ments 395 Alabanc Inc 55 Federal and state laws on consumer financial ser- Alaska Pacific Bancorporation 660 vices, doctrine of preemption 823 Albank Corporation 573 Foreign exchange markets, intervention 830 Alexander City Bancshares, Inc 573 Foreign exchange operations of Treasury and Federal Alexandria State Company 58 Reserve (See Foreign exchange operations) Allied Bancshares, Inc 292, 313, 544, 817 Housing market 61 Allied Irish Banks Limited 927 Insured commercial banks, profitability 489, 885 Alpine Bancorporation Inc 231 Labor market in recession and recovery 477 Alvord Financial Corporation 389 Money growth, foreign experience with targets for . 745 Amador Bancshares, Inc 944 Mortgages, alternative, and Truth in Lending 327 Amarillo Western Bancshares, Inc 231 Statements and reports to Congress (See Statements Ameribank, Inc 656 to Congress) Ameribank Corporation 58 U.S. international transactions in 1982 251 American Bancorp, Inc 317 Assets and liabilities of overseas branches of member American Bancshares Holding Corp 470 banks 696 American Bank Corporation 121,231 Automated clearinghouse services American Banks of Florida, Inc 879 Corporate trade payments, interim fee schedule 365 American Bankshares, Inc 389 Nighttime deposit deadline and interim fee schedule .. 695 American Exchange Bancorp, Inc 879 Proposed amendment of fee schedule 785 American Fletcher Corporation 816 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Federal Reserve Bulletin • December 1983 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. American National Bancorp, Inc 879 Beresford Bancorporation, Inc 878 American National Bancshares, Inc 470 Bern Bancshares, Inc 313 American National Holding Company 879 Blackwater Bancshares, Inc 313 American Southwest Bancshares, Inc 656 Blanchard Bancshares, Inc 817 American State Bancorporation, Inc 941 Boatmen's Bancshares 738 AmericanBanc Corporation 941 Borger First Corporation 817 Americorp Financial, Inc 390 Brannen Banks of Florida, Inc 121 Ames National Corporation 740 Brazosport Corporation 313 Amoskeag Bank Shares, Inc 860 Brewster Bankshares Incorporated 880 AmSouth Bancorporation 55 Bridgeview Bancorp, Inc 656 Anchor Bancorp, Inc 656 Broadway Bancshares, Inc 230, 573 Andrews Financial Corporation 471 Broadway Financial Corporation 317 Anton Bancshares, Inc 941 B.S.H.C.P. Corporation 656 Ardmore Bancshares, Inc 471 Buffalo Bancshares, Inc 817 Area Bancshares Corporation 33 Burke Securities Company 817 Arkansas State Bankshares, Inc 656 Burns Bancorporation, Inc 471 Arkansas Valley Banc Shares, Inc 98, 372 Butler Bancorp, Inc 573 Armstrong Bancshares, Inc 656 Byers Bancshares, Inc 573 Ashley Bancstock Company 471,817 C & M Bancshares, Inc 56 Athena Bancshares Corporation 121 California City Bancorp 121 Atlantic Bancorporation et al 639 Cambridge Financial Corporation 796 Auburn Security Bancshares, Inc 390 Caney Valley Bancshares, Inc 817 Augustana College Association 440 Capital Bancshares, Inc 55 Baileyville Bancshares, Inc 471 Capitol Bancorporation, Inc 878 Baker Holding Company 817 Caribank Corporation 909 Banc One Corporation 379, 740 CB Financial Corporation 941 Banco de Vizcaya, S.A., Bilbao, Spain 371 CBA Bancshares, Inc 313 Banco Nororiental de Venezuela, C.A., Caracas, CB&T Bancshares, Inc 471, 657 Venezuela; Corpofin, C.A., Caracas, Venezuela; CCB Bancshares, Inc 313 and Corpofin, N.A., Netherlands, Antilles 441 CCB Financial Corporation 390 BancOhio Corporation 34, 642 C.C.B Inc 879 BancOklahoma Corporation 929 Cedar Rapids State Company 313 Bancshares of Camden, Inc 55 Cedaredge Financial Services, Inc 467, 571 Bancshares of Glasgow, Inc 55 Centerre Bancorporation, et al 643 Bancshares of Hayti, Inc 313 Centex Community Bankshares, Inc 657 BancTexas Group, Inc 231, 573 Central Banc System, Inc 231 BancUnion Corp 471 Central Bancorporation, Inc 878 Bank North Group, Inc 313 Central Bancshares Corporation 817 Bank of Boston Corporation 941 Central Colorado Company 879 Bank of Florida Corporation 28 Central Montana Bancorporation 817 Bank of Iowa, Inc 941 Central Pacific Corporation 660 Bank of New Hampshire Corporation 390 Central Shares, Inc 573 Bank of New Mexico Holding Company 795 Central Wisconsin Bankshares, Inc 818 Bank Securities, Inc 55 Centre 1 Bancorp, Inc 573 Bank South Corporation 125, 817 Centurion Bancorp, Inc 818 BankAmerica Corporation 105, 216, 568 Century Bancorp, Inc 55 Bankers Trust New York Corporation 220, 871 Century State Bancshares, Inc 471 Banks of Iowa, Inc 880 Charter Bancshares, Inc 122 Banzano, B.V., Amsterdam, Netherlands 121 CharterCorp 471 Banzano International, N.V., Curacao, Nether- Chase Manhattan Corporation 725 lands Antilles 121 Chemical Financial Corporation 944 Barnett Banks of Florida, Inc. . 44, 230, 389, 573, 878 Chemical New York Corporation 646, 873, 944 Bay Bancorporation 390 Cherokee Bancshares, Inc 657 Bay Bancshares, Inc 390 Chimney Rock Bancorp 883 Bay Rock Bancshares, Inc. 880 Chisholm Trail Financial Corporation 314 Bayard Bancorporation ... 55 Choteau Bancorporation, Inc 390 Baylor Bancshares, Inc. .. 817 Citi-Bancshares, Inc 314 Bazine Bancorp, Inc 390 Citicorp 36, 554, 648, 921 Beaver Bancorp, Inc 941 Citizens Bancorp 910 Behrens Bancshares, Inc. . 945 Citizens Bancorp of Hickman, Inc. .. 818 Belmont Bancorp 471 Citizens Ban-Corporation 818 Bennett Bancorporation .. 741 Citizens Bancorporation, Inc 55 Bent Tree Bancshares, Inc. 474 Citizens Community Bankshares, Inc. 818 Benton Bancshares, Inc. .. 656 Citizens Fidelity Corporation 556 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 69 A91 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Citizens Financial Corporation 740 Derby Financial Corporation 314 Citizens Financial Service Corporation 818 Dewco Agency, Inc 233 Citizens Holding Company 314, 657 Dix Bancshares, Inc 818 Citizens Union Bancorp, Inc 471 Dixie Bancshares, Inc 574 City Bancshares, Inc 880 Donnelly Bancshares, Inc 56 City National Bancshares, Inc 660 Douglas Bancorporation, Inc 821 C.J. Bancshares, Inc 122 Downing Investment Co., Inc 231 Claremont Bancshares, Inc 314 Dows Bancorporation 880 Clark Bancshares, Inc 314 Drake Holding Company, Inc 58 Clarke, Inc 880 Eagan BanCorporation, Inc 471 Clayco Bancshares, Inc 314 Eagle Bancorporation, Inc 231 Clear Lake Bancorp, Inc 471 Eagle Bank Holding Corp 818 Clinton Bancshares, Inc 741, 941 East Coast Bank Corporation 741 CNB of Lebanon Bancorp, Inc 231 East Peoria Community Bancorp, Inc 29 Coastal Bend Bancshares, Inc 122 East-Tex Bancorp, Inc 941 Cobanco, Inc 818 Eaton Capital Corporation 821 Coffeyville Bancshares, Inc 121 Edgewater Capital Corporation 317 Cohutta Bancshares, Inc 122 Egyptian Bancshares, Inc 390 Cole-Taylor Financial Group, Inc 880 Ellis Banking Corporation 94, 444, 816 Collier Bancshares Holding Company, Inc 471 Elmore Bancshares, Inc 472 Colonial Bancorporation, Inc 231 Energy Bancshares, Inc 941 Columbia National Bancorp., Inc 941 Energy Banks 574 Columbiana Bancshares, Inc 880 Equality Bankshares, Inc 720 Columbine Bankshares, Ltd 741 Equitable Bankshares of Colorado, Inc 314 Columbus Corp 741 European American Bancorp 317, 817 Comerica Incorporated 797,911,923 Evco, Inc 122 Comm. Bancorp, Inc 818 Exchange Bankshares, Inc 941 Commerce Bancorp, Inc 230, 390 Exchange Financial Corporation 122 Commerce Bancshares, Inc 447, 933 F. Deposit Corporation 941 Commercial Bancshares, Inc 574, 941 F.A.B. Bancorp, Inc 231 Commercial BancShares, Inc 471 F & M Bancorporation, Inc 231 Commercial Bank Investment Company 657 F&M Bancshares, Inc 472 Commercial Holding Company, Inc 880 F & M Financial Services Corporation 577, 941 Commercial National Corporation 56 F N BanCorp, Inc 881 Commercial State Bancorp, Inc 471 Fairplay Bancorporation, Inc 390 Commercial State Holding Company, Inc 657 Farley Bancshares, Inc 314 Community Bancorp, Inc 471, 657 Farmers & Merchants Bancshares, Inc 741 Community Banking Corporation 880 Farmers Bancshares, Inc 472, 818 Conifer/Essex Group, Inc 941 Farmers Bancshares of Erick, Inc 390 Consolidated Bancorp, Inc 574 Farmers Investment Corporation 573 Continental Bancorp, Inc 231 Farmers National Bancorp of Cynthiana, Inc 880 Cornerstone Financial Corporation 314 Farmers State Bancorporation, Inc 818 Corpofin, C.A., Caracas, Venezuela 441 Farmers State Bancorporation of Yuma, Inc 883 Corpofin, N.V., Netherlands Antilles 441 Farmers State Investment Co 122 Cottage Grove BanCorporatrion, Inc 471 Faulkner County Bankshares, Inc 574 County Bankshares, Inc 818 Fergus Falls Bancshares, Inc 314 Craco, Inc 314 Fidelcor, Inc 445, 728 Crocker National Corporation 879 Fifth Third Bancorp 656 CSB Banco, Inc 131 Financial Management Bancshares of West Cullen/Frost Bankers, Inc 231 Virginia, Inc 818 Custer Bancorp 314 Financial Properties, Inc 472 Dairyland Bancshares, Inc 573 Financial Services of Evansville, Inc 883 Dakota Bankshares, Inc 442, 719 First Alex Bancshares, Inc 314 Dakota Company, Inc 122 First American Bancshares, Inc 741 D'Arbonne Bancshares, Inc 471 First American Bancshares Limited Partnership .. 633 Dartmouth National Corporation 861 First American Corporation of Colorado Dauphin Deposit Corporation 657 Springs 472 Davis County Bancorporation 574 First and Farmers Bancshares, Inc 472 Dawson Bancshares, Inc 574 First Anderson Bancshares, Inc 314 Dawson Corporation 880 First Arkansas Bankstock Corporation . 121,800,879 D.C. Bancorp 657 First Atlanta Corporation 314, 817 Dekalb Financial Corp 390 First Bancorp of Belleville, Inc 472 Delta Bancshares Company 880 First Bancorp of War, Inc 231 Deport Financial Company 657 First Bancorp of Wayne, Inc 942 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 Federal Reserve Bulletin • December 1983 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. First Bancorporation of Geraldine, Inc 314 First National Corporation of Alexander City, Inc. . 741 First Bancorporation of Ohio 657 First National of Nebraska, Inc 390 First Bancshares Corporation of Illinois 816 First National Vermont Corporation 122 First Bancshares of Northeast Arkansas, Inc 56 First Newport Bancshares, Inc 472 First Bank Holding Company 741 First NH Banks, Inc 874 First Bankers Corporation of Florida 55, 880 First North Port Bancorp 232 First Bankshares, Inc 470 First NorthWest Bancorporation 881 First Blevins Bancshares, Inc 122 First Oak Brook Bancshares, Inc 657, 942 First Burlington Corporation 818 First of Murphysboro Corp 942 First Carmen Bancshares, Inc., First Gage Bancor- First Overton Bancorp 390 poration, Inc., First Sallisaw Bancshares, Inc., First Pecos Bancshares, Inc 56 First Sallisaw Bancshares, Inc., First Seminole First Peoria Corp 122 Bancorporation, Inc., and Sand Springs Banc- First Postville Bancorporation, Inc 942 shares, Inc 801 First Railroad & Banking Company of Georgia ... 574 First Chats worth Bankshares, Inc 56 First Rockford BanCorporation, Inc 56 First Citizens Bancorp of Cherokee County, Inc. . 314 First Rockwall Bancshares, Inc 472 First Citizens Bancorporation of South Carolina, First Security Corporation 38 Inc 56, 880 First Service Bancshares, Inc 391 First Citizens Bancshares Corporation 390 First Sharon Holding Company 122 First Citizens Corporation 942 First Sleepy Eye Bancorporation, Inc 741 First City Bancorp, Inc 880 1st Source Bank 511 First City Bancorporation of Texas, Inc. 55, 313, 740 First State Agency of Stewart, Inc 58 First City Bancshares, Inc 55 First State Bancorp, Inc 315, 472 First City Financial Corporation 390 First State Bancorp of Princeton 230 1st Columbia Corp 574 First State Holding Company, Inc 574 First Commerce Bancorp, Inc 122 First Sterling Bancorp., Inc 232 First Commonwealth Bancshares, Inc 231 First Stillwater Bancshares, Inc 58 First Community Bancorp, Inc 122 First Sweetwater Bancshares, Inc 819 First Community Bancshares, Inc 122, 880 First Tennessee National Corporation 298 First Connecticut Bancorp, Inc 818 First Thomson Bancorp., Inc 315 First Dickson Corporation 389 First Tulsa Bancorporation, Inc 944 First Dumas Bancshares, Inc 122 1st United Bancorporation 881 First Elbert Corporation 314 First United Bancshares, Inc 940 First Enid, Inc 942 First United Corporation 391 First Farmers Investment Corporation, Inc 574 First United Holding Company 942 First Financial Bancorp 232 First University Corporation 660 First Fordyce Bancshares, Inc 122 First Western Bancshares, Inc 657 First Fowler Bancorp, Inc 881 First Wisconsin Corporation 546 First Freeport Corporation 315 First Wyoming Bancorporation 122, 315 First Gonzales Bancshares, Inc 122 Firstbank of Illinois Co 56, 942 First Granite Bancorporation, Inc 390 Firstmondovi, Inc 574 First Guaranty Bancshares, Inc 942 Flat Top Bankshares, Inc 942 First Guaranty Corporation 390 Flathead Holding Company of Bigford 122 First Guthrie Bancshares, Inc 881 Flathead Lake Bancorporation, Inc 819 First Illinois Bancorp, Inc 881 Fleet Financial Group, Inc 821 First Illinois Corporation 232, 472, 660 Floresville Bancshares, Inc 315 First Interstate Bancorp 474, 660, 729 Florida Bay Banks, Inc 819 First Jefferson Company 657 Florida Central Banks, Inc 881 First Keystone Corporation 942 Florida Coast Banks, Inc 454 First Lacon Corp 657 Florida Community Banks, Inc 881 First Mabel BanCorporation, Inc 574 Florida County Banks, Inc 819 First Menasha Bancshares, Inc 574 F.N.B. Corporation 944 First Merchants Financial Corporation 230 FNB Holding Co 231 First Mid-Illinois Bancshares, Inc 942 Forstrom Bancorporation, Inc 472, 942 First Midwest Bancorp, Inc 227 Fort Madison Financial Company 657 First Monco Bancshares, Inc 293 Fort Riley Bancshares 658 First Montgomery Bancorp, Inc 818 Fosston Bancorporation, Inc 56 First Mulberry Bancshares, Inc 574 Fourth Financial Corporation 95, 210, 881 First National Bancorp, Inc 881, 942 Fox Lake Bankshares, Inc 942 First National Bancshares of Madison, Inc 942 FPB Corporation 123 First National Bankshares, Inc 55, 470 Frandsen Bancshares, Inc 942 First National Carlisle Corp 818 Frankfort Bancshares, Inc 819 First National Cincinnati Corporation 122 Freeborn Bancorporation, Inc 819 First National Corporation 883 Fremont Bancshares, Inc 315 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 69 A93 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Fremont Bank Corporation 819 Hub Bancshares, Inc 881 Fremont State Bancshares, Inc 315 Hudson Valley Holding Corp 881 Frontier Financial Corporation 819 Humboldt Investment Corp 56 FTS Financial Inc 231 Hutchinson Bancorp 123 Gaines Bancshares, Inc 391 I & B, Inc 881 GenBanc, Inc 574 Illini Financial Corp 658 General Bancshares Corporation 315, 802 Illinois Valley Bancorp, Inc 232 Genoa Bancshares, Inc 819 Ina Bancshares, Inc 56 Germantown Banc Corp 315 Independence Bancorp, Inc 472 GGB Bancshares, Inc 472 Independence Bank Group, Inc 658 Gilcrease Hills Bancorp, Inc 315 Independent Banks of Virginia, Inc 575 GL & ML Limited 741 Independent Bankshares Corporation 374 Glasgow Bancshares Corporation 741 Independent Community Banks, Inc 819 GN Bancorp, Inc 862 Indiana Bancorp 913 GN Bankshares, Inc 123 Indiana United Bancorp 658 Goodenow Bancorporation 474 Industrial Bancshares, Inc 881 Gorham Bancorp, Inc 881 Intercity Bancorporation, Inc 232 Granada Bankshares, Inc 123 Interedec (Georgia) Limited, Nassau, Bahamas .. 56 Grand Bancshares, Inc 881 Interedec (Georgia) N.V., Curacao, Netherlands Grand Lake Bancorp, Inc 816 Antilles 56 Grand Lakes Financial Resources, Inc 819 InterFirst Corporation 230, 313, 383, 468 Grand Ridge Bancorporation, Inc 819 Interstate Financial Corporation 123, 232, 560 Granite Holding Corporation 658 Iola Bancshares, Inc 819 Gravois Bancorp, Inc 123 I.S.B. Financial Corp 575 Great Lakes Financial Resources, Inc 819 Itasca Bancorp Inc 942 Great Mid-West Financial Company 658 Jackass Creek Land and Livestock Company .... 882 Gresham Bancshares, Inc 472 Jackson Financial Corporation 942 Groos Financial Corporation 123 JAW Bancshares Corp 472 Guaranty, Inc 212 JC Bankshares, Inc 315 Guaranty Bancshares Corporation 39 JDOB Inc 741 Guaranty Bankshares, Ltd 881 Jena Holding Company 472 Gulf Southwest Bancorp, Inc 819 J.M.C. Interest, Inc 943 Gulfcoast Bancshares, Inc 574 Joaquin Bankshares, Inc 819 Guthrie County Bancshares, Inc 123 Jorgenson Insurance Agency, Inc 819 Gwinnett Holding Company 315 J.P. Morgan & Co., Incorporated 733 H & L Investments, Inc 232 Kansas National Bancorporation, Inc 391 Halbur Bancshares, Inc 574 Kaw Valley Bancshares, Inc 123 Hamburg Financial, Inc 472 Keene Bancorp, Inc 658 Hanil Bank, Seoul, Korea 30 Keewatin Bancorporation, Inc 125 Harbor Country Banking Corporation 819 Kentucky Bancorporation, Inc 863 Harris Bankcorp, Inc 879 Kermit State Bancshares, Inc 56 Hartford National Corporation 32 Key Banks Inc 230, 232 Hartsville Bancshares, Inc 315 Kingswood Bank-Corp 123 Hawkeye Bancorporation 123, 741 Kittson Investment Company 914 Hays State Bankshares, Inc 658 KYNB Bancshares, Inc 294 Haysville Bancshares, Inc 741 LaBelle Bancshares, Inc 56 Hazelton Bancshares, Inc 56 LaFayette County Bancshares, Inc 315 Heber Springs Bancshares, Inc 117 Lake Bancshares Corporation 391 Higginsville Bancshares, Inc 881 Lake Valley Bancorp, Inc 472 High Point Financial Corporation 230 Lakeland Financial Corporation 575 Hill Investment Co 819 Lakeside Bancshares, Inc 315 Holcomb Bancshares, Inc 804 Lamar Bancshares, Inc 123 Holly Bankshares, Inc 123 Landmark Financial Group, Inc 882 Home State Bancorp, Inc 741 La Pryor Bancshares, Inc 56 Home State Building, Inc 577 Latham Bancorp, Inc 819 HomeBanc Corporation 574 Lawton Company 864, 915 Hongkong and Shanghai Banking Corporation, LBO Bancorp, Inc 472 Hong Kong, B.C.C.; Kellett, N.V., Curacao, LBT Bancshares, Inc 658 Netherlands Antilles; HSBC Holdings, B. V., Am- LBT Corporation 943 sterdam, The Netherlands; and Marine Midland Lebanon Bancshares, Inc 57 Banks, Inc., Buffalo, N.Y 221, 731 Le Center Financial Services, Inc 233 Hopkins Financial Corporation 232 Leedey Bancorporation, Inc 820 Horizon Bancorp 819, 822, 881 Lewisville Bancshares, Inc 820 HSBC Holdings, B.V 221, 731 Lincoln Bancshares, Inc 820 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A94 Federal Reserve Bulletin • December 1983 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Lincoln Bankshares, Inc 882 Mountain Bancshares, Inc 57 Lindell Bancshares, Inc 575 Mountain Home Bancshares, Inc 57 Linn Holding Company 472 MSB Holding Company, Inc 820 Livermore Bancorporation 57 Munden Bankshares, Inc 658 Local Investors, Inc 882 MWA Bancorporation 123 Logansport Bancorp, Inc 882 Nabanco, Inc 943 Lohrville Bancshares, Ltd 57 Naperville Financial Corporation 232 Long-Term Credit Bank of Japan, Limited 735 National Bancshares Corporation of Texas .. 123, 315, Luxemburg Bancshares, Inc 943 658, 882 McGregor Banco, Inc 741 N.B.C. Bancshares in Pawhuska, Inc 742 McKinstry Inc 233 NBD Bancorp, Inc 58, 917 Madison Agency Inc 472 NBG Financial Corporation 943 Magnolia State Capital Corp 123 NBG Holding Company 658 Mahnomen Bancshares, Inc 232 NBN Corporation 943 Manila Banking Corporation 470 NBSC Corporation 656 Manteno Bancshares, Inc 658 NC Bancorp, Inc 820 Manufacturers Bancorp, Inc 46 NCNB Corporation 49 Marine Bancorp, Inc 943 New Germany Bancshares, Inc 57 Marine Midland Banks, Inc 221, 731 New Mexico Banquest Investors Corporation, San- Marionville Bancshares, Inc 820 ta Fe, N. Mex., and Banco de Vizcaya, S.A., Maroa Bancshares, Inc 943 Bilbao, Spain 876 Marshall & Ilsley Corporation 123 Newport Savings and Loan Association 562 Marshall Bancshares, Inc 943 Newton Financial Corporation 473 Martinius Corporation 474 NGM Bancorp., Inc 943 Maybaco Company 375 Nixon Bancshares, Inc 316 Meigs County Bancshares, Inc 123 Norban Financial Group, Inc 820 Mellon National Corporation 296, 302, 650, 721 NorBanc Group, Inc 945 Memphis Bancshares, Inc 575 Norstar Bancorp, Inc 230, 232, 306 Mercantile Bancorporation, Inc. ... 315, 456, 658, 820 North Central Financial Corporation 391 Mercantile Bancshares, Inc 470 North Central Financial Services, Inc 547 Mercantile Bankshares Corporation 470 North East Bancshares, Inc 473 Mercantile Texas Corporation 121, 724 North Fork Bancorporation, Inc 882 Merchants and Manufacturers Bancorporation, North Pacific Bancorporation 820 Inc 57 Northeast Bancorp, Inc 57, 658 Merchants & Planters Bancshares, Inc 315 Northeastern Bancorp, Inc 575, 658 Merchants Bancorp, Inc 865 Northern Trust Bank of Florida Naples N.A 123 Merchants Bancshares, Inc 470 Northern Trust Corporation 316 Merchants Trust, Inc 472 Northern Wisconsin Bank Holding Company .... 575 Metro Bancshares, Inc 315 Northstream Investments, Inc 943 Metropolitan Bancshares, Inc 575 Northway Bancshares, Inc 473 Metter Financial Services, Inc 233 Northwest Bancshares, Inc 882 Miami Citizens Bancorp 658 Northwest Corporation 821 Miami National Bancorp 121 Northwest Kansas Banc Shares, Inc., Southwest Michigan Bancorp, Inc 391 Kansas Banc Shares, Inc., Santa Fe Trail Banc Mid Central BanCorp, Inc 820 Shares, Inc., and Arkansas Valley Banc Shares, Middle States Bancorporation, Inc 123, 391 Inc 98, 372 Midland Bank PLC, London, England 879 Northwest Missouri Bancshares, Inc 124 Midland California Holding Limited, London, Northwest Pennsylvania Corp 232 England 879 Northwest Suburban Bancorp, Inc 547 Midlantic Banks, Inc 454, 652 Norwest Corporation 651 Midwest Financial Group, Inc 315, 820, 943 Oakland City Bancshares Corp 473 Milk River Investments, Inc 916 Oberlin Bancshares, Inc 943 Mineola Bancshares, Inc 882 Oklahoma Bancorporation, Inc 575 Mission Bancshares, Inc 881 Old Colony Co-Operative Bank 377 Missouri Farmers Bancshares, Inc 473 Old Kent Financial Corporation 102 Mitch Corporation 882 Old National Bancshares, Inc 820 Monmouth Financial Services, Inc 867 Old Second Bancorp, Inc 232, 658 Monroe Bancshares, Ltd 57 Old Stone Corporation 812 Montana Bancsystem, Inc 820 Omnibancorp 57 Morgan Bancorp., Inc 57 Onalaska Holding Company, Inc 882 Morgan Capital Corporation 820 Onarga Bancorp, Inc 943 Morgantown Deposit Bancorp, Inc 123 One Security, Inc 882 Mountain Bancorp, Inc 315 One Valley Bancorp of West Virginia, Inc. . 473, 820 Mountain Bancorporation, Inc 882 Ontario Bancorporation, Inc 943 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 69 A95 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Oquawka Bancshares, Inc 820 St. Ansgar Bancorporation 392 Orange Bancorp 391 St. Charles Bancshares, Inc 473 Orbanco Financial Services Corporation 465 St. James Bancorporation, Inc 473 Ore Bancorporation 658 St. Paul Bancorporation, Inc 391 Outagamie Bank Shares, Inc 391 Sandwich Banco, Inc 821 Palmer National Bancorp, Inc 658 Santa Fe Trail Banc Shares, Inc 98, 372 Palmetto State Bankshares, Inc 820 SBC Financial Corp 124 Panhandle Bancshares, Inc 316 SBI Corporation 57 Paris Bancshares, Inc 656 SBT Corporation 57 Park Bancorporation, Inc 943 Schmidt Bancshares, Inc 943 Pathfinder Bancshares, Inc 658 Schooler Bancshares, Inc 659 Pembroke Bancshares, Inc 124 Schroders Public Limited Company, London, Pennbancorp 548, 919, 943 England 41 Peoples BanCorp 820 Scotland Holding Company 57 Peoples Bancorp, Inc 882 Scottscom Bancorp, Inc 882 Peoples Bancorporation, Inc 820 Second Security Bankshares, Inc 57 Peoples Bancshares of Hayward, Inc 659 Security Bancorp, Inc 232 Peoples Bank Corporation of Berea 57 Security Bancshares, Inc 57 Peoples Exchange Bancorporation of Thorp, Inc. . 316 Security Bancshares, Incorporated 316 Peoples National Corporation 575 Security Bank Shares, Inc 943 Peoples Security Bancorp, Inc 943 Security Chicago Corp 742 Persia Bancorp, Inc 660 Security Financial Corp 473 Phalia Bancshares, Inc 391 Security Pacific Corporation 742 Pharr Financial Corporation 391 Security Shares, Inc 232 Philadelphia National Corporation and National Sequatchie Valley Bancshares, Inc 575 Central Financial Corporation 308 Shawsville Bancorp, Inc 470 Pickens County Bancshares, Inc 575 Sherman Banc Shares, Inc 57 Pilot Bancorp, Inc 575 Sherman County Management, Inc 883 Pilot Point Bancshares Corporation 316 Skandinaviska Enskilda Banken, Stockholm, Pioneer Bankshares, Inc 575 Sweden 42 P.J.K., Inc 820 Skylake Bankshares, Inc 575 Planters Financial Corporation 473 Slater Bancshares, Inc 577 Piatt Valley National Company, Inc 575 Smithville Bankshares, Inc 232 Plymouth Investment Company 575 Society Corporation 926 PNC Financial Corp 51,925 South Carolina National Corporation 821 Pomeroy Bancorporation 124 South Central Bancshares, Inc 317 Portis Bancshares, Inc 656 South Dakota Bancorp, Inc 124 Post Bancorp, Inc. 820 South Dakota Bancshares, Inc 316 Powell County Bancorp, Inc 57 South Mississippi Capital Company 391 Prairieland Bancorp, Inc 232 South Suburban Bancorp, Inc 575 Preferred Equity Investors of Florida, Inc 387 South Taylor County Bancshares 316 Progressive Bancorporation, Inc 882 Southeast Banking Corporation 118, 564, 879 Progressive Bancshares, Inc 882 Southeastern Banking Corporation 659 Pueblo Bancorporation 124 Southern Bancorporation, Inc 576 Puget Sound Bancorp 230 Southern Bancorporation, Inc., and Southern Na- Quad Cities First Company 124 tional Corporation 224 Quadco Bancshares, Inc 124 Southern Bancshares, Inc 576 Rainier Bancorporation, Inc 295, 736 Southern BancShares, Inc 124 Raldon, Inc 57 Southern Bancshares Corp 575 Raleigh Bankshares, Inc 658 Southern Bankshares, Inc 316 Ranchers Investment Corporation 233 Southern National Banks, Inc 576 Randall Bancshares, Inc 820 Southern National Corporation 224 Ravens wood Financial Corporation 124 Southside Bancshares Corp 943 Ray Bancorporation, Inc 316 SouthTrust Corporation 57, 659, 944 Reelfoot Bancshares, Inc 742 Southwest Bancshares, Inc 57, 316 Republic Bancorp of S.C., Inc 742 Southwest Banking Corporation 118 RepublicBank Corporation 124, 868 Southwest First Community, Inc 742 Rice Lake Bancorp., Inc 316 Southwest Florida Banks, Inc 576 Richmond Bancshares, Inc 316 Spartan Bancorp, Inc 659 Ridgway Bancorp, Inc 882 Spur Bancshares, Inc 806 River Valley Bancorporation, Inc 821 SSB Bancorp 577 Rosedale First National Corp 473 Stanley Corp 742 Roseville Bancorp., Inc 473 Starbuck Bancshares, Inc 233 Rushville Bancshares, Inc 316 Starr Ban Company 232 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A96 Federal Reserve Bulletin • December 1983 Bank Holding Company Act—Continued rages Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. State Banco, Ltd 659 University Bancshares, Inc 659 State Bancorp, Inc 576 Upper Cumberland Bancshares, Inc 576 State National Corporation 473 Utah Bancorporation 232 Statewide Bancshares Corporation 124 Uvalde Bancshares, Inc 474 Steel City Bancorporation, Inc 124 Valley Center Bancshares, Inc 656 Sterling Bancorp., Inc 316 Valley View Bancshares, Inc 881 Stillwater Holding Company 473 Van Buren Bancorporation 811 Stonington Banc Shares, Inc 57 V.B.T. Holding Corporation 576 Stromburg Financial Services, Inc 821 Vernon Center Bancshares, Inc 58 Suburban Bancorp, Inc 635 Victoria Bankshares, Inc 124, 233, 576, 659, 883 Sun Banks, Inc 934 Villa Grove Bancshares, Inc 659 Sun Banks of Florida, Inc 230, 313, 740 Vista Banks, Inc 58 Sunshine Bankshares Corporation 391 Wainwright Financial Corporation 883 Susquehanna Bancshares, Inc 576 Wakefield Bancorporation, Inc 823 T-Mark, Inc 391 Walnut Ridge Bankstock 58 Tabor Enterprises, Inc 821 Walter E. Heller International Corporation ... 553, 817 Taney County Bancorporation, Inc 124 Walthall Capital Group, Ltd 316 TBT Bancshares, Inc 316 Walz-Stuart Agency, Inc 474 Tennessee Eastern Bancshares, Inc 473 Washington Bancorporation 638 Tennessee Homestead Company 470 Washington Community Bancshares 124 Terry Bancorporation 473 Washington Independent Bancshares, Inc 742 Texana Bancshares, Inc 576 Waxahachie Bancshares, Inc 742 Texas American Bancshares, Inc 230, 940 Wayne County Bancshares, Inc 233 Texas Bancorporation, Inc 659 WB Financial Corp 660 Texas Capital Bancshares, Inc 944 W.B.T. Holding Company 576 Texas Commerce Bancshares, Inc 104, 313, 573 WCB Corporation 391 Texas East BanCorp, Inc 636 Webb Bancshares, Inc 883 Texas Independent Bancshares, Inc 391 West Branch Bancorp, Inc 58 Texas Southwest Bancorp, Inc 473 West Frankfort Community Bancshares, Inc 124 Texas Valley Bancshares, Inc 944 West Franklin Community Bancshares, Inc 124 TexFirst Bancshares, Inc 659 Western Bancshares, Inc 944 Thompson Financial, Ltd 659 Western Bancshares of Albuquerque, Inc 576 Thorndale Bancshares, Inc 576 Western Commerce Bancshares of Carlsbad, Inc. 944 Thornton Bancshares, Inc 659 Western Illinois National Bancshares, Inc 316 Tonica Bancorp, Inc 742 Whitewater Bancorp, Inc 815 Town & Country Bancorp, Inc 232 Whitmore Company, Inc 474 Trans Kentucky Bancorp 473 Windsor Bancorporation, Inc 391 TransTexas Bancshares, Inc 316, 317, 821 Wood County Bancorporation, Inc 470 Tri County Investment Company 883 Woodbury Bancshares, Inc 944 Tri-State Bancshares, Inc 883 Woodville Bancshares, Inc 124 Trilon Financial Corporation 808 Worth Bancorporation, Inc 660 Tritten Bancshares, Inc 473 W.T.B. Financial Corporation 373 Trust Company of Georgia 225, 869 Yukon Temporary Holding Company 474 Trustees of Dartmouth College 870 Zions Utah Bancorporation 474 TwinCo, Inc 316 Bank Merger Act Unicorp Bancshares, Inc 808 Orders issued under Unicorp Bancshares-Houston, Inc 316 Am-Ba-Co., Inc 125 Union Bancorp Inc 883 American Bank of Bloomington 945 Union Bancorporation, Inc 124 Bank of Virginia 317,945 Union Bancshares, Incorporated 124 Bank of West Point 475 Union Illinois Company 473 Bank One of Mansfield 661 Union National Corporation 473 BNH Acquisition Bank 392 Union of Texas Bancshares, Inc 576 C.C. State Bank 392 Union Planters Corporation 121 Central Fidelity Bank 884, 945 United Bancshares, Inc 58, 809 Citizens Bank 392, 475 United Bankers, Inc 124, 474, 821 Financial Growth Systems, Inc 661 United Banks of Wisconsin, Inc 316 1st Source Bank 311 United Bankshares, Inc 659 First Virginia Bank 392 United Central Bancshares, Inc 576 First Virginia Bank-Colonial 884 United Danville, Inc 883 Flagship Bank of Tampa 945 United Jersey Banks 565 Hempstead Bank 475, 577 United Midwest Bancorporation, Ltd 576 Heritage Interim Bank 577 United Southern Corporation 944 Lookingglass Banc Corp 233 Universal Bancshares, Inc 576 Ottawa County Banking Company 661 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 69 A97 Pages Pages Bank Merger Act—Continued Board of Governors—Continued Orders issued—Cont. Staff changes—Cont. Peoples Bank and Trust Company 945 Meeder, Lorin S 624 Schenectady Trust Company 884 Prell, Michael J 698 Security Bank of Monroe 743 Roberts, Steven M 698 United Counties Trust Company 125 Simpson, Thomas D 92 United Jersey Bank 125 Struble, Frederick M 92 United Virginia Bank 660, 742 Taylor, William 92 Valley Bank and Trust Company 884 Staff studies (See Staff studies) Western Bank 661 Statements and reports to Congress (See Statements Bank Services Act to Congress) Orders issued under Thrift Institutions Advisory Council (See Thrift Insti- Louisiana National Bank 939 tutions Advisory Council) Bankers acceptances Bowen, Brent L., Assistant Controller, appointment .. 202 Creation by certain banks, amendment of rules 209 Brademas, John, appointed Chairman and Class C Reservability of ineligible acceptances, amendment of director, New York 236 Regulation D 540, 542 Bradfield, Michael, statement 609 Under Bank Export Services Act, Branch banks limitations 92, Federal Reserve 540, 898 Directors (See Directors) Banking and financial system, statement on emerging Vice Presidents in charge, list A104 trends in structure and public policy implications ... 532 Foreign banks, limitations on investments in bankers Banking and other financial services, statement on acceptances 92, 209, 540, 542, 898 developments in markets for 356 Member banks, assets and liabilities of overseas Banks, role in international financial system, paper ... 663 branches 696 Bernhardt, George A., appointed director, Charlotte Brandon, William H., Jr., appointed director, Memphis Branch 239 Branch 244 Black, Uyless D., Associate Director, Division of Data Brinzey, JoAnne, elected Class A director, Philadelphia 237 Processing, resignation 15 Brittain, Alfred, elected Class A director, New York . 236 Bliss, Charles M., elected Class A director, Chicago .. 242 Brown, Thomas R., Jr., appointed director, Los Ange- Board of Governors (See also Federal Reserve System) les Branch 248 Annual Report to Congress 283 Buenger, Clement L., appointed director, Cincinnati Building Branch 238 Dedication of headquarters building 623 Bush, Condon S., appointed director, Nashville Branch 241 Tours, change in hours 785 Business fixed investment, article 1 Capital adequacy guidelines, amendments 539, 898 Consumer Advisory Council (See Consumer CAPACITY and capacity utilization, article and correc- Advisory Council) tion 515, 624 Federal Advisory Council, list A80 Capacity utilization table, correction 624 Federal Open Market Committee (See Federal Open Capital adequacy guidelines, amendments 539, 898 Market Committee) Capital trends and financing, bank, staff study 71 Fees for Federal Reserve services to depository insti- Check clearing and collection (See Fees and Transfers tutions (See Fees) of funds) Litigation (See Litigation) Cleaver, Joe M., Assistant Director, Division of Members, reappointment of Paul A. Volcker as Research and Statistics, resignation 367 Chairman 623 Cleveland, William P., staff study 592 Members and officers, list A78 Cobb, Sue McCourt, appointed director, Miami Branch 241 Publications and releases (See Publications) Coin, transportation 13 Regulations (See Regulations) Collection services Rules (See Rules) Checks (See Fees and Transfers of funds) Staff changes Noncash, proposal to revise fee structure for . 541,783 Altmann, Murray 283 Commercial banks, insured, articles 489, 885 Black, Uyless D 15 Comptroller of the Currency Bowen, Brent L 202 Capital adequacy guidelines, amendments 539, 898 Cleaver, Joe M 367 Management interlocks, amendments by joint federal Denkler, John M 15 regulatory agencies 854 Ettin, Edward C 698 Condition and income reports, expansion of quarterly Frost, S. David 202 subscription tapes 854 Kohn, Donald L 698 Consumer Advisory Council Lepper, Susan J 92 List A81 Lindsey, David E 92 Meetings 541,785 McEntee, Elliott C 698 Nominations for appointments 416 Maloni, William R 624 Consumer electronic fund transfers, article on develop- Malphrus, Stephen R 698 ments 395 Manasseri, Richard J 698 Consumer financial services, doctrine of preemption, Mannion, Robert E 202 article on federal and state laws on 823 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A98 Federal Reserve Bulletin • December 1983 Pages Pages Consumer interest rates, statement 263 Dollar note, statement on printing by offset process ... 531 Consumer Leasing Dove, G. Mack, appointed director, Birmingham Act, proposed legislation, and statement 367, 599 Branch 240 Regulation M (See Regulations) Cornyn, Anthony G., article 508 EARNINGS and expenses (See Income and expenses) Corporate trade payments, interim fee schedule for ... 365 Economic policies, domestic and international, state- Corrigan, E. Gerald, statements 524, 532 ment 75 Cox, Ralph F., appointed director, Denver Branch ... 245 Economic situation, statements 187, 842 Credit (See also Loans) Economy, statement on Federal Reserve's objectives Equal Credit Opportunity (See Regulations: B) for monetary policy and relationship to prospects for . 167 Federal Reserve Banks (See Regulations: A) Electronic fund transfers (See Transfers of funds) Over-the-counter stocks (See Over-the-counter Employment situation, statement 411 stocks) Enloe, Robert Ted, III, elected Class B director, Dallas . 246 Stocks (See Stock market credit) Equal Credit Opportunity, proposal to revise Regulation Truth in Lending (See Truth in Lending Act) B 541 Credit Card Protection Act, statement 612 Errata "Credit Cards in the U.S. Economy," new publication . 624 Bank holding companies, for December 1982 index.. 15 Crime by banking personnel, statement on role of bank- Capacity and capacity utilization, table on new ing agencies in identifying and prosecuting 535 Federal Reserve measures 624 Cross, Sam Y., reports 141,404,672,893 Ettin, Edward C., transfer to Deputy Director, Division Currency, statement on printing of one-dollar note by of Research and Statistics 698 offset process 531 Eurodollar market and international banking facilities, Currency and coin, fees for transportation 13 staff study 591 Currency in circulation, new sensor for quality 695 Export trading companies, authorization for invest- Curtis, Nevius M., appointed Deputy Chairman and ments in 91, 416, 542 Class C director, Philadelphia 237 Export Trading Company Act of 1982 (See Bank Export Services Act) DAHLSTROM, John A., appointed director, Salt Lake City Branch 249 FALCONER, Richard L., elected Class B director, Demand deposits, statement on proposals to permit Minneapolis 244 payment of interest 846 Federal Advisory Council, list A80 Denkler, John M., Adviser, Office of Staff Director for Federal Open Market Committee Federal Reserve Bank Activities, appointment 15 Foreign exchange operations (See Foreign exchange Depository institutions (See also specific types) operations) Credit extended to, by Federal Reserve Banks (See Members and officers, list A80 Regulations: A) Minutes of meetings, statement regarding 839 Fair Deposit Availability Act of 1983, statement .... 773 Policy actions, record 17, 203, 284, 421, 626, 699, Interlocking bank relationships (See Regulations: L) 787, 901 Proposed criteria for adding such institutions to Fed- Statement concerning 839 eral Reserve check collection services 366 Federal Reserve Act Reserve requirements (See Regulations: D) Revised edition, with legislation enacted through Depository Institutions Deregulation Committee ... 14, 23, April 20, 1983 624 281, 292, 784, 785, 856, 858 Section 14, amendment authorizing investment of Depository Institutions Management Interlocks foreign-currency holdings of Federal Reserve, Act 695-96 statement 193 Deposits Section 22, amendment dealing with member bank Interest (See Interest on deposits) credit to executive officers and other insiders 697 New deposit instruments, article 319 Federal Reserve and Treasury foreign exchange Reserve requirements (See Regulations: D) operations (See Foreign exchange operations) Derrick, William H., elected Class A director, Rich- Federal Reserve Banks mond 238 Branches (See Branch banks) Directors Chairmen and Deputy Chairmen 235-49, A-104 Federal Reserve Banks Credit extended (See Regulations: A) Chairmen and Federal Reserve Agents 235-49, A-104 Delegation of authority to 633, 718 Deputy Chairmen 235-49, A-104 Directors (See Directors) List 235-49 Discount rates (See Interest rates) Statement concerning 839 Fees for services to depository institutions (See Fees) Federal Reserve branch banks Income and expenses 91 Chairmen 235-49, A-104 Presidents and Vice Presidents, list A-104 List 235-49 Transfers of funds (See Regulations: E, and Transfers Discount rates at Reserve Banks (See Interest rates) of funds) Dividends Federal Reserve Board (See Board of Governors) Federal Reserve Banks 91 Federal Reserve Districts, changes 899 Insured commercial banks, articles on profit- Federal Reserve Modernization Act, statement 839 ability 489, 885 Federal Reserve notes, interest paid to U.S. Treasury .. 91 Dollar, strong, statement on problems concerning .... 767 Federal Reserve stock, statement regarding 839 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 69 A99 Pages Pages Federal Reserve System (See also Board of Governors) GARN-ST GERMAIN Depository Institutions Act of Compliance Handbook, supplement 8 14 1982 24, 27, 282, 319, 366, 370, 697, 854, 898 Districts, changes in boundaries 899 Gay, Robert S., article 477 Map A-105 Georgine, Robert A., appointed Class C director, Rich- Membership, admissions of state banks 15, 92, 202, 283, mond 239 367, 419, 541, 625, 698, 785, 855, 899 Gillam, Grady, appointed director, Birmingham Branch 240 Structure and functioning, bills regarding 839 Glaessner, Thomas C., article 251 Fees for Federal Reserve services to depository Green, Roy G., appointed director, Jacksonville Branch .. 240 institutions Grupe, Michael R., staff study 592 Automated clearinghouse services (See Automated Guidelines, capital adequacy, amendments 539, 898 clearinghouse services) Gulley, Wilbur P., Jr., appointed director, Little Rock Check collection services, new fee schedules 853 Branch 243 Computer recording of U.S. government and agency securities and related wire transfers, revised fee HANKS, Allan S., appointed director, Louisville schedule, and continuation of current charges for Branch 243 wire transfers and net settlement services .... 14, 282 Heasley, A. Dean, appointed director, Pittsburgh Corporate trade payments, interim fee schedule 365 Branch 238 Float 199, 365 Hedlund, Jeffrey D., article 477 Pricing of services, review of developments, state- Henderson, Dale, article 830 ment 524 Horner, Matina S., elected Class B director, Boston .. 235 Private sector adjustment factor (PSAF) .. 282, 854, 899 Housing market, article 61 Securities safekeeping and noncash collection, pro- Howard, Samuel H., appointed director, Nashville posal to revise fee schedule 541, 783 Branch 241 Transportation of currency and coin, revised Hudson, D.S., Jr., appointed director, Miami Branch . 241 schedule 13 Humphreys, Fred C., appointed director, Salt Lake City Financial Institutions Deregulation Act of 1983, state- Branch 249 ment 757 Financial services Consumer, doctrine of preemption, article on federal INCOME and expenses and state laws concerning 823 Condition and income reports, expansion of quarterly Markets for, statement on developments 356 subscription tapes 854 Financial system and financial services industry Federal Reserve Banks 91 Legal framework, statement on developments 609 Insured commercial banks, articles on profit- Role of banks in international financial system 663 ability 489, 885 Structure, statement on emerging trends and implica- Industrial production, releases . 11, 73, 165, 261, 335, 409, tions for public policy 532 522, 593, 693, 755, 837, 896 Fisher, Charles T., Ill, appointed director, Detroit Insured commercial banks, articles on Branch 242 profitability 489, 885 Float Interest on deposits (See also Interest rates) Change in operating procedures 199 Changes (See Regulations: Q) Pricing 365 Demand deposits, statement on proposals to permit Foreign banking and financing (See Regulations: K) payment of interest 846 Foreign banks, limitations on investments in Interest rates (See also Interest on deposits) bankers acceptances under Bank Export Services Consumer, statement 263 Act 92, 209, 540, 542, 898 Federal Reserve Banks, changes 13, 23 Foreign countries, statement on indebtedness of some Usury laws (See Usury laws) developing countries and measures to deal with Interlocking bank relationships (See Regulations: L) problem 80 International agreements on exchange market interven- Foreign-currency holdings of Federal Reserve, author- tion policy 692 ity under Monetary Control Act to invest, statement . 193 International banking facilities and the Eurodollar mar- Foreign exchange markets ket, staff study 591 Intervention in, summary of ten staff studies 830 International banking operations (See Regulations: K) Intervention policy on, excerpt from Williamsburg International financial system, role of banks, paper ... 663 Declaration, May 1983 692 International lending, statement on supervision and Foreign exchange operations regulation 341 Foreign-currency holdings of Federal Reserve, au- International Monetary Fund, statements ... 175, 266, 273 thority under Monetary Control Act to invest, International transactions, U.S., in 1982, article 251 statement 193 Intervention in foreign exchange markets, summary of Treasury and Federal Reserve, reports 141, 404, 672, 893 ten staff studies 830 Fortson, D. Eugene, appointed director, Little Rock Investments (See also specific types) Branch 243 Business fixed investment, article 1 Freund, James L. article 61 Export trading companies, authorization for invest- Frigon, Henry F., appointed director, Louisville Branch .. 244 ments in 91, 416, 542 Frost, S. David, Staff Director for Management, ap- Foreign-currency holdings of Federal Reserve, aupointment 202 thority under Monetary Control Act to invest, Furlong, Frederick T., article 319 statement 193 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A100 Federal Reserve Bulletin • December 1983 Pages Pages JOHNSON, Karen H., article 745 Meeder, Lorin S., Associate Director, Division of Federal Reserve Bank Operations, resignation 624 KEEN, E.F., Jr., appointed director, Jacksonville Member banks (See also Depository institutions) Branch 240 Assets and liabilities of overseas branches 696 Kohn, Donald L., appointed Deputy Staff Director for Credit extended to, by Federal Reserve Banks (See Office of Staff Director for Monetary and Financial Regulations: O) Policy 698 Interlocking relationships (See Regulations: L) Kuehn, Curtis W., elected Class A director, Minne- Loans to executive officers (See Regulations: O) apolis 244 Reserve requirements (See Regulations: D) State member banks (See State member banks) LABOR market in recession and recovery, article .... 477 Transfers of funds (See Transfers of funds) Leasing, consumer 209, 367, 599 Mergers (See Bank Merger Act) Lending, international, statement on supervision and Mills, Rodney H., staff study 591 regulation 341 Monetary aggregates, weekly, staff paper on seasonal Lepper, Susan J., Assistant Director, Division of adjustment 592 Research and Statistics, appointment 92 Monetary Control Act of 1980 ... 24, 91, 93, 193, 199, 281, Lindsey, David E., Deputy Associate Director, Division 282, 365, 783, 898 of Research and Statistics, appointment 92 Monetary policy Litigation, cases pending involving Board of Governors 59, Reports to Congress 127, 579, 842 125, 234, 317, 392, 475, 578, 661, 743, 822, 884, 946 Statements to Congress ... 167, 181, 187, 337, 601, 613, Loans (See also Credit) 617, 842 Business, agricultural and consumer, statements ... 197, Money (See Coin and Currency) 340 Money growth, article on foreign experience with tar- Consumer, statement on interest rates 263 gets for 745 Executive officers of member banks (See Regulations: Money market deposit accounts 23, 91, 93, 319, 856 O) Money stock, revision 199 Foreclosures, home and farm, statement on potential Mortgages (See Real estate) effect of supervisory policies on 177 Indebtedness of some developing countries and mea- NASH, E. William, Jr., appointed director, Jacksonville sures to deal with problem, statement 80 Branch 240 International Monetary Fund (See International Mon- National banks, amendments to capital adequacy guideetary Fund) lines 539, 898 Mortgages (See Real estate) Negotiable order of withdrawal accounts State member banks, proposed revision of rules on Eligibility of governmental units to hold, loans to certain insiders 418 amendment 27 Stocks (See Stock market credit) Super NOW accounts, article 319 Nimkin, David A., appointed director, Salt Lake City MCDERMOTT, Robert F., appointed director, San Branch 249 Antonio Branch 247 Noncash collection services, proposal to revise fee McEntee, Elliott C., appointed Associate Director, structure for 541 Division of Federal Reserve Bank Operations 698 Nonmember banks, reduction in reserve requirements .. 91 Mallinson, Eugenie, article 885 Mallot, Byron I., appointed director, Seattle OPPER, Barbara Negri, article 489 Branch 249 Over-the-counter stocks Maloni, William R., Special Assistant to Board, resigna- Margin stock list, revisions and supplement 92, 418, 785 tion 624 Regulation T, conforming amendments concerning .. 711 Malphrus, Stephen R., appointed Assistant Staff Director for Management, Office Automation and Technol- PARKS, G. Johnny, appointed director, Portland ogy, Office of the Staff Director for Management ... 698 Branch 249 Manasseri, Richard J., appointed Assistant Director for Partee, J. Charles Data Systems, Division of Data Processing 698 Foreign-currency holdings of Federal Reserve, au- Mannion, Robert E., Deputy General Counsel, resigna- thority under Monetary Control Act to invest, tion 202 statement 193 Margin requirements Interest on demand deposits, statement on proposals Over-the-counter stocks (See Over-the-counter to permit payment 846 stocks) Interest rates on business, agricultural, and con- Regulations G, T, and U (See Regulations) sumer loans, statement 340 Martin, Preston International lending, statement on supervision and Consumer interest rates, statement 263 regulation 341 Employment situation, statement 411 State usury laws, statement on expiration of federal Fair Deposit Availability Act of 1983, statement 773 preemption and effects of high interest rates on Loan foreclosures, home and farm, statement on farmers and businesses 340 potential effect of supervisory policies 177 Pates, Seabrook, appointed director, Helena Branch .. 245 Mortgage market, secondary, statement 769 Payments mechanism (See Transfers of funds) Regulatory Reform Act of 1983, statement 595 Philip, William W., appointed director, Seattle Branch . 249 Medlin, John G., appointed director, Charlotte Branch . 239 Pierce, David A., staff study 592 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 69 A101 Pages Pages Prell, Michael J., appointed Deputy Director, Division Regulations—Continued of Research and Statistics 698 L, Management Official Interlocks—Cont. Pricing of Federal Reserve services (See Fees) Grandfathered interlocking relationships, amend- Private sector adjustment factor (See Fees) ment 14, 209 Production, industrial (See Industrial production) Streamlined procedures for Interlocks Act, amend- Publications in 1983 (including releases) ments 907 Annual Report to Congress 283 M, Consumer Leasing Condition and income reports, expansion of quarterly Determinations under, amendment to rules 209 subscription tapes 854 O, Loans to Executive Officers, Directors, and Princi- "Credit Cards in the U.S. Economy" 624 pal Shareholders of Member Banks Federal Reserve Act, revised edition 624 Home mortgage and education loans, amendments Federal Reserve System Compliance Handbook, sup- to conform to recent legislation and proposed plement 8 14 changes 697, 793, 854 List A82-86 Q, Interest on Deposits Over-the-counter margin stock list (See Over-the- Negotiable order of withdrawal accounts, eligibility counter stocks) of governmental units to hold, amendments 27 Rules relating to payment of interest adopted by RAPIER, Thomas G., appointed director, New Orleans Depository Institutions Deregulation Committee, Branch 241 amendment 14, 784, 856, 858 Ray, Frederick G., appointed director, Buffalo T, Credit by Brokers and Dealers Branch 236 Comparision chart for old and new regulation .... 624 Real estate Over-the-counter stocks, amendments 711 Alternative mortgages and Truth in Lending, article . 327 Private mortgage pass-through securities as collat- Home mortgage loans, amendments to Regulation O eral for margin credit, amendment 28 to conform to new legislation, and proposed Revision to simplify 417, 429-40, 623, 854 changes 697, 793, 854 U, Credit by Banks for the Purpose of Purchasing or Loan foreclosures, home and farm, statement on Carrying Margin Stocks potential effect of supervisory policies on 177 Revision to simplify and clarify :. ... 202, 623, 712-18 Secondary mortgage market, statement 769 X, Rules Governing Borrowers Who Obtain Securi- Regulations, Board of Governors (See also Rules) ties Credit A, Extensions of Credit by Federal Reserve Banks Proposed revision 854 Discount rates, amendments to reduce 23 Y, Bank Holding Companies and Change in Bank B, Equal Credit Opportunity Control Proposal to revise 541 Nonbanking activities, amendments and proposed D, Reserve Requirements of Depository Institutions amendment 202, 696, 718, 899 Bankers acceptances, amendment, final rule, and Proposal to update and revise, and extension of proposed action 540, 542 time for comment 419, 623 Exemption of certain amounts of reservable liabil- Z, Truth in Lending ities, amendments 24, 91, 898 Arrangers of credit, student loans, and use of Money market deposit accounts, amendments . 23, 91, calculating devices in determining annual per- 93, 856 centage rates, amendments 92, 282, 370 Nonpersonal time deposits, amendments ... 281,292, Commentary, update 899 784, 856 Determinations under, amendment to rules 209 Phasing-in, for member banks 24 Proposal to find certain provisions in state laws not Small institutions, amendments 282, 366, 369 inconsistent with Truth in Lending Act 623 Technical amendments 14 Regulatory Improvement Program Time deposits, minimum maturity, amendment .. 784, Regulation G 202, 623 856 Regulation T 417, 429-40 Transaction accounts, amendments 14, 24, 898 Regulation U 202, 623, 712-18 E, Electronic Fund Transfers Regulatory Reform Act of 1983, statement 595 Technical amendments to conform to revision and Reserve requirements simplification of Regulation Z 282, 370 Depository institutions (See Regulations: D) G, Securities Credit by Persons Other Than Banks, Revisions Brokers, or Dealers Capacity and capacity utilization, article and correc- Revision to simplify and clarify 202, 623, 707-11 tion 515, 624 J, Collection of Checks and Other Items and Wire Money stock 199 Transfers of Funds Roberts, Steven M., appointed Assistant to Chairman 698 Automated clearinghouses, proposed revised and Rose, John T., staff study 333 restructured fee schedule for services 785 Rost, Ronald F., articles 515, 624 Check collection charge, proposed amendment ... 785 Rules, Board of Governors (See also Regulations) K, International Banking Operations Bankers acceptances 540 Investments in export trading companies, amend- Delegation of authority, amendments 209, 633, 718 ments 91,416,542 Ryan, John E., statement 535 L, Management Official Interlocks Depository Institutions Management Interlocks SAKOWITZ, Robert T., appointed director, Houston Act, amendments to reflect changes 695, 854 Branch 247 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A102 Federal Reserve Bulletin • December 1983 Pages Pages Sampson, Stephanie, article 830 Statements to Congress—Continued Schinasi, Garry J., article 1 Interest on demand deposits, proposals to permit ... 846 Schroeder, Frederick J., article 395 International lending, supervision and regulation ... 341 Scott, Tom Burkett, Jr., appointed director, New International Monetary Fund and international finan- Orleans Branch 241 cial situation 175, 266, 273 Scraggs, Howard I., appointed director, Baltimore Loan foreclosures, home and farm, statement on Branch 239 potential effect of supervisory policies on 177 Securities (See also specific types) Monetary policy.. 127, 167, 181, 187, 337, 579, 601, 613, Safekeeping, proposal to revise fee structure .. 541,783 617, 842 Securities credit Mortgage market, secondary 769 Over-the-counter stocks {See Over-the-counter One-dollar note, printing by offset process 531 stocks) Pricing of Federal Reserve services, review of devel- Regulations G, T, U, and X {See Regulations) opments 524 Shell, Owen G., Jr., appointed director, Nashville Regulatory Reform Act of 1983 595 Branch 241 State usury laws, expiration of federal preemption on, Silver, Rugenia, article 823 and effects of high interest rates on business, agri- Simpson, Thomas D., Assistant Director, Division of culture, and consumer loans 197, 340 Research and Statistics, appointment 92 U.S. government securities market, surveillance ... 346 Sliger, Bernard F., elected Class B director, Stock market credit Atlanta 240 Over-the-counter (See Over-the-counter stocks) Solomon, Anthony M., statement on surveillance of Regulations G, T, and U {See Regulations) U.S. government securities market 346 Stocks {See specific types) Staff studies Stone, David L., appointed director, El Paso Branch . 247 Bank capital trends and financing 71 Stroud, William W., elected Class A director, Bank holding companies, financial transactions Cleveland 237 within 333 Struble, Frederick M., Deputy Associate Director, Divi- International banking facilities and the Eurodollar sion of Research and Statistics, appointment 92 market 591 Intervention in foreign exchange markets, summary TABLES, for index to tables published monthly, see of ten studies 830 guide at top of p. A89; for special tables published Monetary aggregates, weekly, staff paper on seasonal during year, see list on p. A67 adjustment 592 Talley, Samuel H., staff studies 71, 333 State member banks Taylor, William, Deputy Director, Division of Banking Capital adequacy guidelines, amendments 539, 898 Supervision and Regulation, appointment 92 Loans to certain insiders, proposed revision of rules .. 418 Teeters, Nancy H. Membership in Federal Reserve System {See Federal Banks, role in international financial system, paper . 663 Reserve System) Consumer Leasing Act, statement on proposed legis- Mergers (See Bank Merger Act) lation to simplify 599 Usury laws (See Usury laws) Credit Card Protection Act, statement 612 Statements to Congress (including reports) State usury laws, statement on expiration of federal Banking and financial system, emerging trends in preemption on, and effects of high interest rates on structure and public policy implications 532 farmers and businesses 197 Banking and other financial services, developments in Terrell, Henry S., staff study and paper 591, 663 markets for 356 Thrift holding companies, new nonbanking powers, Consumer interest rates 263 proposed legislation 538 Consumer Leasing Act, proposed legislation to sim- Thrift institutions, statement on bills regarding 839 plify 599 Thrift Institutions Advisory Council Credit Card Protection Act 612 List A81 Crime by banking personnel, role of banking agencies New members 281 in identifying and prosecuting 535 Time and savings deposits (See Deposits) Dollar, strong, problems 776 Transaction accounts {See Regulations: D) Economic policies, domestic and international 75 Transfers of funds Economic situation 187, 842 Automated clearinghouse services {See Automated Employment situation 411 clearinghouse services) Fair Deposit Availability Act of 1983 773 Checks Federal Reserve, bills regarding structure and func- Program to speed up collection 13, 366 tioning 839 Regulation J (See Regulations) Financial Institutions Deregulation Act of 1983 757 Electronic fund transfers Financial system and financial services industry Consumer, article on developments 395 Legal framework, developments 609 Regulation E (See Regulations) Structure, emerging trends, and public policy impli- Fees (See Fees) cations 532 Float 199, 365 Foreign-currency holdings of Federal Reserve, Treasury Department, U.S. authority under Monetary Control Act to invest .. 193 Foreign exchange operations (See Foreign exchange Indebtedness of some developing countries and mea- operations) sures to deal with problem 80 Proposed legislation 538 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 69 A103 Pages Pages Treat, William W., elected Class A director, Boston .. 235 Volcker, Paul A.—Continued Truth in Lending Act Financial Institutions Deregulation Act of 1983, state- Alternative mortgages and, article 327 ment 757 Regulation Z (See Regulations) Indebtedness of some developing countries and measures to deal with problem, statement 80 U.S. GOVERNMENT and agency securities International Monetary Fund and international finan- Computer recording of, and related wire transfers, cial situation, statements 175, 273 revised fee schedule 14, 282 Letter to Congress supporting new nonbanking pow- Surveillance of government securities market, state- ers for bank and thrift holding companies 538 ment 346 Monetary policy, statements .. 167, 181, 187, 337, 601, 613, U.S. international transactions in 1982, article 251 617, 842 Usury laws, statements on expiration of federal preemp- Reappointment as Member of Board of tion 197, 340 Governors 623 VIRGIL, Robert L., appointed Class C director, St. Louis 243 WALLICH, Henry C. Volcker, Paul A. Dollar, strong, statement on problems concerning .. 776 Banking and other financial services, statement on International Monetary Fund, statement 266 developments in markets for 356 Ware, S. Lee, Jr., appointed director, El Paso Economic policies, domestic and international, state- Branch 247 ment 75 Werthan, Susan M., article 327 Economic situation, statements 187, 842 Wharton, Clifton R., Jr., appointed Class C director, Federal Reserve, statement on bills regarding structure New York 236 and functioning 839 Wire transfers (See Transfers of funds) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A104 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 Henry Ponder Albert D. Tinkelenberg Culpeper Communications John G. Stoides and Records Center 22701 ATLANTA 30301 William A. Fickling, Jr. Robert P. Forrestal John H. Weitnauer, Jr. Vacancy 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 Joseph P. Garbarini Little Rock 72203 Richard V. Warner John F. Breen Louisville 40232 William C. Ballard, Jr. James E. Conrad 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 A. Zuniga Thomas H. Robertson SAN FRANCISCO 94120 Caroline L. Ahmanson John J. Balles Alan C. Furth Richard T. Griffith 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

A105 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories mmmM •• •••• ALASKA mtttm \ wtttKKm • • •• • [ • • • •I © Asp LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with exten- To promote public understanding of its regulatory sions of credit for the purchase of securities, together functions, the Board publishes the Federal Reserve with all related statutes, Board interpretations, rul- Regulatory Service, a three-volume looseleaf service ings, and staff opinions. Also included is the Board's containing all Board regulations and related statutes, list of OTC margin stocks. interpretations, policy statements, rulings, and staff The Consumer and Community Affairs Handbook opinions. For those with a more specialized interest in contains Regulations B, C, E, M, Z, AA, and BB and the Board's regulations, parts of this service are associated materials. published separately as handbooks pertaining to mon- For domestic subscribers, the annual rate is $175 for etary policy, securities credit, and consumer affairs. the Federal Reserve Regulatory Service and $60 for These publications are designed to help those who each handbook. For subscribers outside the United must frequently refer to the Board's regulatory materi- States, the price including additional air mail costs is als. They are updated at least monthly, and each $225 for the Service and $75 for each Handbook. All contains conversion tables, citation indexes, and a subscription requests must be accompanied by a check subject index. or money order payable to Board of Governors of the The Monetary Policy and Reserve Requirements Federal Reserve System. Orders should be addressed Handbook contains Regulations A, D, and Q plus to Publications Services, Mail Stop 138, Federal Rerelated materials. For convenient reference, it also serve Board, 20th Street and Constitution Avenue, contains the rules of the Depository Institutions N.W., Washington, D.C. 20551. Deregulation Committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT sumer credit protections. This 44-page booklet ex- PUBLICATIONS plains how to use the credit laws to shop for credit, apply for it, keep up credit ratings, and complain about an unfair deal. The Federal Reserve Board publishes a series of Protections offered by the Electronic Fund Transfer pamphlets covering individual credit laws and topics, Act are explained in Alice in Debitland. This booklet as pictured below. The series includes such subjects as offers tips for those using the new "paperless" syshow the Equal Credit Opportunity Act protects wom- tems for transferring money. en against discrimination in their credit dealings, how Copies of consumer publications are available free to use a credit card, and how to use Truth in Lending of charge from Publications Services, Mail Stop 138, information to compare credit costs. Board of Governors of the Federal Reserve System, The Board also publishes the Consumer Handbook Washington, D.C. 20551. Multiple copies for classto Credit Protection Laws, a complete guide to con- room use are also available free of charge. LE4SM9 LE4SING The LE4SMG I Equal Credit LE4SMG | Opportunity 1 Act and TRUTH IN LE4SING \ Credit Rights In Housing What Ttuthln Lending Means To You The Equal Credit Opportunity Actl— .. .andI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis